Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
Guangdong Electric Power Development Co., Ltd.
2020 Annual Report
April 2021
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
I. Important Notice, Table of Contents and Definitions
The Board of Directors , Supervisory Committee ,Directors, Supervisors and Senior Executives of the Companyhereby guarantees that there are no misstatement, misleading representation or important omissions in this reportand 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 incharge of the accounting department (the person in charge of the accounting )hereby confirm the authenticity andcompleteness of the financial report enclosed in this Annual report.Other directors attending the Meeting for annual report deliberation except for the followed:
The name of director who did not
attend the meeting in person
| The name of director who did not attend the meeting in person | Positions | Reason | The name of director who was authorized |
| Wen Lianhe | Director | Due to business | Wang Jin |
| Chen Ze | Director | Due to business | Wang Jin |
| Li Fangje | Director | Due to business | Zheng Yunpeng |
| Li Baobing | Director | Due to business | Zheng Yunpeng |
| Yan Ming | Director | Due to business | Rao Subo |
| Shen Hongtao | Independent director | Due to business | Sha Qilin |
This annual report involves the forecasting description such as the future plans, and does not constitute the actualcommitments of the company to the investors. Investors and stakeholders should all maintain sufficient awareness of risks forthis and understand the differences between plans, forecasts and commitments.The Company is mainly engaged in thermal power generation. The business of thermal power generation isgreatly affected by factors including electric power demand and fuel price. Refer to Section IX-9 of Chapter 4 ofthis 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 of5,250,283,986 for Base on the Company‘s total share capital ,the Company would distribute cash dividend to all the shareholders at the rate of CNY 1.2 for every 10 shares (with tax inclusive)，with 0 bonus shares（including tax）, and not converting capital reserve into share capital.
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
Table of Contents
I.Important Notice, Table of contents and DefinitionsII. Basic Information of the Company and Financial indexIII. Outline of Company BusinessIV. Management’s Discussion and AnalysisV. Important EventsVI. Change of share capital and shareholding of Principal ShareholdersVII. Situation of the Preferred SharesVIII. Information about convertible corporate bondsIX. Information about Directors, Supervisors and Senior ExecutivesX. Administrative structureXI. Corporate BondXII. Financial ReportXIII. Documents available for inspection
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
Definition
Terms to be defined
| Terms to be defined | Refers to | Definition |
| Guangdong Energy Group | Refers to | Guangdong Energy Group Co., Ltd. |
| Guangqian Company | Refers to | Shenzhen Guangqian Electric Power Co., Ltd. |
| Bohe Company | Refers to |
| 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 Company | Refers to | Guangdong Yudean Anxin Electric Inspection & Installation Co., Ltd |
| 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. |
| Maoming Thermal Power Plant | Refers to | Guangdong Energy Maoming Thermal Power Co., Ltd.（formerly " Maoming Zhenneng Thermal Power Co., Ltd. " renamed on November 3, 2020) |
| 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 Gas 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. |
| Binhaiwan Energy Company | Refers to | Guangdong Yudean Binhaiwan Energy Co., Ltd. |
| Dianbai Wind Power Company | Refers to | Guangdong Yudean Dianbai Wind Power Co., Ltd. |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
Yangjiang Wind Power Company
| 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. |
| 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. |
| Yudean 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. |
| Energy Group Finance Company | Refers to | Guangdong Energy Group 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 |
| Environmental Protection Company | Refers to | Guangdong Yudean Environmental Protection Co., Ltd |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
II. Basic Information of the Company and Financial indexI.Company information
Stock abbreviation
| 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 Company Name in Chinese(If any) | 粤电力 | ||
| 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 Address | 510630 | ||
| Internet Web Site | http://www.ged.com.cn | ||
| ged@ged.com.cn | |||
Ⅱ.Contact person and contact manner
| Board secretary | Securities affairs Representative | |
| Name | Liu Wei | Qin Xiao |
| Contact address | 35/F, South Tower, Yudean Plaza, No.2 Tianhe Road East, Guangzhou,Guangdong Province | 36/F, South Tower, Yudean Plaza, No.2 Tianhe Road East, Guangzhou,Guangdong Province |
| Tel | (020)87570251 | (020)87570251 |
| Fax | (020)85138084 | (020)85138084 |
| liuw@ged.com.cn | qinxiao@ged.com.cn |
Ⅲ. Information disclosure and placed
| Newspapers selected by the Company for information disclosure | China Securities Daily, Securities Times and Hong Kong Commercial Daily(overseas newspaper for English version) |
| Internet website designated by CSRC for publishing the Annual report of the Company | http://www.cninfo.com.cn |
| The place where the Annual report is prepared and placed | Affair Dept. Of the Board of directors of the Company |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
Ⅳ.Changes i n Registration
Organization Code
| 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 InformationCPAs engaged
| Name of the CPAs | PWC Certified Public Accountants (special general partnership) |
| Office address | 11/F,PricewaterhouseCoopers Center,2 Corporate Avenue 202 Hu Bin Road, Huangpu District, Shanghai |
| Names of the Certified Public Accountants as the signatories | Wang Bin, Li Yanhua |
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 indexIndicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
| 2020 | 2019 | Changed over last year（％） | 2018 | |
| Operating income（RMB） | 28,329,065,391 | 29,360,155,150 | -3.51% | 27,408,514,178 |
| Net profit attributable to the shareholders of the listed company（RMB） | 1,746,280,132 | 1,146,767,033 | 52.28% | 474,461,997 |
| Net profit after deducting of non-recurring gain/loss attributable to the shareholders of listed company（RMB） | 1,530,448,193 | 1,069,396,196 | 43.11% | 412,062,957 |
| Cash flow generated by business operation, net（RMB） | 6,280,781,169 | 8,272,683,112 | -24.08% | 5,999,936,356 |
| Basic earning per share(RMB/Share) | 0.3326 | 0.2184 | 52.28% | 0.09 |
| Diluted gains per share(RMB/Share) | 0.3326 | 0.2184 | 52.28% | 0.09 |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
Net asset earning ratio（%）
| Net asset earning ratio（%） | 6.54% | 4.77% | 1.77% | 2.02% |
| End of 2020 | End of 2019 | Changed over last year（％） | End of 2018 | |
| Gross assets（RMB） | 85,970,818,168 | 75,472,027,123 | 13.91% | 73,329,662,306 |
| Net assets attributable to shareholders of the listed company（RMB） | 27,369,995,422 | 26,178,241,077 | 4.55% | 24,227,302,288 |
The lower one of net profit before and after deducting the non-recurring gains/losses in the last three fiscal yearsis negative, and the audit report of last year shows that the ability to continue operating is uncertain
□Yes √No
The lower one of net profit before and after deducting the non-recurring gains/loses is negative
□Yes √No
Ⅶ.The differences between domestic and international accounting standards1．Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosedin the financial reports of differences in net income and net assets.
√ Applicable □Not applicable
In RMB
| Net profit attributable to the shareholders of the listed company | Net Assets attributable to the shareholders of the listed company | |||
| Amount in the reporting period | Amount in the previous period | End of the reporting period | Beginning of the reporting period | |
| According to CAS | 1,746,280,132 | 1,146,767,033 | 27,369,995,422 | 26,178,241,077 |
| Items and amount adjusted according to IAS | ||||
| The difference arising from recognition of goodwill after merger of enterprises under the same control | -25,984,223 | 38,638,777 | 38,638,777 | |
| Difference arising from recognition of land use value after enterprise merger | -630,000 | -630,000 | 16,340,000 | 16,970,000 |
| Influence on minority interests | 54,120 | 54,120 | 4,918,459 | 4,864,339 |
| According to IAS | 1,745,704,252 | 1,120,206,930 | 27,429,892,658 | 26,238,714,193 |
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chineseaccounting standards.
□ Applicable √Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
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
(a)
| (a) | 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. | |
| (b) | Influence on minority interests |
| Housing reform loss occurred to the Company and some holding subsidiaries. Therefore, there’s some influence on minority interests. |
Ⅷ.Main Financial Index by Quarters
In RMB
| First quarter | Second quarter | Third quarter | Fourth quarter | |
| Operating income | 4,703,863,816 | 7,836,054,007 | 8,313,722,282 | 7,475,425,286 |
| Net profit attributable to the shareholders of the listed company | 7,373,105 | 806,311,390 | 755,703,910 | 176,891,727 |
| Net profit after deducting of non-recurring gain/loss attributable to the shareholders of listed company | -372,094 | 784,914,803 | 753,661,026 | -7,755,542 |
| Net Cash flow generated by business operation | 1,170,574,344 | 2,847,647,553 | 2,470,190,633 | -207,631,361 |
Whether significant variances exist between the above financial index or the index with its sum and the financialindex 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
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
Items
| Items | Amount (2020) | Amount (2019) | Amount (2018) | Notes |
| Non-current asset disposal gain/loss(including the write-off part for which assets impairment provision is made) | 340,976,361 | 20,503,424 | 1,572,097 | It was mainly because Yuejia received compensation of RMB 293.77 million for land recovery and RMB 51.03 million for disposal of fixed assets this year. |
| Government subsidy recognized in current gain and loss(excluding those closely related to the Company’s business and granted under the state’s policies) | 30,457,198 | 33,284,069 | 43,530,965 | Various government subsidies received by branch companies and subsidiaries. |
| Gain equal to the amount by which investment costs for the Company to acquire subsidiaries, associates and joint ventures are lower than the Company’s enjoyable fair value of identifiable net assets of investees when making investments | 9,784,791 | It was mainly due to the income generated by the acquisition of Huaguoquan Company and the acquisition of the environmental protection company by the fuel company. | ||
| Switch back of provision for depreciation of account receivable which was singly taken depreciation test. | 48,647,647 | |||
| According to tax, accounting and other laws, regulations, the requirements of the current Gain/loss for a one-time adjustment of the impact of the current Gain/loss; | -4,449,214 | -12,679,505 | ||
| Net amount of non-operating income and expense except the aforesaid items | 41,325,478 | 5,674,806 | 62,976,212 | It was mainly due to the asset scrapping loss of branch companies and subsidiaries. |
| Less: .Amount of influence of income tax | 106,618,392 | 26,385,663 | 25,191,469 | |
| Less: Amount of influence of minority interests | 100,093,497 | -95,768 | 7,809,260 | |
| Total | 215,831,939 | 77,370,837 | 62,399,040 | -- |
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 oninformation disclosure for Compaines Offering their Securities to the Public-Non-recurring Gains and Losses andits non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined asrecurring gains and losses, it is necessary to explain the reason.
√Applicable □ Not applicable
Items
| Items | Amount involved | Reason |
| Value-added tax will be refunded immediately | 9,240,948 | Comply with national policies and regulations, and continue to occur |
| Carbon emission quota used to fulfil the emission reduction obligation | -57,470,471 | Comply with national policies and regulations, and continue to occur |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
III. Outline of Company Business
Ⅰ.Main Business the Company is Engaged in During the Report PeriodThe Company shall comply with the disclosure requirements of Shenzhen Stock Exchange Industry InformationDisclosure Guidelines No.15-Listed Companies Engaged in Power-related BusinessThe Company mainly engages in the investment, construction and operation management of power projects, and theproduction 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 forelectricity, and benefiting the public” and adheres to the business policy of “Centering on the main business ofelectricity, with diversified development”, focusing on the main business of power and making the power structurego diversified. In addition to the development, construction and operation of large-scale coal-fired power plants, italso 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 the end of the reporting period,the company has controllable installed capacity of 23.273 million kilowatts, including holding installed capacityof 21.612 million kilowatts and equity participation installed capacity of 1.661 million kilowatts. Including: theholding installed capacity for coal-fired power generation of 17.15 million kilowatts; the holding installedcapacity for gas and electricity of 3.72 million kilowatts and renewable energy generation like wind power andhydropower of 742,000 kilowatts. Clean energy installation accounted for 20.65%.In addition, the company is entrustedwith managing the installed capacity of 13.286 million kilowatts .Income source is primarily contributed by power production and sales, and main business income is derived fromGuangdong Province. The company electricity sales price is subject to the benchmark price verified by the priceauthority per relevant policies based on National Development and Reform Commission (NDRC) and theelectricity transaction price through the market trade implementation per Guangdong Electricity Market TradeBasic Rules and supporting files. In the reporting period, the electricity sold is 69.859 billion kilowatt-hours,a decrease of 1.85% YOY; average price stated in the consolidated statements is 447.27 Yuan/ thousandskilowatt-hours(tax included ,the same below ), YOY drop of 16.22 Yuan/ thousands kilowatt-hours; the totaloperating income was RMB 28,329.0654 million, a decrease of RMB 1,031.0898 million or a decrease of 3.51%YOY.The company's business is dominated by thermal power generation, and the fuel costs account for a large portion ofoperating costs, thus the fluctuations in coal prices and gas prices have a significant impact on the company'soperating performance. During the reporting period, affected by the increase in power generation and the continuousincrease in coal prices, the company’s fuel costs were 15,978.6732 million yuan, which accounted for 71.10% ofthe main business costs; Affected by the fall in electricity and coal prices, a decrease of 1,624.1609 million yuan ora decrease of 9.23% over the same period of last year.During the reporting period, affected by the steady recovery of the macro economy, continuous stability of thecompany's power production, and the effective cost control, the Company's gross profit of power generation andnet profit attributable to its parent company increased significantly year-on-year. the Company achieved a net
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
profit of 1,746.2801 million yuan attributable to the parent company for the whole year, a YOY increase of 52.28%.Ⅱ.Major Changes in Main Assets
1.Major Changes in Main Assets
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 |
2. Main Conditions of Overseas Assets
□ Applicable √Not applicable
III.Analysis On core Competitiveness
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 morethan 85.9 billion. It is the largest listed company of power in Guangdong Province. By the end of 2020, Thecompany's controllable installed capacity and entrusted managed installed capacity totaled 36.216 millionkilowatts , accounting for 25% of the total installed capacity of Guangdong Province.
2. Strong background and resource advantages
As a provincial key energy enterprise, Guangdong Energy Group, the controlling shareholder of the company, hasbeen actively supporting the development and expansion of the company by taking advantage of its resources,technology and asset scale. As the only listed company and the main force of Guangdong's energy resources, thecompany has always been subordinated to serving the overall situation of the reform and development ofGuangdong Province and Guangdong Energy Group. It has deeply cultivated the main power industry, fullyplayed the value discovery function and resource allocation function of the capital market, and assisted the reformand development of Guangdong Province's energy resources.
3. Comprehensive advantages of main business
Guided by the national energy development strategy, the Company is preparing the "14th Five-Year Plan" incombination with its own condition, and will implement the "1+2+3+X" strategy in the future - to build afirst-class green and low-carbon power listed company, coordinate safety and development, optimize andstrengthen coal, gas and biomass power generation services, and vigorously develop new energy, energy storage,hydrogen energy and land park development. The Company has abundant project reserves and great developmentpotential. The Company has clear main business, reasonable structure, outstanding industrial position and marketshare, strong comprehensive strength and great development potential.
4. Competitive advantage in electricity market
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
The company's generator set has high parameters, large capacity, high operation efficiency, low coal consumption,stable operation, superior environmental protection performance and strong market competitive advantage. In2020, the company completed a total of 58.649 billion kilowatt-hours of electricity in the market, and the scale ofelectricity sales continued to rank first in the province, with electricity sales prices superior to the province'saverage. The company gives full play to its three advantages of scale, brand and service. With its marketingservice network all over the province and its technical accumulation and comprehensive resources in the powerindustry, the company provides auxiliary value-added services such as peak regulation, frequency modulation andbackup for the power grid, and provides high-quality value-added services such as comprehensive energy savingand power consumption consultation for users.
5. Advantage of financial resources
By the end of 2020, the company's total assets were 85.971 billion yuan, net assets were 35.743 billion yuan, netassets attributable to the parent were 27.370 billion yuan, and net profits attributable to the parent were 1.746billion yuan; Net cash inflow from operating activities was 6.281 billion yuan, net cash outflow from investmentactivities was 8.114 billion yuan, and net cash outflow from financing activities was 2.517 billion yuan. Thecompany has large assets, stable operating results, abundant cash flow and strong financial resources.
6. Regional development advantages
As the main energy source in Guangdong Province, the company shoulders the important task of helpingGuangdong Province to build a clean, low-carbon, safe and efficient modern energy system. The company willactively integrate into the construction of Guangdong-Hong Kong-Macao Greater Bay Area, Shenzhen's advanceddemonstration zone and the development of Guangdong's "one core, one belt and one area". Company willsteadily push forward the construction of key energy projects and the development of new energy resources in theprovince, actively seek to expand into regions with better resource conditions and higher power demand, andcontribute to the implementation of the "30.60" goal.
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
IV. Management’s Discussion and AnalysisⅠ.GeneralAt the beginning of 2020, affected by the COVID-19, the demand for industrial electricity in the whole societydeclined. However, with the solid advancement of work resumption, production resumption, business resumptionand market resumption, the electricity consumption of the whole society in Guangdong Province rose against thetrend after going through the bottom, reaching 692.612 billion kWh, with a year-on-year increase of 3.44%, andthe growth rate slowed down by 2.5 percentage points. In 2020, Guangdong received 205.7 billion kWh of XD,with a year-on-year increase of 1.76%, and the output of XD exceeded the planned transmission of 35.6 billionkWh; In terms of installed capacity, a total of 14.27 million kilowatts of nuclear power and thermal power unitswere newly put into operation in the province, and the newly added installed capacity under unifiedcommissioning accounts for 9.67% of the capacity under unified commissioning. Affected by the continuousincrease of power transmission from XD, the year-on-year increase of unit capacity in the province, and thesubstantial increase of renewable energy such as wind power in the province, the utilization hours of coal-firedunits in the province were 3,882 hours, the on-grid power of coal-fired units was 56.473 billion kWh, with ayear-on-year decrease of 3.76%, the on-grid power of air machines was 11.687 billion kWh, with a year-on-yearincrease of 2.71%, and the on-grid power of wind power was 1.279 billion kWh, with a year-on-year increase of
4.24%.
In 2020, the Company's market-oriented transaction scale expanded, and the discount rate increased. The averageon-grid price of consolidated statements was RMB 447.27/thousand kWh (including tax, the same below), downRMB 16.22/thousand kWh year-on-year, with a decrease of 3.50%. However, due to the year-on-year decline infuel prices, the dividends from the implementation of tax reduction and fee reduction policies, and the Company'seffective control over all costs and expenses, the profit of the Company's power generation business increasedsignificantly year on year.By the end of 2020, the company's consolidated statement had total assets of 85.971 billion yuan, with ayear-on-year increase of 13.91%; The equity attributable to the shareholders of the parent company was 27.370billion yuan, with a year-on-year increase of 4.55%. The company's consolidated operating income reached
28.329 billion yuan, with a year-on-year decrease of 3.51; Net profit attributable to shareholders of the parentcompany was 1.746billion yuan, with a year-on-year increase of 52.28; Earnings per share were 0.33yuan (0.22yuan in the same period last year). According to the consolidated statement, the company's liabilities totaled
50.227 billion yuan, with an asset-liability ratio of 58.42%.
In 2020, the Company resolutely implemented the requirements of supply-side structural reform in the powerindustry, adhered to the clean, low-carbon, safe and efficient energy development strategy, and continuouslyoptimized the power supply structure and asset structure. All offshore wind turbines in Wailuo, Zhanjiang wereofficially put into operation, and Units 1 and 2 (2 million kilowatts) of Bohe Project were officially put intooperation after 168-hour trial run. The gas and power projects in Huadu and Dongguan Ningzhou were acceleratedand the power supply structure was continuously optimized. By the end of 2020, the Company had controllableinstalled capacity of 23.273 million kilowatts, with a year-on-year increase of 10.80%, of which the proportion ofclean energy increased to 20.65%. In the future, the Company will also adhere to the new development concept,
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
continue to promote the optimization and adjustment of power supply structure, actively integrate into theconstruction of Guangdong-Hong Kong-Macao Greater Bay Area and Shenzhen pioneering demonstration zonesand the development of Guangdong's "One Core, One Belt and One Area", actively respond to the "30?60" goal ofcarbon peaking and carbon neutrality in China, and vigorously promote the Company's clean and low-carbontransformation for energy.In 2020, the company implemented the Guidelines for the Governance of Listed Companies and the relatedrequirement of the CSRC on improving the quality of listed companies, earnestly implemented prudentmanagement, abode by laws and regulations, emphasize its core business, respected investors, continuouslyimproved the level of corporate governance and enhanced the development quality of listed companies. The boardof directors organized 9 on-site meetings and 3 communication meetings, and completed the examination andapproval of 55 proposals by the board of directors. The topics covered include regular reports, internal controlevaluation, comprehensive risk management, profit distribution plan, major investment and financing, majorrelated transactions, and important personnel appointment and removal. All proposals were adopted andeffectively implemented. The board of directors also convened 4 shareholders' meetings, and all 17 proposalssubmitted to the shareholders' meeting for deliberation were adopted and effectively implemented. The companysuccessfully completed the preparation and disclosure of periodic reports and temporary announcements, andissued 107 announcements throughout the year. The information disclosure has been evaluated as "A" byShenzhen Stock Exchange for Seven consecutive years.The Company shall comply with the disclosure requirements of Shenzhen Stock Exchange Industry InformationDisclosure Guidelines No.15-Listed Companies Engaged in Power-related BusinessIn 2020, the scale of market-oriented transactions in Guangdong Province continued to expand, and the annualtransaction and monthly centralized competitive transaction reached 248.85 billion kWh, with a year-on-yearincrease of 27.60%, and the average transaction price difference was RMB -0.04543/kWh. Including, the annualtrading power of 216.208 billion kWh, and the average transaction price difference of RMB -0.04712/kWh; Theaccumulated monthly centralized bidding power was 32.645 billion kWh, and the average transaction pricedifference was RMB -0.03423/kWh. In 2020, the Company's on-grid electricity was 69.859 billion kWh, of whichthe total market trading electricity was 58.649 billion kWh, accounting for 83.95%, with a year-on-year increaseof 23.557 billion kWh.In 2020, the electricity trading scale in Guangdong market was 248.85 billion kWh, accounting for 76.27% of theprovince's thermal power generation of 326.263 billion kWh. In 2021, the total transaction scale of Guangdongpower market is expected to reach 270 billion kWh, and the proportion of electricity in the Company's market isexpected to further increase from 80% in 2020.Main Production and Operation Information
Items
| Items | This reporting period | Same period last year |
| Total installed capacity ('0,000 kW) | 2,327.29 | 2,103.5 |
| Installed capacity of units that are newly put into production ('0,000 kW) | 220.4 | 46 |
| Planned installed capacity of approved projects ('0,000 kW) | 706.1 | 468 |
| Planned installed capacity of projects under construction ('0,000 kW) | 566.1 | 468 |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
Power generation ('00,000,000 kWh)
| Power generation ('00,000,000 kWh) | 737.51 | 752.83 |
| On-grid electricity or electricity sales ('00,000,000 kWh) | 698.59 | 711.75 |
| Average on-grid price or selling price (RMB/ kWh, including tax) | 0.447 | 0.463 |
| Average power consumption rate of power plant (%) | 5.43% | 5.59% |
| Power plant utilization hours (h) | 3,712 | 3,811 |
（1）Operation Information of thermal power in Guangdong Province
| Items | This reporting period | Same period last year |
| Total installed capacity ('0,000 kW) | 2,249.58 | 2,046.58 |
| Installed capacity of units that are newly put into production ('0,000 kW) | 200 | 46 |
| Planned installed capacity of approved projects ('0,000 kW) | 435.5 | 338 |
| Planned installed capacity of projects under construction ('0,000 kW) | 435.5 | 338 |
| Power generation ('00,000,000 kWh) | 719.92 | 741.25 |
| On-grid electricity or electricity sales ('00,000,000 kWh) | 681.60 | 700.58 |
| Average on-grid price or selling price (RMB/ kWh, including tax) | 0.442 | 0.460 |
| Average power consumption rate of power plant (%) | 5.32 | 5.62 |
| Power plant utilization hours (h) | 3749 | 3903 |
（2）Operation Information of wind power in Guangdong Province
| Items | This reporting period | Same period last year |
| Total installed capacity ('0,000 kW) | 64.11 | 43.32 |
| Installed capacity of units that are newly put into production ('0,000 kW) | 20.4 | 0 |
| Planned installed capacity of approved projects ('0,000 kW) | 270.6 | 130 |
| Planned installed capacity of projects under construction ('0,000 kW) | 130.6 | 130 |
| Power generation ('00,000,000 kWh) | 12.79 | 7.56 |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
On-grid electricity or electricity sales('00,000,000 kWh)
| On-grid electricity or electricity sales ('00,000,000 kWh) | 12.27 | 7.22 |
| Average on-grid price or selling price (RMB/ kWh, including tax) | 0.657 | 0.566 |
| Average power consumption rate of power plant (%) | 4.33 | 4.77 |
| Power plant utilization hours (h) | 2033 | 2021 |
（3）Operation Information of water power in Yunnan Province
| Items | This reporting period | Same period last year |
| Total installed capacity ('0,000 kW) | 13.60 | 13.60 |
| Installed capacity of units that are newly put into production ('0,000 kW) | 0 | 0 |
| Planned installed capacity of approved projects ('0,000 kW) | 0 | 0 |
| Planned installed capacity of projects under construction ('0,000 kW) | 0 | 0 |
| Power generation ('00,000,000 kWh) | 4.80 | 4.02 |
| On-grid electricity or electricity sales ('00,000,000 kWh) | 4.72 | 3.95 |
| Average on-grid price or selling price (RMB/ kWh, including tax) | 0.169 | 0.168 |
| Average power consumption rate of power plant (%) | 1.81 | 1.79 |
| Power plant utilization hours (h) | 3617 | 3030 |
Electricity sales of the Company
√ Applicable □Not applicable
Established in July 2015, Guangdong Yudean Electric Power Marketing Co., Ltd., a wholly-owned company ofthe Company, is one of the first power sales companies with market access, with a number of "SD01". Based onthe business of purchasing and selling electricity and focusing on improving the efficiency of electricityconsumption, Yudean Electric Power Marketing provides customers with demand response strategy, energysaving transformation, energy consumption strategy consultation, contract energy management, electric energystorage and other services, and carries out comprehensive energy service projects (smart energy management,carbon asset management, energy trusteeship, energy audit) in vertical (industry) fields, large group enterprisesand large parks (etc.).In 2020, the electricity consumption of the agent users of Yudean Electric Power Marketing was 49.244 billionkWh, with a year-on-year increase of 37.72%. Among them, the agent power of Company’s holding subsidiary is
30.342 billion kwh, accounting for 43.43% of the company's on-grid power.
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
Reasons for significant changes in relevant data
√ Applicable□ Not applicable
In 2020, the electricity consumption of the agent users of Yudean Electric Power Marketing increased by 37.72%year on year, mainly due to the further expansion of the transaction scale of Guangdong power market in 2020 andthe synchronous growth of the electricity consumption of the agent users.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
| 2020 | 2019 | Increase /decrease | |||
| Amount | Proportion | Amount | Proportion | ||
| Total operating revenue | 28,329,065,391 | 100% | 29,360,155,150 | 100% | -3.51% |
| On Industry | |||||
| Electric power , Steam sales and labor income | 27,882,220,303 | 98.42% | 29,018,275,346 | 98.84% | -3.91% |
| Other | 446,845,088 | 1.58% | 341,879,804 | 1.16% | 30.70% |
| On products | |||||
| Sales Electric Power | 27,651,253,496 | 97.61% | 28,811,365,634 | 98.13% | -4.03% |
| Labor income | 102,026,259 | 0.36% | 69,773,643 | 0.24% | 46.22% |
| Steam income | 128,940,548 | 0.46% | 137,136,069 | 0.47% | -5.98% |
| Comprehensive utilization of fly ash | 363,312,318 | 1.28% | 270,692,961 | 0.92% | 34.22% |
| Sales material income | 2,283,546 | 0.01% | 2,246,472 | 0.01% | 1.65% |
| Lease revenue | 26,513,095 | 0.09% | 25,092,388 | 0.08% | 5.66% |
| Other | 54,736,129 | 0.19% | 43,847,983 | 0.15% | 24.83% |
| Area | |||||
| Guangdong | 28,256,809,636 | 99.74% | 29,299,674,022 | 99.79% | -3.56% |
| Yunnan | 72,255,755 | 0.26% | 60,481,128 | 0.21% | 19.47% |
(2)Situation of Industry, Product and District Occupying the Company’s Business Income and Operating Profitwith Profit over 10%
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
√ Applicable □Not applicable
The Company shall comply with the disclosure requirements of Shenzhen Stock Exchange Industry InformationDisclosure Guidelines No.15-Listed Companies Engaged in Power-related Business
In RMB
| Turnover | Operation cost | Gross profit rate(%) | Increase/decrease of revenue in the same period of the previous year(%) | Increase/decrease of business cost over the same period of previous year (%) | Increase/decrease of gross profit rate over the same period of the previous year (%) | |
| On Industry | ||||||
| Sales Electric Power | 27,651,253,496 | 22,282,338,006 | 19.42% | -4.03% | -8.32% | 3.77% |
| Area | ||||||
| Guangdong | 28,256,809,636 | 22,410,370,492 | 20.69% | -3.56% | -8.23% | 4.04% |
Reasons for great changes in related financial indicators
□ Applicable √Not applicable
(3)Whether the Company’s Physical Sales Income Exceeded Service Income
√ Yes □ No
| Classification | Items | Unit | 2020 | 2019 | Changes |
| Electric power, thermal production and supply | Sales volume | Billion kwh | 698.59 | 711.75 | -1.85% |
| Production | Billion kwh | 737.51 | 752.83 | -2.03% |
Explanation for a year-on –year change of over 30%
□ Applicable √Not applicable
(4)Degree of Performance of the Significant Sales Contract Signed up to this Report Period
√ Applicable □Not applicable
In the reporting period, China Southern Power Grid was our No.1 client, Its sales of 27.651 billion yuantaking up approximately 97.61% of annual sales. Company and company’s holding subsidiaries had signed aPower Purchase Agreement with China Southern Power Grid and its holding subsidiaries in accordance to relatedprovisions. By the end of the reporting period, the agreement had been executed rightfully.
(5)Component of business cost
Industry classification
In RMB
| Industry | Items | 2020 | 2019 | Increase/Decrease |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
Amount
| Amount | Proportion in the operating costs (%) | Amount | Proportion in the operating costs (%) | |||
| Electric power, thermal production and supply | Fuel cost | 15,978,673,234 | 71.10% | 17,602,834,155 | 71.90% | -9.23% |
| Electric power, thermal production and supply | Depreciation expense | 3,298,603,378 | 14.68% | 3,676,925,686 | 15.02% | -10.29% |
| Electric power, thermal production and supply | Labor cost | 1,301,310,447 | 5.79% | 1,445,633,763 | 5.91% | -9.98% |
| Electric power, thermal production and supply | Other | 1,893,689,442 | 8.43% | 1,755,310,268 | 7.17% | 7.88% |
Note
The Company is in power sector and mainly engaged in power generation at present. The cost is composed offuel cost, depreciation expenses, labour cost and other expenses. Fuel cost accounts for about 71.10% of total cost.Mainly affected by the fall of fuel prices, the fuel cost decreased year on year. Due to accelerated depreciationcaused by the decommissioning of Sha Jiao A unit, full depreciation of Huizhou natural gas phase I and 1#Generator Unit of Guangqian company in 2019, and the production of Huizhou Natural Gas Phase II, Qujie WindPower and Leizhou Wind Power, In 2020,the depreciation expenses decreased by 10.29% year on year.
(6)Whether Changes Occurred in Consolidation Scope in the Report Period
√Yes □No
| Name | Business place | Registered address | Nature | Registered capital | Proportion (%) | Acquired |
| Guangdong Yudean Dayawan Comprehensive Energy Co., Ltd. | Huizhou,Guangdong | Huizhou,Guangdong | Electric Power | 22,000,000 | 80 % | Invested |
| Guangdong Yudean Qiming Energy Co., Ltd. | Shenzhen, Guangdong | Shenzhen, Guangdong | Electric Power | 20,000,000 | 100 % | Invested |
| Shenzhen Huaguoquan Electric Service Co., Ltd. | Shenzhen, Guangdong | Shenzhen, Guangdong | Rent | 2,650,000 | 100 % | Merger of non-identical enterprises |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
Shaoguan NanxiongYuefeng New EnergyCo., Ltd.
| Shaoguan Nanxiong Yuefeng New Energy Co., Ltd. | Shaoguan, Guangdong | Shaoguan, Guangdong | Electric Power | 5,000,000 | 100 % | Invested |
(7)Relevant Situation of Significant Changes or Adjustment of the Business, Product or Service in the Company’sReport Period
□ Applicable √Not applicable
(8)Situation of Main Customers and Main Supplier
Information of the Company’s top 5 sales customers
| Total sales amount to top 5 customers (RMB) | 28,172,626,485 |
| Proportion of sales to top 5 customers in the annual sales(%) | 99.45% |
| Proportion of the sales volume to the top five customers in the total sales to the related parties in the year | 1.41% |
Information of the Company’s top 5 customers
| No | Name | Amount（RMB） | Proportion |
| 1 | GPGC | 27,651,253,496 | 97.61% |
| 2 | Guangdong Energy Group Co., Ltd. | 399,973,128 | 1.41% |
| 3 | Huizhou Yuxin Chemical Co., Ltd. | 50,330,006 | 0.18% |
| 4 | Huizhou Huiling Chemical Co., Ltd. | 44,709,815 | 0.16% |
| 5 | Huizhou Dayawan Petrochemical Power Thermal Co., Ltd. | 26,360,040 | 0.09% |
| Total | -- | 28,172,626,485 | 99.45% |
Other explanation :
√Applicable □Not applicable
Guangdong Energy Group Co., Ltd is the controlling shareholder of the Company, which is a connectedrelationship with the Company.Principal suppliers
| Total purchase of top 5 Suppliers（RMB） | 21,078,521,309 |
| Percentage of total purchase of top 5 suppliers In total annual purchase(%) | 77.13% |
| Proportion of purchase amount from the top 5 suppliers in the total purchase amount from the related parties in the year | 49.92% |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
Information about the top 5 suppliers
No
| No | Name | Amount（RMB） | Proportion |
| 1 | Guangdong Energy Group Co., Ltd. | 13,451,651,893 | 46.46% |
| 2 | China Energy Engineering Group Guangdong Electric Power Design Institute Co., Ltd. | 3,970,242,390 | 14.53% |
| 3 | Guangdong Dapeng ING Co., Ltd | 1,884,561,252 | 6.51% |
| 4 | Guangdong Zhujiang Investment Electric Fuel Co., Ltd. | 934,683,800 | 3.23% |
| 5 | China Energy Construction Group, Guangdong Thermal Power Engineering Co., Ltd. | 765,296,478 | 2.64% |
| Total | -- | 17,555,549,430 | 60.63% |
Other explanation :
√ Applicable □Not applicable
Guangdong Energy Group Co., Ltd is the controlling shareholder of the Company, which is a connectedrelationship with the Company.
