Guangdong Electric Power Development Co., Ltd. 2018Annual Report Guangdong Electric Power Development Co., Ltd.
2018 Annual Report
April 2019
Guangdong Electric Power Development Co., Ltd. 2018Annual Report I. Important Notice, Table of Contents and Definitions
The Board of Directors , Supervisory Committee ,Directors, Supervisors and Senior Executives of the Company hereby guarantees that there are no misstatement, misleading representation or important omissions in this report and shall assume joint and several liability for the authenticity, accuracy and completeness of the contents hereof.
Mr.Wang Jin, The Company leader, Mr. Liu Wei, Chief financial officer and the Mr.Meng Fei, the person in charge of the accounting department (the person in charge of the accounting )hereby confirm the authenticity and completeness of the financial report enclosed in this Annual report.
Other directors attending the Meeting for annual report deliberation except for the followed:
|||||
|-|-|-|-|
|Name of director absent|Title for absent director|Reasons for absent|Attorney|
|Rao Subo|Director|Due to business|Wen Lianhe|
|Chen Ze|Director|Due to business|Wang Jin|
|Li Fangji|Director|Due to business|Zheng Yunpeng|
|Zhang Xueqiu|Director|Due to business|Ma Xiaoqian|

 This annual report involves the forecasting description such as the future plans, and does not constitute the actual commitments of the company to the investors. Investors and stakeholders should all maintain sufficient awareness of risks for this and understand the differences between plans, forecasts and commitments.
The Company is mainly engaged in thermal power generation. The business of thermal power generation is greatly affected by factors including electric power demand and fuel price. Refer to Section IX(4) of Chapter 4 of this annual report-situation faced and countermeasures for relevant information.
The preplan profit distribution of the Company deliberated and approved by the Board is:Total share of of 5,250,283,986 for Base on theCompany‘s total share capital,the Company would distribute cash dividend to all the shareholders at the rate of CNY 0.60 for every 10shares (with tax inclusive),with 0 bonusshares（includingtax）, and not converting capital reserve into share capital.
Guangdong Electric Power Development Co., Ltd. 2018Annual Report Table of Contents
I.Important Notice, Table of contents and Definitions
II. Basic Information of the Company and Financial index
III. Outline of Company Business
IV.Management’s Discussion and Analysis
V. Important Events
VI. Change of share capital and shareholding of Principal Shareholders
VII. Situation of the Preferred Shares
VIII. Information about Directors, Supervisors and Senior Executives
IX. Administrative structure
X. Corporate Bond
XI. Financial Report
XII. Documents available for inspection
Guangdong Electric Power Development Co., Ltd. 2018Annual Report Definition
||||
|-|-|-|
|Terms to be defined|Refers to|Definition|
|||Guangdong Energy Group Co., Ltd. (Guangdong Yudean Group Co.,|
|Guangdong Energy Group (Yudean Group)|Refers to||
|||Ltd., Renamed on Feb 18,2019)|
|Guangqian Company|Refers to|Shenzhen Guangqian Electric Power Co., Ltd.|
|Bohe Company|Refers to|Guangdong Yudean Bohe Coal & Electricity Co., Ltd|
|Dapu Company|Refers to|Guangdong Dapu Power Generation Co., Ltd.|
|Wind Power Company|Refers to|Guangdong Wind Power Co., Ltd.|
|Lincang Company|Refers to|Lincang Yudean Energy Co., Ltd.|
|Qujie Wind Power Company|Refers to|Guangdong Yudean Qujie Wind Power Generation Co., Ltd.|
|Electric Power Sales Company|Refers to|Guangdong Yudean Electric Power Sales Co., Ltd.|
|Anxin Electric Inspection & Installation|||
||Refers to|Guangdong Yudean Anxin Electric Inspection & Installation Co., Ltd|
|Company|||
|Tongdao Wind Power Company|Refers to|Tongdao Yuexin Wind Power Generation Co., Ltd.|
|Zhongyue Compamy|Refers to|Zhanjiang Zhongyue Energy Co., Ltd.|
|Yuejiang Company|Refers to|Guangdong Shaoguan Yuejiang Power Generation Co., Ltd.|
|Yongan Natural Gas Company|Refers to|Guangdong Yudean Yongan Natural Gas Thermal Power Co., Ltd.|
|Leizhou Wind Power Company|Refers to|Guangdong Yudean Leizhou Wind Power Generation Co., Ltd.|
|Zhanjiang Company|Refers to|Zhanjiang Electric Power Co., Ltd.|
|Zhanjiang Wind Power Company|Refers to|Guangdong Yudean Zhanjiang Wind Power Co., Ltd.|
|Huizhou Natural Gas Company|Refers to|Guangdong Huizhou Natural Gas Power Co., Ltd.|
|Zhenneng Company|Refers to|Maoming Zhenneng Thermal Power Co., Ltd.|
|Jinghai Company|Refers to|Guangdong Yudean Jinghai Power Co., Ltd.|
|Red Bay Company|Refers to|Guangdong Red Bay Power Co., Ltd.|
|Huadu Natural Gas Company|Refers to|Guangdong Huadu Natural GasT Thermal Power Co., Ltd.|
|Humen Power Company|Refers to|Guangdong Yudean Humen Power Co., Ltd.|
|Yuejia Company|Refers to|Guangdong Yuejia Electric Power Co., Ltd.|
|Pinghai Power Plant|Refers to|Guangdong Hluizhou Pinghai Power Co., Ltd.|
|Pingdian Integrated Energy Company|Refers to|Huizhou Pingdian Integrated Energy Co., Ltd.|
|Zhencheng Integrated Energy Company|Refers to|Guangdong Yudean Zhencheng Integrated Energy Co., Ltd.|
|Dianbai Wind Power Company|Refers to|Guangdong Yudean Dianbai Wind Power Co., Ltd.|
|Yangjiang Wind Power Company|Refers to|Guangdong Yudean Yangjiang Offshore Wind Power Co., Ltd.|
|Heping Wind Power Company|Refers to|Guangdong Yudean Heping Wind Power Co., Ltd.|
|Pingyuan Wind Power Company|Refers to|Guangdong Yudean Pingyuan Wind Power Co., Ltd.|

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
||||
|-|-|-|
|Zhuhai Wind Power Company|Refers to|Guangdong Yudean Zhuhai Offshore Wind Power Co., Ltd.|
|Wuxuan Wind Power Company|Refers to|Guangxi Wuxuan Yudean New Energy Co., Ltd.|
|Xupu Wind Power Company|Refers to|Hunan Xupu Yuefeng New Energy Co., Ltd.|
|Shibeishan Wind Power|Refers to|Guangdong Yudean Shibeishan Wind Energy Development Co., Ltd.|
|Huilai Wind Power Company|Refers to|Huilai Wind Power Generation Co., Ltd.|
|Yudean Industry Fuel Company|Refers to|Guangdong Power Industry Fuel Co., Ltd.|
|Insurance Captive Company|Refers to|Guangdong Yudean Property Insurance Captive Co., Ltd.|
|Shanxi Energy Company|Refers to|Shanxi Yudean Energy Co., Ltd.|
|Yudean Shipping Company|Refers to|Guangdong Yudean Shipping Co., Ltd.|
|Yudean Western Investment Company|Refers to|Guangdong Yudeann Holdings Western Investment Co., Ltd.|
|Yudean Finance Company|Refers to|Guangdong Yudean Finance Co., Ltd.|
|Guohua Taishan Company|Refers to|Guangdong Guohua Yudean Taishan Power Generation Co., Ltd.|
|Weixin Energy Co., Ltd.|Refers to|Yunnan Yuntou Weixin Energy Co., Ltd.|
|Zhongxinkeng hydropower station|Refers to|Yangshan zHONGXINKENG Power Co., Ltd.|
|Jiangkeng hydropower station|Refers to|Yangshan Jiangkeng hydropower station|
|Southern Offshore wind power|Refers to|Southern Offshore wind power Union Development Co., Ltd.|
|Sunshine Insurance|Refers to|Sunshine Insurance Group Co., Ltd.|
|Shenzhen Capital|Refers to|Shenzhen Capital Group Co., Ltd.|
|GMG|Refers to|GMG International Tendering Co., Ltd.|
|Shenzhen Energy|Refers to|Shenzhen Energy Group Co., Ltd.|
|Shenergy Company|Refers to|Shenergy Company Limited|

Guangdong Electric Power Development Co., Ltd. 2018Annual Report II. Basic Information of the Company
1.Company information
|||||
|-|-|-|-|
|Stock abbreviation|Yue Dian Li A, Yue Dian Li B|Stock code：|000539、200539|
|Stock exchange for listing|Shenzhen Stock Exchange|||
|Name in Chinese|广东电力发展股份有限公司|||
|Abbreviation of Registered||||
||粤电力|||
|Company Name in Chinese(If any)||||
|English name (If any)|GUANGDONG ELECTRIC POWER DEVELOPMENT CO.,LTD|||
|English abbreviation (If any)|GED|||
|Legal Representative|Wang Jin|||
|Registered address|33-36/F, South Tower, Yudean Plaza, No.2 Tianhe Road East, Guangzhou,Guangdong Province|||
|Postal code of the Registered||||
||510630|||
|Address||||
|Office Address|33-36/F, South Tower, Yudean Plaza, No.2 Tianhe Road East, Guangzhou,Guangdong Province|||
|Postal code of the office address|510630|||
|Internet Web Site|http://www.ged.com.cn|||
|E-mail|ged@ged.com.cn|||

Ⅱ.Contact person and contact manner
||||
|-|-|-|
||Board secretary|Securities affairs Representative|
|Name|Liu Wei|Qin Xiao|
||35/F, South Tower, Yudean Plaza, No.2 Tianhe|36/F, South Tower, Yudean Plaza, No.2 Tianhe Road|
|Contact address|||
||Road East, Guangzhou,Guangdong Province|East, Guangzhou,Guangdong Province|
|Tel|(020)87570276|(020)87570251|
|Fax|(020)85138084|(020)85138084|
|E-mail|liuw@ged.com.cn|qinxiao@ged.com.cn|

Ⅲ. Information disclosure and placed
|||
|-|-|
|Newspapers selected by the Company for information|China Securities Daily, Securities Times and Hong Kong Commercial|
|disclosure|Daily(overseas newspaper for English version)|
|Internet website designated by CSRC for publishing||
||http://www.cninfo.com.cn|
|the Annual report of the Company||
|The place where the Annual report is prepared and||
||Affair Dept. Of the Board of directors of the Company|
|placed||

Guangdong Electric Power Development Co., Ltd. 2018Annual ReportⅣ.Changes in Registration
|||
|-|-|
|Organization Code|91440000617419493W|
|Changes in principal business activities since listing (if any)|No change|
|Changes is the controlling shareholder in the past (is any)|No change|

Ⅴ. Other Relevant Information
CPAs engaged
|||
|-|-|
|Name of the CPAs|PWC Certified Public Accountants (special general partnership)|
||11/F,PricewaterhouseCoopers Center,2 Corporate Avenue 202 Hu Bin Road, Huangpu|
|Office address||
||District,Shanghai|
|Names of the Certified Public||
||Wang Bin, Guo Biyu|
|Accountants as the signatories||

The sponsor performing persist ant supervision duties engaged by the Company in the reporting period.
□Applicable√Not Applicable
The Financial advisor performing persist ant supervision duties engaged by the Company in the reporting period□Applicable√Not Applicable
Ⅵ.Summary of Accounting data and Financial index
Whether it has retroactive adjustment or re-statement on previous accounting data or not
√Yes□ No
The reason for retrospective restatement
Change of accounting policy
||||||||
|-|-|-|-|-|-|-|
|||||Changed over|||
|||2017|||2016||
|||||last year（％）|||
||2018||||||
|||Before|After|After|Before|After|
|||adjustment|adjustment|adjustment|adjustment|adjustment|
|Revenue（RMB）|27,408,514,178|26,643,792,057|26,643,792,057|2.87%|22,681,120,022|22,681,120,022|
|Net profit attributable to the|474,461,997||743,180,431||||
|shareholders of the listed||743,180,431||-36.16%|936,534,941|936,534,941|
|Company（RMB）|||||||
|Net profit attributable to|||||||
|shareholders of the listed|||||||
|Company after deducting|412,062,957|718,454,119|718,454,119|-42.65%|1,074,697,758|1,074,697,758|
|non-recurring gains and|||||||
|losses(RMB)|||||||
|Net cash flow arising from|5,999,936,356||3,676,034,503||||
|||3,676,034,503||63.22%|8,704,775,818|8,704,775,818|
|operating activities（RMB）|||||||
|Basic earning per|0.09||0.14||||
|||0.14||-35.71%|0.18|0.18|
|share(RMB/Share)|||||||
|Diluted gains per|0.09||0.14||||
|||0.14||-35.71%|0.18|0.18|
|share(RMB/Share)|||||||
|Net asset earning ratio（%）|2.02%|3.16%|3.16%|-1.14%|3.99%|3.99%|

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
||||||||
|-|-|-|-|-|-|-|
|||End of||Changed over|||
||||||End of 2016||
|||2017||last year（％）|||
||End of 2018||||||
|||Before|After|After|Before|After|
|||adjustment|adjustment|adjustment|adjustment|adjustment|
|Gross assets（RMB）|73,329,662,306|71,007,415,323|71,007,415,323|3.27%|70,677,003,760|70,677,003,760|
|Net assets attributable to|24,227,302,288||23,695,190,653||||
|shareholders of the listed||23,695,190,653||2.25%|23,378,847,225|23,378,847,225|
|Company（RMB）|||||||

Reasons for Changes in Accounting Policies and Correction of Accounting Errors
Changes in Presentation Methods of Financial Statements
According to the requirements of the Notice on Revising and Issuing the Format of General Enterprise Financial Statements for 2018 (Caikuai[2018] No. 15), the balance sheet will merge "notes receivable" and "accounts receivable" into newly added "notes receivable and accounts receivable", merge "interest receivable" and
"dividend receivable" into "other receivables", merge "fixed assets liquidation" into "fixed assets", and merge "engineering materials" into "construction in progress", merge "bills payable" and "accounts payable" into the newly added "bills payable and accounts payable", and merge "special accounts payable" into the "long-term payables"; In the income statement, an additional item entitled "research and development expenses" is added to report expenditures incurred in the process of research and development, and detailed items entitled "interest expenses" and "interest income" are split under the item entitled "financial expenses"; The Company has
conducted a corresponding retrospective application on the comparison data. The change of accounting policy has no effect on the merger, net profit of the company and shareholders' equity.
Ⅶ.The differences between domestic and international accounting standards
1．Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed in the financial reports of differences in net income and net assets.
√ Applicable□Not applicable
In RMB
||||||
|-|-|-|-|-|
||Net profit attributable to the shareholders of the||Net Assets attributable to the shareholders of||
||listed company||the listed company||
||Amount in the|Amount in the previous|End of the reporting|Beginning of the|
||reporting period|period|period|reporting period|
|According to CAS|474,461,997|743,180,431|24,227,302,288|23,695,190,653|
|Items and amount adjusted according to IAS|||||
|The difference arising from|||||
|recognition of goodwill after|||||
||||64,623,000|64,623,000|
|merger of enterprises under|||||
|the same control|||||
|Difference arising from|||||
|recognition of land use value|-630,000|-630,000|17,600,000|18,230,000|
|after enterprise merger|||||
|Influence on minority interests|54,120|54,120|4,810,219|4,756,099|
|According to IAS|473,886,117|742,604,551|24,314,335,507|23,782,799,752|

Guangdong Electric Power Development Co., Ltd. 2018Annual Report 2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese accounting standards.
□ Applicable√Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules or Chinese GAAP(Generally Accepted Accounting Principles) in the period.
3.Note to the Difference in the Accounting Data based on the Accounting Standards of CAS and IAS.
√ Applicable□ Not applicable
The difference arising from recognition of goodwill after merger of enterprises under the same control
and recognition of land value after enterprise merger.
As required by new Chinese accounting standards, the goodwill formed by the merger of enterprises
under the same control shall not be recognized and capital surplus shall be adjusted. Under IFRS, the
golldwill formed by the merger of enterprises under the same control shall be recognized and equal to
the difference between merger cost and share of fair value of recognizable net assets of the purchased
party obtained in merger. Meanwhile, all assets of the purchased party obtained in merger shall be
accounted for according to their fair value while such assets shall be accounted for according to their
book value according to original Chinese accounting standards for business enterprises. Therefore, this
difference will continue to exist.
Ⅷ.Main Financial Index by Quarters
In RMB
||||||
|-|-|-|-|-|
||First quarter|Second quarter|Third quarter|Fourth quarter|
|Operating income|5,812,535,688|8,082,449,491|7,060,929,815|6,452,599,184|
|Net profit attributable to the|||||
||5,745,879|443,087,639|489,988,070|-464,359,591|
|shareholders of the listed company|||||
|Net profit after deducting of|||||
|non-recurring gain/loss attributable to|4,330,364|408,811,354|471,207,833|-472,286,594|
|the shareholders of listed company|||||
|Net Cash flow generated by business|||||
||1,540,043,756|2,255,488,952|1,419,777,849|784,625,799|
|operation|||||

Whether significant variances exist between the above financial index or the index with its sum and the financial index of the quarterly report as well as semi-annual report index disclosed by the Company.
□ Yes√No
Ⅸ.Items and amount of non-current gains and losses
√Applicable□Not applicable
In RMB
||||||
|-|-|-|-|-|
||Amount|Amount|Amount||
|Items||||Notes|
||(2018)|(2017)|(2016)||
|Non-current asset disposal|1,572,09|7 -4,720,404|-3,723,321||

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
||||||
|-|-|-|-|-|
|gain/loss(including the write-off part for|||||
|which assets impairment provision is made)|||||
||43,530,965|||In this period, the electricity salescompany received RMB 10.77 millionfrom Nansha headquarters; Thespecific grant or appropriation forenergy saving and emission reductionis RMB 8.28 million.|
|Govemment subsidy recognized in current|||||
|gain and loss(excluding those closely related|||||
|||41,344,595|19,074,097||
|to the Company’s business and granted|||||
|under the state’s policies)|||||
|Enterprise reorganization expenses, such as|||||
|payment to stuff placement and|||-59,541,635||
|consolidation expenses|||||
|According to tax, accounting and other laws,|-12,679,505||||
|regulations, the requirements of the current|||||
||||-125,842,425||
|Gain/loss for a one-time adjustment of the|||||
|impact of the current Gain/loss;|||||
||62,976,212|||In this period, Zhanjiang Wind powerreceived insurance compensation ofRMB 45.4585 million due to typhoondamage in previous years; Somepower plants received donations frommultiple companies, increasingnon-operating income by RMB36.987 million; Some power plantslost RMB 21.4579 million inlong-term asset retirement; AndPinghai was fined RMB 11.5372million for illegally occupying seaareas to build sand dike.|
|Net amount of non-operating income and|||||
|||6,502,013|-104,916,156||
|expense except the aforesaid items|||||
|Other non-recurring Gains/loss items||-7,274,913|||
|Less: .Amount of influence of income tax|25,191,469|10,104,459|18,950,258||
|Less: Amount of influence of minority|7,809,260||||
|||1,020,520|-155,736,881||
|interests|||||
|Total|62,399,040|24,726,312|-138,162,817|--|

For theCompany’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on information disclosure for Compaines Offering their Securities to the Public-Non-recurring Gains and Losses and its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as recurring gains and losses, it is necessary to explain the reason.
□Applicable√ Not applicable
None of Non-recurring gain /loss items recorgnized as recurring gain /loss/items as defined by the information disclosure explanatory Announcement No.1- Non–recurring gain/loss in the report period.
Guangdong Electric Power Development Co., Ltd. 2018Annual Report III. Outline of Company Business
Ⅰ.Main Business the Company is Engaged in During the Report Period
Whether the company needs to comply with the disclosure requirements of the particular industry
No
The Company mainly engages in the investment, construction and operation management of power projects, and the production and sales of electric power. It belongs to the power, heat production and supply industry classified in the “Guidelines for the Industry Classification of Listed Companies” by the China Securities Regulatory Commission. Since its foundation, the Company has always adhered to the business tenet of “Capital from the people, using it for electricity, and benefiting the public” and adheres to the business policy of “Centering on the main business of electricity, with diversified development”, focusing on the main business of power and making the power structure go diversified. In addition to the development, construction and operation of large-scale coal-fired power plants, it also has clean energy projects such as LNG power generation, wind power generation and hydropower generation, which provides reliable and clean energy to users through the grid company. As of December 31,2018, the controllable installed capacity is 20.95 million KW, where the controllable installed capacity of coal-burning power generation, LNG generation and renewable energy generation like wind power and hydropower is 17.14 million KW, 3.26 million KW and 550,000 KW respectively.
Income source is primarily contributed by power production and sales, and main business income is derived from Guangdong Province. The company electricity sales price is subject to the benchmark price verified by the price authority per relevant policies based on National Development and Reform Commission (NDRC) and the electricity transaction price through the market trade implementation per Guangdong Electricity Market Trade Basic Rules and supporting files. In the reporting period, the electricity sold is 70.984 billion KWH(tax included ,the same below ),an increase of4.4% YOY; average price stated in the consolidated statements is 441.99 Yuan/ thousands kwh, YoY drop of 9.83 Yuan/ thousands kwh ; the total operating income was RMB 27,408.5142 million, an increase of RMB 764.7221 million or an increase of2.87% YOY.
The company's business is dominated by coal-fired power generation, and the fuel costs account for a large portion of operating costs, thus the fluctuations in coal prices have a significant impact on the company's operating performance. During the reporting period, affected by the increase in power generation and the continuous increase in coal prices, thecompany’s fuel costs were 17,938.5050 million yuan, which accounted for73.98% of the business costs; and the unit price of standard coal was 920.9614 million yuan, an increase of 920.9614 milion yuan or an increase of0.92% over the same period of last year.
During the reporting period, although the Company's electricity sales increased overall, the widening of market-based trading spreads led to the continuous decline in the average price of the Company's combined power sales, and there was high coal price, which had a significant negative impact on the Company's power generation business profits. Meanwhile, affected by the impairment of some power generation assets, the Company achieved a net profit of
Guangdong Electric Power Development Co., Ltd. 2018Annual Report 474,462,000 yuan attributable to the parent company for the whole year, a YOY decrease of36.16%.
Ⅱ.Major Changes in Main Assets
1.Major Changes in Main Assets
|||
|-|-|
|Main assets|Major changes|
|Equity assets|No major changes|
|Fixed assets|No major changes|
|Intangible assets|No major changes|
|Construction in process|No major changes|
||The other non-current assets increased by 169.43% YOY, which was mainly due to the|
|Other non-current assets||
||increase in prepayments for equipment and construction of infrastructure projects.|

 2. Main Conditions of Overseas Assets
□ Applicable√Not applicable
III.Analysis On core Competitiveness
Whether the company needs to comply with the disclosure requirements of the particular industry
No
1. The largest listed company of power in Guangdong
The Company's main power generation assets are located in Guangdong Province, with a total asset size of more than 70 billion. It is the largest listed company of power in Guangdong Province. By the end of 2018, the Company had put into operation a controllable installed capacity of 20.95 million kilowatts, of which the controllable installed capacity within the province accounted for17.32% of the installed capacity; the annual sales of electricity was 70.984 billion KWH, of which the electricity sales amount of provincial units accounted for17.5% of the market share of electricity purchase within the province, and that was basically equivalent to the installed scale of the Company within the province.
2. Yudean Group has oriented our company as a sole listed platform for domestic power-generating assets integration
We are the shareholder of Yudean Group, one of the biggest power-generating groups in south China, which takes advantage of its source, assets scale, to give sustaining support to ourcompany’s advancement and expansion. It has oriented us as a sole listed platform for domestic power-generating assets integration. We are endowed with a priority offered by it in power source development, asset acquisition.
3. State-of-the-art unit performance built on implementation of the energy-saving dispatching policy
By virtue of high parameters, large capacity, nice efficiency, low coal consumption, reliable operation and environmental protection, our thermal power generating unit units are given priority in energy-saving dispatching. As a result, our units are more competitive in on-grid price.
4. Stepwise optimization of industrial structure and power source structure
The 13th Five-Year Plan of the Company specified the overall strategy of taking power generation as the core
Guangdong Electric Power Development Co., Ltd. 2018Annual Report business, optimizing the development of coal-fired power, steadily developing gas power, vigorously developing clean energy such as wind power and hydropower, continuously optimizing the power supply structure, and heading to an efficient, clean and low-carbon road.
In 2018, the Company continued to optimize and adjust the power supply structure to further increase the proportion of clean energy such as wind power and natural gas power generation. The#4 and#5 machine of the phase II of the Huizhou natural gas power generation project- which was share-controlled by the Company for construction, totaled 920,000 kilowatts, were put into commercial operation during the year (the#6 machine was put into operation in January 2019), the 50,000 kilowatts of Xuwen Qujie wind power project was overall put into operation, and the total of 22 sets of wind turbines of Xuwen Shiban Wind Power Project, totaled 44,000 kilowatts, were put into commercial operation. Thus, the total installed capacity of clean energy newly increased in the year was 1.0135 million kilowatts, and the proportion of clean energy increased from14% (data at the end of 2017) to18%. 5. Experienced management, sophisticated production technology
Administrators and technical experts are veterans in operation and management of power plants, and key staff have years of practical experience in the power sector. The Company continuously improved the quality and efficiency of its operations by strengthening its management of safety production, energy conservation and emission reduction, marketing and so on.
6. Hold fast to the opportunity of “electric price reform”, To realize the transformation from a power generation enterprise to an energy comprehensive service enterprise.
In order to adapt to the power market reform, the Company established Guangdong Yuedian Power Sales Co., Ltd in July 2015 to participate in the market competition in the electricity sales side. Guangdong Yuedian Power Sales Co., Ltd, which belongs to the first group of power-selling companies that obtained the market access, is numbered “SD01”. Since its establishment in 2015, after undergoing the market competition, Yuedian electricity selling has become a well-known brand in the Guangdong electric power market, forming a leading position. In recent years, in the annual long-term contracted electricity and monthly concentrated bidding, the winning bidding electricity quantity and winning bidding rate steadily topped in the market. In the future, the Company will continue to vigorously promote the business of sales of electricity, take active measures in accordance with the relevant policies of the national power system reform, expand the distribution business of electricity and the integrated energy services, so as to realize the transformation from a power generation enterprise to an energy comprehensive service enterprise.
7. Actively participate in the energy layout of the Greater Bay Area of Guangdong, Hong Kong and Macao in combination with the development plan of the Greater Bay Area of Guangdong, Hong Kong and Macau
The Company's subordinate company Shajiao A Power Plant is located in the center area of Greater Bay Area of Guangdong, Hong Kong and Macao. It is in the window position of Guangzhou-Shenzhen-Hong Kong Innovation Economics belt, and it has a unique geographical advantage. The Company will give full play to the comprehensive advantages of regional layout, industrial layout, talent and technology and so on, and actively participate in the development of energy supply and related industries in the Greater Bay Area, make full use of the opportunity of retiring and rebuilding the Shajiao A power plant, and create a super energy supply base with co-supply of gas, electricity, heat and cooling; speed up the provincial cooperation and accelerates the development of Shajiao Power Plant land, and vigorously explore the construction headquarters for the smart energy network and the high-end power technology integrated service in the Greater Bay Area.
Guangdong Electric Power Development Co., Ltd. 2018Annual Report IV.Management’s Discussion and Analysis
Ⅰ.General
In 2018, the total electricity consumption of Guangdong Province was 632.34 billion kWh, a YOY increase of6.1%, and the growth rate was basically the same as last year(6.2%). The annual output of West-area Power to guangdong reached 192.2 billion kWh-over-delivering 21.7 billion kWh, an increase of8.5%. Affected by factors such as power supply from West Area Power, both increase in west and provincial power generation, new nuclear power, thermal power generation and restricted coal-power generation in the Pearl River Delta, the power generation of coal-fired units of the Company had been severely squeezed. The Company's coal-fired power generation accounted for15.4% of market share of the province's electricity purchase, a decrease of 0.2 percentage YOY. The Company's comprehensive utilization hours for the year were 4,036 hours, increased by 143 hours YOY, and for the coal power generation machine, it was 4,255 hours, increased by186 hours YOY.
In 2018, the total transaction volume of Guangdong's market-oriented transactions was 170.58 billion kWh, of which the transaction in the primary market (annual bilateral negotiations, annual concentrated competition, and monthly concentrated competition) totaled 157.21 billion kWh, a YOY increase of35.9%, and the average transaction price difference was -6.55 Cent/kWh; the total transaction in the secondary market (transfer of power generation contract) was 13.37 billion kWh, with an average transaction price of 34.19 Cent/kWh. The Company's market transaction power totaled 35.38 billion kWh, accounting for49.84% of the Company's on-grid electricity, a YOY increase of 9.42 billion kWh.
In 2018, affected by the expanding of market-based transaction price spread, the average price of electricity sold by the Company in the consolidated statements was 441.99 yuan / thousand kWh (including tax, similarly hereinafter), a YOY decrease of 9.83 yuan/thousand kWh; meanwhile, the coal price remained high, which brought a large negative impact on the profit of the Company's power generation business. In the face of severe business situation, the Company actively competed for power sales by continuously optimizing the power marketing system, tightening the core operating factors and improving the benchmarking management system, thereby offsetting the unfavorable factors such as the rising coal price and the interest concession to market electricity trading. Under the continuous pressure of the main business, the Company continued to strengthen its financial management and control awareness, flexibly use financial management tools, improve the level of fund management, safeguard the company's capital needs, and reduce the cost of capital use. During the reporting period, the Company successfully issued four ultra-short-term and one middle-term period bills, which saved 19.24 million yuan compared with the benchmark interest rate for the same period.
As of the end of 2018, the total assets of the Company by consolidated statements amounted to RMB 73.33 billion, an increase of3.27% YOY; and the interests attributable to shareholders of the parent company was RMB 24.227 billion, an increase of12.25% YOY. The company achieved the operating income by consolidated statements of RMB 27.409 billion, an increase of2.87% YOY; the net profit attributable to shareholders of the parent company was RMB 474 million, a YOY decrease of36.16%; the earnings per share was RMB 0.09(it’s RMB 0.14 in the same period of last year). The company's liabilities by consolidated statements totaled to RMB 41.812 billion, with that the asset-liability ratio was57.02%.
Guangdong Electric Power Development Co., Ltd. 2018Annual Report In 2018, the Company continued to optimize and adjust the power supply structure to further increase the proportion of clean energy such as wind power and natural gas power generation. The#4 and#5 machine of the phase II of the Huizhou natural gas power generation project- which was share-controlled by the Company for construction, totaled 920,000 kilowatts, were put into commercial operation during the year (the#6 machine was put into operation in January 2019), the 50,000 kilowatts of Xuwen Qujie wind power project was overall put into operation, and the total of 22 sets of wind turbines of Xuwen Shiban Wind Power Project, totaled 44,000 kilowatts, were put into commercial operation. Thus, the total installed capacity of clean energy newly increased in the year was 1.0135 million kilowatts, and the proportion of clean energy increased from14% (data at the end of 2017) to18%. In 2018, the Company continued to optimize and adjust the power supply structure to further increase the proportion of clean energy such as wind power and natural gas power generation.
The#4 and#5 machine of the phase II of the Huizhou natural gas power generation project-which was share-controlled by the Company for construction, totaled 920,000 kilowatts, were put into commercial operation during the year (the#6 machine was put into operation in January 2019), the 50,000 kilowatts of Xuwen Qujie wind power project was overall put into operation, and the total of 22 sets of wind turbines of Xuwen Shiban Wind Power Project, totaled 44,000 kilowatts, were put into commercial operation. Thus, the total installed capacity of clean energy newly increased in the year was 1.0135 million kilowatts. As of the end of 2018, the Company's controllable installed capacity was 20.95 million kilowatts, of which the gas-electricity of controllable installed capacity was 3.26 million kilowatts, the controllable installed capacity of renewable energy power including the wind power and hydropower was 550,000 kilowatts, and the clean energy proportion increased to18% from14% at the end of 2017, with the net profit attributable to the parent company was 396.3 million yuan-accounting for83.53% to the Company's net profit attributable to the parent company.
In 2018, the Company continued to implement the Guangdong Provincial Government's spirit of deployment and instruction to vigorously develop offshore wind power and promote industrial transformation and upgrading, and accelerate the development of offshore wind power projects. The offshore wind power projects including the Zhuhai Jinwan, Zhanjiang Wailuo Phase II project, Zhanjiang Xinliao, Yangjiang Qingzhou Phase I Project and Yangjiang Qingzhou Phase II and Guangxi Wuxuan Onshore Wind Power Project were approved during the reporting period, with a total installed capacity of 1.757 million kilowatts. Meanwhile, the company actively responded to the requirements of the new development concept for environmental protection and fulfilling social responsibilities, and actively participated in the construction of ecological civilization. It completely achieved the ultra-low emission transformation of the conventional coal-fired units, orderly promoted the zero-emission project of thermal power plant wastewater and the denitrification transformation of Guangqian and Huizhou natural gas generator sets, promoting the power generation enterprises to continuously go for clean, low-carbon, safe and efficient transformation.
In 2018, the board of directors organized 5 on-site meetings and 2 communication meetings, which completed the approval of 55 board resolutions. The topics involved periodic reports, internal control evaluation, comprehensive risk management, profit distribution plan, major investment and financing, major related transactions, and important personnel appointment and dismissal matters, and all the proposals were passed and effectively implemented. The board of directors also convened five generalshareholders’ meetings, and all 19 proposals submitted to the shareholders' meetings for consideration were passed and effectively implemented. The Company successfully completed the preparation and disclosure of periodic reports and temporary announcements. A total
Guangdong Electric Power Development Co., Ltd. 2018Annual Report of 104 announcements were disclosed throughout the year, and the information disclosure was “A” graded by the Shenzhen Stock Exchange for five consecutive years.
Ⅱ.Main business analysis
1. General
Refer to relevant contents of “1.Summarization” in “Discussion and Analysis of Management”.
2. Revenue and cost
(1)Component of Business Income
In RMB
|||||||
|-|-|-|-|-|-|
||2018||2017|||
||||||Increase /decrease|
||Amount|Proportion|Amount|Proportion||
|Total operating|27,408,514,178||26,643,792,057|||
|||100%||100%|2.87%|
|revenue||||||
|On Industry||||||
|Electric power ,||||||
|Steam sales and|27,125,955,662|98.97%|26,393,153,579|99.06%|-0.09%|
|labor income||||||
|Other|282,558,516|1.03%|250,638,478|0.94%|0.09%|
|On products||||||
|Sales Electric Power|26,949,774,763|98.33%|26,250,079,293|98.52%|-0.19%|
|Labor income|50,148,277|0.18%|49,166,707|0.18%|0 %|
|Steam income|126,032,622|0.46%|93,907,579|0.35%|0.11%|
|Comprehensive||||||
||240,230,510|0.88%|203,698,123|0.76%|0.11%|
|utilization of fly ash||||||
|Sales material||||||
||1,324,637|0 %|3,228,908|0.01%|-0.01%|
|income||||||
|Lease revenue|20,343,421|0.07%|14,691,747|0.06%|0.01%|
|Other|20,659,948|0.08%|29,019,700|0.12%|-0.04%|
|Area||||||
|Guangdong|27,333,587,477|99.73%|26,600,595,122|99.84%|-0.11%|
|Yunnan|74,926,701|0.27%|43,196,935|0.16%|0.11%|

 (2)Situation of Industry, Product and District Occupying theCompany’s Business Income and Operating Profit with Profit over10%
√ Applicable□Not applicable
Whether the company needs to comply with the disclosure requirements of the particular industry
No
In RMB
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
||||||||
|-|-|-|-|-|-|-|
|||||Increase/decrease|Increase/decrease|Increase/decrease|
|||||of revenue in the|of business cost|of gross profit|
||||Gross profit||||
||Turnover|Operation cost||same period of|over the same|rate over the same|
||||rate(%)||||
|||||the previous|period of|period of the|
|||||year(%)|previous year (%)|previous year (%)|
|On Indudstry|||||||
|Electric power ,|||||||
|Steam sales and|27,125,955,662|24,236,414,355|10.65%|2.78%|4.12%|-1.15%|
|labor income|||||||
|On Products|||||||
|Electric power ,|||||||
|Steam sales and|27,125,955,662|24,236,414,355|10.65%|2.78%|4.12%|-1.15%|
|labor income|||||||
|Area|||||||
|Guangdong|27,333,587,477|24,187,650,936|11.51%|2.76%|3.97%|-1.03%|

 Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based on latest onyear’s scope of period-end.
□ Applicable√Not applicable
(3)Whether theCompany’s Physical Sales Income Exceeded Service Income
√ Yes □ No
|||||||
|-|-|-|-|-|-|
|Classification|Items|Unit|2018|2017|Changes|
|Electric power,|Sales volume|Billion kwh|709.84|679.76|4.43%|
|thermal production||||||
||Production|Billion kwh|751.23|720.29|4.30%|
|and supply||||||

Explanation for a year-on–year change of over30%
□ Applicable√Not applicable
(4)Degree of Performance of the Significant Sales Contract Signed up to this Report Period
√ Applicable□Not applicable
Whether the company needs to comply with the disclosure requirements of the particular industry
No
In the reporting period, China Southern Power Grid was our No.1 client, Its sales of 26.95 billion yuan taking up approximately98.01% of annual sales. Company andcompany’s holding subsidiaries had signed a Power Purchase Agreement with China Southern Power Grid and its holding subsidiaries in accordance to related provisions. By the end of the reporting period, the agreement had been executed rightfully.
(5)Component of business cost
Industry classification
In RMB
||||||||
|-|-|-|-|-|-|-|
|||2018||2017|||
|Industry|Items|||||Increase/Decrease|
|||Amount|Proportion in the|Amount|Proportion in the||

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
||||||||
|-|-|-|-|-|-|-|
||||operating costs||operating costs||
||||(%)||(%)||
|Electric power,|||||||
|thermal production|Fuel cost|17,938,504,997|73.98%|17,017,543,636|73.06%|0.92%|
|and supply|||||||
|Electric power,|||||||
||Depreciation||||||
|thermal production||3,336,322,747|13.76%|3,465,797,703|14.88%|-1.12%|
||expense||||||
|and supply|||||||
|Electric power,|||||||
|thermal production|Labor cost|1,386,084,497|5.72%|1,377,719,311|5.91%|-0.19%|
|and supply|||||||
|Electric power,|||||||
|thermal production|Other|1,585,804,339|6.54%|1,431,228,019|6.14%|0.40%|
|and supply|||||||

Note
The Company is in power sector and mainly engaged in power generation at present. The cost is composed of fuel cost, depreciation expenses, labour cost and other expenses. Fuel cost accounts for about73.98% of total cost. which was mainly affected by the increase in power generation volume and the continuous increase in coal price, so that the fuel costs continue to grow YOY.
(6)Whether Changes Occurred in Consolidation Scope in the Report Period
√Yes□No
New Subsidiary Establishment of the Year
|||||||||
|-|-|-|-|-|-|-|-|
|Name|Business place|Registered address|Nature|Registeredcapital||Proportion|Acquired|
|||||||(%)||
|Guangdong YudeanZhuhai Offshore WindPower Co., Ltd.|Zhuhai,Guangdong|Jinwan District,Zhuhai, Guangdong|ElectricPower|65,000,000|100.00%||Invested|
|Guangdong YudeanZhencheng IntegratedEnergy Co., Ltd.|Maoming,Guangdong|Maonan District,Maoming, Guangdong|ElectricPower|20,000,000|37.23%||Invested|

(7)Relevant Situation of Significant Changes or Adjustment of the Business, Product or Service in theCompany’s Report Period
□ Applicable√Not applicable
(8)Situation of Main Customers and Main Supplier
Information of theCompany’s top 5 customers
|||
|-|-|
|Total sales amount to top 5 customers (RMB)|27,294,303,638|
|Proportion of sales to top 5 curstomers in the annual sales(%)|99.26%|
|Proportion of the sales volume to the top five customers in the||
||0.80%|
|total sales to the related parties in the year||

Information of theCompany’s top 5 customers
|||||
|-|-|-|-|
|No|Name|Amount（RMB）|Proportion|

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
|||||
|-|-|-|-|
|1|GPGC|26,949,774,763|98.01%|
|2|Guangdong Energy Group Co., Ltd.|220,137,409|0.80%|
|3|Huizhou Huiling Chemical Co., Ltd.|57,704,850|0.21%|
|4|Sinopec Maoming Petrochemical Company|42,871,874|0.16%|
|5|Dongguan Dejin Energy Technology Co., Ltd.|23,814,742|0.09%|
|Total|--|27,294,303,638|99.26%|

 Other explanation :
√Applicable□Not applicable
Guangdong Energy Group Co., Ltd. is the controlling shareholder of the Company, which is a connected
relationship with the Company.
Principal suppliers
|||
|-|-|
|Total purchase of top 5 Suppliers（RMB）|18,520,612,475|
|Percentage of total purchase of top 5 suppliers In total annual purchase(%)|87.57%|
|Proportion of purchase amount from the top 5 suppliers in the total purchase||
||71.52%|
|amount from the related parties in the year||

Information about the top 5 suppliers
|||||
|-|-|-|-|
|No|Name|Amount（RMB）|Proportion|
|1|Guangdong Energy Group Co., Ltd.|15,125,772,383|71.52%|
||Guangdong Zhuhai Investment Elelctric|||
|2||1,630,203,603|7.71%|
||Power Industry Fuel Co., Ltd.|||
|3|Guangdong Dapeng ING Co., Ltd|948,487,179|4.48%|
|4|Dongfang Electric Co., Ltd.|574,571,928|2.72%|
|5|GPEC|241,577,382|1.14%|
|Total|--|18,520,612,475|87.57%|

 Other explanation :
√ Applicable□Not applicable
Guangdong Energy Group Co., Ltd. is the controlling shareholder of the Company, which is a connected
relationship with the Company.
3.Expenses
In RMB
||||||
|-|-|-|-|-|
||||Increase/Decrease(||
||2018|2017||Notes|
||||%)||
|Sale expenses|25,383,861|8,223,996||Mainly affected by the deepening|
||||208.66%|electricity reform, the Company added|
|||||full-time sales staff and increased|
|||||operating expenses.|
|Administration expenses|688,349,938|638,017,252|7.89%||
|Financial expenses|1,350,485,251|1,279,255,541|5.57%||
||5,043,776|16,980,873||Mainly due to the decline in the|
|R & Development|||||
||||-70.30%|number of R&D projects carried out by|
|expenses|||||
|||||some power plants of the Company.|

Guangdong Electric Power Development Co., Ltd. 2018Annual Report4.R& D Expenses
√ Applicable□Not applicable
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|No||Project|Project name||Purpose||Projectprogress||Target and influence||
|||company|||||||||
|||name|||||||||
|1|GuangdongShaoguanYuejiangPowerGenerationCo., Ltd.||Optimizationresearch onvacuum systemof 600 MW unit||With two vacuumpumps operational andone standby, the powerconsumption of twovacuum pumps islarge, and theequipment operationmode shall be changedto achieve the aim ofenergy-saving.||The unit hasbeendetermined,and themachine willbe selectedforimplementation.|||In order to improve the economic|
|||||||||||performance of the unit, the feasibility|
|||||||||||study shall be undertaken for various|
|||||||||||vacuum system optimization and|
|||||||||||transformation schemes of the 600 MW|
|||||||||||unit to find out the transformation scheme|
|||||||||||conforming to the actual situations of our|
|||||||||||plant. In the meantime, the operation mode|
|||||||||||optimization scheme of one operational|
|||||||||||and two standby changed from two|
|||||||||||operational and one standby shall be|
|||||||||||implemented for the vacuum pumps of the|
|||||||||||600 MW unit.|
|2|GuangdongShaoguanYuejiangPowerGenerationCo., Ltd.||Research onelectro-hydraulic servoregulatingsystem forinduced draftfan of the 330MW unit|||The electro-hydraulic|A prototypehas beencompletedand thecommissioning isunderway.||To improve the operation reliability ofaxial flow fan, "the unplanned load downof the unit caused by hydraulic cylinder offan is reduced from 3 unit-times/year tozero" currently. It belongs to the projectprolonging the service life of equipmentand ensuring the unit reliability.||
|||||||servo regulating|||||
|||||||hydraulic cylinder is|||||
|||||||used on the axial flow|||||
|||||||fan to replace the|||||
|||||||mechanical regulating|||||
|||||||hydraulic cylinder, so|||||
|||||||as to improve the|||||
|||||||safety margin of|||||
|||||||hydraulic cylinder.|||||
|3|GuangdongShaoguanYuejiangPowerGenerationCo., Ltd.|||Research on|The safety marginshall be improved forthe coal pulverizingsystem of steel ballcoal mill of the 330MW unit to preventthe deflagration of coalmill.||Thefeasibilitystudy reporthas beencompleted||To prevent the deflagration of the steel ballcoal mill of the 330 MW unit and improvethe operation safety margin of the coalmill, the number of deflagration is reducedfrom 8 times/year to 0 times/year when theexisting coal is mixed and burned atpresent. This project will improve theoperation safety of unit and coalpulverizing system.||
|||||wind|||||||
|||||distribution,|||||||
|||||recycling,|||||||
|||||explosion-proof|||||||
|||||ing and|||||||
|||||effect-raising|||||||
|||||for coal|||||||
|||||pulverizing|||||||
|||||system of 330|||||||
|||||MW unit|||||||
|4|ZhanjiangElectric PowerCo., Ltd.||Research on andapplication ofdeeppeak-regulatingcombustionoptimizationand adjustmenttechnology ofboiler based onaccuratemeasurement ofCOconcentration||The components andconcentrations of suchgases as flue gas, COshall be accuratelymeasured on-line, torealize the refinedcombustion adjustmentand optimizationcontrol and improvethe efficiency of boiler.|||In progress||Such functions as automatic collection,|
|||||||||(the CO||data modeling and optimization prediction|
|||||||||measurement||shall be completed for the balanced|
|||||||||system has||combustion monitoring data. The|
|||||||||been||combustion optimization and adjustment|
|||||||||completed||and new key parameters are guided for the|
|||||||||with the||boiler. The numerical simulation and|
|||||||||preparation||analysis for the combustion of boiler are|
|||||||||for the||carried out to obtain the regularities of|
|||||||||installation||distribution of flue gas temperature, speed|
|||||||||of||and key gas components (O2/CO/NO)|
|||||||||combustion||under different typical operation|
|||||||||optimization||conditions. The operators are guided for|
|||||||||and||the optimization and adjustment to|
|||||||||adjustment)||improve the boiler efficiency.|

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
||||||||||
|-|-|-|-|-|-|-|-|-|
|No||Project|Project name|Purpose||Projectprogress|Target and influence||
|||company|||||||
|||name|||||||
|5|ZhanjiangElectric PowerCo., Ltd.||Feasibility studyon waste waterzero dischargetransformationfor #1-#4 units||According to relevant|In theprogress oftender|According to the current problems existingin the water use and drainage, the wastewater of the whole plant shall be recycledin a cascade way and comprehensivelyutilized, with the feasibility studyimplemented to finally realize the wastewater zero discharge of the whole plant.||
||||||requirements of the||||
||||||group, the company||||
||||||must complete the||||
||||||transformation for the||||
||||||waste water zero||||
||||||discharge of four units||||
||||||before 2020.||||
||||||Therefore, it is||||
||||||required to carry out||||
||||||the project of||||
||||||"feasibility study on||||
||||||waste water zero||||
||||||discharge||||
||||||transformation of||||
||||||#1-#4 units of||||
||||||Zhanjiang Power Co.,||||
||||||Ltd.".||||
|6|ZhanjiangZhongyueEnergy Co.,Ltd.||Feasibility studyon DCS systemtransformation|Feasibility study onDCS systemtransformation||Thepreliminaryreport hasbeencompletedand will bereviewed.||It is required to provide the feasibility|
|||||||||study scheme of the DCS system|
|||||||||transformation, which evaluates the|
|||||||||current status of the DCS system, and|
|||||||||provides the transformation direction and|
|||||||||suggestions and the DCS system|
|||||||||transformation scheme and expense|
|||||||||estimate of Zhejiang Zhongyue Energy|
|||||||||Co., Ltd. and shall include the following|
|||||||||contents (but not limited to): current|
|||||||||status, transformation necessity,|
|||||||||implementation conditions, comparison of|
|||||||||all transformation schemes, duration,|
|||||||||expenses and conclusions of the DCS|
|||||||||system of units. According to the|
|||||||||recommended scheme of the DCS system|
|||||||||transformation, the performance index|
|||||||||parameter requirements of the system shall|
|||||||||be proposed with the research on and|
|||||||||analysis for the future operation and|
|||||||||maintenance of the system.|
|7|ZhanjiangZhongyueEnergy Co.,Ltd.||Feasibility studyon subsequentconcentrationand curingtreatment ofwaste watertreatmentsystem||According to specific|Thepreliminaryreport hasbeencompletedand will bereviewed||Currently, there are many technical routes|
||||||water quality features|||of concentration and curing treatment for|
||||||of the resin reclaimed|||the resin reclaimed acid-alkali waste water|
||||||acid-alkali waste water|||and desulfurization waste water, and the|
||||||and desulfurization|||investment and operation costs of|
||||||waste water, the|||evaporation and crystallization process are|
||||||technical routes of|||very large. According to specific water|
||||||concentration and|||quality features of the resin reclaimed|
||||||curing treatment shall|||acid-alkali waste water and desulfurization|
||||||be compared and|||waste water, the comparison and|
||||||evaluated for the resin|||evaluation are undertaken in all waste|
||||||reclaimed acid-alkali|||water treatment technologies, to obtain the|
||||||waste water and|||subsequent evaporation and crystallization|
||||||desulfurization waste|||process which is the most suitable for the|

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
|No||Project|Project name|Purpose||Projectprogress|Target and influence|
|||company||||||
|||name||||||
||||||water in all waste||waste water treatment system of the powerplant and conduct the scheme design andinvestment estimation, which areimportant basis for the investmentdecision-making of power planttransformation project.|
||||||water treatment|||
||||||technologies, to obtain|||
||||||the subsequent|||
||||||evaporation and|||
||||||crystallization process|||
||||||which is the most|||
||||||suitable for the waste|||
||||||water treatment system|||
||||||of the power plant and|||
||||||conduct the scheme|||
||||||design and investment|||
||||||estimation, which are|||
||||||important basis for the|||
||||||investment|||
||||||decision-making of|||
||||||power plant|||
||||||transformation project.|||
|8|GuangdongYudean DapuPowerGenerationCo., Ltd.||Research onwaste waterzero dischargeof the wholeDabu PowerPlant||In order to implement|Thefeasibilitystudy hasbeencompleted|1) Sort the current problems existing in thewater use and drainage of Dabu PowerPlant, and make uniform planning andoptimization for the water use anddrainage of the whole plant;2) Propose corresponding transformationmeasures and comparison schemes toenable the water intake and use morereasonable, so as to achieve the aims ofwater saving and cascade use and finallyrealize the waste water zero discharge ofthe whole plant.|
||||||the Action Plan for|||
||||||Prevention and Control|||
||||||of Water Pollution (GF|||
||||||[2015] No. 17),|||
||||||Implementation Plan|||
||||||for Licence System|||
||||||Controlling Pollutant|||
||||||Discharge and|||
||||||Technical Policy for|||
||||||Pollution Control in|||
||||||Thermal Power Plants|||
||||||of the state, a|||
||||||feasibility study unit is|||
||||||entrusted by Dabu|||
||||||Power Plant to carry|||
||||||out the feasibility|||
||||||study on the waste|||
||||||water zero discharge of|||
||||||the whole plant, sort|||
||||||the current problems|||
||||||existing in the water|||
||||||use and drainage of|||
||||||Dabu Power Plant,|||
||||||make uniform|||
||||||planning and|||
||||||optimization for the|||
||||||water use and drainage|||
||||||of the whole plant and|||
||||||propose corresponding|||
||||||transformation|||
||||||measures and|||
||||||comparison schemes to|||
||||||enable the water intake|||
||||||and use more|||
||||||reasonable, so as to|||

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
|No||Project|Project name|Purpose|Projectprogress|Target and influence||
|||company||||||
|||name||||||
|||||achieve the aims ofwater saving andcascade use and finallyrealize the waste waterzero discharge of thewhole plant.||||
|9|GuangdongYudean DapuPowerGenerationCo., Ltd.||Pipeline supportand hangeradjustment andpipelinevibrationcontrol of #1and #2 units|It is required to solvethe partial pipelinevibration of #1 and #2units, remove thedefected supports andhangers, and replacethe damaged dampers.|Completed|Such equipment faults as the fracture ofsampling pipe of the piping system and thefalling of piping system from supportincurred during the previous operationhave been eliminated, with ensuring theequipment security, eradicating the safetyhazards and improving the equipmentstability.||
|10|GuangdongYudean DapuPowerGenerationCo., Ltd.||Functionoptimizationand test ofautomaticcontrol systemof 2×660 MWunit|It is required to adaptto the current situationof power market andnew power griddispatching rules, sothat the regulationquality of theautomatic controlsystem during the deeppressure load andfrequent peakregulation withvarying load will meetthe operation controlrequirements and thesecurity control levelof the unit will beimproved.|The externalequipmentrelated tocombustionadjustmentand CCScoordinationhas been putinto use, andthe parameteroptimizationandadjustmentare underwaycurrently||1) Solve the deep peak regulation and|
||||||||accurate control of AGC, CCS, primary|
||||||||frequency modulation, etc. under the|
||||||||status of frequent peak regulation with|
||||||||varying load (such as adopting the unit|
||||||||coordination and optimization control|
||||||||based on intelligent algorithm and boiler|
||||||||feedforward control technology|
||||||||conquering the long delay and large|
||||||||inertia).|
||||||||2) Solve the security and economic|
||||||||efficiency of combustion-wind distribution|
||||||||control (such as adopting the intelligent|
||||||||combustion-wind distribution optimization|
||||||||control based on neural network, boiler|
||||||||feedforward control technology|
||||||||conquering the long delay and large inertia|
||||||||and fuel calorific value correction with the|
||||||||comprehensive outputs of turbine, boiler|
||||||||and generator as the benchmark).|
||||||||3) Realize the automatic precision control|
||||||||of water supply in the whole course.|
||||||||4) Solve the self-start and stop control and|
||||||||accurate control including air volume, air|
||||||||temperature, loading force characteristics|
||||||||and separator frequency for the coal|
||||||||pulverizing system of boiler.|
||||||||5) Solve the problems of desulfurization|
||||||||and denitration optimization and accurate|
||||||||control, to ensure that the environmental|
||||||||emission indicators are met.|
||||||||After the project implementation, the|
||||||||regulation quality of the automatic control|
||||||||system during the deep pressure load and|

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|No||Project|Project name||Purpose||Projectprogress||Target and influence||
|||company|||||||||
|||name|||||||||
||||||||||frequent peak regulation with varying loadwill meet the operation controlrequirements and the current situation ofpower market will be adapted to.||
|11|GuangdongYudean DapuPowerGenerationCo., Ltd.||Blendingcombustion andcombustionstrategyadjustment testfor changedcoal type ofboiler||It is required to carryout the optimizationand tests for fuelcontrol strategy, airvolume controlstrategy and coalpulverizing systemcontrol strategy.||The cold testhas beencompleted||Through the combustion adjustment test ofthe mixed and blended coals, the optimalcontrol strategy will be determined toimprove the adaptation, security andeconomic efficiency of the unit for thechanged coal type, etc. under variousunknown working conditions.||
|12|GuangdongRed BayPowerGenerastionCo., Ltd.||Application ofadvancedcontroltechnology inultra-lowemission controland energysaving andconsumptionreduction ofunits(denitrationoptimization,reheated fluegas temperaturecontrol andmain steamtemperaturecontrolconcurrently)|||The automatic control|The softwareand hardwarehave beeninstalled andare underwayfordebugging.||The unit shall be energy-saving with lowerconsumption to obtain the maximumeconomic benefit.||
|||||||of a unit, such as|||||
|||||||reheated flue gas|||||
|||||||temperature and|||||
|||||||denitration and|||||
|||||||ammonia spraying|||||
|||||||control shall be|||||
|||||||optimized by|||||
|||||||introducing the|||||
|||||||advanced control|||||
|||||||technologies (MPC|||||
|||||||self-adaption, ADRC|||||
|||||||active-disturbance-reje|||||
|||||||ction controller, IFC|||||
|||||||internal feedback,|||||
|||||||self-learning control,|||||
|||||||etc.), and the reheated|||||
|||||||steam temperature and|||||
|||||||NOx concentration|||||
|||||||shall be accurately|||||
|||||||controlled to reduce|||||
|||||||the desuperheating|||||
|||||||water and the quantity|||||
|||||||of ammonia sprayed of|||||
|||||||the reheater.|||||
|13|GuangdongRed BayPowerGenerastionCo., Ltd.|||Research and||The energy storage||The||The AGC frequency modulation service|
|||||application pilot||equipment shall be||feasibility||quality shall be optimized by new|
|||||of energy||added for a unit of||study has||technology of energy storage to achieve|
|||||storage and||Honghaiwan Power||been||the fast turn with precise output and|
|||||combined||Generation Co., Ltd. to||completed,||instantaneous adjustment, offset the|
|||||frequency||carry out the AGC||and the pilot||response deviation of generator set and|
|||||modulation for||frequency modulation||has not be||improve the response rate of unit adjusted|
|||||large thermal||together with the||commenced||with the AGC instructions, so as to|
|||||power units||combined generator||yet||provide the quality and efficient auxiliary|

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
|No||Project|Project name|Purpose||Projectprogress|Target and influence|
|||company||||||
|||name||||||
|||||set.|||service for the power system.|
|14|GuangdongRed BayPowerGenerastionCo., Ltd.||Steamdistribution,sliding pressureand energyconservationoptimization of#2 steamturbine set||The steam distribution|Theinstallationhas beencompletedand it isready forcommissioning.|Reduction of unit energy consumption andefficiency improvement|
||||||mode of sequence|||
||||||valve shall be added|||
||||||based on the former|||
||||||combination valve,|||
||||||and the sliding|||
||||||pressure curve shall be|||
||||||optimized according to|||
||||||the unit test with the|||
||||||liquid levels of|||
||||||high-pressure heater|||
||||||and low-pressure|||
||||||heater, the opening of|||
||||||recycle valve of the|||
||||||steam pump and the|||
||||||automatic|||
||||||optimization.|||
|15|GuangdongRed BayPowerGenerastionCo., Ltd.||Self-adaptationcontrol foroutlettemperature of(super-critical)boiler coal millof #1 and #2units||On the premise of|Theequipmenthas beeninstalled andis underwayfor thecommissioning and testrun|The optimization is required by theoperation control for the coal pulverizingsystem of boiler with improving the outlettemperature of coal mill, reducing thesmoke exhaust temperature of boiler andenhancing the boiler efficiency under theself-adaptation control.|
||||||ensuring the safe|||
||||||operation of the boiler|||
||||||body and coal|||
||||||pulverizing system, the|||
||||||external control system|||
||||||collects the coal|||
||||||quality data and|||
||||||operation parameters|||
||||||of coal mill from the|||
||||||SIS system and|||
||||||conduct the logical|||
||||||analysis and operation|||
||||||for these data to|||
||||||achieve the|||
||||||self-adaptation control|||
||||||for the outlet|||
||||||temperature of boiler|||
||||||coal mill.|||
|16|GuangdongRed BayPowerGenerastionCo., Ltd.||Water balancetest of four unitsin the wholeplant andfeasibility studyoncomprehensivetreatment ofwaste water||It is required to|Completed|The waste water control plan of our plantshall be formulated, and the waste waterzero discharge transformation shall becompleted before 2020.|
||||||propose the evaluation|||
||||||results for the current|||
||||||operation effect of the|||
||||||water treatment system|||
||||||and sewage (including|||
||||||sludge) treatment|||
||||||system through the|||
||||||accurate tests and|||
||||||scientific|||

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
|No||Project|Project name|Purpose||Projectprogress|Target and influence|
|||company||||||
|||name||||||
||||||computational|||
||||||analysis, elaborate the|||
||||||necessity and|||
||||||feasibility of waste|||
||||||water zero discharge,|||
||||||perform the detailed|||
||||||comparison|||
||||||demonstration for all|||
||||||transformation|||
||||||schemes, put forward|||
||||||the best transformation|||
||||||scheme for the waste|||
||||||water zero discharge,|||
||||||propose the|||
||||||transformation scheme|||
||||||for the corresponding|||
||||||supporting works and|||
||||||obtain the feasibility|||
||||||study report.|||
|17|GuangdongElectric PowerDevelopmentCo., Ltd.Shajiao APower Plant||Systemmaintenanceand equipmentupdate forone-unit-double-modulesimulationmachine of 200MW and 300MW units||Regarding the 200|Completed|Referring to the #1 and #5 units, there-commissioning is required for alloperation parameters and operationconditions as per 1:1. Referring to thesystems of the #1 and #5 units, theengineering differences shall be modifiedas required with the addition ofcorresponding faults. All relevantoperations on DCS shall be consistent withthose on the unit to ensure the consistencyof on-off operation status. The systemmaintenance of simulation machineincludes the operation stability andhardware and software faults of the wholeset of simulation machine system, and thesystem shall be stably operated.|
||||||MW and 300 MW|||
||||||simulation machine|||
||||||systems in the Shajiao|||
||||||A Power Plant with the|||
||||||remote access|||
||||||function, the technical|||
||||||upgrading|||
||||||maintenance and|||
||||||service are required for|||
||||||the #1 and #5 units,|||
||||||public system, network|||
||||||control and denitration|||
||||||and desulfurization|||
||||||equipment as well as|||
||||||remote training in|||
||||||other places after the|||
||||||accurate simulation|||
||||||transformation.|||
|18|GuangzhouHuizhouNatural GasPowerGenerationCo., Ltd.||Informationsecurityintegratedservice project||It is planned to rectify|Completed|The project contents have been completed.The provincial and municipal softwarelegalization system managementrequirements have been met, and therelated requirements of public security netpolice have been met by the Internetboundary and external websites.|
||||||and repair the public|||
||||||network IP, the|||
||||||Internet applications,|||
||||||server host, etc. with|||
||||||potential safety hazard,|||
||||||and also deploy the|||
||||||copyrighted software|||
||||||detecting platform in|||
||||||the internal office|||
||||||computer of the|||
||||||company to comply|||
||||||with the provincial and|||
||||||municipal software|||
||||||legalization|||

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
|No||Project|Project name|Purpose||Projectprogress|Target and influence|
|||company||||||
|||name||||||
|||||managementrequirements.||||
|19|GuangdongHuizhouPinghai PowerGenerationCo., Ltd.||Energy-savingoptimizationandmanagementdecision-making system basedon onlinesimulation1,000 MWthermal powerunit||For the project|Completed|1) The data has been shared for the unitcontrol, simulation and informationsystem, and the integration of actualmeasured data and virtual data and ofreal-time data and historical data has beenhighlighted to provide the data support forthe system optimization function tosupport the online analysis, diagnosis andoptimization of the production by thepower plant in the whole process.2) The dynamic benchmarking base in theoverall working conditions and optimizingalgorithm model of the unit has beenestablished to provide the platform andtools for the actual energy saving andconsumption reduction of the unit.3) The cockpit of management has beenrealized, so that the managers will handlethe key data related to production,operation and management of the powerplant in a one-stop way to provide theimportant information support for theproduction, operation and managementdecision-making.|
||||||research, the|||
||||||simulation model shall|||
||||||be established, and the|||
||||||big data optimizing|||
||||||technology shall be|||
||||||used to establish the|||
||||||dynamical system of|||
||||||unit in the overall|||
||||||working conditions. It|||
||||||is required to study|||
||||||and establish the|||
||||||dynamic and static|||
||||||characters of the unit,|||
||||||build the endogenetic|||
||||||closed-loop optimizing|||
||||||management mode and|||
||||||deeply excavate the|||
||||||man-machine potential|||
||||||to achieve the goals of|||
||||||overall improvement|||
||||||of unit performance|||
||||||and continuous|||
||||||optimum energy|||
||||||consumption.|||
|20|GuangdongWind PowerGenerationCo., Ltd.||Infrastructuremanagementinformationsystem (MIS)project||According to the|Completed|For the infrastructure MIS, thedevelopment condition evaluation in theearly project stage, project approval andinvestment decision-making, projectconstruction commencement and completeproject management before the projectsare qualified in the "240" productionacceptance have been completed for allprojects of the company|
||||||information-based|||
||||||construction planning,|||
||||||the wind power|||
||||||company aims to build|||
||||||a set of infrastructure|||
||||||MIS to realize the|||
||||||whole process|||
||||||management for all|||
||||||wind power projects|||
||||||subordinate to|||
||||||Guangdong Wind|||
||||||Power Company.|||

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
|No||Project|Project name|Purpose||Projectprogress|Target and influence|
|||company||||||
|||name||||||
|21|MaomingZhennengThermoelectric co., Ltd.||Research onanti-blockingandcomprehensivetreatment forheat exchangerelements of airpre-heater of600 MW unit||Through the unit|It is amulti-yearproject. Thedesign andsupply werecompleted in2018. Theconstructionwas startedduring theClass-Boverhaul ofthe unit inFebruary2019, andhas beencompletedbasically atpresent. Thestart-up andcommissioning will bestarted inApril.|1) Prevent the corrosion and blocking ofheat exchanger elements in the airpre-heater;2) Effectively prolong the normal servicelife of air pre-heater;3) Reduce the power consumption of fans;4) Reduce the air leakage of air pre-heater.|
||||||operation parameter|||
||||||collection and tests,|||
||||||the ammonium|||
||||||bisulfate blocking shall|||
||||||be analyzed and|||
||||||researched for the|||
||||||hot-end heat exchanger|||
||||||elements of the air|||
||||||pre-heater after the|||
||||||ultra-low emission|||
||||||transformation of the|||
||||||#7 unit, and the|||
||||||optimal design|||
||||||technical requirements,|||
||||||transformation cost|||
||||||and other factors of the|||
||||||heat exchanger|||
||||||elements shall be|||
||||||proposed. The design|||
||||||shall be conducted|||
||||||according to all|||
||||||economic and|||
||||||reliability parameters|||
||||||and the requirements|||
||||||of preventing the heat|||
||||||exchanger element|||
||||||corrosion of air|||
||||||pre-heater and|||
||||||effectively prolonging|||
||||||the normal service life|||
||||||of air pre-heater to|||
||||||ensure the long-term|||
||||||safe, sound and|||
||||||economical operation|||
||||||of the air pre-heater.|||
|22|MaomingZhennengThermoelectric co., Ltd.||Plant-level AGCsystemtransformation||It refers to that the|Completed|After the plant-level AGC is put intooperation, the net coal consumption ratewill be reduced by 0.2% at least under theideal working conditions compared withthat in the single AGC mode.|
||||||AGC instruction is|||
||||||changed to the load|||
||||||instruction of the|||
||||||whole plant from the|||
||||||former single unit, and|||
||||||the load optimization|||
||||||calculation shall be|||
||||||undertaken via the|||
||||||AGC server after|||
||||||receiving the load|||
||||||instruction of the|||
||||||whole plant issued by|||
||||||the dispatcher. The|||
||||||AGC instruction will|||
||||||be reasonably|||
||||||distributed to all units|||
||||||by the AGC server as|||

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
|||||||||
|-|-|-|-|-|-|-|-|
|No||Project|Project name|Purpose||Projectprogress|Target and influence|
|||company||||||
|||name||||||
||||||per such principles as|||
||||||economical efficiency,|||
||||||rapidity and regulation|||
||||||frequency, so as to|||
||||||realize the safe, stable|||
||||||and economical|||
||||||operation of all units in|||
||||||the power plant.|||
|23|GuangdongYudeanJinghai PowerGenerationCo., Ltd.||DEH and MEHcontrol systemoptimization of#3 and #4 units||Upon the formal|Completed|The easy switch of DC power supply andthe complete electrical isolation shall berealized by the DC power isolation toensure no electrical connection oftwo-circuit DC power supply in operationand guarantee the reliability of the DEHand MEH control systems.|
||||||situations, it is|||
||||||required to coordinate|||
||||||the control system and|||
||||||water supply control|||
||||||system, add the|||
||||||configuration analog|||
||||||quantity output|||
||||||modules, and add the|||
||||||configuration analog|||
||||||quantity input modules|||
||||||for the DEH and MEH|||
||||||control systems.|||