3.Expenses
In RMB
| 2020 | 2019 | Increase/Decrease(%) | Notes | |
| Sale expenses | 49,214,514 | 43,788,762 | 12.39% | Mainly due to the company's added full-time sales staff and increased business costs caused by the deepening of electricity market. |
| Administration expenses | 835,927,395 | 874,640,868 | -4.43% | |
| Financial expenses | 1,108,522,064 | 1,230,315,841 | -9.90% | |
| R & Development expenses | 274,579,716 | 9,703,602 | 2,729.67% | It is mainly caused by the increase of R&D investment and improvement of R&D cost collection management of the company and its subordinate units. |
4.R& D Expenses
√ Applicable □Not applicable
| No | Project company name | Main Project name | Project progress | Target and influence |
| 1 | Guangdong | Research on | Completed | Judge the explosion probability of coal pulverizing system by |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
Red BayPowerGenerationCo., Ltd.
| Red Bay Power Generation Co., Ltd. | explosion-proof technology and engineering demonstration of direct-blown coal pulverizing system based on the need of increasing high volatile coal blending | operating conditions, study the operation control technology of steam inerting system, and develop the automatic operation control system, including the operation control strategy of steam inerting system under the working conditions of starting and stopping grinding, coal feeder cut-off, abnormal increase of outlet temperature of coal mill, spontaneous combustion of powder pipe, etc. Research on the control technology of coal mill operation parameters after installing steam inerting system, including the high and low limits of safe coal mill outlet temperature control, optimization of air-coal ratio of coal mill, etc., to prevent powder accumulation in powder pipe and spontaneous combustion of pulverized coal. The above research and renovation can effectively prevent the deflagration of the pulverizing system and improve the safety of the coal pulverizing system. | ||
| 2 | Guangdong Red Bay Power Generation Co., Ltd. | Application and research of advanced control technology based on predictive control theory in coordinated control system of large thermal power generating units | Completed | There are some difficult problems in No.3 unit of our factory, such as poor load regulation performance, poor operation stability, large fluctuation of main steam temperature and reheat steam temperature under variable load conditions, and deviation of main steam pressure up to 1MPa-1.8MPa, which sometimes leads to more AGC assessment of units. No. 3 unit cannot meet the requirements of two detailed rules: Implementation Rules for Grid-connected Operation Management of Southern Power Plants (2017 Edition) and Implementation Rules for Auxiliary Service Management of Southern Power Plants (2017 Edition). After the implementation of advanced control system, the performance index of the units has been improved obviously, and it has strong competitiveness in the secondary modulation market |
| 3 | Guangdong Yudean Jinghai Power Generation Co., Ltd. | Research on AGC control optimization of Jinghai Power Generation Company based on auxiliary modulation market of Southern Power Grid | Completed | On the premise of meeting the assessment indexes of "Two Rules" in 2017 edition, improve the response characteristics of the unit and the comprehensive modulation performance index K of the unit under the modulation auxiliary market environment. |
| 4 | Guangdong Yudean Jinghai Power Generation Co., Ltd. | Development of frequency converter decoupling control technology for condensate pump of MW units in Jinghai Power Generation | Completed | Improve the safety and stability of the frequency converter, and reduce the equipment fault caused by auxiliary equipment failure. |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
Company
Company
| 5 | Guangdong Energy Maoming Thermal Power Plant Co., Ltd | Research and application of vacuum system and high capacity heating technology of unit | Completed | 1. Renovation of vacuum system: improve vacuum degree of condenser by using the characteristics of low limit pressure and strong suction capacity of Roots water ring vacuum pump unit. Meanwhile, using the energy saving advantage that the energy consumption of Roots water ring vacuum pump unit is only 35% of that of water ring vacuum pump unit under the same pumping condition, the auxiliary power is greatly saved by using Roots vacuum pump unit instead of water ring vacuum pump, thus achieving the purpose of energy saving. 2. High-capacity heating technology research and application research: Low-pressure heating is changed into direct desuperheating and decompression heating with main steam under low load conditions, specifically, a desuperheating and decompression device is installed in front of the mixer to supply heat to the outside in parallel with the existing mixer. Medium-pressure heating is changed to direct desuperheating and decompression of main steam under low load condition, specifically, a desuperheating and decompression device is installed in front of the mixer to supply heat to the outside in parallel with the existing mixer. The heating pipes after temperature and pressure reduction can still be the existing heating pipes. After the implementation of the scheme, the heating capacity is not affected by electric load, and the flexibility, reliability and safety of heating are greatly improved. |
| 6 | Shajiao A Power Plant | Research and application of shore power system technology for Shajiao A Power Plant Wharf | In process | After research, formulate the construction plan, which meets the requirements of Guangdong Energy Group Wharf Shore Power Reconstruction Plan, Review Opinions on Research Report of Feasibility Study Project of Shore Power Construction Planning of Guangdong Energy Group Wharf and Dongguan Port and Shipping Bureau, build the ship shore power system and put it into use. |
| 7 | Shajiao A Power Plant | Research on raising reheat steam temperature of 300MW unit under low nitrogen combustion condition | In process | The reheat steam temperature of 300MW unit boiler increases by about 8-15°C, and the corresponding coal consumption for power supply decreases by 0.4-0.8 g/kwh; Combustibles in fly ash are reduced by 1%-2%, and the corresponding coal consumption for power supply is reduced by 0.3-0.6g/kwh; With an annual power generation of 1.2 billion kWh of a 300MW unit, it can save about 1200t of standard coal annually, and the unit price of standard coal is calculated as RMB 700/t, so the annual economic benefit is about RMB 840,000. After optimization and adjustment, the concentration of NOx and SO2 is reduced by about 10%, which can save the cost of denitration and desulfurization by about RMB 600,000 per year, and reduce the emission of pollutants and the impact on the environment. |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
| 8 | Guangdong Huizhou Pinghai Power Generation Plant Co., Ltd. | Development and application of network security reinforcement technology for distributed control system (DCS) of 1000MW units | Completed | Combined with the characteristics of OVATION system, establish an industrial firewall in DCS system to block the safety; Realize the deep protection of the system from the host to the system boundary; Adopt domestic independent design for safety equipment and establish "white environment" system. |
| 9 | Zhanjiang Zhongyue Energy Co., Ltd. |
| In process | By integrating the production management system and the personnel management system, reduce the repetitive work of each management system, make the personnel management orderly and improve the management level; Through the real-time monitoring and recording of the activity route of the factory personnel, realize the effective management and control of the factory personnel, and improve the Company's security management level; Effectively control the access of important prevention and control areas, improve the level of work safety, and reduce the overall probability of personal casualty accidents. | |||
| 10 | Zhanjiang Zhongyue Energy Co., Ltd. | Research and application of intelligent patrol inspection for coal transportation trestle | In process | Realize all-line, omni-directional and fully autonomous intelligent inspection management of coal transportation trestle, realize unmanned inspection and visual management of production site, improve the safety of coal transportation system operation, and avoid all safety accidents and losses caused by incomplete and unquantified manual inspection and strong dependence on personnel quality. The intelligent operation and maintenance mode of production site based on robot can effectively promote the intelligent management and operation of power plants. |
| 11 | Guangdong Dapu Power Generation Co., Ltd. | Research and application of wastewater recycling and zero emission process in power plant | In process | Achieve zero discharge of wastewater and save water resources. |
| 12 | Shenzhen Guangqian Electric Power Co., Ltd. | Improvement research and application of compressor rotor of M701F3 heavy-duty gas turbine | Completed | Ensure the safe and reliable operation of the unit and fundamentally improve its corrosion resistance; Upgrade the size of the screw thread of the pull rod bolt and reduce the stress of the key parts; Perform sand blasting on the threaded part of the pull rod bolt to improve its strength. |
| 13 | Shenzhen Guangqian Electric Power Co., Ltd. | Research and application of on-line monitoring of denitration CEMS and ammonia escape system for waste heat | Completed | A denitration CEMS monitoring and operating room with containers as carriers is built, which is conducive to the maintenance of daily work, facilitates the maintenance and overhaul of existing heat tracing pipelines and instruments, and conforms to relevant environmental protection specifications. |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
boiler of gas-steamcombined cycle unit
| boiler of gas-steam combined cycle unit | ||||
| 14 | Guangdong Huizhou Natural Gas Power Generation Co., Ltd. | Structural strength analysis and life evaluation of key components of M701F gas turbine compressor circumferential tie rod rotor | Completed | Achieve structural strength analysis and life assessment of key components of M701F gas turbine compressor circumferential tie rod rotor. |
| 15 | Guangdong Shaoguan Yuejiang Power Generation Co., Ltd. | Research and application of vortex steam seal technology for high and medium pressure bridge of steam turbine | Completed | Renovate and replace the steam seal at the bridge part of No.11 steam turbine to effectively reduce the bridge leakage and improve the unit economy. |
| 16 | Guangdong Yudean Zhanjiang Wind Power Generation Co., Ltd. | Phase II Development and Implementation Contract of Zhanjiang Wind Power Integrated Management System (TIMSS) | Completed | The implementation of TIMSS includes: home page, procurement management, inventory management, maintenance management, safety management, operation management, asset ledger, administration management and supplier management function modules, which are combined with mobile office to further improve office work efficiency. |
| 17 | Zhanjiang Electric Power Co., Ltd. | Research and application of steam turbine cold end state performance and operation optimization technology | In process | Realize the on-line monitoring and diagnosis of the performance of the cold end system of steam turbine and the application of the operation optimization device, monitor the working state of the cold end system of steam turbine on line, optimize the operation modes such as circulating water pump, inlet and outlet water gate of condenser circulating water, condenser cleanliness, etc., and optimize the equipment maintenance plan according to the deterioration of parameters. After the on-line monitoring, diagnosis and operation optimization devices for the cold end performance of steam turbine are applied, the coal consumption of power supply of the unit can be effectively reduced by more than 0.5g/kWh. |
| 18 | Guangdong Yudean Qujie Wind Power Generation Co., Ltd. | Science and technology service of wind farm intelligent O&M system based on SCADA data analysis in Qujie Wind Farm | Completed | Perform intelligent management and evaluation of fan efficiency, intelligent fault pre-diagnosis of key subsystems of fan and early intervention to realize health management. |
| 19 | Guangdong Wind Power Generation | Research and application of centralized control | In process | It has realized the comprehensive real-time monitoring of wind farms, fully grasped the working status, equipment safety and production of wind farm equipment by plates, and possessed the |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
Co., Ltd.
| Co., Ltd. | management platform and early warning model for intelligent wind farm | basic conditions for preventive maintenance through the establishment of early warning model. | ||
| 20 | Guangdong Yudean Yangjiang Offshore Wind Power Co., Ltd. | Research on key application technologies of intensive offshore wind power flexible DC delivery system | In process | Perform research on key application technologies of intensive offshore wind power flexible DC transmission system, based on the purpose of optimizing the overall project investment, put forward a topology scheme suitable for offshore wind power flexible DC transmission system in deep sea and far sea, and verify the scheme by PSCAD simulation platform. Based on the topology scheme of the system, aiming at the characteristics of high coupling of the system, study the resonance of the system, and put forward the corresponding resonance suppression measures. |
Situation of Research and Development Input by the Company
| 2020 | 2019 | Increase/Decrease(%) | |
| Number of Research and Development persons (persons) | 799 | 357 | 123.81% |
| Proportion of Research and Development persons | 10.79% | 4.83% | 5.96% |
| Amount of Research and Development Investment ( Yuan) | 299,498,628 | 31,216,857 | 859.41% |
| Proportion of Research and Development Investment of Operation Revenue | 1.06% | 0.11% | 0.95% |
| Amount of Research and Development Investment Capitalization ( Yuan) | 24,918,912 | 21,513,254 | 15.83% |
| Proportion of Capitalization Research and Development Investment of Research and Development Investment | 8.32% | 68.92% | -60.60% |
The Reason of the Prominent Change in Total Amount of Research and Development Input Occupying theBusiness Income Year on Year
√Applicable □ Not applicable
In 2020, the company and its subordinate units actively carried out independent R&D, therefore the number ofR&D projects and the R&D investment increased significantly. At the same time, the company improved thecollection management of R&D expenses, and the amount of R&D investment increased significantly by 859.41%year on year.Explanation of the Reason for Substantial Changes in the Research and Development Input’s Capitalization Rateand Its Reasonableness
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
√Applicable □ Not applicable
In 2020, the company and its subordinate units actively carried out independent R&D, the number of R&Dprojects and the R&D investment increased significantly. At the same time, the company improved the collectionmanagement of R&D expenses. Therefore, the capitalization rate of R&D investment decreased from 68.92% to
8.32% when the capitalization amount of R&D investment increased steadily by 15.83% and increasedsignificantly by 859.41% year on year.
5.Cash Flow
In RMB
Items
| Items | 2020 | 2019 | Increase/Decrease(%) |
| Subtotal of cash inflow received from operation activities | 31,137,993,363 | 33,659,185,010 | -7.49% |
| Subtotal of cash outflow received from operation activities | 24,857,212,194 | 25,386,501,898 | -2.08% |
| Net cash flow arising from operating activities | 6,280,781,169 | 8,272,683,112 | -24.08% |
| Subtotal of cash inflow received from investing activities | 843,016,762 | 360,804,825 | 133.65% |
| Subtotal of cash outflow for investment activities | 8,957,199,800 | 5,146,772,301 | 74.04% |
| Net cash flow arising from investment activities | -8,114,183,038 | -4,785,967,476 | 69.54% |
| Subtotal cash inflow received from financing activities | 25,044,386,337 | 15,153,940,487 | 65.27% |
| Subtotal cash outflow for financing activities | 22,527,006,534 | 19,131,397,299 | 17.75% |
| Net cash flow arising from financing activities | 2,517,379,803 | -3,977,456,812 | 163.29% |
| Net increase in cash and cash equivalents | 683,977,907 | -490,740,923 | 239.38% |
Notes to the year-on-year change of the relevant data
√Applicable □ Not applicable
(1) Cash inflow from investment activities increased by 133.65%, mainly due to the liquidation and disposal ofassets by Yuejia this year.
(2) Cash outflow from investment activities increased by 74.04%, mainly due to the year-on-year increase offixed assets and intangible assets purchased by provincial wind power and marina bay company.
(3) The net cash flow from investment activities increased by 69.54%, mainly due to the increase of cash outflowfrom investment activities.
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
(4) The cash inflow from fund-raising activities increased by 65.27%, mainly due to the issuance of 1.5 billioncorporate bonds this year, which resulted in more cash received for borrowing.
(5) The net cash flow from fund-raising activities increased by 163.29%, mainly due to the increased impact ofcash inflow from fund-raising activities.
(6) The net increase of cash and cash equivalents increased by 239.38%, mainly due to the large cash inflowfrom fund-raising activities this year.Notes to the big difference between cash flow from operating activities and net profit in the reporting year
□Applicable √Not applicable
Ⅲ.Analysis of Non-core Business
□Applicable √Not applicable
Ⅳ.Condition of Asset and Liabilities
1.Condition of Asset Causing Significant Change
Indicate whether the Company has adopted the new accounting standards governing revenue and leases since2020 and restated the beginning amounts of relevant financial statement line items in the year.Applicable.
In RMB
| End of 2020 | End of 2019 | Proportion increase/decrease | Notes to the significant change | |||
| Amount | Proportion in the total assets(%) | Amount | Proportion in the total assets(%) | |||
| Monetary fund | 5,790,946,117 | 6.74% | 5,081,641,969 | 6.73% | 0.01% | |
| Accounts receivable | 4,332,149,033 | 5.04% | 3,197,690,464 | 4.24% | 0.80% | |
| Inventories | 1,589,882,029 | 1.85% | 1,817,059,269 | 2.41% | -0.56% | |
| Investment real estate | 49,732,668 | 0.06% | 52,093,631 | 0.07% | -0.01% | |
| Long-term equity investment | 6,687,257,614 | 7.78% | 6,455,784,562 | 8.55% | -0.77% | |
| Fixed assets | 47,195,233,079 | 54.90% | 38,555,718,718 | 51.09% | 3.81% | |
| Construction in process | 9,153,637,100 | 10.65% | 10,882,003,846 | 14.42% | -3.77% | |
| Short-term loans | 7,622,427,916 | 8.87% | 5,904,132,791 | 7.82% | 1.05% | |
| Long-term loans | 18,998,555,568 | 22.10% | 16,587,103,380 | 21.98% | 0.12% | |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
2.Asset and Liabilities Measured by Fair Value
√ Applicable □Not applicable
In RMB
Items
| Items | Amount at year beginning | Gain/loss on fair value change in the reporting period | Cumulative fair value change recorded into equity | Impairment provisions in the reporting period | Purchased amount in the reporting period | Sold amount in the reporting period | Other changes | Amount at year end |
| Financial assets | ||||||||
| 4.Other equity instrument Investment | 3,142,371,373 | 335,980,082 | 2,538,725,399 | 69,736,560 | 3,548,088,015 | |||
| Available-for-sale financial assets | 3,142,371,373 | 335,980,082 | 2,538,725,399 | 69,736,560 | 3,548,088,015 | |||
| Total | 3,142,371,373 | 335,980,082 | 2,538,725,399 | 69,736,560 | 3,548,088,015 | |||
| Financial Liability | 0 | 0 | ||||||
Content of other changesDid 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, 2020, the power charge rights of several power generation subsidiaries, were pledged to thebank to obtain long-term loans of 4,193,207,913 yuan, of which: the balance of long-term loans due within oneyear was 298,558,767 (as of December 31, 2019: 4,231,292,593 yuan, were pledged to the bank to obtainlong-term loans of240,907,909 yuan). The borrowings are detailed as follows:
1.As at December 31, 2020, the long-term pledge borrowings of the following subsidiaries were based on theirpower fee charging rights and accounts receivable as pledges:
In RMB
| Name | December 31,2020 | December 31,2019 |
| Guangdong Shaoguan Yuejiang Power Generation Co., Ltd. | 1,840,351,082 | 1,976,685,804 |
| Guangdong Yudean Leizhou Power Generation Co., Ltd. | 224,052,692 | 232,038,267 |
| Guangdong Yudean Qujie Wind Power | 1,310,860,000 | 1,155,920,000 |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
Generation Co., Ltd.
| Generation Co., Ltd. | ||
| Guangdong Yudean Zhanjiang Wind Power Generation Co., Ltd. | 98,565,000 | 121,425,000 |
| Lincang Yudean Energy Co., Ltd. | 661,000,000 | 676,000,000 |
| Guangdong Yudean Xuwen Wind Power Generation Co., Ltd. | 58,379,139 | 69,223,522 |
| Total | 4,193,207,913 | 4,231,292,593 |
In RMB
| Name | December 31,2020 | December 31,2019 |
| Guangdong Shaoguan Yuejiang Power Generation Co., Ltd. | 193,721,167 | 188,255,791 |
| Guangdong Yudean Zhanjiang Wind Power Generation Co., Ltd. | 28,200,000 | 22,860,000 |
| Lincang Yudean Energy Co., Ltd. | 20,000,000 | 15,000,000 |
| Guangdong Yudean Xuwen Wind Power Generation Co., Ltd. | 6,366,219 | 6,806,543 |
| Guangdong Yudean Leizhou Power Generation Co., Ltd. | 7,985,575 | 7,985,575 |
| Guangdong Yudean Qujie Wind Power Generation Co., Ltd. | 42,285,806 | - |
| Total | 298,558,767 | 240,907,909 |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
V.Investment situation
1. General
√ Applicable □ Not applicable
Investment Amount in 2020(RMB)
| Investment Amount in 2020(RMB) | Investment Amount in 2019(RMB) | Change rate |
| 2,337,157,612 | 2,084,276,740 | 12.13% |
2.Condition of Acquiring Significant Share Right Investment during the Report Period
√ Applicable □ Not applicable
In RMB
| Name of the Company Invested | Main Business | Investment Way | Investment Amount | Share Proportion % | Capital Source | Partner | Investment Horizon | Product Type | Progress up to Balance Sheet Date | Revenue projection | Gain or Less or the Current Investment | Whether to Involve in Lawsuit | Date of Disclosure(If any) | Disclosure Index |
| Guangdong Wind Generation Co., Ltd. | Wind Generation | Capital increase | 793,881,870 | 100% | Self Funds | No | Long-term | Electric power | During the reporting period, the preliminary work or project construction of Zhuhai Jinwan Offshore Wind Power Project, Pingyuan Wind Power Project and Nanxiong Wind Power Project was progressing as planned. | 3,857,075 | No | January 26,2019,November 29,2019, April 11,2020, August 28,2020 and December 5,2020 | Announcement No.:2019-05, 2019-58， 2020-13，2020-45 and 2020-63 Published in China Securities Daily, Securities Times and http//.www.cninfo.com.cn | |
| Guangdong | Financial | Capital | 512,958,282 | 25% | Self Funds | Guangdong Energy Group | Long-term | Financial | In normal operation | 976,185 | No | August 28,2020 | Announcement No.:2020-48， |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
EnergyFinancialLeasingCo., Ltd.
| Energy Financial Leasing Co., Ltd. | Leasing | increase | （Share Proportion：50%）Chaokang Company（Share Proportion：25 %） | Leasing | Published in China Securities Daily, Securities Times and http//.www.cninfo.com.cn | |||||||||
| Guangdong Yudean Qujie Wind Power Generation Co., Ltd. | Wind Power Generation | Capital increase | 360,000,000 | 100% | Self Funds | No | Long-term | Electric power | During the reporting period, the construction of Zhanjiang Wailuo Offshore Wind Power Project Phase II and Zhanjiang Xinliao Offshore Wind Power Project was progressing normally. | 193,500,299 | No | August 31,2019,N9ovember 29,2019,October 31,2018 | Announcement No.:2018-54, 2019-40 and 2019-59 Published in China Securities Daily, Securities Times and http//.www.cninfo.com.cn | |
| Guangdong Yudean Binhaiwan Energy Co., Ltd. | Natural Gas Generation | Capital increase | 300,000,000 | 100% | Self Funds | No | Long-term | Electric power | During the reporting period, the construction of the replacement power supply project at the Ningzhou site in Dongguan was progressing normally. | -12,518,863 | No | April 11,2020 | Announcement No.:2020-13.Published in China Securities Daily, Securities Times and http//.www.cninfo.com.cn | |
| Guangdong Electric Industry Fuel Co., Ltd. | Coal sales | Capital increase | 100,000,000 | 50% | Self Funds | Guangdong Energy Group（Share Proportion：50%） | Long-term | Coal sales | In normal operation | 74,496,407 | No | December 5,2020 | Announcement No.:2020-64.Published in China Securities Daily, Securities Times and |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
http//.www.cninfo.com.cn
| http//.www.cninfo.com.cn | ||||||||||||||
| Shenzhen Capital Group Co., Ltd. | Investment | Capital increase | 69,736,560 | 3.67% | Self Funds | State-owned assets Supervision and Administration Commission of Shenzhen Municipal people's Government（shareholding ratio：28.1952%） | Long-term | Venture Capital | In normal operation | 20,290,444 | No | September 20,2018 | Announcement No.:2018-50.Published in China Securities Daily, Securities Times and http//.www.cninfo.com.cn | |
| Lincang Yudean Energy Co., Ltd. | Hydroelectric Generation | Capital increase | 63,300,000 | 100% | Self Funds | No | Long-term | Electric power | During the reporting period, the construction of the Lincang Dayakou Hydropower Station was progressing as planned. | 159,602,623 | No | October 13,2020 | Announcement No.:2020-52.Published in China Securities Daily, Securities Times and http//.www.cninfo.com.cn | |
| Tongdao Yuexin Wind Power Generation Co., Ltd. | Wind Power Generation | Capital increase | 50,000,000 | 100% | Self Funds | No | Long-term | Electric power | During the reporting period, the construction of Gaoshan Wind Power Project was progressing as planned. | -696,160 | No | April 11,2020 | Announcement No.:2020-13.Published in China Securities Daily, Securities Times and http//.www.cninfo.com.cn | |
| Shenzhen Huaguoquan Electric | Electrical Servic | Purchase | 49,680,900 | 100% | Self Funds | No | Long-term | Electrical Servic | In normal operation | -1,017,465 | No | May 21,2020 | Announcement No.:2020-38.Published in |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
ServiceCo., Ltd.
| Service Co., Ltd. | es | es | China Securities Daily, Securities Times and http//.www.cninfo.com.cn | |||||||||||
| Guangdong Yudean Qiming Energy Co., Ltd. | Natural Gas Generation | New establishment | 20,000,000 | 100% | Self Funds | No | Long-term | Electric power | During the reporting period, the preliminary work of the alternative power supply project at Shenzhen Guangming Plant was progressing as planned. | -3,416,166 | No | November 29,2019 | Announcement No.:2019-58Published in China Securities Daily, Securities Times and http//.www.cninfo.com.cn | |
| Guangdong Yudean Dayawan Integrated Energy Co., Ltd. | Natural Gas Generation | New establishment | 17,600,000 | 80% | Self Funds | Huizhou Dayawan Petrochemical Industry Zone Investment Co., Ltd. （shareholding ratio：20%） | Long-term | Electric power | During the reporting period, the preliminary work of the western comprehensive energy station project in Daya Bay Petrochemical Zone was progressing as planned. | -3,732,705 | No | February 15,2020 | Announcement No.:2020-13.Published in China Securities Daily, Securities Times and http//.www.cninfo.com.cn | |
| Total | -- | -- | 2,337,157,612 | -- | -- | -- | -- | -- | -- | 0 | 112,136,428 | -- | -- | -- |
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
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
In RMB
Securitycategory
| Security category | Security code | Stock Abbreviation: | Initial investment cost | Mode of accounting measurement | Book value balance at the beginning of the reporting period | Changes in fair value of the this period | Cumulative fair value changes in equity | Purchase amount in the this period | Sale amount in the this period | Gain/loss of the reporting period | Book value balance at the end of the reporting period | Accounting items | Source of the shares |
| Domestic and foreign stocks | 000027 | Shenzhen Energy | 15,890,628 | FVM | 78,246,000 | 13,834,800 | 76,190,172 | 92,080,800 | Other equity instrument Investment | Self funds | |||
| Domestic and foreign stocks | 600642 | Shenergy | 235,837,988 | FVM | 322,642,373 | -32,764,028 | 54,040,357 | 289,878,345 | Other equity instrument Investment | Self funds | |||
| Domestic and foreign stocks | 831039 | NEEQ | 3,600,000 | FVM | 7,182,000 | 4,446,000 | 8,028,000 | 11,628,000 | Other equity instrument Investment | Self funds | |||
| Total | 255,328,616 | -- | 408,070,373 | -14,483,228 | 138,258,529 | 0 | 0 | 0 | 393,587,145 | -- | -- | ||
| Disclosure date for the notice of approval by the Board (If any) | October 31,2019 | ||||||||||||
| Disclosure date for the notice of approval by shareholders’ Meeting (If any) | |||||||||||||
（2）Investment in Derivatives
□ Applicable √ Not applicable
None
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
5.Application of the raised capital
□ Applicable √ Not applicable
NoneⅥ.Significant Asset and Right Offering
1.Situation of Significant Asset Sale
□ Applicable √ Not applicable
None
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 over 10% net profit influencing to the Company
In RMB
Company Name
| Company Name | Company type | Sectors engaged in | Registered capital | Total assets | Net assets | Turnover | Operating profit | Net Profit |
| Guangdong Yudean Jinghai Power Generation Co., Ltd. | Subsidiary | Power generation and power station construction. | 2,919,272,000 | 8,152,803,743 | 2,584,179,809 | 4,859,564,103 | 676,369,130 | 502,484,201 |
| Guangdong Huizhou Natural gas Power Generation Co., Ltd. | Subsidiary | Power generation and power station construction. | 1,499,347,500 | 3,824,947,892 | 1,152,314,335 | 3,928,115,507 | 953,792,971 | 720,089,324 |
| Shenzhen Guangqian Electric Power Co., Ltd. | Subsidiary | Power generation and power station construction. | 1,030,292,500 | 1,837,506,907 | 260,541,073 | 1,711,378,892 | 453,487,011 | 341,192,217 |
| Guangdong Huizhou Pinghai Power Generation Plant Co., Ltd. | Subsidiary | Power generation and power station | 1,370,000,000 | 5,023,438,993 | 1,614,664,152 | 3,243,260,761 | 620,922,357 | 458,659,787 |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
construction.
| construction. | ||||||||
| Guangdong Red Bay Power Generation Co., Ltd | Subsidiary | Power generation and power station construction. | 2,749,750,000 | 6,034,891,711 | 1,275,820,278 | 3,655,108,574 | 416,080,617 | 307,093,384 |
| Guangdong Yuejia Electric Power Co., Ltd. | Subsidiary | Power generation and power station construction. | 756,000,000 | 465,983,771 | 244,324,340 | 2,134,294 | 287,230,095 | 283,232,695 |
Acquirement and disposal of subsidiaries in the Reporting period
√ Applicable □ Not applicable
| Company name | Way of acquiring and disposing of subsidiary corporations within the reporting period | Impact on the whole producing operation and performance |
| Guangdong Yudean Dayawan Integrated Energy Co., Ltd. | Invested | During the reporting period, Dayawan Comprehensive Energy Project was in the early stage of work and did not start construction. |
| Guangdong Yudean Qiming Energy Co., Ltd. | Invested | During the reporting period, Shenzhen Guangming Project was in the early stage of work and did not start construction. |
| Shenzhen Huaguoquan Electric Service Co., Ltd. | M & A | No significant impact. |
| Shaoguan Nanxiong Yuefeng New Energy Co., Ltd. | Invested | During the reporting period, Nanxiong Yufeng New Energy Project was in the early stage of work and did not start construction. |
Note:
1. During the reporting period, all 11 thermal power business entities achieved profits this year, mainly due to thedecline in coal prices and the strengthening of cost control by the Company. Guangqian Company, Huizhou LNGand other companies with strong profitability for natural gas power generation projects have made a greatercontribution to the company's net profit to its parent.
2. Due to the fierce competition in the power market in Yunnan Province, Lincang Company, a wholly-ownedsubsidiary of the Company, has a low on-grid electricity price superposed with large depreciation cost andfinancial cost burden, and has incurred operating losses for four consecutive years. This year, the impairmentprovision for the operating assets group was RMB 118 million.
3. Investment income of the Company to affiliated companies increased year-on-year. The main reason is that theShipping Company made more impairment provision last year, which led to a large loss of investment income ofthe Shipping Company.
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
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. TheCompany's main power assets are mainly in Guangdong Province, which is with many other power producers andis greatly affected by the power transmission from west to east. China's power production has always beendominated by thermal power. With the rapid development of new and renewable energy sources such as nuclearpower, hydropower, wind power and solar energy in recent ten years, the proportion of thermal power hasdeclined, WHICH has gradually changed from the main power supply to the basic power supply for peakregulation and frequency modulation. In 2020, on behalf of the Chinese government, President Xi Jinping putforward China's "3060" goal in terms of carbon peaking and carbon neutralization. In this environment, in thefuture, the thermal power industry mainly relies on developing large-capacity and high-parameter coal-firedpower and accelerating gas-fired power to optimize its structure, on improving its technical strength to reduceconsumption and increase efficiency, on market to obtain electricity quantity and electricity price, and on finemanagement to reduce costs. Meanwhile, the Company will adhere to the new development concept, continuouslypromote the optimization and adjustment of power supply structure, vigorously develop the construction of newenergy projects, and promote the clean and low-carbon transformation of the Company's energy.
(II) Corporate development strategyAt present, guided by the national energy development strategy, the Company is preparing the "14th Five-YearPlan" in combination with its own condition. In the future, it will focus on energy production and supply, withconsideration of comprehensive energy services, centered by the goals of carbon peaking and carbonneutralization. Based on Guangdong and targeted at the whole country, it will implement the "1+2+3+X" strategy-to build a first-class green low-carbon power listed company, coordinate safety and development, optimize andstrengthen the coal power, gas power and biomass power generation business, and vigorously develop new energy,energy storage, hydrogen energy and land park development. It will fully promote the leap-forward developmentof new energy; Grasp the window phase of thermal power development and accelerate the development andconstruction of key projects; Explore the distribution of multi-energy joint supply project of "integration of sourcenetwork, load and storage", promote the integrated development of "integration of wind, light and fire hydrogenstorage", and build an ecological and civilized power generation enterprise.
(III) Production and operation plansIn 2021, the company's consolidated statement has a budget target value of 78.469 billion kilowatt hours ofon-grid electricity, which is 12.32% higher than the actual on-grid power in 2020; The budgetary target value ofthe main business revenue is RMB 29.624 billion, and an increase of 1.743 million yuan compared to the actualamount of main business operating revenue of RMB 27.881 billion; the budgetary value for the full-year plannedinvestment is RMB 2.29 billion, a decrease of 364 million yuan over the actual completed investment of RMB
2.654 billion in 2020.
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
(Note: The above operating plan does not represent the company's profit forecast for 2021, whether it can beachieved depending on various factors such as macro economy, industrial policy and changes in the electricitymarket, thus there is considerable uncertainty, and investors should pay special attention to it.)
(VI) Possible risksFirstly, novel coronavirus pneumonia and external environment are still uncertain. The price of coal gas ishovering at high level, and the downward pressure of electricity price still consists. The gap of new energysubsidies receivable is gradually expanding, which may result in problems concerning the operation of Companythat can not be ignored.Secondly, the production safety situation is complex and severe, there are still many illegal operations, and thelevel of safety management is uneven.Thirdly, the comprehensive utilization hours of units are decreasing year by year, the coal consumption level ofcoal machinery is high, and the operation situation is under pressure for a long time.Fourthly, thermal power is changing from the main power supply to the basic power supply of peak regulation andfrequency modulation, and the development space of coal power is limited. The development layout of newenergy projects is weak, and there are not enough high-quality projects in reserve, which puts forward higherrequirements for the company to vigorously develop clean energy.
(V) Countermeasures
Firstly, firmly push forward the transformation and upgrading of power supply structure, and strive to achievegreater breakthroughs in structural adjustment. Company will vigorously promote the integration anddevelopment of the Company's "wind, light and fire hydrogen storage". Strive for development opportunities andaccelerate the progress of key energy projects. Solidly promote the construction of Ningzhou Alternative PowerProject, Huadu Thermal Power Project, Yangjiang Shaba, Wailuo Phase II, Xinliao Offshore Wind Power Project,Guangxi Wuxuan, Tongdao Daogaoshan and Xupu Taiyangshan Onshore Wind Power projects, and ensure thecompletion of the annual project investment and construction plan on schedule. Increase investment anddevelopment of clean energy and project reserve, and accelerate the preliminary work of Shenzhen GuangmingGas and Power Project, Daya Bay Integrated Energy Station, Zhaoqing Yong'an Natural Gas Thermal PowerProject and Yangjiang Qingzhou Offshore Wind Power Project. Actively build distributed energy sources withmultiple combined supply of cold, heat, electricity and gas; Explore the infrastructure construction such aselectricity exchange, charging piles and energy storage and the development and utilization of hydrogen energy.Secondly, deepen the drive of reform and innovation to improve the development quality of listed companies.Profoundly develop benchmarking world-class management promotion actions, through continuous constructionand optimization of the benchmarking management system, run the benchmarking through the whole process ofenterprise decision-making and operation, and enhance the core competitiveness of the Company. Focus on theimplementation of innovation-driven development strategy, and make greater progress in consolidating scientificand technological achievements and building digital energy and smart energy. Deploy basic and forward-lookingtechnology research in the fields of energy security, smart systems and efficient fuel utilization in advance.Actively comply with the power market reform, continuously improve the power marketing management,vigorously explore the power market, and build an integrated platform for production and marketing of gain
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
services and a situational awareness decision-making platform for the operating environment of power enterprises.Thirdly, implement the relevant arrangements to promote the reform of mixed ownership; Formulate andimplement a plan to integrate the property rights of managed power generation assets and gradually resolve theproblem of inconsistency between the property rights relationship and the management relationship. Steadily pushforward the reform and innovation of the system and mechanism, improve the system and mechanism suitable forthe high-quality development of listed companies, stimulate the endogenous power and vitality of enterprises,establish and improve the assessment methods for sub-enterprises, and study and build an assessment anddistribution incentive mechanism that integrates incremental incentives, bottom line constraints and fault tolerancemechanisms.Fourthly, continue to strengthen the ability to identify and control risks and strive to prevent and resolve majorrisks. According to the newly revised and implemented Securities Law, Guidelines for the Standardized Operationof Shenzhen Stock Exchange and other laws and regulations, optimize the system and management process,further improve the corporate governance structure, and comprehensively enhance the corporate governancesystem and governance capability. Firmly establish compliance awareness, consolidate a risk control managementsystem based on compliance management, with internal control as a means and comprehensive risk managementas a guide, and effectively prevent listed companies from decision-making risks, operational risks and debt risks.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
No reception of research, communication and interview occurred in the period
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
V. Important Events
Ⅰ.Specification of profit distribution of common shares and capitalizing of common reservesFormulation, implementation and adjustment of profit distribution policy of common shares especially cashdividend policy during the reporting period
√Applicable□ Not applicable
The profit distribution policy in the Articles of Association of the company is as follows:
Article 161The company highly valued the investors especially the reasonable investment returns for the small andmedium investors, and the company’s dividend policy is:
(1)The company’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 ofdividends that allowed by the laws, but shall give the priority to the cash dividends distribution for profitsdistribution. If it meets the conditions required for cash dividends distribution, then the company shall adopt thecash dividends for the profits distribution.
(3) If the net profits attributable to shareholders of the parent company realized by the company in the yearare positive and the cumulative distributable profits in the end of the year are positive, the company shalldistribute dividends.
(4) The profits annually distributed by the company in cash dividends shall be not less than 10% ofdistributable profits realized in the year, and the accumulative profits distributed in cash dividends in the mostrecent three years shall be not less than 30% of the mean distributable profits realized in the most recent threeyears. When the company carries out the profit distribution, the proportion of the cash dividends shall be not lessthan 20% 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 withthe relevant provisions of the Articles of Association. From 2018 to 2020, the company's cash dividends accountedfor 66.39%、54.94% and 36.08% of the distributable profits realized in each year respectively. In the future, thecompany will continue to maintain the continuity, rationality and stability of cash dividends and actively repay itsshareholders.
Special explanation on cash dividend policy
| Special explanation on cash dividend policy | |
| Satisfy regulations of General Meeting or requirement of Article of Association | Yes |
| 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 proper role | Yes |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
Minority shareholders have ample opportunities and theirlegitimate rights and interests are effectively protected
| Minority shareholders have ample opportunities and their legitimate rights and interests are effectively protected | Yes |
| Condition and procedures are compliance and transparent while the cash bonus policy adjusted or changed | During the reporting period, the company's cash dividend policy was not adjusted or changed. |
Statement on profit distribution plan and capitalization of capital reserve plan of the Company in nearly threeyears (including the report period)The company’s dividend distribution plan of the year 2020 was: Based on that the total share capital of thecompany is 5,250,283,986 shares, for A-share, the company will distribute cash dividends of RMB 1.2 (taxinclusive per 10 shares; for B-share, the company will distribute cash dividends of RMB 1.2 (tax inclusive) per 10shares.The company’s dividend distribution plan of the year 2019 was: Based on that the total share capital of thecompany is 5,250,283,986 shares, for A-share, the company will distribute cash dividends of RMB 1.2 (taxinclusive per 10 shares; for B-share, the company will distribute cash dividends of RMB 1.2 (tax inclusive) per 10shares.The company’s dividend distribution plan of the year 2018 was: Based on that the total share capital of thecompany is 5,250,283,986 shares, for A-share, the company will distribute cash dividends of RMB 0.6 (taxinclusive per 10 shares; for B-share, the company will distribute cash dividends of RMB 0.6 (tax inclusive) per 10shares.Cash dividend in latest three years
In RMB
| Year | Amount for cash bonus (tax included) | Net profit attributable to the over of the parent company in the consolidated financial statements | Ratio in net profit attributable to the parent company in the consolidated financial statements | Amount of cash dividends from cash offer to repurchase shares of the funds | Proportion of cash dividends from cash offer to repurchase shares of the funds | Amount for cash bonus (Other included) | Ratio of the total cash bonus (other ways included) in net profit attributable to common stock shareholders of listed company contained in consolidation statement |
| 2020 | 630,034,078.32 | 1,746,280,132 | 36.08% | 0 | 0% | 630,034,078.32 | 36.08% |
| 2019 | 630,034,078.32 | 1,146,767,033 | 54.94% | 0 | 0% | 630,034,078.32 | 54.94% |
| 2018 | 315,017,039.16 | 474,461,997 | 66.39% | 0 | 0% | 315,017,039.16 | 66.39% |
In the reporting period, both the Company’s profit and the parent company’s retained earnings were positivehowever not cash dividend distribution proposal has been put forward.
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
□ 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
| Bonus shares distributed at the rate of _(share)for every 10 shares | 0 |
| Dividend distributed at the rate of CNY_ for every 10 shares (with tax inclusive) | 1.2 |
| Share capital base for the dividend distribution preplan (shares) | 5,250,283,986 |
| Total cash dividend distributed (with tax inclusive) | 630,034,078.32 |
| Amount of cash dividend distributed in other way(s) (such as shares repurchased) | 0 |
| Total amount of cash dividend (including other way(s) | 630,034,078.32 |
| Profit available for distribution (CNY) | 2,336,344,455 |
| Proportion of the cash dividend in the total profit available for distribution (%) | 100% |
| 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 2020,The company determined 1,109,012,846 yuan as the net profit distribution base for the current year according to the lower of the parent company's statement and the consolidated statement，plus the non-distributed profits of RMB1,615,486,105 in the prior year, thus the upper limit of the distributable profits is RMB2,724,498,951. According to the Articles of Association of the company, draw RMB7110,901,285 for the statutory surplus reserve taking for 10% of net profits, draw RMB277,253,212 for the other surplus reserve taking 25% of the total net profits, then the upper limit of the distributable profits to the shareholders is RMB2,336,344,455. The company's 2020 annual profits distribution plan is: Based on that the number of the company’s total share capital at the end of 2020 is 5,250,283,986 shares, planned that the company will distribute cash dividends of RMB1.2 (tax inclusive) to A-share shareholders and the company will distribute cash dividends of RMB 1.2 (tax inclusive) to B-share shareholders. | |
III. Commitments to fulfill the situation
1.The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of thereporting period made by the company, shareholder, actual controller, acquirer, director, supervisor, seniormanagement personnel and other related parities.None
2.The existence of the company's assets or projects earnings forecasts and earnings reporting period is still in theforecast period, the company has assets or projects meet the original profit forecast made and the reasons
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
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 comparedwith the financial reporting of last year.
√Applicable □ Not applicable
On July 5, 2017, the Ministry of Finance issued the notice on revising and printing the "accounting standards forBusiness Enterprises No. 14 - Revenue" (CK [2017] No. 22) (hereinafter referred to as the "new revenuestandards"), requiring domestic listed companies to take effect from January 1, 2020.On December 16, 2019, the Ministry of Finance issued the Interim Provisions on accounting treatment of CarbonEmission Trading (CK [2019] No. 22) (hereinafter referred to as "Interim Provisions on carbon emission rights"),requiring key emission enterprises to take effect from January 1, 2020.On June 19, 2020, the Ministry of Finance issued the accounting regulation of coronavirus-related rentreduction(CK[2020] No.10) (hereinafter referred to as the "COVID-19 rent reduction provisions") requiringenterprises to take effect from June 19, 2020 to June 30, 2021.On December 11, 2020, the Ministry of Finance issued the "question and answer on the implementation ofaccounting standards for business enterprises (2020)" to explain the new standards and new policies.Through the deliberation and approval of the 11th meeting of the 9th Board of Directors and the 8th meeting ofthe 9th Board of Supervisors of the company, the company implements the above new revenue standards fromJanuary 1, 2020 in accordance with the provisions of the Ministry of finance. In addition to the above accountingpolicy changes, other unchanged parts are still implemented in accordance with the "accounting standards forbusiness enterprises - Basic Standards" and relevant specific standards issued by the Ministry of Finance in theearly stage, the application guide of accounting standards for business enterprises, the interpretation of accountingstandards for business enterprises and other relevant provisions.The company implements the above new revenue criteria, the Interim Provisions on carbon emissions, the rentreduction provisions of COVID-19 and the accounting standards of enterprises, and has no significant impact onthe company's financial position, operating results and cash flows.
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
VII.Explain retrospective restatement due to correction of significant accounting errors in the reportingperiod
□Applicable √ Not applicable
No major accounting errors within reporting period that needs retrospective restatement for the Company in theperiod.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
| Name | Business place | Registered address | Nature | Registered capital | Proportion (%) | Acquired |
| Guangdong Yudean Dayawan Integrated Energy Co., Ltd. | Huizhou ,Guangdong | Huizhou ,Guangdong | Electric Power | 22,000,000 | 80 % | Invested |
| Guangdong Yudean Qiming Energy Co., Ltd. | Shenzhen ,Guangdong | Shenzhen ,Guangdong | Electric Power | 20,000,000 | 100 % | Invested |
| Shenzhen Huaguoquan Electric Service Co., Ltd. | Shenzhen ,Guangdong | Shenzhen ,Guangdong | Rent | 2,650,000 | 100 % | Merger of non-identical enterprises |
| Shaoguan Nanxiong Yuefeng New Energy Co., Ltd. | Shaoguan, Guangdong | Shaoguan, Guangdong | Electric Power | 5,000,000 | 100 % | Invested |
IX. Engagement/Disengagement of CPAsCPAs currently engaged
| Name of the domestic CPAs | PWC Certified Public Accountants (special general partnership) |
| Remuneration for domestic accounting firm (RMB10,000) | 359 |
| Continuous life of auditing service for domestic accounting firm | 5 |
| Name of domestic CPA | Wang Bin, Li Yanhua |
| The Continuous Years of Audit Service of Certified Public Accountants of China Certified Public Accountants | Wang Bin(5 years),Li Yanhua(2 year) |
Has the CPAs been changed in the current period
□ Yes √ No
Description of the CPAs, financial advisers or sponsors engaged for internal control auditing
√ Applicable □Not applicable
In the report year, the Company engaged PWC Certified Public Accountants (special general partnership)as thecertified public accountants and internal control audit body in 2020. The audit remuneration was RMB 3.59million
Guangdong Electric Power Development Co., Ltd. 2020 Annual 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.
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
XII.Significant lawsuits and arbitrations of the Company
√ Applicable □ Not applicable
Basic situation of lawsuit(arbitration)
| Basic situation of lawsuit(arbitration) | Lawsuit amount (RMB 10,000) | Whether form into estimated liabilities | Process of lawsuit(arbitration) | Trial results and influences of lawsuit(arbitration) | Situation of execution of judgment of lawsuit (arbitration) | Disclosure date | Disclosure index |
| On April 1, 2019, Guangdong Huizhou Pinghai Power Plant Co., Ltd., a holding subsidiary to the Company, received a set of legal documents including the “Notice of Responding to action”, “Subpoena” and “Civil Indictment” from Huizhou Intermediate People's Court of Guangdong Province, involving the case of contract dispute of China Energy Construction Group Guangdong Thermal Power Engineering Co., Ltd suing Pinghai Power Plant on Construction Project, with the case number of No. 363-(2018) Yue Civil Action. The lawsuit claims include: 1. The Pinghai Power Plant is ordered to pay the project amount of RMB 165.,978408 million(principal) and interest of RMB 72.478979 million(temporarily calculated as for the period from May 1, 2011 to October 31, 2018, with the final interest calculated as of the date of actual payment shall be calculated in accordance with the benchmark interest rate of similar loans of the people's bank of China in the same period) to Guangdong Thermal Power; the above principal and interest amount to RMB 238.457387 million; 2. The Pinghai Power Plant is ordered to bear all the litigation costs including the acceptance fee and the appraisal fee. | 23,845.74 | No | The two pre-trial preparation meetings for the case were held in the Intermediate People's Court of Huizhou City Guangdong Province respectively on May 14, 2019 and July 18, 2019. After the both parties reached a settlement agreement, on November 30, 2020, Huizhou Intermediate People's Court ruled that the plaintiff Guangdong Thermal Power Engineering Co., Ltd. was allowed to withdraw the lawsuit. | Both parties reach a settlement and confirm that the total settlement price of the project involved is RMB 1,007,858,115, and Party A also needs to pay Party B a fee of RMB 49,648,202.85. The total cost of litigation is RMB 1,122,648.47, with each party bearing 50%. All expenses have been paid.The above matters have no significant impact on the operating results and financial situation of the company in the current period. | The decision to withdraw the lawsuit has been executed. | April 4,2019 | Announcement No.:2019-12)Published in China Securities Daily, Securities Times and http//.www.cninfo.com.cn |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
On July 8, 2019, Guangdong Huizhou Pinghai Power Plant Co.,Ltd., the company's controlling subsidiary, received a set of legaldocuments such as Summon, Notice of Proof and Notice ofRespondence to Action from the Intermediate People's Court ofHuizhou City, Guangdong Province, which involved the case ofChina Energy Construction Group Guangdong Electric PowerEngineering Bureau Co., Ltd. Pinghai Power PlantConstruction Contract Dispute (case No. (2019) Y13MC No.
163). The lawsuit claims include: 1. Pinghai Power Plant pays
Guangdong Electric Power Engineering Bureau 89.548053million yuan (principal) and interest of 36.526452 million yuan,with the above principal and interest totaling 126.074505 millionyuan; 2. Pinghai Power Plant bears the litigation expenses in thiscase.
| On July 8, 2019, Guangdong Huizhou Pinghai Power Plant Co., Ltd., the company's controlling subsidiary, received a set of legal documents such as Summon, Notice of Proof and Notice of Respondence to Action from the Intermediate People's Court of Huizhou City, Guangdong Province, which involved the case of China Energy Construction Group Guangdong Electric Power Engineering Bureau Co., Ltd. Pinghai Power Plant Construction Contract Dispute (case No. (2019) Y13MC No. 163). The lawsuit claims include: 1. Pinghai Power Plant pays Guangdong Electric Power Engineering Bureau 89.548053 million yuan (principal) and interest of 36.526452 million yuan, with the above principal and interest totaling 126.074505 million yuan; 2. Pinghai Power Plant bears the litigation expenses in this case. | 12,607.45 | No | The case was originally scheduled to be heard in Huizhou Intermediate People's Court on August 14, 2019, and was later rescheduled to January 17, 2020 for the first hearing of the first instance. The two parties exchanged evidence and cross-examined, and debated the controversial issues and the focus issues. After the both parties reached a settlement agreement, on November 30, 2020, Huizhou Intermediate People's Court ruled that the plaintiff Guangdong Thermal Power Engineering Co., Ltd. was allowed to withdraw the lawsuit. | Both parties reach a settlement and confirm that the total settlement price of the project involved is RMB 345.95 millon , and Party A also needs to pay Party B a fee of RMB 15,524,830.92. The total cost of litigation is RMB436,313.49, with each party bearing 50%. All expenses have been paid.The above matters have no significant impact on the operating results and financial situation of the company in the current period. | The decision to withdraw the lawsuit has been executed. | July 11,2019 | Announcement No.:2019-29)Published in China Securities Daily, Securities Times and http//.www.cninfo.com.cn |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
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 orOther Employee Incentive Measures
□Applicable √ Not applicable
During the reporting period, the company has no stock incentive plan, employee stock ownership plan or otheremployee incentives that have not been implemented.XVI.Material related transactions
1. Related transactions in connection with daily operation
□Applicable √ Not applicable
None
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.
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
None
5. Other significant related-party transactions
√ Applicable □ Not applicable
（1）2020 daily related transactions were carried out after examination and approval by 2020 first provisionalshareholders' general meeting. Refer to VIII. Relationship between related parties and the transactions betweenthem of the Financial Report Notes of this report for details.
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
（2） The Company signed the Financial Services Framework Agreement with the related party GuangdongEnergy Group Finance Co., Ltd., the main content of which is that the Company and its holding subsidiariesapplied for a comprehensive credit line totaling RMB 22 billion from Guangdong Energy Group Finance Co., Ltd.in 2020, which was reviewed and approved by the First Extraordinary General Meeting of Shareholders in 2020.
（3）In order to ensure the safety of capital supply, broaden financing channels, and relieve capital pressure, theCompany and Guangdong Energy Finance Leasing Co., Ltd. signed the Framework Agreement on FinancialLeasing Cooperation, with the total amount of financing not exceeding RMB 10 billion, which was reviewed andapproved by the First provisional General Meeting of Shareholders in 2020.
（4）In order to effectively protect the property value of power generation equipment and reduce the risk cost, theCompany and its related party Guangdong Energy Property Insurance Self-insurance Co., Ltd. (formerly"Guangdong Yudean Property Insurance Self-insurance Co., Ltd.") signed the Framework Agreement onCooperation in Insurance and Risk Management Services, in which the Captive Insurance Company providedinsurance and risk management services to the Company and its holding subsidiaries, and the total expenseswithin the agreement period did not exceed RMB 400 million, which was reviewed and approved by the Firstprovisional General Meeting of Shareholders of the Company in 2020.
（5）In order to standardize the enterprise's multiple economic reforms, effectively revitalize relevant resourcesand realize the preservation and appreciation of assets, the Company acquired 95% equity of HuaguoquanCompany held by Dongguan Humen Jinfan Industrial Corporation at a price of RMB 47.1969 million, and thepurchase price was finally converted according to the net assets evaluation value of Huaguoquan Company whichwas filed and approved by the competent authority. This matter has been reviewed and approved by the thirteenmeeting of the ninth Board of Directors of the Company.
（6）In order to implement the requirements of deepening the reform of state-owned enterprises and improve thelevel of integration of industry and finance, Guangdong Energy Finance Leasing Co., Ltd. plans in capital increaseand share expansion. The Company will participate in the capital increase and share expansion of the financialleasing company, and acquire 25% of its equity by injecting RMB 512,958,300 into the financial leasing company.After the capital injection, it holds its registered capital of RMB 500 million. The capital injection price isdetermined based on the assessed value of the net assets of the financial leasing company that has been filed andapproved by the competent authorities. This matter has been reviewed and approved by the fourteen meeting ofthe ninth Board of Directors of the Company.
（7）In order to meet the policy needs of national renewable energy development, speed up the construction ofShaba Wind Power Project, strengthen cooperation with international financial organizations, broaden financingchannels and reduce financing costs, the Company provided joint liability guarantee for the loan of RMB 2 billiontransferred by Department of Finance of Guangdong Province to Guangdong Energy Group Co., Ltd. for theShaba Wind Power Project of Guangdong Yudean Yangjiang Offshore Wind Power Co., Ltd., and the Companysigned a counter-guarantee contract with Yangjiang Wind Power Company. This matter was reviewed andapproved at the fifth meeting of the ninth Board of Directors of the Company and approved at the secondprovisional General Meeting of Shareholders in 2020.
（8）In order to further deepen the reform of mixed ownership in state-owned enterprises and speed up theimprovement of the corporate governance structure and market-oriented operating mechanism of state-ownedenterprises, the Company and Guangdong Energy Group Co., Ltd. simultaneously increased the capital of RMB200 million to the fuel company according to the equity ratio, which was used for the fuel company to acquire100% equity of environmental protection company, and the rest of the acquisition funds were settled by the fuelcompany itself. This matter has been reviewed and approved by the seventeen meeting of the ninth Board ofDirectors of the Company.
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
（9）In order to implement the spirit of the document of State-owned Assets Supervision and AdministrationCommission of the People's Government of Guangdong Province on "reducing management levels and reducinglegal entities", optimize the layout of state-owned capital and improve management efficiency, the Board ofDirectors agreed that Guizhou Yueqian Electric Power Co., Ltd. (hereinafter referred to as "Yueqian Company")should absorb and merge Guangdong Yudean Holding Western Investment Co., Ltd. After the merger is completed,the registered capital of Yueqian Company held by the Company is about RMB 247.6904 million (based on therecorded assets evaluation results and the changes in the net assets of both parties during the transition perioddetermined by extended audit), and the share ratio of Yueqian Company held by the Company is about 13%. Thismatter has been reviewed and approved by the seventeen meeting of the ninth Board of Directors of the Company.
（10）In order to implement the decision-making arrangements of State-owned Assets Supervision andAdministration Commission of the People's Government of Guangdong Province on the reform of mixedownership, and promote the fuel company to improve the market-oriented operating mechanism and achievehigh-quality development, the Company and Guangdong Energy Group Co., Ltd. simultaneously increased capitalby RMB 360 million according to the equity ratio, which was used by the fuel company to acquire thenewly-increased registered capital for the 20% equity of the power generation company, and the rest of thesubscription funds were settled by the fuel company itself. This matter has been reviewed and approved by theeighteen meeting of the ninth Board of Directors of the Company.Website for temporary disclosure of the connected transaction
Announcement
| Announcement | Date of disclosure | Website for disclosure |
| Estimates announcement of the Daily Related Party Transactions of 2020 | January 18,2020 | http//www.cninfo.com.cn. |
| Announcement of Related Transactions on Signing of the Financial Services Framework Agreement, Framework Agreement on Financing Leasing Cooperation and Framework Agreement on Cooperation in Insurance and Risk Management Services | January 18,2020 | http//www.cninfo.com.cn. |
| Announcement of Resolutions of the 13th Meeting of the Ninth Board of Directors | May 21,2020 | http//www.cninfo.com.cn. |
| Announcement on Related transaction in Capital Increase and Share Expansion of Guangdong Energy Finance Leasing Co., Ltd. | August 28,2020 | http//www.cninfo.com.cn. |
| Announcement on Investing in the Construction of Zhaoqing Dinghu Natural Gas Cogeneration Project | October 13,2020 | http//www.cninfo.com.cn. |
| Announcement on Related Transactions of Capital Increase to Guangdong | December 5,2020 | http//www.cninfo.com.cn. |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
Guangdong Electric Power Industry FuelCo., Ltd.
| Guangdong Electric Power Industry Fuel Co., Ltd. | ||
| Announcement on Related Transactions of of Guizhou Yueqian Electric Power Co., Ltd's Merger of Guangdong Yudean Holdings Western Investment Co., Ltd. | December 5,2020 | http//www.cninfo.com.cn. |
| Announcement on Related Transactions of Capital Increase to Guangdong Guangdong Electric Power Industry Fuel Co., Ltd. | December 25,2020 | http//www.cninfo.com.cn. |
XVII.Particulars about significant contracts and their fulfillment
1. Particulars about trusteeship, contract and lease
(1) Trusteeship
√ Applicable □Not applicable
NoteAccording to the instructions of Energy Group on undertaking to perform related matters, in order to avoidhorizontal competition and fulfill the commitments of related horizontal competition, the Company and EnergyGroup have signed the Equity Trust Agreement, which entrusts the rights of shareholders of the Company withinthe trust scope of Energy Group to the Company except for the rights of ownership, income and disposition. Theexpected trust fee is 2.45 million/year. The complete report is available as Announcement No.2018-04 with ChinaSecurities Journal, Securities Time and at www.cninfo.com.cn dated January 13,2018.Project that bring profit and losses to the company of more than 10% of the company's total profit in the reportingperiod. √□Applicable √ Not applicableNo gains or losses to the Company from projects that reached over 10% in total profit of the Company inreporting period
(2) Contract
□ Applicable √ Not applicable
No any contract for the Company in the reporting period.
(3) Lease
√ Applicable □Not applicable
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
Note :
As a lessee, The Company rented houses ，Yangjiang Port and billboards from Yudean Real Estate Company, andthe rental fee incurred this year was RMB4,406,829;As a lessor, the Company leased the houses to Yudean Property Company ，Yudean Shipping Company ,Shajiao APower Plant and Qujiang New Energy . the rental income for this year was confirmed to be RMB1,691,072;The parent company of the Company, as a leassor, leases the houses and parking spaces to units and individualssuch as Guangdong Electric Power Communication and Information Company and Guangdong Electric PowerDispatching Center. The rental income for this year was confirmed to be RMB730,001..Project that bring profit and losses to the company of more than 10% of the company's total profit in the reportingperiod.
□Applicable √ Not applicable
There were no leases with a 10% or greater impact on the Company’s gross profit in the Reporting Period.
2.Guarantees
√Applicable □ Not applicable
（1）Guarantees
In RMB10,000
Guarantee of the Company for the controlling subsidiaries (Exclude controlled subsidiaries)
| Guarantee of the Company for the controlling subsidiaries (Exclude controlled subsidiaries) | ||||||||
| Name of the Company | Relevant disclosure date/No. of the guaranteed amount | Amount of Guarantee | Date of happening (Date of signing agreement) | Actual mount of guarantee | Guarantee type | Guarantee term | Complete implementation or not | Guarantee for associated parties (Yes or no) |
| Yunnan Baoshan Binlangjiang Hydroelectricity Development Co., Ltd. | December 19,2007 | 4,350 | November 30,2007 | 1,160 | Guaranteeing of joint liabilities. | 15 years | No | No |
| Yunnan Baoshan Binlangjiang Hydroelectricity Development Co., Ltd. | May 27,2009 | 9,367 | June 22,2009 | 4,147 | Guaranteeing of joint liabilities. | 18 years | No | No |
| Yunnan Baoshan Binlangjiang Hydroelectricity Development Co., | May 27,2009 | 7,250 | May 27,2009 | 725 | Guaranteeing of joint liabilities. | 15 years | No | No |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
Ltd.
| Ltd. | ||||||||
| Guangdong Energy Group Co.,Ltd. | October 29,2020 | 200,000 | November 19,2020 | 32,306 | Guaranteeing of joint liabilities. | 23 years and 9 months | No | Yes |
| Total amount of approved external guarantee in the report period(A1) | 234,624.4 | Total actually amount of external guarantee in the report period(A2) | 30,276 | |||||
| Total amount of approved external guarantee at the end of the report period(A3) | 425,459.4 | Total actually amount of external guarantee at the end of the report period(A4) | 38,338 | |||||
| Guarantee of the company for its subsidiaries | ||||||||
| Name of the company guaranteed | Related announcement date and no. | Amount of guarantee | Date of happening(date of signing agreement) | Actually guarantee amount | Guarantee type | Guarantee term | Complete implementation or not | Guarantee for related party(yes or no) |
| Zhanjiang Wind Power Generation Co., Ltd. | April 29,2009 | 18,572 | October 9,2010 | 5,838 | Guaranteeing of joint liabilities. | 18 years | No | No |
| Total of guarantee for subsidiaries approved in the period(B1) | Total of actual guarantee for subsidiaries in the period (B2) | -1,084 | ||||||
| Total of guarantee for subsidiaries approved at period-end(B3) | 141,536 | Total of actual guarantee for subsidiaries at period-end(B4) | 5,838 | |||||
| Guarantee of the subsidiaries for the controlling subsidiaries | ||||||||
| Name of the Company guaranteed | Relevant disclosure date/No. of the guaranteed amount | Amount of guarantee | Date of happening (Date o signing agreement) | Actual mount of guarantee | Guarantee type | Guarantee term | Complete implementation or not | Guarantee for associated parties (Yes or no) |
| The Company’s total guarantee(i.e. total of the first three main items) | ||||||||
| Total guarantee quota approved in the reporting period（A1+B1+C1） | 234,624.4 | Total amount of guarantee actually incurred in the reporting period（A2+B2+C2） | 29,192 | |||||
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
Total guarantee quota alreadyapproved at the end of thereporting period（A3+B3+C3）
| Total guarantee quota already approved at the end of the reporting period（A3+B3+C3） | 566,995.4 | Total balance of the actual guarantee at the end of the reporting period（A4+B4+C4） | 44,176 |
| The proportion of the total amount of actually guarantee in the net assets of the Company (that is A4+B4+C4）% | 1.61% | ||
| Including： | |||
| Amount of guarantee for shareholders, actual controller and its related parties (D) | 32,306 | ||
| The debts guarantee amount provided for the Guaranteed parties whose assets-liability ratio exceed 70% directly or indirectly（E） | 6,032 | ||
| Total guarantee Amount of the abovementioned guarantees（D+E+F） | 38,338 | ||
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..
4.Material contract with daily operation concerned
□Applicable √ Not applicable
5. Other significant contract
□ Applicable √ Not applicable
No other significant contracts for the Company in reporting period.
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
XVIII. Social responsibilities
1. Information of performance of social responsibilities
For details, please see the Social Responsibility Report of 2020 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 theDevelopment and General Secretary Xi Jinping's series of important speeches on poverty alleviation and thedevelopment, We will actively implement the overall arrangements and arrangements of Guangdong province for
targeted poverty alleviation and targeted poverty alleviation, by adhering the concept of innovation, coordination,green, open and shared development, the Company will strengthen the awareness of the overall situation and thesense of responsibility of “The Rich fist leads latter, and realize the common prosperity”, fully utilize theadvantages, carry out the measures of precision poverty alleviation to the village-under-aid, effectively enhancethe local “vitality-making” function, focus on boosting the village’s collective economic strength, developing theenvironment and society and people’s livelihood, thus to increase the income of poverty-alleviation objects, so asto ensure the accomplishment of various project goals and tasks.
1. Soundly do the work of the poverty alleviation by industry development. Formulate the characteristic industrydevelopment for the village-under-aid, implement the “one village, one product” industry promotion action, tapinto the resources advantages, precisely select the dominant industry and the dominant products, support theconstruction of characteristic agricultural bases with high participation of poverty households, support the largeagricultural households and professional cooperatives , small and micro enterprises and so forth agriculturaloperation 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 onlinestores for self-development.
2. Explore the poverty alleviation by shares. Promote the income-increase mode of poor village collectiveeconomy, allow the financial special poverty alleviation funds and other agricultural-related funds to invest infacilities such as agriculture, farming, industrial parks, hydropower, rural tourism and so forth without changingtheir use purposes, and the resulting asset income can be converted to shares quantization to poor villages andpoor households. Cooperate with the local to explore and promote the rights confirmation of land managementwith accordingly converting to shares, guide poverty-stricken households, especially those who are incapable ofworking, 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 incomeaccording to shares.
3. Cooperation in training and employment. Oriented towards enhancing the ability of the poor to get employment,assist to carry out the all kinds of policy training, promote the relevant vocational and technical colleges to recruitchildren 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 developmentenvironment 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 andtreatment and the cleaning system; improve village cultural and leisure activities, public toilets, landscaping andgreening 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
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
will vigorously promote the poverty alleviation through education so that all children in the villages-under-aid canreceive a good education, increase the education subsidies for poor families, ensure that children from poorhouseholds do not drop out of school due to poverty, pay attention to left-behind children, and build left-behindchildren's service centers.
6. Help to improve the environment. Cooperate with the local to raise funds by multi-channels to helpimpoverished households complete the renovation of dilapidated buildings and fully complete the task of assistinglow-income people in housing reconstruction, assisting in the improvement of domestic garbage disposal, sewagetreatment, public toilets and greening and beautification of villages. We will use the entire village as a platform toaccelerate the improvement of production and living conditions of poor villages, and steadily promote theconstruction 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 andpoverty alleviation both at the same time, with the party building to help the poor and with the poverty alleviationto promote the party building. Organize and hold regular meetings of the "two committees" meetings of thevillages 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 thecadres of the "two committees" of the poor villages to lead the people out of poverty and run to health; It’snecessary to constantly strengthen the development consciousness, market awareness, teaching ideas, teachingmethods 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 “Thenever-leaving Task Force on Poverty Alleviation”, thus to lay the foundation for the sustainable and healthydevelopment of poor villages.
8. Lead multiple parties to participate in. Guide industries, enterprises, social organizations and individuals toparticipate in poverty alleviation, and encourage companies to actively undertake social responsibilities, fullystimulate 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 constructionof villages and enterprises.
9. Strengthen the publicity for poverty alleviation. Adhere to the guidance of public opinion, comprehensivelypublicize and accurately interpret the decision-making and deployment of “Precision poverty alleviation andPrecision poverty reduction”, strengthen the ideological education and guidance, and strengthen the cadres and themasses' centripetal force and cohesion in poverty alleviation work and the development work. Guide the villagersto change the obsolete customs and habits, stimulate the impoverished people to work hard and develop goodenthusiasm, and create a positive atmosphere for self-reliance, hard-working and getting rid of poverty andbecoming better off.
（2）Precise poverty alleviation
During the reporting period, the company actively implemented the overall deployment and arrangement ofGuangdong province's work on "targeted poverty relief and targeted poverty alleviation", actively invest human,material and financial resources in poverty relief work, and its six subsidiaries, namely Yuejiang company,Maoming Power Plant, Zhanjiang company, Dapu company and Zhanjiang wind power company, actively carriedout targeted poverty relief assistance work.I. Counterpart assistance of Yuejiang Company on Mi Xiashui village, Quan’an Town, Nan Xiong City2020 is a decisive year to win the fight against poverty. Under the correct leadership of the Office of theMunicipal Government and the Leading Group for Accurate Poverty Relief in the New Period of Yuejiang PowerGeneration Company, the targeted poverty relief team stationed in Mixiashui Village thoroughly implemented
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
General Secretary Jin Ping's strategic idea on poverty relief and development in the new period, fullyimplemented the relevant work arrangements of the central government, provinces, cities and counties, closelyadhered to the goal of poverty alleviation in 2020, made precise policy, self-pressurized and comprehensivelytackled key problems, and accelerated the implementation progress of poverty alleviation projects to ensurewinning the fight against poverty.(I) Ensure party building and promote poverty alleviation. It continues to thoroughly implement the importantguiding spirit put forward by General Secretary Xi Jinping at the Central Poverty Relief and Development WorkConference, "Well ensuring party building to promote poverty alleviation is an important experience forpoverty-stricken areas to get rid of poverty and become rich", and organically combines the consolidation of ruralgrassroots party organizations with poverty alleviation. Firstly, strengthen the political consciousness. Carry outin-depth study of Xi Jinping's new era of socialism with Chinese characteristics and the spirit of the 19th NationalCongress of the Communist Party of China, as well as the important instructions and comments of GeneralSecretary Xi Jinping, actively adopt the way of "going out" and "inviting in" to carry out the study of partybuilding knowledge, persist in arming the mind with the advanced thoughts of the Party, and promote theory toguide practice. Secondly, strengthen the guidance of party building. Centering on the deployment requirements ofthe central government, provinces, cities and counties on the Party's construction to promote poverty alleviation,and in combination with the actual situation in Nanxiong City and Quan'an Town, efforts are focused on "graspingpoints, expanding areas, improving quality and strengthening capabilities" to give full play to the exemplary andleading role of Party members, and to promote the village collective economy to blossom and grow. Thirdly, payspecial attention to the co-construction of branches. Organize and help the Party branch of the unit to carry out theco-construction work of Party branch in Mixiashui Village, and promote the cohesion and combat effectiveness ofthe village grass-roots party organizations to a higher level.(II) Earnestly well ensure poverty alleviation and consolidation. In strict accordance with the working principle of"poverty alleviation by following policies and undertaking responsibilities", continue to track and understand theproduction and living conditions of poor households in Mixiashui Village, and focus on the basic requirements of"one policy for each household" to well ensure poverty alleviation and consolidation for poor households; Inguiding the Industry development of poor households, it is necessary to give full play to the resource advantagesof Mixiashui Village in a down-to-earth manner, such as enhancing the planting and breeding of rice, peanut andpoultry, and to plan new ideas in combination with the new situation, actively explore and introduce characteristicindustries suitable for large-scale planting and breeding, and give full play to the building function of the industryto ensure that poor households can get rid of poverty stably without returning to poverty.
3. Implement industrial assistance. Firstly, continue to support the leading industries of high-quality rice, andpromote the "company+growers" model. Secondly, push forward the passion fruit industry for poverty relief. In2018, it completed a 10-year land transfer contract of about 260 mu, which promoted the construction of passionfruit planting demonstration base project in Mixiashui Village by Quan'an Economic and Trade DevelopmentCorporation, and led 10 poor households to carry out passion fruit planting, initially forming a "one village, oneproduct" industry with the characteristics of Mixiashui Village. In 2019 and 2020, relying on the passion fruitplanting demonstration base in Mixiashui Village, it actively guided and helped 10 poor households to carry outexcellent passion fruit planting, provided technical guidance to growers on a regular basis, and operated throughthe business model of "company+poor households", performed planting and management according to unifiedstandards, and adopted guaranteed reserve price for acquisition. Thirdly, support the development of breedingprograms, encourage active employment, and implement the policy of "Award instead of Compensation". In 2020,a total of about RMB 100,000 was invested in "Award instead of Compensation". Meanwhile, it implementedsupporting measures matching with Nanxiong City's "Award instead of Compensation", and guided poor
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
households to actively develop production projects such as rice, peanut planting and poultry breeding, andinvested about RMB 65,000 to support production.(IV) Strive to well ensure poverty relief through consumption. Adhere to the consumption poverty relief policyas the fulcrum to increase the villagers and village collective income, rely on the platform of Mixiashui VillageZhongzhi Cooperative to smooth sales channels and to create order agriculture, make good use of the productionand sales model of "company+cooperative+poor households (farmers)" to make bigger and stronger leadingindustries for high-quality rice, passion fruit and peanuts in Mixiashui Village, and realize poverty alleviation byindustry-driven hard work; Explore investing poverty relief funds to purchase a batch of agricultural productsprocessing and packaging equipment, concentrate on purchasing and packaging the agricultural products of poorhouseholds and villagers in Mixiashui Village, further enhance the value of agricultural products, and activelyconnect with individuals, government agencies and social organizations, make efforts to publicize the agriculturalproducts in Mixiashui Village, expand the sales volume of products, and earnestly implement the policy ofpoverty relief by consumption.
5. Promote the construction of new socialist countryside. Taking the opportunity of comprehensively dismantlingdilapidated mud brick houses, it worked hard to ensure the "Three Clearings, Three Demolitions and ThreeRenovations" in Mixiashui Village. A total of 483 dilapidated mud brick houses were demolished, with a total areaof 14,722 square meters; In June 2020, the renovation of the outer facade of houses along the village roads and thebeautification, greening and hardening work along the roads had been completed, and the construction of the fineroute of the new rural demonstration villages along the provincial roads in Mixiashui Village has achieved initialsuccess.
6. Promote infrastructure construction. Firstly, invest RMB 650,000 (including RMB 50,000 donated by YuejiangPower Generation Company in 2019) to organize the implementation of the comprehensive improvement projectof public service infrastructure in Mixiashui Village in 2020. Continue to work on the construction of farmlandwater conservancy projects and consolidate the foundation of agricultural development in Mixiashui Village;Continue to improve the village road hardening project, and build 9 village road meeting lanes based on the actualplan. Secondly, improve and upgrade the office environment of the village party-mass service center. Invest RMB45,000 to renovate the surrounding areas of the party-mass service center; Invest RMB 92,000 to buy officeequipment such as office tables, chairs and computers to improve office conditions; Seek special funds of RMB300,000 from Nanxiong to upgrade the village party-mass service center.
7. Focus on improving village collective income. In 2020, it made an overall investment of RMB 1.14 million(including RMB 320,000 of "6.30" directional donation from Yuejiang Power Generation Company in 2018) toinvest in Sanrong Hakka Sauerkraut Industry Construction Project in Nanxiong City, so as to increase the villagecollective economic income and consolidate and enhance the effectiveness of assistance.
8.Implement the "three guarantees" policy. Fully implement the "three guarantees" policy and fully implement thepoverty relief education guarantee for poor households in accordance with the policy requirements; Solidlypromote the full coverage of medical security, fully implement the medical security policy, and subsidize 41 poorhouseholds to purchase urban and rural medical insurance; Well ensure people's livelihood security, continue toimplement the living materials security project for poor households, and provide appropriate living materialssecurity to all poor households in a timely manner to help poor households improve their lives; Continue toimplement the warm condolence program for poor households, and carry out warm condolence activities to allpoor households when appropriate. In January 2020, Yuejiang Power Generation Company distributed SpringFestival condolences to 41 poor households according to the standard of RMB 200 per household, and investedRMB 0.82 million; In May, 2020, according to the standard of RMB 300 per household, it provided 11poverty-stricken households with a total solatium of RMB 3,300 during the epidemic period.
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
II.Assistance provided by Maoming Power Plant to Xinbei Village, Shalang Town, Dianbai District,Maoming CityIn 2020, Maoming Municipal People's Congress Standing Committee, Guangdong Energy Maoming ThermalPower Plant Co., Ltd. and Maoming Branch of Guangfa Bank resolutely implemented the series ofdecision-making arrangements of the CPC Central Committee and the State Council on poverty alleviation battleand the spirit of General Secretary Xi Jinping's series of important speeches on poverty relief work, fullyimplemented the general arrangements of provincial and municipal poverty alleviation work, and made decisiveachievements in poverty alleviation in Xinbei Village, Shalang Town, Dianbai District. By November 2020,Xinbei Village has reached the exit standard from relatively poor villages, with 138 people in 45 poor householdshave all achieved the "Eight Haves" and it has gone through the exit formalities as scheduled. In 2020, the annualper capita disposable income of poor households in Xinbei Village reached RMB 17,819, exceeding the annualper capita disposable income standard of RMB 8,951 for poor households with labor in poverty-stricken villagesin 2020.(I) The leaders attach great importance to, carefully guide, and work together to tackle targeted poverty alleviation
Leaders at all levels have attached great importance to the accurate assistance work in Xinbei Village. DengYongming, deputy director of the Standing Committee of the Municipal People's Congress, has visited the villagethree times for investigation and guidance, and Lin Zhenguang, deputy director in charge, has led the team manytimes to the village for investigation and guidance so as to promote the targeted poverty relief work. The mainleaders of the three assistance units held several joint meetings to discuss and solve major problems and decide onmajor issues. They also organized the responsible persons to visit the linked households to follow up and promotethe aid projects during the Spring Festival, Mid-Autumn Festival and other holidays. At the same time, theprogress of poverty alleviation work, existing problems and the next work plan are regularly reported on amonthly basis.(II) Steady progress, precise implementation, with focus on the implementation of income and poverty alleviationmeasuresXinbei Village has implemented a combination of "short-term, medium-term and long-term" income-increasingprojects, namely, a short-term household vegetable basket project, a medium-term agricultural industrial parkproject and a long-term photovoltaic power generation project.Firstly, implement the family vegetable basket project. The main purpose is to assistance units set up a subsidyfund to provide seedlings and means of production and to assist them in selling agricultural products. The povertyrelief team stationed in the village mobilized and assisted poor households to carry out decentralized planting andbreeding, the assistance units provided baby chicks, and the open-source planting cooperatives assisted in signingthe sales guaranteed recycling agreement and selling agricultural products. From 2017 to 2019, the assistanceunits provided a total of RMB 120,000, and distributed 3,760 Xinyi Huaixiang chickens and feeds to poorhouseholds with work willingness and ability, thus increasing the income of poor households by RMB 130,000. In2020, the assistance unit invested another RMB 28,000 to buy 1,000 Xinyi Huaixiang chickens to distribute to thepoor households with work willingness and ability, and it is estimated that the income of poor households can beincreased by RMB 50,000.Secondly, build an agricultural industrial park. Adopt the mode of "cooperative+base+poor households", run byopen source planting cooperatives, and invest more than RMB 400,000 to build a 50-acre red heart guava plantingbase. The first batch of fruits were picked in May 2020, and by August 2020, the accumulated sales reached about3,500 kg, with a sales income of about RMB 9,000. After pruning and dwarfing in August, the fruits can be picked
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
and marketed in mid-November, and it is planned to sell 15,000 Jin during the year. In the next two years, the fruitoutput will gradually increase, and will increase to 100,000 kg/year, and the profit will be RMB 30,000 per year.Thirdly, build photovoltaic power stations for poverty alleviation. Adopting the model of"company+cooperative+poor households", Maoming Dianbai District Open Source Planting Cooperativecooperated with Maoming Commercial Power Bairizhao Photovoltaic Energy Co., Ltd., and invested the poorhouseholds' financial pooling funds of RMB 999,000 in 2017 to build a 200KW photovoltaic poverty relief powerstation on the roof of the Party-mass Service Center of Xinbei Village Committee, the teaching building roof ofXinbei Primary School and the on back mountain, with a cooperation period of 20 years. The project achievedgrid connection for power generation before July 20, 2018. The annual fixed income is RMB 160,000 from 2018to 2022 and RMB 100,000 from 2023 to 2037. In 2018-2019, poor households with work ability received a totaldividend of RMB 1,200/person.(III) Led by party building, with foundation strengthened, strive to play the role of a fighting fortressWith the construction of the village branch as the core, the first secretary stationed in the village and the povertyrelief team leader took the lead in earnestly studying the spirit of the Nineteenth National Congress of theCommunist Party of China, the Second, Third and Fourth Sessions of the Nineteenth Central Committee, carryingout the theme education activities of "Remain true to the original aspiration, keep in mind the mission", fullymobilizing the enthusiasm of Party members, and actively supporting the daily work of the "two committees" inthe village, the targeted poverty relief work and the new rural construction work. Pay close attention to the teamstyle construction, organize the village two committees team to learn to oppose the "four conducts" requirementand the central eight regulations, and build a "people-oriented, pragmatic and honest" village "two-committee"team. Strengthen the education of purpose, temper the party spirit of the cadres of the "two committees" in thevillage, and make the cadres of the "two committees" in the village have higher prestige among the masses, whichis conducive to the smooth implementation of various tasks.III. Counterpart assistance of Zhanjiang Company on Waiyuan Village, Nanxing Town, Leizhou CityIn 2020, under the unified arrangement and leadership of the company and the poverty relief offices of Zhanjiangand Leizhou, the Company earnestly implemented the relevant regulations of the provinces, cities, counties andtowns. The poverty relief staff worked hard and actively organized human, material and financial resources toinvest in the poverty relief work. The results are as follows:
1. By 2020, all poverty relief projects have been completed (four projects: the first one is photovoltaic powergeneration. The second is to invest in Guangdong Yujie Company; The third is to invest in Leizhou herbivorouspig project; And the fourth is to invest in basic investment companies) and have received generated earnings.