Situation of Research and Development Input by the Company
|||||
|-|-|-|-|
||2018|2017|Increase/Decrease(%)|
|Number of Research and||||
||303|357|-15.13%|
|Development persons (persons)||||
|Proportion of Research and||||
||4.41%|5.13%|-0.72%|
|Development persons||||
|Amount of Research and||||
||15,319,005|27,896,103|-45.09%|
|Development Investment ( Yuan)||||
|Proportion of Research and||||
|Development Investment of|0.06%|0.10%|-0.04%|
|Operation Revenue||||
|Amount of Research and||||
|Development Investment|10,275,228|10,915,230|-5.86%|
|Capitalization ( Yuan)||||
|Proportion of Capitalization||||
|Research and Development||||
||67.08%|39.13%|27.95%|
|Investment of Research and||||
|Development Investment||||

Guangdong Electric Power Development Co., Ltd. 2018Annual Report 5.Cash Flow
In RMB
|||||
|-|-|-|-|
|Items|2018|2017|Increase/Decrease(%)|
|Subtotal of cash inflow received|31,552,291,981|31,168,841,936||
||||1.23%|
|from operation activities||||
|Subtotal of cash outflow received|25,552,355,625|27,492,807,433||
||||-7.06%|
|from operation activities||||
|Net cash flow arising from|5,999,936,356|3,676,034,503||
||||63.22%|
|operating activities||||
|Subtotal of cash inflow received|553,123,440|272,155,161||
||||103.24%|
|from investing activities||||
|Subtotal of cash outflow for|3,863,003,329|3,555,163,705||
||||8.66%|
|investment activities||||
|Net cash flow arising from|-3,309,879,889|-3,283,008,544||
||||-0.82%|
|investment activities||||
|Subtotal cash inflow received|18,696,353,753|14,959,157,340||
||||24.98%|
|from financing activities||||
|Subtotal cash outflow for|20,812,608,337|15,540,475,704||
||||33.93%|
|financing activities||||
|Net cash flow arising from|-2,116,254,584|-581,318,364||
||||-264.04%|
|financing activities||||
|Net increase in cash and cash|573,802,402|-188,293,160||
||||404.74%|
|equivalents||||

Notes to the year-on-year change of the relevant data
√Applicable□ Not applicable
1. The net cash flow from operating activities increased by63.22%, mainly due to the decrease in cash purchases for fuel purchases due to the transfer of power generation rights of some units.
2. The cash inflow from investment activities increased by103.24%, mainly due to the acquirement of 162 million yuan of monetary funds from the merger of Maoming Thermal Power Plant.
3. The net cash flow from financing activities decreased by264.04%, mainly due to the repayment of corporate bonds and other long-term and short-term loans.
4. The net increase of cash and cash equivalents was404.74%, which was mainly due to the increase in net cash flow from operating activities during the reporting period and the decrease in net cash flow from financing activities.
Notes to the big difference between cash flow from operating activities and net profit in the reporting year√Applicable□ Not applicable
The main impact of non-cash outflow of assets, depreciation and amortization, interest expense of non-business activities.
Ⅲ.Analysis of Non-core Business
□Applicable√Not applicable
Guangdong Electric Power Development Co., Ltd. 2018Annual ReportⅣ.Condition of Asset and Liabilities
1.Condition of Asset Causing Significant Change
In RMB
||||||||
|-|-|-|-|-|-|-|
||End of 2018||End of 2017||||
||||||Proportion||
|||Proportion in||||Notes to the|
|||||Proportion in the|increase/||
||Amount|the total|Amount|||significant change|
|||||total assets(%)|decrease||
|||assets(%)|||||
|Monetary fund|5,574,382,892|7.60%|4,996,580,490|7.04%|0.56%||
|Accounts receivable|3,358,331,949|4.58%|2,826,237,259|3.98%|0.60%||
|Inventories|1,481,817,270|2.02%|1,527,634,773|2.15%|-0.13%||
|Investment real|10,810,722||8,296,639||||
|||0.01%||0.01%|0 %||
|estate|||||||
|Long-term equity|6,395,134,754||5,801,006,412||||
|||8.72%||8.17%|0.55%||
|investment|||||||
|Fixed assets|41,157,594,848|56.13%|41,010,868,549|57.76%|-1.63%||
|Construction in|7,740,754,343||8,503,556,373||||
|||10.56%||11.98%|-1.42%||
|process|||||||
|Short-term loans|7,526,000,000|10.26%|9,270,000,000|13.05%|-2.79%||
|Long-term loans|18,802,292,664|25.64%|19,465,723,869|27.41%|-1.77%||

2.Asset and Liabilities Measured by Fair Value
√ Applicable□Not applicable
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Gain/loss on||||||
||||Cumulative fair|Impairment|Purchased|Sold amount||
||Amount at|fair value||||||
||||value change|provisions in|amount in the|in the|Amount at|
|Items|year|change in the||||||
||||recorded into|the reporting|reporting|reporting|year end|
||beginning|reporting||||||
||||equity|period|period|period||
|||period||||||
|Financial assets||||||||
|3.||||||||
|Avaliable-for-sale|408,992,985|550,678,145.73|704,342,514.73||180,135,200||1,139,806,331|
|financial assets||||||||
|Total|408,992,985|550,678,145.73|704,342,514.73||180,135,200||1,139,806,331|
|Financial||||||||
||0||||||0|
|Liability||||||||

Did great change take place in measurement of the principal assets in the reporting period ?
□ Yes√ No
3. Restricted asset rights as of the end of this Reporting Period
（1）Pledge of assets
As of December 31, 2018, the Company had a total of accounts receivable with a book value of 396,323,295 yuan
(as of December 31, 2017: 402,847,793 yuan), together with the power charge rights of several power generation
subsidiaries, were pledged to the bank to obtain long-term loans of 2,765,356,586 yuan, of which: the balance of
long-term loans due within one year was 213,259,115 yuan (as of December 31, 2017: 2,698,978,707 yuan). The
Guangdong Electric Power Development Co., Ltd. 2018Annual Report borrowings are detailed as follows:
1.As at December 31, 2018, the long-term pledge borrowings of the following subsidiaries were based on their power fee charging rights and accounts receivable as pledges:
In RMB
||||
|-|-|-|
|Name|December 31, 2018|December 31, 2017|
|Guangdong Shaoguan Yuejiang Power Generation Co., Ltd.|2,151,963,439|2,276,504,889|
|Guangdong Yudean Leizhou Power Generation Co., Ltd.|236,829,612|188,420,594|
|Guangdong Yudean Qujie Wind Power Generation Co., Ltd.|162,820,000|-|
|Guangdong Yudean Zhanjiang Wind Power Generation Co., Ltd.|138,945,000|156,465,000|
|Guangdong Yudean Xuwen Wind Power Generation Co., Ltd.|74,798,535|77,588,224|
|Total|2,765,356,586|2,698,978,707|

 2.As at December 31, 2018, the long-term pledge borrowings of the following subsidiaries due within
one year were based on their power fee charging rights and accounts receivable as pledges:
In RMB
||||
|-|-|-|
|Name|December 31, 2018|December 31, 2017|
|Guangdong Shaoguan Yuejiang Power Generation Co., Ltd.|186,859,840|180,897,292|
|Guangdong Yudean Zhanjiang Wind Power Generation Co., Ltd.|18,274,167|17,520,000|
|Guangdong Yudean Xuwen Wind Power Generation Co., Ltd.|6,527,993|10,062,668|
|Guangdong Yudean Leizhou Power Generation Co., Ltd.|1,597,115|1,099,615|
|Total|213,259,115|209,579,575|

 V.Investment situation
1. General
√ Applicable□ Not applicable
||||
|-|-|-|
|Investment Amount in 2018(RMB)|Investment Amount in 2017(RMB)|Change rate|
|1,179,713,500|585,140,000|101.61%|

 2.Condition of Acquiring Significant Share Right Investment during the Report Period
√ Applicable□ Not applicable
In RMB
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||Gain or L|Whether|||
|Name of the||||Share||||||revenue|||Date of||
||Main|Investment|Investment||Capital||Investment|Product|Progress up to Ba||ess or the|to Inv|||
|Company||||Proport||Partner||||projecti|||Disclosure|Disclosure Index|
||Business|Way|Amount||Source||Horizon|Type|lance Sheet Date||Current I|olve in|||
|Invested||||ion %||||||on|||(Note 5)||
||||||||||||nvestment|Lawsuit|||
||||||||||During the reporti||||||
|Guangdong|||||||||ng period, the co|||||Announcement No.:2018-16)P|
||Wind||||||||||||||
|Yudean Qujie|||||||||nstruction of Zhan|||||ublished in|
||Power|Capital inc|548,000,000||Self|||Electric|||||March 2||
|Wind Power||||100 %||No|Long-term||jiang Wailuo Offs||--|No||China Securities Daily, S|
||Generatio|rease|||funds|||power|||||2,2018||
|Generation|||||||||hore Wind power|||||ecurities Times and http|
||n||||||||||||||
|Co., Ltd.|||||||||project was unde|||||//.www.cninfo.com.cn|
||||||||||r normal progress||||||
||||||||||During the reporti||||||
||||||||||ng period,Zhuhai||||||
||||||||||Jinwan offshore w||||||
|||||||||||||||Announcement No.:2018-29)P|
|Guangdong|Wind||||||||ind power project||||April 28,||
|||||||||||||||ublished in|
|Wind Power|Power|Capital inc|365,000,000||Self|||Electric|and Yangjiang S||||2018, Au||
|||||100 %||No|Long-term||||--|No|||
|||||||||||||||China Securities Daily, S|
|Generation|Generatio|rease|||Funds|||power|hapa offshore prel||||gust 31,2||
|||||||||||||||ecurities Times and http|
|Co., Ltd.|n||||||||iminary work or||||018||
|||||||||||||||//.www.cninfo.com.cn|
||||||||||project constructio||||||
||||||||||n was under nor||||||
||||||||||mal progress.||||||
||||||||||During the reporti||||||
|GuangdongHu||||||||||||||Announcement No.:2013-36)P|
||Natural|||||China Petroleum|||ng period, Huizho||||||
|izhou Natural||||||||||||||ublished in|
||Gas|Capital inc|103,578,300||Self|& Gas Group Co.,||Electric|u LNG power pla||||April 28,||
|Gas||||67 %|||Long-term||||--|No||China Securities Daily, S|
||Generatio|rease|||Funds|Ltd.（shareholding||power|nt phase II expan||||2013||
|Thermoelectri||||||||||||||ecurities Times and http|
||n|||||ratio：33%）|||sion project #4, #||||||
|c Co., Ltd.||||||||||||||//.www.cninfo.com.cn|
||||||||||5 completed||||||
|Guangdong||||||||||||||Announcement No.:2018-28)P|
|Yudean||||||Guangdong Yudea||||||||ublished in|
||Property|Capital inc|||Self|||Insuran|In normal operati||14,704,347||April 28,||
|Property|||98,000,000|49 %||n Group（sharehol|Long-term|||||No||China Securities Daily, S|
||Insurance|rease|||Funds|||ce|on||||2018||
|Insurance Co.,||||||ding ratio：51%）||||||||ecurities Times and http|
|Ltd.||||||||||||||//.www.cninfo.com.cn|
|||||||State-owned assets|||||||||
|Shenzhen||||||||Venture||||||Announcement No.:2018-50)P|
||Investme|Capital inc|||Self|Supervision and|||In normal operati||16,978,500||September||
|Capital Group|||65,135,200|3.67%|||Long-term|Capita||||No||ublished in|
||nt|rease|||Funds|Administration Co|||on||||20,2018||
|Co., Ltd.||||||||l||||||China Securities Daily, S|
|||||||mmission of Shen|||||||||

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||InvestmentAmount||||||rProgress up to Balance Sheet Date||Gain or L|Whether|||
|Name of the||||Share||||||evenue|||Date of||
||Main|Investment|||Capital||Investment|Product|||ess or the|to Inv|||
|Company||||Proport||Partner||||projecti|||Disclosure|Disclosure Index|
||Business|Way|||Source||Horizon|Type|||Current I|olve in|||
|Invested||||ion %||||||on|||(Note 5)||
||||||||||||nvestment|Lawsuit|||
|||||||zhen Municipal pe||||||||ecurities Times and http|
|||||||ople's Government||||||||//.www.cninfo.com.cn|
|||||||（shareholding rati|||||||||
|||||||o：28.1952%）|||||||||
|Total|--|--|1,179,713,500|--|--|--|--|--|--|0|31,682,847|--|--|--|

 3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
□ Applicable√ Not applicable
4.Investment of Financial Asset
（1）Securities investment
√ Applicable□Not applicable
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||Book value|||
||||||Book value|||Purchase|Sale|Gain/los||||
||||Initial|Mode of||Changes in|Cumulative fair||||balance at the|||
|Security|Security|Stock|||balance at the|||amount in|amount in|s of the||Accounting|Source of|
||||investment|accounting||fair value of|value changes in||||end of the|||
|category|code|Abbreviation:|||beginning of the|||the this|the this|reportin||items|the shares|
||||cost|measurement||the this period|equity||||reporting|||
||||||reporting period|||period|period|g period||||
||||||||||||period|||
|||||||||||||Financial||
|Domestic||||||||||||||
|||Shenzhen||||||||||assets||
|and foreign|000027||15,890,628|FVM|76,356,000|-10,206,000|50,259,372||||66,150,000||Self funds|
|||Energy||||||||||available||
|stocks||||||||||||||
|||||||||||||for sales||
|||||||||||||Financial||
|Domestic||||||||||||||
|||||||||||||assets||
|and foreign|600642|Shenergy|235,837,988|FVM|325,418,985|-54,421,605|35,159,392||||270,997,380||Self funds|
|||||||||||||available||
|stocks||||||||||||||
|||||||||||||for sales||
|||||||||||||Financial||
|Domestic||||||||||||||
|||||||||||||assets||
|and foreign|831039|NEEQ|3,600,000|FVM|7,218,000|-3,600,000|18,000||||3,618,000||Self funds|
|||||||||||||available||
|stocks||||||||||||||
|||||||||||||for sales||
|Total|||255,328,616|--|408,992,985|-68,227,605|85,436,764|0|0|0|340,765,380|--|--|

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
||
|-|
|Disclosure date for the notice of|
|approval by the Board (If any)|
|Disclosure date for the notice of|
|approval by shareholders’ Meeting|
|(If any)|

（2）Investment in Derivatives
□ Applicable√ Not applicable
Nil
5.Application of the raised capital
□ Applicable√ Not applicable
Nil
Guangdong Electric Power Development Co., Ltd. 2018Annual ReportⅥ.Significant Asset and Right Offering
1.Situation of Significant Asset Sale
□ Applicable√ Not applicable
Nil
2.Situation of Substantial Stake Sale
□ Applicable√ Not applicable
Ⅶ.Analysis of the Main Share Holding Companies and Share Participating Companies
√ Applicable□ Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over10% net profit influencing to the Company In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Compa|Sectors|Registered||||Operating||
|Company Name||||Total assets|Net assets|Turnover||Net Profit|
||ny type|engaged in|capital||||profit||
|||Power|||||||
|Shenzhen||generation|||||||
||Subsidi||||||||
|Guangqian Electric||and power|1,030,292,500|1,738,775,134|1,523,688,363|1,578,959,468|293,140,274|217,741,510|
||ary||||||||
|Power Co., Ltd.||station|||||||
|||construction.|||||||
|||Power|||||||
|Guangdong|||||||||
|||generation|||||||
|Huizhou Pinghai|Subsidi||||||||
|||and power|1,370,000,000|5,717,822,858|2,059,658,267|3,409,291,625|621,336,918|447,090,283|
|Power Generation|ary||||||||
|||station|||||||
|Plant Co., Ltd.|||||||||
|||construction.|||||||
|||Power|||||||
|Guangdong|||||||||
|||generation|||||||
|Huizhou Natural gas|Subsidi||||||||
|||and power|1,455,893,000|4,188,347,804|1,977,252,192|2,181,208,736|346,582,409|258,912,703|
|Power Generation|ary||||||||
|||station|||||||
|Co., Ltd.|||||||||
|||construction.|||||||
|||Power|||||||
|Guangdong Red||generation|||||||
||Subsidi||||||||
|Bay Power||and power|2,749,750,000|6,702,910,738|3,302,013,741|4,089,089,204|314,389,189|230,336,446|
||ary||||||||
|Generation Co., Ltd.||station|||||||
|||construction.|||||||
|||Power|||||||
|||generation|||||||
|Zhanjiang Electric|Subsidi||||||||
|||and power|2,875,440,000|4,447,726,762|4,087,805,472|1,997,634,196|254,675,122|234,112,612|
|Power Co., Ltd.|ary||||||||
|||station|||||||
|||construction.|||||||
|||Power|||||||
|Guangdong Yudean||generation|||||||
||Subsidi||||||||
|Jinghai Power||and power|2,919,272,000|9,198,927,667|3,509,291,691|4,871,729,888|156,318,617|118,466,364|
||ary||||||||
|Generation Co., Ltd.||station|||||||
|||construction.|||||||
|||Power|||||||
|Maoming Zhenneng|Subsidi||1,437,985,100|3,032,630,588|1,310,428,812|1,552,628,327|-136,049,753|-98,577,591|
|||generation|||||||

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
||||||||||
|-|-|-|-|-|-|-|-|-|
||Compa|Sectors|Registered||||Operating||
|Company Name||||Total assets|Net assets|Turnover||Net Profit|
||ny type|engaged in|capital||||profit||
|Company|ary|and power|||||||
|||station|||||||
|||construction.|||||||
|||Power|||||||
|||generation|||||||
|Lincang Yudean|Subsidi||||||||
|||and power|396,490,000|1,365,862,109|282,527,679|74,926,701|-87,439,014|-87,568,487|
|Energy Co., Ltd.|ary||||||||
|||station|||||||
|||construction.|||||||
|||Power|||||||
|Zhanjiang||generation|||||||
||Subsidi||||||||
|Zhongyue Energy||and power|1,454,300,000|4,386,995,844|899,427,220|1,543,769,329|-187,824,299|-138,013,508|
||ary||||||||
|Co., Ltd.||station|||||||
|||construction.|||||||
|||Power|||||||
|Guangdong Yudean||generation|||||||
||Subsidi||||||||
|Dapu Wind Power||and power|1,000,000,000|4,780,260,094|805,422,561|1,257,056,007|-203,308,409|-151,414,529|
||ary||||||||
|Generation Co., Ltd.||station|||||||
|||construction.|||||||
|||Power|||||||
|Guangdong|||||||||
|||generation|||||||
|Shaoguan Yuejiang|Subsidi||||||||
|||and power|1,400,000,000|6,913,710,134|412,931,527|2,181,861,777|-364,193,226|-364,749,341|
|Wind Power|ary||||||||
|||station|||||||
|Generation Co., Ltd.|||||||||
|||construction.|||||||
||Sharing||||||||
|Shanxi Yudean||Coal|||||||
||Compa||1,000,000,000|3,843,006,761|3,601,608,790|3,689,284|569,419,971|569,420,122|
|Energy Co., Ltd.||Investment|||||||
||ny||||||||
|||Power|||||||
|Guangdong Guohua|Sharing|generation|||||||
|Taishan Power|Compa|and power|4,669,500,000|10,923,026,575|7,643,625,249|8,171,917,086|1,091,644,135|811,868,081|
|Generation Co., Ltd.|ny|station|||||||
|||construction.|||||||
|Guangdong Power|Sharing||||||||
|Industry Fuel|Compa|Coal Trade|630,000,000|2,994,601,862|1,045,593,651|21,313,952,451|187,894,245|151,229,161|
|Company|ny||||||||
||Sharing||||||||
|Guangdong Yudean||financial|||||||
||Compa||2,000,000,000|22,559,762,521|2,845,792,424|720,277,335|418,717,268|341,902,454|
|Finance Co., Ltd.||service|||||||
||ny||||||||

Acquirement and disposal of subsidiaries in the Reporting period
√ Applicable□ Not applicable
||||
|-|-|-|
||Way of acquiring and disposing of||
|||Impact on the whole producing operation|
|Company name|subsidiary corporations within the||
|||and performance|
||reporting period||
|||During the reporting period, Zhuhai|
|Guangdong Yudean Zhuhai Offshore Wind||Jinwan offshore wind power project was in|
||Invested||
|Power Co., Ltd.||the preliminary stage and with construction|
|||not commenced yet.|
|Guangdong Yudean Zhencheng Integrated|||
||Invested|There is no significant impact|
|Energy Co., Ltd.|||

Note:
Guangdong Electric Power Development Co., Ltd. 2018Annual Report 1. During the reporting period, the profits of most coal-fired power plants decreased significantly year on year due to the increase in coal prices and the concession of market electricity prices. Some subsidiaries such as Yuejiang Company, Zhanjiang Zhongyue Company, Zhenneng Company and Dapu Power Plant suffered operating losses. 2. Due to the power market reform in Yunnan Province, Lincang Company, a wholly-owned subsidiary of the Company, suffered from operating losses during the reporting period due to lower electricity consumption and low electricityprice，and impairment of assets. Guangqian Company, Huizhou LNG and other companies with strong profitability for natural gas power generation projects have made a greater contribution to the company's net profit to its parent.
3. The company's investment income in affiliated companies has increased overally. Among them, Shanxi Energy Company has strong profitability due to the continuous high price of coal; Affected by the year-on-year increase in electricity, Taishan Power Plant's year-on-year profit increases significantly; Due to the continuous expansion of business scale, the profits of financial companies has a larger year-on-year increase.
Ⅷ.Special purpose vehicle controlled by the Company
□ Applicable√ Not applicable
Ⅸ.Prospect for future development of the Company
1. The Development Trend of the Industry
Currently, China's power generation industry continues to present a diversified competitive pattern. The company's main power assets are mainly in Guangdong Province, which is with many other power producers and is greatly affected by the power transmission from west to east. China's electricity production has always been driven by thermal power. Although the proportion of thermal power has decreased with the rapid development of nuclear power, hydropower, wind power, solar energy and other new and renewable energy sources in the past decade, thermal power is still the main power source in China. The problem of excess coal power production capacity and excessive increase in installed capacity across the country has been significantly curbed. However, due to China's energy structure of "rich coal, deficient oil, and lean gas", the current situation that China's basic energy supply is dominated by coal cannot be changed for a foreseeable period of time. Moreover, a break-through has been made for the ultra-clean emission power generation technology for large coal-fired power generation units currently, and there is still room for development of large-capacity and high-parameter coal-fired power generation units in the future. In addition, investment in large-scale natural gas power generation projects conforms to the national policy guidance. Although the gas price of natural gas is relatively high and the economy of investment in gas turbine projects is still not ideal currently, with the deepening of power system reform, the compensation mechanism for social effects of gas turbine is expected to achieve a breakthrough in the future and is expected to have a better development prospect in the future. With the deepening of power system reform, the transaction scale of power market has expanded, and the level of price difference is uncertain. Therefore, in this environment, the thermal power industry will mainly rely on developing large-capacity and high-parameter coal power and accelerating gas power to optimize its structure, upgrading its technical strength to reduce consumption and increase efficiency, marketing to obtain electric quantity and electricity prices, and reducing costs and increasing efficiency to reduce management costs.
2. Corporate development strategy
During the 13th Five-Year Plan period, the company established the strategic orientation of "Large-scale group
Guangdong Electric Power Development Co., Ltd. 2018Annual Report power generation listed companies serving the national strategy, group strategy and urban development, with power generation business as its main development area, industrial operation as its main development idea, and domestic first-class and power generation listed companies with international competitiveness as its main development direction", to optimize the development of coal and electricity, steadily develope gas and electricity, vigorously develope clean energy sources such as wind power and hydropower, continuously optimize the power supply structure, and select the pattern of high efficiency, cleanness and low carbon. For future development, the company will actively distribute clean energy sources such as wind power, gas power and hydropower, and optimize the power generation structure; In combination with relevant national policies, it will actively promote large and reduce small for upgrade and transformation for thermal power projects, to improve the quality of power supply; It will actively expand the electricity sales business, conform to the situation of power system reform, and explore new business fields and development space.
3.Production and operation plans
In 2019, the company's consolidated statement has a budget target value of 70.981 billion kilowatt hours of on-grid electricity, which is basically the same as the actual amount of on-grid electricity completed in 2018; The budgetary target value of the main business revenue is RMB 27.927 billion, an increase of RMB 800 million and increase of 2.95% compared to the actual amount of main business operating revenue of RMB 27.126 billion; the budgetary value for the full-year planned investment is RMB 1.2531 billion, an increase of RMB 350 million or an increase of29.75% over the actual completed investment of RMB 1.18 billion in 2018.
(Note: The above operating plan does not represent the company's profit forecast for 2019, whether it can be achieved depending on various factors such as changes in the electricity market and coal market conditions, thus there is considerable uncertainty, and investors should pay special attention to it.)
4.Possible risks
Firstly, the main business is under constant pressure. Due to the expansion of power transmission from the west to the east and the continuous production of nuclear power and gas power in the province, the market share of coal power in the province has been reduced, and the utilization hours of coal-fired units in the company are at risk of further decline. Long-term deep peak regulation, low-load operation and repeated start-up and shutdown seriously affect the safety and economy of the units. Coal prices continue to run at high levels, generating costs remain high, and environmental protection investment needs to be increased, which affect the economic benefits of the unit. In 2019, Guangdong's electricity market will expand to 200 billion kilowatt-hours, with a year-on-year increase of 40 billion kilowatt-hours, accounting for45% of the province's electricity generation, and the average price of electricity sold may further decline against the background of an oversupply of electricity.
Secondly, the project development is limited. Under the current policy environment, the overall economic benefits of coal-fired units are relatively poor, and only large units in coastal areas are relatively stable. Although the clean energy business of the company has made great progress in recent years, its overall proportion is still relatively low, and the investment income of the newly-launched cogeneration project needs to be improved. The task of optimizing the main business structure is arduous.
Thirdly, the system and mechanism is lacking in competitiveness. With the deepening of state-owned enterprise reform, power system reform and supply-side reform, the degree of marketization of upstream and downstream enterprises in power production continues to improve, which reduces the profitability of the company. However, the company's internal management mechanism, operation mode and allocation measures still remain under the traditional system. It is necessary to speed up the reform of the system and mechanism so as to truly improve the company's market competitiveness.
Guangdong Electric Power Development Co., Ltd. 2018Annual Report (V) Countermeasures
Firstly, focus on improving quality and efficiency, improving the level of management, and improving the quality and efficiency of enterprise operations. Comprehensively organize the value chain of "purchase-production-supply-sale" of power generation enterprises, reasonably define the management interface and value interface, implement the management responsibility for compacting relevant factors, fully connect with the coal, natural gas and electricity markets, establish a new mechanism that is conducive to releasing the operating pressure of the main power industry to the market, and improve the market competitiveness of power generation enterprises. Ensure that Guangdong Electric Power's characteristic power marketing system is implemented in place, so that power marketing can more adapt to market changes. Continue to promote all-round meticulous management for all employees, continuously improve the management level and enhance the quality and efficiency of enterprise operation.
Secondly, adhere to the new development concept and steady progress, and improve the quality of development. Continue to implement the deployment and instruction spirit of Guangdong provincial government on vigorously developing offshore wind power and promoting industrial transformation and upgrading, and accelerate the development of offshore wind power projects; In combination with national policies, encourage the development of clean energy sources such as natural gas and biomass and the clean and efficient use of coal, accelerate the layout of gas, clean coal and biomass power generation projects and strive for new development opportunities; Based on the development plan of Guangdong-Hong Kong-Macao Greater Bay Area, full use the opportunity of decommissioning and reconstruction of Shajiao Power Plant to build a super-strong energy supply base with combined supply of gas, electricity, heat and coldness.
Thirdly, persist in the mechanism of deepening the reform and innovating the development. Taking the opportunity of the controlling shareholder Guangdong Energy Group's implementation of the three-level control mode adjustment of "groupheadquarters+platformenterprises+business units", further straighten out its control mode over subordinate enterprises, optimize the system process, and establish an efficient control system with hierarchical responsibility, hierarchical decision-making and hierarchical management to ensure that it is "well received and well managed". Vigorously promote the construction of incentive and restraint mechanisms, formulate new measures for the assessment and compensation incentive management of subordinate enterprises, establish a new assessment index system that integrates party building, safety, operation, development and enterprise management, and establish a long-term incentive mechanism that combines long term and short term, focuses on both incentives and constraints, and integrates benefit distribution and long-term value creation.Ⅹ.Particulars about researches, visits and interviews received in this reporting period
1.Particulars about researches, visits and interviews received in this reporting period
√ Applicable□ Not applicable
|||||
|-|-|-|-|
|Reception time|Way of reception|Types of visitors|Basic index|
||||Details can be found in the Record Chart of the|
|May 25,2018|Onsite investigation|Organization|Investor Relation Activity disclosed on Juchao|
||||website(www.cninfo.com.cn) on 29 May 2018.|
||||Details can be found in the Record Chart of the|
|June 7,2018|Onsite investigation|Organization|Investor Relation Activity disclosed on Juchao|
||||website(www.cninfo.com.cn) on 11 June 2018.|
||||Details can be found in the Record Chart of the|
|July 5,2018|Onsite investigation|Organization||
||||Investor Relation Activity disclosed on Juchao|

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
||||||
|-|-|-|-|-|
|||||website(www.cninfo.com.cn) on 6 July 2018.|
|||||Details can be found in the Record Chart of the|
|July 24,2018|Onsite investigation||Organization|Investor Relation Activity disclosed on Juchao|
|||||website(www.cninfo.com.cn) on 26 July 2018.|
|||||Details can be found in the Record Chart of the|
|September 26,2018|Onsite investigation||Organization|Investor Relation Activity disclosed on Juchao|
|||||website(www.cninfo.com.cn) on 8 October 2018.|
|||||Details can be found in the Record Chart of the|
|November 20,2018|Onsite investigation||Organization|Investor Relation Activity disclosed on Juchao|
|||||website(www.cninfo.com.cn) on 23 November 2018.|
|Reception times||6|||
|Reception agency amount||26|||
|Reception personal number||34|||
|Others||0|||
|Whether to disclose, reveal or disclose non-public|||||
|||No|||
|material information|||||

Guangdong Electric Power Development Co., Ltd. 2018Annual Report V. Important Events
ⅠSpecification of profit distribution of common shares and capitalizing of common reserves
Formulation, implementation and adjustment of profit distribution policy of common shares especially cash dividend policy during the reporting period
√Applicable□ Not applicable
The profit distribution policy in the Articles of Association of the company is as follows:
Article 161
The company highly valued the investors especially the reasonable investment returns for the small and medium investors, and thecompany’s dividend policy is:
(1)Thecompany’s dividend shall be distributed according to the share proportion held by the shareholders. (2) The company can use cash, stock, cash and stock combination or other means for the distribution of dividends that allowed by the laws, but shall give the priority to the cash dividends distribution for profits distribution. If it meets the conditions required for cash dividends distribution, then the company shall adopt the cash dividends for the profits distribution.
(3) If the net profits attributable to shareholders of the parent company realized by the company in the year are positive and the cumulative distributable profits in the end of the year are positive, the company shall distribute dividends.
(4) The profits annually distributed by the company in cash dividends shall be not less than10% of distributable profits realized in the year, and the accumulative profits distributed in cash dividends in the most recent three years shall be not less than30% of the mean distributable profits realized in the most recent three years. When the company carries out the profit distribution, the proportion of the cash dividends shall be not less than20% in the profits distribution.
(5) The company can carry out the interim profit distribution.
During the reporting period, the Company strictly implemented the profit distribution policy in accordance with the relevant provisions of the Articles of Association. From 2016 to 2018, the company's cash dividends accounted for44.85%,56.52% and66.39% of the distributable profits realized in each year respectively. In the future, the company will continue to maintain the continuity, rationality and stability of cash dividends and actively repay its shareholders.
|||
|-|-|
|Special explanation on cash dividend policy||
|Satisfy regulations of General Meeting or requirement of Article||
||Yes|
|of Association||
|Well-defined and clearly dividend standards and proportion|Yes|
|Completed relevant decision-making process and mechanism|Yes|
|Independent directors perform duties completely and play a||
||Yes|
|proper role||
|Minority shareholders have ample opportunities and their||
||Yes|
|legitimate rights and interests are effectively protected||
|Condition and procedures are compliance and transparent while|During the reporting period, the company's cash dividend policy|
||was not adjusted or changed.|
|the cash bonus policy adjusted or changed||

Statement on profit distribution plan and capitalization of capital reserve plan of the Company in nearly three
Guangdong Electric Power Development Co., Ltd. 2018Annual Report years (including the report period)
Thecompany’s dividend distribution plan of the year 2018 was: Based on that the total share capital of the company is 5,250,283,986 shares, for A-share, the company will distribute cash dividends of RMB 0.60 (tax inclusive per 10 shares; for B-share, the company will distribute cash dividends of RMB 0.60 (tax inclusive) per 10 shares.
Thecompany’s dividend distribution plan of the year 2017 was: Based on that the total share capital of the company is 5,250,283,986 shares, for A-share, the company will distribute cash dividends of RMB 0.80 (tax inclusive per 10 shares; for B-share, the company will distribute cash dividends of RMB 0.80 (tax inclusive) per 10 shares.
Thecompany’s dividend distribution plan of the year 2016 was: Based on that the total share capital of the company is 5,250,283,986 shares, for A-share, the company will distribute cash dividends of RMB 0.80 (tax inclusive per 10 shares; for B-share, the company will distribute cash dividends of RMB 0.80 (tax inclusive) per 10 shares.
Cash dividend in latest three years
In RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Net profit||Amount of||||
||||Ratio in net profit||Proportion of||Ratio of the total cash|
|||attributable to||cash||||
||||attributable to the||cash dividends||bonus (other ways|
||Amount for|the over of the||dividends||Amount for||
||||parent company||from cash||included) in net profit|
|||parent company||from cash||||
|Year|cash bonus||in the||offer to|cash bonus|attributableto common|
|||in the||offer to||||
||(tax included)||consolidated||repurchase|(tax included)|stock shareholders of|
|||consolidated||repurchase||||
||||financial||shares of the||listed company contained|
|||financial||shares of the||||
||||statements||funds||in consolidation statement|
|||statements||funds||||
|2018|315,017,039.16|474,461,997|66.39%|0|0 %|315,017,039.16|66.39%|
|2017|420,022,718.88|743,180,431|56.52%|0|0 %|420,022,718.88|56.52%|
|2016|420,022,718.88|936,534,941|44.85%|0|0 %|420,022,718.88|44.85%|

 In the reporting period, both theCompany’s profit and the parentcompany’s retained earnings were positive however not cash dividend distribution proposal has been put forward.
□ Applicable√ Not applicable
II.Profit distribution plan and capitalizing of common reserves plan for the Period
√ Applicable□ Not applicable
|||
|-|-|
|Bonus shares distributed at the rate of _(share)for every 10 shares|0|
|Dividend distributed at the rate of CNY___ for every 10 shares||
||0.60|
|(with tax inclusive)||
|Number of shares converted for every 10 shares (shares)|0|
|Share capital base for the dividend distribution preplan (shares)|5,250,283,986|
|Total cash dividend distributed (with tax inclusive)|315,017,039.16|
|Amount of cash dividend distributed in other way(s) (such as||
||0|
|shares repurchased)||
|Total amount of cash dividend (including other way(s))|315,017,039.16|

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
|||
|-|-|
|Profit available for distribution (CNY)|2,576,482,555|
|Proportion of the cash dividend in the total profit available for||
||100%|
|distribution (%)||
|Particular about cash dividend in the period||
|If the company’s development is at the growth stage with arrangements of significant capital expenditures, the minimum proportion||
|of cash dividend in the profit distribution should reach 20%.||
|Details of proposal of profit distribution preplan or share conversion from capital public reserve||
|In 2018 the base number for the company’s net profits distribution is RMB473,886,117, plus the non-distributed profits of RMB||
|22,102,596,438 in the prior year, thus the upper limit of the distributable profits is RMB2,576,482,555. According to the Articles of||
|Association of the company, draw RMB117,603,557 for the statutory surplus reserve taking for 10% of net profits, draw||
|RMB294,008,893 for the other surplus reserve taking 25% of the total net profits, then the upper limit of the distributable profits to||
|the shareholders is RMB2,164,870,105. The company's 2018 annual profits distribution plan is: Based on that the number of the||
|company’s total share capital at the end of 2018 is 5,250,283,986 shares, planned that the company will distribute cash dividends of||
|RMB0.60 (tax inclusive) to A-share shareholders and the company will distribute cash dividends of RMB 0.60 (tax inclusive) to||
|B-share shareholders, thus the total distribution of profits is RMB 315,017,039.16, the remaining undistributed profits will be||
|carried forward for the future years of profit distribution.||

III. Commitments to fulfill the situation
1.The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of the reporting period made by the company, shareholder, actual controller, acquirer, director, supervisor, senior management personnel and other related parities.
Nil
2.The existence of the company's assets or projects earnings forecasts and earnings reporting period is still in the forecast period, the company has assets or projects meet the original profit forecast made and the reasons explained
□ Applicable√ Not applicable
IV.Particulars about the non-operating occupation of funds by the controlling shareholder
□ Applicable√ Not applicable
No non-operating occupation from controlling shareholders and its related party in the period.
V.Explanation of the Supervisory Committee and Independent Directors (If applicable)on the QualifiedAuditor’s Report Issued by the CPAs.
□ Applicable√ Not applicable
VI.Explain change of the accounting policy, accounting estimate and measurement methods as compared with the financial reporting of last year.
√Applicable□ Not applicable
Changes in Presentation Methods of Financial Statements
According to the requirements of the Notice on Revising and Issuing the Format of General Enterprise Financial
Statements for 2018 (Caikuai[2018] No. 15), the balance sheet will merge "notes receivable" and "accounts
receivable" into newly added "notes receivable and accounts receivable", merge "interest receivable" and
Guangdong Electric Power Development Co., Ltd. 2018Annual Report "dividend receivable" into "other receivables", merge "fixed assets liquidation" into "fixed assets", and merge "engineering materials" into "construction in progress", merge "bills payable" and "accounts payable" into the newly added "bills payable and accounts payable", and merge "special accounts payable" into the "long-term payables"; In the income statement, an additional item entitled "research and development expenses" is added to report expenditures incurred in the process of research and development, and detailed items entitled "interest expenses" and "interest income" are split under the item entitled "financial expenses"; The Company has
conducted a corresponding retrospective application on the comparison data. The change of accounting policy has no effect on the merger, net profit of the company and shareholders' equity.
VII.Explain retrospective restatement due to correction of significant accounting errors in the reporting period
□Applicable√ Not applicable
No major accounting errors within reporting period that needs retrospective restatement for the Company in the period.
VIII.Explain change of the consolidation scope as compared with the financial reporting of last year.√Applicable□ Not applicable
New Subsidiary Establishment of the Year
||||||||||
|-|-|-|-|-|-|-|-|-|
|Name|Business place|Registered address|Nature||Registered||Proportion|Acquired|
||||||capital||(%)||
|Guangdong YudeanZhuhai Offshore WindPower Co., Ltd.|Zhuhai,Guangdong|Jinwan District,Zhuhai, Guangdong|ElectricPower|65,000,000||100.00%||Invested|
|Guangdong YudeanZhencheng IntegratedEnergy Co., Ltd.|Maoming,Guangdong|Maonan District,Maoming, Guangdong|ElectricPower|20,000,000||37.23%||Invested|

IX. Engagement/Disengagement of CPAs
CPAs currently engaged
|||
|-|-|
|Name of the domestic CPAs|PWC Certified Public Accountants (special general partnership)|
|Remuneration for domestic accounting firm (RMB’0000)|333|
|Continuous life of auditing service for domestic accounting firm|3|
|Name of domestic CPA|Wang Bin, Guo Biyu|
|The Continuous Years of Audit Service of Certified Public||
||The Continuous Years of Wang Bin is 3,and Guo Biyu is 1.|
|Accountants of China Certified Public Accountants||

Has the CPAs been changed in the current period
□ Yes√ No
Description of the CPAs, financial adiver or sponsor engaged for intemal control auditing
□Applicable√ Not applicable
Guangdong Electric Power Development Co., Ltd. 2018Annual Report X.Situation of Facing Listing Suspension and Listing Termination after the Disclosure of the Yearly Report□Applicable√ Not applicable
XI.Bankruptcy reorganization
□Applicable√ Not applicable
No bankruptcy reorganization for the Company in reporting period.
XII.Significant lawsuits and arbitrations of the Company
□Applicable√ Not applicable
No major lawsuits and arbitrations of the Company
XIII.Situation of Punishment and Rectification
□Applicable√ Not applicable
No penalty and rectification for the Company in reporting period.
XIV.Credit Condition of the Company and its Controlling Shareholders and Actual Controllers
□Applicable√ Not applicable
XV.Implementation Situation of Stock Incentive Plan of the Company, Employee Stock Ownership Plan or Other Employee Incentive Measures
□Applicable√ Not applicable
During the reporting period, the company has no stock incentive plan, employee stock ownership plan or other employee incentives that have not been implemented.
XVI.Material related transactions
1. Related transactions in connection with daily operation
□Applicable√ Not applicable
Nil
2. Related-party transactions arising from asset acquisition or sold
□Applicable√ Not applicable
No related transactions by assets acquisition and sold for the Company in reporting period.
Guangdong Electric Power Development Co., Ltd. 2018Annual Report 3. Related-party transitions with joint investments
□Applicable√ Not applicable
No main related transactions of joint investment outside for the Company in reporting period.
4. Credits and liabilities with related parties
□Applicable√ Not applicable
Nil
5. Other significant related-party transactions
√ Applicable□ Not applicable
(1)2018 daily related transactions were carried out after examination and approval by 2018 second provisional shareholders' general meeting. Refer to (5) Related transactions of XII. Relationship between related parties and the transactions between them of the Financial Report of this report for details.
(2) The Proposal on the Financial Services such as Making the Application of the Total Loan Limit of RMB 17 Billion and Handling the Deposit Settlement to the Related Party- Guangdong Yudean Finance Co., Ltd by the Company and Some of its Subsidiaries was approved in thecompany’s 2017 annual general shareholder meeting for implementation.
(3)According to the statement of the controlling shareholder Guangdong Energy Group Co., Ltd. on undertaking to fulfill relevant matters, in order to avoid horizontal competition and fulfill its commitment to relevant horizontal competition, the company and Guangdong Energy Group have signed the Equity Trust Agreement, which entrusts the shareholders' rights of the company within the trust scope of Guangdong Energy Group to the Company except the rights of ownership, income and disposition. The expected trust fee is 2.45 million/year, which is reviewed and approved by the second meeting of the ninth board of directors of the Company.
(4) In order to effectively protect the property value of power generation equipment, reduce the risk cost, improve the risk control level, and ensure the smooth progress of production and operation activities, the Company and Guangdong Yudean Property Self-Insurance Co., Ltd., a affiliated party, signed the Insurance Cooperation Framework Agreement in which the self-insurance company provides insurance and risk management services to the Company and its holding subsidiaries. The total cost within the term of the agreement shall not exceed 400 million yuan, which was reviewed and approved by the second meeting of the Ninth Board of Directors of the Company.
(5) In order to further enhance the self-insurance company's ability to undertake insurance business and enhance the enterprise's ability to resist risks, the Company and its affiliated party Guangdong Energy Group jointly increased capital to the self-insurance company, of which the Company increased capital by 98 million yuan according to its49% equity ratio. The above matters were reviewed and approved by the third meeting of the ninth board of directors of the Company and approved by the annual general meeting of shareholders of the Company in 2017.
(6) In order to ensure the safety of capital supply, broaden financing channels, ease the pressure of capital, maintain and promote the smooth progress of production, operation and investment activities, the Company and Guangdong Yudean Financial Leasing Co., Ltd. signed a Financial Leasing Cooperation Framework Agreement with a total financing amount of not more than 5 billion yuan. The above matters were reviewed and approved by the fifth meeting of the ninth board of directors of the Company and approved by the fourth extraordinary general
Guangdong Electric Power Development Co., Ltd. 2018Annual Report meeting of shareholders in 2018.
(7) In order to promote the construction of the Bohe coal power integration project and ensure the capital demand for the protective resumption of the Bohe Power Plant project, Guangdong Yudean Bohe Coal Power Co., Ltd., a wholly-owned subsidiary of the Company, has increased its capital and shares. The Company and Guangdong Energy Group Co., Ltd. have increased their capital to Bohe Company according to the target equity ratio of67%:33%, with a total capital increase of 3.98 billion yuan. The capital increase price is determined on the basis of the net assets evaluation value of Bohe Company recorded and approved by the competent authority. The above matters were reviewed and approved by the second communication meeting of the ninth board of directors in 2018 and approved by the fourth extraordinary general meeting of shareholders in 2018.
(8) According to the Implementation Opinions of the General Office of Guangdong Provincial People's Government on Promoting the Separation and Transfer of "Three Supplies and Property Management " in the Staff Family Areas of Provincial State-owned Enterprises (YFB[2016] No.102), the power supply, water supply and property management in the staff family areas of Zhanjiang Electric Power Co., Ltd. controlled by the Company were separately transferred to Zhanjiang Power Supply Bureau of Guangdong Power Grid Co., Ltd., Zhanjiang Water Investment Group Co., Ltd. and Guangdong Yudean Real Estate Investment Co., Ltd., which was reviewed and approved by the sixth meeting of the ninth Board of Directors of the Company.
(9) According to the actual needs of production, Guangdong Shaoguan Yuejiang Power Generation Co., Ltd., a controlling subsidiary of the Company, accepted Shaoguan Power Plant's land, some buildings and machinery and equipment at a price not higher than the evaluated price of 167.736 million yuan. The final accepted price is subject to the asset evaluation results filed in accordance with relevant regulations and approved by the sixth meeting of the ninth Board of Directors of the Company.
(10) In order to optimize the asset structure of Maoming Zhenneng Thermal Power Co., Ltd. and ensure the continuity of operation, the Company's controlling subsidiary Zhenneng Co., Ltd. absorbed and merged Maoming Power Plant by exchanging its own equity for the entire equity of Maoming Thermal Power Co., Ltd. (hereinafter referred to as "Maoming Power Plant"), and the shareholder of Maoming Power Plant. The above matters have been reviewed and approved by the sixth meeting of the ninth Board of Directors of the Company.
Website for temporary disclosure of the connected transaction
||||||
|-|-|-|-|-|
|Announcement|||Date of disclosure|Website for disclosure|
|Announcement on Related Transactions with Guangdong Yudean PropertyInsurance Captive Co., Ltd . Signing of the Insurance Cooperation FrameworkAgreement|||||
||||January 13,2018|http//www.cninfo.com.cn.|
|Announcement on Related Transaction with Guangdong Yudean Group Co., Ltd.Signing of the Energy Entrusting trusteeship Agreement|||||
||||January 13,2018|http//www.cninfo.com.cn.|
|Estimates announcement of the Daily Related Party Transactions of 2018|||March 24,2018|http//www.cninfo.com.cn.|
|Announcement on the related party Transactions of Guangdong Electric PowerDevelopment Co., Ltd. with Guangdong Yudean Finance Co., Ltd.|||||
||||April 28,2018|http//www.cninfo.com.cn.|
|Announcement on Related Party Transactions to Add Capital to Guangdong|||||
||||April 28,2018|http//www.cninfo.com.cn.|
|Yudean Property Insurance|Captive|Co., Ltd.|||
|Announcement on the related Transactions Concerning Conclusion of FinancingLease Cooperation Framework Agreement with Guangdong Yudean FinancingLeasing Co., Ltd.|||||
||||August 31,2018|http//www.cninfo.com.cn.|
|Announcement of Resolutions of the Second Meeting of the Ninth Board ofDirectors by Correspondence of 2019|||||
||||September 20,2018|http//www.cninfo.com.cn.|
|Announcement on Related Transactions of Guangdong Yudean Bohe Coal &Electricity Co., Ltd.|||||
||||September 20,2018|http//www.cninfo.com.cn.|

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
||||
|-|-|-|
|Announcement on Related Transactions of Guangdong Shaoguan Yuejiang|||
||October 31,2018|http//www.cninfo.com.cn.|
|Power Generation Co., Ltd. Acquisition of partial assets of Shaoguan Power Plant|||
|Announcement of related party transactions of Maoming Zhenneng Thermal|||
||October 31,2018|http//www.cninfo.com.cn.|
|Power Co., Ltd. to merger Maoming Thermal Power Plant Co., Ltd.|||

XVII.Particulars about significant contracts and their fulfillment
1. Particulars about trusteeship, contract and lease
(1) Trusteeship
√ Applicable□Not applicable
Note
According to the instructions of Yudean Group on undertaking to perform related matters, in order to avoid horizontal competition and fulfill the commitments of related horizontal competition, the Company and Yudean Group have signed the Equity Trust Agreement, which entrusts the rights of shareholders of the Company within the trust scope of Yudean Group to the Company except for the rights of ownership, income and disposition. The expected trust fee is 2.45 million/year. The complete report is available as Announcement No.2018-04 with China Securities Journal,Securities Time and at www.cninfo.com.cn dated January 13,2018.
Project that bring profit and losses to the comapny of more than10% of the company's total profit in the reporting period.
□Applicable√ Not applicable
Nil
(2) Contract
□ Applicable√ Not applicable
No any contract for the Company in the reporting period.
(3) Lease
√Applicable□ Not applicable
Note
As a lessee, the Company rented houses and billboards from Yudean Real Estate Company, and the rental fee incurred this year was RMB 8,921,732;
As a lessor, the company leased the houses to Yudean Property Company and Yudean Shipping Company. The rental income for this year was confirmed to be RMB 231,077;
The parent company of the Company, as a leassor, leases the houses and parking spaces to units and individuals such as Guangdong Electric Power Communication and Information Company and Guangdong Electric Power Dispatching Center. The rental income for this year was confirmed to be RMB 3,367,122.
Project which generates profit or loss reaching over10% of total profits of the Company during the Reporting Period
□ Applicable√ Not applicable
There were no leases with a10% or greater impact on theCompany’s gross profit in the Reporting Period.
Guangdong Electric Power Development Co., Ltd. 2018Annual Report 2.Guarantees
√Applicable□ Not applicable
（1）Guarantees
In RMB10,000
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Guarantee of the Company for the controlling subsidiaries (Exclude controlled subsidiaries)|||||||||||
||Relevant||||||||||
|||||Date of||||||Guarantee|
||disclosure||||||||Complete||
|||||happening||Actual||||for|
||date/No. of|Amount of||||||Guarantee|implemen||
|Name of the Company||||(Date of||mount of|Guarantee type|||associated|
||the|Guarantee||||||term|tation or||
|||||signing||guarantee||||parties (Yes|
||guaranteed||||||||not||
|||||agreement)||||||or no)|
||amount||||||||||
|Yunnan Baoshan|||||||||||
|Binlangjiang||||December|||Guaranteeing of||||
||May 24,2007|4,350||||2,030||15 years|No|No|
|Hydroelectricity||||19,2007|||joint liabilities.||||
|Development Co., Ltd.|||||||||||
|Yunnan Baoshan||4,350|||||||||
|Binlangjiang|December|||November|||Guaranteeing of||||
|||||||319||15 years|No|No|
|Hydroelectricity|19,2007|||30,2007|||joint liabilities.||||
|Development Co., Ltd.|||||||||||
|Yunnan Baoshan|||||||||||
|Binlangjiang|||||||Guaranteeing of||||
||May 27,2009|9,367||June 22,2009||5,307||18 years|No|No|
|Hydroelectricity|||||||joint liabilities.||||
|Development Co., Ltd.|||||||||||
|Yunnan Baoshan|||||||||||
|Binlangjiang|||||||Guaranteeing of||||
||May 27,2009|7,250||May 27,2009||2,175||14years|No|No|
|Hydroelectricity|||||||joint liabilities.||||
|Development Co., Ltd.|||||||||||
|Total amount of approved externalguarantee in the report period(A1)||||||Total actually amount of|||||
|||0||||external guarantee in the||-2,436|||
|||||||report period(A2)|||||
|Total amount of approved external||||||Total actually amount of|||||
|guarantee at the end of the report||190,835||||external guarantee at the end||9,831|||
|period(A3)||||||of the report period(A4)|||||
|Guarantee of the company for its subsidiaries|||||||||||
||Related||Date of||||||Complete|Guarantee|
|||Amount|||Actually||||||
|Name of the company|announceme||happening(dat|||||Guarantee|implemen|for related|
|||of|||guarantee||Guarantee type||||
|guaranteed|nt date and||e of signing|||||term|tation or|party(yes or|
|||guarantee|||amount||||||
||no.||agreement)||||||not|no)|
|Zhanjiang WindPower Generation Co.,Ltd.|||||||||||
||April||October||||Guaranteeing of||||
|||18,571.7|||7,479.85|||18 years|No|No|
||29,2009||9,2010||||joint liabilities.||||
|Guangdong ShaoguanYuejiang PowerGeneration Co., Ltd.|||||||||||
||November||January||||Guaranteeing of||||
|||9,000|||2,430|||7 years|No|No|
||16,2013||28,2014||||joint liabilities.||||
|Guangdong ShaoguanYuejiang PowerGeneration Co., Ltd.|||||||||||
||November||January||||Guaranteeing of||||
|||8,100|||1,530|||7 years|No|No|
||16,2013||29,2014||||joint liabilities.||||
|Total of guarantee for subsidiaries||0|||Total of actual guarantee for|||-4,598.97|||

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|approved in the period(B1)||||subsidiaries in the period (B2)||||||
|Total of guarantee for subsidiaries||141,536||Total of actual guarantee for||||||
||||||||11,439.85|||
|approved at period-end(B3)||||subsidiaries at period-end(B4)||||||
|Guarantee of the subsidiaries for the controlling subsidiaries||||||||||
||Relevantdisclosure|||||||||
||||||||||Guarantee|
||||Date of|||||Complete||
||||||||||for|
|Name of the Company|date/No. of|Amount of|happening (Date||Actual mount|Guarantee|Guarantee|implemen||
||||||||||associated|
|guaranteed|the|guarantee|osigning||of guarantee|type|term|tation or||
||||||||||parties (Yes|
||guaranteedamount||agreement)|||||not||
||||||||||or no)|
|The Company’s total guarantee(i.e. total of the first three main items)||||||||||
||||||Total amount of guarantee|||||
|Total guarantee quota approved in|||||actually incurred in the|||||
|||0|||||-7,034.97|||
|the reporting period（A1+B1+C1）|||||reporting period|||||
||||||（A2+B2+C2）|||||
||||||Total balance of the actual|||||
|Total guarantee quota already||||||||||
||||||guarantee at the end of the|||||
|approved at the end of the||332,371|||||21,270.85|||
||||||reporting period|||||
|reporting period（A3+B3+C3）||||||||||
||||||（A4+B4+C4）|||||
|The proportion of the total amount of actually guarantee in the net||||||||||
||||||0.88%|||||
|assets of the Company (that is A4+B4+C4）%||||||||||
|Including：||||||||||
|The debts guarantee amount provided for the||||||||||
|Guaranteed parties whose assets-liability ratio exceed|||||13,791|||||
|70% directly or indirectly（E）||||||||||
|Total guarantee Amount of the abovementioned guarantees||||||||||
||||||13,791|||||
|（D+E+F）||||||||||