2. RMB 860,000 of unit poverty relief funds have be received, and RMB 860,000 has been used to build ninepublic welfare projects for villagers.
3. According to the unified arrangements of superiors and the actual situation of Waiyuan Village, it assisted thevillage committee in party building. Firstly, strengthen the construction of the branch of the Village Committee,actively mobilize young people to join the Party, and constantly add new forces to the party; Secondly, strengthenthe party building, hold a party member conference on July 1, review the oath of party joining, enhance the partyspirit of party members, and keep in mind the purpose of serving the people; Thirdly, strengthen the education ofParty members, and organize them to carry out education of "two studies, one action, four consciousnesses, fourself-confidences, two maintenance" and "remain true to the original aspiration, keep in mind the mission", so as toimprove their ideological awareness, policy awareness and enthusiasm for serving the masses.
4. It held monthly meetings of village cadres to discuss the implementation of poverty relief work.
5. It followed up completed investment projects to ensure that the income of poor households was in place.
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
6. It invested in the construction and completed the construction of activity venues for five villagers' groups.
7. It completed education and poverty relief work assigned by unit leaders.
8. It encouraged young people who newly graduated from school and failed to get admitted by university to workin other places to earn money, to increase the income of poor households.
9. It provided consolation to poor households during the Spring Festival.
10. It checked and tracked the actual implementation of the "three guarantees" for poor households.
11. It assisted village committees in drug control, eliminating evils, rural revitalization and human settlements.
12. Prevention and control of COVID-19. Firstly, well ensure propaganda and ask the village to cooperate andjointly prevent and control the "COVID-19"; Secondly, boil the Chinese herbal medicines for villagers and sendthem to natural villages; Thirdly, set up checkpoints at the entrance of each natural villages to check the physicalcondition of the people entering the village. Fourthly, carry out disinfection in all natural villages. No suspiciouscases were found in Waiyuan Village.As of December 2020, there were 78 poor households with 219 people registered in the Waiyuan villagecommittee, all of whom have been lifted out of poverty.IV. Counterpart assistance of Dapu Company on Xiamu Village, Fenglang Town, Dapu County, Meizhou CityIn 2020, Dapu Power Generation Company continued to send party building instructors and Jianghai Sub-districtOffice of Haizhu District of Guangzhou City to assist Xiamu Village, Fenglang Town, Dapu County, MeizhouCity, and carried out the following aid work:
1. Solidly carry out grass-roots party building: invest RMB 100,000 to build a cultural corridor, and RMB 29,900to build a publicity column for party building and system on the wall in village committees.
2. Actively promote the people's livelihood project: invest RMB 36,000 to carry out the farmland and mountainpond restoration project in Ma'anshan.
3. Carry out activities to celebrate the 98th anniversary of the Party founding, offer condolences to 16 60-year-oldparty members, and organize Party Day activities with the theme of "Celebrating July 1st and Keeping in Mindthe Mission".
4. Invest RMB 5,400 in Spring Festival, to offer condolences to poor party members, old party members andseriously ill party members.
5. Well ensure the prevention and control of COVID-19 and the work of "Three Clearings, Three Demolitions andThree Renovations".
6. By the end of December 2020, after dynamic adjustment, there are currently 67 poor households (including 41poor households with subsistence allowances, 15 poor households with five guarantees and 11 general poorhouseholds) and 138 poor people, all of whom have been lifted out of poverty stably.V. Counterpart assistance of Zhanjiang Wind Power Co., Ltd. on Houhai Village, Xinliao Town, Xuwen CountyZhanjiang Wind Power Company actively responded to the call of the CPC Central Committee, fulfilled thecorporate mission of "being virtuous and capable, benefiting both the nation and the people" and fulfilled its socialresponsibilities. After five years' efforts, by the end of 2020, the two designated poverty relief villages ofZhanjiang Wind Power Company, Shuitou Village, Xuwen County, Zhanjiang City and Houhai Village, XuwenCounty, have all achieved poverty alleviation, and 189 poor households with files and cards have all been liftedout of poverty. Zhanjiang Wind Power Company will always adhere to the people-centered development thought,create clean energy for the people's better life, consolidate the achievements of poverty alleviation with the localpeople, continue to promote the effective connection between comprehensive poverty alleviation and rural
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
revitalization, and contribute to the realization of the goal of "two hundred years" and the Chinese dream of thegreat rejuvenation of the Chinese nation.
(3)Targeted Poverty Alleviation Result
Index
| Index | Measurement unit | Quantity / Status |
| I. General situation | —— | —— |
| There into： 1.Capital | In RMB 10,000 | 259.63 |
| 2. Cash supplies | In RMB 10,000 | 2.82 |
| 3. Ecological protection to poverty alleviation | person | 1,315 |
| II.Breakdown Input | —— | —— |
| 1. Poverty alleviation by industrial development | —— | —— |
| Among them: 1.1 Project type of poverty alleviation by industrial development | —— | Agricultural and forestry industry poverty alleviation |
| 1.2 Number of poverty alleviation projects in industrial development | a | 5 |
| 1.3 Investment amount of industrial development poverty alleviation project | In RMB 10,000 | 11.8 |
| 1.4 The number of poverty population who had been helped to create a file | person | 259 |
| 2. Poverty alleviation by transfer employment | —— | —— |
| Among them: 2.1 Investment amount of vocational skill training | In RMB 10,000 | 0 |
| 2.2 Number of people of vocational skill training | person | 0 |
| 2.3 Quantity of employment of poverty population who had been helped create a file | person | 43 |
| 3. Poverty alleviation by relocation | —— | —— |
| Thereinto： 3.1 Employment of relocated households | person | 0 |
| 4. Educational poverty alleviation | —— | —— |
| Among them: 4.1 Investment amount of subsidizing poverty students | In RMB 10,000 | 10 |
| 4.2 Number of subsidized poverty students | person | 52 |
| 4.3 Improving the investment amount for education in poor areas | In RMB 10,000 | 0.3 |
| 5. Health poverty alleviation | —— | —— |
| Among them: 5.1 Investment amount for medical and health resources in poor areas | In RMB 10,000 | 0 |
| 6. Ecological protection poverty alleviation | —— | —— |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
6.2 Investment amount
| 6.2 Investment amount | In RMB 10,000 | 0 |
| 7. Guarantee of all the details | —— | —— |
| Among them: 7.1 Investments on stay-at-home children, women and elderly | In RMB 10,000 | 0 |
| 7.2 Number of stay-at-home children, women and elderly in aid | Person | 0 |
| 7.3 Investments on poor & disable people | In RMB 10,000 | 0 |
| 7.4 Number of poor & disable people in aid | person | 0 |
| 8. Social poverty alleviation | —— | —— |
| Including: 1 Investments on cooperation between West China and East China | In RMB 10,000 | 1.02 |
| 8.2 Investments on one-to-one anti-poverty | In RMB 10,000 | 86.63 |
| 8.3 Investments from anti-poverty charity fund | In RMB 10,000 | 0 |
| 9. Other projects | —— | —— |
| Among them: 9.1 Number of project | a | 10 |
| 9.2 Investment amount | In RMB 10,000 | 100.79 |
| 9.3 Number of poverty population who had been helped to create a file | person | 958 |
| III. Awards (Content and level) | —— | —— |
（4）Subsequent targeted poverty alleviation program
The Company will continue to implement the relevant regulations of the province, city and county on targetedpoverty relief, adapt to local conditions, and well ensure the targeted poverty relief:
(I) Further consolidate the effectiveness of poverty alleviation. Firstly, well ensure system construction, furtherimprove the measures for poverty relief assets management, and ensure the safety and effective management ofpoverty relief assets formed by higher-level poverty relief funds and assistance unit funds. Secondly, seize theincome-increasing projects, ensure the continuous operation of the project, and continuously generate revenue.According to the work requirements of higher authorities, some households under poverty alleviation can beallocated with resources in a prioritized manner to support further development. Thirdly, implement archivesconstruction, further improve paper and electronic archives as required, and keep precious historical materials.(II) Vigorously implement and promote the rural revitalization strategy. According to the new rural planning anddesign scheme, make full efforts in village road hardening, sewage treatment, garbage treatment, centralized watersupply, beautification, greening and lighting, etc., gradually implement the project construction, complete theconstruction tasks with high quality, and further improve the living environment of the whole village. In addition,further plan and formulate village rules and regulations, govern the village by the system, fully utilize the role ofthe system, and promote the construction of rural civilization.(III) Further strengthen and improve the work of party building. Study and implement the spirit of the 19th
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
National Congress of the Communist Party of China, the Second, Third, Fourth and Fifth Plenary Sessions of the19th Central Committee and the spirit of Comrade Xi Jinping's series of important speeches, and implement thespirit of the meeting into the work; Assist in building a team of cadres of the two village committees who areentrepreneurial and efficient for the people; Fully utilize the leading role of the village party branch secretary andlead the whole village to carry out the work well; Further strengthen the education of honesty, build a strongideological defense line against corruption and defection, and put an end to corruption during targeted povertyrelief.
3. Information on environmental protection
Listed company and its subsidiary belongs to the key pollution enterprise listed by Department of EnvironmentalProtection
√ Yes□No
Company orsubsidiaryname
| Company or subsidiary name | Main pollutant and specific pollutant name | Emission way | Emission port number | Emission port distribution condition | Emission concentration | Implemented pollutant emission standards | Total emission | Verified total emission | Excessive emission condition |
| Shajiao A power plant | Smoke | Concentrated emission through chimney | 1 | Within the factory | 1.37 | Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011) | 14.82 | Not approved | No |
| Shajiao A power plant | SO2 | Concentrated emission through chimney | 1 | Within the factory | 19.50 | Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011) | 226.85 | Not approved | No |
| Shajiao A power plant | NOX | Concentrated emission through chimney | 1 | Within the factory | 34.71 | Emission Standard of Air Pollutants for Thermal Power Plants | 399.50 | Not approved | No |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
(GB13223-2011)
| (GB13223-2011) | |||||||||
| Guangdong Dapu Power Generation Co., Ltd. | Smoke | Concentrated emission through chimney | 2 | Within the factory | 1.04 | Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011) | 22.878 | 593 | No |
| Guangdong Dapu Power Generation Co., Ltd. | SO2 | Concentrated emission through chimney | 2 | Within the factory | 13.34 | Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011) | 294.077 | 1447 | No |
| Guangdong Dapu Power Generation Co., Ltd. | NOX | Concentrated emission through chimney | 2 | Within the factory | 32.68 | Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011) | 720.712 | 1502 | No |
| Zhanjiang Zhongyue Energy Co., Ltd. | Smoke | Concentrated emission through chimney | 2 | Within the factory | 1.12 | Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011) | 16 | 480 | No |
| Zhanjiang Zhongyue Energy Co., Ltd. | SO2 | Concentrated emission through chimney | 2 | Within the factory | 14.70 | Emission Standard of Air Pollutants for Thermal | 209.32 | 1200 | No |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
PowerPlants(GB13223-2011)
| Power Plants (GB13223-2011) | |||||||||
| Zhanjiang Zhongyue Energy Co., Ltd. | NOX | Concentrated emission through chimney | 2 | Within the factory | 26.22 | Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011) | 373.22 | 1587 | No |
| Guangdong Shaoguan Yujiang Power Generation Co., Ltd. | Smoke | Concentrated emission through chimney | 2 | Within the factory | 1.38 | Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011) | 30.62 | 717.78 | No |
| Guangdong Shaoguan Yujiang Power Generation Co., Ltd. | SO2 | Concentrated emission through chimney | 2 | Within the factory | 16.18 | Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011) | 357.66 | 2303.55 | No |
| Guangdong Shaoguan Yujiang Power Generation Co., Ltd. | NOX | Concentrated emission through chimney | 2 | Within the factory | 33.80 | Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011) | 746.76 | 2809.07 | No |
| Zhanjiang Electric Power Co., | Smoke | Concentrated emission through | 2 | Within the factory | 1 | Emission Standard of Air | 32 | 32 | No |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
Ltd.
| Ltd. | chimney | Pollutants for Thermal Power Plants (GB13223-2011) | |||||||
| Zhanjiang Electric Power Co., Ltd. | SO2 | Concentrated emission through chimney | 2 | Within the factory | 5 | Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011) | 382 | 382 | No |
| Zhanjiang Electric Power Co., Ltd. | NOX | Concentrated emission through chimney | 2 | Within the factory | 29 | Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011) | 737 | 737 | No |
| Guangdong Yudean Jinghai Power General Co., Ltd. | Smoke | Concentrated emission through chimney | 4 | Within the factory | 2.27 | Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011) | 127.6 | 1770 | No |
| Guangdong Yudean Jinghai Power General Co., Ltd. | SO2 | Concentrated emission through chimney | 4 | Within the factory | 19.96 | Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011) | 1119.3 | 6502 | No |
| Guangdong | NOX | Concentrate | 4 | Within the | 34.92 | Emission | 1958.5 | 4687 | No |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
YudeanJinghaiPowerGeneralCo., Ltd.
| Yudean Jinghai Power General Co., Ltd. | d emission through chimney | factory | Standard of Air Pollutants for Thermal Power Plants (GB13223-2011) | ||||||
| Guangdong Red Bay Power General Co., ltd. | Smoke | Concentrated emission through chimney | 4 | Within the factory | 2.38 | Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011) | 85.43 | Not approved | No |
| Guangdong Red Bay Power General Co., ltd. | SO2 | Concentrated emission through chimney | 4 | Within the factory | 9.05 | Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011) | 336.34 | Not approved | No |
| Guangdong Red Bay Power General Co., ltd. | NOX | Concentrated emission through chimney | 4 | Within the factory | 30.79 | Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011) | 1152.10 | Not approved | No |
| Guangdong Energy Maoming thermal power plant Co., Ltd. | Smoke | Concentrated emission through chimney | 2 | Within the factory | 1.46 | Emission Standard of Air Pollutants for Thermal Power Plants (GB13223- | 32 | 168.12 | No |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
2011)
| 2011) | |||||||||
| Guangdong Energy Maoming thermal power plant Co., Ltd. | SO2 | Concentrated emission through chimney | 2 | Within the factory | 13.73 | Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011) | 320.64 | 385.51 | No |
| Guangdong Energy Maoming thermal power plant Co., Ltd. | NOX | Concentrated emission through chimney | 2 | Within the factory | 31.12 | Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011) | 668.69 | 689.58 | No |
| Pinghai Power plant | Smoke | Concentrated emission through chimney | 2 | Within the factory | 1.74 | Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011) | 63.83 | 700 | No |
| Pinghai Power plant | SO2 | Concentrated emission through chimney | 2 | Within the factory | 25.05 | Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011) | 714.24 | 1750 | No |
| Pinghai Power plant | NOX | Concentrated emission through chimney | 2 | Within the factory | 38.76 | Emission Standard of Air Pollutants for Thermal Power | 1013.52 | 3500 | No |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
Plants(GB13223-2011)
| Plants (GB13223-2011) | |||||||||
| Qianwan LNG Power plant | NOX | Concentrated emission through chimney | 3 | Within the factory | 10.87 | Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011) | 180.37 | 1312.5 | No |
| Huizhou LNG Power Plant | NOX | Concentrated emission through chimney | 6 | Within the factory | 25.19 | Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011) | 1244.63 | 2033.1 | No |
| Bohe Company | Smoke | Concentrated emission through chimney | 3 | Within the factory | 0.43 | Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011) | 0.758 | 72 | No |
| Bohe Company | SO2 | Concentrated emission through chimney | 3 | Within the factory | 4.15 | Emission Standard of Air Pollutants for Thermal Power Plants (GB13223-2011) | 6.53 | 974 | No |
| Bohe Company | NOX | Concentrated emission through chimney | 3 | Within the factory | 28.17 | Emission Standard of Air Pollutants | 49.69 | 1195 | No |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
for ThermalPowerPlants(GB13223-2011)
Prevention and control of pollution facilities construction and operationWithin the report period, the company responds positively to requirements of the newest environmental protectionpolicies, strengthens the operation adjustment of the desulfurization and denitrification system and equipmentmaintenance management, intensifies the transformation of the energy-saving technologies and dust-cleaningequipment, improves the equipment operation efficiency, decrease the smoke and dust discharging concentrationand guarantee compliance of each pollutant emission with the national and local environmental protectionrequirements. In accordance with the national environmental protection plan, each power plant of the companyimplements positively requirements of Coal-fired Power Energy Saving and Emission Reduction Upgrading andTransform Action Plan (2014-2020) and National Energy Administration Comprehensive Division Notice aboutDecomposition and Implementation of Coal-fired Power Energy Saving and Emission Reduction Upgrading andTransform Target Tasks, etc. and promotes the ultra-low emission transformation project. At present, thecompany's subordinate coal-fired units have all completed ultra-low emission transformation work, and theemission concentration of export flue gas pollutants has been greatly reduced on the basis of the originalenvironmental emission standards, reflecting the company's determination to fulfill its social responsibilities andthe responsibility to protect the environment mission.Conditions of environmental impact assessment and other environmental protection administrative licensing ofconstruction projectsThe company's construction projects that have been approved by government agencies have all undergoneenvironmental impact assessments and have obtained other necessary environmental protection administrativelicenses.Emergency plan for emergency environmental incidentsCombining with the Environmental Protection Law of the People's Republic of China and the Opinions of theMinistry of Environmental Protection on Strengthening Environmental Emergency Management Work and otherlaws and regulations on the monitoring of environmental risks, the company’s subordinate power generationenterprises have formulated the Emergency Plan for Emergency Environmental Incidents according to their actualconditions, which has standardized and improved the handling of emergent environmental events from the aspectsof environmental accident risk analysis, emergency command organization and responsibilities, disposalprocedures, and disposal measures, improved the ability to respond to unexpected environmental events, andensured that after an outbreak of an environmental incident, the company can organize emergency rescue work ina timely, orderly and efficient manner to prevent pollution of the surrounding environment, minimize the damageand social harm caused by the incident, maintain social stability, and protect public health and property safety.Environmental self-monitoring programDuring the reporting period, the company’s subordinate power generation companies organized annualenvironmental self-monitoring programs in accordance with the national Administrative Measures on AutomaticMonitoring of Pollution Sources (No. 28 order of State Environmental Protection Administration) and other lawsand regulations, and conducted self-monitoring of the environment in accordance with the monitoring program,
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
and announced its own monitoring results in Guangdong Province's key pollution source regulatory informationplatform and the national pollution source monitoring information and sharing platform. Both the announced rateand completion rate had reached 100%.Other environmental information that should be disclosedNone.Other environmental protection related informationNoneThe Company shall comply with the disclosure requirements of Shenzhen Stock Exchange Industry Information DisclosureGuidelines No.15-Listed Companies Engaged in Power-related Business
1. The Company strictly abides by the Environmental Protection Law of the People's Republic of China, AirPollution Prevention Law of the People's Republic of China, Water Pollution Prevention Law of the People'sRepublic of China and Law of the People's Republic of China on Prevention and Control of EnvironmentalPollution by Solid Waste, and the current environmental protection policies and regulations have no impact on theCompany. In 2020, the operating expenses required by the Company's thermal power plants to implementenvironmental protection policies and regulations are mainly to purchase limestone and denitration materials,totaling about RMB 175 million.
2. In 2020, according to the standard, the coal consumption for comprehensive power supply of the Company'sthermal power plants is 301.59 g/kWh of coal, the sulfur dioxide emission performance value is 0.055g/kWh,nitrogen oxide emission performance value is 0.125g/kWh, and soot emission performance value is 0.006g/kWh.Where, the commissioning rate of desulfurization device is 100%, and the average desulfurization efficiency is
99.15%; The average operation rate of denitration device is 99.79%, and the average denitration efficiency is
84.42%; The operation rate of dry dust removal device is 100%, and the average dust removal efficiency is
99.88%.
XIX. Other material events
□Applicable √ Not applicable
No such cases in the reporting period.XX. Material events of subsidiaries
√Applicable □ Not applicable
1.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 onNovember 14, 2016 (No. 019-2016 Yuehai Executive Punishment), and the punishment decision “ordered Pinghaito return the illegally occupied sea areas and restore the sea areas to their original state, and sentenced 10 timesfines 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 protectionwork of Pinghai power plant without approval and did the reclamation of 16.3947 hectares and its behaviorviolated the provisions of Article 3 of the Law of the People's Republic of China on the Administration of the Useof Sea areas. Based on the audited net profit of RMB 3.238 billion attributable to the shareholders of the parentcompany in 2015, the amount involved in the above-mentioned administrative penalty affects the net profit
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
attributable to shareholders of the parent company of about 77.4 million-which accounts for 2.39% of the netprofit of the most recently audited period.Pinghai Power Plant disagreed with the punishment measures of the “Administrative Punishment Decision" andapplied 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 administrativereconsideration, which stated “According to the provisions of Item 1 of Paragraph 1 of Article 28 of theAdministrative Reconsideration Law of the People's Republic of China, the Administrative Punishment Decision(No. 019-2016 Yuehai Executive Punishment) made by the respondent’s Provincial Department of Ocean andFisheries is maintained.” Pinghai Power Plant disagreed with the aforementioned administrative reconsiderationdecision and filed an administrative litigation to the Guangzhou Maritime Court on July 18, 2017. On December28, 2017, the Guangzhou Maritime Court issued an administrative decision, stated “In accordance with theprovisions of Article 69 of the Administrative Procedure Law of the People's Republic of China, the decision is asfollows: the claim of the plaintiff Guangdong Huizhou Pinghai Power Plant Co., Ltd was rejected”. Pinghai PowerPlant disagreed with the verdict, and lodged an appeal to the Guangdong Provincial Higher People's Court againstthe verdict.On August 23, 2019, the higher people's court of Guangdong province issued the Administrative Judgment (CaseNo.: (2018) YXZ No. 409). The provincial high court held that the original court's judgement on that theAdministrative Penalty Decision No. 019 [2016] issued by the provincial ocean and fishery department and theAdministrative Reconsideration Decision No. 48 [2017] issued by the provincial government were both legal, andthe lawsuit request of Pinghai Power Plant Co., Ltd. was rejected were made based on sufficient grounds andwithout any impropriety. The court upheld the judgment. According to Article 89, Paragraph 1 (a), of theadministrative procedure law of the People's Republic of China, the judgment is as follows: the appeal is rejectedand the original judgment is upheld. The acceptance fee for the second trial case, 100 yuan, shall be borne by theappellant, Guangdong Huizhou Pinghai Power Plant Co., Ltd. The case is final. "On February 20, 2020, Pinghai Power Plant applied to the Supreme People's Court for a retrial of the case, whichwas accepted by the Supreme People's Court. On June 28, 2020, Pinghai Power Plant applied to the SupremeCourt to withdraw its retrial application. On July 6, 2020, the Supreme Court ruled that the retrial applicantGuangdong Huizhou Pinghai Power Plant Co., Ltd. was allowed to withdraw the retrial application.The Company has included the above penalty amount into the non-recurring profit and loss in 2016 according tothe Decision on Administrative Penalty (YHZCF [2016] No.019), which affected the reduction of net profitattributable to shareholders of the parent company by about 77.4 million yuan in 2016. Pinghai Power Plant haspaid the fine according to the judgment. According to the Agreement on Issuance of Shares and Purchase ofAssets signed by Guangdong Energy Group and the Company in 2012, Guangdong Energy Group willcompensate the Company according to the results of the above events and the actual losses caused by theseevents.
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 andFishery Bureau on November 13, 2018. The act of illegally occupying 1.2813 hectares of sea area by PinghaiPower Plant to construct a sand barrier violated the provisions of the second paragraph of Article 3 of the Law ofthe People's Republic of China on the Use of Sea Areas and the decision was that "It is ordered to return theillegally occupied sea area, restore the sea area to its original state, and imposed an administrative penalty of RMB11,531,700". Pinghai Power Plant refuses to accept the punishment measures in the Decision on AdministrativePenalty and filed an application for administrative reconsideration with Huidong County People's Government.
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
On April 23, 2019, Huidong County People's Government made the Decision on Administrative Reconsiderationto maintain the administrative penalty decision made by Huidong County Oceanic and Fishery Bureau. On April24, 2019, Pinghai Power Plant filed an administrative lawsuit with Guangzhou Maritime Court. The GuangzhouMaritime Court held a hearing on June 12, 2019 and has made no judgment so far.According to the Company's audited net profit attributable to the shareholders of the parent company of 743million yuan in 2017, the amount of the above administrative penalty affects the net profit attributable to theshareholders of the parent company of about 5,189,300 yuan, accounting for about 0.7% of the latest audited netprofit. Pinghai Power Plant refused to accept the punishment measures in the Decision on AdministrativePunishment and filed an application for administrative reconsideration.
Guangdong Electric Power Development Co., Ltd. 2020 Annual 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 | Share allotment | Bonus shares | Capitalization of common reserve fund | Other | Subtotal | Quantity | Proportion | |
| I. Share with conditional subscription | 1,897,968,946 | 36.15% | 1,179 | 1,897,970,125 | 36.15% | ||||
| 1. State-owned shares | |||||||||
| 2. State-owned legal person shares | 1,893,342,621 | 36.06% | 1,893,342,621 | 36.06% | |||||
| 3.Other domestic shares | 4,626,325 | 0.09% | 1,179 | 4,627,504 | 0.09% | ||||
| Of which：Domestic legal person shares | 4,620,666 | 0.09% | 4,620,666 | 0.09% | |||||
| Domestic natural person shares | 5,659 | 0% | 1,179 | 6,838 | 0% | ||||
| 4.Foreign shares | |||||||||
| Of which：Foreign legal person shares | |||||||||
| Foreign natural person shares | |||||||||
| II. Shares with unconditional subscription | 3,352,315,040 | 63.85% | -1,179 | 3,352,313,861 | 63.85% | ||||
| 1.Common shares in RMB | 2,553,907,040 | 48.64% | -1,179 | 2,553,905,861 | 48.64% | ||||
| 2.Foreign shares in domestic market | 798,408,000 | 15.21% | 798,408,000 | 15.21% | |||||
| 3.Foreign shares in foreign market | |||||||||
| 4.Other | |||||||||
| III. Total of capital shares | 5,250,283,986 | 100% | 5,250,283,986 | 100% | |||||
Reasons for share changed
√ Applicable □ Not applicable
On August 14, 2020, Mr. Lin Weifeng, the employee supervisor of the Company, ceased to serve as the employee
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
supervisor of the Company due to work changes, but still served as the Director of the Finance Department ofShajiao A Power Plant, a branch of the Company. As of the disclosure date of his resignation announcement, Mr.Lin Weifeng held 4,716 shares of the Company. According to the relevant provisions of the Listing Rules ofShenzhen Stock Exchange, the supervisors of listed companies shall not transfer the shares held by them withinsix months after their resignations. Therefore, the lock ratio of Mr. Lin Weifeng's holding of 4,716 shares of theCompany increased from 75% to 100%, and the number of restricted shares of the Company also increasedcorrespondingly.Approval of Change of Shares
□Applicable √Not applicable
Ownership transfer of share changes
□Applicable √Not applicable
Progress on any share repurchase:
□ Applicable √ Not applicable
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 tocommon 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 securityregulators
□ Applicable √Not applicable
2. Change of shares with limited sales condition
√ Applicable □ Not applicable
In RMB
Shareholder
| Shareholder | Number of restricted shares at the beginning | Number of restricted shares in increased this period | Number of restricted shares released in this period | Number of restricted shares at the end of the period | Reasons for sales restriction | Release date of sales restriction |
| Lin Weifeng | 3,537 | 1,179 | 0 | 4,716 | Change of employee supervisor | - |
| Total | 3,537 | 1,179 | 0 | 4,716 | -- | -- |
Ⅱ.Issuing and listing
1.Explanation of the Situation of the Security Issue(No Preferred Shares) in the Report Period
□Applicable √Not applicable
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
2.Change of asset and liability structure caused by change of total capital shares and structure
□Applicable √Not applicable
3.About the existing employees’ shares
□Applicable √Not applicable
Ⅲ.Shareholders and actual controlling shareholder
1. Number of shareholders and shareholding
In Shares
Totalnumber ofcommonshareholders at theend of thereportingperiod
| Total number of common shareholders at the end of the reporting period | 90,997 | Total shareholders at the end of the month from the date of disclosing | 92,978 | The total number of preferred shareholders voting rights (if any)(See Notes 8) | 0 | Total preferred shareholders at the end of the month from the date of disclosing the annual report(if any)(See Notes 8) | 0 | |||||||
| Particulars about shares held above 5% by shareholders or top ten shareholders | ||||||||||||||
| Shareholders | Nature of shareholder | Proportion of shares held（%） | Number of shares held at period -end | Changes in reporting period | Amount of restricted shares held | Amount of un-restricted shares held | Number of share pledged/frozen | |||||||
| State of share | Amount | |||||||||||||
| Guangdong Energy Group Co., Ltd. | State-owned legal person | 67.39% | 3,538,005,285 | 1,893,342,621 | 1,644,662,664 | |||||||||
| China Securities Finance Co., Ltd. | State-owned legal person | 2.49% | 130,882,902 | -17,979,518 | 130,882,902 | |||||||||
| Guangzhou Development Group Co., Ltd. | State-owned legal person | 2.22% | 116,693,602 | 116,693,602 | 116,693,602 | |||||||||
| Guangdong Electric Power Development Corporation | State-owned legal person | 1.80% | 94,367,341 | 94,367,341 | ||||||||||
| Li Zhuo | Domestic Natural person | 1.16% | 60,672,411 | 29,048,888 | 60,672,411 | |||||||||
| Zheng Jianxiang | Domestic Natural person | 0.47% | 24,804,886 | 1,569,988 | 24,804,886 | |||||||||
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
Harbin Hali Industry Co., Ltd.
| Harbin Hali Industry Co., Ltd. | Domestic Non-State owned legal person | 0.40% | 20,942,945 | -283,869 | 20,942,945 | ||||||
| VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND | Overseas Legal person | 0.30% | 15,855,512 | 4,099,013 | 15,855,512 | ||||||
| CHINA INT'L CAPITAL CORP HONG KONG SECURITIES LTD | Overseas Legal person | 0.29% | 15,216,066 | -100,000 | 15,216,066 | ||||||
| Harbin Daoli District Charity Foundation | Domestic Non-State owned legal person | 0.26% | 13,667,406 | 8,900 | 13,667,406 | ||||||
| Explanation on associated relationship among the aforesaid shareholders | The fourth largest shareholder Guangdong Electric Power Development Corporation is the wholly-owned subsidiaries of the largest shareholder Energy Group. These two companies have relationships; whether the other shareholders have relationships or unanimous acting was unknown | ||||||||||
| Shareholding of top 10 shareholders of unrestricted shares | |||||||||||
| Name of the shareholder | Quantity of unrestricted shares held at the end of the reporting period | Share type | |||||||||
| Share type | Quantity | ||||||||||
| Guangdong Energy Group Co., Ltd. | 1,644,662,664 | RMB Common shares | 1,644,662,664 | ||||||||
| China Securities Finance Co., Ltd. | 130,882,902 | RMB Common shares | 130,882,902 | ||||||||
| Guangzhou Development Group Co., Ltd. | 116,693,602 | RMB Common shares | 116,693,602 | ||||||||
| Guangdong Electric Power Development Corporation | 94,367,341 | RMB Common shares | 94,367,341 | ||||||||
| Li Zhuo | 60,672,411 | RMB Common shares | 60,672,411 | ||||||||
| Zheng Jianxiang | 24,804,886 | Foreign shares placed in domestic exchange | 24,804,886 | ||||||||
| Harbin Hali Industry Co., Ltd. | 20,942,945 | RMB Common shares | 20,942,945 | ||||||||
| VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND | 15,855,512 | Foreign shares placed in domestic | 15,855,512 | ||||||||
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
exchange
| exchange | |||
| CHINA INT'L CAPITAL CORP HONG KONG SECURITIES LTD | 15,216,066 | Foreign shares placed in domestic exchange | 15,216,066 |
| Harbin Daoli District Charity Foundation | 13,667,406 | RMB Common shares | 13,667,406 |
| Explanation on associated relationship or consistent action among the top 10 shareholders of non-restricted negotiable shares and that between the top 10 shareholders of non-restricted negotiable shares and top 10 shareholders | The fourth largest shareholder Guangdong Electric Power Development Corporation is the wholly-owned subsidiaries of the largest shareholder Energy Group. These two companies have relationships; whether the other shareholders have relationships or unanimous acting was unknown. | ||
| Explanation on shareholders participating in the margin trading business(if any )(See Notes 4) | The Fifth largest shareholder Li Zhuo holds 1,270,220 A shares of the Company through A shares ordinary stock account, and holds 359,402,191A shares of the Company through stock account with credit transaction and guarantee. hold60,672,411 shares of the Company's stock totally. The Seventh largest shareholder Harbin Hali Industry Co., Ltd. holds300 A shares of the Company through A shares ordinary stock account, and holds 20,942,645 A shares of the Company through stock account with credit transaction and guarantee, hold 20,942,945 shares of the Company's stock totally. The Tenth largest shareholder Harbin Daoli District Charity Foundation holds16,800 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 13,667,406 shares of the Company's stock totally. | ||
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have abuy-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 Companyhave no buy –back agreement dealing in reporting period.
2.Controlling shareholder
Nature of Controlling Shareholders: Local state holdingType of Controlling Shareholders: Legal person
| Name of the Controlling shareholder | Legal representative/Leader | Date of incorporation | Organization code | Principal business activities |
| Guangdong Energy Group Co., Ltd. | Li Zhuoxian | August 3,2001 | 91440000730486022G | Management and sales of the electricity investment construction operation management，electricity power(Thermal |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
Power)，The industry of transportation resourcesenvironmental protection，new source ofenergy electricity investment; investmentplanning and consulting ; informationconsulting service; sales of productionmaterials.
| Power)， The industry of transportation 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 held or partly held by it in the report period | Unknown | |
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 CompanyActual controller nature：Local state owned assets managementActual controller type：Legal person
| Name of the controlling shareholder | Legal representative/person in charge | Date of establishment | Organization code | Principal business activities |
| State-owned Assets supervision and administration Commission of Guangdong Provincial People’s Government | Li Cheng | June 26,2004 | 114400007583361658 | As the special institution directly subordinate to Guangdong Provincial People's Government, performed the obligation of provincial state-asset contributor entrusted by the provincial government. |
Changes of the actual controller in the reporting period
□Applicable √Not applicable
No Changes of the actual controller in the reporting periodBlock Diagram of the ownership and control relations between the company and the actual controller
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
The actual controller controls the company by means of trust or managing the assets in other way
□Applicable √Not applicable
4.Particulars about other legal person shareholders with over 10% share held
□Applicable √Not applicable
5.Situation of Share Limitation Reduction of Controlling Shareholders, Actual Controllers, Restructuring Partyand Other Commitment Subjects
□Applicable √Not applicable
Guangdong Electric Power Development Co., Ltd. 2020 Annual 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. 2020 Annual Report
VIII Information about convertible corporate bonds
□ Applicable √Not applicable
During the reporting period, the company did not have convertible corporate bonds.
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
IX. Information about Directors, Supervisors and Senior ExecutivesI. Change in shares held by directors, supervisors and senior executives
Name
| Name | Positions | Office status | Sex | Age | Starting date of tenure | Expiry date of tenure | Shares held at the year-begin(share) | Amount of shares increased at the reporting period(share) | Amount of shares decreased at the reporting period(share) | Other changes increase/decrease | Shares held at the year-end(share) |
| Wang Jin | Board chairman | In office | Male | 57 | June 11,2018 | ||||||
| Wang Jin | Director | In office | Male | 57 | September 18,2017 | ||||||
| Rao Subo | Director | In office | Male | 56 | September 18,2017 | ||||||
| Wen Lianhe | Director | In office | Male | 51 | September 18,2017 | 2,830 | 2,830 | ||||
| Chen Ze | Director | In office | Male | 52 | September 18,2017 | ||||||
| Li Fangji | Director | In office | Male | 53 | June 28,2018 | ||||||
| Zheng Yunpeng | Director | In office | Male | 52 | June 28,2018 | ||||||
| Zheng Yunpeng | General Manager | In office | Male | 52 | June 11,2018 | ||||||
| Yan Ming | Director | In office | Male | 49 | February 21,2019 | ||||||
| Li Baobing | Director | In office | Male | 46 | November 19,2019 | ||||||
| Liang Peilu | Employee director | In office | Male | 56 | August 2,2019 | ||||||
| Mao Qinghan | Director | In office | Male | 46 | August 2,2019 | ||||||
| Sha Qilin | Independent director | In office | Male | 60 | May 20,2014 |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
ShenHongtao
| Shen Hongtao | Independent director | In office | Female | 53 | May 20,2016 | ||||||
| Wang Xi | Independent director | In office | Male | 50 | May 20,2016 | ||||||
| Ma Xiaoqian | Independent director | In office | Male | 56 | September 18,2017 | ||||||
| Yin Zhongyu | Independent director | In office | Male | 51 | September 18,2017 | ||||||
| Zhang Dewei | Chairman of the Supervisory Committee | In office | Male | 59 | August 14,2012 | ||||||
| Shi Yan | Supervisor | In office | Female | 43 | November 19,2019 | ||||||
| Zhu Weiping | Independent Supervisor | In office | Male | 63 | May 20,2014 | ||||||
| Jiang Jinsuo | Independent Supervisor | In office | Male | 52 | May 20,2014 | ||||||
| Hu Jinpei | Employee supervisor | In office | Male | 57 | December 23,2020 | ||||||
| Li Qing | Employee supervisor | In office | Male | 43 | May 20,2014 | ||||||
| Tang Yongguang | Deputy GM | In office | Male | 58 | November 28,2019 | ||||||
| Liu Wei | Deputy GM, Finance manager | In office | Male | 41 | September 18,2017 |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
Liu Wei
| Liu Wei | Board secretary | In office | Male | 41 | October 24,2006 | ||||||
| Lin Weifeng | Employee supervisor | Dimission | Male | 52 | May 15,2002 | August 14,2020 | 4,716 | 4,716 | |||
| Li Jianwen | Employee supervisor | Dimission | Male | 48 | August 14,2020 | December 23,2020 | |||||
| Liu Hui | Deputy GM | Dimission | Female | 55 | July 28,2010 | October 31,2020 | |||||
| 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 |
| Lin Weifeng | Employee supervisor | Dimission | August 14,2020 | Job change |
| Li Jianwen | Employee supervisor | Dimission | December 23,2020 | Job change |
| Liu Hui | Deputy GM | Dimission | October 31,2020 | Retire |
III.Posts holdingWork Experience in the past five years of Directors, supervisors and senior Executives in Current officeMr. Wang Jin, born in May 1963. He holds a Bachelor of Engineering from Nanjing Institute of Technology and aMaster of Business Administration from Jinan University. He is now a senior engineer,and currently serves aschairman of Guangdong Electric Power Development Co., Ltd., He once served as director of boiler maintenanceworkshop in Shaoguan Power Plant, director of Engineering Technology Department of Zhuhai Power Plant’sPlanning and Construction Department, deputy director of Zhuhai Power Plant, executive deputy general managerof Guangzhu Power Generation Co., Ltd. and general manager of Zhuhai Power Plant Co., Ltd., general managerand secretary of the Party Committee of Guangdong Zhuhai Jinwan Power Generation Co., Ltd., general managerof Guangzhu Power Generation Co., Ltd., the deputy chief engineer and the manager of the Department ofManagement and the secretary of the Party Branch of Guangdong Energy Group Co., Ltd., and concurrentlyserved as 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 CentralParty 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 GuangdongEnergy Group Co., Ltd., and head of preparation team of Yudean electric power and information technologycenter. He once served as deputy chief engineer of Shaoguan Power Plant, deputy director of the Department ofBiotechnology of Guangdong Electric Power Group Corporation, director of Department of Biotechnology and
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
Safety Supervision of Guangdong Yudean Assets Management Co., Ltd., director of Department ofBiotechnology and Safety Supervision, deputy chief engineer of Guangdong Energy Group Co., Ltd., and directorof the Shajiao A Power Plant and party committee secretary, Deputy chief engineer, Secretary of the SafetySupervision and Produce technology Dept, Secretary of the Party Branch and Head of the Information TechnologyCentre Preparatory team of Guangdong Energy Group,Chief safety officer and Vice chief engineer of GuangdongYudean Group, and Head of the Information Technology Centre Preparatory team of Guangdong Yudean ElectricPower .Mr. Wen Lianhe, born in October 1968 and graduated from Harbin Institute of Technology. He is now seniorengineer (professor level) and currently deputy director of Guangdong Energy Group Co., Ltd. He once served asdeputy minister of Biotechnology and Safety Supervision Department of Guangdong Energy Group Co., Ltd.,general manager and party committee secretary of Guangdong Red Bay Power Generation Co., Ltd., Deputy chiefengineer, Minister of strategic Development and Secretary of Party Branch of Energy Group,Vice chiefengineer ,Minister of operating management Dept and Secretary of Party Branch of Energy Group.Mr. Chen Ze, born in January 1969. He holds a bachelor degree from Chongqing University and a doctoral degreein 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, anddirector of legal affairs and capital operation department of Guangdong Energy Group Co., Ltd. He once served asdeputy director of the general department and director of capital operation and legal affairs department ofGuangdong Energy Group Co., Ltd., general manager and party branch secretary of Guangdong Yudean ShippingCo., Ltd.Mr. Li Fangji, born in November 1967, is a senior engineer. He holds a bachelor degree from BeijingInstitute of Water Resources and Electric Power Economics and Management and a master degree in engineeringfrom Tianjin University. He currently serves as Deputy Chief Engineer of Guangdong Energy Group Co., Ltd. andconcurrently serves as Minister of Strategy Development Department and Secretary of Party Branch of EnergyGroup Corporation. He had served as Engineer of Shenzhen Energy Corporation, Assistant to General Managerand Deputy General Manager of Shenzhen Qianwan Electric Power Development Co., Ltd., Assistant to GeneralManager, Chairman of the Labor Union, Deputy General Manager, General Manager, and Secretary of the PartyCommittee of Shenzhen Guangqian Electric Power Co., Ltd., Secretary of Party Committee and General Managerof Guangdong Yudean Jinghai Power Generation Co., Ltd.，Minister of strategy Development Dept and partybranch secretary of Energy Group.