Description of the guarantee with complex method
(2) Illegal external guarantee
□ Applicable√ Not applicable
No Illegal external guarantee in the report period.
3.Situation of Entrusting Others for Managing Spot Asset
(1)Situation of Entrusted Finance
□ Applicable√ Not applicable
No any Entrusted Finance for the Company in the reporting period..
（2）Situation of Entrusted Loans
□ Applicable√ Not applicable
No any Entrusted loans for the Company in the reporting period..
Guangdong Electric Power Development Co., Ltd. 2018Annual Report 4. Other significant contract
□ Applicable√ Not applicable
No other significant contracts for the Company in reporting period.
XVIII.Social responsibilities
1. Information of performance of social responsibilities
For details, please see the Social Responsibility Report disclosed by the company on the same day. http://www.cninfo.com.cn
2.Overview of the annual targeted poverty alleviation
(1)Precise poverty plan
The Company will in depth implement the spirits of the Central work Conference on Poverty Alleviation and the Development and General Secretary Xi Jinping's series of important speeches on poverty alleviation and the development, and in accordance with the Guangdong Provincial people's Government's "Opinions on the implementation of Three years Strongly Tackling Difficulties on Precision Poverty Alleviation and Precision Poverty Reduction in the New Time" and the overall plan and arrangement of Guangdong Province's 2016-2018 of new time of "Precision Poverty Alleviation and Precision Poverty Reduction", by adhering the concept of innovation, coordination, green, open and shared development, the Company will strengthen the awareness of the overall situation and the sense of responsibility of “The Rich fist leads latter, and realize the common prosperity”, fully utilize the advantages, carry out the measures of precision poverty alleviation to the village-under-aid, effectively enhance the local “vitality-making” function, focus on boosting thevillage’s collective economic strength, developing the environment and society andpeople’s livelihood, thus to increase the income of poverty-alleviation objects, so as to ensure the accomplishment of various project goals and tasks.
1. Soundly do the work of the poverty alleviation by industry development. Formulate the characteristic industry development for the village-under-aid, implement the “one village, one product” industry promotion action, tap into the resources advantages, precisely select the dominant industry and the dominant products, support the construction of characteristic agricultural bases with high participation of poverty households, support the large agricultural households and professional cooperatives , small and micro enterprises and so forth agricultural operation bodies to speed up the development. Explore the “Internet+ Precision Poverty Alleviation” model, strengthen the training of rural E-commerce merchants in poor villages, and encourage farmers to open online stores for self-development.
2. Explore the poverty alleviation by shares. Promote the income-increase mode of poor village collective economy, allow the financial special poverty alleviation funds and other agricultural-related funds to invest in facilities such as agriculture, farming, industrial parks, hydropower, rural tourism and so forth without changing their use purposes, and the resulting asset income can be converted to shares quantization to poor villages and poor households. Cooperate with the local to explore and promote the rights confirmation of land management with accordingly converting to shares, guide poverty-stricken households, especially those who are incapable of working, to voluntarily transfer the land management rights according to law, and use assets such as land, agricultural facilities, and poverty alleviation funds to price to convert into shares, gaining the operating income according to shares.
3. Cooperation in training and employment. Oriented towards enhancing the ability of the poor to get employment,
Guangdong Electric Power Development Co., Ltd. 2018Annual Report assist to carry out the all kinds of policy training, promote the relevant vocational and technical colleges to recruit children from poor families, thus to enable them to achieve skills to get out of poverty.
4. Improve the infrastructure. Cooperate with the local to improve the traffic conditions and development environment in the village-under-aid; support and help key villages-under-aid of the safe drinking water projects; improve farmland water conservancy facilities; improve sewage facilities; improve the garbage collection and treatment and the cleaning system; improve village cultural and leisure activities, public toilets, landscaping and greening and other facilities; ensure that the relevant indicators meet the provincial standards.
5. Boost the education culture. In coordination with the local education and cultural departments, the Company will vigorously promote the poverty alleviation through education so that all children in the villages-under-aid can receive a good education, increase the education subsidies for poor families, ensure that children from poor households do not drop out of school due to poverty, pay attention to left-behind children, and build left-behind children's service centers.
6. Help to improve the environment. Cooperate with the local to raise funds by multi-channels to help impoverished households complete the renovation of dilapidated buildings and fully complete the task of assisting low-income people in housing reconstruction, assisting in the improvement of domestic garbage disposal, sewage treatment, public toilets and greening and beautification of villages. We will use the entire village as a platform to accelerate the improvement of production and living conditions of poor villages, and steadily promote the construction of beautiful livable villages to realize the new appearance of the old villages.
7. Consolidate the grassroots foundation. Cooperate with the local people to adhere to the Party building and poverty alleviation both at the same time, with the party building to help the poor and with the poverty alleviation to promote the party building. Organize and hold regular meetings of the "two committees" meetings of the villages to study the work of aiding the poor; the assigned cadres should assist the "two committees of the village" to do a good job in organizing the masses, serving the masses, uniting the masses, and enhancing the ability of the cadres of the "two committees" of the poor villages to lead the people out of poverty and run to health;It’s necessary to constantly strengthen the development consciousness, market awareness, teaching ideas, teaching methods and teaching experience of cadres at the grass-root level, mobilizing the grass-root level cadres, strengthen the grass-root organizations, muster up the drive to fight against poverty, and build up “The never-leaving Task Force on Poverty Alleviation”, thus to lay the foundation for the sustainable and healthy development of poor villages.
8. Lead multiple parties to participate in. Guide industries, enterprises, social organizations and individuals to participate in poverty alleviation, and encourage companies to actively undertake social responsibilities, fully stimulate the market's vitality, and help villages to invest in industries, develop training skills, absorb employment, and help the poor with donated money through various forms such as resource development and joint construction of villages and enterprises.
9. Strengthen the publicity for poverty alleviation. Adhere to the guidance of public opinion, comprehensively publicize and accurately interpret the decision-making and deployment of “Precision poverty alleviation and Precision poverty reduction”, strengthen the ideological education and guidance, and strengthen the cadres and the masses' centripetal force and cohesion in poverty alleviation work and the development work. Guide the villagers to change the obsolete customs and habits, stimulate the impoverished people to work hard and develop good enthusiasm, and create a positive atmosphere for self-reliance, hard-working and getting rid of poverty and becoming better off.
(2)Precise poverty alleviation
During the reporting period, the company conscientiously implemented the Guangdong Province's “Precision Poverty Alleviation and Precision Poverty Reduction in Three Years of Strongly Tackling Difficulties” program
Guangdong Electric Power Development Co., Ltd. 2018Annual Report and actively organized manpower, material, and financial resources for poverty alleviation. The subordinate companies namely the Yuejiang Company, Red Bay Company, Zhenneng Company, Zhanjiang Company, Dapu Company, Zhanjiang Wind Power Company actively carried out the precision poverty alleviation work.
.I Counterpart assistance of Yuejiang Company on Mi Xiashui village,Quan’an Town, Nan Xiong City Mixiashui Village plans to relieve 13 households and 42 people from poverty in 2018, including 4 households and 5 people under social security subsidy, 6 households and 26 people off poverty by farming and industry, 3 households and 11 people off povery by employment. In three years, 39 households and 98 people in relative poverty will all be relieved from poverty.
(I) Implementation of industrial support
Implement 2018 Support Measures to Guide Poor Households with Labor Ability to Develop Production Projects in Mixiashui Village, Quan'an Town, Nanxiong City, fullly utilize industrial development platform of Mixiashui Village's Zhongzhi specialized cooperatives for peasant cropping-breeding , mobilize growers (poor and non-poor peasants) to develop high-quality rice leading industries, support Shiwa ecological characteristic aquaculture industry, and participate in the "One Village, One Product" passion fruit planting.
1. Implement support for high quality rice leading industry. Implement the Support Plan for Mixiashui Village, Quan'an Town, Nanxiong City, to Participate in Leading Industry of High-quality Rice Planting, guide growers (poor and non-poor peasants) to join cooperatives, promote the model of "Company+Cooperatives+Growers", and implement order agriculture and planting incentives. Fulfill the high-quality rice purchase agreement signed between Zhongzhi Cooperative and Nanxiong Xiangyi Industry and Trade Co., Ltd. Through the cooperative's unified external sales, the high-quality rice sales market is opened up, the market bargaining power is improved, and the income is increased. A total of 30,000 yuan has been invested to reward cooperative member growers for developing high-quality rice in the sales process, which has driven 16 poor and non-poor growers to develop about 300 mu land for high-quality rice cultivation.
2. Implement support for quasipaa spinosa aquaculture with ecological characteristics . Implement the Support Plan for the Industry Development of Quasipaa Spinosa Aquaculture with Ecological Characteristics in Mixiashui Village, Quan'an Town, Nanxiong City, and adopt the measure of guiding poor households to engage in labor and work, and helping on the building materials by the help units. It invests about 30,000 yuan to support poor households Zhong Liangmin to build a quasipaa spinosa breeding farm, and it also uses Zhongzhi Cooperative as a platform and invests about 13,000 yuan to purchase 130 breeding frogs. The cooperative is entitled to the ownership and 16 poor households with labor ability are entitled to the right of return in proportion. With the centralized foster care and custody mode, the frogs are centrally managed by the poor households Zhong Liangmin, and bred by the 16 poor households with labor ability, who are entitled to the dividend income every year.
3. Implement the policy supporting measure of "Award instead of compensation". Implement the supporting measures in conjunction with "Award instead of compensation" based on the 2018 Support Measures to Guide Poor Households with Labor Ability to Develop Production Projects in Mixiashui Village, Quan'an Town, Nanxiong City. Rice planting is subsidized by 2 packs of formula fertilizer per mu, peanut planting is subsidized by 1 pack of formula fertilizer per mu, live pigs are subsidized by 3 packs of feed per each, and poultry such as chickens, ducks and geese are subsidized by 1 2.5 kg of feed per each. The project has invested 138,916 yuan. It supports poor households to develop the breeding of 180 live pigs and 1584 poultries, and the planting of 98.5 mu rice and 20 mu peanut. Poor households have achieved remarkable results in increasing agricultural income. 4. Actively participate in the industry support project of passion fruit planting base of Nanxiong Quan'an Economic and Trade Development Corporation to drive poor households to plant passion fruit. Nanxiong Quan'an
Guangdong Electric Power Development Co., Ltd. 2018Annual Report Economic and Trade Development Corporation has built a demonstration base of passion fruit cultivation in Mixiashui Village on more than 260 mu of land within Mixiashui Village. According to the number of poor households in Mixiashui Village, contiguous land (according to the standard of 1 mu/household) shall be centrally designated within the scope of the demonstration base as an area for poor households with labor ability to plant passion fruit. Currently, 10 poor households have voluntarily claimed the planting area (mu) for poor households. The support cost is 84,227 yuan, and the head office is responsible for underwriting passion fruit, which can increase 8,000 yuan/household for poor households in the first year.
(II) Implement employment and "three guarantees"
1. Continue to carry out labor transfer employment and entrepreneurship training, and constantly enhance the employment skills of poor households. It helps 9 poor households to work in Pearl River Delta and Nanxiong urban areas to increase their income, and 2 poor households to find jobs in village public welfare posts.
2. Fully implement the "three guarantees" policy. Firstly, carry out the renovation of dilapidated buildings. In 2018, 17 dilapidated buildings are renovated, of which 10 are demolished and rebuilt and 7 are repaired. Secondly, implement the education guarantee. There are 24 students from 18 households in 2018, who established cards for archives, with an enrollment rate of100%. Thirdly, achieve full coverage for medical insurance. It fully implements the medical insurance policy and subsidize 98 people from 39 poor households to purchase urban and rural medical insurance.
3. Well ensure people's livelihood. Implement activities of sending warmth and condolences to poor households. On February 10, 2018, the two poverty alleviation units jointly visited poor households and the village committee in Mixiashui Village, with a total investment of 41,500 yuan. The leaders of the municipal government office and Shaoguan power plant attach great importance to the targeted poverty alleviation work, full implementation of the working mechanism of pairing for support, and coordinate and solve difficult problems on site for multiple times. In 2018, leaders of Shaoguan Power Plant led 12 people to the villages to guide the support work in the villages, helping to solve the difficulties encountered in the help work and effectively promoting the development of the help work.
(3) Information on infrastructure projects
1. Accelerate the construction of farmland and water conservancy projects. Farmland and water conservancy project: Accelerate the construction of high-standard farmland and complete the construction of 1622 mu of high-standard farmland in an all-round way. Drinking water safety project: the design work has been completed and it will be included in the construction plan and construction funds will be arranged.
2. Accelerate the construction of the village road hardening project and complete the 10-kilometer village road hardening project in an all-round way.
3. Accelerate the construction of public service projects. The construction of Health Station and Home Care Public Service Center of Mixiashui Village is completed.
(IV) Promote the construction of a new socialist countryside
1. Establish the villagers' self-government council of villagers' group (natural village), to exercise the autonomous functions for public affairs inside the village and outside the households; Improve the public service capabilities of administrative village, expand public services other than government services, and provide public services such as e-commerce platforms for villagers.
2. Accelerate the construction of clean villages, and build the 9 villages, namely, Shangmen, Longjiangkeng, Chengsi, Liaowu, Yaowu, Liuwu, Shigang, Shijiaowan and Rongshuxia, into clean villages. The construction of new villages in Shijiaowan and Rongshuxia villages has progressed steadily, and the villages look brand-new. II. Counterpart assistance of Red Bay Company on Outian Village, Luoxi Town, Luhe County
On June 1, 2018, the OCT Luoxigu Rural Tourism Project took a trial run. Under the correct leadership of the
Guangdong Electric Power Development Co., Ltd. 2018Annual Report county party committee and county government, Outian village finally embarks on the road of grass-roots partybuilding+enterprise+povertyalleviation+environment. Here is with blooming flowers, green grass, even greener water and mountains. People here can make money in front of their homes. These cannot be achieved without the guidance of Party building.
(I) Party branch conducts carefull organization and thorough deployment to strengthen grass-roots party building and grass-roots management
Firstly, strictly implement the "three meetings and one lesson" system to ensure the normal life of the Party organization. Through the formulation of the "three meetings and one lesson" plan and the activity plan for the theme party day, the Party organization's activities are implemented, making rural Party members clear of their identities and their obligations and enhance the cohesion of the Party organization. Meanwhile, ordinary Party members can also raise their awareness ideologically and keep up with the new situation in the new era. While the Party branch also enables the Party members and the masses to understand the direction, deployment, problems and difficulties of the work in the village through the three meetings and one lesson, which is conducive to brainstorming and joint solution.
Secondly, strictly implement the publicity of party affairs and village affairs. Important matters such as the development of party members, poverty relief, poverty alleviation, and new rural construction are made public, which is conducive to the publicity of government affairs, the promotion of work and the supervision from the masses.
Thirdly, strictly enforce the party member recruitment procedures. Party members should be recruited in strict accordance with the prescribed procedures, detailed understanding of applicants should be strengthened, and serious guidance should be given in standardizing procedures to ensure high-quality recruitment of Party members.
Fourthly, strengthen the construction of Party member activity sites and create a good platform for Party member activities. On the first floor of the village committee office building, a Party member activity room is built according to local conditions, which standardizes the Party building work ledger, creates a strong Party building atmosphere, and facilitates the participation of elderly and sick party members. OCT Luoxigu and OCT jointly set up a workshop for new era peasants to further extend the learning and education of Party members to the peasants. Meanwhile, the learning and education of Party members are further enriched by combining rural tourism, targeted poverty alleviation, agricultural technology and other topics.
Fifthly, implement the activities of "declaring identity, making commitments and implementing them" and actively guide the performance of the pioneer and exemplary role of Party members. Since last year, members of our village branch have been wearing party badges and the image of "Party member households" has been deeply rooted. The commitment column chart is made, 10 responsibility posts and areas for Party members are set up, and Party members' identity awareness, self-determination awareness and pioneering awareness in new rural construction, targeted poverty alleviation, learning and education, disaster relief and resumption of production. (II) Strengthen the construction of grassroots party organizations, and actively carry out targeted poverty alleviation work
Since the poverty alleviation team was stationed in the village in May 2016, the Party branch of Outian Village has held multiple meetings for clarifying the responsibility targets and for full deployment, and it has actively carried out the identification of poor households, with 60 poor households and 260 poor people being identified. Starting from the actual work, the "one file for each household" system has been set up, and the poverty alleviation program of one family and one policy has been formulated. In combination with the study and education for "two studies and one action", Party members are promoted to strengthen their exemplary consciousness. Pairing help for party members is developed for the leading role the Party members in enrichment,
Guangdong Electric Power Development Co., Ltd. 2018Annual Report and to help the Party members become a powerful driving force for household support and targeted poverty alleviation. A plan to relieve poor Party members from poverty s developed, the Party members are vigorously supported in setting up projects to lead enrichment, the support for Party members to lead enrichment and lead the masses to get rich together in terms of projects, funds, technology and information is increased, and the Party members are encouraged and supported to develop characteristic industries, so as to effectively form a strong demonstration radiation effect.
(III) Strengthen the sense of responsibility and mission of ensuring the Party's construction and promoting poverty alleviation, with solid work and advancd plan, and actively push forward the construction of rural projects The Party branch and the poverty alleviation team help Outian Village to set up Outian Business Development Co., Ltd., organize poor households to develop characteristic industries, plant a large number of sweet potatoes and peanuts and vigorously develop the bee breeding, and sign sales contracts with poor households to ensure that the due income of poor households. The investment in Xinhe Industrial Park Targeted Poverty Alleviation Industrial Park Project is made. The training programs for poor people's labor skills and transfer employment have been strenthened, according to the needs of poor people, the trainings on agricultural applicable technology, transfer employment and related content are organized respectively for poor households, which has achieved good results. The construction of village infrastructure has been actively carried out, to build cultural little square and supporting facilities for Shishitang and Outianwei natural villages, build and install lighting equipment for hard roads in front of Outian Primary School, and build landscaping and greening facilities for villages. Outian Village Cultural Activity Center is also under construction and will be put into use in December.
(IV) Strengthen the task of grassroots Party building in the village, determine the development of rural tourism projects, and drive poor households for enrichment through labor.
Outian Party branch has explored many ways for poverty alleviation. It planned to breed chickens, ducks, sheep, and cattle in large quantities, but didn't implement it for its risks and damages to the environment. The branch made a decisive decision to explore a green tourism project.Enterprise+povertyalleviation+environment is the most feasible poverty alleviation mode. Under the proposal and leadership of the branch, a rural tourism project leading group is established, headed by the team leader, to comprehensively coordinate the project introduction, site selection, coordination and active contact with relevant departments of OCT and county. Luo Hongxi, the branch secretary, led the branch committee to well ensure the propaganda and the ideological work of the masses. He urged the village party members to lead by example and solve the problem of land use for tourism projects. Through the joint efforts of party members and cadres, in June 2017, Shenzhen OCT Eastern Group officially settled in Outian Village and launched the OCT Luoxigu rural tourism project. Through the development of the rural tourism industry, the local people's employment is solved, so that the people can earn money locally and the poor households could be driven out of poverty and become rich.
(V) The"Enterprise+PovertyAlleviation+Environment" rural tourism project in OCT Luoxigu is a full manifestation of the core role of grass-roots party organizations
There are about 500 villagers in OUtian Kengzili Village, with less than half an acre of arable land per capita. The poor account for15% of the total population in the village. In these years, it was with weeds everywhere, shrinking traditional agriculture, while other industries lacking, young and middle-aged labor force flowing out, and remaining villagers struggling on the poverty line. The peasants and women here had made almost no money for more than 40 years, and they could hardly feed themselves by the traditional farming economy. The introduction of excellent supporting enterprises from the Overseas Chinese Town in the eastern part of Shenzhen has helped peasants convert their land into shares according to size and grade. The village is turned into a scenic spot, which drives peasants to increase their income and become rich, and realize the transformation of resources into assets, capital into shares and peasants into shareholders. The villagers are both shareholders and employees,
Guangdong Electric Power Development Co., Ltd. 2018Annual Report and their enthusiasm is aroused. In less than a year, the deserted residential buildings were transformed into hakka-featured residential houses and farming villages into agricultural cultural centers. The village's power supply was increased, and signals for internet, television and communication were connected. The number of beekeepers has increased from two to five, and the income has increased several times. Currently, Outian Bookstore, Nongli Shop, Qingmei Bar, Leicha Guild Hall and Handicraft Workshop extend from the village entrance to the valley, introducing tourists gradually into this fresh and modern Peach Garden, which is full of flowers, green water and green hills, singing birds and flora fragrance, and heaven-like changes. The village has changed into a beautiful place. Young laborers who once left the country have returned to their hometown one after another in search of employment and wealth opportunities at home. After the OCT Luoxigu Project in is put into operation, it can drive more residential house or farmhouse development, absorb more people for local employment, and help more people get rid of poverty and become rich.
III. Counterpart assistance of Zhenneng Company on Xinpo Village, Shalang Town, Dianbai District, Maoming City
According to the Maoming municipal party committee's arrangement on targeted poverty alleviation in the new period, the Maoming municipal people's congress standing committee office, Maoming Zheneng Thermal Power Co., Ltd. and Guangdong Development Bank Maoming Branch are linked to assist Xinbei Village, Shalang Town, Dianbai District, with a poverty alleviation team dispatched to the village. Thanks to the joint efforts of the three supporting units, the resident team and the village cadres have worked together to mobilize the broad masses and carry out solid work. New progress and new achievements have been made in all aspects of Xinbei Village's work. (I) The leaders attach great importance to, carefully guide, and work together to tackle targeted poverty alleviation In the past three years, leaders at all levels have attached great importance to it. Li Hongjun, secretary of the municipal party committee and director of the Municipal People's Congress Standing Committee, and Chen Xiaofeng, secretary of the municipal party committee and Dianbai District Party Committee, led teams to the village to investigate and inspect the targeted poverty alleviation work. The Standing Committee of the Municipal People's Congress has held several meetings of directors to study the targeted poverty alleviation work. The three supporting units have held joint meetings from time to time to study and solve major problems in poverty alleviation work and decide on major issues. Liang Luoyue, executive deputy director of the Standing Committee of the Municipal People's Congress, has attached great importance to the poverty alleviation work in Xinbei, visited Xinbei Village many times for investigation and guidance, to put forward opinions, study and solve problems in time and promote the work; Lin Zhenguang, deputy director in charge, has led the team many times to the village for investigation and guidance, coordinating relevant units to give financial and policy support, and providing front-line supervision to promote targeted poverty alleviation work; Other leaders and cadres of the Municipal People's Congress Standing Committee often pay their condolences to the families who have been linked for the supporting; Main leaders and those responsible for the support work of Maoming Zhenneng Thermal Power Co., Ltd. and Guangdong Development Bank Maoming Branch also have visited the village for many times for investigation and offering condolences; The town's main leaders, Luo Liang, Xie Jingji and Ou Shiji, have visited the village many times for investigation and guidance, studied and solved the specific problems and practical difficulties encountered in the targeted poverty alleviation work. Meanwhile, in order to make the targeted poverty alleviation policy widely known in the new era, the villagers in Xinbei Village are expected to be familiar with the targed poverty alleviation policy and actively participate in and support the poverty alleviation work by banners, publicity leaflets, party members' meetings and villagers' representative meetings, so as to widely publicize the targeted poverty alleviation policy and interprete the targeted poverty alleviation policy. (II) Entry into the village and household for careful investigation, to ensure accurate establishment of cards for archives
Guangdong Electric Power Development Co., Ltd. 2018Annual Report Targeted poverty alleviation is an important political task. The first step is to accurately identify poor households, which is also the most foundamental work. The poverty alleviation team in the village has firmly grasped this key and carried out the accurate identification work. Firstly, study hard and get familiar with the working methods of investigation as soon as possible. After entering and connecting with the village at the end of April 2016, it has earnestly studied the relevant documents of the central, provincial and municipal committees on targeted poverty alleviation and poverty relief in the new era, deeply understood the spirit of the documents, defined the work objectives, clarified the work ideas, quickly became familiar with the poverty alleviation work process, the criteria for poor households and the work methods for accurately identifying poor households. Secondly, enter the village as soon as possible and carry out investigations in an orderly manner. In the middle of May, it entered the village and visited households together with the cadres of the village's two committees, carried out household-by-household investigations. In strict accordance with the criteria for poor households and the identification method of "four-check, five-priority, six-in, seven-out", they focused on checking the household population, labor force, source of income, housing, furniture and household appliances, vehicles, causes of poverty, etc. to ensure no person or household left, and to resolutely keep those who did not meet the criteria off the targeted poverty alleviation list. Thirdly, conduct review as soon as possible, ensure its publicity while making adjustment. In early June, in order to ensure the authenticity and reliability of the poor household on-door inspection, a villagers' representative evaluation meeting on targeted poverty alleviation was held in Xinbei Village for the new era, and the situation for each household was introduced and the evaluation was conducted. After the evaluation, the result was be publicized and the newly applied villagers were investigated and verified again. By the end of August, a total of 162 people from 49 poor households in Xinbei Village had been identified and no complaints had been received from the masses, which lays a solid foundation for accurate assistance. By the end of December of that year, after review, assistance to 3 households with 8 people are terminated and 1 died , and 153 people from 46 poor households are finally determined. Fourthly, to pay close attention to the planning and ensure the accuracy of the policy implementation. According to the situation of each poor household and the wishes of the poor households, a three-year support plan and an annual support plan are tailor-made for them, so as to ensure that the measures formulated are scientific and reasonable and that after the support, each poor household can achieve "two relieves from worries and three guarantees". Fifthly, establish files in a timely manner and manage the poor households dynamically. In strict accordance with the requirements of establishment of cards for archives, the published information of poor households shall be accurately entered into the "New Period Targeted Poverty Alleviation Information Platform", the system data shall be updated regularly, and the information of changes of poor households shall be entered in a timely manner. Meanwhile, close attention shall be paid to the "one file for each family" of poor households and various paper documents, and dynamic management of poor households shall be implemented.
(III) Steady and accurate execution for full implementation of targeted poverty alleviation measures
1. Support of income-increasing projects is in place. Adhere to the principle of "different method for each household", solicit opinions from poor households extensively, and implement income-increasing projects combining "short-term, medium-term and long-term", that is, short-term project is family vegetable basket project, medium-term project is leek industrial park project, and long-term project is photovoltaic power generation project.
Firstly, implement the family vegetable basket project. It is mainly to mobilize and assist poor households to carry out decentralized planting and breeding. The supporting units set up a subsidy fund to provide seedlings and means of production, and to assist them in selling agricultural products. In 2017, the support units supported more than 60,000 yuan, helped 6 households to build standard chicken houses, distributed 1,760 Xinyi Huaixiang baby chicks and feed to 16 poor households, and in 2018, the supporting units supported 30,000 yuan, provided 1,000
Guangdong Electric Power Development Co., Ltd. 2018Annual Report baby chicks to 12 poor households, meanwhile, conducted technical training, signed a guaranteed recovery agreement, and assisted poor households in selling the product chickens, thus increasing the income of poor households by more than 80,000 yuan; In addition, poor households have raised cattle, pigs, vegetables and rice according to their own conditions, thus increasing their income through active production development.
Secondly, construct leek industrial park. The model of"company+cooperative+poor households" is adopted. The local agricultural planting company and the open source planting professional cooperative (composed of poor households with labor force, referred to as "open source cooperative") in Dianbai District of Maoming City will jointly invest a total of 500,000 yuan from the special financial funds for poor households and the support funds of supporting units to build a 60-mu leek planting base. The company will be responsible for the subsequent investment, with a cooperation period of 7 years (2017-2023), and an annual fixed dividend of 132,000 yuan in the first 5 years and 42,000 yuan in the following 2 years. The dividend in 2017 is 600 yuan/person. At the end of 2018, transformation and upgrading are carried out, and guava is initially replanted to further alleviate poverty and increase income.
Thirdly, build photovoltaic power stations for poverty alleviation. The model of"company+cooperative+poor households" is adopted. The photovoltaic company and open source cooperative cooperate to invest the financial co-ordination funds of poor households into shares. A 200KW photovoltaic power station for poverty alleviation will be built on the roof of Xinbei Village committee office, the roof of Xinbei Primary School teaching building and the back mountain. Both parties invest 1 million yuan each and the cooperation period is 20 years. The project started construction in late October 2017 and has been fully connected to the grid for normal power generation by July 20, 2018. A fixed dividend pattern is adopted, with 160,000 yuan per year from 2017 to 2022, and 100,000 yuan per year from 2023 to 2037. 600 yuan was distributed to poor households with labor force in 2018, and 1000 yuan is expected to be distributed to poor households with labor force in 2019 to 2020. From 2021 onwards, the village committee will handle it according to the targeted poverty alleviation policy at that time.
Moreover, in 2018, 509.63 million yuan of overall financial fund for poor households was invested in the construction of distributed photovoltaic power generation project by Dianbai Water Investment Group. The cooperation period is 20 years and the annual fixed dividend model is adopted. Regardless of the profit and loss of the project,7% of the total investment (35674.1 yuan) was distributed to the village committee, and in the first five years (2019-2023) it will be distributed to poor households with labor force (122 people from 29 households). Since 2024 (the next 15 years), when the number of poor people is obviously decreased, it will be subject to the poverty alleviation policy. The village committee will propose a plan to change the dividend, which will be submitted to the villager representative meeting for approval and implemented after being submitted to the people's government of Shalang Town for approval.
2. Transfer employment is in place. Actively mobilize poor family members with working ability to work to increase family income. Currently, 50 people have gone out to work or work nearby.
3. Renovation of dilapidated houses is in place. In Xinbei Village, 21 poor households have applied for renovation of dilapidated houses. The stationed team took the initiative to communicate and negotiate with relevant departments, applied for the renovation index, convened mobilization meeting for poor households, and carried out renovation of dilapidated houses in strict accordance with the requirements. A total of 20 households were renovated in 2016-2018. Poor household Lan Zhaotao is included into 2019 construction list.
4. Education subsidies are in place. In 2016, 39 students from poor families were helped to apply for educational subsidies for the 2016-2017 academic year, which were implemented in place; In 2017, 40 students from poor families were helped to apply for educational subsidies for the academic year 2017-2018, which were implemented in place; In November 2018, 44 students from poor families were helped to apply for education subsidy for the 2018-2019 academic year as required. The examination and submission have been completed and
Guangdong Electric Power Development Co., Ltd. 2018Annual Report it is expected that the subsidy will be allocated in the near future.
5. Guarantee policies are in place. Assist the social security department to purchase medical insurance for all poor households, to improve the treatment of lowest living security and five guarantees, and to truly realize the full coverage of insurance; Assist poor households suffering from serious illness to apply for medical assistance to reduce their economic burden; Offer condolences and holiday greetings to poor families before the Spring Festival, July 1 and Mid-Autumn Festival.
(IV) Led by Party building, with foundation strengthened, strive to play the role of a fighting fortress.
The head of the village-based task force also serves as the first secretary, who can actively well ensure the party building, fully utilize the role of grass-roots party organizations and promote the steady development of various tasks.
1. Focus on the study and improve quality. Lead all Party members in the Party branch to earnestly study the spirit of the Party's 19th Congress, promote the normalization and institutionalization of "two studies and one action" learning education, lead in teaching Party classes, implement the "three meetings and one lesson" system, strengthen ideals and beliefs, maintain the advancement of the team, and improve the quality of all Party members.
2. Focus on the team and enhance service. Assist the town party committee in completing the general election of "two committees" in Xinbei Village, and adjust the election of 2 new cadres and add 2 new village cadres as candidates; Organize the village "two committees" team to carefully study laws and regulations, mass work methods and business knowledge, and enhance the team's service ability and level.
3. Focus work style and build prestige. Always pay close attention to the construction of team work style, strictly implement the eight central regulations, lead in opposing "four ill styles", implement the financial disclosure of party and village affairs, and eliminate corruption in work, especially in the targeted poverty alleviation work, so that the cadres of the "two committees" in the village will have higher prestige among the masses.
IV. Counterpart assistance of Zhanjiang Company on Waiyuan Village, Nanxing Town, Leizhou City In 2018, under the unified arrangement and leadership of Zhanjiang and Leizhou Poverty Alleviation Offices, the Company earnestly implemented the relevant regulations of provinces, cities, counties and towns. Under the high attention and careful guidance of leaders at all levels, the poverty alleviation staff worked hard and actively organized human, material and financial resources to invest in the poverty alleviation work: Invested 48,000 yuan to complete the Spring Festival condolences to poor households in 2018; Invested 38,000 yuan to support two poor households (Wang Keze and Wang Guangqiu) to rebuild their dilapidated houses; Helped poor households to buy chemical fertilizers (with 120,000 yuan national financial funds) for agricultural production, to improve crop yields and increase economic income; In view of the fact that there was no basketball court for the students of Huangpai Primary School of Waiyuan village committee, it invested 50,000 yuan to build the basketball court for Huangpai Primary School; Assisted Zhanjiang Meteorological Bureau in purchasing desks for Huangpai Primary School student; Participate in the "three clean-up, three demolition, three remediation" activities organized by Nanxing Town; Completed the reporting of newly added poor households and terminated poor households; Organized poor households with work ability to invest in Guangdong Yujie Agro-ecological Development Co., Ltd (with 360,000 yuan national financial fund); And completed investment in photovoltaic power generation projects for poor households (with 1.41 million yuan national financial funds).
V. Counterpart assistance of Dapu Company on Xiamu Village, Fenglang Town, Dapu County, Meizhou City
In 2018, Taipu Power Generation Company continued to send its first secretary assist Xiamu Village, Fenglang Town, dapu county City, Meizhou City, and carried out the following support work together with Jianghai
Guangdong Electric Power Development Co., Ltd. 2018Annual Report Sub-district Office of Haizhu District of Guangzhou City:
1. Solid Party building at the grass-roots level: It invested 44,500 yuan in the construction of the activity room for new members of the village committee, purchased a number of office desks and chairs, and ensured to display the publicity column for Party building and system on the wall;
2. It carried out commemorative activities to celebrate the 97th anniversary of the founding of the Party, offered condolences to 15 60-year-old Party members, and organized Party members to visit and study in Sanheba Campaign Memorial Hall, a red education base, and Beitang Village, Xihe Town, a demonstration site for new rural construction;
3. Well ensure the cultural support: The cultural activity room of the Dankeng group was completed in 2018 with a contract of 250,000 yuan (the project is under financial review);
4. 21,600 yuan is invested for the Spring Festival condolences of 72 poor households;
5. 485,500 yuan is invested in the construction of Xiamu Village Party and Mass Activities Center. The project covers an area of about 1,000 square meters, including Party and Mass Activities Square and Cultural Corridor. It was completed and put into use in December 2018 and is currently being submitted to the Financial Review; 6. As of December 31, 2018, through dynamic management, 137 poor people from 67 households out of the total 144 people from 70 households in the village have achieved pre-poverty alleviation.
VI. Counterpart assistance of Zhanjiang Wind Power Co., Ltd. on Houhai Village, Xinliao Town, Xuwen County
Under the strong leadership of the superior party committee, the strong cooperation of the village "two committees" cadres and the efforts of the stationed team, Zhanjiang Wind Power Company continued to carry out targeted poverty alleviation work in Houhai Village, Xinliao Town, Xuwen County, Zhanjiang City in 2018. It worked closely with the Second Affiliated Hospital of Guangdong Medical University, the SPIC Xuwen Wind Power Company and other supporting units, and actively implemented supporting projects such as asset support, industrial support, employment support, holiday greetings, etc. Through innovative measures such as household filing, dynamic control and one policy for each household, the accuracy and comprehensiveness of poverty alleviation work are effectively improved. As of December 2018, 337 people from 90 poor households in Houhai Village had been relieved from poverty, accounting for91.58% of the original poverty in Houhai Village.
(3)Targeted Poverty Alleviation Result
||||
|-|-|-|
|Index|Measurement unit|Quantity / Status|
|I. General situation|——|——|
|Thereinto： 1.Capital|In RMB 10,000|497.09|
|2. Cash supplies|In RMB 10,000|8.89|
|3. Ecological protection to poverty alleviation|person|739|
|II.Breakdown Input|——|——|
|1. Poverty alleviation by industrial development|——|——|
|Among them: 1.1 Project type of poverty||Agricultural and forestry industry poverty alleviation a;|
||——||
|alleviation by industrial development||assets income poverty alleviation|
|1.2 Number of poverty alleviation projects in|||
||a|12|
|industrial development|||
|1.3 Investment amount of industrial|||
||In RMB 10,000|266.63|
|development poverty alleviation project|||
|1.4 The number of poverty population who had|||
||person|269|
|been helped to create a file|||
|2. Poverty alleviation by transfer employment|——|——|

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
||||
|-|-|-|
|Among them: 2.1 Investment amount of|||
||In RMB 10,000|0.27|
|vocational skill training|||
|2.2 Number of people of vocational skill training|person|54|
|2.3 Quantity of employment of poverty|||
||person|46|
|population who had been helped create a file|||
|3. Poverty alleviation by relocation|——|——|
|4. Educational poverty alleviation|person|0|
|Among them: 4.1 Investment amount of|||
||——|——|
|subsidizing poverty students|||
|4.2 Number of subsidized poverty students|In RMB 10,000|28.56|
|4.3 Improving the investment amount for|||
||person|80|
|education in poor areas|||
|5. Health poverty alleviation|In RMB 10,000|0.3|
|Among them: 5.1 Investment amount for|||
||——|——|
|medical and health resources in poor areas|||
|6. Ecological protection poverty alleviation|In RMB 10,000|2.16|
|7. Guarantee of all the details|——|——|
|8. Social poverty alleviation|——|——|
|8.2 Investment amount of fixed-point poverty|||
||——|——|
|alleviation|||
|9. Other projects|——|——|
|Among them: 9.1 Number of project|a|9|
|9.2 Investment amount|In RMB 10,000|95.61|
|9.3 Number of poverty population who had been|||
||person|63|
|helped to create a file|||
|III. Awards (Content and level)|——|——|

（4）Subsequent targeted poverty alleviation program
The Company will continue to implement the relevant provincial, municipal and county regulations on targeted poverty alleviation, adjust measures to local conditions, and explore an accurate path for targeted poverty alleviation. Firstly, it will continue to strengthen the Party's style of work, promote the "two committees" in the villages to strengthen ideological construction, and consolidate the results of the "two studies and one action" learning activities. Secondly, it will improve its ability by learning, continue to learn the spirit of Comrade Xi Jinping's series of important speeches, the spirit of targeted poverty alleviation documents, the relevant business knowledge of poverty alleviation, the ways and means of dealing with the masses, and further improve its ability to solve problems for the masses. Thirdly, prioritize the tasks and promote their implementation. All poverty alleviation working groups will continue to focus on the core of targeted poverty alleviation, seize the core work of poverty alleviation and carry out and implement relevant work in an all-round and coordinated manner. For poverty alleviation projects and village collective projects that are included in the establishment of cards for archives, the support of relevant departments is actively sought in accordance with the established objectives and tasks, to assist the villages and poor households in implementing poverty alleviation projects, and ensure the full completion of poverty alleviation objectives and tasks in a pragmatic manner.
Guangdong Electric Power Development Co., Ltd. 2018Annual Report 3. Information on environmental protection
Listed company and its subsidiary belongs to the key pollution enterprise listed by Department of Environmental Protection
Yes
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Main|||||||||
|||||Emission||||Verified||
|Company or|pollutant||Emissi||Emission||Total||Excessive|
|||||port||Implemented pollutant||total||
|subsidiary|and specific|Emission way|on port||concentration||emission||emission|
|||||distribution||emission standards||emission||
|name|pollutant||number||(mg/Nm3)||(t)||condition|
|||||condition||||(t)||
||name|||||||||
|||||||Emission Standard of||||
|||Concentrated||||||||
|||||||Air Pollutants for||||
|Shajiao A||emission||Within the||||Not||
||Smoke||2||1.73|Thermal Power Plants|22.868||No|
|power plant||through||factory||||approved||
|||||||(GB13223-2011)||||
|||chimney||||||||
|||||||special emission limit||||
|||||||Emission Standard of||||
|||Concentrated||||||||
|||||||Air Pollutants for||||
|Shajiao A||emission||Within the||||Not||
||SO2||2||15.86|Thermal Power Plants|230.51||No|
|power plant||through||factory||||approved||
|||||||(GB13223-2011)||||
|||chimney||||||||
|||||||special emission limit||||
|||||||Emission Standard of||||
|||Concentrated||||||||
|||||||Air Pollutants for||||
|Shajiao A||emission||Within the||||Not||
||NOX||2||27.18|Thermal Power Plants|381.68||No|
|power plant||through||factory||||approved||
|||||||(GB13223-2011)||||
|||chimney||||||||
|||||||special emission limit||||
|||||||Emission Standard of||||
|Guangdong||Concentrated||||||||
|||||||Air Pollutants for||||
|Dapu Power||emission||Within the||||||
||Smoke||2||2.24|Thermal Power Plants|28.891|593|No|
|Generation||through||factory||||||
|||||||(GB13223-2011)||||
|Co., Ltd.||chimney||||||||
|||||||special emission limit||||
|||||||Emission Standard of||||
|Guangdong||Concentrated||||||||
|||||||Air Pollutants for||||
|Dapu Power||emission||Within the||||||
||SO2||2||10.46|Thermal Power Plants|134.827|1447|No|
|Generation||through||factory||||||
|||||||(GB13223-2011)||||
|Co., Ltd.||chimney||||||||
|||||||special emission limit||||
|||||||Emission Standard of||||
|Guangdong||Concentrated||||||||
|||||||Air Pollutants for||||
|Dapu Power||emission||Within the||||||
||NOX||2||27.41|Thermal Power Plants|353.262|1502|No|
|Generation||through||factory||||||
|||||||(GB13223-2011)||||
|Co., Ltd.||chimney||||||||
|||||||special emission limit||||
|||||||Emission Standard of||||
|Zhanjiang||Concentrated||||||||
|||||||Air Pollutants for||||
|Zhongyue||emission||Within the||||||
||Smoke||2||1.86|Thermal Power Plants|35.27|480|No|
|Enerty Co.,||through||factory||||||
|||||||(GB13223-2011)||||
|Ltd.||chimney||||||||
|||||||special emission limit||||
|||||||Emission Standard of||||
|Zhanjiang||Concentrated||||||||
|||||||Air Pollutants for||||
|Zhongyue||emission||Within the||||||
||SO2||2||14.31|Thermal Power Plants|271.66|1200|No|
|Enerty Co.,||through||factory||||||
|||||||(GB13223-2011)||||
|Ltd.||chimney||||||||
|||||||special emission limit||||
|Zhanjiang||Concentrated||Within the||Emission Standard of||||
||NOX||2||27.71||525.92|1587|No|
|Zhongyue||emission||factory||Air Pollutants for||||

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Main|||||||||
|||||Emission||||Verified||
|Company or|pollutant||Emissi||Emission||Total||Excessive|
|||||port||Implemented pollutant||total||
|subsidiary|and specific|Emission way|on port||concentration||emission||emission|
|||||distribution||emission standards||emission||
|name|pollutant||number||(mg/Nm3)||(t)||condition|
|||||condition||||(t)||
||name|||||||||
|Enerty Co.,||through||||Thermal Power Plants||||
|Ltd.||chimney||||(GB13223-2011)||||
|||||||special emission limit||||
|Guangdong||||||Emission Standard of||||
|||Concentrated|||330MW|||||
|Shaoguan||||||Air Pollutants for||||
|||emission||Within the|unit：9.28；|||||
|Yujiang Power|Smoke||2|||Thermal Power Plants|76．7|717.78|No|
|||through||factory|600MW|||||
|Generation||||||(GB13223-2011)||||
|||chimney|||unit：1.11|||||
|Co., Ltd.||||||special emission limit||||
|Guangdong||||||Emission Standard of||||
|||Concentrated|||330MWUnit|||||
|Shaoguan||||||Air Pollutants for||||
|||emission||Within the|：98.53；|||||
|Yujiang Power|SO2||2|||Thermal Power Plants|858.31|2303.55|No|
|||through||factory|600MWUnit|||||
|Generation||||||(GB13223-2011)||||
|||chimney|||：14.46|||||
|Co., Ltd.||||||special emission limit||||
|Guangdong||||||Emission Standard of||||
|||Concentrated|||330MWUnit|||||
|Shaoguan||||||Air Pollutants for||||
|||emission||Within the|：116.11；|||||
|Yujiang Power|NOX||2|||Thermal Power Plants|1263.06|2809.07|No|
|||through||factory|600MW|||||
|Generation||||||(GB13223-2011)||||
|||chimney|||Unit：32.46|||||
|Co., Ltd.||||||special emission limit||||
|||||||Emission Standard of||||
|||Concentrated||||||||
|Zhanjiang||||||Air Pollutants for||||
|||emission||Within the||||||
|Electric Power|Smoke||2||2|Thermal Power Plants|47.547|47.55|No|
|||through||factory||||||
|Co., Ltd.||||||(GB13223-2011)||||
|||chimney||||||||
|||||||special emission limit||||
|||||||Emission Standard of||||
|||Concentrated||||||||
|Zhanjiang||||||Air Pollutants for||||
|||emission||Within the||||||
|Electric Power|SO2||2||9|Thermal Power Plants|256.468|256.467|No|
|||through||factory||||||
|Co., Ltd.||||||(GB13223-2011)||||
|||chimney||||||||
|||||||special emission limit||||
|||||||Emission Standard of||||
|||Concentrated||||||||
|Zhanjiang||||||Air Pollutants for||||
|||emission||Within the||||||
|Electric Power|NOX||2||27|Thermal Power Plants|757.107|757.108|No|
|||through||factory||||||
|Co., Ltd.||||||(GB13223-2011)||||
|||chimney||||||||
|||||||special emission limit||||
||||||Unit 1 #：|Emission Standard of||||
|Guangdong||Concentrated||||||||
||||||2.79；unit 2|Air Pollutants for||||
|Yudean Jinghai||emission||Within the||||||
||Smoke||2||#：2.31；unit|Thermal Power Plants|152.39|1770|No|
|Power General||through||factory||||||
||||||3 #：2.72；unit|(GB13223-2011)||||
|Co., Ltd.||chimney||||||||
||||||4#：3.13。|special emission limit||||
||||||Unit 1 #：|||||
|||||||Emission Standard of||||
|Guangdong||Concentrated|||14.79；unit 2|||||
|||||||Air Pollutants for||||
|Yudean Jinghai||emission||Within the|#：17.49；unit|||||
||SO2||2|||Thermal Power Plants|842.35|6502|No|
|Power General||through||factory|3#：13.65；|||||
|||||||(GB13223-2011)||||
|Co., Ltd.||chimney|||unit 4 #：|||||
|||||||special emission limit||||
||||||15.22。|||||
||||||Unit 1#：|Emission Standard of||||
|Guangdong||Concentrated||||||||
||||||32.98；unit|Air Pollutants for||||
|Yudean Jinghai||emission||Within the||||||
||NOX||2||2#：32.4；unit|Thermal Power Plants|1817.07|4687|No|
|Power General||through||factory||||||
||||||3 #：30.55；|(GB13223-2011)||||
|Co., Ltd.||chimney||||||||
||||||unit 4#：35.43|special emission limit||||

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Main|||||||||
|||||Emission||||Verified||
|Company or|pollutant||Emissi||Emission||Total||Excessive|
|||||port||Implemented pollutant||total||
|subsidiary|and specific|Emission way|on port||concentration||emission||emission|
|||||distribution||emission standards||emission||
|name|pollutant||number||(mg/Nm3)||(t)||condition|
|||||condition||||(t)||
||name|||||||||
|||||||Emission Standard of||||
|Guangdong||Concentrated||||||||
|||||||Air Pollutants for||||
|Red Bay Power||emission||Within the||||Not||
||Smoke||2||3.34|Thermal Power Plants|135.5||No|
|General Co.,||through||factory||||approved||
|||||||(GB13223-2011)||||
|Ltd.||chimney||||||||
|||||||special emission limit||||
|||||||Emission Standard of||||
|Guangdong||Concentrated||||||||
|||||||Air Pollutants for||||
|Red Bay Power||emission||Within the||||Not||
||SO2||2||8.98|Thermal Power Plants|384.1||No|
|General Co.,||through||factory||||approved||
|||||||(GB13223-2011)||||
|Ltd.||chimney||||||||
|||||||special emission limit||||
|||||||Emission Standard of||||
|Guangdong||Concentrated||||||||
|||||||Air Pollutants for||||
|Red Bay Power||emission||Within the||||Not||
||NOX||2||32.83|Thermal Power Plants|1368.66||No|
|General Co.,||through||factory||||approved||
|||||||(GB13223-2011)||||
|Ltd.||chimney||||||||
|||||||special emission limit||||
|||||||Emission Standard of||||
|Maoming||Concentrated||||||||
|||||||Air Pollutants for||||
|Zhenneng||emission||Within the||||||
||Smoke||2||1.92|Thermal Power Plants|32.13|168.12|No|
|thermal power||through||factory||||||
|||||||(GB13223-2011)||||
|Co., Ltd.||chimney||||||||
|||||||special emission limit||||
|||||||Emission Standard of||||
|Maoming||Concentrated||||||||
|||||||Air Pollutants for||||
|Zhenneng||emission||Within the||||||
||SO2||2||12.43|Thermal Power Plants|155.78|385.51|No|
|thermal power||through||factory||||||
|||||||(GB13223-2011)||||
|Co., Ltd.||chimney||||||||
|||||||special emission limit||||
|||||||Emission Standard of||||
|Maoming||Concentrated||||||||
|||||||Air Pollutants for||||
|Zhenneng||emission||Within the||||||
||NOX||2||30.44|Thermal Power Plants|528.69|689.58|No|
|thermal power||through||factory||||||
|||||||(GB13223-2011)||||
|Co., Ltd.||chimney||||||||
|||||||special emission limit||||
|||||||Emission Standard of||||
|||Concentrated||||||||
|||||||Air Pollutants for||||
|Pinghai Power||emission||Within the||||||
||Smoke||2||1.78|Thermal Power Plants|55.18|700|No|
|plant||through||factory||||||
|||||||(GB13223-2011)||||
|||chimney||||||||
|||||||special emission limit||||
|||||||Emission Standard of||||
|||Concentrated||||||||
|||||||Air Pollutants for||||
|Pinghai Power||emission||Within the||||||
||SO2||2||22.60|Thermal Power Plants|685.08|1750|No|
|plant||through||factory||||||
|||||||(GB13223-2011)||||
|||chimney||||||||
|||||||special emission limit||||
|||||||Emission Standard of||||
|||Concentrated||||||||
|||||||Air Pollutants for||||
|Pinghai Power||emission||Within the||||||
||NOX||2||43.52|Thermal Power Plants|1118.05|3500|No|
|plant||through||factory||||||
|||||||(GB13223-2011)||||
|||chimney||||||||
|||||||special emission limit||||
|Guangdong||||||Emission Standard of||||
|||Concentrated||||||||
|||||Within the||||Not||
|Guohua|Smoke||6||1.8|Air Pollutants for|151||No|
|||emission||||||||
|Yudean Power||||factory||Thermal Power Plants||approved||
|||through||||||||
|Generation||||||(GB13223-2011)||||

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Main|||||||||
|||||Emission||||Verified||
|Company or|pollutant||Emissi||Emission||Total||Excessive|
|||||port||Implemented pollutant||total||
|subsidiary|and specific|Emission way|on port||concentration||emission||emission|
|||||distribution||emission standards||emission||
|name|pollutant||number||(mg/Nm3)||(t)||condition|
|||||condition||||(t)||
||name|||||||||
|Co., Ltd.||chimney||||special emission limit||||
|Guangdong||||||Emission Standard of||||
|||Concentrated||||||||
|Guohua||||||Air Pollutants for||||
|||emission||Within the||||Not||
|Yudean Power|SO2||6||14.6|Thermal Power Plants|1230||No|
|||through||factory||||approved||
|Generation||||||(GB13223-2011)||||
|||chimney||||||||
|Co., Ltd.||||||special emission limit||||
|Guangdong||||||Emission Standard of||||
|||Concentrated||||||||
|Guohua||||||Air Pollutants for||||
|||emission||Within the||||Not||
|Yudean Power|NOX||6||30|Thermal Power Plants|2524||No|
|||through||factory||||approved||
|Generation||||||(GB13223-2011)||||
|||chimney||||||||
|Co., Ltd.||||||special emission limit||||
|||||||Emission Standard of||||
|||Concentrated||||||||
|||||||Air Pollutants for||||
|Qianwan LNG||emission||Within the||||||
||NOX||3||31.65|Thermal Power Plants|491|1312.5|No|
|Power Plant||through||factory||||||
|||||||(GB13223-2011)||||
|||chimney||||||||
|||||||special emission limit||||
|||||||Emission Standard of||||
|||Concentrated||||||||
|Huizhou||||||Air Pollutants for||||
|||emission||Within the||||||
|LNG Power|NOX||5||34.35|Thermal Power Plants|1008|2033|No|
|||through||factory||||||
|Plant||||||(GB13223-2011)||||
|||chimney||||||||
|||||||special emission limit||||

Prevention and control of pollution facilities construction and operation
Within the report period, the company responds positively to requirements of the newest environmental protection policies, strengthens the operation adjustment of the desulfurization and denitrification system and equipment maintenance management, intensifies the transformation of the energy-saving technologies and dust-cleaning equipment, improves the equipment operation efficiency, decrease the smoke and dust discharging concentration and guarantee compliance of each pollutant emission with the national and local environmental protection requirements. In accordance with the national environmental protection plan, each power plant of the company implements positively requirements of Coal-fired Power Energy Saving and Emission Reduction Upgrading and Transform Action Plan (2014-2020) and National Energy Administration Comprehensive Division Notice about Decomposition and Implementation of Coal-fired Power Energy Saving and Emission Reduction Upgrading and Transform Target Tasks, etc. and promotes the ultra-low emission transformation project. At present, the company's subordinate coal-fired units have all completed ultra-low emission transformation work, and the emission concentration of export flue gas pollutants has been greatly reduced on the basis of the original environmental emission standards, reflecting the company's determination to fulfill its social responsibilities and the responsibility to protect the environment mission.
Conditions of environmental impact assessment and other environmental protection administrative licensing of construction projects
The company's construction projects that have been approved by government agencies have all undergone
environmental impact assessments and have obtained other necessary environmental protection administrative
licenses.
Guangdong Electric Power Development Co., Ltd. 2018Annual Report Emergency plan for emergency environmental incidents
Combining with the Environmental Protection Law of the People's Republic of China and the Opinions of the Ministry of Environmental Protection on Strengthening Environmental Emergency Management Work and other laws and regulations on the monitoring of environmental risks, thecompany’s subordinate power generation enterprises have formulated the Emergency Plan for Emergency Environmental Incidents according to their actual conditions, which has standardized and improved the handling of emergent environmental events from the aspects of environmental accident risk analysis, emergency command organization and responsibilities, disposal procedures, and disposal measures, improved the ability to respond to unexpected environmental events, and ensured that after an outbreak of an environmental incident, the company can organize emergency rescue work in a timely, orderly and efficient manner to prevent pollution of the surrounding environment, minimize the damage and social harm caused by the incident, maintain social stability, and protect public health and property safety. Environmental self-monitoring program
During the reporting period, thecompany’s subordinate power generation companies organized annual environmental self-monitoring programs in accordance with the national Administrative Measures on Automatic Monitoring of Pollution Sources (No. 28 order of State Environmental Protection Administration) and other laws and regulations, and conducted self-monitoring of the environment in accordance with the monitoring program, and announced its own monitoring results in Guangdong Province's key pollution source regulatory information platform and the national pollution source monitoring information and sharing platform. Both the announced rate and completion rate had reached100%.
Other environmental information that should be disclosed
No such cases in the reporting period.
Other environmental protection related information
No such cases in the reporting period.
XIX. Other material events
□Applicable√ Not applicable
No such cases in the reporting period.
XX. Material events of subsidiaries
√Applicable□ Not applicable
The company's holding subsidiary, Guangdong Yudean Pinghai Power Plant Co., Ltd, received the “Administrative Punishment Decision” issued by the Guangdong Provincial Ocean& Fisheries Bureau on November 14, 2016 (No. 019-2016 Yuehai Executive Punishment), and the punishment decision “ordered Pinghai to return the illegally occupied sea areas and restore the sea areas to their original state, and sentenced 10 times fines to the use fees of sea areas that shall be imposed within the period of that illegally occupied 16.3947 hectares, amounted to RMB 172,144,350.00” for that Pinghai Power Plant carried out the site leveling and bank protection work of Pinghai power plant without approval and did the reclamation of 16.3947 hectares and its behavior violated the provisions of Article 3 of the Law of the People's Republic of China on the Administration of the Use of Sea areas. Based on the audited net profit of RMB 3.238 billion attributable to the shareholders of the parent
Guangdong Electric Power Development Co., Ltd. 2018Annual Report company in 2015, the amount involved in the above-mentioned administrative penalty affects the net profit attributable to shareholders of the parent company of about 77.4 million-which accounts for2.39% of the net profit of the most recently audited period.
Pinghai Power Plant disagreed with the punishment measures of the “Administrative Punishment Decision" and applied for administrative reconsideration to the People's Government of Guangdong Province on January 16, 2017 in accordance with Article 6 of the "Administrative Reconsideration Law of the People's Republic of China". On June 16, 2017, the People's Government of Guangdong Province issued a decision on the administrative reconsideration, which stated “According to the provisions of Item 1 of Paragraph 1 of Article 28 of the Administrative Reconsideration Law of the People's Republic of China, the Administrative Punishment Decision (No. 019-2016 Yuehai Executive Punishment) made by therespondent’s Provincial Department of Ocean and Fisheries is maintained.” Pinghai Power Plant disagreed with the aforementioned administrative reconsideration decision and filed an administrative litigation to the Guangzhou Maritime Court on July 18, 2017. On December 28, 2017, the Guangzhou Maritime Court issued an administrative decision, stated “In accordance with the provisions of Article 69 of the Administrative Procedure Law of the People's Republic of China, the decision is as follows: the claim of the plaintiff Guangdong Huizhou Pinghai Power Plant Co., Ltd was rejected”. Pinghai Power Plant disagreed with the verdict, and lodged an appeal to the Guangdong Provincial Higher People's Court against the verdict, which has not yet been determined. According to the net profit of RMB 937 million attributable to shareholders of the parent company in the previous year (2016), the amount involved in the above lawsuit affects the net profit attributable to shareholders of the parent company of approximately RMB 77.4 million, which accounts for approximately 8.26% of the net profit of the most recently audited period, which does not constitute a major impact on the Company.
As of the disclosure date of this report, the above-mentioned administrative punishment and the administrative litigation matter are still in the process of multi-party communication and coordination. According to the “Asset Purchase Agreement by Share Issuance” signed between Yudean Group and the Company in 2012, Yudean Group shall compensate the Company for the actual loss caused by the above-said matter in accordance with the result of the matter.
2. Guangdong Yudean Pinghai Power General Plant Co., Ltd., a controlling subsidiary of the Company, received the Decision on Administrative Punishment (YHDCF[2019] No.042-1) issued by Huidong County Oceanic and Fishery Bureau on November 13, 2018. The act of illegally occupying 1.2813 hectares of sea area by Pinghai Power Plant to construct a sand barrier violated the provisions of the second paragraph of Article 3 of the Law of the People's Republic of China on the Use of Sea Areas and the decision was that "It is ordered to return the illegally occupied sea area, restore the sea area to its original state, and imposed an administrative penalty of RMB 11,531,700". According to the Company's audited net profit attributable to the shareholders of the parent company of 743 million yuan in 2017, the amount of the above administrative penalty affects the net profit attributable to the shareholders of the parent company of about 5,189,300 yuan, accounting for about0.7% of the latest audited net profit. Pinghai Power Plant refused to accept the punishment measures in the Decision on Administrative Punishment and filed an application for administrative reconsideration with Huidong County People's Government, which has accepted it. According to the Agreement on Issuance of Shares for Asset Purchase signed between Yudean Group and the Company in 2012, Yudean Group will compensate the Company according to the results of the above events and the actual losses caused therefrom.
Guangdong Electric Power Development Co., Ltd. 2018Annual Report VI. Change of share capital and shareholding of Principal Shareholders (1) Changes in share capital
1. Changes in share capital
In Shares
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Before the change||Increase/decrease（+，-）|||||After the Change||
||Amount|Proportion|||Capitalization|||||
||||Share|Bonus||||||
||||||of common|Other|Subtotal|Quantity|Proportion|
||||allotment|shares||||||
||||||reserve fund|||||
|I. Share with||||||||||
||1,897,966,823|36.15%||||2,123|2,123|1,897,968,946|36.15%|
|conditional subscription||||||||||
|2. State-owned legal||||||||||
||1,893,342,621|36.06%||||||1,893,342,621|36.06%|
|person shares||||||||||
|3.Other domestic shares|4,624,202|0.09%||||2,123|2,123|4,626,325|0.09%|
|Of which：Domestic||||||||||
||4,620,666|0.09%||||||4,620,666|0.09%|
|legal person shares||||||||||
|Domestic natural person||||||||||
||3,536|0 %||||2,123|2,123|5,659|0 %|
|shares||||||||||
|II. Shares with||||||||||
|unconditional|3,352,317,163|63.85%||||-2,123|-2,123|3,352,315,040|63.85%|
|subscription||||||||||
|1.Common shares in||||||||||
||2,553,909,163|48.64%||||-2,123|-2,123|2,553,907,040|48.64%|
|RMB||||||||||
|2.Foreign shares in||||||||||
||798,408,000|15.21%||||||798,408,000|15.21%|
|domestic market||||||||||
|III. Total of capital||||||||||
||5,250,283,986|100 %||||0|0|5,250,283,986|100 %|
|shares||||||||||

Reasons for share changed:
√Applicable□ Not applicable
During the reporting period, the Company added 2,123 shares with limited conditions of sale, some of which were originally held by directors of the company and were converted into special share for senior executive. The total number of shares of the Company remained unchanged.
Approval of Change of Shares
□ Applicable√ Not applicable
Ownership transfer of share changes
□ Applicable√ Not applicable
Progress on any share repurchase:
□ Applicable√ Not applicable
Guangdong Electric Power Development Co., Ltd. 2018Annual Report Progress on reducing the repurchased shares by means of centralized bidding:
□ Applicable√ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common shareholders of Company in latest year and period
□ Applicable√ Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security regulators
□ Applicable√Not applicable
2. Change of shares with limited sales condition
√ Applicable□ Not applicable
In Shares
||||||||
|-|-|-|-|-|-|-|
||||Restricted Shares||||
||Opening shares|Shares released||Ending shares||Date for|
|Shareholders|||Increased In the||Restricted reasons||
||restricted|in Period||restricted||released|
||||Period||||
||||||The original part of||
||||||unrestricted tradable shares||
|Wen Lianhe|0||2,122|2,122||--|
||||||was converted into senior||
||||||management lock-in shares.||
|Lin Weifeng|3,536||1|3,537|--|--|
|Total|3,536||2,123|5,659|--|--|

Ⅱ.Issuing and listing
1.Explanation of the Situation of the Security Issue(No Preferred Shares) in the Report Period
□Applicable√Not applicable
2.Change of asset and liability structure caused by change of total capital shares and structure
□Applicable√Not applicable
3.About the existingemployees’ shares
□Applicable√Not applicable
Ⅲ.Shareholders and actual controlling shareholder
1. Number of shareholders and shareholding
In Share
|||||||||
|-|-|-|-|-|-|-|-|
|Total number ofcommonshareholders atthe end of the||Total shareholders||||||
|||||The total||Total preferred shareholders at||
||94,746|at the end of the|99,561|number of|0|the end of the month from the date|0|
|||month from the||preferred||of disclosing the annual report(if||

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|reporting period||date of disclosing||||shareholders||||any)(See Notes 8)|||||
|||||||voting rights|||||||||
|Particulars about shares held above 5% by shareholders or top ten shareholders|||||||||||||||
||||||||||||||Number of share||
||||Proportion||Number of||Changes in||Amount of||Amount of||||
|Shareholders|Nature of||||||||||||pledged/frozen||
||||of shares||shares held at||reporting||restricted||un-restricted||||
||shareholder||||||||||||State of||
||||held（%）||period -end||period||shares held||shares held|||Amount|
||||||||||||||share||
|Guangdong Energy GroupCo., Ltd.|State-ownedlegal person||67.39%||3,538,005,285||||1,893,342,621||1,644,662,664||||
|China Securities FinanceCo., Ltd.|State-ownedlegal person||2.84%||148,862,420||3,113,440||||148,862,420||||
|Shenzhen Guangfa ElectricPower Investment Co., Ltd.|State-ownedlegal person||2.22%||116,693,602||||||116,693,602||||
|Guangdong Electric PowerDevelopment Corporation|State-ownedlegal person||1.80%||94,367,341||||||94,367,341||||
|Li Zhuo|DomesticNatural person||0.60%||31,542,323||-161,520||||31,542,323||||
|National Social SecurityFund 103 portfolio|DomesticNon-Stateowned legalperson||0.48%||24,994,982||2,000,000||||24,994,982||||
|Zheng Jianxiang|DomesticNatural person||0.43%||22,567,698||885,700||||22,567,698||||
|Harbin Hali Industry Co.,Ltd.|DomesticNon-Stateowned legalperson||0.40%||20,942,645||-1,125,920||||20,942,645||||
|CHINA INT'L CAPITALCORP HONG KONGSECURITIES LTD|Overseas Legalperson||0.29%||15,316,066||-1||||15,316,066||||
|Harbin Daoli DistrictCharity Foundation|DomesticNon-Stateowned legalperson||0.26%||13,722,893||-28,295,568||||13,722,893||||
||||The fourth largest shareholder Guangdong Electric Power Development Corporation is the||||||||||||
|Explanation on associated relationship|||wholly-owned subsidiaries of the largest shareholder Guangdong Energy Group. These two||||||||||||
|among the aforesaid shareholders|||companies have relationships; whether the other shareholders have relationships or||||||||||||
||||unanimous acting was unknown||||||||||||
|Shareholding of top 10 shareholders of unrestricted shares|||||||||||||||
|||||Quantity of unrestricted shares held||||Share type|||||||
|Name of the shareholder|||||||||||||||
|||||at the end of the reporting period||||Share type||||Quantity|||
|Guangdong Energy Group Co., Ltd.||||1,644,662,664||||RMB Common shares||||1,644,662,664|||
|China Securities Finance Co., Ltd.||||148,862,420||||RMB Common shares||||148,862,420|||
|Shenzhen Guangfa Electric Power InvestmentCo., Ltd.||||116,693,602|||||||||||
|||||||||RMB Common shares||||116,693,602|||
|Guangdong Electric Power DevelopmentCorporation||||94,367,341|||||||||||
|||||||||RMB Common shares||||94,367,341|||
|Li Zhuo||||31,542,323||||RMB Common shares||||31,542,323|||
|National Social Security Fund 103 portfolio||||24,994,982||||RMB Common shares||||24,994,982|||

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
|||||
|-|-|-|-|
|Zheng Jianxiang|22,567,698|Foreign shares placed in||
||||22,567,698|
|||domestic exchange||
|Harbin Hali Industry Co., Ltd.|20,942,645|RMB Common shares|20,942,645|
|CHINA INT'L CAPITAL CORP HONGKONG SECURITIES LTD|15,316,066|Foreign shares placed in||
||||15,316,066|
|||domestic exchange||
|Harbin Daoli District Charity Foundation|13,722,893|RMB Common shares|13,722,893|
|Explanation on associated relationship or||||
|consistent action among the top 10|The fourth largest shareholder Guangdong Electric Power Development Corporation is|||
|shareholders of non-restricted negotiable|the wholly-owned subsidiaries of the largest shareholder Guangdong Energy Group.|||
|shares and that between the top 10|These two companies have relationships; whether the other shareholders have|||
|shareholders of non-restricted negotiable|relationships or unanimous acting was unknown.|||
|shares and top 10 shareholders||||
|Explanation on shareholders participating inthe margin trading business(if any )(See Notes4)|The Fifth largest shareholder Li Zhuo holds35,000 A shares of the Company through A|||
||shares ordinary stock account,and holds 31,507,323A shares of the Company through|||
||stock account with credit transaction and guarantee, hold 31,542,323 shares of the|||
||Company's stock totally.|||
||The Eighth largest shareholder Harbin Hali Industry Co., Ltd. holds20,942,645 A shares|||
||of the Company through stock account with credit transaction and guarantee.|||
||The Tenth largest shareholder Harbin Daoli District Charity Foundation holds72,287 A|||
||shares of the Company through A shares ordinary stock account,and holds 13,650,606A|||
||shares of the Company through stock account with credit transaction and guarantee, hold|||
||13,722,89 shares of the Company's stock totally.|||

Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period.
□ Yes√ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy–back agreement dealing in reporting period.
2.Controlling shareholder
Nature of Controlling Shareholders: Local state holding
Type of Controlling Shareholders:Legal person
||||||
|-|-|-|-|-|
||Legal|Date ofincorporation|||
|Name of the Controlling|||||
||representative||Organization code|Principal business activities|
|shareholder|||||
||/Leader||||
|||||Management and sales of the|
|||||electricity investment construction|
|||||operation management，electricity|
|||||power(Thermal Power)，|
|Guangdong Energy Group||||The industry of transportation|
||Li Zhuoxian|August 3,2001|91440000730486022G||
|Co., Ltd.||||resources environmental protection，|
|||||new source of energy electricity|
|||||investment; investment planning and|
|||||consulting ; information consulting|
|||||service; sales of production materials.|
|The equity of the controlling|||||
|shareholder in other domestic|||||
|and foreign listed companies|Unknown||||
|held or partly held by it in the|||||
|report period|||||

Guangdong Electric Power Development Co., Ltd. 2018Annual Report Change of the actual controller in the reporting period
□Applicable√Not applicable
No such cases in the Reporting Period.
3．Information about the controlling shareholder of the Company
Actual controllernature：Local state owned assets management
Actual controllertype：Legal person
||||||
|-|-|-|-|-|
||Legal||||
|Name of the controlling||Date of|||
||representative/p||Organization code|Principal business activities|
|shareholder||establishment|||
||erson in charge||||
|||||As the special institution directly|
|||||subordinate to Guangdong|
|State-owned Assets supervision|||||
|||||Provincial People's Government,|
|and administration Commission of|||||
||Li Cheng|June 26,2004|114400007583361658|performed the obligation of|
|Guangdong Provincial People’s|||||
|||||provincial state-asset contributor|
|Government|||||
|||||entrusted by the provincial|
|||||government.|
|Equity of other domestic/foreign|||||
|listed company with share|||||
|controlling and share participation|Unknown||||
|by controlling shareholder in|||||
|reporting period|||||

Changes of the actual controller in the reporting period
□Applicable√Not applicable
No Changes of the actual controller in the reporting period
Block Diagram of the ownership and control relations between the company and the actual controller
The actual controller controls the company by means of trust or managing the assets in other way
Guangdong Electric Power Development Co., Ltd. 2018Annual Report□Applicable√Not applicable
4.Particulars about other legal person shareholders with over10% share held
□Applicable√Not applicable
5.Situation of Share Limitation Reduction of Controlling Shareholders, Actual Controllers, Restructuring Party and Other Commitment Subjects
□Applicable√Not applicable
Guangdong Electric Power Development Co., Ltd. 2018Annual Report VII. Situation of the Preferred Shares
□Applicable√Not applicable
The Company had no preferred shares in the reporting period.
Guangdong Electric Power Development Co., Ltd. 2018Annual Report VIII. Information about Directors, Supervisors and Senior Executives I. Change in shares held by directors, supervisors and senior executives
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Amount of|Amount of||Shares|
||||||||Shares|||Other||
||||||Starting|Expiry||shares|shares||held at|
|||Office|||||held at the|||changes||
|Name|Positions||Sex|Age|date of|date of||increased at|decreased at||the|
|||status|||||year-begin|||increase/||
||||||tenure|tenure||the reporting|the reporting||year-end|
||||||||(share)|||decrease||
|||||||||period(share)|period(share)||(share)|
||Board|In|||June|September||||||
|Wang Jin|||Male|55||||||||
||chairman|office|||11,2018|18,2020||||||
|||In|||September|September||||||
|Wang Jin|Director||Male|55||||||||
|||office|||18,2017|18,2020||||||
|||In|||September|September||||||
|Rao Subo|Director||Male|54||||||||
|||office|||18,2017|18,2020||||||
|Wen||In|||September|September||||||
||Director||Male|50|||2,830||||2,830|
|Lianhe||office|||18,2017|18,2020||||||
|Wen||In|||September|September||||||
||Director||Female|54||||||||
|Shufei||office|||18,2017|18,2020||||||
|||In|||September|September||||||
|Chen Ze|Director||Male|49||||||||
|||office|||18,2017|18,2020||||||
|||In|||June|September||||||
|Li Fangji|Director||Male|51||||||||
|||office|||28,2018|18,2020||||||
|Zheng||In|||June|September||||||
||Director||Male|50||||||||
|Yunpeng||office|||28,2018|18,2020||||||
|Zheng|General|In|||June|September||||||
||||Male|50||||||||
|Yunpeng|Manager|office|||11,2018|18,2020||||||
|||In|||September|September||||||
|Zhou Xian|Director||Male|45||||||||
|||office|||18,2017|18,2020||||||
|Chen||In|||September|September||||||
||Director||Male|55||||||||
|Changlai||office|||18,2017|18,2020||||||
|Zhang||In|||September|September||||||
||Director||Male|52||||||||
|Xueqiu||office|||18,2017|18,2020||||||
||Independent|In|||May|September||||||
|Sha Qilin|||Male|58||||||||
||director|office|||20,2014|18,2020||||||
|Shen|Independent|In|||May|September||||||
||||Female|51||||||||
|Hongtao|director|office|||20,2016|18,2020||||||
||Independent|In|||May|September||||||
|Wang Xi|||Male|48||||||||
||director|office|||20,2016|18,2020||||||
|Ma|Independent|In|||September|September||||||
||||Male|54||||||||
|Xiaoqian|director|office|||18,2017|18,2020||||||
|Yin|Independent|In|||September|September||||||
||||Male|49||||||||
|Zhongyu|director|office|||18,2017|18,2020||||||
|Zhang|Chairman|In|Male|57|August|September||||||

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Dewei|of the|office|||14,2012|18,2020||||||
||Supervisory|||||||||||
||Committee|||||||||||
|Li||In|||June|September||||||
||Supervisor||Male|44||||||||
|Baobing||office|||28,2018|18,2020||||||
|Zhu|Independent|In|||May|September||||||
||||Male|61||||||||
|Weiping|Supervisor|office|||20,2014|18,2020||||||
|Jiang|Independent|In|||May|September||||||
||||Male|50||||||||
|Jinsuo|Supervisor|office|||20,2014|18,2020||||||
|Lin|Employee|In|||May|September||||||
||||Male|50|||4,716||||4,716|
|Weifeng|supervisor|office|||15,2002|18,2020||||||
||Employee|In|||May|September||||||
|Li Qing|||Male|41||||||||
||supervisor|office|||20,2014|18,2020||||||
|Yang||In|||January|September||||||
||Deputy GM||Male|53||||||||
|Xuanxing||office|||16,2014|18,2020||||||
|||In|||July|September||||||
|Liu Hui|Deputy GM||Female|53||||||||
|||office|||28,2010|18,2020||||||
||Deputy GM,|||||||||||
|||In|||September|September||||||
|Liu Wei|Finance||Male|39||||||||
|||office|||18,2017|18,2020||||||
||manager|||||||||||
||Board|In|||October|September||||||
|Liu Wei|||Male|39||||||||
||secretary|office|||24,2006|18,2020||||||
|Huang|Board|Dimiss|||August|June||||||
||||Male|56||||||||
|Zhenhai|chairman|ion|||25,2016|11,2018||||||
|Huang||Dimiss|||August|June||||||
||Director||Male|56||||||||
|Zhenhai||ion|||25,2016|28,2018||||||
|Yao||Dimiss|||March|June||||||
||Director||Male|53||||||||
|Jiheng||ion|||21,2014|28,2018||||||
|Yao|General|Dimiss|||January|June||||||
||||Male|53||||||||
|Jiheng|Manager|ion|||16,2014|11,2018||||||
|||Dimiss|||May|June||||||
|Zhao Li|Supervisor||Female|46||||||||
|||ion|||18,2011|28,2018||||||
|Total|--|--|--|--|--|--|7,546|0|0|0|7,546|

 II. Change in shares held by directors, supervisors and senior executives
√ Applicable□Not applicable
||||||
|-|-|-|-|-|
|Name|Positions|Types|Date|Reason|
|Huang Zhenhai|Board chairman|Dimission|June 11, 2018|Job change|
|Huang Zhenhai|Director|Dimission|June 28,2018|Job change|
|Yao Jiheng|Director|Dimission|June 28,2018|Job change|
|Yao Jiheng|General Manager|Dimission|June 11,2018|Job change|
|Zhao Li|Supervisor|Dimission|June 28,2018|Job Change|

III.Posts holding
Work Experience in the past five years of Directors, supervisors and senior Executives in Current office
Guangdong Electric Power Development Co., Ltd. 2018Annual Report Mr. Wang Jin was born in May 1963. He holds a Bachelor of Engineering from Nanjing Institute of Technology and a Master of Business Administration from Jinan University. He is now a senior engineer,and currently serves as the deputy chief engineer of Guangdong Energy Group Co., Ltd.,chairman of Guangdong Electric Power Development Co., Ltd..He once served as director of boiler maintenance workshop in Shaoguan Power Plant, director of Engineering Technology Department of Zhuhai PowerPlant’s Planning and Construction Department, deputy director of Zhuhai Power Plant, executive deputy general manager of Guangzhu Power Generation Co., Ltd. and general manager of Zhuhai Power Plant Co., Ltd., general manager and secretary of the Party Committee of Guangdong Zhuhai Jinwan Power Generation Co., Ltd., general manager of Guangzhu Power Generation Co., Ltd., the deputy chief engineer and the manager of the Department of Management and the secretary of the Party Branch of Guangdong Yudean Group Co., Ltd., and concurrently serves as a director of Guangdong Electric Power Development Co., Ltd.
Mr. Rao Subo, born in May 1964, is bachelor of Engineering of Chongqing University and graduate of the Central Party School and is a Senior Engineer (Professor Level). He is currently a member of the disciplinary committee, deputy chief engineer and minister of safety supervision and production technology department of Guangdong Energy Group Co., Ltd., and head of preparation team of Yudean electric power and information technology center. He once served as deputy chief engineer of Shaoguan Power Plant, deputy director of the Department of Biotechnology of Guangdong Electric Power Group Corporation, director of Department of Biotechnology and Safety Supervision of Guangdong Yudean Assets Management Co., Ltd., director of Department of Biotechnology and Safety Supervision, deputy chief engineer of Guangdong Yudean Group Co., Ltd., and director of the Shajiao A Power Plant and party committee secretary, Deputy chief engineer, Secreatary of the Safety Supervision and Produce technology Dept, Secreatary of the Party Branch and Head of the Information Technology Centre Preparatory team of Guangdong Yudean Group.
Mr. Wen Lianhe was born in October 1968 and graduated from Harbin Institute of Technology. He is now senior engineer (professor level) and currently deputy chief engineer and director of Strategic Development Department of Guangdong Energy Group Co., Ltd. He once served as deputy minister of Biotechnology and Safety Supervision Department of Guangdong Yudean Group Co., Ltd., general manager and party committee secretary of Guangdong Red Bay Power Generation Co., Ltd., Deputy chief engineer, Minister of strategic Development and Secretary of Party Branch of Yudean Group.
Ms. Wen Shufei, born in August 1964, is Bachelor of Economics from Zhongnan University of Finance and Economics. She is an accountant and currently serves as deputy chief accountant and head of financial department of Guangdong Energy Group Co., Ltd. She once served as deputy division chief and division chief of the Second Business Office of Guangdong Provincial Finance Ombudsman Office of Ministry of Finance, deputy group leader of preparatory group, deputy general manager, party branch secretary and general manager of Guangdong Yudean Finance Co., Ltd.
Mr. Chen Ze was born in January 1969. He holds a bachelor degree from Chongqing University and a doctoral degree in management from Huazhong University of Science and Technology. He is senior economist, corporate counsel (practicing qualifications), and currently serves as the general counsel, secretary of the board of directors, and director of legal affairs and capital operation department of Guangdong Energy Group Co., Ltd. He once served as deputy director of the general department and director of capital operation and legal affairs department of Guangdong Yudean Group Co., Ltd., general manager and party branch secretary of Guangdong Yudean Shipping Co., Ltd.
Mr. Li Fangji, born in November 1967, is a senior engineer. He holds a bachelor degree from Beijing Institute of
Guangdong Electric Power Development Co., Ltd. 2018Annual Report Water Resources and Electric Power Economics and Management and a master degree in engineering from Tianjin University. He currently serves as Deputy Chief Engineer of Guangdong Energy Group Co., Ltd. and concurrently serves as Minister of Strategy Development Department and Secretary of Party Branch of Yudean Group Corporation. He had served as Engineer of Shenzhen Energy Corporation, Assistant to General Manager and Deputy General Manager of Shenzhen Qianwan Electric Power Development Co., Ltd., Assistant to General Manager, Chairman of the Labor Union, Deputy General Manager, General Manager, and Secretary of the Party Committee of Shenzhen Guangqian Electric Power Co., Ltd., Secretary of Party Committee and General Manager of Guangdong Yudean Jinghai Power Generation Co., Ltd.
Mr. Zheng Yunpeng, born in October 1968, Bachelor of South China University of Technology and MBA of Jinan University, is a senior engineer. Currently, he is the general manager of Guangdong Electric Power Development Co., Ltd. He had served as Deputy Minister of Strategy Development Department of Guangdong Yudean Asset Management Co., Ltd., Deputy Minister of Strategy Development Department of Guangdong Yudean Group Co., Ltd., Minister of Strategy Development Department of Guangdong Yudean Group Co., Ltd., Secretary of the Party Branch and General Manager of Branch Company of Guangdong Yudean Environmental Protection Engineering Management Company, Factory Director and Secretary of the Party Committee of Huangpu Power Plant, General Manager of Yuehua Power Generation Company, General Manager and Secretary of the Party Branch of Guangdong Yudean Natural Gas Co., Ltd.
Mr. Zhou Xi'an, born in March 1973, is Bachelor of Engineering from Zhejiang University, Master of Engineering from Huazhong University of Science and Technology. He is senior engineer and currently the director of the general department and party branch secretary of Guangdong Energy Group Co., Ltd. He used to be deputy chief engineer and deputy director of Changhu Hydropower Plant, deputy general manager of Guangdong Yudean Changhu Power Generation Co., Ltd., general manager and party committee secretary of Guangdong Yudean Qingxi Power Generation Co., Ltd., general manager and party committee secretary of Guangdong Yudean Nanshui Water Power Generation Co., Ltd.
Mr. Chen Changlai was born in April 1963. He has a correspondence bachelor's degree in economics and management from Guangdong Provincial Party School, and a master's degree in business administration from South China University of Technology. He is senior political engineer and currently the director and party committee secretary of Shajiao A Power Plant. He used to serve as the director of the Beijing office of Guangdong Yudean Group Co., Ltd., party committee secretary,discipline inspection commission secretary and labour union chairman of the Shajiao A Power Plant.
Mr. Zhang Xueqiu, born in January 1966. Bachelor of Science, Xiangtan University, Master of Management, Jinan University. Senior economist. He is currently the Deputy General Manager and Secretary of the Board of Directors of Guangzhou Development Group Co., Ltd. He was the general manager of Guangzhou Development Group Co., Ltd.
Mr. Sha Qilin, born in October 1960. Master of Wuhan Institute of Technology. Associate Professor, practicing lawyer. He is currently a lawyer of Guangdong Nanguo Desai Law Firm, member of the Professional Committee of Financial and Securities of Guangzhou Lawyers Association, and concurrently an independent director of Guangdong Electric Power Development Co., Ltd. He was an associate professor of Wuhan Institute of Technology (now Wuhan University of Technology), head of investment and development department of China Huandao Group Company, deputy chief engineer of group and chief manager of overseas listed leading group. Ms. Shen Hongtao, was born in August 1967, PhD of management of Xiamen University, professor, doctoral
Guangdong Electric Power Development Co., Ltd. 2018Annual Report supervisor. Currently, she is a professor in accounting department of Jinan University, and concurrently serves as member of Accounting Society of China, Standing member of Accounting Association of Guangdong Province, editorial board member of China Journal of Accounting Studies, editorial board member of Accounting Study, independent director of Rising Nonferrous Metals Co.,Ltd, independent director of Polyrocks Chemical Co.,Ltd and independent director of Guangdong Electric Power Development Co.,Ltd. She had served as deputy section head of Guangdong Provincial People's Government, consultant of PwC International and vice president of International College of Jinan University.
Mr. Wang Xi, was born in April 1970, PhD of economics of Sun Yat-sen University, professor, doctoral supervisor, Specially-appointed Professor of Pearl-river Scholar. Currently, he serves as professor of Lingnan School of Yat-sen University and Director of Institute of Economic Research of Yat-sen University, concurrently serves as editorial board member of The World Economy of Chinese Academy of Social Sciences, Deputy Secretary-General and Standing member of China Institute of International Finance, Standing member of China Society of World Economics, financial consulting expert of Guangdong Provincial People's Congress Standing Committee, independent director of Palm Garden Co.,Ltd, independent director of Guangzhou Securities Co.,Ltd, independent director of Zhuhai Rural Commercial Bank and independent director of Guangdong Electric Power Development Co.,Ltd. He had served as cadre of Agricultural Bank of China Guangdong Branch, manager of the investment department of Hainan Trust and Investment Corporation, deputy director of the Finance Department of Lingnan School of Yat-sen University, director and vice president of International Business Department of Lingnan School of Yat-sen University.
Mr. Ma Xiaoqian, born in March 1964, is Ph.D.of engineering thermophysics from South China University of Technology. He is a professor and currently serving as the director of the Key Laboratory of the Electric Power School of South China University of Technology and concurrently serving as the chairman of the Guangzhou Energy Institute, the outside director of Guangzhou Environmental Protection Investment Group Co., Ltd., and the independent director of Guangzhou Development Group Co., Ltd. He used to be the dean and vice president of Electric Power College of the South China University of Technology.
Mr. Yin Zhongyu was born in February 1969. He is Master of rural finance from Northwest Agricultural University. He is currently the general manager of the Great Wall SecuritiesM&A Department. He previously served as a director of the Guotai JunanM&A business and an executive director of Shanghai Longrui Investment Consultants Company.
Mr.Zhang Dewei, born in January 1961. Guangzhou Normal University Bachelor of Science, Jinan University Master of Business Administration. Senior economist. He is currently the Minister of Audit and Supervisory Committee of Guangdong Energy Group Co., Ltd. He served as Director of the General Manager's Office of Guangdong Electric Power Development Co., Ltd., Secretary of Board Affairs Department and Secretary of the Board of Directors, Deputy Director of the Board of Guangdong Yudean Asset Management Co., Ltd., Deputy Director of the Board of Directors of Guangdong Yudean Group Co., Deputy Minister of Legal Affairs, Deputy Minister of Capital Operations and Legal Affairs.
Mr. Li Baobing, born in September 1974, graduated from Xi'an Jiaotong University with a master degree, is a senior economist. Currently he is the Deputy Minister of Finance Department of Guangdong Energy Group Co., Ltd. He had served as Project Manager and Deputy Chief of Office of Investment Banking Department of Huaxin Securities Co., Ltd., Investment Manager of Shenzhen Innovation Technology Investment Group Co., Ltd., Senior Manager of Investment Banking Center and Deputy General Manager of Guangzhou Xiancheng Group Co., Ltd., Assistant to General Manager of Budget and Finance Department and Director of Asset Management Department
Guangdong Electric Power Development Co., Ltd. 2018Annual Report of Guangzhou Lingnan International Enterprise Group Co., Ltd., Manager of Investment Department, Manager of Comprehensive Department, Board Secretary and Deputy General Manager of Guangdong Yudean Finance Co., Ltd., and had concurrently served as General Manager of Shenzhen Tianxin Insurance Brokers Co., Ltd.
Mr. Zhu Weiping, born in May 1957. Doctor of Economics, Jinan University. He is currently a vice president of the China Industrial Economics Society, executive vice president of the Guangdong Economic Association, Zhujiang Industrial and Guangsheng Youse Independent Director, Independent Supervisor of Guangdong Electric Power Development Co., Ltd..
Mr. Jiang Jin Suo, born in March 1968. Doctor of Management, Jinan University. Professor, Certified Public Accountant. He is currently the Deputy Director of Accounting Department of Guangdong Finance Institute, Member of Guangzhou Institute of Certified Public Accountants, Independent Supervisor of Guangdong Electric Power Development Co., Ltd.
Mr. Lin Weifeng, born in February 1968. Bachelor of Management, Jiangxi University of Science and Technology. auditor. The current Guangdong Electric Power Development Co., Ltd. employee supervisor, Shajiao A power plant finance minister. Former Shajiao power plant audit director, Shajiao A power plant deputy chief economist.
Mr. Li Qing, born in May 1977. Bachelor of Economics, Shanghai University of Finance and Economics. senior accountant. The current Guangdong Electric Power Development Co., Ltd. employee supervisor, director of the audit room. Former Yunfu Power Plant Finance Department Accounting, Guangdong Yuelong Power Co., Ltd. Finance Minister Assistant.
Mr. Yang Xuanxing, born in November 1965. Bachelor of Management, Zhongshan University, Senior auditor, He is currently the deputy general manager of Guangdong Electric Power Development Co., Ltd. He was appointed Deputy Director of Audit Office of Guangdong Electric Power Industry Bureau, Director of Audit and Supervision Department of Guangdong Yudean Asset Management Co., Ltd., Deputy Secretary of Discipline Inspection Commission of Guangdong Yudean Group Co., Ltd., Finance Minister and Deputy Chief Accountant. Ms. Liu Hui was born in October 1965. Bachelor of Engineering, Jiangxi South Metallurgical School. Senior engineer. He is currently the deputy general manager of Guangdong Electric Power Development Co., Ltd. Former Guangdong Thermal Power Engineering Corporation Deputy Chief Economist, Minister of Budget, Guangdong Electric Power Development Co., Ltd. project management manager.
Mr. Liu Wei, born in April 1979, is Bachelor of finance from Zhongnan University of Economics and Law. He is an economist and currently serves as theCompany’s deputy general manager, chief financial officer, secretary of the board of directors, and concurrently as manager of the board affairs department. He used to be responsible for the financial department of Guangdong Electric Power Development Co., Ltd., and be responsible and as the host of the Board Affairs Department, and the representatives of the company's securities affairs.
Office taking in shareholder companies
√Applicable□Not applicable
|||||||
|-|-|-|-|-|-|
||||||Does he /she|
||||Sharing|Expiry date|receive|
|Names of the||Titles engaged in the||||
||Names of the shareholders||date of|of office|remuneration or|
|persons in office||shareholders||||
||||office term|term|allowance from|
||||||the shareholder|
|Rao Subo|Guangdong Energy Group Co., Ltd.|Deputy chief engineer|October||Yes|

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
||||||
|-|-|-|-|-|
||||10,2005||
|||Head of preparation section of|||
|||Guangdong Electric Power|||
|Rao Subo|Guangdong Energy Group Co., Ltd.||April 2016|Yes|
|||Infoirmation technology|||
|||Center|||
|Rao Subo|Guangdong Energy Group Co., Ltd.|Director of security|July 2018|Yes|
||||November||
|Wen Lianhe|Guangdong Energy Group Co., Ltd.|Deputy chief engineer||Yes|
||||2010||
|||Minister of Management and|||
|Wen Lianhe|Guangdong Energy Group Co., Ltd.||April 2018|Yes|
|||Secretary of the party branch|||
|||Deputy Chief accountant and|||
|Wen Shufei|Guangdong Energy Group Co., Ltd.||July 2014|Yes|
|||Minister of finance Dept|||
|||General Counsel, Secretary of|||
|||the Board of Directors,|||
|Chen Ze|Guangdong Energy Group Co., Ltd.||June 2016|Yes|
|||Minister of legal Affairs and|||
|||Capital Operations|||
|||Deputy Chief Engineer,|||
|Li Fangji|Guangdong Energy Group Co., Ltd.|Minister of Strategic Dept and|April 2018|Yes|
|||Secretary of Party Branch|||
|||Minister of the integrated|||
||||November||
|Zhou Xian|Guangdong Energy Group Co., Ltd.|department and secretary of||Yes|
||||2016||
|||the party branch|||
|||Director of the Audit Dept and|||
|Zhang Dewei|Guangdong Energy Group Co., Ltd.|Supervisory board , Secretary|June 2012|Yes|
|||of the Party Branch|||
|||Deputy Secretary of the|||
||||September||
|Zhang Dewei|Guangdong Energy Group Co., Ltd.|discipline Inspection||Yes|
||||2017||
|||Commission|||
|Zhang Dewei|Guangdong Energy Group Co., Ltd.|Chief auditor|July 2018|Yes|
|Li Baobing|Guangdong Energy Group Co., Ltd.|Deputy Minister of Finance|April 2018|Yes|
|||Deputy General Manager and|||
||Guangzhou Development Group Co.,||||
|Zhang Xueqiu||Secretary of the Board of|May 2009|Yes|
||Ltd.||||
|||Directors|||
|Notes to|||||
|post-holding in|||||
||Where there are more than one post, the starting time of appointment shall be the starting time of the main post.||||
|shareholder’s|||||
|unit|||||

Offices taken in other organizations
√Applicable□Not applicable
|||||||
|-|-|-|-|-|-|
||||||Drawing|
||||Start date of|End date of|remuneration and|
|Name|Other unit|Title||||
||||office term|office term|allowance from of|
||||||other unit(Y/N)|
|Wang Jin|Maoming Zhenneng Thermoelectric Co.,|||||
|||Board chairman|December 2010||No|
||Ltd.|||||
|Wang Jin|Yudean Investment Co., Ltd.|Director|December 2010||No|
|Wang Jin|Guangdong Yuehua Power Generation|||||
|||Board chairman|July 2017||No|
||Co.,Ltd.|||||
|Wang Jin|Guangdong Red Bay Power Generation Co.,|Board chairman|September||No|

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
|||||||
|-|-|-|-|-|-|
||||||Drawing|
||||Start date of|End date of|remuneration and|
|Name|Other unit|Title||||
||||office term|office term|allowance from of|
||||||other unit(Y/N)|
||Ltd.||2018|||
||Guangdong Yudean Jinghai Power|||||
|Wang Jin||Director|June 2018||No|
||Generation Co., Ltd.|||||
||Guangdong Huizhou Natural Gas Power|||||
|Wang Jin||Board chairman|June 2018||No|
||Generation Co., Ltd.|||||
||Guangdong Shaoguan Yuejiang Power|||||
|Rao Subo||Board chairman|July 2016||No|
||Generation Co., Ltd.|||||
|||Vice Board||||
|Rao Subo|Guangdong Yuejia Electric Power Co., Ltd.||December 2013||No|
|||chairman||||
||Guangdong Yunhe Power Generation Co.,|||||
|Rao Subo||Board chairman|January 2014||No|
||Ltd.|||||
|Rao Subo|North Union Electric Power Co., Ltd.|Director|March 2014||No|
|Rao Subo|Shanxi Yudean Energy Co., Ltd.|Board chairman|January 2014||No|
|Rao Subo|Yudean Investment Co., Ltd.|Board chairman|February 2014||No|
||Tianshengqiao First Class Hydropower|||||
|Rao Subo||Board chairman|June 2017||No|
||Development Co., Ltd.|||||
||Guangzhou Electric Power Trading Center|||||
|Wen Lianhe||Director|July 2018||No|
||Co., Ltd.|||||
||Guangzhou Electric Power Trading Center|||||
|Wen Lianhe||Director|August 2018||No|
||Co., Ltd.|||||
||Guangdong Yudean Jinghai Power|||||
|Wen Lianhe||Board chairman|July 2018||No|
||Generation Co., Ltd.|||||
||Zhuhai Special Economic Zone|||||
|Wen Lianhe||Board chairman|June 2018||No|
||GuangzhuPower Generation Co., Ltd.|||||
||Guangdong Zhuhai Power Generation Co.,|||||
|Wen Lianhe||Board chairman|July 2018||No|
||Ltd.|||||
||||September|||
|Wen Lianhe|Yudean Investment Co., Ltd.|Director|||No|
||||2018|||
|Wen Shufei|Guangdong Yudean Finance Co., Ltd.|Board chairman|August 2015||No|
|Wen Shufei|Chaokang Investment Co., Ltd.|Board chairman|December 2014||No|
||Tianshengqiao First Class Hydropower|||||
|Wen Shufei||Director|August 2014||No|
||Development Co., Ltd.|||||
||Zhuhai Special Economic Zone|||||
|Wen Shufei||Director|July 2014||No|
||GuangzhuPower Generation Co., Ltd.|||||
||Guangdong Zhuhai Power Generation|||||
|Wen Shufei||Director|July 2014||No|
||Co.,Ltd.|||||
||Guangdong Zhuhai Jinwan Power|||||
|Wen Shufei||Director|July 2014||No|
||Generation Co., Ltd.|||||
||Guangdong Yudean Financing Lease Co.,|||||
|Wen Shufei||Board chairman|December 2016||No|
||Ltd.|||||
||Guangdong Yudeann property Insurance||November|||
|Wen Shufei||Board chairman|||No|
||Co., Ltd.||2017|||
|Chen Ze|Guangdong Yudean Shipping Co., Ltd.|Board chairman|August 2016||No|
|Chen Ze|Guangdong Yudean Jinghai Power|Board chairman|July 2016||No|

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
|||||||
|-|-|-|-|-|-|
||||||Drawing|
||||Start date of|End date of|remuneration and|
|Name|Other unit|Title||||
||||office term|office term|allowance from of|
||||||other unit(Y/N)|
||Generation Co., Ltd.|||||
|Chen Ze|Guangdong Yuejia Electric Power Co., Ltd.|Board chairman|July 2016||No|
||Guangdong Yudean Faneng Investment Co.,|Executive||||
|Chen Ze|||August 2016||No|
||Ltd.|director||||
||Tianshengqiao First Class Hydropower|||||
|Chen Ze||Director|October 2016||No|
||Development Co., Ltd.|||||
|Chen Ze|Guangdong Yangjiang Port Co., Ltd.|Board chairman|August 2016||No|
||Guangdong Yudean Xinhui Power|||||
|Li Fangji||Board chairman|June 2018||No|
||Generation Co., Ltd.|||||
||Guangdong Yudean Zhongshan Thermal|||||
|Li Fangji||Board chairman|June 2018||No|
||Power Co., Ltd.|||||
||Guangdong Yudean Huaxing Coal Gas|||||
|Li Fangji||Board chairman|June 2018||No|
||Union cycle Power Generation Co., Ltd.|||||
|Li Fangji|Yangjiang Nuclear Power Co., Ltd.|Director|June 2018||No|
||Taishan Nuclear Power Industry Investment|||||
|Li Fangji|Co., Ltd. (Taishan Nuclear Power Joint|Director|June 2018||No|
||Venture Co., Ltd.)|||||
||Guangdong Yudean Holdings Western|||||
|Li Fangji||Director|July 2018||No|
||Investment Co., Ltd.|||||
||Guangdong Yudean Huadu Natural Gas||September|||
|Zheng Yunpeng||Board chairman|||No|
||Thermal Power Co., Ltd.||2018|||
||Guangdong Yudean Bohe Coal Power|||||
|Zheng Yunpeng||Board chairman|July 2018||No|
||Co.,Ltd.|||||
|||Executive||||
|Zheng Yunpeng|Shenzhen Guangqian Power Co., Ltd.||July 2018||No|
|||director||||
||Guangdong Yudean Real estate Investment|Executive||||
|Zhou Xian|||July 2017||No|
||Co., Ltd.|director||||
||Guangzhou Development New Energy|Executive||||
|Zhang Xueqiu|||January 2015||No|
||Investment Management Co., Ltd.|director||||
||Guangzhou Development New City|Executive||||
|Zhang Xueqiu|||May 2014||No|
||Investment Co., Ltd.|director||||
||Guangzhou Development Nansha|Executive||||
|Zhang Xueqiu|||May 2014||No|
||Investment Management Co., Ltd.|director||||
|||A||||
|Sha Qilin|Guangdong Nanguo Desai Law firm||March 2007||No|
|||lawyer,Partner||||
|Shen Hongtao|Accounting dept , Jinan University|Professor|April 2012||Yes|
|||Independent||||
|Shen Hongtao|Guangsheng Nonferrous Metal Co., Ltd.||April 2015||Yes|
|||Director||||
||Guangzhou Yuexiu Finance Holding Group|Independent|November|||
|Shen Hongtao|||||Yes|
||Co., Ltd.|Director|2017|||
|||Independent|September|||
|Shen Hongtao|Guangzhou Store Co., Ltd.||||Yes|
|||Director|2016|||
|Wang Xi|Lingnan College, Sun Yat-sen University|Professor|July 2006||Yes|
|Wang Xi|Palm Graden Co., Ltd.|Independent|May 2014||Yes|

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
|||||||
|-|-|-|-|-|-|
||||||Drawing|
||||Start date of|End date of|remuneration and|
|Name|Other unit|Title||||
||||office term|office term|allowance from of|
||||||other unit(Y/N)|
|||Director||||
|||Independent||||
|Wang Xi|Guangzhou Securities Co., Ltd.||December 2012||Yes|
|||Director||||
|||Independent||||
|Wang Xi|Zhuhai Rural Commercial Bank Co., Ltd.||July 2014||Yes|
|||Director||||
|||General||||
|||Manager of M||||
|Yin Zhongyu|Greal Wall Secutities Co., Ltd.||March 2009||Yes|
|||& A||||
|||Department||||
||Provincial Key Laboratory, School of|||||
|Ma Xiaoqian|Electric Power, South China University of|Director|July 2014||Yes|
||Technology|||||
||Guangzhou Environmental protection|External|September|||
|Ma Xiaoqian|||||Yes|
||Investment Group Co., Ltd.|director|2016|||
|||Independent||||
|Ma Xiaoqian|Guangzhou Development Group Co., Ltd.||June 2016||Yes|
|||Director||||
||Guangdong Red Bay Power Generation|||||
|Zhang Dewei||Director|April 2010||No|
||Co.,Ltd.|||||
|||Chairman of the||||
|Zhang Dewei|Yangjiang Nuclear Power Co., ltd.|Supervisory|June 2016||No|
|||Committee||||
||Taishan Nuclear Power Industry Investment|||||
|Zhang Dewei|Co., Ltd.（Taishan Nuclear Power Joint|Supervisor|June 2016||No|
||Venture Co., Ltd.）|||||
|||Chairman of the||||
||Guangdong Yudean Jinghai Power|||||
|Li Baobing||Supervisory|June 2018||No|
||Generation Co., Ltd.|||||
|||Committee||||
|||Chairman of the||||
|Li Baobing|Guangdong Power Development Co., Ltd.|Supervisory|July 2018||No|
|||Committee||||
|Li Baobing|CSPG Energy Co., Ltd.|Supervisor|June 2018||No|
|Li Baobing|Yudean Group .Guizhou Co., Ltd.|Director|August 2018||No|
||Institute of industrial Economics, Jinan|Professor,||||
|Zhu Weiping|||January 2000||Yes|
||University|President||||
|||Independent|November|||
|Zhu Weiping|Guangsheng Nonferrous Metal Co., ltd.||||Yes|
|||director|2016|||
|||Professor,||||
|Jiang Jinsuo|Guangdong finance Institute||January 2013||Yes|
|||Headof Dept||||
||Guangdong Yudean Bohe Coal Power|||||
|Li Qing||Supervisor|December 2010||No|
||Co.,Ltd.|||||
|Li Qing|Lincang Yudean Energy Co., Ltd.|Supervisor|January 2015||No|
||Guangdong Yudean Yongan Natural Gas|||||
|Li Qing||Supervisor|June 2016||No|
||thermal Power Co., Ltd.|||||
||Guangdong Yudean Qujie Natural Gas|||||
|Li Qing||Supervisor|April 2015||No|
||Power Generation Co., Ltd.|||||

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
|||||||
|-|-|-|-|-|-|
||||||Drawing|
||||Start date of|End date of|remuneration and|
|Name|Other unit|Title||||
||||office term|office term|allowance from of|
||||||other unit(Y/N)|
||South Offshore wind power Union|||||
|Li Qing||Supervisor|June 2012||No|
||Development Co., Ltd|||||
|Yang||Vice Board||||
||Shanxi Yudean Energy Co., Ltd.||August 2015||No|
|Xuanxing||chairman||||
|Yang||||||
||Guangdong Yuejia Power Co., Ltd.|Director|May 2015||No|
|Xuanxing||||||
|Yang||||||
||Zhanjiang Electric Power Co., Ltd.|Board chairman|May 2015||No|
|Xuanxing||||||
|Yang|Guangdong Yudean Zhanjiang Wind Power|||||
|||Board chairman|July 2016||No|
|Xuanxing|Generation Co., Ltd.|||||
|Yang||||||
||Zhanjiang Zhongyue Energy Co., Ltd.|Board chairman|January 2015||No|
|Xuanxing||||||
|Yang|Guangdong Yongan Natural Gas Thermal|||||
|||Board chairman|June 2016||No|
|Xuanxing|Power Co., Ltd.|||||
|Yang|Guangdong Huizhou Pinghai Power|Vice Board||||
||||March 2017||No|
|Xuanxing|Generation Plant Co., Ltd.|chairman||||
|Yang|Guangdong Red Bay Power Generation Co.,|||||
|||Director|May 2014||No|
|Xuanxing|Ltd.|||||
|||Convenor of the||||
|Yang||||||
||Shenzhen Guangqian Power Co., Ltd.|Board of|August 2011||No|
|Xuanxing||||||
|||Supervisors||||
|Liu Hui|Guangdong Yudean Shipping Co., Ltd.|Director|June 2017||No|
||Maoming Zhenneng Thermoelectric Co.,||September|||
|Liu Hui||Director|||No|
||Ltd.||2010|||
||Guangdong Yudean Humen Power|||||
|Liu Hui||Director|October 2017||No|
||Generation Co., Ltd.|||||
||Guangdong Yudean Holdings Western|Vice Board||||
|Liu Hui|||August 2014||No|
||Investment Co., Ltd.|chairman||||
||Guangdong Yudean Bohe Coal Power||September|||
|Liu Hui||Director|||No|
||Co.,Ltd.||2010|||
||Guangdong Yudean Huadu Natural Gas|||||
|Liu Hui||Director|July 2016||No|
||Thermal Power Co., Ltd.|||||
|||Vice Board||||
|Liu Hui|Yunnan Yuntou Weixin Energy Co., Ltd.||March 2017||No|
|||chairman||||
||Guangdong Guohua Yudean Taishan Power|||||
|Liu Hui||Supervisor|December 2018||No|
||Generation Co., Ltd.|||||
|||Vice Board||||
|Lui Hui|Yunnan Yuntou Weixin Coal Co., Ltd.||March 2017||No|
|||chairman||||
||Guangdong Electric Power Industry Fuel|||||
|Liu Wei||Director|December 2017||No|
||Co., Ltd.|||||
||||November|||
|Liu Wei|Guangdong Yudean Finance Co., Ltd.|Director|||No|
||||2017|||
||Guangdong Huizhou Natural Gas Power|||||
|Liu Wei||Director|October 2017||No|
||Generation Co., Ltd.|||||
|Liu Wei|Guangdong Yudean Jinghai Power|Director|June 2017||No|

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
|||||||
|-|-|-|-|-|-|
||||||Drawing|
||||Start date of|End date of|remuneration and|
|Name|Other unit|Title||||
||||office term|office term|allowance from of|
||||||other unit(Y/N)|
||Generation Co., Ltd.|||||
||Guangdong Red Bay Power Generation Co.,|||||
|Liu Wei||Director|December 2017||No|
||Ltd.|||||
||Guangdong Wind Power Generation Co.,||Novermber|||
|Liu Wei||Director|||No|
||Ltd.||2017|||
||Guangdong Yudean Electric Power Sales|||||
|Liu WEI||Director|December 2017||No|
||Co., Ltd.|||||
||Guangdong Yudean property Insurance Co.,|||||
|Liu Wei||Director|April 2017||No|
||Ltd.|||||
|||Convenor of the||||
|Liu Wei|Guangdong Yudean Shipping Co., Ltd.|Board of|May 2007||No|
|||Supervisors||||
|Liu Wei|Shenzhen Capital Group Co., Ltd.|Supervisor|August 2016||No|

 Punishments to the current and leaving board directors, supervisors and senior managers during the report period by securities regulators in the recent three years
□ Applicable√Not applicable
IV. Remuneration to directors, supervisors and senior executives
Decision-making procedures, basis for determination and actual payment of the remuneration to directors , supervisors and senior executives
Directors, supervisors and senior executives of the Company shall obtain labor remuneration and enjoy corresponding employee benefits according to their position and the Company's wage system. Except such remuneration and benefits, no other remuneration and fringe benefits shall be additionallyprovided；The allowance for the independent directors and independent supervisors of the Company shall be paid according to the standards approved by the shareholders' general meeting. At the end of the report period, the directors, supervisors and senior executives received the actual remuneration before tax was total RMB 4.3232 million. Remueration to directors, supervisors and senior executives in the reporting period
In RMB10,000
||||||||
|-|-|-|-|-|-|-|
||||||Total remuneration|Remuneration actually|
|Name|Positions|Sex|Age|Office status|received from the|receivect at the end of|
||||||shareholder|the reporting period|
|Wang Jin|Board chairman|Male|55|In Office|32.4|No|
|Rao Subo|Director|Male|54|In office||Yes|
|Wen Lianhe|Director|Male|50|In office||Yes|
|Wen Shufei|Director|Female|54|In office||Yes|
|Chen Ze|Director|Male|49|In office||Yes|
|Li Fangji|Director|Male|51|In office||Yes|
||Director, General||||||
|Zheng Yunpeng||Male|50|In office|32.4|No|
||Manager||||||
|Zhou Xian|Director|Male|45|In office||Yes|

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
||||||||
|-|-|-|-|-|-|-|
|Chang Changlai|Director|Male|55|In office|65.82|No|
|Zhang Yueqiu|Director|Male|52|In Office||Yes|
|Sha Qilin|Independent director|Male|58|In office|10.14|No|
|Shen Hongtao|Independent director|Female|51|In office|8|No|
|Wang Xi|Independent director|Male|48|In office|9.07|No|
|Ma Xiaoqian|Independent director|Male|54|In office|9.61|No|
|Yin Zhongyu|Independent director|Male|49|In office|7.46|No|
||Chairman of the||||||
|Zhang Dewei||Male|57|In office||Yes|
||Supervisory Committee||||||
|Li Baobing|Supervisor|Male|44|In office||Yes|
|Zhu Weiping|Independent Supervisor|Male|61|In office|5.36|No|
|Jiang Jinsuo|Independent Supervisor|Male|50|In office|5.71|No|
|Lin Weifeng|Employee supervisor|Male|50|In office|25.51|No|
|Li Qing|Employee supervisor|Male|41|In office|31.64|No|
|Yang Xuanxing|Deputy General manager|Male|53|In office|61.82|No|
|Liu Hui|Deputy General manager|Female|53|In office|58.65|No|
||Deputy General manager,||||||
|Liu Wei|Finance Manager, Board|Male|39|In office|54.06|No|
||secretary||||||
|Huang Zhenhai|Board chairman|Male|56|Dimission||Yes|
||Director, General||||||
|Yao Jiheng||Male|53|Dimission|14.67|No|
||Manager||||||
|Zhao Li|Supervisor|Female|46|Dimission||Yes|
|Total|--|--|--|--|432.32|--|

Incentive equity to directors, supervisors or/and senior executives in the reporting period
□Applicable√Not applicable
V. Particulars about employees.
1. Staff jobs, education, job title number and proportion refer to the following pie chart:
|||
|-|-|
|Number of in-service staff of the parent company（person）|1,156|
|Number of in-service staff of the main subsidiaries（person）|5,579|
|Total number of the in-service staff（person）|6,735|
|Total number of staff receiving remuneration in the current||
||6,768|
|period（person）||
|The number of the parent company and the main subsidiary’s||
||1,475|
|retired staffs who need to bear the cost（person）||
|Professional||
|Classified according by Professions|Number of persons（person）|
|Production|4,272|
|Sales|94|
|Technical|1,302|
|Financial|196|

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
|||
|-|-|
|Administrative|844|
|Other|27|
|Total|6,735|
|Education||
|Classified according by education background|Number of persons（person）|
|Master|208|
|Universities|3,069|
|Colleges|1,933|
|Technical secondary school|347|
|High school and Below|1,178|
|Total|6,735|

 2. Remuneration policies
Thecompany’s staff received the salaries and enjoyed the benefits according to the relevant provisions stipulated in thecompany’s Salary Management Approach. The salary of thecompany’s staff (Except the management staff who categorized in the annual salary system) basically constituted by the basic salary, post salary, performance salary, allowance, overtime wages and special bounties and so on.
3.Training plan
The company formulated the Temporary Provisions for the Management of Staff Education and Training. The staff training was adhered to the principle of learning integrated with application, learning by the needs and stressing of practical effect, focused on the main contents of the post and the practical operation skills. The training contents included the new staff orientation training, post training, continuing education, overseas training and other trainings.
4. Outsourcing situation
□ Applicable√ Not applicable
Guangdong Electric Power Development Co., Ltd. 2018Annual Report IX. Administrative structure
I.Basic state of corporate governance
The company is strictly in accordance with “Company Law”, “Securities Law”, “Governance Standards of Listed Company”, “Listing Rules of Stocks” and other laws and regulations requirements, constantly perfects the corporate governance structure, standardizes corporate operations and further enhances the level of corporate governance. The company has established the corporate “Articles of Association”, the rules of procedure of threemeetings’ operation, the working rules of the board of directors special committee, the working rules of the general manager of company and working conditions and internal control system which basically covers all aspects of the operation management like financial management, investment management, information disclosure, associated trade, external guarantees and fund-raising. These systems are implemented better. During the reporting period, the company has amended part of the clauses in “Inside Information Management System” based on the original systems and the requirements of the CSRC.
Does there exist any difference in compliance with the corporate governance , the PRC Company Law and the relevant provisions of CSRC,
□ Yes√ No
There exist no difference in compliance with the corporate governance , the PRC Company Law and the relevant provisions of CSRC.
II. Independence and Completeness in business, personnel , assets, organization and finance
The company has implemented separation of operation,separation of human resource, separation of assets, separat ion of organization and financial independence between controlling shareholder. And it has a complete business and operations management ability. 1. Separation of operation: the Company is principally engaged in the electricity generation and sales to Guangdong Electric Power Holding Co.(“GPHC”) directly. The Company has subcontracted the subsidiary of Yudean, the holding company, to purchase the fuels, which is solely for the purpose of better utilization of large-scale purchase and cost control. 2. Separation of human resource: the General Manager and all his subordinates, Secretary to the Board of Directors, Financial Manager are paid by the Company and take no position in the holding company. 3. Separation of assets: the Company has independent production system, supporting system and other facilities. The Company owns its intangible assets such as intellectual property rights, trademarks and non-patent technology; 4. Separation of organization: the Company has established integrated operating institution of its own.5.. Financial independence: the Company has an independent financial department and has established independent accounting system and financial management system. It opened independent bank accounts for its own operation.
III. Competition situations of the industry
√Applicable□ Not Applicable
|||||||
|-|-|-|-|-|-|
||Name of the|Property of||||
|Problem|||||Time Schedule of Works and|
||Controlling|the Controlling|Problems and Causes|Countermeasures||
|Types|||||Follow-up Program|
||Shareholders|Shareholders||||
||||Guangdong Energy|On January 3, 2018, the|Our company will actively|
||||Group was|company disclosed|fulfill the trusteeship and|
||||established when|Announcement on|responsibilities according to|
||Guangdong||Guangdong|Controlling Shareholders'|the “Equity Custody|
|Horizontal|Energy Group|Local SASAC|Provincial|Commitment to Perform|Agreement” and participate in|
|competitions|||Government took|Related Matters (public|the management and|
||Co., Ltd.||the lead in the|notice No.: 2018-01); on|decision-making and|
||||implementation of|January 13, 2018, the|inspection and supervision of|
||||the “plant and|company disclosed|the custody target. The|
||||network separation”|Announcement of|company will cooperate with|

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
||||
|-|-|-|
|power system|Related Transactions on|Guangdong Energy Group to|
|reform in China, and|the "Equity Custody|push forward the defect|
|was separated and|Agreement" signed with|rectification of the underlying|
|formed from|Guangdong Energy|assets, study the rectification|
|Guangdong|Group Co., Ltd. (public|and solution to the defects and|
|Provincial Power|notice No.: 2018-04). In|obstacles in the relevant assets|
|Group Corporation.|order to avoid|that do not meet the listing|
|It is the largest and|competition in the same|conditions, promote relevant|
|most powerful|industry and to fulfill the|rectification work from the|
|power generation|relevant horizontal|aspects of improving project|
|enterprise in|competition|approval or approval|
|Guangdong|commitments, Y|procedures, clarifying land and|
|Province. GED is|Guangdong Energy|property ownership, enhancing|
|the only listed|Group has signed the|asset profitability, and|
|company under the|Entrusted Management|implementing legal|
|Guangdong Energy|Agreement with the|compliance. For custody assets|
|Group and is|company, and all the|that meet the listing conditions|
|engaged in power|shareholders' rights other|in the future, Guangdong|
|production business.|than the ownership,|Energy Group will, in|
|At present,|income, and disposal|accordance with the unified|
|Guangdong Energy|rights of the company|deployment of the Guangdong|
|Group still has some|that temporarily fails to|Provincial Party Committee|
|remaining power|meet the listing|and the provincial government|
|generation assets|conditions in the|and the overall requirements|
|that have not been|company's custody area|for the reform of state-owned|
|included in GED|of the Guangdong Energy|enterprises, actively create|
|temporarily.|Group are escrowed to|conditions for the injection into|
|Considering the|our company.|listed companies in accordance|
|situation of these||with the status of the assets|
|power generation||under custody, combined with|
|assets, it is||enterprise restructuring,|
|temporarily not in||structural adjustment|
|line with the listing||arrangements, electricity|
|conditions, and it is||market and capital market|
|difficult to solve||conditions.|
|these problems in|||
|the short term.|||
|Therefore, there is a|||
|certain degree of|||
|horizontal|||
|competition.|||

IV. Annual General Meeting and ExtraordinaryShareholders’ Meetings in the Reporting Period
1.Annual General Meeting
|||||||
|-|-|-|-|-|-|
|||Investor||||
|Sessions|Type|participation|Meeting Date|Disclosure date|Disclosure index|
|||ratio||||
||||||Name of Announcement :Announcement of|
||||||Resolution of the first Provisional|
|The first provisional|Provisional|||||
||||January|January|shareholders’ general meeting in 2018，|
|shareholders’ General|shareholders’|72.87%||||
||||29,2018|30,2018|Announcement No.:2018-09,|
|meeting in 2018|General Meeting|||||
||||||Published in China Securities Daily, Securit|
||||||ies Times and http//.www.cninfo.com.cn|
||||||Name of Announcement :Announcement of|
|The Second|||||Resolution of the Second Provisional|
||Provisional|||||
|provisional|||||shareholders’ general meeting in 2018，|
||shareholders’|72.78%|April 9,2018|April 10,2018||
|shareholders’ General|||||Announcement No.:2018-21,|
||General Meeting|||||
|meeting in 2018|||||Published in China Securities Daily, Securit|
||||||ies Times and http//.www.cninfo.com.cn|

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
|||||||
|-|-|-|-|-|-|
||||||Name of Announcement :Announcement of|
||||||Resolution of 2017 shareholders’ general|
|2017 Shareholders’|Annual General|||||
|||72.80%|June 11,2018|June 12,2018|meeting ，Announcement No.:2018-33.|
|general meeting|Meeting|||||
||||||Published in China Securities Daily, Securit|
||||||ies Times and http//.www.cninfo.com.cn|
||||||Name of Announcement :Announcement of|
||||||Resolution of the Third Provisional|
|The Third provisional|Provisional|||||
||||||shareholders’ general meeting in 2018，|
|shareholders’ General|shareholders’|72.65%|June 28,2018|June 29,2018||
||||||Announcement No.:2018-52,|
|meeting in 2018|General Meeting|||||
||||||Published in China Securities Daily, Securit|
||||||ies Times and http//.www.cninfo.com.cn|
||||||Name of Announcement :Announcement of|
|The Fourth|||||Resolution of the Fourth Provisional|
||Provisional|||||
|provisional|||October|October|shareholders’ general meeting in 2018，|
||shareholders’|72.62%||||
|shareholders’ General|||11,2018|12,2018|Announcement No.:2018-52,|
||General Meeting|||||
|meeting in 2018|||||Published in China Securities Daily, Securit|
||||||ies Times and http//.www.cninfo.com.cn|

 2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable√Not applicable
V. Responsibility performance of independent directors in report period
1. The attending of independent directors to board meetings andshareholders’ general meeting
|||||||||
|-|-|-|-|-|-|-|-|
|The attending of independent directors||||||||
||Number of|||||Failure to personally||
||||Number of|Number of||||
||Board meetings|Number of||||attend board|Times for|
|Independent|||meetings|attendances|Number of|||
||necessary to be|spot||||meetings|attending the|
|Directors|||attended by|by|absence|||
||attended in the|attendances||||successively twice|AGM|
||||Communication|representative||||
||reporting period|||||(Yes/No)||
|Sha Qilin|7|5|2|0|0|No|5|
|Shen Hongtao|7|3|2|2|0|Yes|4|
|Wang Xi|7|5|2|0|0|No|5|
|Ma Xiaoqian|7|5|2|0|0|No|5|
|Yin Zhongyu|7|5|2|0|0|No|2|

 Notes to failure to personally attend Board Meetings Successively Twice
During the reporting period, independent director Shen Hongtao was unable to attend the fourth meeting of the ninth board of directors and the fifth meeting of the ninth board of directors in person due to business. He entrusted independent director Sha Linqi to attend all the above meetings and exercise voting rights. Independent Director Shen Hongtao carefully reviewed the meeting materials and performed his duties independently and impartially before the board meeting. According to the power of attorney issued by him, there is no objection to all the topics of the meetings.
2.Objection of independent directors on some relevant issues
Objection of independent directors on some relevant issues
□ Yes√No
Independent directors proposed no objection against the relevant matters in the reporting period.
Guangdong Electric Power Development Co., Ltd. 2018Annual Report 3. Other notes to duty performance of independent directors
Has an independentdirector’s advice to the Company been accepted
√Yes□No
Explanation on acceptance of or failure to accept an independentdirector’s advice to the Company.
Nil
VI. Duty Performance of Special Committees under the Board of Directors in the Reporting Period The Ninth board of directors of the company comprises committee of strategy, audit, budget, nomination and remuneration and appraisal. Each professional committee has established their corresponding working rules and put forward related professional opinions and suggestions according to their respective duties to the company operating development, which promoted the standardized operation of the company. In 2018, the duty fulfillment conditions of each special committee of the company's board of directors are as follows:
1. According to relevant regulations of China Securities Regulatory Commission and Shenzhen Stock Exchange, the Audit Committee of the Board of Directors of the Company conscientiously has performed its duties and participated in the annual audit, internal control supervision, risk management, semi-annual report review and major accounting treatment review of the Company. During the reporting period, the Audit Committee of the ninth Board of Directors held a total of 4 meetings to review and form review opinions on the Company's 2017 Annual Report, 2017 Internal Control Evaluation Report, 2017 Comprehensive Risk Management Report, 2018 Audit Institution Hiring, Provision for Impairment of Assets, 2018 Semi-Annual Report, Adjustment of Depreciation Years of Fixed Assets in Shajiao A Power Plant and other proposals, which played an important role in the effective decision-making of the Board of Directors.
2. The Board of Directors' Remuneration and Appraisal Committee reviewed the remuneration of the directors, supervisors and senior management personnel disclosed in this report, and considered that the determination of the remuneration standard and the granting of annual remuneration can be combined with the performance of the respective positions, which is consistent with thecompany’s remuneration management regulations; the remuneration of directors, supervisors and senior management personnel disclosed in the annual report is true. 3. The budget committee of the Ninth board held its first meeting on April 9, 2018 , reviewed and adopted the “Proposal on Illustration of Budget Implementation in 2017 and Budget Preparation in 2018”.
4. On June 1, 2018, the Nomination Committee of the Board of Directors deliberated the Proposal on Recommending Zheng Yunpeng and Li Fangji as Company Director Candidates and the Proposal on Recommending Zheng Yunpeng as Company General Manager by means of communication voting, and carefully examined the qualifications of relevant candidates.
VII. Work of the supervisory Committee
Did the supervisory Committee find any risk existing in performing the supervision activities in the reporting period
□Yes√No
The supervisory Committee has no objection against any matters under supervision in the reporting period VIII. Assessment and incentive Mechanism for Senior executives
Performance evaluation and incentive system will be employed by senior managers on the basis of enterprise salary management system.
Guangdong Electric Power Development Co., Ltd. 2018Annual Report IX. Internal control situations
1.Specific situations on major defects of internal control discovered during report period
□ Yes√ No
2.Self-evaluation report on internal control
|||||
|-|-|-|-|
|Disclosure date of appraisal report on internal control||April 12,2019||
|||Juchao Website:（http://www.cninfo.com.cn）, Selfevaluation report of||
|Disclosure index of appraisal report on internal control||||
|||internal control in 2018||
|Proportion of total unit assets covered by appraisal in||||
|the total assets of the consolidated financial statements||95 %||
|of the company||||
|Proportion of total unit incomes covered by appraisal in||||
|the total business incomes of the consolidated financial||99 %||
|statements of the company||||
|Standards of Defects Evaluation||||
|Category|Financial Report||Non-financial Report|
||Qualitative criteria of evaluation towards inner control deficiency of|||
||financial report made by company are as follows: Ⅰ, the inner||Qualitative criteria of evaluation|
||control of financial report should be considered as “significant|||
||||towards inner control deficiency of|
||deficiency” if the following circumstances (including but not limited|||
||||non-financial report made by|
||to) occurred: ① the ineffective environmental control; ②|||
||||company are as follows: ①|
||irregularities appearing between company directors, supervisors and|||
||||significant deficiency means one or|
||senior executives; ③ serious mistakes in the financial statements of|||
||||more combinations of control|
||the current period found by external audit but not the inner control in|||
||||deficiency which may result in|
||the process of operating; ④ ineffective supervision of inner control|||
||||seriously deviating from control|
||from directorate and inner audit institution. Ⅱ, the inner control of|||
||||goals. ② serious deficiency means|
||financial report should be considered as “serious deficiency” if the|||
|Qualitative criteria|||one or more combinations of|
||following circumstances occurred: ① accounting policy chosen and|||
||||control deficiency whose severity|
||applied is not based on the GAAP; ② anti-irregularity procedure|||
||||and financial result are less than|
||and control measures are not established; ③ very few relative|||
||||those of significant deficiency with|
||control measures are established or implemented in terms of the|||
||||possibility of deviating company|
||accounting treatment related to unconventional or special transaction;|||
||||from its control goals. ③ common|
||④ one or more deficiencies exist in the control process of final|||
||||deficiency means other control|
||financial report and the authenticity, accuracy and integrity of|||
||||deficiencies apart from significant|
||establishment can not be assured reasonably. Ⅲ common|||
||||and serious deficiencies.|
||deficiency means, apart from the above “significant deficiency” and|||
||“serious deficiency”, other deficiencies exist in the inner control|||
||process.|||
||A quantitative criterion regards operating receipt and gross value of|||
||assets as its yard stick. ① inner control deficiency may lead to loss|||
||||①the significant deficiency means|
||related to profit statement, which is measured by operating receipt.|||
||The amount of misstatement in financial report resulted from the||that the direct property loss is|
||control deficiency or its combination is less than 0.5 percent of the||between 50 million yuan .(2) the|
||operating receipt, which could be considered as the common||significant deficiency means hat the|
|Quantitative standard|deficiency. That would be considered as serious deficiency if the||direct property loss is between 30|
||amount of misstatement in financial report resulted from the control||million yuan (including 30 million|
||deficiency or its combination is more than 0.5 percent but less than 1||yuan) ; the serious deficiency means|
||percent of the operating receipt. And that would be regarded as||that the direct property loss is|
||significant deficiency if that is more than 1 percent of the operating||between 30 million.|
||receipt. ② inner control deficiency may lead to loss related to assets|||
||management, which is measured by total assets. The amount of|||

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
|||
|-|-|
||misstatement in financial report resulted from the control deficiency|
||or its combination is less than 0.5 percent of the total assets, which|
||could be considered as the common deficiency. That would be|
||considered as serious deficiency if the amount of misstatement in|
||financial report resulted from the control deficiency or its|
||combination is more than 0.5 percent but less than 1 percent of the|
||total assets. And that would be regarded as significant deficiency if|
||that is more than 1 percent of the total assets.|
|Number of major||
|defects in financial|0|
|reporting（a）||
|Number of major||
|defects in non financial|0|
|reporting (a)||
|Number of important||
|defects in financial|0|
|reporting（a）||
|Number of important||
|defects in non financial|0|
|reporting（a）||

X. Internal Control audit report
√ Applicable□Not applicable
|||
|-|-|
|Review opinions in the internal control audit report||
|We believe that Guangdong Electric Power Development Co., Ltd. has maintained effective internal control over financial reportingin all material respects as of 31 December 2018 as per the Basic Rules for Enterprise Internal Control and relevant regulations.||
|Disclosure date of audit report||
||Disclosure|
|of internal control (full-text)||
|Index of audit report of||
||April 12,2019|
|internal control (full-text)||
|Internal audit report’s opinion|Juchao Website: （http://www.cninfo.com.cn）2018 Audit report of internal control|
|Type of audit report on internal||
||Unqualified auditor’s report|
|control||
|Whether there is significant||
||No|
|defectin non-financial report||

Has the CPAs issued a qualifiedauditor’s report of internal control .
□ Yes√No
Does the internal control audit report issued by the CPAs agree with the self-assessment report of the Board of Directors
√Yes□No
Guangdong Electric Power Development Co., Ltd. 2018Annual Report X. Corporate Bond
Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and not yet due or due butnot folly cashed on the approval date of annual report
Yes
1.Basic information of corporate bonds
|||||||||
|-|-|-|-|-|-|-|-|
||||||Bond balance|||
||Bond short|||||Interest||
|Bond name||Bond code|Issue day|Due day|(RMB||Servicing way|
||name|||||rate||
||||||10,000)|||
||||||||Using simple interest rate on a|
|2012 Corporate||||||||
||||||||yearly basis, regardless of|
|bonds of||||||||
||||||||compound interest. Due|
|Guangdong|12 Yudean||March|March||||
|||112162.SZ|||4,030.65|4.95%|payments once a year, maturing|
|Electric Power|Bond||18,2013|17,2020||||
||||||||debt at a time. In the final phase,|
|Development||||||||
||||||||interest is paid together with the|
|Co., Ltd..||||||||
||||||||principal redemption.|
|Corporate bonds listed or||||||||
|||Shenzhen Stock Exchange||||||
|trading places||||||||
|Investor Proper Arrangement||Not applicable||||||
|||1. Status of bond redemption||||||
|||According to the “Prospectus for Public Offering 2012 Corporate Bond by Guangdong Electric||||||
|||Power Development Co., Ltd.” (hereinafter referred to as the “Prospectus”), the company released||||||
|||“the First Suggestive Announcement of Guangdong Electric Power Development Co., Ltd on the||||||
|||Coupon Rate of ‘12 Yuedian Debt’ Will Not Raised and on the Bondholders' Repurchase||||||
|||Implementation Measures” (Announcement No.: 2018-07)”, “the Second Suggestive||||||
|||Announcement of Guangdong Electric Power Development Co., Ltd on the Coupon Rate of ‘12||||||
|||Yuedian Debt’ Will Not Raised and on the Bondholders' Repurchase Implementation Measures”||||||
|||(Announcement No.: 2018-08)”, “the Third Suggestive Announcement of Guangdong Electric||||||
|||Power Development Co., Ltd on the Coupon Rate of ‘12 Yuedian Debt’ Will Not Raised and on||||||
|||the Bondholders' Repurchase Implementation Measures” (Announcement No.: 2018-10)”||||||
|||respectively on January 29, 2018, January 30, 2018 and January 31, 2018. The bondholders have||||||
|During the reporting period,||||||||
|||the right to choose to sell all or part of the “12 Yuedian Debt” held to the company in full or in||||||
|interest payment situation of the||||||||
|||part at par value during the investor's put-back declaration period, and the put-back price is||||||
|company bonds||||||||
|||RMB100/sheet (excluding interest). The put-back declaration date is from January 29, 2018 to||||||
|||January 31, 2018. According to the bond put-back declaration data provided by China Securities||||||
|||Depository and Clearing Co., Ltd. Shenzhen Branch, the put-back quantity of “12 Yuedian Debt”||||||
|||was 11,596,935 sheets, and the put-back amount was RMB 1,217,087,933.25 (including interest),||||||
|||and the remaining custody quantity was 403,065 sheets. On March 16, 2018, the company paid the||||||
|||principal and interest of some of the bonds of this “12 Yuedian Debt” back to the designated bank||||||
|||account of China Securities Depository and Clearing Co., Ltd. Shenzhen Branch in full amount,||||||
|||and paid to the investor’s fund account on March 19, 2018.||||||
|||2. Status of bond interest payment||||||
|||On March 19, 2018, the company paid the bond interest for the current year to all the current||||||
|||bondholders who have registered in China Securities Depository and Clearing Co., Ltd. Shenzhen||||||
|||Branch by the closing of Shenzhen Stock Exchange on the afternoon of March 16, 2018.||||||

Guangdong Electric Power Development Co., Ltd. 2018Annual Report
|||
|-|-|
||The term of the current bonds is 7 years, attaching the option that the issuer will redeem at the end|
||of the fifth year, the option that the issuer raises the coupon rate and the option that the investors|
||will put back.|
||1. On January 29, 2018, the company disclosed the “Announcement of Guangdong Power|
||Development Co., Ltd. on Abandoning the Exercise of the Issuer’s Redemption Option of “12|
||Yuedian Debt” (Announcement No.: 2018-06). March 19, 2018 is the 5th interest-bearing annual|
||interest payment date of “12 Yuedian Debt”. According to the “Prospectus”, the company has the|
||right to decide whether to exercise the issuer’s redemption option on the 30th transaction date|
||before the interest payment date of the 5th interest-bearing year of the current bond. The company|
||decided to abandon the exercise of the "12 Yuedian Debt" issuer's redemption option, that is, "12|
||Yuedian Debt" continued to exist within the duration.|
||2. The company released “the First Suggestive Announcement of Guangdong Electric Power|
||Development Co., Ltd on the Coupon Rate of ‘12 Yuedian Debt’ Will Not Raised and on the|
||Bondholders' Repurchase Implementation Measures” (Announcement No.: 2018-07)”, “the|
||Second Suggestive Announcement of Guangdong Electric Power Development Co., Ltd on the|
|If the corporate bonds attached|Coupon Rate of ‘12 Yuedian Debt’ Will Not Raised and on the Bondholders' Repurchase|
|to special clauses to the issuer|Implementation Measures” (Announcement No.: 2018-08)”, “the Third Suggestive Announcement|
|or the investors such as option|of Guangdong Electric Power Development Co., Ltd on the Coupon Rate of ‘12 Yuedian Debt’|
|clause and exchangeable clause,|Will Not Raised and on the Bondholders' Repurchase Implementation Measures” (Announcement|
|please specify the|No.: 2018-10)” respectively on January 29, 2018, January 30, 2018 and January 31, 2018.|
|implementation status of the|According to the “Prospectus”, the issuer has the right to decide to raise the coupon rate for the|
|corresponding clauses. (When|next two years at the end of the fifth year of the “12 Yuedian Debt”. In January 2018, the|
|applicable)|company's current bond has a coupon rate of 4.95% for the first five years of the duration of the|
||bond. At the end of the fifth year of the bond's duration, the company chose not to raise the|
||coupon rate, which is the 2-year coupon rate after the current bond's duration will still remain at|
||4.95%. According to the "Prospectus", the bondholders can declare the put-back in a specified|
||manner within 3 trading days from the date of the issuer's announcement on whether to raise the|
||coupon rate and the increase rate of the current bond. The “12 Yuedian Debt” put-back declaration|
||date is from January 29, 2018 to January 31, 2018.|
||3. On March 17, 2018, the company disclosed the “Announcement of Guangdong Power|
||Development Co., Ltd. on the Put-back Results of the Corporate Bonds ‘12 Yuedian Debt’”|
||(Announcement No.: 2018-14). According to the bond put-back declaration data provided by|
||China Securities Depository and Clearing Co., Ltd. Shenzhen Branch, the put-back quantity of “12|
||Yuedian Debt” was 11,596,935 sheets, and the put-back amount was RMB 1,217,087,933.25|
||(including interest), and the remaining custody quantity was 403,065 sheets. On March 16, 2018,|
||the company paid the principal and interest of some of the bonds of this “12 Yuedian Debt” back|
||to the designated bank account of China Securities Depository and Clearing Co., Ltd. Shenzhen|
||Branch in full amount, and paid to the investor’s fund account on March 19, 2018.|

2. Bond trustee and the credit rating agency information
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Bond trustee：|||||||||||
|||||22/F, CITIC Securities Building ,|||||||
||CITIC Securities|||||||Song Yilan,|||
|Name||Office||No.48. Liangmaqiao Road,|||Contact||Tel|010-60838888|
||Co., Ltd.|||||||Yang Xin|||
|||||Chaoyang District , Beijing|||||||
|The credit rating agencies which follow and rate the corporate bond during the reporting period|||||||||||
|||||||8/F, Anji Building, No.760, Tibet South Road,|||||
|Name|CCXR||||Office address||||||
|||||||Huangpu District, Shanghai.|||||
|During the report period, the bond trustee,|||||||||||
|credit rating agency employed by the|||||||||||
|company that have changed, reasons for|||Not applicable||||||||
|the change,performing procedures, relevant|||||||||||
|influence on investors,etc( If applicable).|||||||||||

Guangdong Electric Power Development Co., Ltd. 2018Annual Report 3. The usage of corporate bonds to raise money
|||
|-|-|
||According to the relevant contents in the Prospectus of the Issuance of Bonds|
||announced on March 14, 2013, the company planned to use RMB 820 million of the|
|The usage and performance of raised funds||
||raised funds to repay the loans, thus to adjust the debt structure; the remaining RMB|
|from Corporate bonds||
||380 million of the raised funds planned for supplementing the company’s liquidity, so|
||as to improve the company’s funds status.|
|At the end of balance (RMB 10,000)|0|
||The net amount of the funds raised by the bonds had been remitted to the company’s|
||designated bank account on March 20, 2013, of which the amount of RMB 820 million|
|Special fund raising account operation|of the raised funds had been used for repaying the loans, so as to adjust the debt|
||structure; the remaining RMB 380 million of the raised funds used for supplementing|
||the company’s liquidity, so as to improve the company’s funds status.|
|Whether the usage of the raised money||
|corresponding to the purposes of promise,|Yes|
|use plans, and other agreement||

4.Corporate bond rating information
On June 11, 2018, CCXR traced and analyzed the credit status of the company and thecompany’s bonds of “12-Yudean Bonds”, maintained the credit rating of AAA for the main body of the company, with a stable outlook; maintained the credit rating of AAA for the corporate bonds.(The rating results were disclosed on the website: http://www.ccxr.com.cn/, with the title of Tracking and Rating Report for the 2012-Corpoprate Bonds of Guangdong Electric Power Development Co., Ltd(2018).
5.Corporate bond credit mechanism, the debt repayment plans and other security measures
(1)The credit-raising mechanism: No guarantee of thecompany’s bonds. After the comprehensive assessment by CCXR, the credit rating of the main body of the company is AAA with a stable outlook, and the credit rating of the corporate bonds is AAA.
(2)The repayment plan: The interest of the bonds commenced from the date of March 18, 2013, and the interest of the bonds shall be paid once each year within the duration of the bonds after the commencement date of the interest. The date of March 18 of each year in the period from 2014 to 2020 shall be the interest paying day for paying the recent fullyear’s bond interests (If it is not a working day, the payment day will be postponed to the first working day after the day).
During the reporting period, some investors exercised the put-back option. The put-back quantity of “12 Yudean Debt” was 11,596,935 sheets, and the put-back amount was RMB 1,217,087,933.25 (including interest). On March 16, 2018, the company paid the principal and interest of some of the bonds of this “12 Yuedian Debt” back to the designated bank account of China Securities Depository and Clearing Co., Ltd. Shenzhen Branch in full amount, and paid to theinvestor’s fund account on March 16, 2018.
The quantity of remaining bonds is 403,065 sheets, and the maturity date is March 18, 2020. The principal and the final interest will be paid at the expire date. and the corresponding principal and the last fullyear’s interest will be repaid.
(3) Safeguard measures for the repayment: in order to fully and effectively safeguard the interests of the
bondholders, the company had made a series of work plans for the full repayment of the bonds that can be
implemented on time, including the designated department and personnel, arrangement of repaying the bonds,
establishment of the management measures, doing good organization and coordination, strengthening the
Guangdong Electric Power Development Co., Ltd. 2018Annual Report information disclosure and so on, strived to form a set of safeguard measures for ensuing the repayment of the bonds.
6.During the reporting period the bondholder meeting
During the reporting period, the company did not hold bondholders meeting.
7.During the reporting period the bond trustee perform his duties
Thecompany’s bond trustee- CITIC Securities Co., Ltd safeguarded the legal rights of the bond holders with in accordance with the law and performed the obligations stipulated in the Prospectus of the Issuance of Bonds and other publicly disclosed documents, hence continuously followed up and acquainted the relevant information of the company during the entrusting period, issued and provided the regular report of the bond trustee, with in accordance with thecompany’s information being followed up and acquainted.
During the reporting period, CITIC Securities Co., Ltd issued the Report of the 2012 Corporate Bonds Trustee for Guangdong Electric Power Development Co., Ltd(year of 2017) on May 28, 2018, and the report was disclosed on the cninf website on May 30, 2018 by the company.
8.During the reporting period, the company's major accounting data and financial indicators for last 2 years In RMB10,000
|||||
|-|-|-|-|
|Items|2018|2017|At the same time rate of change|
|Earnings before interest, tax,||||
||599,620.49|299,991.27|99.88%|
|depreciation and amortization||||
|Current ratio|62.89%|60.09%|2.80%|
|Debt ratio|57.02%|58.17%|-1.15%|
|Quick ratio|47.35%|41.95%|5.40%|
|EBITDA/Total debts|14.34%|7.47%|6.87%|
|Interest coverage ratio|1.86|1.99|-6.53%|
|Cash interest coverage ratio|5.31|3.9|36.15%|
|EBITDA interest coverage ratio|4.13|2.05|101.46%|
|Loans repayment rate|100 %|100 %|0 %|
|Interest payment rate|100 %|100 %|0 %|

 The material reasons for the changed ratio of the accounting data or financial indicators exceeds30% over the last year
√ Applicable□Not applicable
The extension of the period for the payment of coal-fired funds in the current period has led to an increase in net cash flow and an increase in the multiple of cash interest protection in current operating activities.
9. Information about fulfillment of the stipulations or commitments specified in the Prospectus of the issuance of the bonds during the reporting period
1.On June 6, 2018, the company issued 500,000,000 yuan of phase I ultra short-term financing bonds, with a term
of 180 days. During the reporting period, the payment of the principal and interest was 510,479,452 yuan.
Guangdong Electric Power Development Co., Ltd. 2018Annual Report 2.On August 24, 2018, the company issued 600,000,000 yuan of phase II ultra short-term financing bonds, with a term of 180 days. During the reporting period, the payment of the principal and interest was 0 yuan.
3.On November 28, 2018, the company issued 500,000,000 yuan of phase III ultra short-term financing bonds, with a term of 28 days. During the reporting period, the payment of the principal and interest was 500,978,082 yuan. On December 27, 2018, the company issued 500,000,000 yuan of phase I ultra short-term financing bonds, with a term of 152 days. During the reporting period, the payment of the principal and interest was 0 yuan 4. On March 18, 2013, the Company publicly issued 12 Yudean bonds to the public with a nominal amount of RMB 1,200,000,000 and a term of5+2 years. It is a kind of real-name book-entry corporate bonds. The interest paid back during the reporting period was RMB 59,400,000.
5. On August 27, 2018, the Company issued the first issue of 2018 medium-term notes in the inter-bank market, with a face value of RMB 800,000,000 and a term of 3 years. The interest to be repaid during the reporting period is: 0 yuan.
6. The controlling subsidiary of the Company, Guangdong Huizhou Pinghai Power Plant Co., Ltd., publicly issued “16 Pinghai 01” to the public on September 26, 2016. It was a real-name book-entry corporate bond (“16 Pinghai 01”) with a nominal amount of RMB 700,000,000 and a term of 5 years. The interest paid back during the reporting period was RMB 21,700,000.
10.Information about the bank credit obtaining and use, as well as repayment of the bank loans during the reporting period
In ther report period, the company signed an unconditional available bank amount limit of about RMB 30.436 billion, of which the used amount limit was RMB 9.801 billion, thus the remaining available bank amount limit was about RMB 20.635 billion. In this year, the company repaid bank loans of about RMB17.445 billion, and the balance of bank loans was RMB 28.074 billion.
11. Information about fulfillment of the stipulations or commitments specified in the Prospectus of the issuance of the bonds during the reporting period
The company had committed to pay the principal and interests to the bondholders according to the stipulations of the prospectus of “Yudean Bonds” issuance. During the reporting period, the company strictly fulfilled the above commitments.
During the reporting period, the Company strictly fulfilled the above-mentioned commitments and paid investors in full the principal of some bonds sold back of "12 Yudean Bonds" and the bond interest of this year.
12.Major events occurring in the period of report
Nil
13.Whether there is a guarantor corporate bonds
□ Yes√No
Guangdong Electric Power Development Co., Ltd. 2018Annual Report XI. Financial Report
I. Audit report
|||
|-|-|
|Type of audit opinion|Unqualified audit opinion|
|Date for signing the auditor’s report|April 11,2019|
|Name of audit firm|PWC Certified Public Accountants (special general partnership)|
|Auditing file No.|PWC ZTSZD No.10033(2019)|
|Certified public accountant's name|Wang Bin, Guo Biyu|

GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
FINANCIAL STATEMENTS AND
AUDITOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2018
[English translation for reference only. Should there be any inconsistency between the Chinese and English versions, the Chinese version shallprevail.]
Guangdong Electric Power Development Co., Ltd.
Financial Statements and Auditor's Report
For the Year Ended 31 December 2018
[English translation for referenceonly]
Page
Auditor’s Report 105 - 110
Financial statements for the year ended 31 December 2018
Consolidated and company balance sheets 111 - 114
Consolidated and company income statements 115 -116
Consolidated and company cash flow statements 117 -119
Consolidated statement of changes inowners’ equity 120 - 121
Company statement of changes inowners’ equity 122 - 123
Notes to the financial statements 124 - 255
Supplementary Information 256 - 258
Auditor’s Report
PwC ZT Shen Zi (2019) No. 10033 (Page 1 of 6) To all shareholders of Guangdong Electric Power Development Co., Ltd.,
Opinion
What we have audited
We have audited the accompanying financial statements of Guangdong Electric Power Development Co., Ltd. (hereinafter “Guangdong Electric Power”), which comprise:
• the consolidated and company balance sheets as at 31 December 2018;
• the consolidated and company income statements for the year then ended;
• the consolidated and company cash flow statements for the year then ended;
• the consolidated and company statements of changes inowners’ equity for the year then ended; and
• notes to the financial statements.
Our opinion
In our opinion, the accompanying financial statements present fairly, in all material respects, the consolidated andcompany’s financial position of Guangdong Electric Power as at 31 December 2018, and their financial performance and cash flows for the year then ended in accordance with the requirements of the Accounting Standards for Business Enterprises (“CASs”).
Basis for Opinion
We conducted our audit in accordance with China Standards on Auditing (“CSAs”). Our responsibilities under those standards are further described in theAuditor’s Responsibilities for the Audit of the Financial Statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We are independent of Guangdong Electric Power in accordance with the Code of Ethics for Professional Accountants of the Chinese Institute of Certified Public Accountants (“CICPA Code”), and we have fulfilled our other ethical responsibilities in accordance with the CICPA Code.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
PwC ZT Shen Zi (2019) No. 10033 (Page 2 of 6) Key Audit Matters(Cont’d)
Key audit matters identified in our audit are summarised as follows:
• Impairment of power related fixed assets, intangible assets, construction in progress and goodwill
• Recognition of deferred tax assets related to tax losses
|||
|-|-|
|Key Audit Matters|How our audit addressed the Key AuditMatter|
|(1) Impairment of power related fixed assets,intangible assets, construction in progress andgoodwillPlease refer to Note 2(29)(a), 4(11), (12), (13) and(14) to the financial statements.As Shajiao A Power Plant (“Shajiao A”), a branchof Guangdong Electric Power, is to be shut downand retired in advance and certain subsidiariesare suffering from continuous operation loss,management considers that there are someindications of impairment of the asset groupsrelated to generator units of the aforesaid branchand subsidiaries (basically including fixed assets,intangible assets and construction in progress)and goodwill.An independent professional asset appraisalagency was engaged as an expert to conduct theimpairment assessment on the assets and assetgroups.On 31 December 2018, management conductedimpairment tests for the aforesaid Shajiao A andsubsidiaries, and made a provision forimpairment at the difference between therecoverable amount and the carrying amount ofthe asset groups related to generator units. Therecoverable amount of the asset groups was thehigher of the asset groups’ fair value less disposalcosts and the present value of the estimatedfuture cash flows. The calculations of the fairvalue less disposal costs and the present value ofthe estimated future cash flows involvemanagement’s significant judgements, especiallyestimates on the expected disposal price,expected disposal costs, future sales amount ofelectricity, on-grid electricity price, price of coalused in power generation, capital expenditureand discount rates used in calculation.|1. Based on our understanding of thebusinesses engaged by Guangdong ElectricPower and its subsidiaries (“Yudean Group”)and the requirements of relevant accountingstandards, we evaluated the asset groupsidentified by management and how assetsare allocated to each asset group;2. We understood the competency, professionalquality and objectivity of the independentprofessional asset appraisal agency engaged,and assessed how management made use ofthe agency’s work in the impairmentassessment on the assets and asset groups;3. Based on our understanding of thebusinesses of Yudean Group and theindustry in which Yudean Group operates,we compared with and analysed theassumptions adopted by management,especially the expected disposal price,expected disposal costs, future sales amountof electricity, on-grid electricity price, priceof coal used in power generation, capitalexpenditure and discount rates used incalculation; we evaluated the reasonablenessof the assumptions on fair value less disposalcosts and the present value of the estimatedfuture cash flows;4. We analysed the basis for the adoption of thecash flows which covered more than 5 years,and assessed the reasonableness therein;5. We involve our internal experts in assessingthe appropriateness of the discount rateapplied in the calculation of the presentvalue of future cash flows and whether itfalls within the range applied by othercompanies in industry. We also consideredthe impact of capital cost of related assetgroup on discount rate;|

PwC ZT Shen Zi (2019) No. 10033 (Page 3 of 6) Key Audit Matters(Cont’d)
|||
|-|-|
|Key Audit Matters (Cont’d)|How our audit addressed the Key AuditMatter (Cont’d)|
|(1) Impairment of power related fixed assets,intangible assets, construction in progress andgoodwill (Cont’d)As the carrying amounts of fixed assets,intangible assets, construction in progress andgoodwill with indication of impairment aresignificant to the consolidated financialstatements of Guangdong Electric Power, andthe impairment test involves management’ssignificant estimates and judgements,impairment of power related fixed assets,intangible assets, construction in progress andgoodwill is identified as a key audit matter.|6. We checked accuracy of the input data andformulas used in the calculation of thepresent value of estimated future cash flowsand evaluated the mathematic accuracy;7. We conducted sensitivity analysis ondiscount rate and other key assumptionsapplied by management, evaluating how thechanges in key assumptions (by individual orgrouping) will result in different results tofurther evaluate if there’s indication thatmanagement is partial in selectingparameters of key assumptions.We found that management’s assumptionson impairment of fixed assets, intangibleassets, construction in progress andgoodwill were supported by appropriateevidences.|
|(2) Recognition of deferred tax assets related totax lossesPlease refer to Note 2(29)(d) and Note 4(16) tothe financial statements.As at 31 December 2018, the deferred tax assetsrecognised by Guangdong Electric Power for thetax losses from Guangdong Electric Power andindividual subsidiaries amounted to RMB254,800,254.In management’s judgement, it is probable thatGuangdong Electric Power and relevantsubsidiaries have sufficient taxable income toutilize the losses before expiry. The financialforecast for future periods involvesmanagement’s significant judgements includingfuture sales amount of electricity, on-gridelectricity price, price of coal used in powergeneration and other operating cost.|1. Based on our understanding of thebusinesses of Yudean Group and theindustry in which Yudean Group operates,we assessed the reasonableness of the keyassumptions adopted for the calculation ofthe estimated taxable income in futureperiods, such as future sales amount ofelectricity, on-grid electricity price, price ofcoal used in power generation and otheroperating cost;2. With regard to the project of new generatorunits covered in the financial forecast, weunderstood the current progress of theproject and discussed with managementabout the reasonableness of the assumptionon the production plan during theforecasting period;3. We checked accuracy of the input data andformulas used in the calculation of thefinancial forecast for future periods andevaluated the mathematic accuracy;|

PwC ZT Shen Zi (2019) No. 10033 (Page 4 of 6) Key Audit Matters(Cont’d)
|||
|-|-|
|Key Audit Matters (Cont’d)|How our audit addressed the Key AuditMatter (Cont’d)|
|(2) Recognition of deferred tax assets related totax losses (Cont’d)As the deferred tax assets related to deductiblelosses were significant to the consolidatedfinancial statements of Guangdong ElectricPower, and the financial forecast for futureperiods involves management’s significantestimates and judgements, the recognition of thedeferred tax assets related to tax losses wasidentified as a key audit matter.|4. We compared the taxable income estimatedby management last year with the actualresult for the year to assess the historicalaccuracy of management’s forecast;5. We conducted sensitivity analysis on keyassumptions applied by management,evaluating how the changes in keyassumptions (by individual or grouping) willresult in different results to further evaluateif there’s indication that management ispartial in selecting parameters of keyassumptions.We found that management’s assumptions onrecognition of the deferred tax assets related todeductible losses were supported by appropriateevidence.|