Mr. Zheng Yunpeng, born in October 1968, Bachelor of South China University of Technology and MBA ofJinan University, is a senior engineer. Currently, he is the general manager of Guangdong Electric PowerDevelopment Co., Ltd. He had served as Deputy Minister of Strategy Development Department of GuangdongYudean Asset Management Co., Ltd., Deputy Minister of Strategy Development Department of GuangdongEnergy Group Co., Ltd., Minister of Strategy Development Department of Guangdong Energy Group Co., Ltd.,Secretary of the Party Branch and General Manager of Branch Company of Guangdong Yudean EnvironmentalProtection Engineering Management Company, Factory Director and Secretary of the Party Committee ofHuangpu Power Plant, General Manager of Yuehua Power Generation Company, General Manager and Secretaryof the Party Branch of Guangdong Yudean Natural Gas Co., Ltd.Mr. Yan Ming, born in October 1971, with a bachelor degree of Northeastern Electric Power University, andis a senior engineer. Currently, he is the Minister of the Colligation and Management Department of GuangdongEnergy Group Co., Ltd. He used to be deputy minister of the operation department, deputy minister of the fueldepartment (presided over the overall work), minister of the production and operation department, and deputy
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
general manager of Guangdong Honghaiwan Power Generation Co., Ltd. He had served as Deputy Minister of theoperation and management department of Guangdong Energy Group Co., Ltd and General Manager and Secretaryof the Party Branch of Guangdong Yudean Power Sales Co., Ltd.，Minister of Comprehensive Dept and Secretaryof the Party Branch of Energy Group.
Mr. Li Baobing, born in September 1974, graduated from Xi'an Jiaotong University with a master degree, is asenior economist. Currently he is the Minister of Finance Department and Secretary of the Party Branch ofGuangdong Energy Group Co., Ltd.,He served as Assistant to General Manager of Budget and FinanceDepartment and Director of Asset Management Department of Guangzhou Lingnan International EnterpriseGroup Co., Ltd., Manager of Investment Department and Deputy General Manager of Guangdong Yudean FinanceCo., Ltd., and had concurrently served as General Manager of Shenzhen Tianxin Insurance Brokers Co., Ltd.andVice Minister，Minister and Secretary of the Party Branch of Finance Department of Guangdong Energy Group Co., Ltd.Mr. Liang Peilu, born in October 1964. graduated from correspondence course, bachelor of engineering. Seniorengineer. He is currently the party secretary and director of Shajiao A Power Plant of Guangdong Electric PowerDevelopment Co., Ltd. and the general manager and party branch secretary of Guangdong Yudean BinhaiwanEnergy Co., Ltd. Former positions include turbine maintenance director of Shajiao General Power Plant A,director of health and safety of Shajiao A Power Plant, and deputy director of Shajiao A Power Plant.Mr. Mao Qinghan, born in October 1974, Bachelor of Hunan University and Master of Engineering from SouthChina University of Technology. Engineer. He once served as the secretary and director of the party branch ofXicun Thermal Power Plant in Guangzhou power plant, the deputy general manager of Guangzhou Power Plant,the secretary of the party branch of Guangzhou Power Plant Co., Ltd., the secretary and general manager of theparty branch of Guangzhou Wanglong Thermal Power Co., Ltd., the safety director and general manager of theHealth and Safety Management Department of Guangzhou Development Group Co., Ltd., and the secretary andgeneral manager of the Party Committee of Guangzhou Development Power Group Co., Ltd.Mr. Sha Qilin, born in October 1960. Master of Wuhan Institute of Technology. Associate Professor, practicinglawyer. He is currently a lawyer of Guangdong Nanguo Desai Law Firm, member of the Professional Committeeof Financial and Securities of Guangzhou Lawyers Association, and concurrently an independent director ofGuangdong Electric Power Development Co., Ltd. He was an associate professor of Wuhan Institute ofTechnology (now Wuhan University of Technology), head of investment and development department of ChinaHuandao Group Company, deputy chief engineer of group and chief manager of overseas listed leading group.Ms. Shen Hongtao, born in August 1967, PhD of management of Xiamen University, professor, doctoralsupervisor. Currently, she is a professor in accounting department of Jinan University, and concurrently serves asmember 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.,Ltdand independent director of Guangdong Electric Power Development Co.,Ltd. She had served as deputy sectionhead of Guangdong Provincial People's Government, consultant of PwC International and vice president ofInternational College of Jinan University.Mr. Wang Xi, 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 College ofYat-sen University and Director of Institute of China and transition and open economy of Sun Yat sen University,concurrently serves as Deputy Secretary-General and Standing member of China Institute of International Financeand China Society of World Economics, editorial board member of world economy, economist of monetarypolicy committee of the people's Bank of China and business center of National Bureau of statistics, independent
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
director of Guangdong Electric Power Development Co.,Ltd., Guangzhou Yuexiu Financial Holdings Group Co.,Ltd., Zhuhai Rural Commercial Bank, CNFinance holding Co.,Ltd. and BY-HEALTH Co.,Ltd, External directorof Guangzhou Bus Group.He was the Vice President of Lingnan College of Yat-sen University.
Mr. Ma Xiaoqian, born in March 1964, is Ph.D.of engineering thermophysics from South China University ofTechnology. He is a professor and currently serving as the director of the Key Laboratory of the Electric PowerSchool of South China University of Technology and concurrently serving as the deputy director of teachingguiding committee of energy and power professional of high education of the Ministry of Education, the chairmanof the Guangzhou Energy Institute, the outside director of Guangzhou Environmental Protection InvestmentGroup Co., Ltd., and the independent director of Guangzhou Development Group Co., Ltd. He used to be the deanand vice president of Electric Power College of the South China University of Technology.Mr. Yin Zhongyu, born in February 1969. He is Master of rural finance from Northwest Agricultural University.He is currently the general manager of the Great Wall Securities M&A Department. He previously served as adirector of the Guotai Junan M&A business and an executive director of Shanghai Longrui InvestmentConsultants Company，General Manager of M & A Dept of Great Wall Securities.Mr.Zhang Dewei, born in January 1961. Guangzhou Normal University Bachelor of Science, Jinan UniversityMaster of Business Administration. Senior economist. He is currently theDeputy Secretary of DisciplineInspection Commission, General Auditor, General Manager of Audit department and Secretary of Party branch ofGuangdong Energy Group Co., Ltd. He served as Director of the General Manager's Office of Guangdong ElectricPower 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 Boardof Directors of Guangdong Energy Group Co., Deputy Minister of Legal Affairs, Deputy Minister of CapitalOperations . The head of the work department of the audit and supervisory board and the secretary of the Partybranch，Chairman of the Supervisory Committee of Guangdong Electric Power Development Co., Ltd.Ms. Shi Yan, born in December 1977, Master graduate from Sun Yat-sen University, Senior accountant. Currently,she is the manager of the comprehensive branch of the Finance Department of Guangdong Energy Group Co., Ltd.Previously, she was the special manager, director and general manager of the Cost Accounting Division of theFinance Department of Guangdong Energy Group Co., Ltd.Mr. Zhu Weiping, born in May 1957. Doctor of Economics, Jinan University. He is currently a vice president ofthe China Industrial Economics Society, executive vice president of the Guangdong Economic Association,Zhujiang Industrial and Guangsheng Youse Independent Director, Independent Supervisor of Guangdong ElectricPower Development Co., Ltd..Mr. Jiang Jin Suo, born in March 1968. Doctor of Management, Jinan University. Professor, Certified PublicAccountant. 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 ElectricPower Development Co., Ltd.Mr. Hu Jinpei, born in April 1963, graduated from correspondence college, engineer, is currently the Director ofDiscipline Inspection Department of Shajiao A Power Plant. He used to be the First Engineer of thermalengineering in Maintenance Department of Shajiao A Power Plant, Director of Material Division of MaintenanceDepartment of Shajiao A Power Plant, director of Material Procurement Division of Operation Department ofShajiao A Power Plant, Deputy General Manager of diversified corporation of Shajiao A Power Plant, GeneralManager of Dongguan Humen Jinfan Industrial Corporation of Shajiao A Power Plant, and Director of LogisticsService Department of Shajiao A Power Plant.
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
Mr. Li Qing, born in May 1977. Bachelor of Economics, Shanghai University of Finance and Economics. senioraccountant. The current Guangdong Electric Power Development Co., Ltd. employee supervisor, director of theaudit room. Former Yunfu Power Plant Finance Department Accounting, Guangdong Yuelong Power Co., Ltd.Mr. Tang Yongguang, born in December 1962. Bachelor of Engineering, Chongqing University. Senior engineer.He is currently the Deputy General Manager of Guangdong Electric Power Development Co., Ltd. He used to be aboiler technician in Huangpu power plant, a senior engineer in the biotechnology department of Guangdongpower industry bureau, a manager of the safety supervision division of the biotechnology safety supervisiondepartment of Guangdong Energy Group Co., Ltd., a member of the party committee and deputy manager ofShaoguan power plant, a member of the party committee and deputy manager of Shajiao C power plant, a deputydirector of the biotechnology safety supervision department of Guangdong Energy Group Co., Ltd., and a deputydirector of the safety supervision and Production Technology department of Guangdong Energy Group Co., Ltd.Finance Minister Assistant.Mr. Liu Wei, born in April 1979, is Bachelor of finance from Zhongnan University of Economics and Law. He isan economist and currently serves as the Company’s deputy general manager, chief financial officer, secretary ofthe board of directors, and concurrently as manager of the board affairs department. He used to be responsible forthe financial department of Guangdong Electric Power Development Co., Ltd., and be responsible and as the hostof the Board Affairs Department, and the representatives of the company's securities affairs and Manager.Office taking in shareholder companies
√Applicable □Not applicable
Names of the
persons inoffice
| Names of the persons in office | Names of the shareholders | Titles engaged in the shareholders | Sharing date of office term | Expiry date of office term | Does he /she receive remuneration or allowance from the shareholder |
| Rao Subo | Guangdong Energy Group Co., Ltd. | Vice chief engineer | October,2005 | Yes | |
| Rao Subo | Guangdong Energy Group Co., Ltd. | Director of security | July，2018 | Yes | |
| Wen Lianhe | Guangdong Energy Group Co., Ltd. | Deputy GM | December,2020 | Yes | |
| Chen Ze | Guangdong Energy Group Co., Ltd. | General Counsel, Secretary of the Board of Directors, Minister of legal Affairs and Capital Operations | June，2016 | Yes | |
| Li Fangji | Guangdong Energy Group Co., Ltd. | Vice chief engineer | April,2018 | Yes | |
| Li Fangji | Guangdong Energy Group Co., Ltd. | General Manager of Operating Management Dept and Secretary of Party Branch | February1,2021 | Yes |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
Yan Ming
| Yan Ming | Guangdong Energy Group Co., Ltd. | Vice Chief Engineer, Minister of Strategic Dept and Secretary of Party Branch | February,2021 | Yes | |
| Li Baobing | Guangdong Energy Group Co., Ltd. | Minister of Finance and secretary of Party Branch | September，2019 | Yes | |
| Zhang Dewei | Guangdong Energy Group Co., Ltd. | Deputy Secretary of Discipline Inspection Commission, General Auditor, General Manager of Audit department | September，2017 | Yes | |
| Shi Yan | Guangdong Energy Group Co., Ltd. | Deputy Gm of Finance Dept | June,2020 | Yes | |
| Mao Qinghan | Guangzhou Development Group Co., Ltd. | Executive director | December,2017 | Yes | |
| Notes to post-holding in shareholder’s unit | Where there are more than one post, the starting time of appointment shall be the starting time of the main post. | ||||
Offices taken in other organizations
√Applicable □Not applicable
| Name | Other unit | Title | Start date of office term | End date of office term | Drawing remuneration and allowance from of other unit(Y/N) |
| Wang Jin | Guangdong Energy Maoming Thermal Power Plant Co., Ltd. | Board chairman | March,2019 | No | |
| Wang Jin | Guangdong Red Bay Power Generation Co., Ltd. | Board chairman | September,2018 | No | |
| Wang Jin | Guangdong Yudean Jinghai Power Generation Co., Ltd. | Director | June,2018 | No | |
| Wang Jin | Guangdong Huizhou Natural Gas Power Generation Co., Ltd. | Board chairman | June,2018 | No | |
| Wang Jin | Guizhou Yueqian Electric Power Co., Ltd. | Board chairman | May,2019 | No | |
| Wang Jin | Zhuhai Special Economic Zone Guangzhu Power Generation Co., Ltd. | Board chairman | July,2020 | No | |
| Rao Subo | Guangdong Shaoguan Yuejiang Power Generation Co., Ltd. | Board chairman | October,2018 | No |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
Rao Subo
| Rao Subo | Yudean Yunhe Power Generation Co., Ltd. | Board chairman | June,2018 | No | |
| Rao Subo | North Union Electric Power Co., Ltd. | Director | May,2018 | No | |
| Rao Subo | Tianshengqiao First Class Hydropower Development Co., Ltd. | Board chairman | June,2017 | No | |
| Wen Lianhe | Guangzhou Electric Power Trading Center Co., Ltd. | Director | January,2020 | No | |
| Wen Lianhe | Guangzhou Electric Power Trading Center Co., Ltd. | Director | April,2019 | No | |
| Wen Lianhe | Guangdong Zhuhai Power Generation Plant Co., Ltd. | Board chairman | July,2018 | No | |
| Chen Ze | Guangdong Yudean Jinghai Power Generation Co., Ltd. | Board chairman | March,2017 | No | |
| Chen Ze | 广Guangdong Yangjiang Port Co., Ltd. | Board chairman | November,2019 | No | |
| Zheng Yunpeng | Guangdong Yudean Huadu Natural Gas Thermal Power Co., Ltd. | Board chairman | September,2018 | No | |
| Zheng Yunpeng | Guangdong Yudean Bohe Coal Power Co.,Ltd. | Board chairman | July,2018 | No | |
| Zheng Yunpeng | Guangdong Yudean Binhaiwan Energy Co., Ltd. | Executive director | May,2019 | No | |
| Zheng Yunpeng | Guangdong Yudean Dayawan Integrated Energy Co., Ltd | Board chairman | January,2020 | No | |
| Zheng Yunpeng | Guangdong Yudean Dananhai Intelligent Energy Co., Ltd. | Executive director | January,2021 | No | |
| Zheng Yunpeng | Guangdong Yudean Baihua Integrated Energy Co., Ltd | Executive director | February,2021 | No | |
| Li Baobing | CSPG Energy Co., Ltd. | Supervisor | June,2018 | No | |
| Li Baobing | Guangdong Yudean Finance Lease Co., Ltd. | Board chairman | September,2019 | No | |
| Li Baobing | Guangdong Energy Group Finance Co., Ltd. | Director | September,2020 | No | |
| Liang Peilu | Guangdong Yudean Humen Power Generation Co., Ltd. | Board chairman, General Manager | April,2019 | No | |
| Liang Peilu | Guangdong Yudean Binhaiwan Energy Co., ltd. | General Manager | May,2019 | No |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
Mao Qinghan
| Mao Qinghan | Guangzhou Development Electric Power Enterprise Co., Ltd. | Executive director | April,2018 | No | |
| Mao Qinghan | Guangzhou Guangneng Investment Co., Ltd. | Executive director | April,2018 | No | |
| Sha Qilin | Guangdong Nanguo Desai Law firm | A lawyer,Partner | March,2007 | Yes | |
| Shen Hongtao | Accounting dept , Jinan University | Professor | April,2012 | Yes | |
| Shen Hongtao | Guangsheng Nonferrous Metal Co., Ltd. | Independent Director | April,2015 | Yes | |
| Shen Hongtao | Guangzhou Yuexiu Finance Holding Group Co., Ltd. | Independent Director | November,2017 | Yes | |
| Shen Hongtao | Guangzhou Store Co., Ltd. | Independent Director | September,2016 | Yes | |
| Shen Hongtao | Rongjie Co., Ltd. | Independent Director | October,2017 | Yes | |
| Wang Xi | Lingnan College, Sun Yat-sen University | Professor | July,2006 | Yes | |
| Wang Xi | CNFinance holding Co.,Ltd. | Independent Director | March 2019 | Yes | |
| Wang Xi | BY-HEALTH Co.,Ltd | Independent Director | September 2020 | Yes | |
| Wang Xi | Guangzhou Yuexiu Financial Holdings Group Co., Ltd. | Independent Director | January 2019 | Yes | |
| Wang Xi | Zhuhai Rural Commercial Bank Co., Ltd. | Independent Director | July,2014 | Yes | |
| Wang Xi | Guangzhou Bus Group | External director | August 2018 | Yes | |
| Ma Xiaoqian | Provincial Key Laboratory, School of Electric Power, South China University of Technology | Director | July,2014 | Yes | |
| Ma Xiaoqian | Guangzhou Environmental protection Investment Group Co., Ltd. | External director | September,2016 | Yes | |
| Ma Xiaoqian | Guangzhou Development Group Co., Ltd. | Independent Director | June,2016 | Yes | |
| Yin Zhongyu | LC Securities | Assistant president | September,2019 | Yes | |
| Shi Yan | Guangdong Electric Power Development Corporation | Chairman of the Supervisory | February,2021 | No |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
Committee
| Committee | |||||
| Shi Yan | Guangdong Energy Group Guizhou Co., Ltd. | Director | August,2020 | No | |
| Shi Yan | Guangdong Yudean Huadu Natural Gas Thermal Power Co., Ltd. | Supervisor | March,2018 | No | |
| Zhu Weiping | Institute of industrial Economics, Jinan University | Professor, President | January,2000 | Yes | |
| Zhu Weiping | Guangsheng Nonferrous Metal Co., ltd. | Independent director | November,2016 | Yes | |
| Jiang Jinsuo | Guangdong finance Institute | Professor, Head of Dept | January,2013 | Yes | |
| Hu Jinpei | Guangdong Electric Power Development Co.,Ltd. Shajiao A Power Plant | Minister of Discipline Inspection | November,2020 | ||
| Li Qing | Guangdong Yudean Bohe Coal Power Co.,Ltd. | Chairman of the Supervisory Committee | December,2018 | No | |
| Li Qing | Lincang Yudean Energy Co., Ltd. | Supervisor | January,2015 | No | |
| Li Qing | Guangdong Yudean Yongan Natural Gas thermal Power Co., Ltd. | Chairman of the Supervisory Committee | March,2019 | No | |
| Li Qing | Yunnan Nengtou Weixin Energy Co., Ltd. | Convenor of the Board of Supervisors | March,2019 | No | |
| Li Qing | Shenzhen Guangqian Electric Power Co., Ltd. | Chairman of the Supervisory Committee | December,2018 | No | |
| Li Qing | Zhanjiang Zhongyue Energy Co., Ltd. | Chairman of the Supervisory Committee | August,2019 | No | |
| Li Qing | Guangdong Yudean Baihua Integrated Energy Co., Ltd | Supervisor | February,2021 | No | |
| Tang Yongguang | Guangdong Electric Industry Fuel Co., Ltd. | Director | March,2020 | No | |
| Tang | Zhanjiang Electric Power Co., Ltd. | Director | December,2019 | No |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
Yongguang
| Yongguang | |||||
| Tang Yongguang | Zhanjiang Zhongyue Energy Co., Ltd. | Board chairman | December,2019 | No | |
| Tang Yongguang | Guangdong Red Way Power Generation Co., Ltd. | Vice Board chairman | December,2019 | No | |
| Tang Yongguang | Guangdong Huizhou Pinghai Power Generation Co., Ltd. | Vice Board chairman | December,2019 | No | |
| Tang Yongguang | Guangdong Yudean Holdings Western Investment Co., Ltd. | Director | October,2018 | No | |
| Tang Yongguang | Guangdong Shaoguan Yuejiang Power Generation Co., ltd. | Vice Board chairman | October,2018 | No | |
| Tang Yongguang | Guangdong Yudean Xinhui Power Generation Co., Ltd. | Director | July,2020 | No | |
| Tang Yongguang | Guangdong Yudean Huaqing Coal Gas Union cycle Power Generation Co., Ltd. | Board chairman | July,2020 | No | |
| Liu Wei | Guangdong Wind Power Generation Co., Ltd. | Director | December,2017 | No | |
| Liu Wei | Guangdong Yudean Finance Co., Ltd. | Director | March,2019 | No | |
| Liu Wei | Guangdong Huizhou Natural Gas Power Generation Co., Ltd. | Director | March,2018 | No | |
| Liu Wei | Guangdong Yudean Electric Power Sales Co., Ltd. | Director | December,2017 | No | |
| Liu Wei | Guangdong Yudean Shipping Co., Ltd. | Convener of the Board of Supervisors | May,2007 | No | |
| Liu Wei | Shenzhen Capital Group Co., Ltd. | Supervisor | October,2019 | No | |
| Liu Wei | Guangdong Yuejia Electric Power Co., Ltd. | Vice Board chairman | January,2019 | No | |
| Liu Wei | Guangzhou Zhujiang Natural Gas Power Generation Co., Ltd. | Director | July,2020 | No | |
| Liu Wei | Guangdong Energy Finance Leasing Co., Ltd. | Director | November,2020 | No | |
| Liu Wei | Guangdong Yudean Zhongshan Thermal Power Plant Co., Ltd. | Board chairman | July,2020 | No |
Punishments to the current and leaving board directors, supervisors and senior managers during the report periodby securities regulators in the recent three years
□ Applicable √Not applicable
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
IV. Remuneration to directors, supervisors and senior executivesDecision-making procedures, basis for determination and actual payment of the remuneration to directors ,supervisors and senior executivesDirectors, supervisors and senior executives of the Company shall obtain labor remuneration and enjoycorresponding employee benefits according to their position and the Company's wage system. Except suchremuneration and benefits, no other remuneration and fringe benefits shall be additionally provided；Theallowance for the independent directors and independent supervisors of the Company shall be paid according tothe 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 6.3546 million .Remuneration to directors, supervisors and senior executives in the reporting period
In RMB10,000
Name
| Name | Positions | Sex | Age | Office status | Total remuneration received from the shareholder | Remuneration actually receives at the end of the reporting period |
| Wang Jin | Board chairman | Male | 57 | In office | 84.16 | No |
| Rao Subo | Director | Male | 56 | In office | Yes | |
| Wen Lianhe | Director | Male | 52 | In office | Yes | |
| Chen Ze | Director | Male | 51 | In office | Yes | |
| Li Fangji | Director | Male | 53 | In office | Yes | |
| Zheng Yunpeng | Director, General Manager | Male | 52 | In office | 84.16 | No |
| Yan Ming | Director | Male | 49 | In office | Yes | |
| Li Baobing | Director | Male | 46 | In office | Yes | |
| Liang Peilu | Director | Male | 56 | In office | 81.4 | No |
| Mao Qinghan | Director | Male | 46 | In office | Yes | |
| Sha Qilin | Independent director | Male | 60 | In office | 10.14 | No |
| Shen Hongtao | Independent director | Female | 53 | In office | 9.07 | No |
| Wang Xi | Independent director | Male | 50 | In office | 9.61 | No |
| Ma Xiaoqian | Independent director | Male | 56 | In office | 9.61 | No |
| Yin Zhongyu | Independent director | Male | 51 | In office | 8 | No |
| Zhang Dewei | Chairman of the | Male | 59 | In office | Yes |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
SupervisoryCommittee
| Supervisory Committee | ||||||
| Shi Yan | Supervisor | Female | 43 | In office | Yes | |
| Zhu Weiping | Independent Supervisor | Male | 63 | In office | 5.89 | No |
| Jiang Jinsuo | Independent Supervisor | Male | 52 | In office | 6.43 | No |
| Hu Jinpei | Employee supervisor | Male | 57 | In office | 27.92 | No |
| Li Qing | Employee supervisor | Male | 43 | In office | 39.79 | No |
| Tang Yongguang | Deputy GM | Male | 58 | In office | 66.57 | No |
| Liu Wei | Deputy General manager, Finance Manager, Board secretary | Male | 41 | In office | 77.41 | No |
| Lin Weifeng | Employee supervisor | Male | 52 | Dimission | 27.23 | No |
| Li Jianwen | Employee supervisor | Male | 48 | Dimission | 21.36 | No |
| Liu Hui | Deputy GM | Female | 55 | Dimission | 66.71 | No |
| Total | -- | -- | -- | -- | 635.46 | -- |
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） | 997 |
| Number of in-service staff of the main subsidiaries（person） | 5,691 |
| Total number of the in-service staff（person） | 6,794 |
| Total number of staff receiving remuneration in the current period（person） | 6,771 |
| The number of the parent company and the main subsidiary’s retired staffs who need to bear the cost（person） | 3,596 |
| Professional | |
| Classified according by Professions | Number of persons（person） |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
Production
| Production | 4,324 |
| Sales | 103 |
| Technical | 1,014 |
| Financial | 173 |
| Administrative | 1,034 |
| Other | 146 |
| Total | 6,794 |
| Education | |
| Classified according by education background | Number of persons（person） |
| Doctor | 1 |
| Master | 216 |
| Universities | 3,383 |
| Colleges | 1,813 |
| Technical secondary school | 236 |
| High school and Below | 1,145 |
| Total | 6,794 |
2. Remuneration policies
The company’s staff received the salaries and enjoyed the benefits according to the relevant provisions stipulatedin the company’s Salary Management Approach. The salary of the company’s staff (Except the management staffwho categorized in the annual salary system) basically constituted by the basic salary, post salary, performancesalary, 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. Thestaff training was adhered to the principle of learning integrated with application, learning by the needs andstressing of practical effect, focused on the main contents of the post and the practical operation skills. Thetraining contents included the new staff orientation training, post training, continuing education, overseas trainingand other trainings.
4. Outsourcing situation
□ Applicable √ Not applicable
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
X. Administrative structureI.Basic state of corporate governanceThe company is strictly in accordance with “Company Law”, “Securities Law”, “Governance Standards of ListedCompany”, “Listing Rules of Stocks” and other laws and regulations requirements, constantly perfects thecorporate governance structure, standardizes corporate operations and further enhances the level of corporategovernance. 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 thegeneral manager of company and working conditions and internal control system which basically covers allaspects of the operation management like financial management, investment management, information disclosure,associated trade, external guarantees and fund-raising. These systems are implemented better. During thereporting period, the company has amended part of the clauses in “Inside Information Management System” basedon 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 therelevant provisions of CSRC,
□ Yes √ No
There exist no difference in compliance with the corporate governance , the PRC Company Law and the relevantprovisions of CSRC.II. Independence and Completeness in business, personnel , assets, organization and financeThe 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 completebusiness and operations management ability. 1. Separation of operation: the Company is principally engaged inthe electricity generation and sales to Guangdong Electric Power Holding Co.(“GPHC”) directly. The Companyhas subcontracted the subsidiary of Yudean, the holding company, to purchase the fuels, which is solely for thepurpose of better utilization of large-scale purchase and cost control. 2. Separation of human resource: the GeneralManager and all his subordinates, Secretary to the Board of Directors, Financial Manager are paid by theCompany and take no position in the holding company. 3. Separation of assets: the Company has independentproduction system, supporting system and other facilities. The Company owns its intangible assets such asintellectual property rights, trademarks and non-patent technology; 4. Separation of organization: the Companyhas established integrated operating institution of its own.5.. Financial independence: the Company has anindependent financial department and has established independent accounting system and financial managementsystem. It opened independent bank accounts for its own operation.III. Competition situations of the industry
√Applicable □ Not Applicable
Problem
Types
| Problem Types | Name of the Controlling Shareholders | Property of the Controlling Shareholders | Problems and Causes | Countermeasures | Time Schedule of Works and Follow-up Program |
| Horizontal competitions | Guangdong Energy Group Co., Ltd. | Local SASAC | Energy Group was established when Guangdong Provincial Government took the lead in the implementation of the “plant and network separation” power system reform in China, and was separated and formed from Guangdong Provincial Power Group Corporation. | On January 3, 2018, the company disclosed Announcement on Controlling Shareholders' Commitment to Perform Related Matters (public notice No.: 2018-01); on January 13, 2018, the company disclosed | Our company will actively fulfill the trusteeship and responsibilities according to the “Equity Custody Agreement” and participate in the management and decision-making and inspection and supervision of the custody target. The company will cooperate with Energy Group to push forward |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
It is the largest and mostpowerful power generationenterprise in GuangdongProvince. Yudean Power isthe only listed companyunder the Energy Groupand is engaged in powerproduction business. Atpresent, Energy Group stillhas some remaining powergeneration assets that havenot been included inYudean Power temporarily.Therefore, there is a certaindegree of horizontalcompetition.
| It is the largest and most powerful power generation enterprise in Guangdong Province. Yudean Power is the only listed company under the Energy Group and is engaged in power production business. At present, Energy Group still has some remaining power generation assets that have not been included in Yudean Power temporarily. Therefore, there is a certain degree of horizontal competition. | Announcement of Related Transactions on the "Equity Custody Agreement" signed with Guangdong Energy Group Co., Ltd. (public notice No.: 2018-04). In order to avoid competition in the same industry and to fulfill the relevant horizontal competition commitments, Energy Group has signed the Entrusted Management Agreement with the company, and all the shareholders' rights other than the ownership, income, and disposal rights of the company that temporarily fails to meet the listing conditions in the company's custody area of the Energy Group are escrowed to our company. | the defect rectification of the underlying assets, study the rectification and solution to the defects and obstacles in the relevant assets that do not meet the listing conditions, promote relevant rectification work from the aspects of improving project approval or approval procedures, clarifying land and property ownership, enhancing asset profitability, and implementing legal compliance. For custody assets that meet the listing conditions in the future, Energy Group will, in accordance with the unified deployment of the Guangdong Provincial Party Committee and the provincial government and the overall requirements for the reform of state-owned enterprises, actively create conditions for the injection into listed companies in accordance with the status of the assets under custody, combined with enterprise restructuring, structural adjustment arrangements, electricity market and capital market conditions. |
IV. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
| Sessions | Type | Investor participation ratio | Meeting Date | Disclosure date | Disclosure index |
| The first provisional shareholders’ General meeting in 2020 | Provisional shareholders’ General Meeting | 72.63% | April 27,2020 | April 28,2020 | Announcement :Announcement of Resolution of the first Provisional shareholders’ general meeting in 2020，Announcement No.:2020-28, Published in China Securities Daily, Securities Times and http//.www.cninfo.com.cn |
| 2019 Shareholders’ general meeting | Annual General Meeting | 72.64% | May 20,2020 | May 21,2020 | Announcement :Announcement of Resolution of 2019 shareholders’ general meeting ，Announcement No.:2020-37. Published in China Securities Daily, Securities Times and http//.www.cninfo.com.cn |
| The Second provisional shareholders’ General meeting in 2020 | Provisional shareholders’ General Meeting | 72.66% | October 28,2020 | October 29,2020 | Announcement :Announcement of Resolution of the Second Provisional shareholders’ general meeting in 2020，Announcement No.:2020-57, Published in China Securities Daily, Securities Times and http//.www.cninfo.com.cn |
| The Third | Provisional | 72.56% | December | December | Announcement :Announcement of |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
provisionalshareholders’General meeting in2020
| provisional shareholders’ General meeting in 2020 | shareholders’ General Meeting | 21,2020 | 22,2020 | Resolution of the Third Provisional shareholders’ general meeting in 2020，Announcement No.:2020-68, Published in China Securities Daily, Securities 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 at board meetings and shareholders’ general meeting
| The attending of independent directors | |||||||
| Independent Directors | Number of Board meetings necessary to be attended in the reporting period | Number of spot attendances | Number of meetings attended by Communication | Number of attendances by representative | Number of absence | Failure to personally attend board meetings successively twice (Yes/No) | Times for attending the AGM |
| Sha Qilin | 12 | 9 | 3 | 0 | 0 | No | 4 |
| Shen Hongtao | 12 | 8 | 3 | 1 | 0 | No | 3 |
| Wang Xi | 12 | 9 | 3 | 0 | 0 | No | 4 |
| Ma Xiaoqian | 12 | 9 | 3 | 0 | 0 | No | 4 |
| Yin Zhongyu | 12 | 7 | 3 | 2 | 0 | No | 3 |
Notes to failure to personally attend Board Meetings Successively Twice
None
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.
3. Other notes to duty performance of independent directors
Has an independent director’s advice to the Company been accepted
√Yes □No
Explanation on acceptance of or failure to accept an independent director’s advice to the Company.NoneVI. 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 andremuneration and appraisal. Each professional committee has established their corresponding working rules andput forward related professional opinions and suggestions according to their respective duties to the companyoperating development, which promoted the standardized operation of the company. In 2020, the duty fulfillmentconditions 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,
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
the Audit Committee of the Board of Directors of the Company conscientiously has performed its duties andparticipated in the annual audit, internal control supervision, risk management, semi-annual report review andmajor accounting treatment review of the Company. During the reporting period, the Audit Committee of the ninthBoard of Directors held a total of 2 meetings to review and form review opinions on the Company's 2019 AnnualReport, 2019 Internal Control Evaluation Report, 2019 Comprehensive Risk Management Report, 2019 AuditInstitution Hiring, Provision for Impairment of Assets, 2020 Semi-Annual Report, and other proposals, whichplayed 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 theremuneration standard and the granting of annual remuneration can be combined with the performance of therespective positions, which is consistent with the company’s remuneration management regulations; theremuneration of directors, supervisors and senior management personnel disclosed in the annual report is true.
3. The budget committee of the Ninth board held its 3nd meeting on March 30, 2020 , reviewed and adopted the“Proposal on Illustration of Budget Implementation in 2019 and Budget Preparation in 2020”.
4. According to the Company Law, Stock Listing Rules, Articles of Association, Interim Provisions on Prohibitionof Securities Market and other relevant regulations, the nominating members of the Board of Directors carefullyexamined the qualifications of directors and senior managers of the Ninth Board of Directors of the Company, andformed relevant examination opinions and submitted them to the Board of Directors.