Other Information
Management of Guangdong Electric Power is responsible for the other information. The other information comprises all of the information included in 2018 annual report of Guangdong Electric Power other than the financial statements and ourauditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and the Audit Committee for the Financial Statements
Management of Guangdong Electric Power is responsible for the preparation and fair presentation of these financial statements in accordance with the CASs, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing these financial statements, management is responsible for assessing Guangdong ElectricPower’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends
to liquidate Guangdong Electric Power or to cease operations, or has no realistic alternative but to
do so.
The Audit Committee is responsible for overseeing Guangdong ElectricPower’s financial reporting
process.
PwC ZT Shen Zi (2019) No. 10033 (Page 5 of 6)Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether these financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue anauditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with CSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with CSAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness ofmanagement’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on Guangdong ElectricPower’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in ourauditor’s report to the related disclosures in these financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor’s report. However, future events or conditions may cause Guangdong Electric Power to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within Guangdong Electric Power to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with the Audit Committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
PwC ZT Shen Zi (2019) No. 10033 (Page 6 of 6)Auditor’s Responsibilities for the Audit of the Financial Statements(Cont’d)
We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Audit Committee, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in ourauditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
PricewaterhouseCoopers Zhong Tian LLP Signing CPA
________________________ Wang Bin
Shanghai, thePeople’s Republic of China (Engagement Partner) 11 April 2019 Signing CPA
_______________________ Guo Biyu
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
31 December 31 December 1 January ASSETS Note 2018 2017 2017 (Restated) (Restated) Current assets
Cash at bank and on
hand 4(1) 5,574,382,892 4,996,580,490 5,184,873,650 Notes and accounts
receivables 4(2) 3,358,331,949 2,826,237,259 2,776,061,909 Advances to suppliers 4(3) 906,261,046 826,786,279 1,064,822,122 Other receivables 4(4) 222,976,826 223,831,764 150,181,074 Inventories 4(5) 1,481,817,270 1,527,634,773 1,513,153,241 Current portion of
non-current assets - 29,563,053 - Other current assets 4(6) 617,853,476 1,137,582,469 882,055,591 Total current assets 12,161,623,459 11,568,216,087 11,571,147,587 Non-current assets
Available-for-sale
financial assets 4(7) 1,565,806,331 1,243,633,985 1,279,387,994 Long-term receivables 4(8) 89,762,071 84,358,065 136,075,412 Long-term equity
investments 4(9) 6,395,134,754 5,801,006,412 5,432,637,750 Investment properties 4(10) 10,810,722 8,296,639 8,932,237 Fixed assets 4(11) 41,157,594,848 41,010,868,549 41,818,989,750 Construction in progress 4(12) 7,740,754,343 8,503,556,373 6,344,790,617 Intangible assets 4(13) 1,863,588,771 1,665,784,490 1,707,490,221 Goodwill 4(14) 2,449,886 27,486,780 27,486,780 Long-term prepaid
expenses 4(15) 22,089,179 27,007,371 34,611,712 Deferred tax assets 4(16) 448,431,684 372,553,039 303,929,269 Other non-current assets 4(17) 1,871,616,258 694,647,533 2,011,524,431 Total non-current assets 61,168,038,847 59,439,199,236 59,105,856,173 TOTAL ASSETS 73,329,662,306 71,007,415,323 70,677,003,760
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
CONSOLIDATED BALANCE SHEET(CONT’D)
AS AT 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
LIABILITIES AND OWNERS' 31 December 31 December
EQUITY Note 2018 2017 1 January 2017 (Restated) (Restated) Current liabilities
Short-term borrowings 4(19) 7,526,000,000 9,270,000,000 5,758,860,000 Notes and accounts
payables 4(20) 3,137,761,522 2,516,639,061 4,497,731,283 Advances from customers 4(21) 343,894 1,938,223 12,456,360 Employee benefits payable 4(22) 235,741,179 157,738,628 144,122,128 Taxes payable 4(23) 397,001,706 277,285,402 326,919,844 Other payables 4(24) 4,152,518,495 4,016,769,705 3,385,909,718 Current portion of
non-current liabilities 4(25) 2,779,347,654 3,012,690,360 1,433,644,523 Others 4(26) 1,107,904,110 - 1,723,070,000 Total current liabilities 19,336,618,560 19,253,061,379 17,282,713,856 Non-current liabilities
Long-term borrowings 4(27) 18,802,292,664 19,465,723,869 19,888,172,037 Debentures payable 4(28) 838,326,742 698,168,211 1,900,124,468 Long-term payables 4(29) 2,311,513,249 1,612,864,252 1,944,228,039 Deferred income 4(30) 133,043,646 142,520,263 125,650,072 Long-term employee
benefits payable 4(31) 122,913,388 91,622,907 122,832,249 Deferred tax liabilities 4(16) 100,726,841 24,188,860 37,718,277 Other non-current liabilities 4(32) 166,405,569 16,405,569 39,000,000 Total non-current liabilities 22,475,222,099 22,051,493,931 24,057,725,142 Total liabilities 41,811,840,659 41,304,555,310 41,340,438,998 Owners' equity
Share capital 4(33) 5,250,283,986 5,250,283,986 5,250,283,986 Capital surplus 4(34) 5,102,846,886 5,004,250,685 5,003,007,478 Other comprehensive
income 4(35) 550,010,133 137,001,523 145,059,015 Surplus reserves 4(36) 7,834,155,143 7,590,363,724 6,845,001,818 Undistributed profits 4(37) 5,490,006,140 5,713,290,735 6,135,494,928 Total equity attributable to
shareholders of the
Company 24,227,302,288 23,695,190,653 23,378,847,225 Minority interests 7,290,519,359 6,007,669,360 5,957,717,537 Total owners' equity 31,517,821,647 29,702,860,013 29,336,564,762 TOTAL LIABILITIES AND
OWNERS' EQUITY 73,329,662,306 71,007,415,323 70,677,003,760 The accompanying notes form an integral part of these financial statements.
Legal representative Principal in charge of accounting Head of accounting department Wang Jin Liu Wei Meng Fei
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
31 December 31 December 1 January ASSETS Note 2018 2017 2017 (Restated) (Restated) Current assets
Cash at bank and on
hand 385,577,463 429,724,538 326,073,538 Notes and accounts
receivables 15(1) 264,537,475 195,462,150 212,343,198 Advances to suppliers 44,826,500 57,189,222 79,990,745 Other receivables 15(2) 375,296,228 47,219,599 123,657,568 Inventories 187,058,140 151,849,683 149,462,926 Other current assets 199,679 - 25,650,427 Total current assets 1,257,495,485 881,445,192 917,178,402 Non-current assets
Available-for-sale
financial assets 1,565,806,331 1,243,633,985 1,279,387,994 Long-term receivables 306,460,000 401,460,000 335,000,000 Long-term equity
investments 15(3) 24,699,820,321 23,370,412,702 22,896,735,913 Investment properties 7,661,041 8,296,639 8,932,237 Fixed assets 978,022,437 1,054,459,265 1,049,906,014 Construction in progress 9,394,075 49,949,168 43,039,781 Intangible assets 86,681,362 88,660,312 92,152,556 Deferred tax assets - 43,591,562 - Other non-current assets 356,004,000 356,004,000 672,504,000 Total non-current assets 28,009,849,567 26,616,467,633 26,377,658,495 TOTAL ASSETS 29,267,345,052 27,497,912,825 27,294,836,897
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
COMPANY BALANCE SHEET(CONT’D)
AS AT 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
LIABILITIES AND 31 December 31 December
OWNERS’ EQUITY 2018 2017 1 January 2017 (Restated) (Restated) Current liabilities
Short-term borrowings 1,500,000,000 1,700,000,000 300,000,000 Notes and accounts
payables 223,827,319 221,325,935 517,973,144 Employee benefits
payable 53,346,100 32,124,015 31,813,417 Taxes payable 48,590,195 38,907,195 9,688,606 Other payables 98,528,954 179,208,669 151,317,073 Current portion of
non-current liabilities - 1,197,935,476 - Others 1,107,904,110 - 1,216,583,014 Total current liabilities 3,032,196,678 3,369,501,290 2,227,375,254 Non-current liabilities
Long-term borrowings 1,500,000,000 1,500,000,000 1,500,000,000 Debentures payable 838,326,742 - 1,196,982,619 Long-term payables 4,340,898 8,775,514 - Deferred income 48,362,943 53,869,596 59,533,388 Long-term employee
benefits payable 32,170,769 22,265,631 23,445,887 Deferred tax liabilities 99,461,621 - 12,508,093 Total non-current
liabilities 2,522,662,973 1,584,910,741 2,792,469,987 Total liabilities 5,554,859,651 4,954,412,031 5,019,845,241 Owners' equity
Share capital 5,250,283,986 5,250,283,986 5,250,283,986 Capital surplus 5,605,794,601 5,605,794,601 5,605,752,163 Other comprehensive
income 550,010,133 137,001,523 145,059,015 Surplus reserves 7,834,155,143 7,590,363,724 6,845,001,818 Undistributed profits 4,472,241,538 3,960,056,960 4,428,894,674 Total owners' equity 23,712,485,401 22,543,500,794 22,274,991,656 TOTAL LIABILITIES AND
OWNERS’ EQUITY 29,267,345,052 27,497,912,825 27,294,836,897 The accompanying notes form an integral part of these financial statements.
Legal representative Principal in charge of accounting Head of accounting department Wang Jin Liu Wei Meng Fei
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
Note 2018 2017 (Restated) Revenue 4(38) 27,408,514,178 26,643,792,057 Less: Cost of sales 4(38) (24,246,716,580) (23,292,288,669) Taxes and surcharges 4(39) (237,969,926) (243,872,444) Selling and distribution expenses 4(40) (25,383,861) (8,223,996) General and administrative expenses 4(41) (688,349,938) (638,017,252) Research and development expenses (5,043,776) (16,980,873) Financial expenses 4(42) (1,350,485,251) (1,279,255,541) Including: Interest expenses 1,310,505,491 1,260,094,752 Interest income 63,471,806 65,153,386 Asset impairment losses 4(43) (251,689,797) (145,754,374) Add: Other income 4(44) 52,750,847 50,872,822 Investment income 4(45) 537,702,970 489,086,549 Including: Share of profit of associates and
joint ventures 488,203,462 436,407,642 Gains/(Losses) on disposal of assets 4(46) 1,572,097 (4,720,404) Operating profit 1,194,900,963 1,554,637,875 Add: Non-operating income 4(47) 89,456,237 9,464,974 Less: Non-operating expenses 4(48) (39,159,530) (9,892,374) Total profit 1,245,197,670 1,554,210,475 Less: Income tax expenses 4(49) (335,100,233) (416,489,316) Net profit 910,097,437 1,137,721,159 Classified by continuity of operations
Net profit from continuing operations 910,097,437 1,137,721,159 Net profit from discontinued operations - - Classified by ownership of the equity
Attributable to shareholders of the
Company 474,461,997 743,180,431 Minority interests 435,635,440 394,540,728 Other comprehensive income, net of tax
Attributable to shareholders of the Company 413,008,610 (8,057,492) Other comprehensive income items which
will be reclassified to profit or loss
Gains or losses arising from changes in fair
value of available-for-sale financial
assets 413,008,610 (8,057,492) Total comprehensive income 1,323,106,047 1,129,663,667 Attributable to equity owners of the Company 887,470,607 735,122,939 Attributable to minority interests 435,635,440 394,540,728 Earnings per share
Basic earnings per share (RMB Yuan) 4(50) 0.09 0.14 Diluted earnings per share (RMB Yuan) 4(50) 0.09 0.14 The accompanying notes form an integral part of these financial statements.
Legal representative Principal in charge of accounting Head of accounting department Wang Jin Liu Wei Meng Fei
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
COMPANY INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
Note 2018 2017 (Restated) Revenue 15(4) 2,287,899,600 2,117,499,891 Less: Cost of sales 15(4) (2,133,932,886) (2,019,135,513) Taxes and surcharges (17,209,260) (10,188,705) Selling and distribution expenses (1,589,819) (46,598) General and administrative expenses (117,909,783) (101,505,265) Research and development expenses (2,624,097) (6,871,263) Financial expenses (205,073,468) (197,178,583) Including: Interest expenses 206,465,168 199,610,835 Interest income 6,208,285 4,215,500 Asset impairment losses 15(5) (154,226,974) (673,578,111) Add: Other income 6,712,095 7,003,961 Investment income 15(6) 1,517,144,869 1,531,007,381 Including: Share of profit of associates
and joint ventures 484,016,449 430,233,194 Gains/(Losses) on disposal of assets 442,300 (1,847,006) Operating profit 1,179,632,577 645,160,189 Add: Non-operating income 4,624,375 759,723 Less: Non-operating expenses (2,837,734) (1,034,213) Total profit 1,181,419,218 644,885,699 Less: Income tax (expenses)/credits (5,383,646) 51,661,211 Net profit 1,176,035,572 696,546,910 Classified by continuity of operations
Net profit from continuing operations 1,176,035,572 696,546,910 Net profit from discontinued
operations - - Other comprehensive income, net of tax 413,008,610 (8,057,492) Other comprehensive income items
which will be reclassified to profit or
loss
Gains or losses arising from changes
in fair value of available-for-sale
financial assets 413,008,610 (8,057,492) Total comprehensive income 1,589,044,182 688,489,418 The accompanying notes form an integral part of these financial statements.
Legal representative Principal in charge of accounting Head of accounting department Wang Jin Liu Wei Meng Fei
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
Note 2018 2017 Cash flows from operating activities
Cash received from sales of goods or
rendering of services 31,403,772,367 31,015,193,180 Refund of taxes and surcharges 10,386,840 4,351,929 Cash received relating to other
operating activities 4(52)(a) 138,132,774 149,296,827 Sub-total of cash inflows 31,552,291,981 31,168,841,936 Cash paid for goods and services (21,570,119,475) (23,504,495,193) Cash paid to and on behalf of
employees (1,758,740,745) (1,689,157,554) Payments of taxes and surcharges (1,640,280,936) (1,812,415,045) Cash paid relating to other operating
activities 4(52)(b) (583,214,469) (486,739,641) Sub-total of cash outflows (25,552,355,625) (27,492,807,433) Net cash flows from operating
activities 4(53)(a) 5,999,936,356 3,676,034,503 Cash flows from investing activities
Cash received from returns on
investments 335,215,628 267,717,887 Net cash received from disposal of
fixed assets, intangible assets and
other long-term assets 56,236,928 4,437,274 Cash received relating to other
investing activities 4(52)(c) 161,670,884 - Sub-total of cash inflows 553,123,440 272,155,161 Cash paid to acquire fixed assets,
intangible assets and other
long-term assets (3,699,868,129) (3,408,163,705) Cash paid to acquire investments (163,135,200) (147,000,000) Sub-total of cash outflows (3,863,003,329) (3,555,163,705) Net cash flows used in investing
activities (3,309,879,889 ) (3,283,008,544)
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
CONSOLIDATED CASH FLOW STATEMENT (CONT'D)
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
Note 2018 2017 Cash flows from financing activities
Cash received from capital
contributions 1,305,125,363 121,691,869 Including: Cash received from capital
contributions by
minority shareholders
of subsidiaries 1,155,125,363 - Cash received from borrowings 13,592,028,390 14,837,423,033 Cash received from issuing
debentures and short-term
financing notes 2,899,200,000 - Cash received from sales and
leaseback 900,000,000 - Cash received relating to other
financing activities 4(52)(d) - 42,438 Sub-total of cash inflows 18,696,353,753 14,959,157,340 Cash repayments of borrowings (17,858,853,666) (13,016,778,066) Cash payments for interest
expenses and distribution of
dividends or profits (2,390,857,657) (2,019,541,954) Cash paid for finance leases (426,817,014) (504,155,684) Cash paid relating to other financing
activities 4(53)(e) (136,080,000) - Sub-total of financing cash
outflows (20,812,608,337) (15,540,475,704) Net cash flows used in financing
activities (2,116,254,584) (581,318,364) Effect of foreign exchange rate
changes on cash and cash
equivalents 519 (755) Net increase/(decrease) in cash and
cash equivalents 4(53)(a) 573,802,402 (188,293,160) Add: Cash and cash equivalents at
the beginning of the year 4,996,580,490 5,184,873,650 Cash and cash equivalents at the end
of the year 4(53)(b) 5,570,382,892 4,996,580,490 The accompanying notes form an integral part of these financial statements.
Legal representative Principal in charge of accounting Head of accounting department Wang Jin Liu Wei Meng Fei
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
COMPANY CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
2018 2017 Cash flows from operating activities
Cash received from sales of goods or rendering of
services 2,585,719,149 2,486,441,357 Refund of taxes and surcharges - 160,605 Cash received relating to other operating activities 20,154,657 15,203,185 Sub-total of cash inflows 2,605,873,806 2,501,805,147 Cash paid for goods and services (2,032,356,406) (2,185,038,145) Cash paid to and on behalf of employees (349,508,525) (318,314,615) Payments of taxes and surcharges (82,796,385) (27,918,406) Cash paid relating to other operating activities (61,092,274) (75,445,028) Sub-total of cash outflows (2,525,753,590) (2,606,716,194) Net cash flows from/(used in) operating
activities 80,120,216 (104,911,047) Cash flows from investing activities
Cash received from disposal of investments 187,920,000 100,000,000 Cash received from returns on investments 1,313,192,983 1,291,979,756 Net cash received from disposal of fixed assets,
intangible assets and other long-term assets 1,016,545 208,142 Sub-total of cash inflows 1,502,129,528 1,392,187,898 Cash paid to acquire investments (1,419,713,500) (651,600,000) Cash paid to acquire fixed assets, intangible assets
and other long-term assets (92,602,608) (96,396,893) Sub-total of cash outflows (1,512,316,108) (747,996,893) Net cash flows (used in)/from investing activities (10,186,580) 644,191,005 Cash flows from financing activities
Cash received from borrowings 3,830,000,000 2,580,000,000 Cash received from issuing debentures and
short-term financing notes 2,899,200,000 - Cash received relating to other financing activities - 42,438 Sub-total of cash inflows 6,729,200,000 2,580,042,438 Cash repayments of borrowings (6,189,693,500) (2,380,000,000) Cash payments for interest expenses and
distribution of dividends or profits (653,587,730) (635,670,641) Sub-total of cash outflows (6,843,281,230) (3,015,670,641) Net cash flows used in financing activities (114,081,230) (435,628,203) Effect of foreign exchange rate changes on cash and
cash equivalents 519 (755) Net (decrease)/increase in cash and cash equivalents (44,147,075) 103,651,000 Add: Cash and cash equivalents at the beginning of
the year 429,724,538 326,073,538 Cash and cash equivalents at the end of the year 385,577,463 429,724,538 The accompanying notes form an integral part of these financial statements.
Legal representative Principal in charge of accounting Head of accounting department Wang Jin Liu Wei Meng Fei
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
CONSOLIDATED STATEMENT OF CHANGES INOWNERS’ EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
Note Attributable to equity owners of the Company
Other
Capital comprehensive Surplus Undistributed Minority Total owners' Share capital surplus income reserves profits interests equity Balance at 1 January 2018 5,250,283,986 5,004,250,685 137,001,523 7,590,363,724 5,713,290,735 6,007,669,360 29,702,860,013 Movements for the year
ended 31 December 2018
Total comprehensive income - - 413,008,610 - 474,461,997 435,635,440 1,323,106,047 Transactions with minority
shareholders 4(34) - 98,596,201 - - - 1,349,463,195 1,448,059,396 Profit distribution
Appropriation to surplus
reserves 4(36) - - - 243,791,419 (243,791,419) - - Profit distribution to equity
owners 4(37)(a) - - - - (420,022,719) (486,302,545) (906,325,264) Others 4(37)(b) - - - - (33,932,454) (15,946,091) (49,878,545) Balance at 31 December
2018 5,250,283,986 5,102,846,886 550,010,133 7,834,155,143 5,490,006,140 7,290,519,359 31,517,821,647
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
CONSOLIDATED STATEMENT OF CHANGES INOWNERS’ EQUITY(CONT’D)
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
Note Attributable to equity owners of the Company
Other
Capital comprehensive Surplus Undistributed Minority Total owners' Share capital surplus income reserves profits interests equity Balance at 1 January 2017 5,250,283,986 5,003,007,478 145,059,015 6,845,001,818 6,135,494,928 5,957,717,537 29,336,564,762 Movements for the year ended
31 December 2017
Total comprehensive income - - (8,057,492) - 743,180,431 394,540,728 1,129,663,667 Capital contribution and
withdrawal by shareholders - - - - - 138,286,300 138,286,300 Profit distribution
Appropriation to surplus
reserves 4(36) - - - 745,361,906 (745,361,906) - - Profit distribution to equity
owners 4(37)(a) - - - - (420,022,718) (483,389,821) (903,412,539) Others - 1,243,207 - - - 514,616 1,757,823 Balance at 31 December 2017 5,250,283,986 5,004,250,685 137,001,523 7,590,363,724 5,713,290,735 6,007,669,360 29,702,860,013 The accompanying notes form an integral part of these financial statements.
Legal representative Principal in charge of accounting Head of accounting department
Wang Jin Liu Wei Meng Fei
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
COMPANY STATEMENT OF CHANGES INOWNERS’ EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
Other
Capital comprehensive Surplus Undistributed Total owners' Note Share capital surplus income reserves profits equity Balance at 1 January 2018 5,250,283,986 5,605,794,601 137,001,523 7,590,363,724 3,960,056,960 22,543,500,794 Movements for the year ended 31
December 2018
Total comprehensive income - - 413,008,610 - 1,176,035,572 1,589,044,182 Profit distribution
Appropriation to surplus reserves 4(36) - - - 243,791,419 (243,791,419) - Profit distribution to equity owners 4(37)(a) - - - - (420,022,719) (420,022,719) Others - - - - (36,856) (36,856) Balance at 31 December 2018 5,250,283,986 5,605,794,601 550,010,133 7,834,155,143 4,472,241,538 23,712,485,401
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
COMPANY STATEMENT OF CHANGES INOWNERS’ EQUITY (CONT'D)
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
Other
comprehensive Surplus Undistributed Total owners' Note Share capital Capital surplus income reserves profits equity Balance at 1 January 2017 5,250,283,986 5,605,752,163 145,059,015 6,845,001,818 4,428,894,674 22,274,991,656 Movements for the year ended 31
December 2017
Total comprehensive income - - (8,057,492) - 696,546,910 688,489,418 Profit distribution
Appropriation to surplus reserves 4(36) - - - 745,361,906 (745,361,906) - Profit distribution to equity owners 4(37)(a) - - - - (420,022,718) (420,022,718) Others - 42,438 - - - 42,438 Balance at 31 December 2017 5,250,283,986 5,605,794,601 137,001,523 7,590,363,724 3,960,056,960 22,543,500,794 The accompanying notes form an integral part of these financial statements.
Legal representative Principal in charge of accounting Head of accounting department
Wang Jin Liu Wei Meng Fei
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
1 General information
Guangdong Electric Power Development Co., Ltd. (“the Company”) is a limited liability company jointly established by Guangdong Electric Power Holding Company, China Construction Bank, Guangdong Province Trust Investment Company, Guangdong Power Development Co., Ltd., Guangdong International Trust and China Guangfa Bank (currently named as Guangdong Guangkong Group Co., Ltd.). The address of theCompany’s registered office and head office isF33~F36 South Tower Building of Yudean Square on 2nd Tianhe East Road, Guangzhou, Guangdong Province, thePeople’s Republic of China (“the PRC”). TheCompany’s parent company is Guangdong Energy Group Co., Ltd. (“GEGC”, previously Guangdong Province Yudean Group Co., Ltd.) and its ultimate controlling shareholder is the State-owned Assets Supervision and Administration Commission of thePeople’s Government of Guangdong Province. TheCompany’s RMB ordinary shares (“A-share”) and domestic listed foreign shares (“B-share”) issued were listed for transactions in Shenzhen Stock Exchange respectively on 26 November 1993 and 28 June 1995. As at 31 December 2018, the total share capital of the Company was RMB 5,250,283,986 with par value of RMB 1 per share.
The Company and its subsidiaries (collectively referred to as “the Group”) are principally engaged in the businesses of developing and operating electric power plants in Guangdong Province, the PRC. For the information of theCompany’s major subsidiaries included in the consolidation scope in the current year, please refer to Note 6(1).
The financial statement have been authorised for issue by the Board of Directors of the Company on 11 April 2019.
2 Summary of significant accounting policies and accounting estimates
The Group determines its specific accounting policies and accounting estimates on the basis of the production and operation feature, which is reflected in: depreciation of fixed assets (Note 2(14), impairment of long-term assets (Note 2(19)), and recognition of deferred income taxes (Note 2(25)), etc.
Details of the Group's critical judgements used in determining significant accounting policies are set forth in Note 2(29).
(1) Basis of preparation
The financial statements are prepared in accordance with the Accounting Standard for Business Enterprises - Basic Standard, and the specific accounting standards and other relevant regulations issued by the Ministry of Finance on 15 February 2006 and in subsequent periods (hereafter collectively referred to as “the Accounting Standards for Business Enterprises” or “CAS”) and the disclosure requirements in the Preparation Convention of Information Disclosure by Companies Offering Securities to the Public No.15 - General Rules on Financial Reporting issued by the China Securities Regulatory Commission.
As at 31 December 2018, theGroup’s net current liabilities amounted to RMB 7,175 million. Capital commitments contracted for by the Group amounted to RMB 8,351 million, among which the capital expenditure due within one year amounted to RMB 2,927 million. Therefore, the Group is to some extent exposed to liquidity risk.
The reason for net current liabilities is that a portion of theGroup’s capital expenditure is backed by short-term borrowings and funds in hand. Management of the Company plans to take the following measures to ensure that the Group can continuously obtain sufficient working capital to liquidate debts due within 12 months starting from 31 December 2018, therefore, the financial statements are prepared on a going concern basis.
(a) The Group continuously generates profit after its generator sets have successively been
put into production in recent years. Management expects stable cash inflows from
operating activities in the future; and
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
2 Summary of significant accounting policies and accounting estimates(Cont’d)
(1) Basis of preparation(Cont’d)
(b) The Group maintains good relations of long-term cooperation with financial institutions (including theCompany’s associate Guangdong Yudean Finance Co., Ltd. (“Yudean Finance”)) in order to obtain sufficient financing credit lines. As at 31 December 2018, theGroup’s available line of credit from financial institutions amounted to approximately RMB 20,635 million, with RMB 7,210 million from Yudean Finance, RMB 9,225 million from other commercial banks and financial institutions, and remaining financing credit lines of medium-term notes of RMB 4,200 million obtained from China's inter-bank market, among which approximately RMB 5,552 million is due before 31 December 2019. The management has communicated with the financial institutions and hence expected the line of credit due before 31 December 2019 to renew the term for another 12 months.
(2) Statement of compliance with the Accounting Standard for Business Enterprises
The financial statements of the Company for the year ended 31 December 2018 are in compliance with the Accounting Standards for Business Enterprises, and truly and completely present the consolidated and theCompany’s financial position of the Company as at 31 December 2018 and their financial performance, cash flows and other information for the year then ended.
(3) Accounting year
TheCompany’s accounting year starts on 1 January and ends on 31 December.
(4) Recording currency
The recording currency is Renminbi (RMB).
(5) Business combinations
(a) Business combinations involving enterprises under common control
The consideration paid and net assets obtained by the absorbing party in a business combination are measured at the carrying amount. The difference between the carrying amount of the net assets obtained from the combination and the carrying amount of the consideration paid for the combination is treated as an adjustment to capital surplus (share premium). If the capital surplus (share premium) is not sufficient to absorb the difference, the remaining balance is adjusted against retained earnings. Costs directly attributable to the combination are included in profit or loss in the period in which they are incurred. Transaction costs associated with the issue of equity or debt securities for the business combination are included in the initially recognised amounts of the equity or debt securities.
(b) Business combinations involving enterprises not under common control
The cost of combination and identifiable net assets obtained by the acquirer in a business combination are measured at fair value at the acquisition date. Where the cost of the combination exceeds theacquirer’s interest in the fair value of theacquiree’s identifiable net assets, the difference is recognised as goodwill; where the cost of combination is lower than theacquirer’s interest in the fair value of theacquiree’s identifiable net assets, the difference is recognised in profit or loss for the current period. Costs directly attributable to the combination are included in profit or loss in the period in which they are incurred. Transaction costs associated with the issue of equity or debt securities for the business combination are included in the initially recognised amounts of the equity or debt securities.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
2 Summary of significant accounting policies and accounting estimates(Cont’d)
(6) Preparation of consolidated financial statements
The consolidated financial statements comprise the financial statements of the Company and all of its subsidiaries.
Subsidiaries are consolidated from the date on which the Group obtains control and are de-consolidated from the date that such control ceases. For a subsidiary that is acquired in a business combination involving enterprises under common control, it is included in the consolidated financial statements from the date when it, together with the Company, comes under common control of the ultimate controlling party. The portion of the net profit realised before the combination date is presented separately in the consolidated income statement.
In preparing the consolidated financial statements, where the accounting policies and the accounting periods of the Company and subsidiaries are inconsistent, the financial statements of the subsidiaries are adjusted in accordance with the accounting policies and the accounting period of the Company. For subsidiaries acquired from business combinations involving enterprises not under common control, the individual financial statements of the subsidiaries are adjusted based on the fair value of the identifiable net assets at the acquisition date.
All significant intra-group balances, transactions and unrealised profits are eliminated in the consolidated financial statements. The portion ofsubsidiaries’ shareholders' equity and the portion ofsubsidiaries’ net profits and losses and comprehensive incomes for the period not attributable to the Company are recognised as minority interests, net profit attributed to minority interests and total comprehensive incomes attributed to non-controlling interests and presented separately in the consolidated financial statements under shareholders' equity, net profit and total comprehensive income respectively. Unrealised profits and losses resulting from the sale of assets by the Company to its subsidiaries are fully eliminated against net profit attributable to owners of the parent. Unrealised profits and losses resulting from the sale of assets by a subsidiary to the Company are eliminated and allocated between net profit attributable to owners of the parent and net profit attributed to minority interests in accordance with the allocation proportion of the parent in the subsidiary. Unrealised profits and losses resulting from the sale of assets by one subsidiary to another are eliminated and allocated between net profit attributable to owners of the parent and net profit attributed to minority interests in accordance with the allocation proportion of the parent in the subsidiary.
If the accounting treatment of a transaction is inconsistent in the financial statements at the Group level and at the Company or its subsidiary level, adjustment will be made from the perspective of the Group.
(7) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, deposits that can be readily drawn on demand, and short-term and highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
(8) Foreign currency translation
Foreign currency transactions are translated into RMB using the exchange rates prevailing at the dates of the transactions.
At the balance sheet date, monetary items denominated in foreign currencies are translated into RMB using the spot exchange rates on the balance sheet date. Exchange differences arising from these translations are recognised in profit or loss for the current period, except for those attributable to foreign currency borrowings that have been taken out specifically for acquisition or construction of qualifying assets, which are capitalised as part of the cost of those assets. Non-monetary items denominated in foreign currencies that are measured at historical costs are
translated at the balance sheet date using the spot exchange rates at the date of the transactions.
The effect of exchange rate changes on cash is presented separately in the cash flow statement.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
2 Summary of significant accounting policies and accounting estimates(Cont’d)
(9) Financial instruments
(a) Financial assets
(i) Classification of financial assets
Financial assets are classified into the following categories at initial recognition: financial assets at fair value through profit or loss, receivables, available-for-sale financial assets and held-to-maturity investments. The classification of financial assets depends on theGroup’s intention and ability to hold the financial assets. During the current year, The Group's financial assets include receivables and available-for-sale financial assets.
Receivables
Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market.
Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial assets that are either designated in this category or not classified in any of the other categories at initial recognition. Available-for-sale financial assets are included in other current assets on the balance sheet if management intends to dispose of them within 1 year (inclusive) after the balance sheet date.
(ii) Recognition and measurement
Financial assets are recognised at fair value on the balance sheet when the Group becomes a party to the contractual provisions of the financial instrument. For receivables and available-for-sale financial assets, transaction costs that are attributable to acquisition of the financial assets are included in their initially recognised amounts.
Available-for-sale financial assets are subsequently measured at fair value. Investments in equity instruments are measured at cost when they do not have a quoted market price in an active market and whose fair value cannot be reliably measured. Receivables are measured at amortised cost using the effective interest method.
Gains or losses arising from change in fair value of available-for-sale financial assets are recognised directly in equity, except for impairment losses and foreign exchange gains and losses arising from translation of monetary financial assets. When such financial assets are derecognised, the cumulative gains or losses previously recognised directly in equity are recycled into profit or loss for the current period.
(iii) Impairment of financial assets
The Group assesses the carrying amounts of financial assets other than those at fair value through profit or loss at each balance sheet date. If there is objective evidence that a financial asset is impaired, an impairment loss is provided for.
Objective evidence indicating impairment of financial assets refers to the matter that actually occurs after the initial recognition of financial assets and will affect estimated future cash flows of financial assets, and whose impact can be reliably measured.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
2 Summary of significant accounting policies and accounting estimates(Cont’d)
(9) Financial instruments (Cont'd)
(a) Financial assets(Cont’d)
(iii) Impairment of financial assets (Cont'd)
The objective evidences for impairment of investments in available-for-sale equity instruments include significant or non-temporary decline in the fair value of investments in equity instruments. The Group assesses the investments in available-for-sale equity instruments on an individual basis at each balance sheet date. If the fair value of an investment in equity instruments on the balance sheet date is lower than its initial investment cost for more than50% (inclusive) or is continuously lower than its initial investment cost for more than 1 year (inclusive), then an impairment is incurred; if the fair value of an investment in equity instruments on the balance sheet date is lower than its initial investment cost for more than20% (inclusive), but not yet50%, the Group will consider other related factors such as price fluctuation rate to determine whether the investment in equity instruments is impaired. The Group calculates the initial investment cost of available-for-sale equity instruments using the weighted average method.
When an impairment loss on a financial asset carried at amortised cost has occurred, the amount of the impairment loss is provided for at the difference between theasset’s carrying amount and the present value of its estimated future cash flows (excluding future credit losses that have not been incurred). If there is objective evidence that the value of the financial asset recovered and the recovery is related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed and the amount of reversal is recognised in profit or loss.
If an impairment loss on available-for-sale financial assets measured at fair value incurs, the cumulative losses arising from the decline in fair value that has been recognised directly in equity are transferred out from equity into impairment loss. For an investment in debt instrument classified as available-for-sale on which the impairment loss has been recognised, if, in a subsequent period, its fair value increases and the increase can be objectively related to an event occurring after the impairment loss was recognised, the previously recognised impairment loss is reversed through profit or loss for the current period. For an investment in an equity instrument classified as available-for-sale on which the impairment loss has been recognised, the increase in its fair value in a subsequent period is recognised directly in equity.
If an impairment loss on an available-for-sale financial asset measured at cost incurs, the amount of loss is measured at the difference between theasset’s carrying amount and the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset, and recorded in profit or loss for the current period. The previously recognised impairment loss will not be reversed in subsequent periods.
(iv) Derecognition of financial assets
A financial asset is derecognised when: (i) the contractual rights to the cash flows from the financial asset expire, (ii) the financial asset has been transferred and the Group transfers substantially all the risks and rewards of ownership of the financial asset to the transferee, or (iii) the financial asset has been transferred and the Group has not retained control of the financial asset, although the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset.
On derecognition of a financial asset, the difference between the carrying amount and the sum of the consideration received and the cumulative changes in fair value that had been recognised directly inowners’ equity, is recognised in profit or loss.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
2 Summary of significant accounting policies and accounting estimates(Cont’d)
(9) Financial instruments (Cont'd)
(b) Financial liabilities
Financial liabilities are classified into the following categories at initial recognition: financial liabilities at fair value through profit or loss and other financial liabilities. The financial liabilities of the Group mainly comprise other financial liabilities, including payables, borrowings, bonds payable, etc.
Payables, including accounts payable, notes receivable and other payables, are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method. Borrowings and debentures payable are initially recognised at fair value, net of transaction costs incurred, and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities with maturities no more than one year (inclusive) are classified as current liabilities; those with maturities over one year but are due within one year (inclusive) as from the balance sheet date are classified as current portion of non-current liabilities. Others are classified as non-current liabilities.
A financial liability is derecognised or partly derecognised when the underlying present obligation is discharged or partly discharged. The difference between the carrying amount of the derecognised part of the financial liability and the consideration paid is recognised in profit or loss for the current period.
(c) Determination of fair value of financial instruments
The fair value of a financial instrument that is traded in an active market is determined at the quoted price in the active market. The fair value of a financial instrument that is not traded in an active market is determined by using a valuation technique. In valuation, the Group adopts valuation techniques applicable in the current situation and supported by adequate available data and other information, selects inputs with the same characteristics as those of assets or liabilities considered in relevant transactions of assets or liabilities by market participants, and gives priority to the use of relevant observable inputs. When relevant observable inputs are not available or feasible, unobservable inputs are adopted.
(10) Receivables
Receivables comprise notes and accounts receivables, other receivables, etc. Accounts receivable arising from sale of goods or rendering of services are initially recognised at fair value of the contractual payments from the buyers or service recipients.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
2 Summary of significant accounting policies and accounting estimates(Cont’d)
(10) Receivables(Cont’d)
(a) Receivables with amounts that are individually significant and subject to separate assessment for provision for bad debts
Receivables with amounts that are individually significant are subject to separate assessment for impairment. If there exists objective evidence that the Group will not be able to collect the amount under the original terms, a provision for impairment of that receivable is made.
The criterion for determining "amounts that are individually significant" is: the five largest accounts receivable and other receivables with individual amount more than RMB 5,000,000 and all long-term receivables.
The method of providing for bad debts for those individually significant amounts is as follows: the amount of the present value of the future cash flows expected to be derived from the receivable below its carrying amount.
(b) Receivables that the related provision for bad debts is provided on the grouping basis
Receivables with amounts that are not individually significant and those receivables that have been individually assessed for impairment and have not been found impaired are classified into certain groupings based on their credit risk characteristics. Provision for bad debts is determined based on the historical loss experience for groupings of receivables with similar credit risk characteristics, taking into consideration of the current circumstances.
The basis of the grouping recognition:
Name of groupings Basis of recognition The grouping includes receivables from sales of electricity, receivables from government, receivables from related Low-risk grouping
parties, supplementary medical insurance fund receivable, etc. The grouping refers to the receivables except for the low-risk Ageing analysis grouping
grouping. The method of provision for bad debts on the grouping basis is as follows:
Name of groupings Method of provision Low-risk grouping No provision Ageing analysis grouping Ageing analysis method Provision method which is determined based on the groupings with similar credit risk characteristics is ageing analysis method, and provision ratios are listed as follows:
Provision ratio for accounts receivable and other receivables Within 1 year 1% 1 to 2 years 10% 2 to 3 years 30% Over 3 years 100%
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
2 Summary of significant accounting policies and accounting estimates(Cont’d)
(10) Receivables(Cont’d)
(c) Receivables with amounts that are not individually significant but subject to separate assessment for provision for bad debts
The reason for making separate assessment for provision for bad debts is that there exists objective evidence that the Group will not be able to collect the amount under the original terms of the receivable.
Provision for bad debts is determined at the excess of the carrying amount of the receivables over the present value of the future cash flows expected to be derived from the receivables.
(11) Inventories
(a) Classification
Inventories mainly comprise fuel and spare parts, and are measured at the lower of cost and net realisable value.
(b) Costing of inventories
Cost of fuel is calculated using the weighted average method. Spare parts are amortised in full amount when issued for use.
(c) Basis for determining net realisable values of inventories and method for making provision for decline in the value of inventories
Provision for decline in the value of inventories is determined at the excess amount of the carrying amounts of the inventories over their net realisable value. Net realisable value is determined based on the estimated selling price in the ordinary course of business, less the estimated costs necessary to make the sales and related taxes.
(d) The Group adopts the perpetual inventory system.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
2 Summary of significant accounting policies and accounting estimates(Cont’d)
(12) Long-term equity investments
Long-term equity investments comprise theCompany’s long-term equity investments in its subsidiaries, and theGroup’s long-term equity investments in its joint ventures and associates. Subsidiaries are the investees over which the Company is able to exercise control. A joint venture is a joint arrangement which is structured through a separate vehicle over which the Group has joint control together with other parties and only has rights to the net assets of the arrangement based on legal forms, contractual terms and other facts and circumstances. An associate is the investee over which the Group has significant influence by participating in the financial and operating policy decisions.
Investments in subsidiaries are presented in theCompany’s financial statements using the cost method, and are adjusted using the equity method when preparing the consolidated financial statements; investments in associates and joint ventures are accounted for using the equity method.
(a) Determination of investment cost
For long-term equity investments arising from business combination: for long-term equity investments arising from business combination involving enterprises under common control, the initial investment cost shall be the share of the carrying amount ofowners’ equity of the combined party in the consolidated financial statements of the ultimate controlling party as at the combination date; for long-term equity investments arising from business combination involving enterprises not under common control, the investment cost shall be the combination cost.
Long-term equity investments acquired other than business combination: long-term equity investments acquired by cash are initially measured at the amount of actually paid; long-term equity investments acquired by the issuance of equity shares are initially measured at the fair value of equity shares issued.
(b) Subsequent measurement and recognition of profit or loss
For long-term equity investments accounted for using the cost method, cash dividends or profit distribution declared by the investees is recognised as investment income in profit or loss.
For long-term equity investments accounted for using the equity method, where the initial investment cost exceeds theGroup’s share of the fair value of theinvestee’s identifiable net assets at the time of acquisition, the investment is initially measured at that cost; where the initial investment cost is less than theGroup’s share of the fair value of theinvestee’s identifiable net assets at the time of acquisition, the difference is included in profit or loss for the current period and the cost of the long-term equity investment is adjusted upwards accordingly.
For long-term equity investments accounted for using the equity method, the Group recognises the investment income according to its share of net profit or loss of the investee. The Group does not recognise further losses when the carrying amounts of the long-term equity investment together with any long-term interests that, in substance, form part of theGroup’s net investment in investees are reduced to zero. However, if the Group has obligations for additional losses and the criteria with respect to recognition of provisions are satisfied, the Group continues recognising the investment losses and the provisions at the amount it expects to undertake. TheGroup’s share of the changes ininvestee’s owner's equity other than those arising from the net profit or loss, other comprehensive income and profit distribution is recognised in capital surplus with a corresponding adjustment to the carrying amounts of the long-term equity investment. The carrying amount of the investment is reduced by theGroup’s share of the profit distribution or cash dividends declared by the investees. Unrealised gains or losses on transactions between the Group and its investees are eliminated to the extent of theGroup’s equity interest in the investees, based on which the investment income or losses are recognised. Any losses resulting from transactions between the
Group and its investees, which are attributable to asset impairment losses are not eliminated.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
2 Summary of significant accounting policies and accounting estimates(Cont’d)
(12) Long-term equity investments(Cont’d)
(c) Basis for determining existence of control, jointly control or significant influence over investees Control is the power to govern an investee, so as to obtain variable returns from its involvement with the investee, and has the ability to use its power over the investee to affect the amount of the investor's returns.
Joint control is the contractually agreed sharing of control over an arrangement, and the decision of activities relating to such arrangement requires the unanimous consent of the Group and other parties sharing control.
Significant influence is the power to participate in making the decisions on financial and operating policies of the investee, but is not control or joint control over making those policies.
(d) Impairment of long-term equity investments
The carrying amounts of long-term equity investments in subsidiaries, joint ventures and associates are reduced to the recoverable amounts when the recoverable amounts are below their carrying amounts (Note 2(19)).
(13) Investment properties
Investment properties, including land use rights that have already been leased out and buildings that are held for the purpose of leasing, are measured initially at cost. Subsequent expenditures incurred in relation to an investment property are included in the cost of the investment property when it is probable that the associated economic benefits will flow to the Group and their costs can be reliably measured; otherwise, the expenditures are recognised in profit or loss for the period in which they are incurred.
The Group adopts the cost model for subsequent measurement of investment properties. Buildings and land use rights are depreciated or amortised to their estimated net residual values over their estimated useful lives. The estimated useful lives, the estimated net residual values that are expressed as a percentage of cost and the annual depreciation (amortisation) rates of investment properties are as follows:
Estimated net residual Annual depreciation Estimated useful lives values rates Buildings 22 to 30 years 5% 3.17% to4.32% When an investment property is transferred to owner-occupied property, it is reclassified to fixed asset with the carrying amount determined at the carrying amount of the investment property at the date of the transfer.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
2 Summary of significant accounting policies and accounting estimates(Cont’d)
(13) Investment properties(Cont’d)
The estimated useful life and the estimated net residual value of an investment property and the depreciation (amortisation) method applied to the property are reviewed, and adjusted as appropriate at each year-end.
An investment property is derecognised on disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from its disposal. The net amount of proceeds from sales, transfer, retirement or damage of an investment property after its carrying amount and related taxes and expenses is recognised in profit or loss for the current period.
(14) Fixed assets
(a) Recognition and initial measurement of fixed assets
Fixed assets comprise buildings, power generation equipment, motor vehicles and other equipment. Fixed assets are recognised when it is probable that the related economic benefits will flow to the Group and the costs can be reliably measured. Fixed assets purchased or constructed by the Group are initially measured at cost at the time of acquisition. The fixed assets contributed by the State shareholders at the reorganisation of the Company into a corporation are recognised based on the evaluated amounts as approved by the state-owned assets administration department.
Subsequent expenditures incurred for a fixed asset are included in the cost of the fixed asset when it is probable that the associated economic benefits will flow to the Group and the related cost can be reliably measured. The carrying amount of the replaced part is derecognised. All the other subsequent expenditures are recognised in profit or loss for the period in which they are incurred. (b) Depreciation methods of fixed assets
Fixed assets are depreciated using the straight-line method to allocate the cost of the assets to their estimated residual values over their estimated useful lives. For the fixed assets that have been provided for impairment loss, the related depreciation charge is prospectively determined based upon the adjusted carrying amounts over their remaining useful lives.
The estimated useful lives, the estimated residual values expressed as a percentage of cost and the annual depreciation rates of fixed assets are as follows:
Estimated useful Estimated net Annual depreciation lives residual values rates Buildings 10 to 50 years 5% 1.90% to9.50% Power generation
equipment 5 to 31 years 0% to5% 3.06% to20.00% Motor vehicles 5 to 15 years 0% to5% 6.33% to20.00% Other equipment 5 to 22 years 0% to5% 4.32% to20.00% The estimated useful life and the estimated net residual value of a fixed asset and the depreciation method applied to the asset are reviewed, and adjusted as appropriate at each year-end.
(c) The carrying amounts of fixed assets are reduced to the recoverable amounts when the recoverable amounts are below their carrying amounts (Note 2(19)).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
2 Summary of significant accounting policies and accounting estimates(Cont’d)
(14) Fixed assets(Cont’d)
(d) Basis for identification of fixed assets held under finance leases and related measurement
A lease that transfers substantially all the risks and rewards incidental to ownership of an asset is a finance lease. The leased asset is recognised at the lower of the fair value of the leased asset and the present value of the minimum lease payments. The difference between the recorded amount of the leased asset and the minimum lease payments is accounted for as unrecognised finance charge (Note 2(26)(b)).
Fixed assets held under a finance lease is depreciated on a basis consistent with the depreciation policy adopted for fixed assets that are self-owned. When a leased asset can be reasonably determined that its ownership will be transferred at the end of the lease term, it is depreciated over its estimated useful life; otherwise, the leased asset is depreciated over the shorter period of the lease term and its estimated useful life.
(e) Disposal of fixed assets
A fixed asset is derecognised on disposal or when no future economic benefits are expected from its use or disposal. The amount of proceeds from disposals on sale, transfer, retirement or damage of a fixed asset net of its carrying amount and related taxes and expenses is recognised in profit or loss for the current period.
(15) Construction in progress
Construction in progress is measured at actual cost. Actual cost comprises construction costs, installation costs, borrowing costs that are eligible for capitalisation and other costs necessary to bring the fixed assets ready for their intended use. Construction in progress is transferred to fixed assets when the assets are ready for their intended use, and depreciation is charged starting from the following month. The carrying amount of construction in progress is reduced to the recoverable amount when the recoverable amount is below its carrying amount (Note 2(19)).
(16) Borrowing costs
The borrowing costs that are directly attributable to acquisition and construction of an asset that needs a substantially long period of time for its intended use commence to be capitalised and recorded as part of the cost of the asset when expenditures for the asset and borrowing costs have been incurred, and the activities relating to the acquisition and construction that are necessary to prepare the asset for its intended use have commenced. The capitalisation of borrowing costs ceases when the asset under acquisition or construction becomes ready for its intended use and the borrowing costs incurred thereafter are recognised in profit or loss for the current period. Capitalisation of borrowing costs is suspended during periods in which the acquisition or construction of an asset is interrupted abnormally and the interruption lasts for more than 3 months, until the acquisition or construction is resumed.
The capitalised amount of specific borrowings intended to be used for the acquisition and construction of qualifying assets is determined by the interest expenses incurred in the period less interest income of the unused borrowings deposited at bank or investment income from temporary investments.
The capitalised amount of general borrowings intended to be used for the acquisition and construction of qualifying assets is determined by the weighted average of the excess of accumulated capital expenditure over capital expenditure of the special borrowings multiplied by the weighted average effective interest rate of the utilised general borrowings. The effective interest rate is the rate at which the future cash flows of the borrowings over the expected lifetime
or a shorter applicable period are discounted into the initial recognised amount of the borrowings.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
2 Summary of significant accounting policies and accounting estimates(Cont’d)
(17) Intangible assets
Intangible assets include land use rights, sea use rights, software, franchise right, associated projects for electricity transmission and transformation, microwave engineering and transportation engineering, and are measured at cost. The intangible assets contributed by the state shareholders at the reorganisation of the Company into a corporation are recognised based on the revaluated amounts as approved by the state-owned assets administration department.
(a) Land use rights and sea use rights
Land use rights are amortised on the straight-line basis over their approved use period of 20 to 70 years. If the acquisition costs of the land use rights and the buildings located thereon cannot be reasonably allocated between the land use rights and the buildings, all of the acquisition costs are recognised as fixed assets.
Sea use rights are amortised on the straight-line basis over their approved useful lives of 50 years. (b) Associated projects for electricity transmission and transformation, microwave engineering and transportation engineering
Associated projects for electricity transmission and transformation and microwave engineering refer to grid connection project undertaken by the Group for transmitting electricity to Guangdong Power Grid. From the start of use, they are amortised on a straight-line basis over their estimated beneficial period of 16 years.
Transportation engineering is amortised on a straight-line basis over their benefit period of 20 years.
(c) Other intangible assets
Fixed assets other than land use rights, sea use rights, associated projects for electricity transmission and transformation, microwave engineering and transportation engineering are amortised on a straight-line-basis over the expected useful lives of 2 to 25 years.
(d) Periodical review of useful life and amortisation method
For an intangible asset with a finite useful life, review of its useful life and amortisation method is performed at each year-end, with adjustment made as appropriate.
(e) Impairment of intangible assets
The carrying amount of an intangible asset is reduced to the recoverable amount when the recoverable amount is below the carrying amount (Note 2(19)).
(18) Long-term prepaid expenses
Long-term prepaid expenses include the expenditure for improvements to fixed assets held under operating leases, and other expenditures that have been incurred but should be recognised as expenses over more than one year in the current and subsequent periods. Long-term prepaid expenses are amortised on the straight-line basis over the expected beneficial period and are presented at actual expenditure net of accumulated amortisation.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
2 Summary of significant accounting policies and accounting estimates(Cont’d)
(19) Impairment of long-term assets
Fixed assets, construction in progress, intangible assets with finite useful lives, investment properties that are measured at cost and long-term equity investments in subsidiaries, joint ventures and associates are tested for impairment if there is any indication that an asset may be impaired at the balance sheet date. If the result of the impairment test indicates that the recoverable amount of an asset is less than its carrying amount, a provision for impairment and an impairment loss are recognised for the amount by which theasset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of anasset’s fair value less costs to sell and the present value of the future cash flows expected to be derived from the asset. Provision for asset impairment is determined and recognised on the individual asset basis. If it is not possible to estimate the recoverable amount of an individual asset, the recoverable amount of a group of assets to which the asset belongs is determined. A group of assets is the smallest group of assets that is able to generate independent cash inflows.
Goodwill that is separately presented in the financial statements is tested at least annually for impairment, irrespective of whether there is any indication that it may be impaired. In conducting the test, the carrying value of goodwill is allocated to the related asset group or groups of asset groups which are expected to benefit from the synergies of the business combination. If the result of the test indicates that the recoverable amount of an asset group or a group of asset groups, including the allocated goodwill, is lower than its carrying amount, the corresponding impairment loss is recognised. The impairment loss is first deducted from the carrying amount of goodwill that is allocated to the asset group or group of asset groups, and then deducted from the carrying amounts of other assets within the asset group or group of asset groups in proportion to the carrying amounts of assets other than goodwill.
Once the above asset impairment loss is recognised, it will not be reversed for the value recovered in the subsequent periods.
(20) Employee benefits
Employee benefits refer to all forms of consideration or compensation given by the Group in exchange for service rendered by employees or for termination of employment relationship, which include short-term employee benefits, post-employment benefits, termination benefits and other long-term employee benefits.
(a) Short-term employee benefits
Short-term employee benefits include wages or salaries, bonus, allowances and subsidies, staff welfare, premiums or contributions on medical insurance, work injury insurance and maternity insurance, housing funds, union running costs and employee education costs, short-term paid absences and etc. The short-term employee benefits actually occurred are recognised as a liability in the accounting period in which the service is rendered by the employees, with a corresponding charge to the profit or loss for the current period or the cost of relevant assets. Non-monetary benefits are measured at fair value.
(b) Post-employment benefits
The Group classifies post-employment benefit plans as either defined contribution plans or defined benefit plans. Defined contribution plans are post-employment benefit plans under which the Group pays fixed contributions into a separate fund and will have no obligation to pay further contributions; and defined benefit plans are post-employment benefit plans other than defined contribution plans. During the reporting period, the Group's post-employment benefits mainly include basic pensions, unemployment insurance and supplementary pensions, and all of them belong to the defined contribution plans.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
2 Summary of significant accounting policies and accounting estimates(Cont’d)
(20) Employee benefits (Cont'd)
(b) Post-employment benefits (Cont'd)
Basic pensions
TheGroup’s employees participate in the basic pension plan set up and administered by local authorities of Ministry of Human Resource and Social Security. Monthly payments of premiums on the basic pensions are calculated according to the bases and percentage prescribed by the relevant local authorities. When employees retire, the relevant local authorities are obliged to pay the basic pensions to them.
Supplementary pensions
The Company purchases supplementary pensions for employees, and pays insurance premium according to the policies of GEGC.
The amounts based on the above calculations are recognised as liabilities in the accounting period in which the service has been rendered by the employees, with a corresponding charge to the profit or loss for the current period or the cost of relevant assets.
(c) Termination benefits
The Group provides compensation for terminating the employment relationship with employees before the end of the employment contracts or as an offer to encourage employees to accept voluntary redundancy before the end of the employment contracts. The Group recognises a liability arising from compensation for termination of the employment relationship with employees, with a corresponding charge to profit or loss for the current period at the earlier of the following dates: 1) when the Group cannot unilaterally withdraw an employment termination plan or a curtailment proposal; 2) when the Group recognises costs or expenses for a restructuring that involves the payment of termination benefits.
Early retirement benefits
The Group offers early retirement benefits to those employees who accept early retirement arrangements. The early retirement benefits refer to the salaries and social security contributions to be paid to and for the employees who accept voluntary retirement before the normal retirement date prescribed by the State, as approved by the management. The Group pays early retirement benefits to those early retired employees from the early retirement date until the normal retirement date. The Group accounts for the early retirement benefits in accordance with the treatment for termination benefits, in which the salaries and social security contributions to be paid to and for the early retired employees from the off-duty date to the normal retirement date are recognised as liabilities with a corresponding charge to the profit or loss for the current period. The differences arising from the changes in the respective actuarial assumptions of the early retirement benefits and the adjustments of benefit standards are recognised in profit or loss in the period in which they occur.
The termination benefits expected to be settled within one year since the balance sheet date are classified as current liabilities.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
2 Summary of significant accounting policies and accounting estimates(Cont’d)
(21) Dividend distribution
Cash dividends are recognised as liabilities in the period in which the dividends are approved by theshareholders’ meeting.
(22) Provisions
Provisions for product warranties, onerous contracts and etc. are recognised when the Group has a present obligation, it is probable that an outflow of economic benefits will be required to settle the obligation, and the amount of the obligation can be measured reliably.
A provision is initially measured at the best estimate of the expenditure required to settle the related present obligation. Factors surrounding a contingency, such as the risks, uncertainties and the time value of money, are taken into account as a whole in reaching the best estimate of a provision. Where the effect of the time value of money is material, the best estimate is determined by discounting the related future cash outflows. The increase in the discounted amount of the provision arising from passage of time is recognised as interest expense.
The carrying amount of provisions is reviewed at each balance sheet date and adjusted to reflect the current best estimate.
The provisions expected to be settled within one year since the balance sheet date are classified as current liabilities.
(23) Revenue recognition
The amount of revenue is determined in accordance with the fair value of the consideration received or receivable for the sale of goods and services in the ordinary course of theGroup’s activities. Revenue is stated net of discounts, rebates and returns.
Revenue is recognised whenit’s probable that the economic benefits associated with the transaction will flow to the Group, the related revenue can be reliably measured, and the specific criteria of revenue recognition have been met for each type of theGroup’s activities as described below:
(a) Revenue from sales of electricity and heat energy
Revenue is recognised when electricity and heat energy are supplied to grid companies or customers.
(b) Revenue from sales of by-products
Revenue from the sales of goods is recognised when the Group transfers by-products (such as coal ash) produced by electricity generations to the designated delivery place pursuant to the contract or agreement and the recipient resource utilisation confirms receipt.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
2 Summary of significant accounting policies and accounting estimates(Cont’d)
(23) Revenue recognition(Cont’d)
(c) Rendering of services
The amount of revenue is determined in accordance with the fair value of the consideration received or receivable for rendering of services.
The Group provides electric power transactions service and maintenance service to external parties.
For the electric power transactions service provided by the Group to external parties, upon the receiving of the service, revenue is recognised based on the difference between the purchase price and the selling price of electricity.
The Group provides maintenance service to external parties. The related revenue is recognised using the percentage of completion method, with the stage of completion being determined based on proportion of costs incurred to date to the estimated total costs.
(d) Transfer of asset use rights
Interest income is recognised on a time proportion basis with reference to the deposits or the principal outstanding and the applicable effective interest rate.
Rental income from an operating lease is recognised on a straight-line basis over the period of the lease.
(24) Government grants
Government grants refer to the monetary or non-monetary assets obtained by the Group from the government, including tax return, financial subsidy and etc.
Government grants are recognised when the grants can be received and the Group can comply with all attached conditions. If a government grant is a monetary asset, it will be measured at the amount received or receivable. If a government grant is a non-monetary asset, it will be measured at its fair value. If it is unable to obtain its fair value reliably, it will be measured at its nominal amount.
Government grants related to assets refer to government grants which are obtained by the Group for the purposes of purchase, construction or acquisition of the long-term assets. Government grants related to income refer to the government grants other than those related to assets.
Government grants related to assets are recorded as deferred income and recognised in profit or loss on a systemic basis over the useful lives of the assets. Government grants related to income that compensate the incurred costs, expenses or losses are recognised in profit or loss. Government grants related to income that compensate future costs, expenses or losses are recorded as deferred income and recognised in profit or loss in reporting the related costs, expenses or losses; government grants related to income that compensate incurred costs, expenses or losses are recognised in profit or loss directly in the current period. The Group applies the presentation method consistently to the similar government grants in the financial statements.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
2 Summary of significant accounting policies and accounting estimates(Cont’d)
(24) Government grants(Cont’d)
Government grants that are related to ordinary activities are included in operating profit, otherwise, they are recorded in non-operating income or expenses.
For the policy loans with favourable interest rates, the Group records the loans at the actual amounts and calculates the interests by loan principals and the favourable interest rates.
(25) Deferred tax assets and deferred tax liabilities
Deferred tax assets and deferred tax liabilities are calculated and recognised based on the differences arising between the tax bases of assets and liabilities and their carrying amounts (temporary differences). Deferred tax asset is recognised for the deductible losses that can be carried forward to subsequent years for deduction of the taxable profit in accordance with the tax laws. No deferred tax liability is recognised for a temporary difference arising from the initial recognition of goodwill. No deferred tax asset or deferred tax liability is recognised for the temporary differences resulting from the initial recognition of assets or liabilities due to a transaction other than a business combination, which affects neither accounting profit nor taxable profit (or deductible loss). At the balance sheet date, deferred tax assets and deferred tax liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled.
Deferred tax assets are only recognised for deductible temporary differences, deductible losses and tax credits to the extent that it is probable that taxable profit will be available in the future against which the deductible temporary differences, deductible losses and tax credits can be utilised.
Deferred tax liabilities are recognised for temporary differences arising from investments in subsidiaries, associates and joint ventures, except where the Group is able to control the timing of reversal of the temporary difference, and it is probable that the temporary difference will not reverse in the foreseeable future. When it is probable that the temporary differences arising from investments in subsidiaries, associates and joint ventures will be reversed in the foreseeable future and that the taxable profit will be available in the future against which the temporary differences can be utilised, the corresponding deferred tax assets are recognised.
Deferred tax assets and liabilities are offset when:
 the deferred tax assets and liabilities are related to the same tax payer within the Group and the same taxation authority; and,
 that tax payer within the Group has a legally enforceable right to offset current tax assets against current tax liabilities.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
2 Summary of significant accounting policies and accounting estimates(Cont’d)
(26) Leases
A lease that transfers substantially all the risks and rewards incidental to ownership of an asset is a finance lease. An operating lease is a lease other than a finance lease.
(a) Operating leases
Lease payments under an operating lease are recognised on a straight-line basis over the period of the lease, and are either capitalised as part of the cost of related assets, or charged as an expense for the current period.
Rental income from an operating lease is recognised on a straight-line basis over the period of the lease.
(b) Finance leases
The leased asset is recognised at the lower of the fair value of the leased asset and the present value of the minimum lease payments. The difference between the recorded amount of the leased asset and the minimum lease payments is accounted for as unrecognised finance charge and is amortised using the effective interest method over the period of the lease. A long-term payable is recorded at the amount equal to the minimum lease payments less the unrecognised finance charge.
(27) Held for sale and discontinued operations
A non-current asset or a disposal group is classified as held for sale when all of the following conditions are satisfied: (1) the non-current asset or the disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such non-current asset or disposal group; (2) the Group has entered a legally enforceable sales agreement with other party and obtained relevant approval, and the sales transaction is expected to be completed within one year.
Non-current assets (except for financial assets, investment properties measured at fair value and deferred tax assets) that meet the recognition criteria for held for sale are recognised at the amount equal to the lower of the fair value less costs to sell and the carrying amount, and the excess of the original carrying amount over the fair value less costs to sell is recognised as asset impairment loss.
Such non-current assets and assets and liabilities included in disposal groups classified as held for sale are classified as current assets and current liabilities respectively, and are separately presented in the balance sheet.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
2 Summary of significant accounting policies and accounting estimates(Cont’d)
(27) Held for sale and discontinued operations(Cont’d)
A discontinued operation is a component of the Group that either has been disposed of or is classified as held for sale, and is separately identifiable and satisfies one of the following conditions: (1) it represents a separate major line of business or geographical area of operations; (2) it is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations; and (3) it is a subsidiary acquired exclusively with a view to resale.
The net profit from discontinued operations in the income statement includes operating profit or loss and disposal gains or losses of discontinued operations.
(28) Segment information
The Group identifies operating segments based on the internal organisation structure, management requirements and internal reporting system, and discloses segment information of reportable segments which is determined on the basis of operating segments.
An operating segment is a component of the Group that satisfies all of the following conditions: (1) the component is able to earn revenues and incur expenses from its ordinary activities; (2) whose operating results are regularly reviewed by theGroup’s management to make decisions about resources to be allocated to the segment and to assess its performance, and (3) for which the information on financial position, operating results and cash flows is available to the Group. Two or more operating segments that have similar economic characteristics and satisfy certain conditions can be aggregated into one single operating segment.
(29) Critical accounting estimates and judgements
The Group continually evaluates the critical accounting estimates and key judgements applied based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The critical accounting estimates and key assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next accounting year are outlined below:
(a) Estimates on provision for impairment of long-term assets
As described in Note 2(19), fixed assets, construction in progress, intangible assets with finite useful lives, investment properties that are measured at cost and long-term equity investments in subsidiaries, joint ventures and associates are tested for impairment ifthere’s indications that the assets may be impaired at the balance sheet date.
When assessing whetherthere’s indication that the above assets are impaired, management mainly evaluate and analyse: (1) whether events affecting asset impairment occurred; (2) whether the present value of expected cash flows arising from the continuing use or disposal of the asset is lower than its carrying amount; (3) whether the assumptions used in estimating the present value of future cash flows is appropriate.
Relevant assumptions adopted by the Group to determine impairment, e.g. changes in assumptions on discount rate and growth rate used to calculate the present value of future cash flows, may have material impact on the present value used in the impairment test, and cause impairment in the above-mentioned long-term assets of the Group.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
2 Summary of significant accounting policies and accounting estimates(Cont’d)
(29) Critical accounting estimates and judgements(Cont’d)
(b) Useful lives and residual value of fixed assets
The useful lives and residual value of fixed assets are determined by management after taking into account their durability and past maintenance records based on the industry practice. The useful life of the assets is reviewed at each year-end with appropriate adjustments made accordingly.
Any changes in the useful lives and residual value of fixed assets may have significant impact on theGroup’s net profit.
(c) Income taxes
The Group is subject to income taxes in numerous jurisdictions. There are some transactions and events for which the ultimate tax determination is uncertain during the ordinary course of business. Significant judgement is required from the Group in determining the provision for income taxes in each of these jurisdictions. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made.
(d) Deferred tax assets
Whether to recognise the deferred tax assets arising from deductible losses and deductible temporary differences largely depends on the judgement of management on whether sufficient future taxable income that can be used to deduct deductible losses and deductible temporary differences can be obtained in the future periods. A lot of judgements and estimates are required to calculate the future taxable income, and tax planning strategies and the influence of overall economic environment shall be considered at the same time. Different judgements and estimates will impact on the recognition and amount of deferred tax assets.
When it is estimated that sufficient future taxable income, against which deductible losses and temporary differences can be utilised, can be obtained in the future periods, deferred tax assets are recognised to the extent that it is probable that taxable income will be available in the future against which deductible losses and temporary differences can be utilised, using tax rates applicable in the period when the asset would be recovered. In determining the amount of deferred tax assets, the Group exercises judgements about the estimated timing and amount of future taxable income, and about the tax rates applicable in the future according to the existing tax policies and other relevant regulations. Differences between such estimates and the actual timing and amount of future profits will affect the amount of deferred tax assets.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
2 Summary of significant accounting policies and accounting estimates(Cont’d)
(30) Significant changes in accounting policies
In 2018, the Ministry of Finance released the Circular on the Amendment to the Formats of Corporate Financial Statements for the Year of 2018 (Cai Kuai[2018] No. 15) and the interpretation. The financial statements are prepared in accordance with the above circular with restating comparative figures of 2017 and without impact to net profit for 2017, net assets at 31 December 2017 and the cash flow statement for the year ended 31 December 2017 of the Group and the Company. The impacts on the financial statements are as follows:
(a) Impacts on consolidated balance sheet and income statement are as follows:
The nature and the reasons of the The line items affected The amounts affected
changes in accounting policies
31 December 2017 1 January 2017 The Group grouped notes receivable and Accounts receivable (2,826,237,259) (2,776,061,909) accounts receivable as notes and Notes receivable - - accounts receivables. Notes and accounts
receivables 2,826,237,259 2,776,061,909 The Group grouped interests receivable, Interests receivable (14,923,771) (16,681,118) dividends receivable and other Dividends receivable - - receivables as other receivables. Other receivables 14,923,771 16,681,118 The Group grouped fixed assets and Fixed assets 14,662,233 4,304,229 fixed assets pending for disposal as fixed Fixed assets pending for
assets. disposal (14,662,233) (4,304,229)
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
2 Summary of significant accounting policies and accounting estimates(Cont’d)
(30) Significant changes in accounting policies(Cont’d)
(a) Impacts on consolidated balance sheet and income statement are as follows(Cont’d):
The nature and the reasons of the The line items affected The amounts affected
changes in accounting policies
31 December 2017 1 January 2017 The Group grouped construction in Construction in progress 35,869,033 1,496,854 progress and construction materials in Construction materials (35,869,033) (1,496,854) construction in progress.
The Group grouped notes payable and Accounts payable (2,219,027,261) (3,167,250,446) accounts payable as notes and accounts Notes payable (297,611,800) (1,330,480,837) payables. Notes and accounts payables 2,516,639,061 4,497,731,283 The Group grouped interests payable, Interests payable (98,553,104) (83,648,793) dividends payable and other payables as Dividends payable (9,703,930) (9,703,930) other payables. Other payables 108,257,034 93,352,723 The Group grouped long-term payables Long-term payables 64,605,011 26,675,385 and payables for specific projects as Payables for specific projects (64,605,011) (26,675,385) long-term payables.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
2 Summary of significant accounting policies and accounting estimates(Cont’d)
(30) Significant changes in accounting policies(Cont’d)
(a) Impacts on consolidated balance sheet and income statement are as follows(Cont’d):
The nature and the reasons of the The line items affected The amounts affected changes in accounting policies
2017 The Group presented research and Research and development
development expenses separately from expenses 16,890,873 general and administrative expenses. General and administrative
expenses (16,890,873) (b) Impacts on company balance sheet and income statement are as follows:
The nature and the reasons of the The line items affected The amounts affected
changes in accounting policies
31 December 2017 1 January 2017 The Company grouped notes receivable Accounts receivable (195,462,150) (212,343,198) and accounts receivable as notes and Notes receivable - - accounts receivables. Notes and accounts
receivables 195,462,150 212,343,198
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
2 Summary of significant accounting policies and accounting estimates(Cont’d)
(30) Significant changes in accounting policies(Cont’d)
(b) Impacts on company balance sheet and income statement are as follows(Cont’d):
The nature and the reasons of the The line items affected The amounts affected
changes in accounting policies
31 December 2017 1 January 2017 The Company grouped interests Interests receivable (1,698,504) (723,819) receivable, dividends receivable and Dividends receivable (17,536,791) - other receivables as other receivables. Other receivables 19,235,295 723,819 The Company grouped notes payable Accounts payable (221,325,935) (517,973,144) and accounts payable as notes and Notes payable - - accounts payables. Notes and accounts payables 221,325,935 517,973,144 The Company grouped interests payable, Interests payable (49,765,772) (48,091,022) dividends payable and other payables as Dividends payable (9,703,930) (9,703,930) other payables. Other payables 59,469,702 57,794,952
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
2 Summary of significant accounting policies and accounting estimates(Cont’d)
(30) Significant changes in accounting policies(Cont’d)
(b) Impacts on company balance sheet and income statement are as follows(Cont’d):
The nature and the reasons of the The line items affected The amounts affected
changes in accounting policies
31 December 2017 1 January 2017 The Company grouped long-term Long-term payables 8,775,514 - payables and payables for specific Payables for specific projects
projects as long-term payables. (8,775,514) - 2017 The Company presented research and Research and development
development expenses separately from expenses 6,871,263 general and administrative expenses. General and administrative
expenses (6,871,263)
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
3 Taxation
(1) The main categories and rates of taxes applicable to the Group are set out below:
Category Tax base Tax rate/ levying rate Value-added tax (i) Taxable value added amount (Tax payable is 6%,10% and16% (“VAT”) (a) calculated using the taxable sales amount
multiplied by the applicable tax rate less
deductible VAT input of the current period)
(ii) Revenue from hydropower sales 3% City maintenance The payment amount of VAT and consumption 5% to7% and construction tax
tax
Educational Amount of VAT paid 3% surcharge
Local educational Amount of VAT paid 2% surcharge
Enterprise income Taxable income 15%,20% and tax (b) 25% House property tax The rental income or residual value of the property 12% and1.2% (a) Pursuant to the Circular on Adjustment of Tax Rate of Value Added Tax (Cai Shui[2018] No. 32) and related regulations jointly issued by the Ministry of Finance and the State Administration of Taxation, the applicable tax rates of revenue arising from sales of electricity, sales of by-products and maintenance and repair services and revenue arising from sales of heat energy of all subsidiaries of the Company, are16% and10% respectively from 1 May 2018, while they were17% and11% respectively before then. TheGroup’s revenue from entrusted loans between companies and training service is subject to VAT at the rate of6%.
Pursuant to Notice on the Policy of Streamlining and Combination of Value-Added Tax Levy Rates jointly issued by the Ministry of Finance and the State Administration of Taxation, revenue from sales of electricity generated from small hydropower units at the county level or below is subject to VAT at the rate of3%. Three small hydropower plants of Lincang Yudean Energy Co., Ltd. (“Lincang Energy”), a subsidiary of the Company, are subject to VAT at the rate of3%.
(b) Except for the subsidiaries Guangdong Yudean Dianbai Wind Power (“Dianbai Wind Power”), Guangdong Yudean Qujie Wind Power Co., Ltd. (“Qujie Wind Power”), Guangdong Yudean Leizhou Wind Power Co., Ltd. (“Leizhou Wind Power”), Zhanjiang Electric Co., Ltd. (“Zhanjiang Electric”) and Zhanjiang Yuheng Electric Co., Ltd. (“Yuheng Electric”)(see Note 3(2)), the applicable tax rate for the Company and its subsidiaries is25%.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
3 Taxation(Cont’d)
(2) Tax preference
(a) Pursuant to the approval documents (Cai Shui[2008] No. 46 and Guo Shui Fa[2009] No. 80), Dianbai Wind Power, Qujie Wind Power and Leizhou Wind Power are exempted from enterprise income tax in the first three years counting from the year profits are recorded, and can enjoy half rate reduction in the following three years. As the local taxation bureau considered that Dianbai Wind Power and Qujie Wind Power posted profits for the first time in 2016 and Leizhou Wind Power posted profits for the first time in 2017, the applicable enterprise income tax rates for Dianbai Wind Power, Qujie Wind Power and Leizhou Wind Power are0%,0% and0% in 2018 (2017:0%,0% and0%) respectively.
In addition,50% of VAT levied on the sales of electricity generated by Guangdong Yudean Shibeishan Wind Power Co., Ltd. (“Shibeishan”), Guangdong Yudean Zhanjiang Wind Power Generation Co., Ltd. (“Zhanjiang Wind Power”), Guangdong Yudean Xuwen Wind Power Electricity Co., Ltd. (“Xuwen Wind Power”), Dianbai Wind Power, Qujie Wind Power, Leizhou Wind Power and Huilai Wind Power will be refunded immediately in accordance with the Notice Concerning Value Added Tax Policies on Wind Power Generation (Cai Shui[2015] No. 74).
(b) In 2008, Zhanjiang Electric, a subsidiary of the Company, was granted a High-tech Enterprise Certificate (Certificate No.: GR201744007248) by the Department of Science& Technology of Guangdong Province, Department of Finance of Guangdong Province, the State Taxation Bureau of Guangdong Province and the Local Taxation Bureau of Guangdong Province on 11 December 2017. The certificate is valid for three years. Under Article 28 of the Enterprise Income Tax Law of thePeople’s Republic of China and the circular([2017] No. 24) issued by the State Administration of Taxation, the tax prefenrence can be requested as of the year of the issue of the high-tech enterprise certificate, and the income tax rate applicable to Zhanjiang Electric for 2018 is15% (2017:15%).
(c) Pursuant to the approval documents (Cai Shui[2018] No. 77), Yuheng Electric was recognised as a small enterprise with low profits since its annual taxable income was less than RMB 1 million, so the amount of taxable income was reduced to50% of its income and was subject to enterprise income tax at the tax rate of20%. Therefore, the applicable enterprise income tax rate for Yuheng Electric is20% (2017:25%).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements
(1) Cash at bank and on hand
31 December 2018 31 December 2017 Cash on hand 31,413 37,745 Cash at bank 592,232,767 844,241,939 Deposits with Yudean Finance (b) 4,978,118,712 4,152,300,806 Other cash balances (c) 4,000,000 - 5,574,382,892 4,996,580,490 (a) As at 31 December 2018, the Group had no offshore deposit (31 December 2017: Nil).
(b) Deposits with Yudean Finance refer to the deposits placed with Yudean Finance(Note 8(6)).
Yudean Finance is a financial institution established with the approval of thePeople’s Bank of China. Both the Company and Yudean Finance are controlled by GEGC.
(c) As at 31 December 2018, other cash balances amounted to RMB 4,000,000 (31 December 2017: Nil) and represented deposits of Huizhou Pingdian Comprehensive Energy Co., Ltd. (“Pingdian Comprehensive”), a subsidiary of the Group, for the purpose of applying for performance guarantees for admission to sales of electricity at Guangdong Power Exchange Centre.
(2) Notes and accounts receivables
31 December 2018 31 December 2017 Accounts receivable (a) 3,358,331,949 2,826,237,259 (a) Accounts receivable
31 December 2018 31 December 2017 Accounts receivable 3,358,489,658 2,826,237,259 Less: Provision for bad debts (157,709) - 3,358,331,949 2,826,237,259 (i) The ageing of accounts receivable is analysed as follows:
31 December 2018 31 December 2017 Within 1 year (inclusive) 3,358,257,370 2,815,185,386 1 to 2 years (inclusive) 144,000 11,051,873 2 to 3 years (inclusive) 88,288 - 3,358,489,658 2,826,237,259 As at 31 December 2018, there were no accounts receivable overdue but unimpaired (31 December 2017: Nil).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(2) Notes and accounts receivables(Cont’d)
(a) Accounts receivable(Cont’d)
(ii) Accounts receivable are analysed by categories as follows:
31 December 2018 31 December 2017
Ending balance Provision for bad debts Ending balance Provision for bad debts Amount% of total balance Amount Provision% Amount% of total balance Amount Provision% With amounts that are individually significant
and that the related provision for bad debts is
provided on the individual basis - - - - - - - - With amounts that the related provision for bad
debts is provided on the grouping basis
Low-risk grouping 3,345,279,051 99.61% - - 2,826,237,259 100.00% - - Ageing analysis grouping 13,210,607 0.39% (157,709) 1.19% - - - - With amounts that are not individually
significant but that the related provision for
bad debts is provided on the individual basis - - - - - - - - 3,358,489,658 100.00% (157,709) 0.01% 2,826,237,259 100.00% - - (iii) Accounts receivable that the related provision for bad debts is provided on grouping basis using the ageing analysis method are analysed as follows: 31 December 2018 31 December 2017
Ending balance Provision for bad debts Ending balance Provision for bad debts Amount Amount Provision% Amount Amount Provision% Within 1 year (inclusive) 13,122,319 (131,223) 1.00% - - - 2 to 3 years (inclusive) 88,288 (26,486) 30.00% - - - 13,210,607 (157,709) 1.19% - - - (iv) The provision for bad debts in the current year was RMB 157,709 (2017: Nil). There was no recovered or reversed provision for bad debts and there was no accounts receivable written off (2017: Nil).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(2) Notes and accounts receivables(Cont’d)
(a) Accounts receivable(Cont’d)
(v) As at 31 December 2018, the five largest amounts of accounts receivable aggregated by debtors were analysed as follows:
Percentage in Amount of total balance of provision for accounts Name of entity Amount bad debts receivable Total amount of five largest accounts
receivable 3,319,367,108 - 98.84% As at 31 December 2018, the Group had accounts receivable with a carrying amount of RMB 396,323,295 (31 December 2017: RMB 402,847,793). These accounts receivable, together with the right to collect electric charges, were pledged to banks to obtain long-term borrowings of RMB 2,765,356,586, including RMB 213,259,115 due within one year (31 December 2017: RMB 2,698,978,707, including RMB 209,579,575 due within one year) (see Note 4(25)(a) and (27)(a)). (3) Advances to suppliers
31 December 2018 31 December 2017 Advances to suppliers 906,566,047 826,786,279 Less: Provision for bad debts (305,001) - 906,261,046 826,786,279 (a) The ageing of advances to suppliers is analysed below:
31 December 2018 31 December 2017
Amount% of total balance Amount % of total balance Within 1 year 898,864,235 99.16% 825,247,024 99.81% 1 to 2 years 6,388,849 0.70% 963,292 0.12% 2 to 3 years 756,896 0.08% 8,640 0.00% Over 3 years 556,067 0.06% 567,323 0.07% 906,566,047 100.00% 826,786,279 100.00% As at 31 December 2018, advances to suppliers with ageing over one year amounted to RMB 7,701,812 (31 December 2017: RMB 1,539,255), mainly including prepayments for spare parts and materials.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(3) Advances to suppliers(Cont’d)
(b) Provision for bad debts in the current year
31 December 2018 31 December 2017 Opening balance - - Increase in the current year (305,001) - Ending balance (305,001) - (c) As at 31 December 2018, the five largest advances to suppliers collected by debtors were analysed as follows:
Amount % of total balance Total of the five largest advances to
suppliers 804,763,113 88.80% (4) Other receivables
31 December 2018 31 December 2017 Supplementary medical insurance fund
receivable 74,967,255 - Receivables from sales of by-products 61,562,471 140,445,384 Land deposits receivable 23,446,000 23,446,000 Interests receivable 18,856,569 14,923,771 Reserves receivable 8,207,879 6,996,288 Project expenses paid on behalf 5,423,464 6,236,199 Government grants receivable 5,208,887 6,474,557 Others 34,749,156 32,156,092 232,421,681 230,678,291 Less: Provision for bad debts (9,444,855) (6,846,527) 222,976,826 223,831,764
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(4) Other receivables(Cont’d)
(a) The ageing of other receivables is analysed as follows:
31 December 2018 31 December 2017 Within 1 year 188,702,751 213,641,978 1 to 2 years 33,895,584 7,803,912 2 to 3 years 2,033,130 841,160 Over 3 years 7,790,216 8,391,241 232,421,681 230,678,291 The ageing starts from the date when other receivables are recognised.
As at 31 December 2018, other receivables of RMB 35,526,080 (31 December 2017: RMB 8,300,017) were past due, but based on the analysis of thedebtors’ financial status and previous credit record, no individual provisions for bad debts were provided, nevertheless the collective provisions were provided after assessment on grouping basis accordingly. The past-due ageing of these other receivables was analysed as follows:
31 December 2018 31 December 2017 1 to 2 years 33,517,042 5,912,738 2 to 3 years 1,953,507 696,885 Over 3 years 55,531 1,690,394 35,526,080 8,300,017
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(4) Other receivables(Cont’d)
(b) Other receivables are analysed by categories as follows:
31 December 2018 31 December 2017
Ending balance Provision for bad debts Ending balance Provision for bad debts% of total % of total
Amount balance Amount Provision% Amount balance Amount Provision% With amounts that are individually
significant and that the related
provision for bad debts is provided on
the individual basis - - - - - - - - With amounts that the related provision
for bad debts is provided on the
grouping basis
Low-risk grouping 183,079,035 78.77% - - 223,831,764 97.03% - - Ageing analysis grouping (c) 42,334,934 18.21% (2,437,143) 5.76% - - - - With amounts that are not individually
significant but that the related
provision for bad debts is provided on
the individual basis 7,007,712 3.02% (7,007,712) 100.00% 6,846,527 2.97% (6,846,527) 100.00% 232,421,681 100.00% (9,444,855) 4.06% 230,678,291 100.00% (6,846,527) 2.97% (c) Accounts receivable that the related provision for bad debts is provided on grouping basis using the ageing analysis method are analysed as follows: 31 December 2018 31 December 2017
Ending balance Provision for bad debts Ending balance Provision for bad debts Amount Amount Provision% Amount Amount Provision% Within 1 year 32,302,549 (323,025) 1.00% - - - 1 to 2 years 7,216,752 (721,675) 10.00% - - - 2 to 3 years 2,033,130 (609,940) 30.00% - - - Over 3 years 782,503 (782,503) 100.00% - - - 42,334,934 (2,437,143) 5.76% - - -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(4) Other receivables(Cont’d)
(d) Provision for bad debts in the current year
31 December 2018 31 December 2017 Opening balance (6,846,527) (6,423,698) Increase in the current year (2,598,328) (422,829) Ending balance (9,444,855) (6,846,527) (e) As at 31 December 2018, the five largest other receivables by debtors were analysed as follows:% of total Provision for bad Nature Balance Ageing balance debts Taikang Pension Company Supplementary
Limited Guangdong Branch medical insurance
(“Taikang Pension”) fund receivable 74,967,255 Within 1 year 32.25% - Guangdong Yudean
Environmental Protection
Co., Ltd. (“Yudean Receivables from
Environmental”) sales of by-products 54,456,181 Within 1 year 23.43% - Maoming Port Bohe New Port
Construction Headquarters Land deposits
Office receivable 23,446,000 1 to 2 years 10.09% - Government grants Within 2
Huilai Taxation Bureau receivable 5,147,593 years 2.21% - Guangzhou Huading Building Receivables from
Materials Co., Ltd. sales of by-products 2,803,643 Over 3 years 1.21% (2,803,643) 160,820,672 69.19% (2,803,643) (f) As at 31 December 2018, the Group's government grants recognised at amounts receivable were analysed as follows:
Estimated time, amount and basis of Government grants Balance Ageing collection Immediate refund of Expected to be fully recovered by Huilai Taxation Bureau VAT 5,147,593 Within 2 years June 2018 Immediate refund of Expected to be fully recovered by Xuwen Taxation Bureau VAT 61,294 Within 1 year June 2018 5,208,887
(5) Inventories
(a) Inventories are summarised by categories as follows:
31 December 2018 31 December 2017
Provision for Provision for
decline in the decline in the
Ending value of Carrying Ending value of Carrying balance inventories amount balance inventories amount Fuel 780,978,630 (1,429,525) 779,549,105 807,187,691 - 807,187,691 Spare parts 697,094,406 (18,128,209) 678,966,197 714,566,924 (17,420,859) 697,146,065 Others 23,301,968 - 23,301,968 23,301,017 - 23,301,017 1,501,375,004 (19,557,734) 1,481,817,270 1,545,055,632 (17,420,859) 1,527,634,773
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(5) Inventories (Cont'd)
(b) Provision for decline in the value of inventories is analysed as follows:
Increase in the Decrease in the
31 December 2017 current year current year 31 December 2018 Spare parts (17,420,859) (707,350) - (18,128,209) Fuel - (1,429,525) - (1,429,525) (17,420,859) (2,136,875) - (19,557,734) As at 31 December 2018, the Group made provision for decline in the value of spare parts because some spare parts were rendered useless and impaired as a result of technology upgrade, and it made provision for decline in the value of fuel because the heavy oil could not be used as fuel as before and was impaired due to the outage of heating boilers at Phase I of Guangdong Huizhou Natural Gas Power Co., Ltd. (“Huizhou Natural Gas”), a subsidiary of the Company.
(c) The Group did not have any reversal or write-off of provision for decline in the value of inventories in 2018.
(6) Other current assets
31 December 2018 31 December 2017 VAT to be deducted 613,635,937 1,106,133,996 Prepaid income tax 4,181,711 31,389,365 Others 35,828 59,108 617,853,476 1,137,582,469 (7) Available-for-sale financial assets
31 December 2018 31 December 2017 Measured at fair value
- Available-for-sale equity instruments (a) 1,139,806,331 408,992,985 Measured at cost
- Available-for-sale equity instruments (b) 426,000,000 859,651,686 1,565,806,331 1,268,644,671 Less: Provision for impairment - (25,010,686) 1,565,806,331 1,243,633,985
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(7) Available-for-sale financial assets(Cont’d)
(a) Available-for-sale financial assets summarised by relevant information:
Available-for-sale financial assets measured at fair value:
31 December 2018 31 December 2017 Available-for-sale equity instruments
- Fair value 1,139,806,331 408,992,985 - Cost 435,463,816 255,328,616 - Accumulated amount included in other
comprehensive income 704,342,515 153,664,369 - Accumulated provision for impairment - - (i) As at 31 December 2018, the Company held 12,600,000 tradable A shares in Shenzhen Energy with fair value of RMB 66,150,000, and the investment cost was RMB 15,890,628. The investment was stated at fair value with reference to the market price. During the year, losses at fair value amounted to RMB 10,206,000 (2017: losses of RMB 10,206,000), and other comprehensive income was adjusted downwards accordingly.
(ii) As at 31 December 2018, the Company held 55,532,250 tradable A shares in Shenergy with fair value of RMB 270,997,380, and the investment cost was RMB 235,837,988. The investment was stated at fair value with reference to the market price. During the year, losses at fair value amounted to RMB 54,421,605 (2017: losses of RMB 555,323), and other comprehensive income was adjusted downwards accordingly.
(iii) As at 31 December 2018, the Company held 1,800,000 shares of GMG International Tendering Co., Ltd. traded at the National Equities Exchange and Quotations system with fair value of RMB 3,618,000, and the investment cost was RMB 3,600,000. The investment was stated at fair value with reference to the market price. During the year, losses at fair value amounted to RMB 3,600,000 (2017: gains of RMB 18,000), and other comprehensive income was adjusted downwards accordingly.
(iv) Pursuant to the Proposal on Involvement in Capital and Share Increase of Shenzhen Capital Group Co., Ltd. approved by the Board of Directors in September 2018, the Company was permitted to make a capital injection of RMB 213,034,000 to Shenzhen Capital Group Co., Ltd. (“SCG”) at its original proportion of shareholding. A capital injection of RMB 65,135,200 was made in 2018. A revaluation of fair value has been conducted for the equity investment in SCG with reference to the valuation upon capital injection. The equity investment is subsequently measured using the fair value model instead of the cost model as of the date of capital injection. As at 31 December 2018, the fair value of the equity that the Company held in SCG amounted to RMB 799,040,951, and the investment cost was RMB 180,135,200. During the year, gains at fair value amounted to RMB 618,905,751 (2017: Not applicable), and other comprehensive income was adjusted upwards accordingly.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(7) Available-for-sale financial assets(Cont’d)
(b) Available-for-sale financial assets measured at cost:
% of Cash dividend 31 December Transfer out in 31 December shareholding in in the current 2017 the current year 2018 investees year Available-for-sale equity instruments
- cost
- SCG (Note 4(7)(a)(iv)) 115,000,000 (115,000,000) - 3.67% 16,978,500 - Sunshine Insurance Group
Corporation 356,000,000 - 356,000,000 3.38% 24,500,000 - South Sea Wind Electricity
Development Co., Ltd. 70,000,000 - 70,000,000 10.00% - - Weixin Yuntou Yudean Zhaxi
Energy Co., Ltd. (“Weixin
Yuntou”)(i) 318,651,686 (318,651,686) - 19.55% - 859,651,686 (433,651,686) 426,000,000 41,478,500 Available-for-sale equity instruments
- provision for impairment
- Weixin Yuntou (i) (25,010,686) 25,010,686 -
834,641,000 (408,641,000) 426,000,000
The available-for-sale financial assets measured at cost mainly include the unlisted equity investments held by the Company which are not quoted in an active market and whose fair value cannot be reliably measured as the variability in the range of reasonable fair value measurements is significant and the probabilities of the various estimates used to determine the fair value cannot be reasonably determined. (i) In April 2018, Yunnan Provincial Power Investment Co., Ltd. (“YPI”), the controlling shareholder of Weixin Yuntou, received2.49% equity of Weixin Yuntou held by Yunnan Bureau of Coalfield Geology. The Company has significant influence over the operation of Weixin Yuntou after the equity structure is altered. The equity investment is accounted for as long-term equity investments in associates accounted for using the equity method as of the date of equity structure alteration. At the date of transfer, the fair value of the equity assessed by Weixin Yuntou was RMB 288,918,092, and the investment loss recognised upon transfer was RMB 4,722,908.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(8) Long-term receivables
31 December 2018 31 December 2017
Ending Provision for Carrying Ending Provision for Carrying Discount rate Item balance bad debts amount balance bad debts amount range Sales and leaseback 5.40% to deposits 89,762,071 - 89,762,071 84,358,065 - 84,358,065 7.30% As at 31 December 2018, theGroup’s long-term receivables mainly represented the present value of RMB 100,000,000 of deposits paid for fixed assets held under sales and leaseback (31 December 2017: RMB 130,000,000).
(9) Long-term equity investments
31 December 2018 31 December 2017 Joint ventures (a) 602,584,896 605,678,402 Associates (b) 5,817,560,544 5,195,328,010 6,420,145,440 5,801,006,412 Less: Provision for impairment of long-term
equity investments (25,010,686) - 6,395,134,754 5,801,006,412
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(9) Long-term equity investments(Cont’d)
(a) Joint ventures
Movements for the current year
Share of net Cash Provision for profit/(loss) Share of other Share of other dividends or impairment at 31 December Increase in Decrease in under equity comprehensive changes in profits Provision for 31 December the end of the 2017 investment investment method income equity declared impairment Others 2018 year Guangdong Electric
Power Industry Fuel
Co., Ltd. (“Industry
Fuel”) 605,678,402 - - 72,400,480 - - (75,493,986) - - 602,584,896 - The equity-related information of the joint ventures is set out in Note 6(2).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(9) Long-term equity investments(Cont’d)
(b) Associates
Movements for the current year
Transfer from
provision for
Transfer from Share of net Share of impairment of Provision for available-for-sa profit/(loss) Share of other other Cash dividends Provision available-for-s impairment at 31 December Increase in le financial under equity comprehensive changes in or profits for ale financial 31 December the end of the 2017 investment assets method income equity declared impairment assets 2018 year Shanxi Yudean Energy Co., Ltd.
(“Shanxi Yudean Energy”) 1,216,441,246 - - 227,748,560 - - (4,000,000) - - 1,440,189,806 - Yudean Finance 700,701,205 - - 85,475,612 - - (57,221,066) - - 728,955,751 - Guangdong Guohua Yudean
Electric Co., Ltd. (“Taishan
Electric”) 1,961,475,609 - - 129,315,387 - - (121,582,000) - - 1,969,208,996 - Guangdong Yudean Shipping
Co., Ltd. (“Yudean Shipping”) 941,757,936 - - 1,822,952 - - (8,469,538) - - 935,111,350 - Guangdong Yudean Western
Investment Co., Ltd. (“Western
Investment”) 153,696,713 - - (18,044,364) - - - - - 135,652,349 - Huaneng Shantou Wind Power
Co., Ltd. (“Huaneng Shantou
Wind Power”) 62,750,674 - - 4,187,013 - - (12,672,500) - - 54,265,187 - Yangshan Jiangkeng Hydropower
Co., Ltd. (“Yangshan
Jiangkeng”) 5,673,426 - - 874,094 - - (852,810) - - 5,694,710 - Yangshan Zhongxinkeng Electric
Co., Ltd. (“Yangshan
Zhongxinkeng”) 7,509,371 - - 1,000,767 - - (701,312) - - 7,808,826 - Guangdong Yudean Property
Self-Insurance Co., Ltd.
(“Yudean Property
Self-Insurance”)(i) 145,321,830 98,000,000 - 14,704,347 - - - - - 258,026,177 - Weixin Yuntou (Note 4(7)(b)(i)) - - 313,928,778 (31,281,386) - - - - (25,010,686) 257,636,706 (25,010,686) 5,195,328,010 98,000,000 313,928,778 415,802,982 - - (205,499,226) - (25,010,686) 5,792,549,858 (25,010,686) (i) In April 2018, the Company made an additional investment of RMB 98,000,000 to Yudean Property Self-Insurance, keeping an investment proportion of49% in total investment (31 December 2017:49%).
The equity-related information of the associates is set out in Note 6(2).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(10) Investment properties
Buildings Cost
- Opening balance 20,135,165 - Additions in the current year 3,215,518 - Ending balance 23,350,683 Accumulated depreciation
- Opening balance (11,838,526) - Increase in the current year (701,435) - Ending balance (12,539,961) Carrying amount
- Ending balance 10,810,722 - Opening balance 8,296,639 (11) Fixed assets
31 December 2018 31 December 2017 Fixed assets (a) 41,146,148,282 40,996,206,316 Fixed assets pending for disposal (b) 11,446,566 14,662,233 41,157,594,848 41,010,868,549
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(11) Fixed assets(Cont’d)
(a) Fixed assets
Power generation
Buildings equipment Motor vehicles Other equipment Total Cost
31 December 2017 18,246,875,839 55,080,195,082 609,324,301 1,272,376,920 75,208,772,142 Increase in the current year
Purchase 57,515,088 39,349,566 18,835,522 25,237,123 140,937,299 Transfer from
construction in
progress (iii) 346,590,776 3,249,655,415 - 25,039,923 3,621,286,114 Donations received 25,212,942 3,533,292 1,149,501 513,684 30,409,419 Adjustment for project
settlement differences - (49,198,552) - - (49,198,552) Disposals and scrap in the
current year (77,513,238) (166,439,861) (27,326,297) (10,040,460) (281,319,856) 31 December 2018 18,598,681,407 58,157,094,942 601,983,027 1,313,127,190 78,670,886,566 Accumulated depreciation
31 December 2017 (6,130,373,600) (25,913,014,678) (451,460,572) (831,112,010) (33,325,960,860) Increase in the current year
Provision (ii) (416,039,523) (2,873,127,677) (19,937,352) (58,909,187) (3,368,013,739) Decrease in the current
year
Disposal and scrap 26,067,496 86,125,573 25,690,061 8,385,647 146,268,777 31 December 2018 (6,520,345,627) (28,700,016,782) (445,707,863) (881,635,550) (36,547,705,822) Provision for impairment
31 December 2017 (117,320,986) (764,055,146) (1,233,218) (3,995,616) (886,604,966) Increase in the current year
Provision (iv) (20,472,216) (130,232,756) (422,917) (8,298) (151,136,187) Decrease in the current
year
Disposal and scrap - 60,708,691 - - 60,708,691 31 December 2018 (137,793,202) (833,579,211) (1,656,135) (4,003,914) (977,032,462) Book balance
31 December 2018 11,940,542,578 28,623,498,949 154,619,029 427,487,726 41,146,148,282 31 December 2017 11,999,181,253 28,403,125,258 156,630,511 437,269,294 40,996,206,316
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(11) Fixed assets(Cont’d)
(a) Fixed assets(Cont’d)
(i) As at 31 December 2018, no power generation equipment was pledged as collateral for long-term borrowings. (31 December 2017: the carrying amount of RMB 757,878,678 and the cost of RMB 2,562,570,238 pledged as collateral for long-term borrowings of RMB 85,000,000).
As at 31 December 2017 and 31 December 2018, no buildings were pledged as collateral for long-term borrowings.
(ii) In 2018, theGroup’s depreciation amount charged for fixed assets was RMB 3,368,013,739 (2017: RMB 3,499,179,128), among which RMB 3,317,059,002 (2017: RMB 3,446,599,794), RMB 45,160,260 (2017: RMB 46,987,909), RMB 168,621 (2017: RMB 4,185) and RMB 5,625,856 (2017: RMB 5,587,240) were charged to cost of sales, general and administrative expenses, selling and distribution expenses and construction in progress respectively.
(iii) The costs of fixed assets transferred from construction in progress amounted to RMB 3,621,286,114 (2017: RMB 2,407,077,383)(Note 4(12)(a)(i)).
(iv) Impairment of fixed assets
In 2018, movements of provision for impairment of fixed assets were as follows:
31 December Increase in the Decrease in the 31 December 2017 current year current year 2018 Guangdong Yuejia Electric Co., Ltd. (“Yuejia
Electric”) (Note 1) 480,449,596 - - 480,449,596 Xuwen Wind Power (Note 2) 126,877,473 - - 126,877,473 Zhanjiang Zhongyue Energy Co., Ltd.
(“Zhongyue Energy”) (Note 3) 12,662,964 - - 12,662,964 Guangdong Red Bay Power Generation Co.,
Ltd. (“Red Bay Power”) (Note 3) 93,825,445 - (45,227,916) 48,597,529 Guangdong Electric Power Development Co.,
Ltd. Shajiao A Power Plant (“Shajiao A
Power Plant”) (Note 3, 4) 35,959,298 40,395,369 - 76,354,667 Zhanjiang Electric (Note 3) 29,292,346 1,851,125 (5,242,196) 25,901,275 Guangdong Yudean Jinghai Power Co., Ltd.
(“Jinghai Power”) (Note 3) 23,694,296 - (10,238,579) 13,455,717 Guangdong Shaoguan Yuejiang Electric Power
Co., Ltd. (“Yuejiang Power”) (Note 3) 54,091,864 - - 54,091,864 Maoming Zhenneng Thermal Power Co., Ltd.
(“Maoming Zhenneng”) (Note 3) 29,751,684 - - 29,751,684 Lincang Energy (Note 5) - 82,261,857 - 82,261,857 Huizhou Natural Gas (Note 6) - 23,895,462 - 23,895,462 Guangdong Province Wind Power Generation
Co., Ltd. (“Guangdong Wind Power”) - 2,732,374 - 2,732,374 886,604,966 151,136,187 (60,708,691) 977,032,462
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(11) Fixed assets(Cont’d)
(iv) Impairment of fixed assets(Cont’d)
Note 1 Impairment of the asset groups related to generator units of Yuejia Electric
The four generator units of Yuejia Electric were shut down in August 2016. As at 31 December 2018, the disposal of such assets was not completed. As at 31 December 2017 and 31 December 2018, the balance of provision for impairment of the asset groups related to generator units of Yuejia Electric was RMB 480,449,596.
Note 2 Impairment of generator units of Xuwen Wind Power
In July 2014, super typhoon Rammasun slammed the Yongshi Wind Power Plant owned by Xuwen Wind Power. Eighteen generator units were destroyed (Cost of the generator units was RMB 138,358,965, with accumulated depreciation of RMB 11,481,492). As the units were completely destroyed, management recorded provision of RMB 126,877,473 for impairment of these units against their full carrying amounts. As at 31 December 2018, the fixed assets were yet to be disposed.
Note 3 Impairment of ultra-low emissions, energy-saving, and catalyst of denitrification projects
According to Ultra-low Emissions and Energy-saving Transformation Work Program in Full Operation (Huan Fa[2015] No. 164) jointly issued by Ministry of Environmental Protection, National Development and Reform Commission and Bureau of Energy, it required fully operating ultra-low emissions and energy-saving transformation and reducing coal consumption and pollutant discharge. For this purpose, the Group made specific plans to propel the implementation of ultra-low emissions and energy-saving program, so that the reconstruction project of its coal-fired units could be accomplished on schedule and run steadily. Based on the specific circumstance of implementation of theGroup’s coal-fired units on the program, certain part of equipment units are required to be dismantled or scrapped in advance. The Group recorded corresponding provision for impairment according to the expected recoverable amounts of catalyst of denitrification.
As at 31 December 2017, the balance of provision for impairment of ultra-low emissions, energy-saving, and catalyst of denitrification projects was RMB 279,277,897. In 2018, the provision for impairment of the fixed assets amounting to RMB 60,708,691 was reversed due to dismantlement and disposal of related assets.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(11) Fixed assets(Cont’d)
(iv) Impairment of fixed assets(Cont’d)
Note 4 Impairment of the asset groups related to generator units of Shajiao A Power Plant
Pursuant to the Circular on Shutdown of1# Generator Unit of Shajiao A Power Plant and2# Generator Unit of Shajiao B Power Plant([2018] No. 5354) and the Request on Retirement of Shajiao Power Plant and Construction of Alternative Power Source([2018] No. 361) issued by Guangdong Development and Reform Commission,1# generator unit of Shajiao A Power Plant was shut down in November 2018,2# and3# generator units are expected to be shut down by the end of 2019 and4# and5# generator units are expected to be shut down by the end of 2023. In 2018, the Group carried out tests for impairment of the asset groups related to generator units of Shajiao A Power Plant and made a provision for impairment of power generation equipment of1# generator unit, amounting to RMB 40,395,369.
Note 5 Impairment of the asset groups related to generator units and goodwill of Lincang Energy
As the competition in Yunnan hydropower market is fierce, Lincang Energy is suffering from continuous operation loss. In 2018, the Group carried out tests for impairment of the asset groups related to generator units of Lincang Energy and made a provision for impairment, in which that of fixed assets amounted to RMB 82,261,857 and that of intangible assets amounted to RMB 56,502,373, as the carrying amount of related asset groups was lower than the recoverable amount.
In addition, on 5 January 2015, the Group exchanged for51.00% of the equity in Lincang Energy held by third parties with14.34% of equity in Weixin Yuntou. The excess of the combination cost over the fair value of theGroup’s share of LincangEnergy’s identifiable assets and liabilities amounted to RMB 25,036,894 and was recognised as goodwill related to Lincang Energy. In the test of goodwill impairment in 2018, the Group compared the carrying amount of related asset groups (including goodwill) of Lincang Energy with its recoverable amount, and recorded a provision of RMB 25,036,894 for impairment of the goodwill.
The aforesaid recoverable amounts were determined based on the present value of the expected future cash flows of related asset groups and the discount rate of9.98% using the valuation model. Note 6 Pursuant to the Circular on Shutdown of Heating Boilers upon Operation of Huizhou LNG Project Phase II issued by Huizhou municipal government and the Reply to the Environmental Assessment on Cogeneration Expansion Project of Huizhou LNG Power Plant (Yue Huan Shen[2012] No. 291) issued by the Department of Environmental Protection of Guangdong Province, it is required to shut down the dual-fuel heating boilers before the environmental acceptance check of the project completion in prevention of pollution and ecological damages. As such heating boilers were shut down in 2018, management recognised impairment of these assets amounting to RMB 23,895,462.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(11) Fixed assets(Cont’d)
(v) Fixed assets held under finance leases
Accumulated
Cost depreciation Carrying amount 31 December 2018
Power generation equipment 2,962,401,108 (1,303,446,281) 1,658,954,827 31 December 2017
Power generation equipment 3,621,850,800 (1,634,876,213) 1,986,974,587 Details of the future lease payments of fixed assets held under finance leases are disclosed in Note 4(29).
(vi) Fixed assets with pending certificates of ownership:
Reasons for not obtaining certificates Carrying amount of title yet Buildings 306,915,865 Awaiting government approval As at 31 December 2018, after consulting theGroup’s legal consultant, management believed that there were no substantial legal obstacles in obtaining the certificates and no material adverse impact on normal operation of the Group would occur. In addition, the certificates of title for some buildings with the carrying amount of RMB 132,436,039 were obtained in February 2019.
(b) Fixed assets pending for disposal
31 December 2018 31 December 2017 Scraped parts of power generation
equipment 11,136,365 14,622,066 Other equipment 310,201 40,167 11,446,566 14,662,233 (12) Construction in progress
31 December 2018 31 December 2017 Construction in progress (a) 7,739,308,786 8,467,687,340 Construction materials (b) 1,445,557 35,869,033 7,740,754,343 8,503,556,373
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(12) Construction in progress(Cont’d)
(a) Construction in progress
31 December 2018 31 December 2017
Provision for Provision for
Ending balance impairment Carrying amount Ending balance impairment loss Carrying amount Bohe Coal integration project 5,412,887,911 - 5,412,887,911 5,301,125,305 - 5,301,125,305 Huizhou Natural Gas thermal and power
cogeneration expansion project 554,922,342 - 554,922,342 1,368,242,612 - 1,368,242,612 Qujie Wailuo offshore wind power project 543,716,851 - 543,716,851 - - - Yangjiang Shapa offshore wind power
project 232,363,528 - 232,363,528 85,471,097 - 85,471,097 Huadu thermal and power cogeneration
project 89,786,127 - 89,786,127 45,817,111 - 45,817,111 Zhuhai Jinwan Electric offshore wind power
project 43,915,032 - 43,915,032 12,873,258 - 12,873,258 Lincang Dayakou Hydropower Station 37,296,440 - 37,296,440 29,048,654 - 29,048,654 Red BayNo.5&6 generator units 26,446,446 - 26,446,446 26,446,446 - 26,446,446 Xuwen Shiban Ling wind power project 3,741,000 - 3,741,000 224,363,966 - 224,363,966 Jinghai1-4# generators ultra-low emission
reduction alteration project 2,580,251 - 2,580,251 41,786,331 - 41,786,331 Xuwen Qujie Ling wind power project - - - 312,791,806 - 312,791,806 Zhongyue 1, 2# generator units alteration
project - - - 317,584,933 - 317,584,933 Zhanjiang Electric1-4# generators
ultra-low emission reduction alteration
project - - - 43,214,650 - 43,214,650 Humen Electric2*1000MW project 137,373,040 (137,373,040) - 137,373,040 (137,373,040) - Other technology improvement projects 437,488,696 - 437,488,696 356,532,229 (886,463) 355,645,766 Other infrastructure construction projects 382,886,815 (28,722,653) 354,164,162 318,181,628 (14,906,223) 303,275,405 7,905,404,479 (166,095,693) 7,739,308,786 8,620,853,066 (153,165,726) 8,467,687,340
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(12) Construction in progress(Cont’d)
(a) Construction in progress(Cont’d)
(i) Movements of major construction in progress
Including: Proportion of Capitalised Transfer to fixed investment to Capitalised borrowing 31 December Increase in the assets (Note Other 31 December the budget Project borrowing costs for the Capitalisation Project name Budget 2017 current year 4(11)(a)(iii)) Impairment decreases 2018 (%) progress costs year rate Source of fund Bohe Electric Power
Generation Borrowings and integration project 9,785,950,000 5,301,125,305 335,461,627 (37,912,354) - (185,786,667) 5,412,887,911 57.60%49.85% 236,839,166 85,116,205 4.41% own funds Huizhou Natural
Gas thermal and
power
cogeneration Borrowings and expansion project 3,326,370,000 1,368,242,612 1,190,395,261 (1,897,155,707) - (106,559,824) 554,922,342 76.92%98.00% 63,550,006 43,253,357 4.41% own funds Qujie Wailuo
offshore wind Borrowings and power project 7,339,450,000 - 543,716,851 - - - 543,716,851 7.41% 7.41% 2,602,656 2,602,656 4.41% own funds Yangjiang Shapa
offshore wind
power project 5,999,710,000 85,471,097 146,892,431 - - - 232,363,528 3.87% 3.87% - - - Own funds Huadu thermal and
power
cogeneration
project 3,593,160,000 45,817,111 43,969,016 - - - 89,786,127 2.50% 2.50% - - - Own funds Zhuhai Jinwan
Electric offshore
wind power project 5,659,710,000 12,873,258 31,041,774 - - - 43,915,032 0.78% 0.09% - - - Own funds Lincang Dayakou
Hydropower Borrowings and Station 1,209,578,400 29,048,654 8,247,786 - - - 37,456,841 93.56%93.56% 142,886,856 - - own funds Red BayNo.5&6
generator units 7,714,370,000 26,446,446 - - - - 26,446,446 0.34% 0.50% - - - Own funds Xuwen Shiban Ling Borrowings and wind power project 460,639,300 224,363,966 77,767,617 (268,901,222) - (29,489,361) 3,741,000 70.86%70.86% 12,624,058 4,481,254 4.41% own funds Jinghai1-4#
generators
ultra-low emission
reduction alteration
project 558,000,000 41,786,331 125,063,851 (162,243,285) - (2,026,646) 2,580,251 80.43%99.00% - - - Own funds Sub-total 7,135,174,780 2,502,556,214 (2,366,212,568) - (217,302,674) 6,947,655,928 458,502,742 135,453,472
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(12) Construction in progress(Cont’d)
(a) Construction in progress(Cont’d)
(i) Movements of major construction in progress (Cont'd)
Including:
Proportion of Capitalised
Transfer to fixed investment to Capitalised borrowing
31 December Increase in the assets (Note Other 31 December the budget Project borrowing costs for the Capitalisation Project name Budget 2017 current year 4(11)(a)(iii)) Impairment decreases 2018 (%) progress costs year rate Source of fund Xuwen Qujie Ling
wind power Borrowings and project 466,450,000 312,791,806 60,046,198 (347,914,084) - (24,923,920) - 84.82%100.00% 15,220,407 3,825,137 4.41% own funds Zhongyue 1, 2#
generator units Borrowings and alteration project 531,200,000 317,584,933 113,864,919 (431,449,852) - - - 81.10%100.00% 3,824,722 1,524,444 4.90% own funds Zhanjiang Electric
1-4# generators
ultra-low emission
reduction alteration
project 259,000,000 43,214,650 58,563,947 (101,778,597) - - - 84.62%100.00% - - - Own funds Other infrastructure
construction Not Not Not
projects applicable 303,275,405 65,576,693 (871,506) (13,816,430) - 354,164,162 applicable applicable - - - Own funds Other technology
improvement Not Not Not Borrowings and projects applicable 355,645,766 456,996,183 (373,059,507) - (2,093,746) 437,488,696 applicable applicable 532,759 532,759 - own funds Sub-total 1,332,512,560 755,047,940 (1,255,073,546) (13,816,430) (27,017,666) 791,652,858 19,577,888 5,882,340
Total 8,467,687,340 3,257,604,154 (3,621,286,114) (13,816,430) (350,880,164) 7,739,308,786 478,080,630 141,335,812
Other decreases of construction in progress during the year mainly included revenue from trial operation, transfer to other non-current assets (Note 4(12)(a)(iv)), intangible assets, etc.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(12) Construction in progress(Cont’d)
(a) Construction in progress(Cont’d)
(ii) Provision for impairment of construction in progress
31 December Increase in the Decrease in the 31 December
Item 2017 current year current year 2018 Reason for provision Humen Electric2*1000MW project (137,373,040) - - (137,373,040) Stoppage of construction ShajiaoA4# coal yard sea-fill yard capacity Impairment of upfront expenses increase project (5,802,000) - - (5,802,000) for construction in progress Impairment of upfront expenses for Guangdong Impairment of upfront expenses Wind Power project (5,750,094) (9,272,893) - (15,022,987) for construction in progress Impairment of upfront expenses for Lincang Impairment of upfront expenses Hydropower project (3,354,129) - - (3,354,129) for construction in progress Impairment of upfront expenses for Guangqian Impairment of upfront expenses Electric Project Phase II - (4,543,537) - (4,543,537) for construction in progress Impairment of upfront expenses Zhanjiang Electric old office building renovation (886,463) - 886,463 - for construction in progress (153,165,726) (13,816,430) 886,463 (166,095,693)
Note 1 Preparation work including preliminary feasibility studies, design and three supplies and one levelling have proceeded for the project. However, influenced by national policies upon the industry, the project has stagnated for years and signs of entire assets impairment have occurred. After impairment test, management has recorded provision for impairment of the project against its full carrying amount.
(iii) As at 31 December 2018, some projects under construction were pending the approval documents. Management expected to obtain the relevant approval documents as scheduled. In addition, management expected stable cash inflows from operating activities once the new projects were put into production. Therefore, the risk of impairment of such projects was low.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(12) Construction in progress(Cont’d)
(a) Construction in progress(Cont’d)
(iv) In 2018, Guangdong Yudean Bohe Coal Power Co., Ltd. (“Bohe Coal”) sold its construction in progress of power plants to Guangdong Yudean Finance Leasing Co., Ltd. (“Yudean Leasing”) at RMB 900,000,000 through finance leases arising from leaseback. The difference between the selling price and the carrying amount, amounting to RMB 185,786,667, was recognised in other non-current assets as unrealised leaseback losses that would be amortised based on the depreciation progress of the fixed assets subsequently transferred from other non-current assets. As at 31 December 2018, the carrying amount of construction in progress arising from finance leases was RMB 906,981,377 (31 December 2017: Nil).
In 2018, the Group acquired Wailuo offshore wind power project of Qujie Wind Power under finance leases. As at 31 December 2018, the carrying amount of construction in progress arising from finance leases was RMB 240,830,581 (31 December 2017: Nil).
(b) Construction materials
31 December 2018 31 December 2017 Materials for specific use 1,445,557 1,496,854 Equipment for specific use - 34,372,179 1,445,557 35,869,033
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(13) Intangible assets
Associated projects for
electricity transmission Non-patent
and transformation and Transportation technology and
microwave engineering Land use rights Sea use rights project Franchise right Software others Total Cost
31 December 2017 442,517,684 1,812,995,669 129,906,544 22,468,672 13,720,736 109,832,029 950,747 2,532,392,081 Increase in the current year
Purchase - 298,190,440 - - - 5,257,056 6,846,357 310,293,853 Transfer from construction in
progress - - - - - 3,362,027 1,644,828 5,006,855 Disposal - - - - - (1,650,895) (6,412,512) (8,063,407) 31 December 2018 442,517,684 2,111,186,109 129,906,544 22,468,672 13,720,736 116,800,217 3,029,420 2,839,629,382 Accumulated amortisation
31 December 2017 (405,126,139) (295,026,101) (20,484,400) (21,447,068) (9,910,705) (79,987,831) (414,369) (832,396,613) Increase in the current year
Provision (4,202,171) (41,033,020) (2,619,492) - (282,142) (6,289,316) (133,815) (54,559,956) Disposal - - - - - 1,545,309 84,000 1,629,309 31 December 2018 (409,328,310) (336,059,121) (23,103,892) (21,447,068) (10,192,847) (84,731,838) (464,184) (885,327,260) Provision for impairment
31 December 2017 (33,189,374) - - (1,021,604) - - - (34,210,978) Increase in the current year
Charge for the year - (56,502,373) - - - - - (56,502,373) 31 December 2018 (33,189,374) (56,502,373) - (1,021,604) - - - (90,713,351) Book balance
31 December 2018 - 1,718,624,615 106,802,652 - 3,527,889 32,068,379 2,565,236 1,863,588,771 31 December 2017 4,202,171 1,517,969,568 109,422,144 - 3,810,031 29,844,198 536,378 1,665,784,490
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(13) Intangible assets(Cont’d)
(a) In 2018, the amortised amount of intangible assets was RMB 54,559,956 (2017: RMB 54,513,592).
(b) As at 31 December 2018 and 31 December 2017, provisions for impairment of the use rights of associated projects for electricity transmission and transformation and microwave engineering and transportation engineering of Yuejia Electric were made at amount of RMB 34,210,978, and the provision for impairment of the land use rights of Lincang Energy amounted to RMB 56,502,373 (Note 5 under Note 4(11)(iv)).
(c) As at 31 December 2018, the Group had obtained land use right certificates for all of its lands, except for lands with carrying amount of RMB 34,063,121 (31 December 2017: RMB 48,304,742) that were under approval procedures for land use. After consulting theGroup’s legal consultant, management believed that there were no substantial legal obstacles in obtaining the certificates and no material adverse impact on the normal operation of the Group will be incurred.
(14) Goodwill
31 December Increase in the 31 December 2017 current year 2018 Goodwill -
Guangdong Wind Power
(a) 2,449,886 - 2,449,886 Lincang Energy (Note 5
under Note 4(11)(iv)) 25,036,894 - 25,036,894 27,486,780 - 27,486,780 Less: Provision for
impairment -
Lincang Energy (Note 5
under Note 4(11)(iv)) - (25,036,894) (25,036,894) - (25,036,894) (25,036,894) 27,486,780 (25,036,894) 2,449,886
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(14) Goodwill(Cont’d)
(a) In 2013, the Group acquired55% shares in Guangdong Wind Power with a combination cost of RMB 5,994,670. The excess of the combination cost over the fair value of theGroup’s share of Guangdong WindPower’s identifiable assets and liabilities amounted to RMB 2,449,886 and was recognised as goodwill.
(15) Long-term prepaid expenses
Amortisation
31 December Increase in the charged in the 31 December 2017 current year current year 2018 Long-term lease charges 19,343,793 - (2,028,165) 17,315,628 Improvements to fixed assets
held under operating leases 5,689,614 722,804 (1,638,867) 4,773,551 Others 1,973,964 - (1,973,964) - 27,007,371 722,804 (5,640,996) 22,089,179
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(16) Deferred tax assets and deferred tax liabilities
(a) Deferred tax assets before offsetting
31 December 2018 31 December 2017
Deductible temporary Deductible temporary
differences and differences and
deductible losses Deferred tax assets deductible losses Deferred tax assets Provision for asset
impairments 592,790,665 138,530,294 601,414,037 150,345,688 Deductible losses 1,023,611,123 254,800,254 543,075,416 135,768,855 Intra-group transactions 184,890,744 46,222,686 202,928,868 50,732,217 Net income from test run
included in construction in
progress 169,034,589 39,513,222 117,089,330 26,510,083 Employee benefits payable 98,124,525 22,227,221 86,241,170 21,560,293 Depreciation of fixed assets 77,115,313 19,278,829 76,893,416 19,223,353 Capital government grants 78,570,400 19,642,600 56,576,917 14,144,229 Amortisation of land use
rights 3,313,344 828,336 3,170,586 792,647 2,227,450,703 541,043,442 1,687,389,740 419,077,365 Including:
Expected to be recovered
within one year (inclusive) 60,853,542 115,367,229 Expected to be recovered
after one year 480,189,900 303,710,136 541,043,442 419,077,365 (b) Deferred tax liabilities before offsetting
31 December 2018 31 December 2017
Taxable temporary Deferred tax Taxable temporary Deferred tax differences liabilities differences liabilities Changes in fair value of
available-for-sale financial
assets included in other
comprehensive income (704,342,515) (176,085,629) (153,664,369) (38,416,092) Revaluation upon acquisition - - (91,379,088) (22,844,772) Net expenses in test run
included in construction in
progress (52,176,856) (13,044,215) (37,809,283) (9,452,322) Amortisation of land use
rights (16,835,020) (4,208,755) - - (773,354,391) (193,338,599) (282,852,740) (70,713,186) Including:
Expected to be recovered
within one year (inclusive) (1,077,794) (1,492,421) Expected to be recovered
after one year (192,260,805) (69,220,765) (193,338,599) (70,713,186)
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(16) Deferred tax assets and deferred tax liabilities(Cont’d)
(c) Deductible temporary differences and deductible losses that are not recognised as deferred tax assets are analysed as follows:
31 December 2018 31 December 2017 Deductible temporary differences 1,101,102,084 936,551,327 Deductible losses 1,124,573,498 587,890,568 2,225,675,582 1,524,441,895 (d) Deductible losses that are not recognised as deferred tax assets will be expired in following years: 31 December 2018 31 December 2017 2018 - 2,504,832 2019 3,341,528 8,513,773 2020 172,104 5,008,444 2021 141,098,222 148,194,058 2022 412,387,834 423,669,461 2023 567,573,810 - 1,124,573,498 587,890,568 Management believed that as at the maturity date for the above deductible losses, the relevant subject of tax payment does not have sufficient taxable income to deduct the above deductible losses, therefore no related deferred tax asset was recognised.
(e) The net balances of deferred tax assets and liabilities after offsetting are as follows:
31 December 2018 31 December 2017
Offsetting Balance after Offsetting Balance after amount offsetting amount offsetting Deferred tax assets (92,611,758) 448,431,684 (46,524,326) 372,553,039 Deferred tax liabilities 92,611,758 (100,726,841) 46,524,326 (24,188,860)
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(17) Other non-current assets
Item 31 December 2018 31 December 2017 VAT input to be offset 581,667,123 - Prepayments for equipment 482,385,711 165,761,100 Prepayment for construction 462,720,385 350,347,973 Unrealised losses on sales and leaseback (a) 340,505,389 173,916,629 Prepayment for land use rights 3,732,680 3,732,680 Others 604,970 889,151 1,871,616,258 694,647,533 (a) Unrealised losses on sales and leaseback are the difference between the selling price of the power generation equipment and its carrying amount, and its remaining balance after depreciation was based on the depreciation progress of the leaseback power generation equipment. In 2018, the unrealised losses on sales and leaseback, which were amortised in depreciation expenses in cost of sales from main operations, amounted to RMB 19,197,908 (2017: RMB: 19,787,236).
(18) Provision for asset impairments
Transfer from
Transfer to provision for
provision for impairment of
impairment of available-for-sa
31 December Increase in the long-term equity le financial Write-off in the 31 December 2017 current year investments assets current year 2018 Provision for bad debts (6,846,527) (3,061,038) - - - (9,907,565) Including: -
Provision for bad debts of
accounts receivable - (157,709) - - - (157,709) Provision for bad debts of
other receivables (6,846,527) (2,598,328) - - - (9,444,855) Provision for bad debts of
advances to suppliers - (305,001) - - - (305,001) Provision for decline in the
value of inventories (17,420,859) (2,136,875) - - - (19,557,734) Provision for impairment of
fixed assets (886,604,966) (151,136,187) - - 60,708,691 (977,032,462) Provision for impairment of
construction in progress (153,165,726) (13,816,430) - - 886,463 (166,095,693) Provision for impairment of
available-for-sale
financial assets (25,010,686) - 25,010,686 - - - Provision for impairment of
long-term equity
investments - - - (25,010,686) - (25,010,686) Provision for impairment of
intangible assets (34,210,978) (56,502,373) - - - (90,713,351) Provision for impairment of
goodwill - (25,036,894) - - - (25,036,894) (1,123,259,742) (251,689,797) 25,010,686 (25,010,686) 61,595,154 (1,313,354,385) (19) Short-term borrowings
31 December 2018 31 December 2017 Credit loan 7,526,000,000 9,270,000,000 (a) As at 31 December 2018, the annual interest rates of the short-term borrowings ranged from3.92% to4.70% (31 December 2017: from3.92% to5.02%).
(b) As at 31 December 2018, the balance of short-term credit loans provided by related party Yudean Finance amounted to RMB 5,042,000,000 (31 December 2017: RMB 5,637,000,000) (Note 8(6)).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(20) Notes and accounts payables
31 December 2018 31 December 2017 Notes payable (a) 941,161,107 297,611,800 Accounts payable (b) 2,196,600,415 2,219,027,261 3,137,761,522 2,516,639,061 (a) Notes payable
31 December 2018 31 December 2017 Bank acceptance notes 555,000,000 297,611,800 Trade acceptance notes 386,161,107 - 941,161,107 297,611,800 The above notes payable are all due within one year.
(i) The Group used acceptance notes to pay for coal or fuel procured from the Industry Fuel. According to the three-party agreement signed among the Group, Yudean Finance and Industry Fuel, discounting expenses will be borne by the Group when Industry Fuel discounts the notes they receive. As at 31 December 2018, the balance of bank acceptance notes issued by the Group and discounted by Industry Fuel with Yudean Finance amounted to RMB 386,161,107 (31 December 2017: Nil) with discount rate of3.92%. The acceptance notes were due from three to twelve months. The balance of notes issued and accepted by Yudean Finance amounted to RMB 267,000,000 (31 December 2017: RMB 230,000,000 in which RMB 67,611,800 had not been claimed by Industry Fuel) with discount rate of3.92% to4.29% (31 December 2017:2.70% to4.17%). The acceptance notes were due from three to twelve months (31 December 2017: due from three to twelve months)(Note 8(6)). In 2018, the discounting interest charged by Yudean Finance and borne by the Group which was included in the discounting interest expenses in the year amounted to RMB 13,243,370 (31 December 2017: RMB 13,638,031)(Note 8(5)(i)).
(b) Accounts payable
31 December 2018 31 December 2017 Fuel payable 1,671,130,460 1,530,075,127 Materials and spare parts payable 473,108,337 483,460,431 Maintenance and administrative fees payable - 89,461,265 Others 52,361,618 116,030,438 2,196,600,415 2,219,027,261
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(20) Notes and accounts payables (Cont'd)
(b) Accounts payable (Cont'd)
As at 31 December 2018, accounts payable with ageing over one year amounted to RMB 175,747,169 (31 December 2017: RMB 136,266,488), mainly fuel and materials payable of RMB 133,287,041 (31 December 2017: RMB 89,461,265) and maintenance and administrative fees payable of RMB 40,840,315 (31 December 2017: RMB 46,805,223).
(21) Advances from customers
31 December 2018 31 December 2017 Advances from disposal of materials 155,328 - Advances for grid payment - 1,713,424 Others 188,566 224,799 343,894 1,938,223 As at 31 December 2018, there were no large advances from customers ageing over one year (31 December 2017: Nil).
(22) Employee benefits payable
31 December 2018 31 December 2017 Short-term employee benefits payable (a) 179,432,031 140,101,582 Defined contribution plans payable (b) 29,372,990 - Termination benefits payable (c) 26,936,158 17,637,046 235,741,179 157,738,628 (a) Short-term employee benefits payable
31 December Increase in the Decrease in the 31 December 2017 current year current year 2018 Wages and salaries, bonus,
allowances and subsidies 50,978 1,152,154,891 (1,152,205,869) - Staff welfare 1,864,884 116,950,231 (116,955,772) 1,859,343 Social security contributions 50,409,762 120,559,167 (85,771,497) 85,197,432 Including: Medical insurance 50,409,762 113,521,664 (78,733,994) 85,197,432 Work injury insurance - 2,079,863 (2,079,863) - Maternity insurance - 4,957,640 (4,957,640) - Housing funds - 136,880,139 (136,880,139) - Labour union funds and employee
education funds 82,841,668 43,614,018 (39,221,908) 87,233,778 Other short-term employee benefits 4,934,290 78,861,263 (78,654,075) 5,141,478 140,101,582 1,649,019,709 (1,609,689,260) 179,432,031
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(22) Employee benefits payable (Cont'd)
(b) Defined contribution plans payable
31 December Increase in the Decrease in the 31 December 2017 current year current year 2018 Basic pensions - 153,569,624 (153,569,624) - Unemployment insurance - 4,734,162 (4,734,162) - Annuity - 83,086,609 (53,713,619) 29,372,990 - 241,390,395 (212,017,405) 29,372,990 (c) Termination benefits payable refer to early retirement benefits payable due by the Group within one year (Note 4(31)).
(23) Taxes payable
31 December 2018 31 December 2017 Unpaid VAT 242,647,263 159,547,521 Enterprise income tax payable 115,757,551 59,224,530 Individual income tax payable 12,437,608 29,612,341 Water resource fee payable 6,706,870 945,169 City maintenance and construction tax
payable 4,418,167 3,500,667 Educational surcharge payable 3,469,767 2,895,952 Pollution discharge fee payable and
environmental protection tax payable 3,389,557 2,996,840 Property tax payable 3,347,609 2,877,522 Land use tax payable 2,122,128 14,990,255 Others 2,705,186 694,605 397,001,706 277,285,402
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(24) Other payables
31 December 2018 31 December 2017 Construction and equipment expenses payable 3,622,672,965 3,430,308,319 State Oceanic Administration penalty payable
(b) 183,676,050 172,144,350 Project warranty payable 118,821,787 156,112,962 Interest payable 59,316,077 98,553,104 Interest payable for long-term borrowings with
interest paid in instalment and principal
repaid on maturity 29,830,979 36,701,382 Interest payable for debentures 17,070,842 50,486,869 Interest payable for short-term borrowings 10,103,964 11,010,687 Other interest payable 2,310,292 354,166 Payables to non-tradable owners of the
Company (c) 9,703,930 9,703,930 Payables for advances 1,153,204 12,726,072 Payables for purchase of unit capacity - 4,000,000 Others 157,174,482 133,220,968 4,152,518,495 4,016,769,705 (a) As at 31 December 2018, other payables of RMB 2,002,311,622 (31 December 2017: RMB 1,742,036,695) aged over one year mainly represented (i) construction and equipment expenses payable and project warranty payable not being settled because the comprehensive acceptance and settlement of relevant projects were yet to be completed or projects were still within their warranty periods; and (ii) State Oceanic Administration penalty payable not being paid because judicial proceedings related to the penalty had not been completed.
(b) State Oceanic Administration penalty payable
(i) State Oceanic Administration penalty payable refers to the penalties amounting to RMB 172,144,350 and RMB 11,531,700 respectively imposed by the Administration of Ocean and Fisheries of Guangdong Province and the Administration of Ocean and Fisheries of Huidong County with penalty notice in 2016 and 2018 against Guangdong Huizhou Pinghai Power Plant (“Pinghai Power”) due to its unapproved execution of engineering and bank revetment project from August 2007 to June 2016. The penalties had been recorded as non-operating expenses in 2016 and 2018 respectively. As at 31 December 2018, Pinghai Power had appealed for the aforesaid matter, but the litigation outcome had not been determined. Since the penalties remain unpaid, they are presented in other payables. According to the Agreement on Share Issuance and Asset Procurement entered into by GEGC and the Company in 2012, GEGC makes commitments that, if the targetcompany’s activities before the closing date cause itself potential significant litigation, arbitration, administrative punishment and/or other events that go against relevant laws and regulations and fail to present in the target asset prices as well as in the net asset value of the target company determined in the special audit on the closing date, any damage caused by such activities to the Company would be compensated by GEGC timely and sufficiently in cash based on the equity of target company transferred to the Company in the transaction within 30 days after GEGC legally determines the actual losses caused by such activities. GEGC would make compensation to the Company based on the litigation result of the punishment in 2016 and the actual losses caused by such case. As the litigation result of the punishment remain undetermined, the Group could not determine the compensation obtained from GEGC, thus the Group did not recognise the receivables and income in 2018.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(24) Other payables(Cont’d)
(c) The above dividend payable refers to dividend payable for non-tradable shares reform that is in the process of completing necessary formalities. The payment will be arranged after the formalities are completed.
(25) Current portion of non-current liabilities
31 December 2018 31 December 2017 Long-term borrowings due within one year (a)
(Note 4(27)) 1,745,797,372 1,445,497,943 Debentures payable due within one year (b) (Note
4(28)) 698,667,556 1,197,935,476 Long-term payables due within one year (c) (Note
4(29)) 334,882,726 369,256,941 2,779,347,654 3,012,690,360 (a) Long-term borrowings due within one year
Item 31 December 2018 31 December 2017 Pledged loan (i) 213,259,115 209,579,575 Guaranteed loan (ii) 55,827,500 58,427,500 Credit loan 1,476,710,757 1,177,490,868 1,745,797,372 1,445,497,943 (i) As at 31 December 2018, the charge right for electricity and accounts receivable were treated as pledge for long-term pledged loan due within one year for the following subsidiaries:
31 December 2018 31 December 2017 Yuejiang Power 186,859,840 180,897,292 Zhanjiang Wind Power 18,274,167 17,520,000 Xuwen Wind Power 6,527,993 10,062,668 Leizhou Wind Power 1,597,115 1,099,615 213,259,115 209,579,575
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(25) Current portion of non-current liabilities(Cont’d)
(a) Long-term borrowings due within one year(Cont’d)
(ii) As at 31 December 2018, Zhanjiang Wind Power provided maximum amount guarantee for Xuwen WindPower’s long-term borrowings of RMB 11,827,500 (31 December 2017: RMB 10,427,500) due within one year. The Company provided joint and several guarantee for YuejiangPower’s long-term borrowings of RMB 44,000,000 (31 December 2017: RMB 48,000,000) due within one year.
(iii) As at 31 December 2018, the annual interest rate of long-term borrowings due within one year ranges from1.29% to4.90% (31 December 2017: from1.29% to4.90%). The borrowings will be due within 12 months.
(b) Details of debentures payable due within one year are disclosed in Note 4(28)
(c) Long-term payables due within one year
As at 31 December 2018, long-term payables due within one year were the net financing lease payable of RMB 334,882,726 (namely, the remaining net amount of the total amount of RMB 356,362,496 after deducting the unrecognised finance charge of RMB 21,479,770). As at 31 December 2017, long-term payables due within one year were the net financing lease payable of RMB 369,256,941 (namely, the remaining net amount of the total amount of RMB 403,242,457 after deducting the unrecognised finance charge of RMB 33,985,516).
As at 31 December 2018, details of long-term payables due within one year have been disclosed in Note 4(29).
(26) Other current liabilities
31 December 2018 31 December 2017 Short-term debentures payable 1,107,904,110 -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(26) Other current liabilities(Cont’d)
Related information of short-term debentures payable is as follows:
Amortisation
Issuance Maturity Issuance 31 December Issuance Interest at of discounts Repayments for 31 December Face value date period amount 2017 during the year face value or premium the year 2018 First batch of short-term financing
notes issued by Guangdong
Electric Power Development Co., 180
Ltd., 2018 500,000,000 06/06/2018 days 500,000,000 - 500,000,000 10,479,452 - (510,479,452) - Second batch of short-term
financing notes issued by
Guangdong Electric Power 180
Development Co., Ltd., 2018 600,000,000 24/08/2018 days 600,000,000 - 600,000,000 7,740,000 - - 607,740,000 Third batch of short-term financing
notes issued by Guangdong
Electric Power Development Co.,
Ltd., 2018 500,000,000 28/11/2018 28 days 500,000,000 - 500,000,000 978,082 - (500,978,082) - Fourth batch of short-term financing
notes issued by Guangdong
Electric Power Development Co., 152
Ltd., 2018 500,000,000 27/12/2018 days 500,000,000 - 500,000,000 164,110 - - 500,164,110 2,100,000,000 2,100,000,000 - 2,100,000,000 19,361,644 - (1,011,457,534) 1,107,904,110 In 2018, the interest rate of short-term financing notes issued by the Company was from2.55% to4.25% (2017: Nil).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(27) Long-term borrowings
31 December 2018 31 December 2017 Pledged loan (a) 2,765,356,586 2,698,978,707 Loan secured by mortgages (b) - 85,000,000 Guaranteed loan (c) 1,606,112,500 1,665,240,000 Credit loan 16,176,620,950 16,462,003,105 20,548,090,036 20,911,221,812 Less: Long-term borrowings due within
one year (Note 4(25)(a)) (1,745,797,372) (1,445,497,943) 18,802,292,664 19,465,723,869 (a) As at 31 December 2018, the charge right for electricity and accounts receivable were treated as pledge for long-term pledged loan for the following subsidiaries:
31 December 2018 31 December 2017 Yuejiang Power (i) 2,151,963,439 2,276,504,889 Leizhou Wind Power (ii) 236,829,612 188,420,594 Qujie Wind Power (iii) 162,820,000 - Zhanjiang Wind Power (iv) 138,945,000 156,465,000 Xuwen Wind Power (v) 74,798,535 77,588,224 2,765,356,586 2,698,978,707 (i) As at 31 December 2018, theCompany’s subsidiary Yuejiang Power borrowed RMB 2,151,963,439 from bank consortium and the Industrial and Commercial Bank of China, secured by YuejiangPower’s right to charge electricity. The maturity date is on 21 June 2020 and the annual interest rate is4.53% (2017: ranges from4.41% to4.53%). The borrowings include long-term borrowings due within one year amounting to RMB 186,859,840 (2017: RMB 2,276,504,889, including long-term borrowings due within one year amounting to RMB 180,897,292).
(ii) TheCompany’s subsidiary Leizhou Wind Power obtained loans from the Industrial and Commercial Bank of China. According to the loan contract, the category of the loan was changed from credit loan to pledged loan after Leizhou Wind Power was put into operation in December 2017, and the loan should be secured by Leizhou WindPower’s right to charge electricity. As at 31 December 2018, the balance of pledged loan was RMB 236,829,612, with the maturity date of 29 April 2030 and the interest rate ranged from4.41% to4.90%, including a long-term borrowings due within one year amounting to RMB 1,597,115 (31 December 2017: RMB 188,420,594, including a long-term borrowings due within one year amounting to RMB 1,099,615, with the interest rate ranged from4.41% to4.66%).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(27) Long-term borrowings(Cont’d)
(a) Pledged loan(Cont’d)
(iii) As at 31 December 2018, for the construction of Zhanjiang Wailuo offshore wind power project, theCompany’s subsidiary Qujie Wind Power borrowed RMB 162,820,000 from bank consortium and the Bank of China, which was secured by Qujie WindPower’s right to charge electricity. The maturity date is 27 December 2036 and the annual interest rate is4.80%.
(iv) As at 31 December 2018, theCompany’s subsidiary Zhanjiang Wind Power borrowed RMB 138,945,000 from the Industrial and Commercial Bank of China, secured by Zhanjiang WindPower’s right to charge electricity. The maturity date is 7 May 2024 and the annual interest rate is4.41% (2017:4.66%). The borrowings include long-term borrowings due within one year amounting to RMB 18,274,167 (2017: RMB 156,465,000, including long-term borrowings due within one year amounting to RMB 17,520,000).
(v) Based on the Loan Transfer Agreement of Yudean Yongshi Wind Power Project for Loan Protocol under the Climate Change Framework of European Investment Banks between Zhanjiang Wind Power and Department of Finance of Guangdong Province, theCompany’s subsidiary Zhanjiang Wind Power acquired an USD loan transferred from the Loan Protocol under‘Chinese Climate ChangeFramework’ between China and European investment banks. The loan has been used on Xuwen Yongshi Wind Power project and is secured by Xuwen WindPower’s right for revenue of electricity charge. As at 31 December 2018, the balance of the loan above was totalled at USD 10,898,493 (equivalent to RMB 74,798,535) (2017: USD 11,874,173 (equivalent to RMB 77,588,224)), among which balance of the long-term borrowings due within one year amounted to USD 951,159 (equivalent to RMB 6,527,993) (2017: USD 1,540,000 (equivalent to RMB 10,062,668)). The maturity date of the loan is 2 March 2029 with the annual interest rate from0.92%% to1.29% (2017: from0.92% to1.29%). Meanwhile, the loans are guaranteed by the Company.
(b) As at 31 December 2018, the loans secured by mortgages of RMB 85,000,000 of Shenzhen Guangqian Electric Co., Ltd (“Guangqian Electric”) were totally repaid.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(27) Long-term borrowings(Cont’d)
(c) As at 31 December 2018, the balance of theCompany’s subsidiary Xuwen WindPower’s long-term borrowings from Yudean Finance was RMB 29,800,000, including long-term borrowings due within one year of RMB 7,400,000, which was secured by the guarantee provided by Zhanjiang Wind Power (2017: RMB 37,200,000, including long-term borrowings due within one year amounted to RMB 7,400,000). The annual interest rate of the loan is4.66% (2017:4.66%), and the maturity date is 21 August 2022.
As at 31 December 2018, the balance of theCompany’s subsidiary Xuwen WindPower’s long-term borrowings from Yudean Finance was RMB 18,300,000, including long term borrowings due within one year of RMB 1,400,000, which was secured by the guarantee provided by Zhanjiang Wind Power (2017: RMB 19,000,000). The annual interest rate of the loan is4.41% (2016:4.66%), and the maturity date is 28 November 2031.
As at 31 December 2018, the balance of theCompany’s subsidiary Xuwen WindPower’s long-term borrowings from the Bank of Communications Co., Ltd. was RMB 14,012,500, including long-term borrowings due within one year of RMB 3,027,500, which was secured by the guarantee provided by Zhanjiang Wind Power (2017: RMB 17,040,000, including long-term borrowings due within one year amounted to RMB 3,027,500). The annual interest rate of the loan is4.90% (2017:4.90%), and the maturity date is 5 December 2022.
As at 31 December 2018, GEGC provided guarantee for theCompany’s long-term borrowings of RMB 1,500,000,000 (2017: RMB 1,500,000,000) from Pacific Investment Management. The interest rate of the loan is5.00% (2017:5.00%), and the maturity date is 13 August 2020.
As at 31 December 2018, the long-term borrowings of theCompany’s subsidiary Yuejiang Power amounting to RMB 44,000,000 were secured by the guarantee provided by the Company based on its proportion of shareholding. The balance of the long-term borrowings due within one year included in the loan was RMB 44,000,000 (31 December 2017: RMB 92,000,000, among which balance of long-term borrowings due within one year was RMB 48,000,000). The interest rate of the borrowings is4.90% (2017:4.75%), and the maturity date is 2 July 2019.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(28) Debentures payable
Reversal from Transferred to
Issuance Amortisation of current portion of current portion of
31 December during the Interest at discounts or Repayments for non-current non-current 31 December 2017 year face value premium the year liabilities liabilities 2018 16 Pinghai Bond 01 (a) 698,168,211 - - 499,345 - - (698,667,556) - 12 Yudean Bond (b) - - - 2,027,433 (1,159,693,500) 1,197,935,476 - 40,269,409 First batch of middle-term notes
issued by Guangdong Electric
Power Development Co., Ltd.,
2018 (c) - 797,744,000 - 313,333 - - - 798,057,333 698,168,211 797,744,000 - 2,840,111 (1,159,693,500) 1,197,935,476 (698,667,556) 838,326,742 (a) As approved by CSRC Circular SFC License[2016] No. 1864, theCompany’s subsidiary Pinghai Power issued 5-year book-entry corporate debentures in real-name system with face value of RMB 700,000,000 (“16 Pinghai Bond 01”) to the public on 26 September 2016. The Company altogether raised RMB 697,375,000 after deducting an issue expense of RMB 2,625,000. The loan is subject to an annual interest rate of3.10% counted from 26 September 2016 and should be payable annually on simple interest. According to the prospectus for 16 Pinghai Bond, the bondholder is entitled to sell its “16 Pinghai Bond 01” back to the Company in whole or in part based on the face value on the interest payment date in the third interest-bearing year of the bond. Therefore, the Company transferred the balance of debentures payable to the current portion of non-current liabilities. As at 31 December 2018, debentures payable were measured at amortised cost using effective interest method, with the effective interest rate of3.18%.
(b) As approved by CSRC Circular SFC License[2012] No. 1421, the Company issued 7-year book-entry corporate debentures in real-name system with face value of RMB 1,200,000,000 (“12 Yudean Bond”) to the public on 18 March 2013. The Company altogether raised RMB 1,193,330,000 after deducting an issue expense of RMB 6,670,000. The loan is subject to an annual interest rate of4.95% counted from 18 March 2013 and should be payable annually on simple interest. According to the prospectus for 12 Yudean Bond, the bondholder is entitled to sell its “12 Yudean Bond” back to the Company in whole or in part based on the face value on the interest payment date in the third interest-bearing year of the bond. As at the fifth interest-bearing date, the Company had repaid RMB 1,159,693,500, and the rest would be repaid on the maturity date, 17 March 2020. Therefore, the Company transferred the balance of current portion of non-current liabilities back to the debentures payable. As at 31 December 2018, debentures payable were measured at amortised cost using effective interest method, with the effective interest rate of5.04%.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(28) Debentures payable(Cont’d)
(c) TheCompany’s application for registration of middle-term notes has been accepted by the National Association of Financial Market Institutional Investors at its 28th meeting in 2018. The registered amount of RMB 5,000,000,000 would be valid for 2 years starting from 26 April 2018. On 27 August 2018, the Company issued 3-year middle-term notes with face value of RMB 800,000,000 in the interbank market. The Company altogether raised RMB 797,744,000 after deducting an issue expenses of RMB 2,256,000, which should be paid in three years. As at 31 December 2018, the issue expenses of RMB 752,000 had been paid. The loan is subject to an annual interest rate of4.19% counted from 27 August 2018 and should be payable annually on simple interest. As at 31 December 2018, debentures payable were measured at amortised cost using effective interest method, with the effective interest rate of4.29%.
(29) Long-term payables
31 December 2018 31 December 2017 Long-term payables (a) 2,221,230,656 1,548,259,241 Payables for specific projects (b) 90,282,593 64,605,011 2,311,513,249 1,612,864,252 (a) Long-term payables
31 December 2018 31 December 2017 Finance lease payable (i) 2,466,113,382 1,827,516,182 Payables for share repurchase (ii) 90,000,000 90,000,000 Less: Long-term payables due within one
year (334,882,726) (369,256,941) 2,221,230,656 1,548,259,241 (i) The finance lease payable is mainly the balance of minimum lease payment less unrecognised finance charge for power generation equipment by subsidiaries - Jinghai Power, Yuejiang Power and Zhongyue Energy, Bohe Coal and Qujie Wind Power. The Company provided guarantee for YuejiangPower’s finance lease up to65% of total amount of the finance lease and signed a counter guarantee contract with Yuejiang Power.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(29) Long-term payables(Cont’d)
(a) Long-term payables(Cont’d)
(i) Finance lease payable(Cont’d)
TheGroup’s minimum finance lease payments are as follows:
Minimum finance lease payments 31 December 2018 31 December 2017 Within 1 year (inclusive) 356,362,496 403,242,457 Over 1 year but within 2 years (inclusive) 334,799,400 373,429,119 Over 2 years but within 3 years (inclusive) 192,216,671 353,810,789 Over 3 years 1,613,987,015 761,447,305 Sub-total 2,497,365,582 1,891,929,670 Less: Unrecognised finance charge (31,252,200) (64,413,488) 2,466,113,382 1,827,516,182 The above finance lease payable due within one year less unrecognised finance charge is listed in Note 4(25).
(ii) In 2016, Guangdong Yuecai Investment Management Co., Ltd (“Yuecai Investment”) injected capital of RMB 10,000,000 to theCompany’s subsidiary Leizhou Wind Power and capital of RMB 50,000,000 to theCompany’s subsidiary Dianbai Wind Power, and obtained30% equity of theCompany’s subsidiary Xuwen Wind Power with a consideration of RMB 30,000,000. According to the agreement, the Group shall repurchase the shares held by Yuecai Investment after the five-year equity participation, and the price of repurchase shall equals to YuecaiInvestment’s actual amount of contribution of RMB 90,000,000. The Group should pay equity premium to Yuecai Investment at fixed proportion annually.
(b) Payables for specific projects
Opening Increase in the Decrease in the Ending Item balance current year current year balance Supporting funds for expansion
(i) 24,960,000 - - 24,960,000 Special fund for supply of
water, power and heat and
property management (ii) 39,645,011 35,376,867 (9,699,285) 65,322,593 64,605,011 35,376,867 (9,699,285) 90,282,593
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(29) Long-term payables(Cont’d)
(b) Payables for specific projects(Cont’d)
(i) The payables for specific projects represent the fund granted for benefits improvement and capacity expansion by governments at provincial and central level. According to the document issued by Yunnan Water Conservancy& Hypower Investment Co., Ltd. (Yun Shui Tou Fa[2015] No. 16), such payables for specific project were subject to an interest rate of4% from 1 January 2015. The corresponding interest was recorded in the financial expenses by the Company.
(ii) Such payables for specific projects represent the fund for supply of water, electricity and heat and property management granted by the Department of Finance of Guangdong Province and GEGC and received from Shaoguan Electric Power Plant based on agreement, including RMB 32,205,311 from the Department of Finance of Guangdong Province and Yudean, RMB 38,647,834 from GEGC and payables of RMB 4,168,733 from Shaoguan Electric Power Plant. The special fund used in the current year amounted to RMB 9,699,285. According to the document issued by Department of Finance of Guangdong Province (Yue Cai Gong[2017] No. 22), the special fund is used for the renovation and reconstruction of the supply of water, electricity and heat and property management inemployees’ family area charged by provincial enterprises.
(30) Deferred income
31 December Increase in the Decrease in the 31 December
2017 current year current year 2018 Source Grants Government provided by grants (a) 142,520,263 16,712,775 (26,189,392) 133,043,646 government
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(30) Deferred income(Cont’d)
(a) Government grants
Decrease in the current year
31 December Increase in the Recorded in Other 31 December Asset related/ Government grants Note 2017 current year other income movements 2018 income related Shajiao A Zhenkou pump house (i) 28,560,022 - (753,231) - 27,806,791 Asset related Energy saving funds (ii) 20,863,104 - (4,112,576) - 16,750,528 Asset related Tax refund for PRC-made equipment (iii) 17,221,559 - (2,296,209) - 14,925,350 Asset related Comprehensive technology upgrading for the energy
saving of1&2# generator units turbine (iv) 10,000,000 - (769,231) - 9,230,769 Asset related Incentives for energy efficiency of power plant by
Dongguan (v) 8,781,631 - (543,194) - 8,238,437 Asset related Development and competitiveness funds from SASAC (vi) 8,666,666 - (666,666) - 8,000,000 Asset related Second incentives for comprehensive and typical
demonstration projects under financial policies of
energy saving 8,100,000 - (450,000) - 7,650,000 Asset related Post rewarding subsidies for ultra-low emissions of
1&2# generators - 7,440,000 (527,660) - 6,912,340 Asset related Post rewarding subsidies for ultra-low emissions of
designated account of special fund in Maonan
District of Maoming in 2018 - 4,405,000 (338,846) - 4,066,154 Asset related Energy saving funds used as policy liquidation
subsidies in previous years 4,165,231 - (4,165,231) - - Asset related Expansion on flow reconstruction project 3,887,055 - (262,007) - 3,625,048 Asset related Shajiao A - 2016 central finance energy saving fund 3,783,124 - (255,001) - 3,528,123 Asset related Incentive funds for construction of large industrial
enterpriseR&D institutions in Shanwei - 3,000,000 - - 3,000,000 Asset related Dianbai Reshui wind power plant project 3,000,000 - - - 3,000,000 Asset related Refurbishment on air preheater 3,093,442 - (205,791) - 2,887,651 Asset related Sub-total 120,121,834 14,845,000 (15,345,643) - 119,621,191
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(30) Deferred income(Cont’d)
(a) Government grants (Cont'd)
Decrease in the current year
31 December Increase in the Other 31 December Asset related/ Government grants Note 2017 current year Other income movements 2018 income related Special prize funds of recycle economy and energy saving by
Shenzhen 2,707,321 - (246,666) - 2,460,655 Asset related Denitration project 2,585,029 - (308,135) - 2,276,894 Asset related Specific funds for denitrification and energy saving reconstruction
of 300MW generator units at Yuejiang Power Plant 5,330,700 - - (4,110,686) 1,220,014 Asset related Water-freshing project 1,076,924 - (153,846) - 923,078 Asset related Circulating water pump special fund for technological renovation 1,000,000 - (76,923) - 923,077 Asset related1&2# Air preheater energy saving project 1,000,000 - (76,923) - 923,077 Asset related 2X600MW generator unit ultra-low emission transformation -
technical transformation for main auxiliary equipment of turbine
cold end system and boiler - 1,000,000 (76,923) - 923,077 Asset related Rewarding subsidies for science and technology in 2018 - 732,500 - - 732,500 Asset related 2018 provincial special fund for boosting economic development
as transferred by the Department of Finance of Zhanjiang,
Chikan Office - upgrading and transformation of low-voltage
generators with high energy consumption - 135,275 (22,546) - 112,729 Asset related Desulfurization project Shajiao A5# generator unit 3,076,924 - (3,076,924) - - Asset related Special funds for differential electricity price 1,026,886 - (1,026,886) - - Asset related Special prize funds of recycle economy and energy saving by
Shaoguan 923,896 - (923,896) - - Asset related Government subsidies from the financial treasury payment centre
of Qujiang District, Shaoguan 3,568,379 - (641,025) - 2,927,354 Asset related Social security treatment clearing account relating tofirm’s stable
position subsidy 102,370 - (102,370) - - Income related Sub-total 22,398,429 1,867,775 (6,733,063) (4,110,686) 13,422,455 Total 142,520,263 16,712,775 (22,078,706) (4,110,686) 133,043,646
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(30) Deferred income(Cont’d)
(a) Government grants (Cont'd)
(i) In 2015, as required by the local government, the pump house of Shajiao A located in Changdi Road, Dianchang town, was required to remove, relocate and reconstruct with provisional estimation of compensation amounting to RMB 30,411,446. The compensation shall be disclosed under payables for specific projects on receipt of the amount, transferred into deferred income when expenditures for removal and reconstruction incur, and amortised over the useful life upon completion of relevant construction.
(ii) This represents the energy-saving funds received by Yuejiang Power for reform of energy saving and emission reduction technology in 2015, and assistance fund received in 2016 for representative demonstration project under the energy saving and emission reduction policy. It is amortised over the estimated useful lives of 13 years from the completion date of the project.
(iii) This represents the value-added tax refunded for purchase of PRC-produced equipment received by Shibeishan Wind Power. It is amortised on a straight-line basis over the estimated use period of 13 years.
(iv) This presents the government grants (first batch) received by Zhongyue Energy in Zhanjiang in 2017 from the investment plan under the central budget (2017) in priority projects of resource conservation and recycling. The subsidy is used for the comprehensive energy saving technology upgrading project of the turbines of ZhongyueEnergy’s1&2# generator units. As at 31 December 2018, the technology upgrading project for such generator units was accomplished. Such subsidy income is amortised on a straight-line basis over the estimated useful lives of 13 years from the completion date of the project.
(v) This represents the No.1918, No.1692 and No.1794 incentives of energy efficiency of power plant of Dongguan received by Shajiao A in 2014, 2015 and 2016 respectively. It is amortised on a straight-line basis over the remaining estimated useful lives of relevant assets
(vi) This represents the reform and development fund received by Zhanjiang Wind Power in 2011 in relation to Yongshi Wind Power Project. The Group amortises the fund during the income period of the project on a straight-line basis.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(31) Long-term employee benefits payable
31 December 2018 31 December 2017 Termination benefits (a) 114,331,088 75,609,880 Other long-term employee benefits payable
(b) 46,943,615 39,097,210 Less: Payable within one year (38,361,315) (23,084,183) 122,913,388 91,622,907 The early retirement benefits payable within one year are included in the employee benefits payable (Note 4(22)).
Some employees of the Group have taken early retirement. As at the balance sheet date, the main actuarial assumptions used in estimating the obligation arising from the early retirement benefits are as follows:
31 December 2018 31 December 2017 Discount rates 4.27% 4.22% Early retirement benefits recognised in profit or loss for the current period:
2018 2017 General and administrative expenses 36,539,748 (46,790,029) Financial expenses - 118,849 (a) According to theGroup’s regulations for early retirement of employees, the employees can apply for early retirement before statutory retirement age. Employees can obtain salary on a monthly basis by a certain ratio of the original salary until they reach the statutory retirement age. Management expects the termination benefits to be paid in the future are determined by the present value of cash flow, when accrued the above termination benefits. As at 31 December 2018, the Group calculated the expected expense for each employee eligible for early retirement in each year before the statutory retirement age in accordance with the related regulations for early retirement and estimated the present value of future termination benefits by treasury bond interest rate of4.27% (2017:4.22%) of the same period. As at 31 December 2018, the Group accrued a termination benefits of RMB 114,331,088 (31 December 2017: RMB 75,609,880) and recognised it in long-term employee benefits payable. The actual termination benefits due within one year totalled at RMB 26,936,158 (31 December 2017: RMB 17,637,046) are recognised in employee benefits payable.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(31) Long-term employee benefits payable (Cont'd)
(b) According to relevant regulations on social medical insurance in places where the subsidiaries of the Company and the Group locate, if individual employees participating basic medical insurance for urban residents are under their statutory ages of retirement, but their estimated contribution years fail to meet the local standards, the Group needs to make continuous contribution for the employees till the standards are met even after their retirement. The expected present values of cash flows that shall be paid for medical insurance after the retirement of employees till prescribed terms are recognised as long-term employee benefits payable and recorded in profit or loss for the period or cost of relevant assets. As at 31 December 2018, the balance of theGroup’s other long-term employee benefits payable was mainly the additional payment of medical insurance made for retired employees. The Group calculated the expected expenses for each year from the end of current year to regulated contribution years based on certain proportion of the retiredemployee’s salary of the year, and estimated the present value of cash expenses made by retired employees for medical insurance in the future, with a treasury bond interest rate of4.27% (2017:4.22%) as discount rate. As at 31 December 2018, the Group accrued other long-term employee benefits payable of RMB 46,943,615 (31 December 2017: RMB 39,097,210), with actual payment of other long-term employee benefits payable due within one year of RMB 11,425,157 (31 December 2017: RMB 5,447,137) recognised in employee benefits payable.
(32) Other non-current liabilities
31 December 2018 31 December 2017 Capital injection 166,405,569 16,405,569 In 2017, theGroup’s subsidiary Yuejiang Power received a capital injection of RMB 16,405,569 from minority shareholders. As at 31 December 2018, such capital injection was recorded in other non-current liabilities as the registration for changes of business license had not been completed. In 2018, theGroup’s subsidiaries Yudean Yangjiang Offshore Wind Power Co., Ltd. (“Yangjiang Wind Power”) and Qujie Wind Power respectively received capital injection of RMB 100,000,000 and RMB 50,000,000 from GEGC. The capital will be used for Yangjiang Shapa offshore wind power plant project and Qujie Wailuo offshore wind power plant project. As at 31 December 2018, such capital injection was recorded in other non-current liabilities as the registration for changes of business license had not been completed.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(33) Share capital
31 December 2017 Movements for the current year 31 December 2018 Issuance of new Housing fund
shares Bonus shares transferred to shares Others Sub-total
Shares subject to trading restriction:
- Shares held by domestic state-owned
legal person 1,893,342,621 - - - - - 1,893,342,621 - Other domestic shares
Including: Shares held by domestic
non-state-owned legal person 4,620,666 - - - - - 4,620,666 Shares held by domestic natural
person 3,536 - - - 2,123 2,123 5,659 Shares not subject to trading restriction
- RMB-dominated ordinary shares 2,553,909,163 - - - (2,123) (2,123) 2,553,907,040 - Domestically-listed foreign shares 798,408,000 - - - - - 798,408,000 5,250,283,986 - - - - - 5,250,283,986 Movements for the current year 31 December 2017 Issuance of new Housing fund
31 December 2016 shares Bonus shares transferred to shares Others Sub-total
Shares subject to trading restriction:
- Shares held by domestic state-owned
legal person 1,893,342,621 - - - - - 1,893,342,621 - Other domestic shares
Including: Shares held by domestic
non-state-owned legal person 4,620,666 - - - - - 4,620,666 Shares held by domestic natural
person 3,536 - - - - - 3,536 Shares not subject to trading restriction
- RMB-dominated ordinary shares 2,553,909,163 - - - - - 2,553,909,163 - Domestically-listed foreign shares 798,408,000 - - - - - 798,408,000 5,250,283,986 - - - - - 5,250,283,986
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(34) Capital surplus
Increase in Decrease in
31 December the current the current 31 December 2017 year year 2018 Share capital premium (a) 4,445,477,866 98,596,201 - 4,544,074,067 Revaluation reserve 119,593,718 - - 119,593,718 Investment from GEGC 395,000,000 - - 395,000,000 Share of interest in the
investee based on
shareholding 20,785,182 - - 20,785,182 Transfer of capital surplus
recognised under the
previous accounting system 20,474,592 - - 20,474,592 Others 2,919,327 - - 2,919,327 5,004,250,685 98,596,201 - 5,102,846,886 Increase in Decrease in
31 December the current the current 31 December 2016 year year 2017 Share capital premium 4,445,477,866 - - 4,445,477,866 Revaluation reserve 119,593,718 - - 119,593,718 Investment from GEGC 395,000,000 - - 395,000,000 Share of interest in the
investee based on
shareholding 20,785,182 - - 20,785,182 Transfer of capital surplus
recognised under the
previous accounting system 20,474,592 - - 20,474,592 Others 1,676,120 1,243,207 - 2,919,327 5,003,007,478 1,243,207 - 5,004,250,685 (a) In November 2018, GEGC purchased33% equity of theCompany’s wholly-owned subsidiary Bohe Coal with cash consideration of RMB 1,100,106,963. The Company did not loss the control over Bohe Coal, and the difference between the portion of received consideration attributable to the Company and thesubsidiary’s shares of net assets calculated based on proportion of equity disposed amounted to RMB 76,087,677 was recorded in capital surplus.
In November 2018, theCompany’s non-wholly-owned subsidiary Maoming Zhenneng acquired all the equity of Maoming Thermal Power Plant Co., Ltd. (“Maoming Thermal”), a wholly-owned subsidiary of GEGC, at RMB 429,014,036 from GEGC with a consideration of30.12% equity (“the Equity Transaction of Maoming Zhenneng”). Since Maoming Thermal did not have any operation at the combination date, the equity transaction did not form a business combination involving enterprises under common control. After the equity transaction, the Company did not loss the control over Bohe Coal, and the difference between the portion of received consideration attributable to the company and thesubsidiary’s shares of net assets calculated based on proportion of equity disposed amounted to RMB 22,495,935 was recorded in capital surplus.
In November 2018, Guangdong Wind Power purchased13.33% equity of Huilai Wind Power with cash consideration of RMB 16,000,000. The difference between the paid consideration and thesubsidiary’s shares of net assets calculated based on proportion of equity acquired amounted to RMB 12,589 was recorded in capital surplus. Meanwhile, the minority interests were reduced by RMB 12,589.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(35) Other comprehensive income
Other comprehensive income in the balance sheet Other comprehensive income in income statement for the year ended 31 December 2018 Less: Amounts
previously recognised
Attributable to Accruals in other Attributable to Attributable to the parent before income comprehensive the parent minority 31 December company after 31 December tax in the income transferred Less: Income company after shareholders 2017 tax 2018 current year out in the current year tax expenses tax after tax Other comprehensive income that will be
subsequently reclassified to profit or loss
Other comprehensive income that cannot be
transferred to profit or loss under equity
method 21,753,244 - 21,753,244 - - - - - Gains or losses arising from changes in fair
value of available-for-sale financial assets 115,248,279 413,008,610 528,256,889 550,678,146 - (137,669,536) 413,008,610 - 137,001,523 413,008,610 550,010,133 550,678,146 - (137,669,536) 413,008,610 - Other comprehensive income in the balance sheet Other comprehensive income in income statement for the year ended 31 December 2017 Less: Amounts
Attributable to Accruals previously recognised Attributable to Attributable to the parent before income in other comprehensive Less: the parent minority 31 December company after 31 December tax in the income transfer out in Income tax company after shareholders 2016 tax 2017 current year the current year expenses tax after tax Other comprehensive income that will be
subsequently reclassified to profit or loss
Other comprehensive income that can be
transferred to profit or loss under equity
method 21,753,244 - 21,753,244 - - - - - Gains or losses arising from changes in fair
value of available-for-sale financial assets 123,305,771 (8,057,492) 115,248,279 (10,743,323) - 2,685,831 (8,057,492) - 145,059,015 (8,057,492) 137,001,523 (10,743,323) - 2,685,831 (8,057,492) -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(36) Surplus reserve
31 December Increase in the Decrease in the 31 December 2017 current year current year 2018 Statutory surplus
reserve 2,641,707,753 69,654,691 - 2,711,362,444 Discretionary surplus
reserve 4,948,655,971 174,136,728 - 5,122,792,699 7,590,363,724 243,791,419 - 7,834,155,143 31 December Increase in the Decrease in the 31 December 2016 current year current year 2017 Statutory surplus
reserve 2,428,747,208 212,960,545 - 2,641,707,753 Discretionary surplus
reserve 4,416,254,610 532,401,361 - 4,948,655,971 6,845,001,818 745,361,906 - 7,590,363,724 In accordance with the Company Law and theCompany’s Articles of Association, the Company should appropriate10% of net profit for the year to the statutory surplus reserve, and the Company can cease appropriation when the statutory surplus reserve accumulated to more than50% of the registered capital. The Company appropriates for the discretionary surplus reserve after theshareholders’ meeting approves the proposal from the Board of Directors. The surplus reserve can be used to make up for the loss or increase the share capital after approval from the appropriate authorities.
According to the resolution at theshareholders’ meeting dated 12 June 2018, the Company appropriated10% of net profit for 2017, amounting to RMB 69,654,691 (2017:10% of net profit for 2016, amounting to RMB 212,960,545) to the statutory surplus reserves. Meanwhile, the Company appropriated25% of net profit for 2017, amounting to RMB 174,136,728 (2017:25% of net profit for 2016, amounting to RMB 532,401,361) to discretionary surplus reserves.
(37) Undistributed profits
2018 2017 Undistributed profits at the beginning of the
year 5,713,290,735 6,135,494,928 Add: Net profit attributable to equity owners
of the company 474,461,997 743,180,431 Less: Appropriation to statutory surplus
reserve (Note 4(36)) (69,654,691) (212,960,545) Appropriation to discretionary surplus
reserve (Note 4(36)) (174,136,728) (532,401,361) Dividends payable on ordinary shares
(a) (420,022,719) (420,022,718) Others (b) (33,932,454) - Undistributed profit at the end of the year 5,490,006,140 5,713,290,735 (a) In accordance with the resolution at theshareholders’ meeting dated 12 June 2018, the Company proposed a cash dividend to the shareholders at RMB 0.8 per 10 shares, amounting to RMB 420,022,719 calculated by 5,250,283,986 issued shares.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(37) Undistributed profits(Cont’d)
(b) In 2018, the assets transferred by the Group without compensation to the entities such asGEHC’s subsidiaries and the Highway Management Station of Red Bay Economic Development Zone for the assets related to supply of water, power and heat and property management and the segregation and handover of municipal functions of SOEs totalled RMB 49,878,539, of which the amount borne by the parent company was RMB 33,932,454.
(c) Undistributed profit at the end of the year
The surplus reserves attributable to the parent company appropriated by subsidiaries this year were RMB 104,824,162 (2017: RMB 102,706,924).
As at 31 December 2018, the undistributed profits attributable to the parent company included an appropriation of RMB 2,318,515,265 (31 December 2017: RMB 2,223,884,635) to surplus reserves made by theCompany’s subsidiaries.
(38) Revenue and cost of sales
2018 2017 Revenues from main operations 27,125,955,662 26,393,153,579 Revenue from other operations 282,558,516 250,638,478 27,408,514,178 26,643,792,057 2018 2017 Cost of sales from main operations 24,236,414,355 23,277,935,709 Cost of sales from other operations 10,302,225 14,352,960 24,246,716,580 23,292,288,669 (a) Revenue and cost of sale from main operations
2018 2017
Cost of sales Cost of sales Revenues from from main Revenues from from main main operations operations main operations operations Revenue from sales of
electricity 26,949,774,763 24,099,233,129 26,250,079,293 23,156,713,366 Revenue from steam 126,032,622 87,916,412 93,907,579 77,158,338 Rendering of services 50,148,277 49,264,814 49,166,707 44,064,005 27,125,955,662 24,236,414,355 26,393,153,579 23,277,935,709
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(38) Revenue and cost of sales(Cont’d)
(b) Revenue and cost of sales from other operations
2018 2017
Cost of sales Cost of sales Revenue from from other Revenue from from other other operations operations other operations operations Revenue from
integrated utilisation
of coal ash 240,230,510 1,539,166 203,698,123 8,004,336 Rental income 20,343,421 4,088,745 14,691,747 22,008 Revenue from sales of
materials 1,324,637 1,155,075 3,228,908 358,995 Others 20,659,948 3,519,239 29,019,700 5,967,621 282,558,516 10,302,225 250,638,478 14,352,960 Information for revenue, cost of sales, and profit from main operating activities are included in segment reporting.
(39) Taxes and surcharges
2018 2017 Tax base Real estate tax 69,351,272 69,109,064 Note 3 City maintenance and construction
tax 62,122,786 73,168,035 Note 3 Educational surcharge 50,942,570 58,982,876 Note 3 Land use tax 22,277,871 24,793,681
Stamp tax 17,440,628 17,479,308
Environmental protection tax 15,576,704 -
Vehicle and vessel use tax 258,095 336,680
Business tax - 2,800
237,969,926 243,872,444
(40) Selling and distribution expenses