VII. Work of the supervisory CommitteeDid the supervisory Committee find any risk existing in performing the supervision activities in the reportingperiod
□Yes √No
The supervisory Committee has no objection against any matters under supervision in the reporting periodVIII. Assessment and incentive Mechanism for Senior executivesPerformance evaluation and incentive system will be employed by senior managers on the basis of enterprisesalary management system.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 oninternal control
| Disclosure date of appraisal report on internal control | April 10,2021 | |
| Disclosure index of appraisal report on internal control | Juchao Website:（http://www.cninfo.com.cn）, Selfevaluation report of internal control in 2020 | |
| Proportion of total unit assets covered by appraisal in the total assets of the consolidated financial statements of the company | 98.47% | |
| Proportion of total unit incomes covered by appraisal in the total business incomes of the consolidated financial statements of the company | 99.56% | |
| Standards of Defects Evaluation | ||
| Category | Financial Report | Non-financial Report |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
Qualitative criteria
| Qualitative criteria | Qualitative criteria of evaluation towards inner control deficiency of financial report made by company are as follows: Ⅰ, the inner control of financial report should be considered as “significant deficiency” if the following circumstances (including but not limited to) occurred: ① the ineffective environmental control; ② irregularities appearing between company directors, supervisors and senior executives; ③ serious mistakes in the financial statements of the current period found by external audit but not the inner control in the process of operating; ④ ineffective supervision of inner control from directorate and inner audit institution. Ⅱ, the inner control of financial report should be considered as “serious deficiency” if the following circumstances occurred: ① accounting policy chosen and applied is not based on the GAAP; ② anti-irregularity procedure and control measures are not established; ③ very few relative control measures are established or implemented in terms of the accounting treatment related to unconventional or special transaction; ④ one or more deficiencies exist in the control process of final financial report and the authenticity, accuracy and integrity of establishment can not be assured reasonably. Ⅲ common deficiency means, apart from the above “significant deficiency” and “serious deficiency”, other deficiencies exist in the inner control process. | Qualitative criteria of evaluation towards inner control deficiency of non-financial report made by company are as follows: ① significant deficiency means one or more combinations of control deficiency which may result in seriously deviating from control goals. ② serious deficiency means one or more combinations of control deficiency whose severity and financial result are less than those of significant deficiency with possibility of deviating company from its control goals. ③ common deficiency means other control deficiencies apart from significant and serious deficiencies. |
| Quantitative standard | A quantitative criterion regards operating receipt and gross value of assets as its yard stick. ① inner control deficiency may lead to loss related to profit statement, which is measured by operating receipt. The amount of misstatement in financial report resulted from the control deficiency or its combination is less than 0.5 percent of the operating receipt, 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 operating receipt. And that would be regarded as significant deficiency if that is more than 1 percent of the operating receipt. ② inner control deficiency may lead to loss related to assets management, which is measured by total assets. The amount of 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 | ①the significant deficiency means that the direct property loss is between 50 million yuan .(2) the significant deficiency means hat the direct property loss is between 30 million yuan (including 30 million yuan) ; the serious deficiency means that the direct property loss is between 30 million. |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
deficiency if that is more than 1 percent ofthe total assets.
| deficiency if that is more than 1 percent of the total assets. | ||
| Number of major defects in financial reporting（a） | 0 | |
| Number of major defects in non financial reporting (a) | 0 | |
| Number of important defects in financial reporting（a） | 0 | |
| Number of important defects in non financial reporting（a） | 0 | |
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 reporting in all material respects as of 31 December 2020 as per the Basic Rules for Enterprise Internal Control and relevant regulations. | |
| Disclosure date of audit report of internal control (full-text) | Disclosure |
| Index of audit report of internal control (full-text) | April 10,2021 |
| Internal audit report’s opinion | Juchao Website: （http://www.cninfo.com.cn）2020 Audit report of internal control |
| Type of audit report on internal control | Unqualified auditor’s report |
| Whether there is significant defect in non-financial report | No |
Has the CPAs issued a qualified auditor’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 ofDirectors
√Yes □No
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
XI. Corporate BondWhether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and
not yet due or due but not folly cashed on the approval date of annual reportYes
1.Basic information of corporate bonds
Bond name
| Bond name | Bond short name | Bond code | Issue day | Due day | Bond balance (RMB 10,000) | Interest rate | Servicing way |
| Public Issuance of Corporate Bonds to Qualified Investors in 2020 (Phase I) | 20 Yudean 01 | 149113.SZ | April 29,2020 | April 29,2025 | 150,000 | 2.45% | Using simple interest rate on a yearly basis, regardless of compound interest. Due payments once a year, maturing debt at a time. In the final phase, interest is paid together with the principal redemption. |
| Public Issuance of Corporate Bonds to Qualified Investors in 2021 (Phase I) | 21 Yudean 01 | 149369.SZ | January 27,2021 | January 27,2024 | 100,000 | 3.57% | Using simple interest rate on a yearly basis, regardless of compound interest. Due payments once a year, maturing debt at a time. In the final phase, interest is paid together with the principal redemption. |
| Corporate bonds listed or trading places | Shenzhen Stock Exchange | ||||||
| Investor Proper Arrangement | Not applicable | ||||||
| During the reporting period, interest payment situation of the company bonds | During the reporting period, the Bonds have not yet reached the interest payment date. | ||||||
| If the corporate bonds attached | The term of 20 Yudean 01 bonds is 5 years, attaching the option that the issuer will redeem at | ||||||
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
to special clauses to the issueror the investors such as optionclause and exchangeable clause,please specify theimplementation status of thecorresponding clauses. (Whenapplicable)
| to special clauses to the issuer or the investors such as option clause and exchangeable clause, please specify the implementation status of the corresponding clauses. (When applicable) | the end of the third year, the option that the issuer raises the coupon rate and the option that the investors will put back. During the reporting period, 21 Yudean 01 has no special clauses attached. he relevant clauses did not reach the implementation |
II. Bond trustee and the credit rating agency information
| Bond trustee： | ||||||||
| Name | China CITIC Securities Co., Ltd | Office | 2/F, B building, Kaiheng Center, Chaoyangmen Street, Dongcheng District , Beijing | Contact | Liu Renshuo | Tel | 010-86451370 | |
| The credit rating agencies which follow and rate the corporate bond during the reporting period | ||||||||
| Name | CCXI | Office address | Building 6, Yinhe SOHO, No.2 Nanzhugan Alley , Dongcheng District, Beijing | |||||
| During the report period, the bond trustee, credit rating agency employed by the company that have changed, reasons for the change, performing procedures, relevant influence on investors,etc(If applicable). | Not applicable | |||||||
III. The usage of corporate bonds to raise money
| The usage and performance of raised funds from Corporate bonds | As of the end of the reporting period, the funds raised by 20 Yudean 01 have been used up to repay the Company's debts and supplement the working capital. As of the approval date of the annual report, the funds raised by 21 Yudean 01 have been used up to repay the Company's debts. |
| At the end of balance (RMB 10,000) | 0 |
| Special fund raising account operation | The special account for raising funds shall be operated as agreed. |
| Whether the usage of the raised money corresponding to the purposes of promise, | Yes |
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
use plans, and other agreement
IV.Corporate bond rating informationOn April 20,2021, CCXI traced and analyzed the credit status of the company and the company’s bonds of“20Yudean 01”, Finalized by the China Credit Rating Credit Rating Committee, maintained the credit rating of AAA forthe main body of the company, with a stable outlook; maintained the credit rating of AAA for the corporatebonds.(The rating results were disclosed on the website: http://www.ccxi.com.cn and http://www.cninfo.com.cn, withthe title of Credit Rating Report for Public Issuance of Corporate Bonds to Qualified Investors in 2020 (Phase I) ofGuangdong Electric Power Development Co., Ltd.On January 12,2021, CCXI traced and analyzed the credit status of the company and the company’s bonds of“21Yudean 01”, Finalized by the China Credit Rating Credit Rating Committee, maintained the credit rating of AAA forthe main body of the company, with a stable outlook; maintained the credit rating of AAA for the corporatebonds.(The rating results were disclosed on the website: http://www.ccxi.com.cn and http://www.cninfo.com.cn, withthe title of Credit Rating Report for Public Issuance of Corporate Bonds to Qualified Investors in 2021 (Phase I) ofGuangdong Electric Power Development Co., Ltd.During the reporting period, the rating agencies did not issue a tracking rating report of 20 Yudean 01 and 21Yudean 01.V.Corporate bond credit mechanism, the debt repayment plans and other security measures
(1)The credit-raising mechanism: There is no guarantee for the bonds of 20 Yudean 01 and 21 Yudean 01.
（2）Debt repayment plan: The payment of principal and interest of 20 Yudean 01 and 21 Yudean 01 Bonds will be
handled through bond registration agencies and relevant institutions. The specific matters of payment will beexplained in the announcement disclosed by the issuer in the media specified by CSRC, Shenzhen StockExchange and China Securities Industry Association in accordance with relevant regulations.
（3）Debt repayment guarantee measures: In order to fully and effectively safeguard the legitimate rights andinterests of bondholders of the Bonds, the issuer has worked out a series of work plans for timely and fullrepayment of 20 Yudean 01 and 21 Yudean 01 Bonds, and strove to form a set of guarantee measures to ensure thesafe redemption of bonds. Including setting up a special reimbursement working group, formulating and strictlyimplementing the fund management plan, formulating the Rules of Bondholders' Meeting, giving full play to therole of bond trustee and strictly fulfilling information disclosure obligations, etc.VI. During the reporting period the bondholder meetingDuring the reporting period, the company did notDuring the reporting period, the company did not hold 20 Yudean 01 and 21 Yudean 01 bondholders meeting.VII. During the reporting period the bond trustee perform his dutiesAs the trustee of the bonds, China Securities has performed the duties of the bond trustee in strict accordance withthe Code of Practice of Corporate Bond Trustee, Prospectus and Trustee Management Agreement, and hascontinuously tracked the company's credit status, management and application of raised funds, and repayment of
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
principal and interest of corporate bonds, and urged the company to fulfill the obligations agreed in the prospectusof corporate bonds, thus safeguarding the legitimate rights and interests of bondholders.During the reporting period, there was no conflict of interest between China Securities and the issuer when ChinaSecurities performs the duties as a bond trustee.VIII.During the reporting period, the company's major accounting data and financial indicators for last 2years
In RMB 10,000
Items
| Items | 2020 | 2019 | At the same time rate of change |
| Earnings before interest, tax, depreciation and amortization | 805,371.38 | 755,964.55 | 6.54% |
| Current ratio | 53.38% | 57.45% | -4.07% |
| Debt ratio | 58.42% | 54.70% | 3.72% |
| Quick ratio | 41.74% | 43.44% | -1.70% |
| EBITDA/Total debts | 16.03% | 18.30% | -2.27% |
| Interest coverage ratio | 3.52 | 2.76 | 27.54% |
| Cash interest coverage ratio | 5.42 | 6.91 | -21.56% |
| EBITDA interest coverage ratio | 5.77 | 5.24 | 10.11% |
| 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 exceeds 30% over the lastyear
□ Applicable √Not applicable
IX. Information about fulfillment of the stipulations or commitments specified in the Prospectus of theissuance of the bonds during the reporting period
1. On August 14, 2019, the Company issued the third ultra-short-term financing bonds of RMB 900,000,000 in2019, with a bond duration of 180 days, and the repaid principal and interest during the reporting period is: RMB911,950,819.67;
2. On November 15, 2019, the Company issued the fourth ultra-short-term financing bonds of RMB1,000,000,000 in 2019, with a bond duration of 180 days, and the repaid principal and interest during the reportingperiod is: RMB1,011,311,475.41 ;
3. On February 20, 2020, the Company issued the First ultra-short-term financing bonds of RMB1,100,000,000 in2020, with a bond duration of 180 days, and the repaid principal and interest during the reporting period is:
RMB1,111,360,655.74 ;
4. On August 10, 2020, the Company issued the Second ultra-short-term financing bonds of RMB1,600,000,000in 2020, with a bond duration of 172 days, and the repaid principal and interest during the reporting period is:
RMB0 ;
5. On November 10, 2020, the Company issued the Third ultra-short-term financing bonds of RMB1,600,000,000
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
in 2020, with a bond duration of 178 days, and the repaid principal and interest during the reporting period is:
RMB0 ;
6. 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 repaid during the reporting period is:
RMB 33,520,000;
7. On March 18, 2013, the Company publicly issued 12 Yudean Bonds (i.e. real name book-entry corporate bonds)with a face value of RMB 1,200,000,000 and a term of 5+2 years, and the repaid principal and interest during thereporting period is: RMB 42,301,671.75;
8. Guangdong Huizhou Pinghai Power Plant Co., Ltd., a holding subsidiary of the Company, publicly issued 16Pinghai 01 real-name book-entry corporate bonds ("16 Pinghai 01") with a face value of RMB 700,000,000 and aterm of 5 years to the public on September 26, 2016, and the repaid interest during the reporting period is: RMB29,050,000.
X.Information about the bank credit obtaining and use, as well as repayment of the bank loans during thereporting periodIn the report period, the company signed an unconditional available bank amount limit of about RMB 69.584billion, of which the used amount limit was RMB 19.911 billion, thus the remaining available bank amount limitwas about RMB 49.673 billion. In this year, the company repaid bank loans of about RMB17.765 billion, and thebalance of bank loans was RMB 28.012billion.XI. Information about fulfillment of the stipulations or commitments specified in the Prospectus of the issuance ofthe bonds during the reporting periodThe company had committed to pay the principal and interests to the bondholders according to the stipulations ofthe prospectus of “20 Yudean 01 and 21 Yudean 01 Bonds” issuance. During the reporting period, the companystrictly fulfilled the above commitments.XI.Major events occurring in the period of reportNilXII.Whether there is a guarantor corporate bonds
□ Yes √No
Guangdong Electric Power Development Co., Ltd. 2020 Annual Report
XII.. Financial ReportI. Audit report
Type of audit opinion
| Type of audit opinion | Unqualified audit opinion |
| Date for signing the auditor’s report | April 8 ,2021 |
| Type of audit opinion | PWC Certified Public Accountants (special general partnership) |
| Date for signing the auditor’s report | PWC ZTSZD No.(2021) 10033 |
| Type of audit opinion | Wang Bin, Li Yanhua |
FINANCIAL STATEMENTS ANDAUDITOR'S REPORTFOR THE YEAR ENDED 31 DECEMBER 2020
[English translation for reference only. Should there be any inconsistency between theChinese and English versions, the Chinese version shall prevail.]
Guangdong Electric Power Development Co., Ltd.
Financial Statements and Auditor's ReportFor the Year Ended 31 December 2020[English translation for reference only]
| Guangdong Electric Power Development Co., Ltd. Financial Statements and Auditor's Report For the Year Ended 31 December 2020 [English translation for reference only] | |
| Content | Page |
| Auditor’s Report | 116 - 124 |
| Financial statements for the year ended 31 December 2020 | |
| Consolidated and company balance sheets | 125 - 128 |
| Consolidated and company income statements | 129 - 130 |
| Consolidated and company cash flow statements | 131 - 133 |
| Consolidated statement of changes in equity | 134 - 135 |
| Company statement of changes in equity | 136 - 137 |
| Notes to the financial statements | 138 - 305 |
| Supplementary Information of financial statements | 306 - 309 |
[English Translation for Reference Only]
Auditor’s Report
PwC ZT Shen Zi (2021) No. 10033
(Page 1 of 9)
To the 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 2020;? 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 in owners’ 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, theconsolidated and company’s financial position of Guangdong Electric Power as at 31 December 2020, andtheir financial performance and cash flows for the year then ended in accordance with the requirements ofthe Accounting Standards for Business Enterprises (“CASs”).
Basis for Opinion
We conducted our audit in accordance with China Standards on Auditing (“CASs”). Our responsibilitiesunder those standards are further described in the Auditor’s Responsibilities for the Audit of the FinancialStatements section of our report. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.
We are independent of Guangdong Electric Power in accordance with the Code of Ethics for ProfessionalAccountants of the Chinese Institute of Certified Public Accountants (“CICPA Code”), and we have fulfilledour other ethical responsibilities in accordance with the CICPA Code.
Key Audit Matter
Key audit matters are those matters that, in our professional judgement, were of most significance in ouraudit of the financial statements of the current period. These matters were addressed in the context of ouraudit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide aseparate opinion on these matters.
Key audit matters identified in our audit are summarised as follows:
? Impairment of power related fixed assets and long-term equity investments? Recognition of loss for investment in an associate due to provision for impairment of long-term
assets? Recognition of deferred tax assets related to deductible losses
PwC ZT Shen Zi (2021) No. 10033
Page 2 of 9)
Key Audit Matters (Cont’d)
Key Audit Matter
| Key Audit Matter | How our audit addressed the Key Audit Matter |
| (1) Impairment of power related fixed assets and long-term equity investments Refer to Note 2(27)(b)(i), Note 4(10)(b)(iii) and Note 4(13)(a)(vi) to the financial statements (Note 1). Certain subsidiaries and an associate, Weixin Yuntou Yudean Zhaxi Energy Co., Ltd. (hereinafter referred to as “Weixin Yuntou”) of Guangdong Electric Power have been experiencing continuous operating losses in recent years. Taking into account possible future risks, such as the instability of electricity demand, the unstable price of coal used in power generation, the macro-economy and other risk factors, management continuously observed the impairment of the aforesaid subsidiaries' asset groups of generator units (mainly including fixed assets) and the long-term equity investments of the aforesaid associate. As at 31 December 2020, management conducted impairment tests for the aforesaid subsidiaries and associate, and made a provision for impairment at the excess of the carrying amount of asset groups of generator units and long-term equity investments over their recoverable amount. The recoverable amount of the asset groups was the higher of the fair value, less disposal costs, of the asset groups and the long-term equity investments and the present value of the estimated future cash flows. The calculations of the fair value less disposal costs and the present value of the estimated future cash flows involve management’s significant judgements, including the discount rate, the estimated on-grid electricity price and its growth rate, the estimated electricity sales and its growth rate, the estimated price of coal used in power generation, the estimated asset disposal price and the estimated disposal costs. | Our audit procedures for the impairment of power related fixed assets and long-term equity investments mainly include: ? We understood and evaluated the internal control relevant to test the impairment of fixed assets and long-term equity investments and tested the operating effectiveness of key control; ? We involved internal valuers to review and analyse the appropriateness of the method applied by management for the impairment test; ? Based on our understanding of the businesses of the subsidiaries and associate as well as the industry in which they operate, we compared with and analysed the assumptions adopted by management, including the discount rate, the estimated on-grid price and its growth rate, the estimated electricity sales and its growth rate, the estimated price of coal used in power generation, the estimated asset disposal price and the estimated disposal costs; we evaluated the reasonableness of the assumptions on fair value less disposal costs and the present value of the estimated future cash flows: - For the discount rate, we involved internal valuers to evaluate the appropriateness in combination with industry situation; - For the estimated on-grid electricity price and its growth rate, we compared historical growth rates and industry data, and considered market trend; - For the estimated electricity sales, its growth rate, and the estimated price of coal used in power generation, we have compared historical data, approved budgets and business plans, and checked the corresponding supporting documents; |
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Key Audit Matters (Cont’d)
Key Audit Matters (Cont’d)
| Key Audit Matters (Cont’d) | How our audit addressed the Key Audit Matter (Cont’d) |
| (i) Impairment of power related fixed assets and long-term equity investments (Cont’d) As the carrying amounts of fixed assets and long-term equity investments with indication of impairment are significant to the consolidated financial statements of Guangdong Electric Power, and the impairment test of asset groups of generator units and long-term equity investments involves management’s significant estimates and judgements, impairment of power related fixed assets and long-term equity investments is identified as a key audit matter. | Our audit procedures for the impairment of power related fixed assets and long-term equity investments mainly include (Cont’d): ? We checked the input data and formulas used in the calculation of the present value of estimated future cash flows, and evaluated the mathematic accuracy; ? We conducted sensitivity analysis on the discount rate and other key assumptions applied by management, and evaluated how the changes in key assumptions (individually or in aggregate) will give rise to different results to further evaluate if there’s any indication of management bias in selecting parameters of key assumptions. Based on the results of the aforesaid work, we found that management's judgements and estimates on the impairment of fixed assets and long-term equity investments are supported by appropriate evidence. |
| (ii) Recognition of loss for investment in an associate due to provision for impairment of long-term assets Refer to Note 2(11)(b), Note 4(10)(b)(i) to the financial statements. In 2020, Guangdong Yudean Shipping Co., Ltd. (hereinafter referred to as “Yudean Shipping”), associate of Guangdong Electric Power, has delivered a weaker performance than expected due to the sluggish international shipping market, continuous fluctuation in shipping prices, and rising operating costs. Thus, there is an indication of impairment of related long-term assets, and Yudean Shipping has made provision for impairment of long-term assets. In 2020, Yudean Shipping recognised a net loss of RMB 579,173,582, including a loss of RMB 585,756,126 arising from the provision for impairment loss on long-term assets and a loss of RMB 202,710,755 for investment in Yudean Shipping recognised by Guangdong Electric Power under the equity method. As at 31 December 2020, the carrying amount of the long-term equity investment of Guangdong Electric Power in Yudean Shipping was RMB 241,738,113. | Our audit procedures for the recognition of loss for investment in an associate due to provision for impairment of long-term assets mainly include: ? We interviewed management of Yudean Shipping to understand the current year's operating results and the reasons for the loss related to impairment provision; ? We obtained the report of Yudean Shipping on the evaluation of impairment of its main asset groups, and involved an internal valuer to review and analyse the reasonableness of its testing method; |
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Key Audit Matters (Cont’d)
Key Audit Matters (Cont’d)
| Key Audit Matters (Cont’d) | How our audit addressed the Key Audit Matter (Cont’d) |
| (ii) Recognition of loss for investment in an associate due to provision for impairment of long-term assets (Cont’d) Given the recognition of loss for investment in Yudean Shipping under the equity method in 2020 and the importance of the carrying amount of this long-term equity investment to the consolidated financial statements of Guangdong Electric Power, the recognition of loss for investment in an associate due to provision for impairment of long-term assets is identified as a key audit matter. | Our audit procedures for the recognition of loss for investment in an associate due to provision for impairment of long-term assets mainly include (Cont’d): ? Based on our understanding of the businesses of Yudean Shipping and the industry in which it operates, we compared with and analysed the assumptions adopted by management, including the discount rate, the estimated shipping price and its growth rate, the estimated shipping capacity and its growth rate, and the estimated operating costs; we evaluated the reasonableness of the assumptions adopted by management in the calculations of the fair value, less disposal costs, and the present value of the estimated future cash flows: - For the discount rate, we involved internal valuers to evaluate its appropriateness in combination with industry situation; - For future shipping price and its growth rate, we compared it to historical growth rates and took the current market trend into consideration; - For the estimated shipping capacity and its growth rate, the estimated operating costs, etc., we compared them to the historical data, the approved budget and its business plan and checked the corresponding supporting documents; |
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Key Audit Matters (Cont’d)
Key Audit Matters (Cont’d)
| Key Audit Matters (Cont’d) | How our audit addressed the Key Audit Matter (Cont’d) |
| (ii) Recognition of loss for investment in an associate due to provision for impairment of long-term assets (Cont’d) | Our audit procedures for the recognition of loss for investment in an associate due to provision for impairment of long-term assets mainly include (Cont’d): ? We recalculated the investment loss in Yudean Shipping as recognised by management under equity method, and evaluated the accuracy of the calculation results; ? We checked management's presentation and disclosure of long-term equity investments and investment losses in the financial statements; Based on the results of the above work, we found that management's judgement on the recognition of loss for investment in an associate due to provision for impairment of long-term assets is supported by appropriate evidence. |
| (iii) Recognition of deferred tax assets related to deductible losses Refer to Note 2(27)(b)(iv) and Note 4(18) to the financial statements. As at 31 December 2020, Guangdong Electric Power recognised the corresponding deferred tax assets for the deductible losses incurred by individual subsidiaries at a total of RMB 216,733,521. According to the financial forecast of the aforesaid subsidiaries in future periods, management recognises deferred tax assets within the limits of which the aforesaid subsidiaries are likely to obtain future taxable income to offset the deductible losses. The financial forecast of the aforesaid subsidiaries in future periods involves significant management judgements, including estimated electricity sales, estimated on-grid electricity price, estimated price of coal used in power generation and other operating expenses. | Our audit procedures for the recognition of deferred tax assets related to deductible losses mainly include: ? We obtained management's calculation sheet for the financial forecast in future periods, checked the input data and formulas used in the calculation, and evaluated the mathematic accuracy; ? We obtained supporting documents such as the income tax settlement report, tax returns and accounting records of the aforesaid subsidiaries, and reviewed for the existence of deductible losses and the accuracy of the amount and period; ? Based on our understanding of the businesses of the aforesaid subsidiaries and the industry in which they operate, we evaluated the key assumptions used by management to calculate the expected taxable income for future periods, including the reasonableness of assumptions on estimated electricity sales, estimated on-grid electricity price, estimated fuel price, and other operating expenses; |
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Key Audit Matters (Cont’d)
Key Audit Matters (Cont’d)
| Key Audit Matters (Cont’d) | How our audit addressed the Key Audit Matter (Cont’d) |
| (iii) Recognition of deferred tax assets related to deductible losses (Cont’d) As the deferred tax assets related to deductible losses are significant to the consolidated financial statements of Guangdong Electric Power, and the financial forecast for future periods involves management’s significant estimates and judgements, the recognition of the deferred tax assets related to tax losses is identified as a key audit matter. | Our audit procedures for the recognition of deferred tax assets related to deductible losses mainly include (Cont’d): ? We compared the taxable income estimated by management last year with the actual taxable income for the current year to access the historical accuracy of management’s forecast; ? We reviewed whether the deferred tax assets were recognised within the limits of which the taxable income was likely to be obtained in the future to offset deductible losses and deductible temporary differences. Based on the results of the above work, we found that management's estimates regarding the recognition of deferred tax assets related to deductible losses were supported by appropriate evidence. |
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Other Information
Management of Guangdong Electric Power is responsible for the other information. The other informationcomprises all of the information included in 2020 annual report of Guangdong Electric Power other than thefinancial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form ofassurance 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 orour knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work wehave performed, we conclude that there is a material misstatement of this other information, we are required toreport that fact. We have nothing to report in this regard.
Responsibilities of Management and Audit Committee for the Financial Statements
Management of Guangdong Electric Power is responsible for the preparation and fair presentation of thesefinancial statements in accordance with the CASs, and for such internal control as management determines isnecessary to enable the preparation of financial statements that are free from material misstatement, whetherdue to fraud or error.
In preparing these financial statements, management is responsible for assessing Guangdong Electric Power’sability to continue as a going concern, disclosing, as applicable, matters related to going concern and using thegoing concern basis of accounting unless management either intends to liquidate Guangdong Electric Power orto cease operations, or has no realistic alternative but to do so.
The Audit Committee is responsible for overseeing Guangdong Electric Power’s financial reporting process.
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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 freefrom material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes ouropinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted inaccordance with CASs will always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if, individually or in the aggregate, they could reasonably be expectedto influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with CASs, we exercise professional judgement and maintain professionalscepticism throughout the audit. We also:
? Identify and assess the risks of material misstatement of the financial statements, whether due to fraudor error, design and perform audit procedures responsive to those risks, and obtain audit evidence that issufficient and appropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error, as fraud may involvecollusion, 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 thatare appropriate in the circumstances.
? Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimatesand related disclosures made by management.
? Conclude on the appropriateness of management’s use of the going concern basis of accounting and,based on the audit evidence obtained, whether a material uncertainty exists related to events orconditions that may cast significant doubt on Guangdong Electric Power’s ability to continue as a goingconcern. 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 areinadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor’s report. However, future events or conditions may cause Guangdong Electric Powerto cease to continue as a going concern.
? Evaluate the overall presentation, structure and content of the financial statements, including thedisclosures, and whether the financial statements represent the underlying transactions and events in amanner that achieves fair presentation.
? Obtain sufficient appropriate audit evidence regarding the financial information of the entities orbusiness activities within Guangdong Electric Power to express an opinion on the consolidated financialstatements. We are responsible for the direction, supervision and performance of the group audit. Weremain solely responsible for our audit opinion.
We communicate with the Audit Committee regarding, among other matters, the planned scope and timing of theaudit and significant audit findings, including any significant deficiencies in internal control that we identifyduring our audit.
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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 ethicalrequirements regarding independence, and to communicate with them all relationships and other matters thatmay 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 mostsignificance in the audit of the financial statements of the current period and are therefore the key audit matters.We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about thematter or when, in extremely rare circumstances, we determine that a matter should not be communicated inour report because the adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits of such communication.
PricewaterhouseCoopers Zhong Tian LLP
Shanghai, the People’s Republic of China8 April 2021
| PricewaterhouseCoopers Zhong Tian LLP Shanghai, the People’s Republic of China 8 April 2021 | Signing CPA Signing CPA | _______________________ Wang Bin (Engagement Partner) _______________________ Li Yanhua |
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
ASSETS
| ASSETS | Note | 31 December 2020 | 31 December 2019 | |
| Current assets | ||||
| Cash at bank and on hand | 4(1) | 5,790,946,117 | 5,081,641,969 | |
| Accounts receivable | 4(2) | 4,332,149,033 | 3,197,690,464 | |
| Advances to suppliers | 4(3) | 766,871,830 | 605,314,333 | |
| Other receivables | 4(4) | 459,266,554 | 272,801,588 | |
| Inventories | 4(5) | 1,589,882,029 | 1,817,059,269 | |
| Contract assets | 4(6) | 3,870,497 | — | |
| Current portion of non-current assets | 4(7) | 49,785,734 | 28,865,131 | |
| Other current assets | 4(8) | 546,685,636 | 305,595,567 | |
| Total current assets | 13,539,457,430 | 11,308,968,321 | ||
| Non-current assets | ||||
| Long-term receivables | 4(9) | - | 65,856,346 | |
| Long-term equity investments | 4(10) | 6,687,257,614 | 6,455,784,562 | |
| Investments in other equity instruments | 4(11) | 3,548,088,015 | 3,142,371,373 | |
| Investment properties | 4(12) | 49,732,668 | 52,093,631 | |
| Fixed assets | 4(13) | 47,195,233,079 | 38,555,718,718 | |
| Construction in progress | 4(14) | 9,153,637,100 | 10,882,003,846 | |
| Intangible assets | 4(15) | 2,141,625,383 | 1,787,738,640 | |
| Goodwill | 4(16) | 2,449,886 | 2,449,886 | |
| Long-term prepaid expenses | 4(17) | 26,409,305 | 19,473,586 | |
| Deferred tax assets | 4(18) | 446,587,650 | 445,709,226 | |
| Other non-current assets | 4(19) | 3,180,340,038 | 2,753,858,988 | |
| Total non-current assets | 72,431,360,738 | 64,163,058,802 | ||
| TOTAL ASSETS | 85,970,818,168 | 75,472,027,123 | ||
CONSOLIDATED BALANCE SHEET (CONT’D)
AS AT 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
LIABILITIES AND OWNERS' EQUITY
| LIABILITIES AND OWNERS' EQUITY | Note | 31 December 2020 | 31 December 2019 | |
| Current liabilities | ||||
| Short-term borrowings | 4(21) | 7,622,427,916 | 5,904,132,791 | |
| Notes payable | 4(22) | 1,092,292,546 | 1,364,236,650 | |
| Accounts payable | 4(23) | 2,666,180,513 | 2,465,154,162 | |
| Advances from customers | - | 432,714 | ||
| Contract liabilities | 4(24) | 6,573,912 | - | |
| Employee benefits payable | 4(25) | 304,548,373 | 242,510,538 | |
| Taxes payable | 4(26) | 498,801,080 | 571,377,151 | |
| Other payables | 4(27) | 6,775,700,584 | 4,042,117,097 | |
| Current portion of non-current liabilities | 4(28) | 3,180,551,951 | 3,182,980,482 | |
| Other current liabilities | 4(29) | 3,217,523,576 | 1,912,282,192 | |
| Total current liabilities | 25,364,600,451 | 19,685,223,777 | ||
| Non-current liabilities | ||||
| Long-term borrowings | 4(30) | 18,998,555,568 | 16,587,103,380 | |
| Debentures payable | 4(31) | 1,499,542,911 | 1,496,631,799 | |
| Long-term payables | 4(32) | 3,171,971,127 | 2,485,346,245 | |
| Deferred income | 4(33) | 134,647,590 | 139,256,513 | |
| Long-term employee benefits payable | 4(34) | 218,543,743 | 134,988,860 | |
| Deferred tax liabilities | 4(18) | 638,571,910 | 537,385,614 | |
| Other non-current liabilities | 4(35) | 200,970,029 | 216,405,569 | |
| Total non-current liabilities | 24,862,802,878 | 21,597,117,980 | ||
| Total liabilities | 50,227,403,329 | 41,282,341,757 | ||
| Owners' equity | ||||
| Share capital | 4(36) | 5,250,283,986 | 5,250,283,986 | |
| Capital surplus | 4(37) | 4,902,263,914 | 5,096,918,174 | |
| Other comprehensive income | 4(38) | 1,946,305,595 | 1,676,143,044 | |
| Surplus reserve | 4(39) | 8,515,360,638 | 8,245,767,593 | |
| Undistributed profits | 4(40) | 6,755,781,289 | 5,909,128,280 | |
| Total equity attributable to equity owners of the Company | 27,369,995,422 | 26,178,241,077 | ||
| Minority interests | 8,373,419,417 | 8,011,444,289 | ||
| Total owners' equity | 35,743,414,839 | 34,189,685,366 | ||
| TOTAL LIABILITIES AND OWNERS' EQUITY | 85,970,818,168 | 75,472,027,123 | ||
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 |
COMPANY BALANCE SHEETAS AT 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
ASSETS
| ASSETS | Note | 31 December 2020 | 31 December 2019 | |
| Current assets | ||||
| Cash at bank and on hand | 338,045,631 | 224,504,289 | ||
| Accounts receivable | 15(1) | 173,029,247 | 209,249,102 | |
| Advances to suppliers | 26,680,500 | 43,002,000 | ||
| Other receivables | 15(2) | 328,224,857 | 108,149,278 | |
| Inventories | 118,530,205 | 151,518,056 | ||
| Other current assets | 1,209,217 | 1,228,009 | ||
| Total current assets | 985,719,657 | 737,650,734 | ||
| Non-current assets | ||||
| Long-term receivables | 467,000,000 | 340,000,000 | ||
| Long-term equity investments | 15(3) | 28,453,042,855 | 26,514,106,513 | |
| Investments in other equity instruments | 3,548,088,015 | 3,142,371,373 | ||
| Investment properties | 6,389,845 | 7,025,443 | ||
| Fixed assets | 559,635,880 | 706,435,221 | ||
| Construction in progress | 200,574 | 14,945,019 | ||
| Intangible assets | 81,954,649 | 85,839,959 | ||
| Other non-current assets | 208,353,879 | 356,004,000 | ||
| Total non-current assets | 33,324,665,697 | 31,166,727,528 | ||
| TOTAL ASSETS | 34,310,385,354 | 31,904,378,262 | ||
COMPANY BALANCE SHEET (CONT’D)
AS AT 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
LIABILITIES AND OWNERS’ EQUITY
| LIABILITIES AND OWNERS’ EQUITY | Note | 31 December 2020 | 31 December 2019 | |
| Current liabilities | ||||
| Short-term borrowings | 1,902,013,125 | 1,401,641,708 | ||
| Accounts payable | 136,723,162 | 156,122,676 | ||
| Contract liabilities | 6,343,773 | — | ||
| Employee benefits payable | 93,479,997 | 63,480,425 | ||
| Taxes payable | 28,112,055 | 44,298,675 | ||
| Other payables | 40,872,386 | 71,126,853 | ||
| Current portion of non-current liabilities | 836,189,634 | 1,554,314,700 | ||
| Other current liabilities | 3,217,281,173 | 1,912,282,192 | ||
| Total current liabilities | 6,261,015,305 | 5,203,267,229 | ||
| Non-current liabilities | ||||
| Debentures payable | 1,499,542,911 | 798,857,333 | ||
| Long-term payables | - | 3,466,237 | ||
| Deferred income | 29,988,606 | 39,984,807 | ||
| Long-term employee benefits payable | 56,805,513 | 36,570,958 | ||
| Deferred tax liabilities | 621,507,946 | 535,193,684 | ||
| Total non-current liabilities | 2,207,844,976 | 1,414,073,019 | ||
| Total liabilities | 8,468,860,281 | 6,617,340,248 | ||
| Owners' equity | ||||
| Share capital | 5,250,283,986 | 5,250,283,986 | ||
| Capital surplus | 5,405,326,643 | 5,599,980,903 | ||
| Other comprehensive income | 1,946,305,595 | 1,676,143,044 | ||
| Surplus reserve | 8,515,360,638 | 8,245,767,593 | ||
| Undistributed profits | 4,724,248,211 | 4,514,862,488 | ||
| Total owners' equity | 25,841,525,073 | 25,287,038,014 | ||
| TOTAL LIABILITIES AND OWNERS' EQUITY | 34,310,385,354 | 31,904,378,262 |
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 |
CONSOLIDATED INCOME STATEMENTFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Item
| Item | Note | 2020 | 2019 | ||
| Revenue | 4(41) | 28,329,065,391 | 29,360,155,150 | ||
| Less: | Cost of sales | 4(41) | (22,472,276,501) | (24,480,703,872) | |
| Taxes and surcharges | 4(42) | (253,585,385) | (249,721,761) | ||
| Selling and distribution expenses | 4(43) | (49,214,514) | (43,788,762) | ||
| General and administrative expenses | 4(44) | (835,927,395) | (874,640,868) | ||
| Research and development expenses | 4(45) | (274,579,716) | (9,703,602) | ||
| Financial expenses | 4(46) | (1,108,522,064) | (1,230,315,841) | ||
| Including: Interest expenses | 1,111,500,948 | 1,230,637,704 | |||
| Interest income | 76,249,292 | 66,836,652 | |||
| Add: | Other income | 4(50) | 39,698,146 | 42,071,653 | |
| Investment income | 4(51) | 300,836,022 | 125,541,240 | ||
| Including: Share of profit of associates and joint ventures | 235,387,197 | 64,909,255 | |||
| Less: | (Losses on)/Reversal of credit impairment | 4(49) | (300,656) | 46,348,884 | |
| Asset impairment losses | 4(48) | (487,542,577) | (161,731,338) | ||
| Add: | Gains on disposal of assets | 4(52) | 340,976,361 | 20,503,424 | |
| Operating profit | 3,528,627,112 | 2,544,014,307 | |||
| Add: | Non-operating income | 4(53) | 86,920,206 | 33,236,719 | |
| Less: | Non-operating expenses | 4(54) | (93,280,408) | (32,011,127) | |
| Total profit | 3,522,266,910 | 2,545,239,899 | |||
| Less: | Income tax expenses | 4(55) | (887,005,403) | (738,065,009) | |
| Net profit | 2,635,261,507 | 1,807,174,890 | |||
| Classified by continuity of operations | |||||
| Net profit from continuing operations | 2,635,261,507 | 1,807,174,890 | |||
| Net profit from discontinued operations | - | - | |||
| Classified by ownership of the equity | |||||
| Attributable to equity owners of the Company | 1,746,280,132 | 1,146,767,033 | |||
| Minority interests | 888,981,375 | 660,407,857 | |||
| Other comprehensive income, net of tax | |||||
| Attributable to equity owners of the Company | 4(38) | 270,162,551 | 1,126,132,911 | ||
| Other comprehensive income that will not be reclassified to profit or loss | |||||
| Changes in fair value of investments in other equity instruments | 251,985,062 | 1,123,802,101 | |||
| Other comprehensive income that cannot be subsequently transferred to profit or loss under the equity method | 18,578,841 | 2,110,342 | |||
| Other comprehensive income items which can be reclassified subsequently to profit or loss | |||||
| Other comprehensive income that can be subsequently transferred to profit or loss under the equity method | (401,352) | 220,468 | |||
| Total comprehensive income | 2,905,424,058 | 2,933,307,801 | |||
| Attributable to shareholders of the Company | 2,016,442,683 | 2,272,899,944 | |||
| Attributable to minority interests | 888,981,375 | 660,407,857 | |||
| Earnings per share | |||||
| Basic earnings per share (RMB Yuan) | 4(56) | 0.33 | 0.22 | ||
| Diluted earnings per share (RMB Yuan) | 4(56) | 0.33 | 0.22 | ||
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 |
COMPANY INCOME STATEMENTFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Item
| Item | Note | 2020 | 2019 | ||
| Revenue | 15(4) | 1,221,597,027 | 2,209,770,578 | ||
| Less: | Cost of sales | 15(4) | (1,161,627,038) | (2,092,814,820) | |
| Taxes and surcharges | (14,120,096) | (18,252,419) | |||
| Selling and distribution expenses | (2,949,082) | (2,072,707) | |||
| General and administrative expenses | (149,616,128) | (124,632,105) | |||
| Research and development expenses | (9,814,665) | (961,443) | |||
| Financial expenses | (212,937,750) | (206,287,649) | |||
| Including: Interest expenses | 217,096,206 | 207,829,042 | |||
| Interest income | 5,070,493 | 5,256,138 | |||
| Add: | Other income | 10,079,699 | 13,186,290 | ||
| Investment income | 15(5) | 1,576,864,127 | 1,074,476,943 | ||
| Including: Share of profit of associates and joint ventures | 230,001,917 | 58,731,138 | |||
| Less: | (Losses on)/Reversal of credit impairment | 15(6) | (37,463) | 48,617,737 | |
| Asset impairment losses | 15(7) | (162,336,342) | (71,317,168) | ||
| Add: | Gains on disposal of assets | 157,963 | - | ||
| Operating profit | 1,095,260,252 | 829,713,237 | |||
| Add: | Non-operating income | 23,324,983 | 4,222,347 | ||
| Less: | Non-operating expenses | (5,196,433) | (2,538,378) | ||
| Total profit | 1,113,388,802 | 831,397,206 | |||
| Less: | Income tax expenses | (4,375,956) | (61,131,363) | ||
| Net profit | 1,109,012,846 | 770,265,843 | |||
| Classified by continuity of operations | |||||
| Net profit from continuing operations | 1,109,012,846 | 770,265,843 | |||
| Net profit from discontinued operations | - | - | |||
| Other comprehensive income, net of tax | 270,162,551 | 1,126,132,911 | |||
| Other comprehensive income that will not be reclassified to profit or loss | |||||
| Changes in fair value of investments in other equity instruments | 251,985,062 | 1,123,802,101 | |||
| Other comprehensive income that cannot be subsequently transferred to profit or loss under the equity method | 18,578,841 | 2,110,342 | |||
| Other comprehensive income items which can be reclassified subsequently to profit or loss | |||||
| Other comprehensive income that can be subsequently transferred to profit or loss under the equity method | (401,352) | 220,468 | |||
| Total comprehensive income | 1,379,175,397 | 1,896,398,754 | |||
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 |
CONSOLIDATED CASH FLOW STATEMENTFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Item
| Item | Note | 2020 | 2019 | |
| Cash flows from operating activities | ||||
| Cash received from sales of goods or rendering of services | 30,852,391,660 | 33,450,306,969 | ||
| Refund of taxes and surcharges | 120,199,533 | 13,549,274 | ||
| Cash received relating to other operating activities | 4(57)(a) | 165,402,170 | 195,328,767 | |
| Sub-total of cash inflows | 31,137,993,363 | 33,659,185,010 | ||
| Cash paid for goods and services | (19,797,671,869) | (20,616,807,058) | ||
| Cash paid to and on behalf of employees | (1,820,849,783) | (1,880,454,324) | ||
| Payments of taxes and surcharges | (2,514,991,463) | (2,097,461,395) | ||
| Cash paid relating to other operating activities | 4(57)(b) | (723,699,079) | (791,779,121) | |
| Sub-total of cash outflows | (24,857,212,194) | (25,386,501,898) | ||
| Net cash flows from operating activities | 4(58)(a) | 6,280,781,169 | 8,272,683,112 | |
| Cash flows from investing activities | ||||
| Cash received from disposal of investments | - | 48,647,647 | ||
| Cash received from returns on investments | 482,893,552 | 239,149,433 | ||
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 326,388,591 | 73,007,745 | ||
| Cash received relating to other investing activities | 4(57)(c) | 33,734,619 | - | |
| Sub-total of cash inflows | 843,016,762 | 360,804,825 | ||
| Cash paid to acquire fixed assets, intangible assets and other long-term assets | ||||
| (7,978,451,246) | (4,818,610,061) | |||
| Cash paid to acquire investments | (796,075,842) | (328,162,240) | ||
| Net cash paid to acquire subsidiaries and other business units | 4(58)(b) | (40,880,216) | - | |
| Cash paid relating to other investing activities | 4(57)(d) | (141,792,496) | - | |
| Sub-total of cash outflows | (8,957,199,800) | (5,146,772,301) | ||
| Net cash flows used in financing activities | (8,114,183,038) | (4,785,967,476) | ||
CONSOLIDATED CASH FLOW STATEMENT (CONT'D)
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Item
| Item | Note | 2020 | 2019 | |
| Cash flows from financing activities | ||||
| Cash received from capital contributions | 4,400,000 | 526,340,000 | ||
| Including: Cash received from capital contributions by minority shareholders of subsidiaries | 4,400,000 | 526,340,000 | ||
| Cash received from borrowings | 23,540,514,639 | 14,527,600,487 | ||
| Cash received from issuance of debentures | 1,499,471,698 | - | ||
| Cash received relating to other financing activities | 4(57)(e) | - | 100,000,000 | |
| Sub-total of cash inflows | 25,044,386,337 | 15,153,940,487 | ||
| Cash repayments of borrowings | (19,538,646,624) | (16,563,416,551) | ||
| Cash payments for distribution of dividends, profits or interest expenses | (2,808,213,989) | (2,273,764,488) | ||
| Including: Cash payments for dividends or profit to minority interests of subsidiaries | (547,811,816) | (415,937,941) | ||
| Cash paid relating to other financing activities | 4(57)(f) | (180,145,921) | (294,216,260) | |
| Sub-total of cash outflows | (22,527,006,534) | (19,131,397,299) | ||
| Net cash flows from/(used in) financing activities | 2,517,379,803 | (3,977,456,812) | ||
| Effect of foreign exchange rate changes on cash and cash equivalents | (27) | 253 | ||
| Net increase/(decrease) in cash and cash equivalents | 4(58)(a) | 683,977,907 | (490,740,923) | |
| Add: Cash and cash equivalents at the beginning of the year | 5,079,641,969 | 5,570,382,892 | ||
| Cash and cash equivalents at the end of the year | 4(58)(c) | 5,763,619,876 | 5,079,641,969 | |
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 |
COMPANY CASH FLOW STATEMENTFOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Item
| Item | 2020 | 2019 | |
| Cash flows from operating activities | |||
| Cash received from sales of goods or rendering of services | 1,418,456,795 | 2,565,249,720 | |
| Cash received relating to other operating activities | 37,621,882 | 13,481,620 | |
| Sub-total of cash inflows | 1,456,078,677 | 2,578,731,340 | |
| Cash paid for goods and services | (920,870,342) | (1,804,883,929) | |
| Cash paid to and on behalf of employees | (314,966,765) | (321,850,372) | |
| Payments of taxes and surcharges | (81,690,906) | (105,174,506) | |
| Cash paid relating to other operating activities | (68,583,529) | (48,028,306) | |
| Sub-total of cash outflows | (1,386,111,542) | (2,279,937,113) | |
| Net cash flows from operating activities | 69,967,135 | 298,794,227 | |
| Cash flows from investing activities | |||
| Cash received from disposal of investments | 66,460,000 | 383,647,647 | |
| Cash received from returns on investments | 1,761,030,730 | 1,188,744,289 | |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 2,420,190 | 3,081,801 | |
| Sub-total of cash inflows | 1,829,910,920 | 1,575,473,737 | |
| Cash paid to acquire fixed assets, intangible assets and other long-term assets | (20,279,906) | (31,307,163) | |
| Cash paid to acquire investments | (2,654,476,711) | (2,184,276,740) | |
| Net cash paid to acquire subsidiaries | (49,680,900) | - | |
| Sub-total of cash outflows | (2,724,437,517) | (2,215,583,903) | |
| Net cash flows used in investing activities | (894,526,597) | (640,110,166) | |
| Cash flows from financing activities | |||
| Cash received from borrowings | 7,098,860,667 | 4,500,000,000 | |
| Cash received from issuance of debentures | 1,499,471,698 | - | |
| Sub-total of cash inflows | 8,598,332,365 | 4,500,000,000 | |
| Cash repayments of borrowings | (6,840,306,500) | (3,800,000,000) | |
| Cash payments for distribution of dividends, profits or interest expenses | (819,130,127) | (518,785,791) | |
| Cash paid relating to other financing activities | (794,907) | (971,697) | |
| Sub-total of cash outflows | (7,660,231,534) | (4,319,757,488) | |
| Net cash flows from financing activities | 938,100,831 | 180,242,512 | |
| Effect of foreign exchange rate changes on cash and cash equivalents | (27) | 253 | |
| Net increase/(decrease) in cash and cash equivalents | 113,541,342 | (161,073,174) | |
| Add: Cash and cash equivalents at the beginning of the year | 224,504,289 | 385,577,463 | |
| Cash and cash equivalents at the end of the year | 338,045,631 | 224,504,289 | |
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 |
CONSOLIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| Note | Attributable to equity owners of the Company | |||||||||||||
| Share capital | Capital surplus | Other comprehensive income | Surplus reserve | Undistributed profits | Minority interests | Total owners' equity | ||||||||
| Balance at 1 January 2020 | 5,250,283,986 | 5,096,918,174 | 1,676,143,044 | 8,245,767,593 | 5,909,128,280 | 8,011,444,289 | 34,189,685,366 | |||||||
| Movements for the year ended 31 December 2020 | ||||||||||||||
| Total comprehensive income | ||||||||||||||
| Net profit | - | - | - | - | 1,746,280,132 | 888,981,375 | 2,635,261,507 | |||||||
| Other comprehensive income | 4(38) | - | - | 270,162,551 | - | - | - | 270,162,551 | ||||||
| Total comprehensive income for the year | - | - | 270,162,551 | - | 1,746,280,132 | 888,981,375 | 2,905,424,058 | |||||||
| Capital contribution and withdrawal by owners | ||||||||||||||
| Others | - | - | - | - | - | 20,805,569 | 20,805,569 | |||||||
| Profit distribution | ||||||||||||||
| Appropriation to surplus reserve | 4(39) | - | - | - | 269,593,045 | (269,593,045) | - | - | ||||||
| Distribution to shareholders | 4(40)(a) | - | - | - | - | (630,034,078) | (547,811,816) | (1,177,845,894) | ||||||
| Share of interests in associates in proportion to the shareholding | 4(37) | - | (194,654,260) | - | - | - | - | (194,654,260) | ||||||
| Balance at 31 December 2020 | 5,250,283,986 | 4,902,263,914 | 1,946,305,595 | 8,515,360,638 | 6,755,781,289 | 8,373,419,417 | 35,743,414,839 | |||||||
CONSOLIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITY (CONT’D)
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| Note | Attributable to equity owners of the Company | |||||||||||||
| Share capital | Capital surplus | Other comprehensive income | Surplus reserve | Undistributed profits | Minority interests | Total owners' equity | ||||||||
| Balance at 1 January 2019 | 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 | |||||||
| Movements for the year ended 31 December 2019 | ||||||||||||||
| Total comprehensive income | ||||||||||||||
| Net profit | - | - | - | - | 1,146,767,033 | 660,407,857 | 1,807,174,890 | |||||||
| Other comprehensive income | 4(38) | - | - | 1,126,132,911 | - | - | - | 1,126,132,911 | ||||||
| Total comprehensive income for the year | - | - | 1,126,132,911 | - | 1,146,767,033 | 660,407,857 | 2,933,307,801 | |||||||
| Capital contribution and withdrawal by owners | ||||||||||||||
| Others | - | - | - | - | - | 476,340,000 | 476,340,000 | |||||||
| Profit distribution | ||||||||||||||
| Appropriation to surplus reserve | 4(39) | - | - | - | 411,612,450 | (411,612,450) | - | - | ||||||
| Distribution to shareholders | 4(40)(a) | - | - | - | - | (315,017,039) | (415,937,941) | (730,954,980) | ||||||
| Share of interests in associates in proportion to the shareholding | 4(37) | - | (5,813,698) | - | - | (1,015,404) | - | (6,829,102) | ||||||
| Transactions with minority shareholders | 4(37) | - | (115,014) | - | - | - | 115,014 | - | ||||||
| Balance at 31 December 2019 | 5,250,283,986 | 5,096,918,174 | 1,676,143,044 | 8,245,767,593 | 5,909,128,280 | 8,011,444,289 | 34,189,685,366 | |||||||
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 |
COMPANY STATEMENT OF CHANGES IN OWNERS’ EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| Note | Share capital | Capital surplus | Other comprehensive income | Surplus reserve | Undistributed profits | Total owners' equity | ||||||
| Balance at 1 January 2020 | 5,250,283,986 | 5,599,980,903 | 1,676,143,044 | 8,245,767,593 | 4,514,862,488 | 25,287,038,014 | ||||||
| Movements for the year ended 31 December 2020 | ||||||||||||
| Total comprehensive income | ||||||||||||
| Net profit | - | - | - | - | 1,109,012,846 | 1,109,012,846 | ||||||
| Other comprehensive income | 4(38) | - | - | 270,162,551 | - | - | 270,162,551 | |||||
| Total comprehensive income for the year | - | - | 270,162,551 | - | 1,109,012,846 | 1,379,175,397 | ||||||
| Profit distribution | ||||||||||||
| Appropriation to surplus reserve | 4(39) | - | - | - | 269,593,045 | (269,593,045) | - | |||||
| Distribution to shareholders | 4(40)(a) | - | - | - | - | (630,034,078) | (630,034,078) | |||||
| Share of interests in associates in proportion to the shareholding | 4(37) | - | (194,654,260) | - | - | - | (194,654,260) | |||||
| Balance at 31 December 2020 | 5,250,283,986 | 5,405,326,643 | 1,946,305,595 | 8,515,360,638 | 4,724,248,211 | 25,841,525,073 |
COMPANY STATEMENT OF CHANGES IN OWNERS’ EQUITY (CONT'D)
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| Note | Share capital | Capital surplus | Other comprehensive income | Surplus reserve | Undistributed profits | Total owners' equity | ||||||
| Balance at 1 January 2019 | 5,250,283,986 | 5,605,794,601 | 550,010,133 | 7,834,155,143 | 4,472,241,538 | 23,712,485,401 | ||||||
| Movements for the year ended 31 December 2019 | ||||||||||||
| Total comprehensive income | ||||||||||||
| Net profit | - | - | - | - | 770,265,843 | 770,265,843 | ||||||
| Other comprehensive income | 4(38) | - | - | 1,126,132,911 | - | - | 1,126,132,911 | |||||
| Total comprehensive income for the year | - | - | 1,126,132,911 | - | 770,265,843 | 1,896,398,754 | ||||||
| Profit distribution | ||||||||||||
| Appropriation to surplus reserve | 4(39) | - | - | - | 411,612,450 | (411,612,450) | - | |||||
| Distribution to shareholders | 4(40)(a) | - | - | - | - | (315,017,039) | (315,017,039) | |||||
| Share of interests in associates in proportion to the shareholding | 4(37) | - | (5,813,698) | - | - | (1,015,404) | (6,829,102) | |||||
| Balance at 31 December 2019 | 5,250,283,986 | 5,599,980,903 | 1,676,143,044 | 8,245,767,593 | 4,514,862,488 | 25,287,038,014 |
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 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 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 the Company’s registered office and head office is F33~F36 South Tower Building of Yudean Square on 2nd Tianhe East Road, Guangzhou, Guangdong Province, the People’s Republic of China (“the PRC”). The Company’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 the People’s Government of Guangdong Province. | |
| The Company’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 2020, 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, Yunnan Province, Hunan Province and Guangxi Zhuang Autonomous Region of the PRC. For the information of the Company’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 8 April 2021. | |
| 2 | Summary of significant accounting policies and accounting estimates |
| The Group determines specific accounting policies and accounting estimates based on the characteristics of production and operation, which are mainly reflected in the measurement of expected credit losses (“ECLs”) of receivables and contract assets (Note 2(9)), costing of inventory (Note 2(10)), fixed asset depreciation and intangible asset amortisation (Notes 2(13), 2(16)), impairment of long-term assets (Note 2(18)), timing of revenue recognition (Note 2(22)), deferred tax assets and deferred tax liabilities (Note 2(24)), etc. Details of the Group’s critical judgements, critical accounting estimates and key assumptions used in determining significant accounting policies are set forth in Note 2(27). | |
| (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 “CASs”) 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. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 2 | Summary of significant accounting policies and accounting estimates (Cont’d) |
| (1) | Basis of preparation (Cont’d) |
| As at 31 December 2020, the Group’s net current liabilities amounted to RMB 11,825 million, capital commitments contracted for by the Group amounted to RMB 15,286 million, and capital commitments amounted to RMB 392 million, among which the capital expenditure due within one year amounted to RMB 7,882 million. Therefore, the Group is to some extent exposed to liquidity risk. The reason for net current liabilities is that a portion of the Group’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 2020, 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 |
| (b) The Group maintains good relations of long-term cooperation with financial institutions (including the Company’s associate Guangdong Energy Group Finance Co., Ltd. (“Energy Group Finance Company”)) in order to obtain sufficient financing credit lines. As at 31 December 2020, the Group’s available credit line approved by financial institutions and government departments amounted to approximately RMB 49,673 million, with RMB 20,092 million from Energy Group Finance Company, RMB 20,881 million from other commercial banks and financial institutions, RMB 4,000 million from issuance of perpetual bonds approved by the National Development and Reform Commission, RMB 3,900 million from issuance of corporate bonds approved by the China Securities Regulatory Commission, and RMB 800 million of quota of medium-term notes financing obtained after the registration in the Interbank Market in China. Among the Group’s available credit line from financial institutions, approximately RMB 14,318 million is due before 31 December 2021. Management has communicated with the financial institutions and hence expected the credit line due before 31 December 2021 to renew the term for another 12 months. | |
| (2) | Statement of compliance with the Accounting Standard for Business Enterprises |
| The financial statements of the Group and the Company for the year ended 31 December 2020 are in compliance with the Accounting Standards for Business Enterprises, and truly and completely present the consolidated and company’s financial position of the Group and the Company as at 31 December 2020 and their financial performance, cash flows and other information for the year then ended. | |
| (3) | Accounting year |
| The Company’s accounting year starts on 1 January and ends on 31 December. | |
| (4) | Recording currency |
| The recording currency is Renminbi (RMB). |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 2 | Summary of significant accounting policies and accounting estimates (Cont’d) |
| (5) | Business combinations |
| (a) | Business combinations involving enterprises under common control |
| The consideration paid and net assets obtained by the Group in a business combination are measured at the carrying amount. If the acquiree is acquired from a third party by the ultimate controlling party in a prior year, the consideration paid and net assets obtained by the Group are measured based on the carrying amounts of the acquiree’s assets and liabilities (including the goodwill arising from the acquisition of the acquiree by the ultimate controlling party) presented in the consolidated financial statements of the ultimate controlling party. 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 combination cost and identifiable net assets obtained by the Group in a business combination are measured at fair value at the acquisition date. Where the cost of combination exceeds the acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the difference is recognised as goodwill; where the cost of combination is lower than the acquirer’s interest in the fair value of the acquiree’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. |
| (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 on which 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 profits 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. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 2 | Summary of significant accounting policies and accounting estimates (Cont’d) |
| (6) | Preparation of consolidated financial statements (Cont'd) |
| All significant intra-group balances, transactions and unrealised profits are eliminated in the consolidated financial statements. The portion of subsidiaries’ shareholders' equity and the portion of subsidiaries’ 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 profits and total comprehensive income respectively. Where the loss for the current period attributable to the minority shareholders of the subsidiaries exceeds the share of the minority interests in the opening balance of equity, the excess is deducted against minority interests. 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 minority interest income 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 minority interest income in accordance with the allocation proportion of the parent in the selling 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. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 2 | Summary of significant accounting policies and accounting estimates (Cont’d) |
| (9) | Financial instruments |
| A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. A financial asset or a financial liability is recognised when the Group becomes a party to the contractual provisions of the instrument. | |
| (a) | Financial assets |
| (i) | Classification and measurement |
| Based on the business model for financial asset management and the contractual cash flow characteristics of financial assets, the Group classifies the financial assets as: a) financial assets measured at amortised cost; b) financial assets at fair value through other comprehensive income; c) financial assets at fair value through profit or loss. | |
| The financial assets are measured at fair value at initial recognition. Related transaction costs that are attributable to the acquisition of the financial assets are included in the initially recognised amounts, except for the financial assets at fair value through profit or loss, the related transaction costs of which are recognised directly in profit or loss for the current period. Accounts receivable arising from sales of products or rendering of services (excluding or without regard to significant financing components) are initially recognised at the consideration that is entitled to be charged by the Group as expected. | |
| Debt instruments | |
| The debt instruments held by the Group refer to the instruments that meet the definition of financial liabilities from the perspective of the issuer, and are measured in the following ways: | |
| Measured at amortised cost: | |
| The Group’s business model for financial asset management aims to receive contractual cash flows. The contractual cash flow characteristics of such financial assets are consistent with basic loan arrangement, which means the cash flow generated at certain date is only the payment for the principal and the corresponding interest based on unpaid principal. The interest income of such financial assets is recognised using the effective interest method. Such financial assets are mainly including cash at bank and on hand, accounts receivable, other receivables, long-term receivables, etc. Long-term receivables that are due within one year (inclusive) as from the balance sheet date are included in the current portion of non-current assets. | |
| Equity instruments | |
| Investments in equity instruments, over which the Group has no control, joint control or significant influence, are measured at fair value through profit or loss under financial assets held for trading. In addition, a portion of certain investments in equity instruments not held for trading are designated as financial assets at fair value through other comprehensive income under other investments in equity instruments. The relevant dividend income of such financial assets is recognised in profit or loss for the current period. | |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 2 | Summary of significant accounting policies and accounting estimates (Cont’d) |
| (9) | Financial instruments (Cont'd) |
| (a) | Financial assets (Cont’d) |
| (ii) | Impairment |
| The Group recognises the loss provision based on ECLs for financial assets and contract assets measured at amortised cost. | |
| Giving consideration to reasonable and supportable information on past events, current conditions and forecasts of future economic conditions, as well as the default risk weight, the Group recognises the ECL as the probability-weighted amount of the present value of the difference between the cash flows receivable from the contract and the cash flows expected to collect. | |
| As at each balance sheet date, the ECL of financial instruments at different stages is measured respectively. 12-month ECL provision is recognised for financial instruments in Stage 1 that have not had a significant increase in credit risk since initial recognition; lifetime ECL provision is recognised for financial instruments in Stage 2 that have had a significant increase in credit risk yet without credit impairment since initial recognition; and lifetime ECL provision is recognised for financial instruments in Stage 3 that have had credit impairment since initial recognition. | |
| For the financial instruments with lower credit risk on the balance sheet date, the Group assumes there is no significant increase in credit risk since initial recognition and recognises the 12-month ECL provision. | |
| For the financial instruments in Stage 1, Stage 2 and with lower credit risk, the Group calculates the interest income by applying the effective interest rate to the gross carrying amount (before deduction of the impairment provision). For the financial instrument in Stage 3, the interest income is calculated by applying the effective interest rate to the amortised cost (after deduction of the impairment provision from the gross carrying amount). | |
| For accounts receivable and contract assets from operating activities such as sales of goods and rendering of service, regardless of whether there is a significant financing component, the Group measures the loss provision using lifetime ECL. | |
| In case the ECL of an individually assessed financial asset cannot be evaluated with reasonable cost, the Group divides the receivables into certain groupings based on credit risk characteristics, and calculates the ECL for the groupings. Basis for determining groupings and provisions is as follows: |
| Accounts receivable grouping 1 | Receivables from sales of electricity | |
| Accounts receivable grouping 2 | Receivables from related parties | |
| Accounts receivable grouping 3 | Other accounts receivable | |
| Contract assets grouping 1 | Receivables from related parties | |
| Contract assets grouping 2 | Other contract assets | |
| Other receivables grouping 1 | Project expenses paid on behalf, reserves receivable and other receivables |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 2 | Summary of significant accounting policies and accounting estimates (Cont’d) |
| (9) | Financial instruments (Cont'd) |
| (a) | Financial assets (Cont’d) |
| (ii) | Impairment (Cont’d) |
| Based on the overdue days and lifetime ECL rate, the Group calculates the ECLs of accounts receivable that are classified into groupings with consideration to historical credit losses experience, the current conditions and forecasts of future economic conditions. Based on the exposure at default and the 12-month/lifetime ECL rate, the Group calculates the ECLs of other receivables and long-term receivables that are classified into groupings with consideration to historical credit losses experience, the current conditions and forecasts of future economic conditions. | |
| The Group recognises the loss provision made or reversed into profit or loss for the current period. | |
| (iii) | Derecognition |
| A financial asset is derecognised when any of the below criteria is met: (1) the contractual rights to receive the cash flows from the financial asset expire; (2) 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 (3) 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. When a financial asset is derecognised, the difference between the carrying amount and the sum of the consideration received and the cumulative changes in fair value that are previously recognised directly in other comprehensive income is recognised in profit or loss for the current period, except for those as investments in other equity instruments, the difference aforementioned is recognised in retained earnings instead. | |
| (b) | Financial liabilities |
| Financial liabilities are classified as financial liabilities at amortised cost and financial liabilities at fair value through profit or loss at initial recognition. Financial liabilities of the Group mainly comprise financial liabilities at amortised cost, including notes payable, accounts payable, other payables, borrowings, debentures payable, etc. Such financial liabilities are initially recognised at fair value, net of transaction costs incurred, and subsequently measured using the effective interest method. Financial liabilities that are due within 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. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 2 | Summary of significant accounting policies and accounting estimates (Cont’d) |
| (9) | Financial instruments (Cont'd) |
| (b) | Financial liabilities (Cont’d) |
| 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) | Inventories |
| (a) | Classification |
| Inventories mainly comprise fuel and spare parts, and are measured at the lower of cost and net realisable value. | |
| (b) | Valuation 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 sale and related taxes. | |
| (d) | The Group adopts the perpetual inventory system. |
| (e) | Amortisation methods of low-value consumables |
| Low-value consumables are amortised in full amount. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 2 | Summary of significant accounting policies and accounting estimates (Cont’d) |
| (11) | Long-term equity investments |
| Long-term equity investments comprise the Company’s long-term equity investments in its subsidiaries, and the Group’s long-term equity investments in its joint ventures and associates. | |
| A subsidiary is an investee 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 the Company’s financial statements using the cost method, and are adjusted to the equity method when preparing the consolidated financial statements, and investments in joint ventures and associates are accounted for using the equity method. | |
| (a) | Determination of investment cost |
| For long-term equity investments acquired through a business combination involving enterprises under common control, the investment cost shall be the absorbing party’s share of the carrying amount of owners’ equity of the party being absorbed in the consolidated financial statements of the ultimate controlling party at the combination date; for long-term equity investments acquired through a business combination involving enterprises not under common control, the investment cost shall be the combination cost. For long-term equity investments acquired not through a business combination: for long-term equity investments acquired by payment in cash, the initial investment cost shall be the purchase price actually paid; for long-term equity investments acquired by issuing equity securities, the initial investment cost shall be the fair value of the equity securities issued. |
| (b) | Subsequent measurement and recognition of profit or loss |
| Long-term equity investments accounted for using the cost method are measured at the initial investment cost. Cash dividends or profit distribution declared by an investee is recognised as investment income in profit or loss for the current period. | |
| For long-term equity investments accounted for using the equity method, where the initial investment cost exceeds the Group’s share of the fair value of the investee’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 the Group’s share of the fair value of the investee’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 the Group’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. The Group’s share of the changes in investee’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 the Group’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 the Group’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. |
| 2 | Summary of significant accounting policies and accounting estimates (Cont’d) |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
(11)
| (11) | Long-term equity investments (Cont’d) | |||
| (c) | Basis for determining existence of control, jointly control or significant influence over investees | |||
| Control is the power over investees that can bring variable returns through involvement in related activities of investees and the ability to influence the returns by using such power over investees. | ||||
| Joint control is the 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(18)). | ||||
| (12) | 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 net residual values that are expressed as a percentage of cost and the annual depreciation (amortisation) rates of investment properties are as follows: | ||||
| Estimated useful lives | Estimated net residual values | Annual depreciation (amortisation) rates | ||
| Buildings | 20 to 40 years | 0% to 5% | 2.38% to 4.75% | |
| 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. | ||||
| The investment property’s estimated useful life, net residual value and depreciation (amortisation) method applied 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. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 2 | Summary of significant accounting policies and accounting estimates (Cont’d) |
| (13) | 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 into 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 net 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 net residual values expressed as a percentage of cost and the annual depreciation rates of fixed assets are as follows: | ||||
| Estimated useful lives | Estimated net residual values | Annual depreciation rates | ||
| Buildings | 10 to 50 years | 5% | 1.90% to 9.50% | |
| Power generation equipment | 5 to 25 years | 0% to 5% | 3.80% to 20.00% | |
| Motor vehicles | 5 to 15 years | 0% to 5% | 6.33% to 20.00% | |
| Other equipment | 5 to 25 years | 0% to 5% | 3.80% to 20.00% | |
| 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(18)). | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 2 | Summary of significant accounting policies and accounting estimates (Cont’d) |
| (13) | 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(25)(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. | |
| (14) | 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 construction in progress 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(18)). | |
| (15) | 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. | |
| For special borrowings for the acquisition and construction of qualifying assets, the capitalised amount of the special borrowings 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 investment. | |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 2 | Summary of significant accounting policies and accounting estimates (Cont’d) |
| (15) | Borrowing costs (Cont’d) |
| 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. | |
| (16) | Intangible assets |
| Intangible assets include land use rights, sea use rights and software, and are measured at cost. The intangible assets contributed by the state-owned shareholders upon the reorganisation of the Group into a corporation are recognised based on the evaluated 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 use period of 50 years. |
| (b) | Other intangible assets |
| Fixed assets other than land use rights and sea use rights are amortised on a straight-line-basis over the expected useful lives of 2 to 25 years. | |
| (c) | 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. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 2 | Summary of significant accounting policies and accounting estimates (Cont’d) |
| (16) | Intangible assets (Cont’d) |
| (d) | Research and development |
| The expenditure on an internal research and development project is classified into expenditure on the research phase and expenditure on the development phase based on its nature and whether there is material uncertainty that the research and development activities can form an intangible asset at the end of the project. | |
| Expenditure on the research phase is recognised in profit or loss in the period in which it is incurred. Expenditure on the development phase is capitalised only if all of the following conditions are satisfied: | |
| ? management intends to complete the intangible asset, and use or sell it; ? it can be demonstrated how the intangible asset will generate economic benefits: products with the application of intangible assets or the intangible assets themselves can prove to have market value, intangible assets for internal use application can prove to be of usefulness; ? there are adequate technical, financial and other resources to complete the development and the ability to use or sell the intangible asset; ? it is technically feasible to complete the intangible asset so that it will be available for use or sale; and ? the expenditure attributable to the intangible asset during its development phase can be reliably measured. | |
| Other development expenditures that do not meet the conditions above are recognised in profit or loss in the period in which they are incurred. Development costs previously recognised as expenses are not recognised as an asset in a subsequent period. Capitalised expenditure on the development phase is presented as development costs in the balance sheet and transferred to intangible assets at the date that the asset is ready for its intended use. | |
| (e) | Impairment of intangible assets |
| The carrying amount of intangible assets is reduced to the recoverable amount when the recoverable amount is below the carrying amount (Note 2(18)). | |
| (17) | 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 years. 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. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 2 | Summary of significant accounting policies and accounting estimates (Cont’d) |
| (18) | 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 asset impairment loss are recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’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 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 amount 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. |
| (19) | 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 |
| 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. 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; non-planned expenses provided to retired employees fall under defined benefit plans. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 2 | Summary of significant accounting policies and accounting estimates (Cont’d) |
| (19) | Employee benefits (Cont'd) |
| (b) | Post-employment benefits (Cont'd) |
| Basic pensions | |
| The Group’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 local labour and social security authorities are obliged to pay the basic pensions to them. | |
| Supplementary pensions | |
| The Group 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. | |
| Defined benefit plan | |
| For defined benefit plan, the Group used the projected unit credit method and includes the obligation of the defined benefit plan 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 period. The cost of employee benefits arising from defined benefit plans are classified into the following parts: | |
| — service cost (including current service cost as well as gains and losses on curtailments and settlements); — net interest expenses on net liabilities of the defined benefit plan (including interest expenses for obligations of the defined benefit plan); and — Changes arising from remeasurement on net liabilities of defined benefit plans | |
| Service cost and net interest expenses on net liabilities of defined benefit plans are included in profit or loss for the current period. Changes arising from remeasurement on net liabilities of defined benefit plans (including actuarial gains or losses) are included in other comprehensive income. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 2 | Summary of significant accounting policies and accounting estimates (Cont’d) |
| (19) | Employee benefits (Cont'd) |
| (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 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. |
| (20) | Dividend distribution |
| Cash dividends are recognised as liabilities in the period in which the dividends are approved by the shareholders’ meeting. |
| (21) | Provisions |
| Provisions for product warranties, onerous contracts, 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 Group recognises the loss provision of financial guarantee contracts which provision is based on ECL. | |
| The provisions expected to be settled within one year since the balance sheet date are classified as current liabilities. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 2 | Summary of significant accounting policies and accounting estimates (Cont’d) |
| (22) | Revenue recognition |
| The Group recognises revenue at the amount of the consideration which the Group is expected to receive when the customer obtains control over relevant goods or services. | |
| (a) | Revenue from sales of electricity and heat energy |
| Revenue is recognised when electricity and heat energy are supplied to grid companies or customers, and grid companies or customers obtain control over electricity. | |
| (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, the recipient resource utilisation confirms receipt and they obtain control over the by-products. |
| (c) | Provision of electric power transaction service |
| For the electric power transaction 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. | |
| (d) | Rendering of services |
| The Group provides maintenance services to external parties. The related revenue is recognised based on the stage of completion within a certain period, which is determined based on proportion of costs incurred to date to the estimated total costs. On the balance sheet date, the Group re-estimates the stage of completion to reflect the actual status of contract performance. | |
| When the Group recognises revenue based on the stage of completion, the amount with unconditional collection right obtained by the Group is recognised as accounts receivable, and the rest is recognised as contract assets. Meanwhile, loss provision for accounts receivable and contract assets are recognised on the basis of ECLs (Note 2(9)). If the contract price received or receivable exceeds the amount for the completed service, the excess portion will be recognised as contract liabilities. Contract assets and contract liabilities under the same contract are presented on a net basis. | |
| Contract costs include contract performance costs and contract acquisition costs. The costs incurred by the Group for the rendering of maintenance services are recognised as contract performance costs and are carried forward to the cost of main operations based on the stage of completion when associated revenue is recognised. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 2 | Summary of significant accounting policies and accounting estimates (Cont’d) |
| (23) | Government grants |
| Government grants refer to the monetary or non-monetary assets obtained by the Group from the government, including tax return, financial subsidy, 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 reasonable and systemic basis over the useful lives of the assets. |
| Government grants related to daily operation 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. For other government grants related to income that compensate the future costs, expenses or losses are recorded as deferred income and deducted against related costs in reporting the related costs, expenses or losses; government grants related to income that compensate the incurred costs, expenses or losses are deducted against related costs. The Group applies the presentation method consistently to the similar government grants in the financial statements. |
| 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. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 2 | Summary of significant accounting policies and accounting estimates (Cont’d) |
| (24) | 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. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 2 | Summary of significant accounting policies and accounting estimates (Cont’d) |
| (25) | 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. | |
| For the rental waivers as a result of COVID-19 and for the period ended 30 June 2021 only, the Group applies the practical expedient and records the waivers in profit or loss in the waiving period. | |