2018 2017 Labour cost 15,734,977 3,750,534 Labour insurance 3,419,927 647,591 Entertainment expenses 2,450,910 1,325,568 Depreciation expenses (Note 4(11)) 168,621 4,185 Others 3,609,426 2,496,118 25,383,861 8,223,996
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(41) General and administrative expenses
2018 2017 Labour cost 279,543,009 238,192,466 Labour insurance 88,735,929 47,896,800 Amortisation of intangible assets 53,189,360 53,133,360 Fire safety expenses 47,034,725 40,578,207 Depreciation expenses (Note 4(10), (11)) 45,795,858 47,623,507 Property management expenses 26,313,608 26,750,517 Office expenses 20,613,680 21,491,527 Agency fee 18,257,095 22,951,448 Rental expenses 10,992,313 12,304,808 Maintenance cost 9,894,228 8,483,661 Afforestation fee 9,215,763 11,909,733 Traffic expenses 8,799,661 8,992,751 Travelling expenses 6,415,526 6,817,094 Labour costs 5,769,769 4,284,878 Entertainment expenses 3,810,169 4,505,193 Insurance expenses 3,465,634 2,874,227 Expenses on board meetings 719,286 640,032 Sewage charges 687,529 21,401,263 Embankment protection fee - 578,439 Others 49,096,796 56,607,341 688,349,938 638,017,252
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(42) Financial expenses
2018 2017 Interest of debentures 67,280,891 93,130,000 Interest expenses 1,366,253,508 1,267,471,049 Less: Amounts capitalised on qualifying
assets (141,335,812) (115,040,638) Sub-total of interest expenses 1,292,198,587 1,245,560,411 Amortisation of unrecognised finance charge 91,431,485 83,103,789 Interest expenses of discounted notes 18,306,904 14,534,341 Amortisation of long-term debentures (Note
4(28)) 2,840,111 1,746,068 Less: Interest income (63,471,806) (65,153,386) Exchange losses/(gains) - net 4,859,137 (4,702,846) Bank charges and others 4,320,833 4,167,164 1,350,485,251 1,279,255,541 (43) Asset impairment losses
2018 2017 Impairment losses of fixed assets 151,136,187 29,483,080 Impairment losses of intangible assets 56,502,373 - Impairment losses of goodwill 25,036,894 - Impairment losses of construction in
progress 13,816,430 90,837,779 Bad debts losses 3,061,038 422,829 Losses on decline in the value of inventories 2,136,875 - Impairment losses on financial assets
available-for sale - 25,010,686 251,689,797 145,754,374
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(44) Other income
Asset related/ 2018 2017 income related Nansha annual headquarters
enterprise award 2017 10,774,300 - Income related Revenue from timely levy and
refund of VAT 9,219,882 9,873,727 Income related Energy saving funds used as
policy liquidation subsidies in
previous years 4,165,231 - Asset related Energy saving funds 4,112,576 2,873,723 Asset related Prize for entrance of high and
new technological enterprise
cultivation library granted by
the Department of Finance of
Zhanjiang, Chikan Office 3,537,993 - Income related Desulfurization project Shajiao A
5# generator unit 3,076,924 3,076,923 Asset related Financial subsidy fund by
Zhanjiang Government 3,050,000 - Income related Tax refund for PRC-made
equipment 2,296,209 2,296,208 Asset related Income from refund of
commissions for individual
income tax 1,179,059 - Income related Special funds for differential
electricity price 1,026,886 - Asset related Special fund of provincial
industrialisation and
informatisation development
(2017) for technological
upgrading of enterprises - 18,595,400 Income related Subsidy from Bureau of Finance
of Huidong County for
atmospheric pollution control - 2,000,000 Income related Asset and Others 10,311,787 12,156,841 income related 52,750,847 50,872,822
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(45) Investment income
2018 2017 Gains from long-term equity investments
under equity method 488,203,462 436,407,642 Investment income from available-for-sale
financial assets 49,140,042 52,319,444 Others 359,466 359,463 537,702,970 489,086,549 The Group obtains returns from investment without any significant restrictions.
(46) Gains/(Losses) on disposals of assets
Amount recognised in non-recurring profit or 2018 2017 loss in 2018 Gains/(Losses) on disposals of
fixed assets 1,572,097 (4,720,404) 1,572,097 (47) Non-operating income
Amount recognised in non-recurring profit or 2018 2017 loss in 2018 Claims and compensation income
(a) 45,458,540 5,223,824 45,458,540 Gains on donations (b) 36,986,954 - 36,986,954 Gains on scraping of fixed assets 2,245,329 - 2,245,329 Payables unnecessary to be paid 583,286 688,329 583,286 Government grants irrelevant to
ordinary activities - 345,500 - Others 4,182,128 3,207,321 4,182,128 89,456,237 9,464,974 89,456,237
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(47) Non-operating income(Cont’d)
(a) In 2018, the claims and compensation income mainly represent the claim compensation of RMB 45,458,540 received by theCompany’s subsidiary Xuwen Wind Power from the insurance company for the Rammasun typhoon incident at the Yongshi Wind Power Plant.
(b) In 2018, the non-related electric power enterprises with diversified businesses voluntarily donated assets to certain subsidiaries of the Group during their liquidation, totalling RMB 36,986,954. The donated assets mainly comprised buildings, vehicles, etc.
(48) Non-operating expenses
Amount recognised in non-recurring profit or 2018 2017 loss in 2018 Losses on scrapping of
long-term assets 21,457,918 - 21,457,918 Penalties and overdue fines
(Note 4(24)(b)). 12,679,505 7,130,563 12,679,505 Donations 2,935,000 1,140,000 2,935,000 Others 2,087,107 1,621,811 2,087,107 39,159,530 9,892,374 39,159,530
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(49) Income tax expenses
2018 2017 Current income tax calculated based on tax law
and related regulations 476,327,171 495,956,673 Deferred income tax (141,226,938) (79,467,357) 335,100,233 416,489,316 The reconciliation from income tax calculated based on the applicable tax rates and total profit presented in the consolidated income statement to the income tax expenses is listed below:
2018 2017 Total profit 1,245,197,670 1,554,210,475 Income tax calculated at applicable tax rates 311,299,418 388,552,619 Effect of preferential tax rates of subsidiaries (37,729,056) (22,615,361) Income not subject to tax (134,879,733) (127,632,250) Costs, expenses and losses not deductible for tax
purposes 17,227,646 13,494,284 Deductible losses for which no deferred tax asset
was recognised in current period 141,893,452 107,242,635 Temporary differences for which no deferred tax
asset was recognised in current period 58,065,184 54,279,872 Utilisation of deductible temporary differences and
deductible losses for which no deferred tax asset
was recognised in previous periods (17,039,919) (5,566,961) Effect of other deductible expenses (339,410) (4,301,326) Tax filing differences of income tax in prior years (3,397,349) 5,963,530 Repayment of income tax of tax inspection - 7,072,274 Income tax expenses 335,100,233 416,489,316
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(50) Earnings per share
(a) Basic earnings per share
Basic earnings per share is calculated by dividing consolidated net profit attributable to ordinary shareholders of the parent company by the weighted average number of ordinary shares outstanding
2018 2017 Consolidated net profit attributable to ordinary
shareholders of the parent company 474,461,997 743,180,431 Weighted average number of outstanding ordinary
shares of the Company 5,250,283,986 5,250,283,986 Basic earnings per share 0.09 0.14 Including:
- Basic earnings per share from continuing
operations 0.09 0.14 - Basic earnings per share from discontinued
operations - - (b) Diluted earnings per share
Diluted earnings per share is calculated by dividing net profit attributable to ordinary shareholders of the parent company adjusted based on the dilutive potential ordinary shares by the adjusted weighted average number of ordinary shares outstanding. In 2018, there were no dilutive potential ordinary shares (2017: Nil), and hence diluted earnings per share is equal to basic earnings per share.
(51) Expenses by nature
Cost of sales, taxes and surcharges, selling and distribution expenses, general and administrative expenses, research and development expenses, financial expenses and asset impairment losses in the income statement are classified below according to nature:
2018 2017 Consumed fuel and low value consumables, etc. 18,171,718,721 17,222,768,104 Depreciation and amortisation expenses 3,440,501,770 3,574,163,096 Employee benefits 1,779,288,108 1,672,491,580 Financial expenses 1,350,485,251 1,279,255,541 Others 813,013,130 781,355,118 Repair charges 928,420,266 902,064,084 Impairment losses on non-current assets 246,491,884 145,331,545 Transaction expenses 52,083,007 12,243,073 Rental 18,593,216 17,740,135 Research and development expenses 5,043,776 16,980,873 26,805,639,129 25,624,393,149
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(52) Notes to the cash flow statement
(a) Cash received relating to other operating activities
2018 2017 Interest income 59,564,119 66,910,733 Government grants 38,263,746 59,495,276 Rental income 21,564,026 13,425,844 Others 18,740,883 4,241,150 138,132,774 149,296,827 (b) Cash paid relating to other operating activities
2018 2017 Insurance expenses 103,099,272 90,337,396 Sewage charges 63,437,485 64,746,917 Transaction expenses 55,207,987 12,977,656 Fire safety expenses 51,242,734 40,578,207 Traffic expenses 33,298,085 27,060,505 Property management expenses 31,646,545 26,750,517 Office expenses 26,262,942 25,371,981 Rental expenses 20,638,470 17,740,135 Utility fees 19,584,607 21,248,782 Agency fee 19,352,521 22,951,448 Union dues 17,049,514 17,500,027 Travelling expenses 11,840,286 11,512,096 Maintenance cost 10,508,923 8,483,661 Expenses for Party construction 6,439,857 - Entertainment expenses 6,261,079 5,830,761 Research and development expenses 5,043,776 16,980,873 Deposit of performance guarantee 4,000,000 - Others 98,300,386 76,668,679 583,214,469 486,739,641 (c) Cash received relating to other investing activities
2018 2017 Cash at bank and on hand acquired from
MaomingZhenneng’s equity transaction
with Mao Thermal 161,670,884 -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(52) Notes to the cash flow statement(Cont’d)
(d) Cash received relating to other financing activities
2018 2017 Income from odd lots - 42,438 (e) Cash paid relating to other financing activities
2018 2017 Payment of capital withdrawal to minority
shareholders by Yuejia Electric 136,080,000 - (53) Supplementary information to the cash flow statement
(a) Supplementary information to the cash flow statement
Reconciliation from net profit to cash flows from operating activities
2018 2017 Net profit 910,097,437 1,137,721,159 Add: Provisions for asset impairment 251,689,797 145,754,374 Depreciation of fixed assets and
investment properties 3,382,287,226 3,499,814,726 Amortisation of intangible assets,
long-term prepaid expenses and
deferred income 36,135,838 72,988,124 (Gains)/Losses on disposal of fixed
assets, intangible assets and other
long-term assets (27,805,508) 4,720,404 Financial expenses 1,409,636,224 1,344,945,364 Investment income (537,702,970) (489,086,549) Increase in deferred tax (141,226,938) (79,467,357) Decrease/(Increase) in inventories 43,680,628 (14,481,532) Increase in operating payables (360,270,970) (111,321,004) Increase/(Decrease) in operating
payables 1,064,707,342 (1,835,553,206) Others (31,291,750) - Net cash flows from operating activities 5,999,936,356 3,676,034,503
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(53) Supplementary information to the cash flow statement(Cont’d)
(a) Supplementary information to the cash flow statement(Cont’d)
Significant operating, investing and financing activities that do not involve cash receipts and payments
2018 2017 Inventory procurement payment made by
acceptance notes 941,161,107 297,611,800 Long-term assets of finance lease through
leaseback 900,000,000 - Non-moneytary asset acquired from
MaomingZhenneng’s equity transaction
with Mao Thermal 267,343,152
Long-term assets held under finance leases 240,830,581 - 2,349,334,840 297,611,800 Net increase/(decrease) in cash and cash equivalents
2018 2017 Cash at the end of the year 5,570,382,892 4,996,580,490 Less: Cash at the beginning of the year (4,996,580,490) (5,184,873,650) Net increase/(decrease) in cash and cash
equivalents 573,802,402 (188,293,160) (b) Cash and cash equivalents
31 December 2018 31 December 2017 Cash 5,574,382,892 4,996,580,490 Less: 4,000,000 - Cash and cash equivalents at the end of the
year(i) 5,570,382,892 4,996,580,490 (i) Cash and cash equivalents at the end of the year
31 December 2018 31 December 2017 Cash on hand 31,413 37,745 Cash at bank that can be readily drawn on
demand 5,570,351,479 4,996,542,745 5,570,382,892 4,996,580,490
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
4 Notes to the consolidated financial statements(Cont’d)
(54) Monetary items denominated in foreign currency
31 December 2018
Balance in foreign
currencies Exchange rate Balance in RMB Cash at bank and on hand -
USD 190 6.8632 1,304 HKD 12,883 0.8762 11,288 12,592 Long-term borrowings -
USD 9,947,334 6.8632 68,270,542 EUR 450,756 7.8473 3,537,220 71,807,762 Current portion of non-current
liabilities -
USD 951,159 6.8632 6,527,993 EUR 314,641 7.8473 2,469,081 8,997,074 5 Changes in consolidation scope
Subsidiaries established during the year:
Major business Place of Nature of Registered Shareholding Acquisition Subsidiaries location registration business capital (%) method Jinwan District,
Yudean Zhuhai Offshore Zhuhai, Zhuhai,
Wind Power Co., Ltd. Guangdong Guangdong Electricity
(“Zhuhai Wind Power”) Province Province generation 65,000,000 100.00% Investment Maonan
Yudean Zhencheng District,
Comprehensive Energy Maoming, Maoming,
Co., Ltd. (“Zhencheng Guangdong Guangdong Electricity
Comprehensive”) Province Province generation 20,000,000 37.23% Investment
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
6 Interest in other entities
(1) Interest in subsidiaries
(a) Composition of the Group
Subsidiaries Major business location Place of registration Nature of business Shareholding(%) Acquisition method Direct Indirect
Maoming Zhenneng (i) Maoming Maoming Electricity generation46.54% - Investment Jinghai Power Jieyang Jieyang Electricity generation65.00% - Investment Zhanjiang Wind Power Zhanjiang Zhanjiang Electricity generation70.00% - Investment Guangdong Yudean Anxin Electric Inspection& Installation Co., Ltd.
(“Anxin Inspection”) Dongguan Dongguan Electricity generation100.00% - Investment Guangdong Yudean Humen Electric Co., Ltd. (“Humen Electric”) Dongguan Dongguan Electricity generation60.00% - Investment Bohe Coal Maoming Maoming Electricity generation67.00% - Investment Business combinations involving enterprises Yuheng Electric Zhanjiang Zhanjiang Electricity generation -76.00% under common control Xuwen Wind Power Zhanjiang Zhanjiang Electricity generation -70.00% Investment Guangdong Yudean Huadu Natural Gas Thermal Power Co., Ltd.
(“Huadu Natural Gas”) Guangzhou Guangzhou Electricity generation65.00% - Investment Dabu Electric Meizhou Meizhou Electricity generation100.00% - Investment Leizhou Wind Power Leizhou Leizhou Electricity generation80.00%14.00% Investment Dianbai Wind Power Maoming Maoming Electricity generation -100.00% Investment Business combinations involving enterprises Zhanjiang Electric Zhanjiang Zhanjiang Electricity generation76.00% - under common control Business combinations involving enterprises Yuejia Electric Meizhou Meizhou Electricity generation58.00% - under common control Business combinations involving enterprises Yuejiang Power Shaoguan Shaoguan Electricity generation90.00% - under common control Business combinations involving enterprises Zhongyue Energy Zhanjiang Zhanjiang Electricity generation90.00% - under common control Yudean Power Sales Co., Ltd. (“Power Sales”) Guangzhou Guangzhou Electricity generation100.00% - Investment Qujie Wind Power Zhanjiang Zhanjiang Electricity generation100.00% - Investment Yangjiang Wind Power Yangjiang Yangjiang Electricity generation -100.00% Investment Business combinations involving enterprises not Lincang Energy Lincang, Yunnan Province Lincang Electricity generation100.00% under common control Business combinations involving enterprises Guangqian Electric Shenzhen Shenzhen Electricity generation100.00% - under common control Business combinations involving enterprises Huizhou Natural Gas Huizhou Huizhou Electricity generation67.00% - under common control Business combinations involving enterprises Pinghai Power Huizhou Huizhou Electricity generation45.00% - under common control Business combinations involving enterprises Shibeishan Wind Power Jieyang Jieyang Electricity generation -70.00% under common control Business combinations involving enterprises Red Bay Power Shanwei Shanwei Electricity generation65.00% - under common control Business combinations involving enterprises not Guangdong Wind Power Guangzhou Guangzhou Electricity generation100.00% - under common control Tongdao Yuexin Wind Power Co., Ltd. (“Tongdao Company”) Huaihua, Hunan Province Huaihua Electricity generation100.00% Investment
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
6 Interest in other entities(Cont’d)
(1) Interest in subsidiaries(Cont’d)
(a) Composition of the Group(Cont’d)
Major business Nature of
Subsidiaries location Place of registration business Shareholding(%) Acquisition method Direct Indirect
Guangdong Yudean Pingyuan Wind Power Co., Ltd. Electricity
(“Pingyuan Wind Power”) Meizhou Meizhou generation - 100.00% Investment Guangdong Yudean Heping Wind Power Co., Ltd. Electricity
(“Heping Wind Power”) Heyuan Heyuan generation - 100.00% Investment Business combinations Electricity involving enterprises not Huilai Wind Power Jieyang Jieyang generation - 83.33% under common control Guangdong Yuejiang Hongrui Power Technology Electricity
Development Co., Ltd. (“Hongrui Technology”) Shaoguan Shaoguan generation - 90.00% Investment Guangdong Yudean Yongan Natural Gas Thermal Power Electricity
Co., Ltd. (“Yongan Natural gas”) Zhaoqing Zhaoqing generation 90.00% - Investment Hunan Xupu Yuefeng New Energy Co., Ltd. (“Xupu Huaihua, Hunan Xupu County, Huaihua, Electricity
Yuefeng”) Province Hunan Province generation - 100.00% Investment Guangxi Zhuang Wuxuan, Guangxi
Guangxi Wuxuan Yuefeng New Energy Co., Autonomous Zhuang Autonomous Electricity
Ltd.(“Wuxuan Yuefeng”) Region Region generation - 100.00% Investment Electricity
Pingdian Comprehensive Huizhou Huizhou generation - 45.00% Investment Electricity
Zhuhai Wind Power Zhuhai Zhuhai generation - 100.00% Investment Electricity
Zhencheng Comprehensive Maoming Maoming generation - 37.23% Investment (i) On 30 November 2018, Maoming Zhenneng merged Maoming Thermal, wholly-owned by GEGC. After the merger, GEGC held30.12% equity of Maoming Zhenneng. According to the agreement between the Company and GEGC, the delegated shareholder and director from GEGC maintain consensus with those of the Company while exercising the voting rights during theshareholders’ meeting and the Board ofDirectors’ meeting at Maoming Zhenneng. Therefore, the Company owns control power over Maoming Zhenneng. In addition, pursuant to the consent agreement entered into between the Company and GEGC, the Company holds61.33% voting rights in Zhencheng Comprehensive, a subsidiary whose80% equity is directly held by Maoming Zhenneng. Therefore, the Company owns control power over Zhencheng Comprehensive.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
6 Interest in other entities(Cont’d)
(1) Interest in subsidiaries(Cont’d)
(a) Composition of the Group(Cont’d)
(ii) Pinghai Power was acquired from GEGC by the Group in 2012 through offering non-public shares. According to the agreement between GEGC and Guangdong Huaxia Electric Power Development Co., Ltd. (“Huaxia Electric”), which holds40% equity in Pinghai Power, the delegated shareholder and director from Huaxia Electric maintain consensus with those of GEGC when exercising their voting rights during theshareholders’ meeting and Board ofDirectors’ meeting at Pinghai Power; besides, after GEGC transfers its45% equity in Pinghai Power to the Company, the delegated shareholder and director from Huaxia Electric also reach consensus with those of the Company when exercising their voting rights during theshareholders’ meeting and Board ofDirectors’ meeting at Pinghai Power. Therefore, the Company owns the control power over Pinghai Power.
(b) Subsidiaries with significant minority interests
Gains and losses attributable
Gains and losses attributable to minority shareholders in Dividends distributed to Minority interests as at 31 Subsidiaries to minority shareholders(%) 2018 minority shareholders in 2018 December 2018 Jinghai Power 35.00% 41,463,227 73,436,079 1,228,252,092 Zhanjiang Electric 24.00% 56,187,027 43,848,218 981,073,313 Huizhou Natural Gas 33.00% 85,441,192 61,921,153 652,493,223 Pinghai Power 55.00% 245,899,656 232,044,460 1,132,812,046 Red Bay Power 35.00% 80,617,756 75,052,635 1,155,704,809 Maoming Zhenneng 53.46% (33,988,525) - 702,418,868
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
6 Interest in other entities(Cont’d)
(1) Interest in subsidiaries(Cont’d)
(b) Subsidiaries with significant minority interests(Cont’d)
The major financial information of the significant non-fully-owned subsidiaries of the Group is listed below:
31 December 2018 31 December 2017
Non-current Current Non-current Non-current Current Non-current Current assets assets Total assets liabilities liabilities Total liabilities Current assets assets Total assets liabilities liabilities Total liabilities Jinghai Power 1,204,643,294 7,994,284,373 9,198,927,667 2,607,699,843 3,081,936,133 5,689,635,976 1,220,230,956 8,519,603,527 9,739,834,483 2,649,314,880 3,489,876,908 6,139,191,788 Zhanjiang Electric 2,970,589,465 1,477,137,297 4,447,726,762 332,108,967 27,812,323 359,921,290 2,809,749,417 1,600,195,341 4,409,944,758 335,297,509 32,069,003 367,366,512 Huizhou Natural Gas 702,242,889 3,486,104,915 4,188,347,804 816,535,612 1,394,560,000 2,211,095,612 531,864,001 2,867,325,353 3,399,189,354 819,036,708 828,770,000 1,647,806,708 Pinghai Power 1,213,521,626 4,504,301,232 5,717,822,858 1,167,600,036 2,490,564,556 3,658,164,592 1,009,047,306 4,875,445,336 5,884,492,642 1,359,960,430 2,490,065,211 3,850,025,641 Red Bay Power 943,046,924 5,759,863,813 6,702,910,737 1,582,252,157 1,818,644,840 3,400,896,997 1,010,276,845 6,165,453,533 7,175,730,378 1,942,232,599 1,907,000,000 3,849,232,599 Maoming Zhenneng 424,289,071 2,608,341,517 3,032,630,588 1,169,249,659 552,952,116 1,722,201,775 508,180,380 2,570,370,415 3,078,550,795 1,437,413,801 665,144,627 2,102,558,428 2018 2017
Total comprehensive Cash flows from Total comprehensive Cash flows from Revenue Net profit/(loss) income operating activities Revenue Net profit/(loss) income operating activities Jinghai Power 4,871,729,888 118,466,364 118,466,364 1,116,414,293 4,811,801,719 233,130,409 233,130,409 1,131,168,452 Zhanjiang Electric 1,997,634,196 234,112,612 234,112,612 421,420,713 1,944,172,914 163,992,141 163,992,141 328,892,120 Huizhou Natural Gas 2,181,208,736 258,912,704 258,912,704 671,596,484 1,727,670,061 208,488,731 208,488,731 372,435,087 Pinghai Power 3,409,291,625 447,090,284 447,090,284 780,998,268 3,392,086,464 436,668,322 436,668,322 942,514,472 Red Bay Power 4,089,089,204 230,336,446 230,336,446 847,911,932 3,916,842,705 238,262,334 238,262,334 391,792,666 Maoming Zhenneng 1,552,628,327 (98,577,590) (98,577,590) 264,329,442 1,606,408,261 (94,333,024) (94,333,024) 92,024,761
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
6 Interest in other entities(Cont’d)
(2) Interests in joint ventures and associates
(a) Basic information of significant joint ventures and associates
Whether strategic
Major business Place of Nature of to the Group's
location registration business activities Shareholding(%) Direct Indirect Joint venture -
Industry fuel Guangzhou Guangzhou Fuel trade Yes 50.00% - Associates -
Yudean
Finance Guangzhou Guangzhou Finance Yes 25.00% - Taishan Power
Electric Taishan Taishan generation Yes 20.00% - The above equity investments are all measured using equity method by the Group.
(b) Summarised financial information for significant joint ventures:
31 December
2018 31 December 2017 Industry fuel Industry fuel Current assets 2,925,805,788 3,023,652,373 Including: Cash and cash equivalents 1,358,381,277 1,486,090,950 Non-current assets 229,601,671 238,031,473 Total assets 3,155,407,459 3,261,683,846 Current liabilities 1,948,258,211 2,049,097,586 Non-current liabilities 750,000 - Total liabilities 1,949,008,211 2,049,097,586 Net assets 1,206,399,248 1,212,586,260 Attributable to equity owners of the parent company 1,206,399,248 1,212,586,260 Shares of net assets based on shareholding (i) 603,199,624 606,293,130 Adjustments (614,728) (614,728) Carrying value of equity investment in joint venture 602,584,896 605,678,402 Revenue 21,313,952,451 20,866,250,505 Financial expenses (14,617,463) 5,757,908 Income tax expenses (47,849,419) (54,847,117) Net profit 144,800,961 167,764,414 Total comprehensive income 144,800,961 167,764,414 Dividends received from joint ventures by the Group for
the current year 75,493,986 59,231,115 (i) Share of asset is calculated according to shareholding based on the amount attributable to the parent company in the consolidated financial statements of joint ventures. The amount in the consolidated financial statements of joint ventures considers the impacts of fair value of identifiable assets and liabilities of joint ventures at the time of acquisition and the unification of accounting policies.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
6 Interest in other entities(Cont’d)
(2) Interests in joint ventures and associates(Cont’d)
(c) Summarised financial information for significant associates
31 December 2018 31 December 2017 Yudean Finance Taishan Electric Yudean Finance Taishan Electric Current assets 8,618,449,490 999,098,037 8,683,630,097 940,022,602 Non-current assets 13,958,043,611 12,126,348,269 13,100,038,881 13,059,475,755 Total assets 22,576,493,101 13,125,446,306 21,783,668,978 13,999,498,357 Current liabilities 19,713,970,097 2,373,171,787 19,034,164,167 2,890,641,148 Non-current liabilities - 905,200,000 - 1,300,500,000 Total liabilities 19,713,970,097 3,278,371,787 19,034,164,167 4,191,141,148 Minority interests - 1,029,541 - 979,164 Attributable to equity
owners of the parent
company 2,862,523,004 9,846,044,978 2,749,504,811 9,807,378,045 Shares of net assets
based on
shareholding(i) 715,630,751 1,969,208,996 687,376,205 1,961,475,609 Adjustments
- Goodwill 13,325,000 - 13,325,000 - Carrying value of equity
investment in
associates 728,955,751 1,969,208,996 700,701,205 1,961,475,609 Revenue 720,277,335 8,171,917,086 639,369,624 6,858,639,385 Net profit 341,902,454 646,576,934 301,317,539 596,418,401 Other comprehensive
income - - - (201,400) Total comprehensive
income 341,902,454 646,576,934 301,317,539 596,217,001 Dividends received from
associates by the
Group for the current
year 57,221,066 121,582,000 42,295,033 95,281,354 (i) Share of asset is calculated according to shareholding based on the amount attributable to the parent company in the consolidated financial statements of associates. The amount in the consolidated financial statements of associates considers the impacts of fair value of identifiable net assets and liabilities of associates at the time of acquisition and the unification of accounting policies.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
6 Interest in other entities(Cont’d)
(2) Interests in joint ventures and associates(Cont’d)
(d) Summarised information for insignificant joint ventures and associates
2018 2017 Associates:
Aggregate carrying value of investment 3,094,385,111 2,533,151,196 Aggregate of the following items in
proportion
Net profit (i) 201,011,983 194,143,964 Other comprehensive income (i) - - Total comprehensive income 201,011,983 194,143,964 (i) The net profit and other comprehensive income have taken into account the impacts of both the fair value of the identifiable assets and liabilities at the time of acquisition and the unification of accounting policies.
7 Segment information
The reportable segments of the Group are the business units that provide different products or service, or operate in the different areas. Different businesses or areas require different technologies and marketing strategies, the Group, therefore, separately manages the production and operation of each reportable segment and evaluates their operating results respectively, in order to make decisions about resources to be allocated to these segments and to assess their performance.
The Group possesses 9 reportable segments, in charge of power generating and selling in different regions in Guangdong Province.
Inter-segment transfer prices are measured by reference to selling prices to third parties.
The assets are allocated based on the operations of the segment and the physical location of the asset. The liabilities are allocated based on the operations of the segment. Expenses indirectly attributable to each segment are allocated to the segments based on the proportion of eachsegment’s revenue.
For the purposes of assessing segment performance and distributing resources among segments, theGroup’s management regularly reviews assets, liabilities, income, expenses and business performance attributable to each reportable segment on the following bases:
Segment assets include all tangible assets, intangible assets, other long-term assets and current assets like accounts receivable, with the exception of deferred tax assets and other unallocated corporate assets. Segment liabilities include payables and advances, bank borrowings and interest payable, long-term and short-term debentures and dividends payable attributable to the individual segments, but exclude deferred tax liabilities.
Segment financial performance represents operating income (including trading revenues from external customers and inter-segment), deducting expenses, depreciation, amortisation and impairment losses attributable to the individual segments, and interest income and expense from cash balances and borrowings directly attributable to one of the segments. The calculation of pricing among inter-segments is determined with reference to similar terms for external parties.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
7 Segment information(Cont’d)
(a) Segment information as at and for the year ended 31 December 2018 is as follows:
Maoming Zhanjiang Zhongyue Huizhou Natural
The Company Jinghai Power Pinghai Power Red Bay Power Zhenneng Electric Energy Gas Others Elimination Total Revenue from external
customers 2,284,823,995 4,871,729,888 3,409,291,625 4,089,089,204 1,545,331,653 1,993,542,506 1,542,497,777 2,180,616,027 5,491,591,503 - 27,408,514,178 Inter-segment revenue 3,075,605 - - - 7,296,674 4,091,690 1,271,552 592,709 71,875,490 (88,203,720) - Cost of sales from
main operations (2,132,196,128) (4,384,258,761) (2,587,950,472) (3,528,626,139) (1,569,909,568) (1,746,397,799) (1,561,288,213) (1,743,066,440) (5,070,081,609) 87,360,774 (24,236,414,355) Interest income 6,208,285 1,135,898 2,892,161 1,478,243 1,365,958 24,094,462 4,583,619 961,770 20,751,410 - 63,471,806 Interest expenses (206,465,168) (213,894,860) (129,287,358) (131,609,629) (74,849,514) - (135,978,016) (22,353,471) (440,806,283) 44,738,808 (1,310,505,491) Investment income
from associates and
joint ventures 484,016,449 - - - - - - - 6,366,187 (2,179,174) 488,203,462 Asset impairment
losses (154,226,974) - - - (466,128) (1,851,181) - (25,324,987) (68,719,281) (1,101,246) (251,689,797) Depreciation and
amortisation (123,267,737) (619,218,749) (383,999,531) (474,114,339) (192,599,652) (142,148,483) (294,131,700) (287,104,648) (944,316,077) 25,424,330 (3,435,476,586) Total profit 1,181,419,218 156,165,659 603,353,600 308,745,939 (128,604,361) 268,457,570 (187,820,258) 346,706,972 (267,214,852) (1,036,011,817) 1,245,197,670 Income tax expenses (5,383,646) (37,699,295) (156,263,316) (78,409,493) 30,026,771 (34,344,958) 49,806,751 (87,794,268) (33,374,020) 18,335,241 (335,100,233) Net profit 1,176,035,572 118,466,364 447,090,284 230,336,446 (98,577,590) 234,112,612 (138,013,507) 258,912,704 (300,588,872) (1,017,676,576) 910,097,437 Total assets 29,267,345,052 9,198,927,667 5,717,822,858 6,702,910,737 3,032,630,588 4,447,726,762 4,386,995,844 4,188,347,804 27,967,600,618 (21,580,645,624) 73,329,662,306 Total liabilities 5,554,859,651 (5,689,635,976) 3,658,164,592 3,400,896,997 1,722,201,775 359,921,290 3,487,568,624 2,211,095,612 29,696,219,014 (2,589,450,920) 41,811,840,659 Non-cash expenses
other than
depreciation and
amortisation - - - - - - - - - - - Long-term equity
investments in
associates and joint
ventures 6,340,869,567 - - - - - - - 60,774,048 (6,508,861) 6,395,134,754 Addition of non-current
assets (i) (214,606,469) (524,416,986) (371,144,104) (396,943,951) 12,153,820 (108,600,024) (166,751,401) 616,712,362 1,470,735,090 419,521,941 736,660,278 (i) Non-current assets are excluding financial assets, long-term equity investments and deferred tax assets.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
7 Segment information(Cont’d)
(b) Segment information as at and for the year ended 31 December 2017 is as follows:
Maoming Zhanjiang Zhongyue Huizhou Natural
The Company Jinghai Power Pinghai Power Red Bay Power Zhenneng Electric Energy Gas Others Elimination Total Revenue from external
customers 2,117,444,166 4,811,801,719 3,392,086,464 3,916,842,705 1,606,408,261 1,938,695,991 1,289,553,459 1,727,670,061 5,843,289,231 - 26,643,792,057 Inter-segment revenue 55,725 - - - - 5,476,923 - 189,442 105,726,117 (111,448,207) - Cost of sales from
main operations (2,014,615,189) (4,159,809,344) (2,594,540,505) (3,344,808,620) (1,609,917,306) (1,700,604,512) (1,353,391,795) (1,382,065,573) (5,244,068,216) 125,885,351 (23,277,935,709) Interest income 4,215,500 1,301,144 4,647,642 2,223,345 1,085,577 21,691,173 5,932,507 1,043,048 23,013,450 - 65,153,386 Interest expenses (199,610,835) (217,463,086) (130,480,952) (141,256,534) (72,192,499) - (130,885,418) (24,633,056) (382,700,760) 39,128,388 (1,260,094,752) Investment income
from associates and
joint ventures 430,233,196 - - - - - - - 6,174,446 - 436,407,642 Asset impairment
losses (673,578,111) - - (438,532) - (15,137,474) (12,990,036) - (92,177,648) 648,567,427 (145,754,374) Depreciation and
amortisation (126,140,089) (683,130,808) (388,880,201) (539,874,860) (203,959,542) (155,323,006) (280,559,563) (236,575,168) (971,157,375) 19,041,857 (3,566,558,755) Total profit 644,885,699 305,415,844 595,737,707 318,743,687 (126,843,762) 221,664,415 (251,416,610) 278,104,155 (75,614,981) (356,465,679) 1,554,210,475 Income tax expenses 51,661,211 (72,285,435) (159,069,385) (80,481,353) 32,510,738 (57,672,274) 28,865,939 (69,615,424) (86,670,748) (3,732,585) (416,489,316) Net profit 696,546,910 233,130,409 436,668,322 238,262,334 (94,333,024) 163,992,141 (222,550,671) 208,488,731 (162,285,729) (360,198,264) 1,137,721,159 -
Total assets 27,497,912,825 9,739,834,483 5,884,492,642 7,175,730,378 3,078,550,795 4,409,944,758 4,946,405,691 3,399,189,354 26,351,807,529 (21,476,453,132) 71,007,415,323 -
Total liabilities 4,954,412,031 6,139,191,788 3,850,025,641 3,849,232,599 2,102,558,428 367,366,512 3,908,964,964 1,647,806,708 17,863,335,579 (3,378,338,940) 41,304,555,310 Non-cash expenses
other than
depreciation and
amortisation - - - - - - - - - - - Long-term equity
investments in
associates and joint
ventures 5,738,255,738 - - - - - - - 62,750,674 - 5,801,006,412 -
Addition of non-current
assets (i) (242,705,204) (338,555,488) (343,277,481) (380,351,943) (100,252,081) (19,709,710) (422,727,415) 606,161,826 297,184,387 876,337,749 (67,895,360) (i) Non-current assets are excluding financial assets, long-term equity investments and deferred tax assets.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
7 Segment information(Cont’d)
(c) Geographical information
TheGroup’s operating income derives from the development and operation of electric plants in China and all assets are within China.
(d) Major customers
In 2018, the revenue from GPGC and its subsidiaries was RMB 26,949,774,763 (2017: RMB 26,250,079,293), which took up98.33% of theGroup’s operating income (2017:98.52%).
8 Related parties and related party transactions
(1) General information of the parent company
(a) General information of the parent company
Place of registration Nature of business Operation and management of power generation enterprises, capital management of electricity assets, GEGC Guangzhou construction of power plant and sales of electricity Ultimate holding party of the Company is State-owned Assets Supervision And Administration Commission of the People's Government of Guangdong Province.
(b) Registered capital and changes in registered capital of the parent company
31 December Increase in the Decrease in the 31 December 2017 current year current year 2018 GEGC 23,000,000,000 - - 23,000,000,000 (c) The percentages of shareholding and voting rights in the Company held by the parent company 31 December 2018 31 December 2017
Shareholding Shareholding
(%) Voting rights(%) (%) Voting rights(%) GEGC 67.39% 67.39% 67.39% 67.39% (2) Information of subsidiaries
The general information and other related information of the subsidiaries are set out in Note 6(1)(a).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
8 Related parties and related party transactions(Cont’d)
(3) Information of joint ventures and associates
Apart from material joint ventures and associates disclosed in Note VI, other joint ventures and associates that involved in related party transactions with the Company are listed as follows:
Name of entity Relationship with the Group Yudean Shipping Associate (4) Information of other related parties
Relationship with the Group Maoming Thermal Controlled by GEGC Shaoguan Electric Power Plant Controlled by GEGC Guangdong Yudean Shajiao C Power Plant (“Shajiao C”) Controlled by GEGC Guangdong Zhuhai Jinwan Power Co., Ltd. (“Zhuhai Jinwan
Electric”) Controlled by GEGC Guangdong Yudean Property Management Co., Ltd.
(“Yudean PM”) Controlled by GEGC Guangdong Yudean Information Technology Co., Ltd.
(“Yudean Technology”) Controlled by GEGC Guangdong Yudean Property Investment Co., Ltd. (“Yudean
PI”) Controlled by GEGC Zhuhai Grand Power Energy Development Co., Ltd. (“Zhuhai
Grand Power”) Controlled by GEGC Yudean Environmental Controlled by GEGC Shenzhen Tianxin Controlled by GEGC Guangzhou Huangpu Power Engineering Co., Ltd.
(“Huangpu Power Engineering”) Controlled by GEGC Guangzhou Huangpu Yuehua Power Plant Human
Resources Co., Ltd. (“Huangpu Yuehua Human
Resources”) Controlled by GEGC Inner Mongolia Yudean Menghua New Energy Co., Ltd.
(“Menghua New Energy”) Controlled by GEGC Guangdong Yuehua Power Co., Ltd. (“Yuehua Power”) Controlled by GEGC Guangdong Yudean Yunhe Power Co., Ltd. (“Yunhe Power”) Controlled by GEGC Guangdong Yuelong Power Generation Co., Ltd. (“Yuelong
Power”) Controlled by GEGC Guangdong Yudean Zhongshan Thermal Power Plant
(“Zhongshan Thermal”) Controlled by GEGC Guangdong Port of Yangjiang Harbour Service Co., Ltd.
(“Port of Yangjiang”) Controlled by GEGC Guangzhou Development District Yudean New Energy Co.,
Ltd. (“Yudean New Energy”) Controlled by GEGC Guangdong Guanghe Power Co., Ltd. (“Guanghe Power”) Controlled by GEGC Guangdong Xinhui Power Generation Co., Ltd. (“Xinhui
Power”) Controlled by GEGC Guangdong Yudean Natural Gas Co., Ltd. (“Yudean Natural
Gas”) Controlled by GEGC Guangdong Yudean Fengshuba Power Generation Co., Ltd.
(“Fengshuba Power”) Controlled by GEGC Guangdong Yudean Changhu Power Generation Co., Ltd.
(“Changhu Power”) Controlled by GEGC
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
8 Related parties and related party transactions(Cont’d)
(4) Information of other related parties(Cont’d)
Relationship with the Group Guangdong Yudean Qingxi Power Generation Co., Ltd. (“Qingxi
Power”) Controlled by GEGC Guangdong Yudean Liuxihe Power Generation Co., Ltd.
(“Liuxihe Power”) Controlled by GEGC Guangdong Province Zhuhai Power Generation Co., Ltd.
(“Zhuhai Electric”) Controlled by GEGC Guangdong Yudean Xinfengjiang Power Generation Co., Ltd.
(“Xinfengjiang Power”) Controlled by GEGC Guangdong Yudean Zhanjiang Biomass Power Generation Co.,
Ltd. (“Zhanjiang Biomass”) Controlled by GEGC Guizhou Yueqian Electric Co., Ltd. (“Yueqian Electric”) Controlled by GEGC Guangdong Yudean Changtan Power Generation Co., Ltd.
(“Changtan Power”) Controlled by GEGC Guangdong Yudean Ship Management Co., Ltd. (“Yudean Ship”) Controlled by GEGC Guangzhou Yudean Huizhou New Energy Co., Ltd. (“Huizhou
New Energy”) Controlled by GEGC Yudean Leasing Controlled by GEGC Guangdong Yudean Nanshui Power Generation Co., Ltd.
(“Nanshui Power”) Controlled by GEGC Yudean Property Self-Insurance Controlled by GEGC (5) Related party transactions
(a) Purchase and sales of goods, and rendering and receiving of services
Purchase of goods and receiving of services:
Pricing policy of
Type of related party related party
Related parties transaction transaction 2018 2017 Industry fuel Purchase of fuel Agreement price14,352,059,858 14,389,960,951 Yudean Natural Gas Purchase of fuel Agreement price 497,452,121 260,827,167 Yudean Environmental Purchase of materials Agreement price 148,417,712 118,654,832 Receipt of property
Yudean PM services Agreement price 31,653,612 31,553,554 Yudean Shipping Receipt of tug services Agreement price 23,213,805 24,720,000 Yudean Property Receipt of insurance
Self-Insurance services Agreement price 19,958,353 - Huangpu Power Receipt of maintenance
Engineering and repair services Agreement price 16,989,393 11,533,589 Port of Yangjiang Receipt of tug services Agreement price 9,247,217 8,029,908 Huangpu Yuehua Receipt of human resource
Human Resources outsourcing services Agreement price 5,828,481 14,570,164 Receipt of management
Yudean Technology services Agreement price 3,906,107 2,864,767 Receipt of management
Yudean PI services Agreement price 40,541 - Maoming Thermal Purchase of materials Agreement price - 2,724,380 Receipt of distribution
Yunhe Power services Agreement price - 1,548,428 Receipt of distribution
Zhuhai Jinwan Electric services Agreement price - 206,533 15,108,767,200 14,867,194,273
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
8 Related parties and related party transactions(Cont’d)
(5) Related party transactions(Cont’d)
(a) Purchase and sales of goods, and rendering and receiving of services(Cont’d)
Sales of goods or rendering of services:
Pricing policy of
Type of related party related party
Related parties transaction transaction 2018 2017 Yudean Revenue from sales of
Environmental by-products Agreement price 189,652,273 158,181,213 Provision of maintenance
Shajiao C and repair services Agreement price 30,485,136 33,858,057 Provision of maintenance
Yunhe Power and repair services Agreement price 8,368,980 8,377,100 Yunhe Power Income from transferring coal Agreement price 8,194,149 14,676,471 Zhuhai Jinwan Provision of maintenance
Electric and repair services Agreement price 2,934,438 126,904 GEGC Provision of custody services Agreement price 2,070,690 - Provision of maintenance
Yudean New Energy and repair services Agreement price 923,603 651,395 Xinhui Power Provision of training services Agreement price 526,038 1,456,767 Zhongshan Thermal Provision of training services Agreement price 435,144 - Provision of maintenance
Huizhou New Energy and repair services Agreement price 235,983 - Yuelong Power Provision of training services Agreement price 32,004 - Yuehua Power Provision of training services Agreement price 20,246 2,175,049 Zhuhai Electric Provision of training services Agreement price 14,528 - Fengshuba Power Provision of training services Agreement price 14,528 - Liuxihe Power Provision of training services Agreement price 14,528 - Zhanjiang Biomass Provision of training services Agreement price 14,528 - Changtan Power Provision of training services Agreement price 14,528 - Yueqian Power Provision of training services Agreement price 14,528 - Yunhe Power Provision of training services Agreement price 14,528 - Shajiao C Provision of training services Agreement price 12,547 - Zhuhai Jinwan
Electric Provision of training services Agreement price 12,302 - Yudean Ship Provision of training services Agreement price 11,887 - Xinfengjiang Power Provision of training services Agreement price 10,896 - Changhu Power Provision of training services Agreement price 7,264 - Nanshui Power Provision of training services Agreement price 3,632 - Qingxi Power Provision of training services Agreement price 3,632 - Zhuhai Jinwan Electricity income from
Electric deviation assessment Agreement price - 4,208,214 Electricity income from
Yunhe Power deviation assessment Agreement price - 3,205,702 Electricity income from
Guanghe Power deviation assessment Agreement price - 1,868,165 Electricity income from
Yuelong Power deviation assessment Agreement price - 788,661 Menghua New Provision of consulting
Energy services Agreement price - 308,871 Electricity income from
Yuehua Power deviation assessment Agreement price - 129,932
244,042,540 230,012,501
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
8 Related parties and related party transactions(Cont’d)
(5) Related party transactions(Cont’d)
(b) Purchase of electric power
Related parties 2018 2017 Guanghe Power 127,274,483 25,568,631 Zhuhai Jinwan
Electric 121,802,871 55,868,421 Yunhe Power 38,780,195 37,018,286 Yuehua Power 26,059,755 1,318,520 Yuelong Power 11,951,043 8,427,938 325,868,347 128,201,796 The amount for purchase of electric power is determined by the difference of decrease in current feed-in tariff and purchased quantity of electricity agreed by companies selling electric power and power plants from related parties.
(c) Leases
The Group as the lessee:
Leasing payment Leasing payment Type of the leased recognised in recognised in Name of lessor assets 2018 2017 Yudean PI Housing rental 8,145,254 8,293,375 Yudean PI Billboard rental 776,478 760,686 Maoming Thermal Land rental - 1,043,884 Maoming Thermal Housing rental - 148,005 Yuehua Power Housing rental - 25,826 8,921,732 10,271,776 The Group as the lessor:
Leasing income Leasing income Type of the leased recognised in recognised in Name of lessee assets 2018 2017 Housing
Yudean PM rental 192,000 - Housing
Yudean Shipping rental 39,077 - Shajiao C Housing rental - 195,524 231,077 195,524
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
8 Related parties and related party transactions(Cont’d)
(5) Related party transactions(Cont’d)
(d) Guarantee
The Group as the guaranteed party:
Guaranteed Whether the guarantee Guarantor amount Starting date Maturity date has been fulfilled or not GEGC 1,500,000,000 14/08/2013 13/08/2022 No (e) Lending among related parties
(i) According to the 2018 Framework Agreement on Financial Services between the Company and Yudean Finance, Yudean Finance is committed to offering the Group a credit line of less than RMB 17,000,000,000 in 2018. In 2018, the Group borrowed a total of RMB 8,688,316,390 (2016: RMB 8,468,213,230) from Yudean Finance based on actual capital requirement. The Group paid an interest of RMB 352,108,769 (2017: RMB 297,702,035) for such borrowings (Note 8(5)(i)).
(ii) In 2018, the net amount of theGroup’s deposits in Yudean Finance increased by RMB 825,817,906 (2017: a net decrease of RMB 646,703,288). Interest due from Yudean Finance amounted to RMB 60,293,273 (2017: RMB 60,170,777). In light of the frequent deposits and withdrawals, the Group only disclosed the amount of net change in deposits.
(iii) As disclosed in Note 4(23)(a), according to the three-party agreement signed among the Group, Yudean Finance and Industry Fuel, the amount of the notes issued to Industry Fuel by the Group and discounted with Yudean Finance represents the amount payable to Yudean Finance. Given the frequent transactions, only the net change of the balance of commercial acceptance notes discounted with Yudean Finance as at 31 December is disclosed. As at 31 December 2018, the net amount of YudeanFinance’s discounting of acceptance notes issued by the Group to Industry Fuel increased by RMB 423,161,107. In 2018, the discounting interest charged by Yudean Finance and borne by the Group which was included in the discounting interest expenses in the year amounted to RMB 13,243,370.
(iv) Based on the Framework Agreement on Financial Lease between the Company and Yudean Leasing, Yudean Leasing is committed to offering the Group a credit line of less than RMB 500 million, which is reusable during the one-year agreement period. As at 31 December 2018, the balance of BoheCoal’s long-term payables of finance lease through leaseback was RMB 906,981,377 (2017: Nil), and its interest expenses recorded in construction in progress was RMB 25,860,877 (2017: Nil); the balance of Qujie WindPower’s long-term payables of finance lease was RMB 240,830,581 (2017: Nil), and the interest payable on the lease amounted to RMB 2,167,970 (2017: Nil) while the interest expenses recorded in construction in progress amounted to RMB 2,469,636 (2017: Nil).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
8 Related parties and related party transactions(Cont’d)
(5) Related party transactions(Cont’d)
(e) Lending among related parties(Cont’d)
(v) Transactions between the Company and its subsidiaries
As at 31 December 2018 and 31 December 2017, the balance of non-secured loans borrowed by the Company from its subsidiaries was RMB 1,100,000,000, with no change in this year (2017: net increase of RMB 800,000,000), and the annual interest rate was3.92% (2017:3.92%). An interest expense of RMB 40,457,667 (2017: RMB 37,916,159) was recognised. The balance of borrowings at the end of 2018 was RMB 1,100,000,000 (2017: RMB 1,100,000,000). The Company only discloses the net change in loan of capital with its subsidiaries due to the frequent transaction of funds.
In 2018, the net increase in non-secured loans provided by the Company to its subsidiaries was RMB 240,000,000 (2017: net decrease of RMB 33,540,000) with an annual interest rate from4.75% to5.23% (2017:4.75% to4.99%). An interest income of RMB 18,545,516 (2017: RMB 17,784,373) was recognised. The balance of borrowings at the end of 2018 was RMB 641,460,000 (2017: RMB 401,460,000). The Company only discloses the net change in loan of capital with its subsidiaries due to the frequent transaction of funds.
(f) Payment by related parties on behalf of the Group
2018 2017 Shaoguan Electric Power Plant - 613,807 (g) Allocation of common expenses
TheCompany’s branches Shajiao A and Shajiao C agreed to share common expenses based on their agreed allocation percentage. In 2018, the common expenses received by the Group from Shajiao C was RMB 4,516,707 (2017: RMB 2,642,602).
(h) Interest income
2018 2017 Interest on deposits paid by Yudean Finance 60,293,273 60,170,777
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
8 Related parties and related party transactions(Cont’d)
(5) Related party transactions(Cont’d)
(i) Interest expenses
2018 2017 Interest on borrowings paid to Yudean
Finance 352,108,769 297,702,035 Notes discounting interest paid to Yudean
Finance 13,243,370 13,638,031 Finance lease interest paid to Yudean
Leasing 28,330,513 - 393,682,652 311,340,066 In 2018, the loans provided by Yudean Finance to the Group carry an annual interest rate from3.92% to4.66% (2017: from3.92% to4.53%).
(j) Purchas of assets from related parties
2018 2017 Shaoguan Electric Power Plant 167,735,823 - In 2018, theCompany’s subsidiary Yuejiang Power acquired certain land, buildings and power generation equipments at RMB 167,735,823 from Shaoguan Electric Power Plant. The carrying amount of the acquired fixed assets and land use right is RMB 25,824,023 and RMB 141,911,800 respectively.
(k) Joint investment
As at 31 December 2018, subsidiaries, joint ventures and associates jointly invested by the Group and GEGC were listed below:
Percentage of equity attributable to GEGC Maoming Zhenneng 30.12% Bohe Coal 33.00% Yudean Finance 65.00% Industry fuel 50.00% Shanxi Yudean Energy 60.00% Yudean Property Self-Insurance 51.00% Western Investment 35.00% (l) Remuneration of key management
2018 2017 Remuneration of key management 5,411,185 3,859,328
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
8 Related parties and related party transactions(Cont’d)
(6) Receivables from and payables to related parties
Receivables from related parties
31 December 2018 31 December 2017
Ending Provision for Ending Provision for balance bad debts balance bad debts Cash at bank
and on
hand Yudean Finance 4,978,118,712 - 4,152,300,806 - Notes and
accounts
receivables Shajiao C 10,466,023 - 13,185,631 - Yunhe Power 2,817,688 - 2,526,785 - Yudean New
Energy 1,062,659 - 762,132 - Huizhou New
Energy 273,740 - - - Yuelong Power 18,000 - 15,550 - Zhuhai Jinwan
Electric - - 4,923,611 - Guanghe Power - - 35,177 - 14,638,110 - 21,448,886 - Other Yudean
receivables Environmental 54,456,181 - 136,540,065 - Yudean Finance 18,856,569 - 14,923,771
GEGC 2,070,690 - 65,767 - Shajiao C 1,663,292 - 253,097 - Yudean PI 1,267,802 - 1,274,519 - Xinhui Power 549,900 -
Yudean PM 543,732 - 413,282 - Menghua New
Energy - - 241,844 - 79,408,166 - 153,712,345 - Advances to
suppliers Industry fuel 547,209,560 - 589,294,868 -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
8 Related parties and related party transactions(Cont’d)
(6) Receivables from and payables to related parties(Cont’d)
Payables to related parties(Cont’d)
31 December 2018 31 December 2017 Notes payable
and accounts
payable Industry fuel 1,449,619,847 1,531,185,052 Yudean Finance 653,161,107 230,000,000 Yudean Environmental 34,526,337 62,871,339 Huangpu Yuehua Human
Resources 286,313 566,250 Maoming Thermal - 89,461,265 Huangpu Power
Engineering - 3,335,568 Yunhe Power - 1,006,553 Zhuhai Jinwan Electric - 218,925 Yudean Technology - 68,000 Zhuhai Grand Power - 37,183 Yuelong Power - 34,071 2,137,593,604 1,918,784,206 31 December 2018 31 December 2017 Other
payables Yuehua Power 58,000,000 - Yudean Finance 13,356,633 10,451,874 Yudean PM 7,730,098 5,300,494 Yudean Shipping 5,312,830 4,280,000 Huangpu Power Engineering 4,818,353 2,451,285 Yudean Leasing 2,167,970 - Huangpu Yuehua Human
Resources 1,622,290 1,701,219 Yudean Environmental 1,414,106 631,264 Yudean Technology 1,130,960 1,028,740 Yudean Property
Self-Insurance 400,000 - Shenzhen Tianxin 70,000 70,000 Shaoguan Electric Power
Plant - 11,024,853 Maoming Thermal - 7,187,525 Yudean PI - 1,360,639 96,023,240 45,487,893
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
8 Related parties and related party transactions(Cont’d)
(6) Receivables from and payables to related parties(Cont’d)
Payables to related parties(Cont’d)
31 December 2018 31 December 2017 Short-term
borrowings Yudean Finance 5,042,000,000 5,637,000,000 Current portion of
non-current
liabilities Yudean Finance 143,919,490 191,763,707 Long-term
borrowings Yudean Finance 2,833,766,371 2,533,388,877 Long-term
payables Yudean Leasing 1,147,811,958 - Part of information on short-term borrowings and long-term borrowings obtained from related parties is disclosed in Notes 4(19), 4(25) and 4(27); details on notes payable discounted by Yudean Finance is disclosed in Note 4(20)(a); details on long-term payables provided by Yudean Leasing is disclosed in Note 4(29)(a). Except for the aforesaid borrowings, notes payable and long-term payables, other receivables from and payables to related parties are interest-free and unsecured current accounts that will be paid off when needed.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
8 Related parties and related party transactions(Cont’d)
(7) Commitments in relation to related parties
Leases
31 December 2018 31 December 2017 - Lessee
Yudean PI 18,622,911 8,264,642 Maoming Thermal - 23,920,348 18,622,911 32,184,990 (8) Investment commitments
As at 31 December 2018, the Group did not make any investment commitments with related parties.
9 Contingencies
(1) As at 31 December 2018, the Company provided joint guarantee for bank borrowings amounting to RMB 98,310,000 for Yunnan Baoshan Binlangjiang Hydroelectricity Development Co Ltd., of which the liability relief procedure is being handled.
(2) As at 31 December 2018, the Company provided joint guarantee for bank borrowings from European Investment Bank amounting to RMB 74,798,535 for Zhanjiang Wind Power (Note 4(27)(a)(v)); and the Company provided joint guarantee for bank borrowings amounting to RMB 44,000,000 (Note 4(27)(c)) for Yuejiang Power, based on the percentage of equity owned in Yuejiang Power.
(3) Pinghai Power failed to complete settlement with one of its engineering contractors due to the dispute of settlement regarding construction contracts. On 22 October 2018, the contractor filed a lawsuit in the local municipal people's court, urging Pinghai Power to make payment for the additional construction expenses of RMB 165,978,408 arising from modification of scope of contract and the interest of RMB 72,478,979 arising from delay in payment. On 8 January 2019, the contractor also filed a lawsuit in the local people's court at the county level, urging Pinghai Power to make payment for the additional construction expenses of RMB 12,080,481 arising from modification of scope of contract and the interest of RMB 5,554,311 arising from delay in payment. On 1 April 2019, Pinghai Power had received subpoena from the local municipalpeople’s court, and the lawsuit is expected for hearing on 14 May 2019. As at the issuance date of the report, according to the suggestion of legal adviser, since the lawsuits were still pending for hearing, management of the Group could not estimate the litigation result, thus no construction expenses and interest related to the lawsuits were presented in the financial statements for the year ended 31 December 2018.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
10 Commitments
(1) Capital commitments
Capital expenditures contracted for by the Group but are not yet necessary to be recognised on the balance sheet as at the balance sheet date are as follows:
31 December 2018 31 December 2017 Buildings and power generation equipment 8,351,174,768 4,974,441,491 The above capital commitments will be primarily used for the construction of new electric plants and the purchase of new generator units.
(2) Operating lease commitments
The future minimum lease payments due under the signed irrevocable operating leases contracts are summarised as follows:
31 December 2018 31 December 2017 Within 1 year 16,483,957 8,721,054 1 to 2 years 12,699,701 6,569,416 2 to 3 years 2,235,203 4,000,026 Over 3 years 8,375,246 30,360,476 39,794,107 49,650,972 (3) Implementation of prior commitments
(a) The Eighth Session of the Board approved the Proposal of Joint Establishment of Guangdong Yudean Property Self-Insurance Co., Ltd. during its 9th meeting on 12 November 2015. In order to enhance theCompany’s capability of managing quantitative risks and insurance, the board agreed to establish Guangdong Yudean Property Self-Insurance Co., Ltd. with Yudean, the controlling shareholders, in which the Company contributed RMB147,000,000 and accounted for49% of the equity. The Ninth Session of the Board approved the Proposal of Increasing Capital for Guangdong Yudean Property Self-Insurance Co., Ltd. during its 3rd meeting on 26 April 2018. In order to further enhance Yudean PropertySelf-Insurance’s capability for providing insurance services and improve risk resistance capacity, the Company agreed to increase a capital of RMB 98,000,000 for Yudean Property Self-Insurance at an equity proportion of49%. As at 31 December 2018, the Company had injected RMB 98,000,000, and the accumulated injection of capital fund was RMB 245,000,000.
(b) The Ninth Session of the Board approved the Proposal of Establishment of Zhuhai Jinwan Offshore Wind Power Co., Ltd. during its 3rd meeting on 26 April 2018. In order to accelerate the subsequent work for Zhuhai Jinwan offshore wind power project, the Board gave permission to its wholly-owned subsidiary Guangdong Wind Power for the establishment of Zhuhai Wind Power. Guangdong Wind Power should be responsible for the investment, development and construction of Zhuhai Jinwan offshore wind power project. The capital for Phase I amounts to RMB 65,000,000. As at 31 December 2018, the Company had injected capital of RMB 65,000,000 to Zhuhai Wind Power.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
10 Commitments(Cont’d)
(3) Implementation of prior commitments(Cont’d)
(c) The Ninth Session of the Board approved the Proposal of Investment in Construction of Zhanjiang Wailuo Offshore Wind Power Project (Phase I) during its 1st communication meeting on 23 March 2018. In order to actively implement the energy development plans made by the State and Guangdong Province, greatly develop clean energy and accelerate the optimisation of electric generator structure, the Board gave permission to its wholly-owned subsidiary Qujie Wind Power for the construction of Zhanjiang Wailuo Offshore Wind Power Project (Phase I). The installation capacity of the project reached at 198MW, and the total investments hit RMB 3,739,450,000. The capital fund was recorded as RMB 747,890,000 at a proportion of20%. Based on the progress of project construction and capital demand, the Company would increase capital for Qujie Wind Power if necessary. As at 31 December 2018, the Company had injected capital fund of RMB 500,000,000 to Qujie Wind Power.
(d) The Ninth Session of the Board approved the Proposal of Launching the Preliminary Work of Zhanjiang Wailuo Offshore Wind Power Project (Phase II) during its 1st communication meeting on 23 March 2018. In order to give full play to the regional resource information and personnel advantages gained in the construction of Zhanjiang Wailuo Offshore Wind Power Project (Phase I) and seize the opportunities to accelerate the offshore wind power, the Board agreed to launch the preliminary work of Zhanjiang Wailuo Offshore Wind Power Project (Phase II) with a planned total installation capacity of 200 MW. TheCompany’s wholly-owned subsidiary Qujie Wind Power should be responsible for the detailed preliminary work. Expenses for the preliminary work were controlled to RMB 48,000,000, which would be settled via capital increase to Qujie Wind Power by the Company. As at 31 December 2018, the Company had injected capital fund of RMB 48,000,000 to Qujie Wind Power.
(e) The Eighth Session of the Board approved the Proposal of Establishment of Yudean Yangjiang Offshore Wind Power Co., Ltd. during its 6th meeting on 27 April 2015. The Board gave permission to theCompany’s wholly-owned subsidiary Guangdong Wind Power for the establishment of Yangjiang Wind Power in Yangjiang, which was deemed as the main part of investment in Yangjiang Shapa offshore wind power project. The registered capital for Phase I amounted to RMB 55,000,000, which would be settled via capital increase to Guangdong Wind Power by the Company. In order to step up for the scale development of theCompany’s new energy power generation, improve the proportion of clean energy installation, and optimise the structure of power source, the Board agreed on the investment in and construction for Shapa Project by Yangjiang Wind Power with a dynamic total investment of RMB 5,963,270,000. The capital fund was calculated as RMB 1,192,660,000 at a proportion of20%. Deducting the preliminarily registered capital of RMB 55,000,000, the Company still requires a capital increase of RMB 1,137,660,000. As at 31 December 2018, the Company had injected RMB 300,000,000, and the accumulated injection of capital fund was RMB 355,000,000.
(f) The Ninth Session of the Board approved the Proposal of Increasing Capital for Guangdong Province Wind Power Generation Co., Ltd. during its 5th meeting on 29 August 2018. Huilai Wind Power proposed to carry out technical transformation to Haiwan Shifeng Power Plant, for which Guangdong Wind Power proposed to increase a capital of RMB 39,000,000. To meet the capital requirement of technical transformation, the Board agreed to increase the capital by RMB 39,000,000 for the technical transformation project at Haiwan Shifeng Wind Plant. As at 31 December 2018, the Company had not injected capital fund to Guangdong Wind Power.
(g) The Ninth Session of the Board approved the Proposal on Involvement in Capital and Share Increase of Shenzhen Capital Group Co., Ltd. during its 2nd communication meeting on 19 September 2018. In order to meet the requirement ofSCG’s strategic development, the Company was allowed to increase capital of RMB 213,034,000 to SCG at an equity proportion of3.673% under the written approval of State-owned Assets Supervision and Administration Commission of the People's Government of Shenzhen Municipal. An amount of RMB 65,135,200 has been injected in 2018, and the remaining RMB 147,898,800 would be injected within 2020. As at 31 December 2018, the Company had injected RMB 65,135,200.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
10 Commitments(Cont’d)
(3) Implementation of prior commitments(Cont’d)
(h) The Seventh Session of the Board approved the Proposal of Investment in Phase II Thermal Power Cogeneration Project of Huizhou LNG Electric during its 14th meeting in April 2013. According to the proposal, the Board permits the Company to invest in Phase II Thermal Power Cogeneration Project of Huizhou LNG Electric with the contribution ratio of67%. The capital is about RMB 569,000,000 in total, which will be made in batches based on the project progress and capital requirement. The Company injected RMB 42,670,000 and RMB 52,330,000 respectively in September and December 2017. As at 31 December 2018, the Company had injected RMB 103,578,300, and the accumulated injection of capital fund was RMB 198,668,300.
11 Events after the balance sheet date
(1) As stated in Note 4(11)(a)(iv), the Company expected that the estimated useful life of relevant fixed assets would be significantly affected according to the current shoutdown scheme of Shajiao A. According to the Proposal on Adjustment for the Depreciation Periods for Fixed Assets of Shajiao A approved by the Ninth Session of the Board during its 7th meeting on 25 January 2019, adjustments were made to the depreciation periods of related fixed assets:2&3# generator units would be depreciated over their remaining useful life of one year, while the power generating equipment and the accessory equipment for production and management of4&5# generator units would be depreciated over their remaining useful lives of 5 years, and the buildings would all be depreciated over their remaining useful lives of 5 years. As at 31 December 2018, the carrying amount of ShajiaoA’s long-term assets related to the generator units under the accelerated depreciation was RMB 668,744,890. Due to such matter, management of the Company expected that the net profit andowners’ equity for the year ended 31 December 2019 would decrease by RMB 173,571,346. (2) According to the resolution at the Board ofDirectors’ meeting dated on 11 April 2019, the Board suggested the Group appropriating10% and25% of net profit, amounting to RMB 117,603,557 and RMB 294,008,893 to the statutory surplus reserves and the discretionary surplus reserve, respectively (2017: the Group appropriated RMB 69,654,691 of statutory surplus reserves and RMB 174,136,728 of discretionary surplus reserve). Meanwhile, the Board also suggested the Group distributing cash dividends of RMB 315,017,039 to its shareholders at RMB 0.6 per 10 shares (2017: the Group distributed cash dividends of RMB 420,022,719 to the shareholders at RMB 0.8 per 10 shares). The proposal is still pending for the approval of theshareholders’ meeting. The cash dividends proposed after the balance sheet date have not been recognised as liabilities at the balance sheet date.
12 Financial risk
The Group's activities expose it to a variety of financial risks: market risk (primarily including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Group's overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group's financial performance.
(1) Market risk
(a) Foreign exchange risk
TheGroup’s major operational activities are carried out in Mainland China and a majority of the transactions are denominated in RMB. The Group is exposed to foreign exchange risk arising from the recognised assets and liabilities, and future transactions denominated in foreign currencies, primarily with respect to US dollars. TheGroup’s finance department at its headquarters is responsible for monitoring the amount of assets and liabilities, and transactions denominated in foreign currencies to minimise the foreign exchange risk. Therefore, the Group may take proper measures to mitigate the foreign exchange risk. During 2018 and 2017, the Group did not enter into any forward exchange contracts or currency swap contracts.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
12 Financial risk(Cont’d)
(1) Market risk(Cont’d)
(a) Foreign exchange risk(Cont’d)
As at 31 December 2018 and 31 December 2017, the financial assets and the financial liabilities denominated in foreign currencies were expressed in RMB as follows:
31 December 2018
USD EUR HKD Total Financial assets
denominated in
foreign currency -
Cash at bank and on
hand 1,304 - 11,288 12,592 Financial liabilities
denominated in
foreign currency -
Long-term borrowings 68,270,542 3,537,220 - 71,807,762 Current portion of
non-current liabilities 6,527,993 2,469,081 - 8,997,074 74,798,535 6,006,301 - 80,804,836 31 December 2017
USD EUR HKD Total Financial assets
denominated in
foreign currency -
Cash at bank and on
hand 1,241 - 10,767 12,008 Financial liabilities
denominated in
foreign currency -
Long-term borrowings 67,525,556 5,971,857 - 73,497,413 Current portion of
non-current liabilities 10,062,668 2,454,923 - 12,517,591 77,588,224 8,426,780 - 86,015,004 As at 31 December 2018, if the RMB had strengthened/weakened by10% against the USD while all other variables had been held constant, the Group's net profit for the year would have been approximately RMB 5,609,792 (31 December 2017: approximately RMB 5,819,024) higher/lower for various financial assets and liabilities denominated in USD.
As at 31 December 2018, if the RMB had strengthened/weakened by10% against the EUR while all other variables had been held constant, theGroup’s net profit for the year would have been approximately RMB 450,472 (31 December 2017: RMB 632,009) higher/lower for various financial liabilities denominated in EUR whose recording currency is RMB.
As at 31 December 2018, if the RMB had strengthened/weakened by10% against the HKD while all other variables had been held constant, theGroup’s net profit for the year would have been approximately RMB 847 (31 December 2017: RMB 808) lower/higher for various financial assets
denominated in HKD.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
12 Financial risk(Cont’d)
(1) Market risk(Cont’d)
(b) Interest rate risk
TheGroup’s interest rate risk mainly arises from long-term interest bearing borrowings including long-term borrowings, debentures payable and long-term payables. Financial liabilities issued at floating rates expose the Group to cash flow interest rate risk. Financial liabilities issued at fixed rates expose the Group to fair value interest rate risk. The Group determines the relative proportions of its fixed rate and floating rate contracts depending on the prevailing market conditions. As at 31 December 2018, theGroup’s long-term interest bearing borrowings were mainly floating rate contracts denominated in RMB amounting to RMB 20,933,523,320 (31 December 2017: RMB 21,013,983,110).
TheGroup’s finance department at its headquarters continuously monitors the interest rate position of the Group. Increases in interest rates will increase the cost of new borrowing and the interest expenses with respect to theGroup’s outstanding floating rate borrowings, and therefore could have a material adverse effect on theGroup’s financial position. The Group determines the proportions of its fixed rate and floating rate contracts depending on the prevailing market conditions, and performs periodic reviews and monitors to maintain appropriate combinations of fixed and floating rates. In 2018 and 2017, the Group did not hedge the interest rate risk with derivative financial instruments.
As at 31 December 2018, if interest rates on the floating rate borrowings had risen/fallen by 10 basis points while all other variables had been held constant, theGroup’s net profit would have decreased/increased by approximately RMB 17,884,606 (31 December 2017: rise/fall by 10 basis points, approximately RMB 18,043,307).
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
12 Financial risk(Cont’d)
(2) Credit risk
Credit risk is managed on the grouping basis. Credit risk mainly arises from cash at bank, notes and accounts receivables, other receivables etc.
The Group expects that there is no significant credit risk associated with cash at bank since they are deposited at Yudean Finance, state-owned banks and other medium or large size listed banks. Management does not expect that there will be any significant losses from non-performance by these counterparties.
In addition, the Company has policies to limit the credit exposure on notes and accounts receivables and other receivables. The Group assesses the credit quality of and sets credit limits on its customers by taking into account their financial position, the availability of guarantee from third parties, their credit history and other factors such as current market conditions. The credit history of the customers is regularly monitored by the Group. In respect of customers with a poor credit history, the Group will use written payment reminders, or shorten or cancel credit periods, to ensure the overall credit risk of the Group is limited to a controllable extent.
As at the balance sheet date, the Group had no significant collateral or other credit enhancements held as a result of the debtor's mortgage.
(3) Liquidity risk
Cash flow forecasting is performed by each subsidiary of the Group and aggregated by theGroup’s finance department in its headquarters. TheGroup’s finance department at its headquarters monitors rolling forecasts of the Group's short-term and long-term liquidity requirements to ensure it has sufficient cash and securities that are readily convertible to cash to meet operational needs, while maintaining sufficient headroom on its undrawn committed borrowing facilities from major financial institutions so that the Group does not breach borrowing limits or covenants on any of its borrowing facilities to meet the short-term and long-term liquidity requirements.
The financial liabilities of the Group at the balance sheet date are analysed by their maturity dates below at their undiscounted contractual cash flows:
31 December 2018
Carrying amount on Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total balance sheet Short-term borrowings 7,772,410,040 - - - 7,772,410,040 7,526,000,000 Notes and accounts
payables 3,137,761,522 - - - 3,137,761,522 3,137,761,522 Other payables 4,152,518,495 - - - 4,152,518,495 4,152,518,495 Other current liabilities 1,109,288,333 - - - 1,109,288,333 1,107,904,110 Long-term borrowings
and long-term
borrowings due
within one year 2,633,767,677 3,625,442,537 5,606,077,351 14,610,174,917 26,475,462,482 20,548,090,036 Debentures payable
and debentures
payable due within
one year 758,015,172 76,621,672 833,520,000 - 1,668,156,844 1,536,994,298 Long-term payables
and long-term
payables due within
one year (excluding
payables for specific
projects) 431,974,174 412,579,372 1,515,835,861 636,898,250 2,995,037,657 2,556,113,382 19,995,735,413 4,114,643,581 7,953,183,212 15,247,073,167 47,310,635,373 40,565,381,843
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
12 Financial risk(Cont’d)
(3) Liquidity risk(Cont’d)
31 December 2017
Carrying amount on Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total balance sheet Short-term
borrowings 9,539,414,580 - - - 9,539,414,580 9,270,000,000 Notes and
accounts
payables 2,516,639,061 - - - 2,516,639,061 2,516,639,061 Other payables 4,016,769,705 - - - 4,016,769,705 4,016,769,705 Long-term
borrowings and
long-term
borrowings due
within one year 2,336,337,873 2,698,035,335 7,228,027,270 15,219,780,032 27,482,180,510 20,911,221,812 Debentures
payable and
debentures
payable due
within one year 1,234,393,699 21,700,000 743,400,000 - 1,999,493,699 1,896,103,687 Long-term
payables and
long-term
payables due
within one year
(excluding
payables for
specific projects) 406,242,457 376,429,119 752,323,464 457,267,963 1,992,263,003 1,917,516,182 20,049,797,375 3,096,164,454 8,723,750,734 15,677,047,995 47,546,760,558 40,528,250,447 TheGroup’s available financing credit lines under agreement with the financial institutions as at balance sheet date are as follows:
31 December 2018 31 December 2017 Available financing credit lines under
agreement with the financing
institutions 20,635,056,100 17,931,865,295 13 Fair value estimates
The level in which fair value measurement is categorised is determined by the level of the fair value hierarchy of the lowest level input that is significant to the entire fair value measurement:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3: Unobservable inputs for the asset or liability.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
13 Fair value estimates(Cont’d)
(1) Assets measured at fair value on a recurring basis
As at 31 December 2018, the assets measured at fair value on a recurring basis by the above three levels are analysed below:
Level 1 Level 2 Level 3 Total Available-for-sale financial
assets -
Available-for-sale equity
instruments 340,765,380 - 799,040,951 1,139,806,331 As at 31 December 2017, the assets measured at fair value on a recurring basis by the above three levels are analysed below:
Level 1 Level 2 Level 3 Total Available-for-sale financial
assets -
Available-for-sale equity
instruments 408,992,985 - - 408,992,985 The Group takes the date on which events causing the transfers between the levels take place as the timing specific for recognising the transfers. There is no transfer between Level 1 and Level 2 for the current year.
The fair value of financial instruments traded in an active market is determined at the quoted market price; and the fair value of those not traded in an active market is determined by the Group using valuation technique. The valuation models used mainly comprise discounted cash flow model and market comparable corporate model. The inputs of the valuation technique mainly include risk-free interest rate, benchmark rate, exchange rate, credit spread, liquidity premium, EBITDA multiplier, liquidity discount, etc.
(2) Assets and liabilities not measured at fair value but for which the fair value is disclosed
Financial assets and liabilities measured at amortised cost mainly include receivables, available-for-sale financial assets, short-term borrowings, payables, long-term borrowings, debentures payable and long-term payables.
The carrying amount of the financial assets and liabilities not measured at fair value is a reasonable approximation of their fair value.
14 Capital management
TheGroup’s capital management policies aim to safeguard theGroup’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders, and to maintain an optimal capital structure to reduce the cost of capital.
The Group's total capital is calculated as‘owners’equity’ as shown in the consolidated balance sheet. The Group is not subject to external mandatory capital requirements, and monitors capital on the basis of gearing ratio.
As at 31 December 2018 and 31 December 2017, theGroup’s gearing ratios were as follows:
31 December 2018 31 December 2017
Gearing ratio 57.02% 58.17%
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
15 Notes to theCompany’s financial statements
(1) Notes and accounts receivables
31 December 2018 31 December 2017 Accounts receivable (a) 264,537,475 195,462,150 (a) Accounts receivable
31 December 2018 31 December 2017 Accounts receivable 264,564,281 195,462,150 Less: Provision for bad debts (26,806) - 264,537,475 195,462,150 (i) The ageing of the accounts receivable is analysed as follows:
31 December 2018 31 December 2017 Within 1 year 264,564,281 195,462,150 As at 31 December 2018 and 31 December 2017, the Company had no accounts receivable overdue but unimpaired.
(ii) Accounts receivable are analysed by categories as follows:
31 December 2018 31 December 2017
Ending balance Provision for bad debts Ending balance Provision for bad debts% of % of
total Percentage total Percentage Amount balance Amount (%) Amount balance Amount (%) With amounts that are
individually significant
and that the related
provision for bad debts
is provided on the
individual basis - - - - - - - - Provision for bad debts on
the grouping basis
Low-risk grouping 261,883,61798.99% - - 195,462,150100.00% - - Ageing analysis
grouping 2,680,6641.01% (26,806) 1.00% - - - - With amounts that are not
individually significant
but that the related
provision for bad debts
is provided on the
individual basis - - - - - - - - 100.00
264,564,281 % (26,806) 0.01% 195,462,150100.00% - - (iii) As at 31 December 2018, the five largest accounts receivable by debtors were summarised and analysed as follows:
Provision for bad
Ending balance debts Percentage Total balance of the five largest accounts
receivable 264,537,475 (26,806) 0.01%
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
15 Notes to theCompany’s financial statements(Cont’d)
(2) Other receivables
31 December 2018 31 December 2017 Entrusted loans receivable 335,000,000 - Supplementary medical insurance fund
receivable 22,113,731 - Receivables from sales of by-products 6,954,775 22,394,109 Petty cash receivable 2,607,574 901,951 Interest receivable 1,121,522 1,698,504 Dividends receivable 447,956 17,536,791 Others 7,166,030 4,688,244 Less: Provision for bad debts (115,360) - 375,296,228 47,219,599 (a) The ageing of other receivables is analysed below:
31 December 2018 31 December 2017 Within 1 year 373,852,955 46,515,768 1 to 2 years 960,869 18,403 2 to 3 years - 35,176 Over 3 years 597,764 650,252 375,411,588 47,219,599 As at 31 December of 2018 and 31 December 2017, the Company were clear of significant overdue amount of other receivables with no provision for impairment.
(b) The ageing of other receivables is analysed below:
31 December 2018 31 December 2017
Ending balance Provision for bad debts Ending balance Provision for bad debts% of
% of total Percent total Percent Amount balance Amount age Amount balance Amount age With amounts that are
individually
significant and that
the related
provision for bad
debts is provided
on the individual
basis - - - - - - - - Provision for bad
debts on the
grouping basis
Low-risk
grouping 370,766,77898.76% - - 47,219,599100.00% - - Ageing analysis
grouping 4,644,810 1.24% (115,360) 2.48% - - - - With amounts that are
not individually
significant but that
the related
provision for bad
debts is provided
on the individual
basis - - - - - - - -
375,411,588100.00% (115,360) 0.03% 47,219,599100.00% - -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
15 Notes to theCompany’s financial statements(Cont’d)
(2) Other receivables (Cont'd)
(c) As at 31 December 2018, the five largest other receivables by debtors were analysed as follows:% of total
other Provision for Nature Balance Ageing receivables bad debts Entrusted loans Within 1
Bohe Coal receivable 300,000,000 year 79.91% - Entrusted loans Within 1
Lincang Energy receivable 35,000,000 year 9.32% - Supplementary
medical
insurance fund Within 1
Taikang Pension receivable 22,113,731 year 5.89% - Guangdong Yudean Receivables
Environmental from sales of Within 1
Protection Co., Ltd. by-products 6,954,775 year 1.85% - Service fee Within 1
GEGC receivable 2,070,690 year 0.55% - 366,139,196 97.52% - (3) Long-term equity investments
31 December 2018 31 December 2017 Subsidiaries (a) 19,610,774,833 18,770,291,604 Joint ventures (b) 602,584,896 605,678,402 Associates (c) 5,763,295,357 5,132,577,336 Less: Long-term equity investments - provision
for impairment of subsidiary (a) (1,251,824,079) (1,138,134,640) Long-term equity investments - provision
for impairment of joint venture (c) (25,010,686)
24,699,820,321 23,370,412,702
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[]English translation for reference only
15 Notes to theCompany’s financial statements(Cont’d)
(3) Long-term equity investments(Cont’d)
(a) Subsidiaries
Movements for the current year
Ending balance Declared cash 31 December Increase in Decrease in Provision for of provision for dividends during 2017 investment investment impairment Others 31 December 2018 impairment loss the year Zhanjiang Electric 2,185,334,400 - - - - 2,185,334,400 - 138,852,690 Yuejia Electric 176,095,071 - (176,095,071) - - - (455,584,267) - Maoming Zhenneng 687,458,978 - - - - 687,458,978 - - Jinghai Power 1,930,395,668 - - - - 1,930,395,668 - 136,381,289 Zhanjiang Wind
Power 242,277,000 - - - - 242,277,000 - - Zhongyue Energy 963,000,000 - - - - 963,000,000 (187,248,115) - Humen Electric 3,192,416 - - - - 3,192,416 (86,807,584) - Anxin Inspection 20,000,000 - - - - 20,000,000 - 447,956 Bohe Coal 2,229,000,000 - - - - 2,229,000,000 - - Pinghai Power 720,311,347 - - - - 720,311,347 - 189,854,558 Red Bay Power 2,220,023,386 - - - - 2,220,023,386 - 139,383,465 Huizhou Natural Gas 1,072,506,646 103,578,300 - - - 1,176,084,946 - 125,718,705 Guangqian Electric 1,353,153,223 - - - - 1,353,153,223 - 217,306,670 Yuejiang Power 745,200,000 - - - - 745,200,000 (408,494,674) - Huadu Natural Gas 186,550,000 - - - - 186,550,000 - - Dabu Electric 1,000,000,000 - - - - 1,000,000,000 - - Sub-total 15,734,498,135 103,578,300 (176,095,071) - - 15,661,981,364 (1,138,134,640) 947,945,333
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[]English translation for reference only
15 Notes to theCompany’s financial statements(Cont’d)
(3) Long-term equity investments(Cont’d)
(a) Subsidiaries (Cont'd)
Movements for the current year
Ending balance of Declared cash Increase in Decrease in Provision for provision for dividends during 31 December 2017 investment investment impairment Others 31 December 2018 impairment loss the year Guangdong Wind
Power 827,419,390 365,000,000 - - - 1,192,419,390 - - Leizhou Wind Power 80,800,000 - - - - 80,800,000 - - Qujie Wind Power 231,750,000 548,000,000 - - - 779,750,000 - - Power Sales 230,000,000 - - - - 230,000,000 - 5,309,037 Lincang Energy 427,689,439 - - (113,689,439) - 314,000,000 (113,689,439) - Yongan Natural Gas 90,000,000 - - - - 90,000,000 - - Tongdao Company 10,000,000 - - - - 10,000,000 - - Sub-total 1,897,658,829 913,000,000 - (113,689,439) - 2,696,969,390 (113,689,439) 5,309,037 Total 17,632,156,964 1,016,578,300 (176,095,071) (113,689,439) - 18,358,950,754 (1,251,824,079) 953,254,370 Relevant information of theCompany’s subsidiaries is set out in Note 6.
Lincang Energy has suffered from continued operating losses. Management of the Company made provision for impairment of long-term equity investment amounting to RMB 113,689,439 after assessing the recoverable amount of this long-term equity investment on the basis of equity shares in Lincang Energy. Zhongyue Energy and Yuejiang Power have suffered from continued operating losses. As at 31 December 2018, management of the Company respectively made provision for impairment of long-term equity investment amounting to RMB 187,248,115 and RMB 408,494,674 (31 December 2017: RMB 187,248,115 and RMB 408,494,674) after assessing the recoverable amounts of this long-term equity investment.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[]English translation for reference only
15 Notes to theCompany’s financial statements(Cont’d)
(3) Long-term equity investments(Cont’d)
(a) Subsidiaries (Cont'd)
In anticipation of the four generator units of Yuejia Electric to be shut down successively around 2016, theCompany’s management has provided for an impairment amounting to RMB 455,584,267 on the difference between theCompany’s entitlement in YuejiaElectric’s equity and its investment costs in Yuejia Electric in 2009, 2011 and 2013 after assessing the recoverable amounts of this long-term equity investment. In 2018, the Company received a capital of RMB 187,920,000 withdrew by Yuejia Electric. The difference between the withdrawn amount and the carrying amount of long-term equity investment, amounting to RMB 11,824,929, was recorded in investment income. After the completion of capital withdrawal, the carrying amount of theCompany’s long-term equity investment in Yuejia Electric has been adjusted to RMB 0.
The2×1000MW Ultra Supercritical Unit Engineering Project by theCompany’s holding subsidiary Humen Electric has been implemented with pre-stage feasibility analysis, design, three supplies and one levelling and other preparations. However, influenced by national policies upon the industry, the project has stagnated for years and signs of entire assets impairment have occurred. After the impairment test, provision for impairment loss of RMB 39,107,109 and RMB 87,911,775 has been made respectively in 2016 and 2017 for the project. After evaluating the recoverable amount of the long-term equity investment, theCompany’s management made the provision for impairment of Humen Electric amounting to RMB 86,807,584 according to theCompany’s equity proportion. As at 31 December 2018, the balance of provision for impairment of long-term investments of Humen Electric was RMB 86,807,584 (31 December 2017: RMB 86,807,584).
(b) Joint ventures
Movements for the current year
Share of net Provision
Increase Decrease profit/(loss) Share of other Other Cash dividends for Ending balance 31 December in in under equity comprehensive changes in or profits impairment 31 December of provision for 2017 investment investment method income equity declared loss Others 2018 impairment loss Industry fuel 605,678,402 - - 72,400,480 - - (75,493,986) - - 602,584,896 -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[]English translation for reference only
15 Notes to theCompany’s financial statements(Cont’d)
(3) Long-term equity investments(Cont’d)
(c) Associates
Movements for the current year
Transfer from Ending Transfer from Share of net Cash provision for balance of available-for- profit/(loss) Share of other Other dividends or Provision impairment of provision for 31 December Increase in sale financial under equity comprehensive changes in profits for available-for-sale 31 December impairment 2017 investment assets method income equity declared impairment financial assets 2018 loss Shanxi Yudean Energy 1,216,441,246 - - 227,748,560 - - (4,000,000) - - 1,440,189,806 - Yudean Finance 700,701,205 - - 85,475,612 - - (57,221,066) - - 728,955,751 - Taishan Electric 1,961,475,609 - - 129,315,387 - - (121,582,000) - - 1,969,208,996 - Yudean Shipping 941,757,936 - - 1,822,952 - - (8,469,538) - - 935,111,350 - Western Investment 153,696,713 - - (18,044,364) - - - - - 135,652,349 - Jiangkeng Hydropower 5,673,426 - - 874,094 - - (852,810) - - 5,694,710 - Yangshan Zhongxinkeng
Electric 7,509,371 - - 1,000,767 - - (701,312) - - 7,808,826 - Yudean Property
Self-Insurance 145,321,830 98,000,000 - 14,704,347 - - - - - 258,026,177 - Weixin Yuntou - - 313,928,778 (31,281,386) - - - - (25,010,686) 257,636,706 (25,010,686) 5,132,577,336 98,000,000 313,928,778 411,615,969 - - (192,826,726) - (25,010,686) 5,738,284,671 (25,010,686)
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
15 Notes to theCompany’s financial statements(Cont’d)
(4) Revenue and cost of sales
2018 2017 Revenues from main operations 2,235,681,776 2,069,432,698 Revenue from other operations 52,217,824 48,067,193 2,287,899,600 2,117,499,891 2018 2017 Cost of sales from main operations 2,132,196,128 2,014,615,189 Cost of sales from other operations 1,736,758 4,520,324 2,133,932,886 2,019,135,513 (a) Revenue and cost of sale from main operations
2018 2017
Cost of sales Cost of sales Revenues from from main Revenues from from main main operations operations main operations operations Revenue from sales of
electricity 2,211,867,034 2,116,516,443 2,055,641,237 2,004,239,952 Revenue from steam 23,814,742 15,679,685 13,791,461 10,375,237 2,235,681,776 2,132,196,128 2,069,432,698 2,014,615,189 (b) Revenue and cost of sales from other operations
2018 2017
Cost of sales Cost of sales Revenue from from other Revenue from from other other operations operations other operations operations Sales of materials 32,148,949 498,400 25,927,045 1,555,514 Rental income 7,189,032 274,737 4,852,933 21,077 Others 12,879,843 963,621 17,287,215 2,943,733 52,217,824 1,736,758 48,067,193 4,520,324 (5) Asset impairment losses
2018 2017 Impairment losses of long-term equity
investments 113,689,439 648,567,425 Impairment losses of fixed assets 40,395,369 - Bad debts losses 142,166 - Impairment losses of financial assets held for
sale - 25,010,686 154,226,974 673,578,111
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
15 Notes to theCompany’s financial statements(Cont’d)
(6) Investment income
2018 2017 Income from long-term equity investments
under cost method 965,079,299 1,030,406,322 Gains from long-term equity investments
under equity method 484,016,449 430,233,194 Investment income from available-for-sale
financial assets 49,140,042 52,319,444 Interest income from entrusted loans 18,545,516 17,688,957 Others 363,563 359,464 1,517,144,869 1,531,007,381 There is no significant restriction for remittance of return on investment for the Group.
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
1 Statement of non-recurring profit or loss
2018 2017 (Gains)/Losses on disposal of non-current assets (1,572,097) 4,720,404 Government grants recognised in profit or loss for the
current period (43,530,965) (41,344,595) Administrative penalty as well as tax and overdue fine
paid after tax inspection 12,679,505 7,274,913 Non-operating income other than aforesaid items (62,976,212) (6,502,013) (95,399,769) (35,851,291) Effect of income tax 25,191,469 10,104,459 Effect on minority interests after taxation 7,809,260 1,020,520 (62,399,040) (24,726,312) Basis for preparation of statement of non-recurring profit or loss
Pursuant to the Explanatory Announcement for Information Disclosure of Companies Offering Securities to the Public No.1 - Non-recurring Profit or Loss (2008) issued by China Securities Regulatory Commission, non-recurring profit or loss refers to profit or loss arising from transactions and events that are not directly related to thecompany’s normal course of business or that are relevant to ordinary activities, but are extraordinary and not expected to recur frequently that would have an influence on users of financial statements making economic decisions on the financial performance and profitability of an enterprise.
2 Return on net assets and earnings per share
Earnings per share
Weighted average Basic earnings per Diluted earnings per return on net asset(%) share share
2018 2017 2018 2017 2018 2017 Net profit attributable
to ordinary
shareholders of the
Company 2.02% 3.16% 0.09 0.14 0.09 0.14
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
Net profit attributable
to ordinary
shareholders of the
Company after
deducting
non-recurring profit
or losses 1.75% 3.06% 0.08 0.14 0.08 0.14
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for referenceonly]
3 Differences of accounting data under Chinese and foreign accounting policies
Differences in net profit and net assets attributable to the shareholdings of the company included in the consolidated financial statement prepared under the International Financial Reporting Standards (IFRSs) and the China Accounting Standards (CASs) are as follows:
Net profit Net assets
2018 2017 2018 2017 Under the CASs 474,461,997 743,180,431 24,227,302,288 23,695,190,653 Items and amounts adjusted
under the IFRSs
Difference in recognition of
goodwill on business
combination under
common control (a) - - 64,623,000 64,623,000 Difference in recognition of
land use value upon
business combination (a) (630,000) (630,000) 17,600,000 18,230,000 Impact on minority interests
(b) 54,120 54,120 4,810,219 4,756,099 Under the IFRSs 473,886,117 742,604,551 24,314,335,507 23,782,799,752 (a) Difference in recognition of goodwill on business combination under common control and difference in recognition of land use value upon business combination
Under the requirement of new CASs, goodwill arising from business combination under common control should not be recognised and capital reserve should be adjusted accordingly; whereas under the requirement of IFRSs, goodwill arising from business combination under common control should be recognised and it represents the excess on acquisition costs over the share of identifiable fair value of net asset from the acquiree on business combination. All assets obtained from the acquiree on business combination should be measured on their fair values. The measurement of the two standards will continue to show a difference.
(b) Impact on minority shareholders
The above mentioned difference in recognition of land use value upon business combination exists in the Company and some holding subsidiaries, thus causing effect against minority interests.
Guangdong Electric Power Development Co., Ltd. 2018Annual Report XII. Documents for reference
1.Financial statements bearing the seal and signature of legal representative, financial controller and the person in charge of the accounting organ;
2.Original audit report seal with accounting firms and signature and seal from CPA;
3.All original copies of official documents and notices, which were disclosed in Securities Times, China Securities and Hong Kong Commercial Daily (Both English and Chinese version);
4. Chinese Version of the annual report
The documents mentioned above are kept in office, and are ready for reference at any time (except public holidays, Saturday and Sunday).
The Board of Directors of Guangdong Electric Power Development Co., Ltd.
Chairman of the Board: Wang Jin
April 12, 2019