| (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. | |
| (26) | 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 the Group’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. If two or more operating segments have similar economic characteristics and satisfy certain conditions, they are aggregated into one single operating segment. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 2 | Summary of significant accounting policies and accounting estimates (Cont’d) |
| (27) | 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. | |
| (a) | Critical judgements in applying the accounting policies |
| (i) | Classification of financial assets |
| Significant judgements made by the Group in the classification of financial assets include business model and analysis on contractual cash flow characteristics. | |
| The Group determines the business model for financial asset management on the grouping basis, and factors to be considered include the methods for evaluating financial asset performance and reporting the financial asset performance to key management personnel, the risks affecting financial asset performance and corresponding management methods, the ways in which related business management personnel are remunerated, etc. | |
| The major judgement in determining whether the contractual cash flow characteristics of the financial assets is in consistency of the borrowing arrangement includes: whether there is a change in the amount of principal or the timing of the duration when repayment in advance and etc. occurs; whether the mere considerations of interest are time value of the money, credit risk, other basic risks of debt and consideration for cost and profit. For example, whether the amount of prepayment only reflects the principal outstanding and the interest based on the principal outstanding, as well as the reasonable compensation due to the early termination of the contract. | |
| (ii) | Determination of significant increase in credit risk |
| The main criteria for the Group to determine if there is a significant increase in credit risk are that one or more of the following indicators change significantly: the debtor's business environment, internal and external credit rating, significant changes in the actual or expected business results, and significant decreases in the value of the collateral or the guarantor's credit rating. | |
| Judgement of the Group on the occurred credit impairment is mainly based on whether it meets one or more of the following conditions: the debtor is suffering significant financial difficulties, engaged in other debt restructuring, or probably bankrupt, etc. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 2 | Summary of significant accounting policies and accounting estimates (Cont’d) |
| (27) | Critical accounting estimates and judgements (Cont’d) |
| (a) | Critical judgements in applying the accounting policies (Cont’d) |
| (iii) | Point of revenue recognition |
| With regard to sales of electricity to grid companies, the Group supplies electricity to grid companies in accordance with the contract. Then grid companies have the right to sell electricity and set price at its sole discretion, and take the risks of any price fluctuation and damages or losses of the products. The Group believes that the grid companies obtain control over electric power upon receiving the electric. Therefore, revenue is recognised accordingly. |
| (b) | Critical accounting estimates and key assumptions |
| 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: | |
| (i) | Accounting estimates on impairment of long-term assets |
| As described in Note 2(18), 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 the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and the present value of the future cash flows expected to be derived from the asset. These calculations require use of accounting estimates (Note 4(20)). | |
| When assessing whether the above assets are impaired, management mainly evaluates and analyses: (i) whether events affecting asset impairment occurred; (ii) whether the present value of expected cash flows arising from the continuing use or disposal of the asset is lower than its carrying amount; and (iii) whether the significant assumptions used in the calculation of the present value of the estimated cash flows are appropriate. | |
| Relevant assumptions adopted by the Group to determine impairment, e.g. changes in assumptions on discount rate, growth rate and gross margins 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. | |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 2 | Summary of significant accounting policies and accounting estimates (Cont’d) |
| (27) | Critical accounting estimates and judgements (Cont’d) |
| (b) | Critical accounting estimates and key assumptions (Cont’d) |
| (ii) | Measurement of ECLs |
| The Group calculates ECLs through default risk exposure and ECL rate, and determines the ECL rate based on default probability and default loss rate. In determining the ECL rate, the Group uses data such as internal historical credit loss experience, etc., and adjusts historical data based on current conditions and forward-looking information. When considering forward-looking information, the Group considered different macroeconomic scenarios. Significant macroeconomic assumptions related to the estimation of ECLs include the risk of economic downturn, the external market environment, the technological environment, changes in customer conditions, gross domestic product, consumer price index, etc. The Group regularly monitors and reviews assumptions related to the calculation of ECLs. In 2020, the Group updated values of forward-looking parameters used in ECL model to reflect the impact of COVID-19 on ECLs of financial instrument in a timely manner. | |
| (iii) | Depreciation period and residual values of fixed assets |
| The depreciation period and residual values of fixed assets are determined by management after taking into account their durability and past maintenance records based on the industry practice, and are reviewed at each year-end with appropriate adjustments made accordingly. | |
| Any changes in the depreciation period and residual values of fixed assets may have significant impact on the Group’s net profit. |
| (iv) | Income tax and deferred income tax |
| The Group is subject to enterprise income tax 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. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 2 | Summary of significant accounting policies and accounting estimates (Cont’d) |
| (27) | Critical accounting estimates and judgements (Cont’d) |
| (b) | Critical accounting estimates and key assumptions (Cont’d) |
| (iv) | Income tax and deferred income tax (Cont’d) |
| Deferred tax assets are recognised for the deductible tax losses that can be carried forward to subsequent years to the extent that it is probable that taxable profit will be available in the future against which the deductible tax losses can be utilised. Taxable profit that will be available in the future includes the taxable profit that will be realised through normal operations and the taxable profit that will be increased upon the reversal of taxable temporary differences incurred in prior periods. Judgements and estimates are required to determine the time and amounts of taxable profit in the future. Any difference between the reality and the estimate may result in adjustment to the carrying amount of deferred tax assets. | |
| (28) | Significant changes in accounting policies |
| The Ministry of Finance released the revised CAS 14 - Revenue (2017 revision) (the “new revenue standard”) in 2017, the Interim Provisions on the Accounting Treatment Regarding Carbon Emissions Right Trading in 2019, the Circular on Accounting Regulations of Rental Waivers Against COVID-19 (Cai Kuai [2020] No. 10) in 2020 and the Questions and Answers on the Implementation of CASs (issued on 11 December 2020). The financial statements for the year ended 31 December 2020 are prepared in accordance with the above standard, circular, questions and answers on implementation, and impacts on the Group and the Company’s financial statements are as follows: | |
| (a) | Revenue |
| According to the new revenue standard, the Group and the Company recognised the cumulative effect of initial adoption of the standard as adjustment to the opening balance of retained earnings of 2020 and other related items in the financial statements. The comparatives for 2019 are not restated. |
| The nature and the reasons of the changes in accounting policies | The line items affected | The amounts affected | ||
| 1 January 2020 | ||||
| The Group | The Company | |||
| Due to the implementation of the new revenue standard, the Group and the Company reclassify the accounts receivable which is related to the provision of maintenance service and does not meet the unconditional collection rights to contract assets, and reclassify advances from customers related to the provision of service to contract liabilities. | Contract assets | - | - | |
| Accounts receivable | - | - | ||
| Contract liabilities | - | - | ||
| Advances from customers | - | - | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 2 | Summary of significant accounting policies and accounting estimates (Cont’d) | |||
| (28) | Significant changes in accounting policies (Cont’d) | |||
| (a) | Revenue (Cont’d) | |||
| Compared with the original revenue standards, the impact of the implementation of the new revenue standards on major items in the 2020 financial statements is as follows: | ||||
| The line items affected | The amounts affected | |||
| 31 December 2020 | ||||
| Consolidated | Company | |||
| Contract assets | 3,870,497 | - | ||
| Accounts receivable | (3,870,497) | - | ||
| Contract liabilities | 6,573,912 | 6,343,773 | ||
| Other current liabilities | 623,030 | 380,626 | ||
| Advances from customers | (7,196,942) | (6,724,399) | ||
| (b) | The accounting treatment regarding carbon emissions right trading |
| The Group and the Company have prepared the financial statements for the year ended 31 December 2020 in accordance with the above interim provisions through prospective application from 1 January 2020 (Note 4(54)(a)). | |
| (c) | Accounting treatment of rental waivers against COVID-19 |
| For the rental waivers as a result of COVID-19, agreed with lessees and lessors and for the period ended 30 June 2021 only, the Group and the Company have applied the practical expedient in the above circular for the preparation of the financial statements for the year ended 31 December 2020 (Note 4(41)). | |
| (d) | The adoption of above revised standards has no impact on the equity attributable to equity owners of the Company and minority interests in the Group’s consolidated financial statements. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 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 (“VAT”) (a) | Taxable value-added amount (Tax payable is calculated using the taxable sales amount multiplied by the applicable tax rate less deductible input VAT of the current period) | 5%, 6%, 9% and 13% | ||
| Revenue from hydropower sales | 3% | |||
| City maintenance and construction tax | Amount of VAT paid | 5% to 7% | ||
| Educational surcharge | Amount of VAT paid | 3% | ||
| Local educational surcharge | Amount of VAT paid | 2% | ||
| Enterprise income tax (b) | Taxable income | 20% and 25% | ||
| Real estate tax | Real estate’s rental income or the residual value from original value less the deducting proportion | 12% and 1.2% | ||
| Environmental protection tax (c) | Calculated and paid based on the pollution equivalent values or the discharge of taxable pollutants multiplied by the applicable tax amounts | Calculated and paid based on the applicable tax amounts of different pollutants | ||
| (a) | Pursuant to the Announcement on Relevant Policies for Deepening Value-added Tax Reform ([2019] No. 39) issued by the Ministry of Finance, the State Taxation Administration and the General Administration of Customs and relevant regulations, 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 the Group, are 13% and 9% respectively from 1 April 2019, while the VAT rates were 16% and 10% respectively before then. The Group’s revenue from intercompany entrusted loans and training service is subject to VAT at the rate of 6%. The operating leases of the real estates under simplified taxation method is subject to VAT at a rate of 5%. |
| Pursuant to the Notice on the Policy of Streamlining and Combination of Value-added Tax Levy Rates jointly issued by the Ministry of Finance and the State Taxation Administration, revenue from sales of electricity generated from small hydropower units at the county level or below is subject to VAT at the rate of 3%. Three small hydropower plants of Lincang Yudean Energy Co., Ltd. (“Lincang Energy”), a subsidiary of the Group, are subject to VAT at the rate of 3%. | |
| Pursuant to the Circular on Enterprise Income Tax Policy Concerning Deductions for Equipment and Appliances (Cai Shui [2018] No. 54) issued by the State Taxation Administration, during the period from 1 January 2018 to 31 December 2020, the cost of newly purchased equipment of Guangdong Yudean Power Sales Co., Ltd. (“Power Sales”) with the original cost less than RMB 5 million can be fully deducted against taxable profit in the next month after the asset is put into use, instead of being depreciated annually for tax filing. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 3 | Taxation (Cont’d) |
| (1) | The main categories and rates of taxes applicable to the Group are set out below (Cont’d): |
| (b) | Except for the subsidiaries including Guangdong Yudean Dianbai Wind Power Co., Ltd. (“Dianbai Wind Power”), Guangdong Yudean Qujie Wind Power Co., Ltd. (“Qujie Wind Power”), Guangdong Yudean Leizhou Wind Power Co., Ltd. (“Leizhou Wind Power”), Guangdong Yudean Pingyuan Wind Power Co., Ltd. (“Pingyuan Wind Power”), Guangdong Yudean Zhuhai Offshore Wind Power Co., Ltd. ("Zhuhai Wind Power"), Zhanjiang Yuheng Power Maintenance Installation Co., Ltd. (“Yuheng Electric”), Tongdao Yuexin Wind Power Co., Ltd. (“Tongdao Company”), Guangdong Yudean Zhencheng Comprehensive Energy Co., Ltd. (“Zhencheng Comprehensive”) and Shenzhen Huaguoquan Electric Power Service Co. Ltd. (Huaguoquan Company) (Note 3(2)), the applicable enterprise income tax rate for the Company and its subsidiaries is 25%. |
| (c) | According to the Environmental Protection Tax Law of the People's Republic of China, the Group has applied the environmental protection tax since 1 January 2018. The taxation objects include air pollutants, water pollutants, solid waste and noise. Taxation is based on the amount of pollutants’ emissions. |
| (2) | Tax preference |
| (a) | Pursuant to the approval documents (Cai Shui [2008] No. 46 and Guo Shui Fa [2009] No. 80), Dianbai Wind Power, Leizhou Wind Power, Pingyuan Wind Power and Zhuhai Wind Power are exempted from enterprise income tax in the first three years counting from the year when revenue from production and operations is recorded for the first time, and can enjoy half rate reduction in the following three years. As the local taxation bureau considered that Dianbai Wind Power posted profits for the first time in 2016, Leizhou Wind Power posted profits for the first time in 2017, Pingyuan Wind Power posted profits for the first time in 2020, the applicable enterprise income tax rates for Dianbai Wind Power, Leizhou Wind Power, Pingyuan Wind Power and Zhuhai Wind Power were 12.5%, 12.5%, 0% and 0% in 2020 respectively (2019: 12.5%, 0%, 25% and 25%). |
| Pursuant to the Supplementary Notice on Issues Concerning the Preferential Enterprise Income Tax Policies for Public Infrastructure Projects (Cai Shui [2014] No. 55), enterprises invest and operate public infrastructure projects in compliance with the Catalog of Public Infrastructure Projects Eligible for Preferential Enterprise Income Tax Treatment, those which adopt one-off approval and are subject to construction in batches (such as terminals, berths, airport terminals, runways, sections, generator units, etc.) are subject to income tax calculated in units of each batch and enjoy the tax preferential policy of “three-year exemption and three-year 50% reduction” when the following conditions are satisfied: (i) different batches are space-independent; (ii) each batch has its own function to generate revenue; (iii) they are accounted for in units of each batch and are subject to income tax individually, while the period expenses are allocated rationally. In 2020, the Group’s subsidiary Qujie Wind Power met the above conditions. Therefore, Qujie Youhao wind power project (profits posted for the first time was in 2017), Xuwen Shibanling wind power project (profits posted for the first time was in 2016), Qujie Wailuo offshore wind power project (Phase I) (profits posted for the first time was in 2019), Qujie Wailuo offshore wind power project (Phase II) (it has not yet put into production as at 31 December 2020) and Xinliao offshore wind power project (it has not yet put into production as at 31 December 2020) of Qujie Wind Power are entitled to the tax preferential policy of “three-year exemption and three-year 50% reduction” respectively. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 3 | Taxation (Cont’d) |
| (2) | Tax preference (Cont’d) |
| (a) | (Cont’d) |
| In addition, 50% of VAT levied on the sales of electricity generated by Guangdong Yudean Shibeishan Wind Power Co., Ltd. (“Shibeishan Wind Power”), 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 and Huilai Wind Power Co., Ltd. (“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 2018, Zhanjiang Electric Co., Ltd. (“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 the People’s Republic of China and the circular ([2017] No. 24) issued by the State Taxation Administration, the tax preference 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 2019 was 15%. In 2020, Zhanjiang Electric was subject to enterprise income tax at the tax rate of 25% as the certificate has expired. |
| (c) | In accordance with regulations of the Notice on Implementing the Inclusive Tax Deduction and Exemption Policies for Micro and Small Enterprises (Cai Shui [2019] No. 13), for a small enterprise with low profits, for the part of the annual taxable income not exceeding RMB 1 million, the amount of taxable income is reduced to 25% of income and is subject to the enterprise income at the tax rate of 20%; for the part between RMB 1 million and RMB 3 million, the amount of taxable income is reduced to 50% of income and is subject to the enterprise income at the tax rate of 20%. The above small enterprises with low profits refer to enterprises that are engaged in non-restricted and prohibited industries of the country, which meet three conditions of annual taxable income not exceeding RMB 3 million, the number of employees not exceeding 300, and the amount of total assets not exceeding RMB 50 million. In 2020, Yuheng Electric, Tongdao Company, Zhencheng Comprehensive and Huaguoquan Company met the conditions for small low-profit enterprises, and their amount of taxable income were reduced to 25% of income and were subject to the enterprise income tax at the tax rate of 20%. Therefore, in 2020, the applicable enterprise income tax rate for Yuheng Electric, Tongdao Company, Zhencheng Comprehensive and Huaguoquan Company was 20% (2019: 20%, 25%, 25% and 20% respectively). |
| (d) | Pursuant to Notice on Issues Concerning the Implementation of the Preferential Catalogue of Enterprise Income Tax for Integrated Utilisation of Resources (Cai Shui [2008] No. 47), since 1 January 2008, enterprises use the resources listed in the Preferential Catalogue of Enterprise Income Tax for Integrated Utilisation of Resources (2008 Edition) as the main raw materials to produce products in the above catalogue that meet national or industry related standards, and the income from above products is reduced to 90% of the total income of the enterprises for the year. The Group’s subsidiaries Zhanjiang Electric and Guangdong Huizhou Pinghai Power Plant Co., Ltd. (“Pinghai Power Plant”) use coal ash to produce commercial coal ash, which meets the above-mentioned preferential tax conditions for integrated utilisation of resources. Therefore, in 2020, revenue from sales of coal ash from Zhanjiang Electric and Pinghai Power Plant was reduced to 90% of the total income for the year. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements | |||
| (1) | Cash at bank and on hand | |||
| 31 December 2020 | 31 December 2019 | |||
| Cash on hand | 26,993 | 25,114 | ||
| Cash at bank | 987,906,161 | 611,602,016 | ||
| Deposits with Energy Group Finance Company (b) | 4,775,686,722 | 4,468,014,839 | ||
| Other cash balances (c) | 27,326,241 | 2,000,000 | ||
| 5,790,946,117 | 5,081,641,969 | |||
| (a) | As at 31 December 2020, the Group had no offshore deposit (31 December 2019: Nil). | |||
| (b) | Deposits with Energy Group Finance Company refer to the deposits placed in Energy Group Finance Company (Note 8(6)). Energy Group Finance Company is a financial institution established with the approval of the People’s Bank of China. Both the Company and Energy Group Finance Company are controlled by GEGC. | |||
| (c) | As at 31 December 2020, other cash balances of RMB 27,326,241 (31 December 2019: RMB 2,000,000) mainly represented deposits for ecological protection and for performance guarantees, among which other cash balances placed in Energy Group Finance Company was RMB 592,681 (Note 8(5)(e)(ii)). | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||
| (2) | Accounts receivable | |||
| 31 December 2020 | 31 December 2019 | |||
| Accounts receivable | 4,332,342,360 | 3,197,845,885 | ||
| Less: Provision for bad debts | (193,327) | (155,421) | ||
| 4,332,149,033 | 3,197,690,464 | |||
| (a) | The ageing of accounts receivable was analysed as follows: | |||
| 31 December 2020 | 31 December 2019 | |||
| Within 1 year | 4,207,713,515 | 3,181,230,519 | ||
| 1 to 2 years | 120,135,947 | 16,615,366 | ||
| 2 to 3 years | 4,492,898 | - | ||
| 4,332,342,360 | 3,197,845,885 | |||
| (b) | As at 31 December 2020, the five largest accounts receivable aggregated by debtor were analysed as follows: |
| Balance | Amount of provision for bad debts | % of total balance | |||||
| Total amounts of the five largest accounts receivable | 4,283,112,463 | - | 98.86% | ||||
| (c) | Provision for bad debts | ||||||
| For accounts receivable, the Group recognises the lifetime ECLs provision regardless of whether there exists a significant financing component. From 31 December 2020, the Group’s recognition standards and accrual methods for provision for bad debts of accounts receivable are detailed in Note 2(9). | |||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) |
| (2) | Accounts receivable (Cont’d) |
| (c) | Provision for bad debts (Cont’d) |
| As at 31 December 2020, accounts receivable for which the related provision for bad debts was provided on the grouping basis were analysed as follows: | |
| Grouping 1: | |
| As at 31 December 2020, the amount of receivables from sales of electricity of the Group was RMB 4,289,945,688 (31 December 2019: RMB 3,172,505,993), which was mainly from China Southern Power Grid Co., Ltd. and its subsidiaries (collectively referred to as “China Southern Power Grid”). Taking into consideration its good credit, the Group believes that there is no significant credit risk in the receivables from sales proceeds of electricity, and the possibility of significant losses due to China Southern Power Grid's default is extremely low. The Group's ECL rate for sales proceeds of electricity is 0% (31 December 2019: 0%). | |
| Grouping 2: | |
| As at 31 December 2020, the amount of receivables from related parties of the Group was RMB 23,063,968 (31 December 2019: RMB 9,797,752), and the historical loss rate was extremely low. Therefore, The Group believes that there is no significant credit risk in the receivables from related parties, and the possibility of significant losses due to their default is extremely low. The Group's ECL rate for receivables from related parties is 0% (31 December 2019: 0%). | |
| Grouping 3: |
| 31 December 2020 | 31 December 2019 | ||||||||||
| Book balance | Provision for bad debts | Book balance | Provision for bad debts | ||||||||
| Amount | Lifetime ECL rate | Amount | Amount | Lifetime ECL rate | Amount | ||||||
| Within 1 year | 19,332,704 | 1.00% | (193,327) | 15,542,140 | 1.00% | (155,421) | |||||
| (d) | In 2020, the amount of provision for bad debts of accounts receivable was RMB 193,327 (2019: RMB 155,421), and the amount of reversed provision for bad debts of accounts receivable in the current year was RMB 155,421 (2019: RMB 157,709), with corresponding book balance of RMB 15,542,140 (2019: RMB 13,210,607). There was no provision for bad debts of accounts receivable written off (2019: Nil). |
| (e) | As at 31 December 2020, the right to collect electric charges of several electric subsidiaries, was pledged to banks to obtain long-term borrowings of RMB 4,193,207,913, including RMB 298,558,767 due within one year (31 December 2019: RMB 4,231,292,593, including RMB 240,907,909 due within one year) (Note 4(28)(a)(i) and Note 4(30)(a)). |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||
| (3) | Advances to suppliers | |||
| 31 December 2020 | 31 December 2019 | |||
| Advances to suppliers | 766,986,831 | 605,429,334 | ||
| Less: Provision for bad debts | (115,001) | (115,001) | ||
| 766,871,830 | 605,314,333 | |||
| (a) | The ageing of advances to suppliers is analysed as follows: | |||||||
| 31 December 2020 | 31 December 2019 | |||||||
| Amount | % of total balance | Amount | % of total balance | |||||
| Within 1 year | 763,808,199 | 99.59% | 604,059,281 | 99.77% | ||||
| 1 to 2 years | 2,226,260 | 0.29% | 886,809 | 0.15% | ||||
| 2 to 3 years | 779,606 | 0.10% | 115,026 | 0.02% | ||||
| Over 3 years | 172,766 | 0.02% | 368,218 | 0.06% | ||||
| 766,986,831 | 100.00% | 605,429,334 | 100.00% | |||||
| As at 31 December 2020, advances to suppliers with ageing over one year amounted to RMB 3,178,632 (31 December 2019: RMB 1,370,503), mainly including prepayments for spare parts and materials. | ||||
| (b) | Provision for bad debts accrued in the current year | |||
| 2020 | 2019 | |||
| Opening balance | (115,001) | (305,001) | ||
| Reversal in the current year | - | 190,000 | ||
| Ending balance | (115,001) | (115,001) | ||
| (c) | As at 31 December 2020, the five largest advances to suppliers by debtors were analysed as follows: | |||
| Amount | % of total balance | |||
| Sum of the five largest advances to suppliers | 710,413,203 | 92.62% | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||
| (4) | Other receivables | |||
| 31 December 2020 | 31 December 2019 | |||
| Land withdrawal receivable (Note 4(13)(a)(v)) | 146,885,400 | 46,536,090 | ||
| Supplementary medical insurance fund receivable | 92,191,270 | 68,705,226 | ||
| Receivables from sales of by-products | 91,564,007 | 76,167,059 | ||
| Dividends receivable | 31,500,000 | - | ||
| Interest receivable | 27,301,568 | 20,866,069 | ||
| Land deposits receivable | 23,446,000 | 23,446,000 | ||
| Compensation receivable for electricity charges during the demolition and construction period (Note 4(13)(a)(iv)) | 11,881,442 | - | ||
| Project expenses paid on behalf | 8,561,629 | 8,101,462 | ||
| Reserves receivable | 3,692,394 | 5,004,220 | ||
| Government grants receivable | 712,256 | 447,197 | ||
| Others | 30,723,089 | 35,274,171 | ||
| 468,459,055 | 284,547,494 | |||
| Less: Provision for bad debts | (9,192,501) | (11,745,906) | ||
| 459,266,554 | 272,801,588 | |||
| (a) | The ageing of other receivables is analysed as follows: | |||
| 31 December 2020 | 31 December 2019 | |||
| Within 1 year | 376,100,197 | 191,812,809 | ||
| 1 to 2 years | 16,643,311 | 58,978,320 | ||
| 2 to 3 years | 45,747,354 | 24,490,685 | ||
| Over 3 years | 29,968,193 | 9,265,680 | ||
| 468,459,055 | 284,547,494 | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) |
| (4) | Other receivables (Cont'd) |
| (b) | Provision for losses and changes in book balance statements |
| Stage 1 | Stage 3 | |||||||||||||
| ECLs in the following 12 months (grouping) | ECLs in the following 12 months (individual) | Sub-total | Lifetime ECLs (Credit impaired) | Total | ||||||||||
| Book balance | Provision for bad debts | Book balance | Provision for bad debts | Provision for bad debts | Book balance | Provision for bad debts | Provision for bad debts | |||||||
| 31 December 2019 | 39,948,507 | (3,308,193) | 236,161,274 | - | (3,308,193) | 8,437,713 | (8,437,713) | (11,745,906) | ||||||
| Increase in the current year | 38,710,181 | (1,803,752) | 180,597,861 | - | (1,803,752) | - | - | (1,803,752) | ||||||
| Reversal in the current year | (32,592,838) | 1,594,751 | - | - | 1,594,751 | - | - | 1,594,751 | ||||||
| Written off in the current year | - | - | - | - | - | (2,803,643) | 2,803,643 | 2,803,643 | ||||||
| Transfer to Stage 3 | (41,237) | - | - | - | - | 41,237 | (41,237) | (41,237) | ||||||
| 31 December 2020 | 46,024,613 | (3,517,194) | 416,759,135 | - | (3,517,194) | 5,675,307 | (5,675,307) | (9,192,501) | ||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) |
| (4) | Other receivables (Cont'd) |
| (b) | Provision for losses and changes in book balance statements (Cont’d) |
| As at 31 December 2020 and 31 December 2019, the Group did not have any other receivables at Stage 2. Other receivables at Stage 1 and Stage 3 are analysed as follows: | |
| (i) | As at 31 December 2020, other receivables for which the related provision for bad debts was provided on the individual basis were analysed as follows: |
| Book balance | 12-month ECL rate | Provision for bad debts | Reason | ||||
| Stage 1 | |||||||
| Land withdrawal receivable | 146,885,400 | 0.00% | - | The counterparty is a government unit and the risk of ECLs is extremely low. | |||
| Receivables from related parties | 110,142,767 | 0.00% | - | The counterparty is a related party, with a historical loss rate of 0%, and the risk of ECLs is extremely low. | |||
| Supplementary medical insurance fund receivable | 92,191,270 | 0.00% | - | The counterparty is Taikang Pension Company Limited Guangdong Branch (“Taikang Pension”), which mainly provides custody services for the Group's supplementary medical insurance fund. The historical loss rate is 0%, and the risk of ECLs is extremely low. | |||
| Dividends receivable | 31,500,000 | 0.00% | - | The counterparty has good credit, with a historical loss rate of 0%, and the risk of ECLs is extremely low. | |||
| Land deposits receivable | 23,446,000 | 0.00% | - | The counterparty is a government unit and the risk of ECLs is extremely low. | |||
| Compensation receivable for electricity charges during the demolition and construction period | 11,881,442 | 0.00% | - | The demolition and construction project is initiated by the government-owned industrial park, which pays compensation expenses, and the risk of ECLs is extremely low | |||
| Government grants receivable | 712,256 | 0.00% | - | The counterparty is a government unit and the risk of ECLs is extremely low. | |||
| 416,759,135 | - |
| Book balance | Lifetime ECL rate | Provision for bad debts | Reason | ||||
| Stage 3 | |||||||
| Project expenses paid on behalf | 2,394,279 | 100.00% | (2,394,279) | Unrecoverable by estimation since the counterparty is financially difficult | |||
| Reserves receivable | 34,676 | 100.00% | (34,676) | Unrecoverable by estimation due to resignation of the employee | |||
| Others | 3,246,352 | 100.00% | (3,246,352) | Unrecoverable by estimation since the counterparty is financially difficult | |||
| 5,675,307 | (5,675,307) |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) |
| (4) | Other receivables (Cont'd) |
| (b) | Provision for losses and changes in book balance statements (Cont’d) |
| (i) | As at 31 December 2019, other receivables for which the related provision for bad debts was provided on the individual basis were analysed as follows: |
| Book balance | 12-month ECL rate | Provision for bad debts | Reason | ||||
| Stage 1 | |||||||
| Receivables from related parties | 97,026,761 | 0.00% | - | The counterparty is a related party, with a historical loss rate of 0%, and the risk of ECLs is extremely low. | |||
| Supplementary medical insurance fund receivable | 68,705,226 | 0.00% | - | The counterparty is Taikang Pension, which mainly provides custody services for the Group's supplementary medical insurance fund. The historical loss rate is 0%, and the risk of ECLs is extremely low. | |||
| Land withdrawal receivable | 46,536,090 | 0.00% | - | The counterparty is a government unit and the risk of ECLs is extremely low. | |||
| Land deposits receivable | 23,446,000 | 0.00% | - | The counterparty is a government unit and the risk of ECLs is extremely low. | |||
| Government grants receivable | 447,197 | 0.00% | - | The counterparty is a government unit and the risk of ECLs is extremely low. | |||
| 236,161,274 | - |
| Book balance | Lifetime ECL rate | Provision for bad debts | Reason | ||||
| Stage 3 | |||||||
| Project expenses paid on behalf | 2,356,339 | 100.00% | (2,356,339) | Unrecoverable by estimation since the counterparty is financially difficult | |||
| Reserves receivable | 34,676 | 100.00% | (34,676) | Unrecoverable by estimation due to resignation of the employee | |||
| Others | 6,046,698 | 100.00% | (6,046,698) | Unrecoverable by estimation since the counterparty is financially difficult | |||
| 8,437,713 | (8,437,713) |
| (ii) | As at 31 December 2020 and 31 December 2019, other receivables of which provision for bad debts was calculated on grouping basis were all in Stage 1, which were analysed below: |
| 31 December 2020 | |||||
| Book balance | Loss provision | ||||
| Amount | Amount | Provision ratio | |||
| Grouping 1 | |||||
| Within 1 year | 38,668,944 | (396,393) | 1.03% | ||
| 1 to 2 years | 4,326,485 | (477,719) | 11.04% | ||
| 2 to 3 years | 703,263 | (317,161) | 45.10% | ||
| Over 3 years | 2,325,921 | (2,325,921) | 100.00% | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 46,024,613 | (3,517,194) | 7.64% |
| 31 December 2019 | |||||
| Book balance | Loss provision | ||||
| Amount | Amount | Provision ratio | |||
| Grouping 1 | |||||
| Within 1 year | 32,588,629 | (331,096) | 1.00% | ||
| 1 to 2 years | 4,057,224 | (405,722) | 10.00% | ||
| 2 to 3 years | 1,044,685 | (313,406) | 30.00% | ||
| Over 3 years | 2,257,969 | (2,257,969) | 100.00% | ||
| 39,948,507 | (3,308,193) | 8.28% | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) |
| (4) | Other receivables (Cont'd) |
| (c) | In 2020, the amount of provision for bad debts was RMB 1,803,752 (2019: RMB 3,758,375), and the amount of reversed provision for bad debts in the current year was RMB 1,594,751 (2019: RMB 1,457,324), with corresponding book balance of RMB 32,592,838 (2019: RMB 34,975,056). |
| The balance of other receivables that were written off in the current year was RMB 2,803,643, and the provision for bad debts was RMB 2,803,643, of which significant other receivables were analysed as follows: |
| Nature of other receivables | Amount of written-off | Reasons for written-off | Procedures performed for written-off | Arising from related-party transactions or not | ||
| Guangzhou Huading Building Materials Co., Ltd. | Others | 2,803,643 | The company declared bankruptcy | Written off with approval | No |
| (d) | As at 31 December 2020, the five largest other receivables by debtors were analysed as follows: |
| Nature | Balance | Ageing | % of total other receivables | Provision for bad debts | ||||||
| Meixian Chengjiangzhen People's Government of Meizhou City | Land withdrawal receivable | 146,885,400 | Within 1 year | 31.36% | - | |||||
| Taikang Pension | Supplementary medical insurance fund receivable | 92,191,270 | Within 3 years | 19.68% | - | |||||
| Guangdong Yudean Environmental Protection Co., Ltd. (“Yudean Environmental”) | Receivables from sales of by-products | 76,071,143 | Within 1 year | 16.24% | - | |||||
| Sunshine Insurance Group Corporation (“Sunshine Insurance”) | Dividends receivable | 31,500,000 | Within 1 year | 6.72% | - | |||||
| Maoming Port Bohe New Port Construction Headquarters Office | Land deposits receivable | 23,446,000 | Over 3 years | 5.00% | ||||||
| 370,093,813 | 79.00% | - |
| (e) | As at 31 December 2020, the Group's government grants recognised at amounts receivable were analysed as follows: | ||||
| Government grants | Balance | Ageing | Estimated time, amount and basis of collection | ||
| Xuwen Taxation Bureau | Immediate refund of VAT | 591,208 | Within 1 year | Expected to be fully recovered by June 2021 | |
| Huilai Taxation Bureau | Immediate refund of VAT | 121,048 | Within 1 year | Expected to be fully recovered by June 2021 | |
| 712,256 | |||||
| (5) | Inventories | |||
| (a) | Inventories are summarised by categories as follows: | |||
| 31 December 2020 | 31 December 2019 | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| Book balance | Provision for decline in the value of inventories | Carrying amount | Book balance | Provision for decline in the value of inventories | Carrying amount | |||||||
| Fuel | 873,215,395 | (219,427) | 872,995,968 | 1,090,379,874 | (219,427) | 1,090,160,447 | ||||||
| Spare parts | 726,029,502 | (28,775,273) | 697,254,229 | 718,858,215 | (14,790,029) | 704,068,186 | ||||||
| Others | 19,631,832 | - | 19,631,832 | 22,830,636 | - | 22,830,636 | ||||||
| 1,618,876,729 | (28,994,700) | 1,589,882,029 | 1,832,068,725 | (15,009,456) | 1,817,059,269 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 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: |
| 31 December 2019 | Increase in the current year | 31 December 2020 | ||||
| Spare parts | (14,790,029) | (13,985,244) | (28,775,273) | |||
| Fuel | (219,427) | - | (219,427) | |||
| (15,009,456) | (13,985,244) | (28,994,700) |
| In 2020, Guangdong Electric Power Development Co., Ltd. Shajiao A Power Plant (“Shajiao A Power Plant”) made provision for decline in the value of spare parts of RMB 13,985,244, mainly due to impairment arising from discontinued usage caused by scraping and detaching of the assets after shutdown of 1# Generator Unit, 2# Generator Unit and 3# Generator Unit. | ||||
| (c) | Provision for decline in the value of inventories is as follows: | |||
| Specific basis for determining net realisable value | ||||
| Spare parts and fuel | The carrying amount is higher than the amount of net realisable value of the disposal proceeds less the disposal costs | |||
| (6) | Contract assets | |||
| 31 December 2020 | 31 December 2019 | |||
| Contract assets | 3,883,009 | - | ||
| Less: Provision for impairment of contract assets | (12,512) | - | ||
| 3,870,497 | - | |||
| For contract assets, the Group recognises the lifetime ECL provision regardless of whether there is a significant financing component. | ||||
| Book balance | Lifetime ECL rate | Provision for impairment | |||
| Contract assets of related parties | 2,186,487 | 0.00% | - | ||
| Contract assets of third parties | 1,696,522 | 0.74% | (12,512) | ||
| 3,883,009 | (12,512) |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||
| (7) | Current portion of non-current assets | |||
| 31 December 2020 | 31 December 2019 | |||
| Less: Deposit for finance lease due within one year | 49,785,734 | 28,865,131 | ||
| As at 31 December 2020, non-current assets due within one year represented the present value of the deposit of RMB 50,000,000 paid for sales and leaseback of fixed assets (31 December 2019: RMB 30,000,000). | ||||
| (8) | Other current assets | |||
| 31 December 2020 | 31 December 2019 | |||
| VAT to be deducted | 541,660,352 | 296,729,796 | ||
| Prepayment of income tax | 4,286,044 | 7,893,174 | ||
| Others | 739,240 | 972,597 | ||
| 546,685,636 | 305,595,567 | |||
| (9) | Long-term receivables | |||
| 31 December 2020 | 31 December 2019 | |||
| Deposit for sale-leaseback | 49,785,734 | 94,721,477 | ||
| Less: Deposit for sale-leaseback due within one year (Note 4(7)) | (49,785,734) | (28,865,131) | ||
| - | 65,856,346 | |||
| For the year ended 31 December 2020, the discount rate of long-term receivables is 5.97% (2019: ranging from 5.97% to 6.68%). | ||||
| (10) | Long-term equity investments | |||
| 31 December 2020 | 31 December 2019 | |||
| Joint ventures (a) | 531,313,393 | 615,218,300 | ||
| Associates (b) | 6,252,272,075 | 5,936,894,116 | ||
| 6,783,585,468 | 6,552,112,416 | |||
| Less: Provision for impairment of long-term equity investments | (96,327,854) | (96,327,854) | ||
| 6,687,257,614 | 6,455,784,562 | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) |
| (10) | Long-term equity investments (Cont’d) |
| (a) | Joint ventures |
| Movements for the current year | ||||||||||||||
| 31 December 2019 | Increase in investment (i) | Share of net profit/(loss) under equity method | Other changes in equity (ii) | Cash dividends declared | 31 December 2020 | Provision for impairment at the end of the year | ||||||||
| Guangdong Electric Power Industry Fuel Co., Ltd. (“Industry Fuel”) | 615,218,300 | 100,000,000 | 74,496,406 | (189,310,878) | (69,090,435) | 531,313,393 | - | |||||||
| Equity related information in joint ventures is set forth in Note 6(2). | |
| (i) | Pursuant to the Proposal on Involvement in Capital of Guangdong Power Industry Fuel Co., Ltd. approved by the Board of Directors on 4 December 2020, the Company was permitted to make a capital injection of RMB 100,000,000 to Industry Fuel at its original proportion of shareholding. As at 14 December 2020, the Company has made a capital injection of RMB 100,000,000. |
| (ii) | As at 31 December 2020, Industry Fuel acquired 100% controlling interest of Yudean Environmental at a consolidation of RMB 838,178,800 from its ultimate controlling party GEGC through a business combination involving enterprises under common control. At the combination date, the difference of RMB 378,621,758, between the consideration of RMB 838,178,800 paid for acquisition and the carrying amount of owners' equity of Yudean Environmental presented in the consolidated financial statements of the ultimate parent company, GEGC, was written off against the capital surplus, surplus reserve and undistributed profits of Industry Fuel. The Company recognised a decrease of RMB 189,310,878 in capital surplus accordingly on the basis of shareholding proportion. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||||||||||||||
| (10) | Long-term equity investments (Cont’d) | |||||||||||||||
| (b) | Associates | |||||||||||||||
| Movements for the current year | ||||||||||||||||
| 31 December 2019 | Increase in investment | Share of net profit/(loss) under equity method | Adjustment to other comprehensive income (Note 4(38)) | Other changes in equity (iv) | Cash dividends or profits declared | 31 December 2020 | Provision for impairment at the end of the year | |||||||||
| Guangdong Guohua Yudean Taishan Electric Co., Ltd. (“Taishan Electric”) | 2,085,355,939 | - | 79,605,330 | (54,368) | - | (275,880,313) | 1,889,026,588 | - | ||||||||
| Shanxi Yudean Energy Co., Ltd. (“Shanxi Yudean Energy”) | 1,644,203,546 | - | 194,928,850 | - | - | (20,000,000) | 1,819,132,396 | - | ||||||||
| Energy Group Finance Company | 991,882,399 | - | 89,907,325 | 18,578,841 | - | (73,161,903) | 1,027,206,662 | - | ||||||||
| Guangdong Energy Financial Leasing Co., Ltd. (“Energy Financial Leasing Company”) (ii) | - | 521,507,353 | 976,186 | - | - | - | 522,483,539 | - | ||||||||
| GEG Property & Casualty Captive Insurance Co., Ltd. (“GEG Property Insurance”) | 261,404,011 | - | 8,638,204 | - | - | (1,573,262) | 268,468,953 | - | ||||||||
| Yudean Shipping (i) | 448,869,593 | - | (202,710,755) | (346,984) | (4,073,741) | - | 241,738,113 | - | ||||||||
| Weixin Yuntou (iii) | 196,222,800 | - | (20,630,582) | - | - | - | 175,592,218 | (96,327,854) | ||||||||
| Guangdong Yuedian Stock West Investment Co., Ltd. (“West Investment”) | 142,443,282 | - | 2,845,271 | - | (1,269,641) | - | 144,018,912 | - | ||||||||
| Huaneng Shantou Wind Power Co., Ltd. (“Huaneng Shantou Wind Power”) | 56,743,303 | - | 5,385,280 | - | - | (7,035,681) | 55,092,902 | - | ||||||||
| Yangshan Zhongxinkeng Electric Co., Ltd. (“Yangshan Zhongxinkeng”) | 8,043,666 | - | 948,652 | - | - | (1,399,026) | 7,593,292 | - | ||||||||
| Yangshan Jiangkeng Hydropower Co., Ltd. (“Yangshan Jiangkeng”) | 5,397,723 | - | 997,030 | - | - | (804,107) | 5,590,646 | - | ||||||||
| 5,840,566,262 | 521,507,353 | 160,890,791 | 18,177,489 | (5,343,382) | (379,854,292) | 6,155,944,221 | (96,327,854) | |||||||||
| Equity related information in associates is set forth in Note 6(2). |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) |
| (10) | Long-term equity investments (Cont’d) |
| (b) | Associates (Cont'd) |
| (i) | Since 2019, Yudean Shipping, an associate of the Company, has been affected by the global economic downturn, fierce competition in the shipping industry and COVID-19, resulting in continuous fluctuation in shipping prices. Due to production reduction in petroleum exporting countries, the tense geopolitical relationship and the implementation of the new environmental protection policy, the operating costs are showing a trend of fluctuation and increase. In addition, the frequency and cost of plant repairs in the future will increase as the competent authorities tighten the management of the special inspection for ships over 28 years and the frequency of plant repairs. Thus, there is an indication of impairment of related long-term assets, as Yudean Shipping has delivered a weaker performance than expected due to profit reduction. In 2019, Yudean Shipping recognised a net loss of RMB 1,360,556,144, and the Company recognised a loss of RMB 476,194,650 for investment in Yudean Shipping at the equity method. In 2020, Yudean Shipping continuously monitored the impairment of related long-term assets. As at 31 December 2020, Yudean Shipping carried out the impairment test for long-term assets and made further provision for impairment of fixed assets based on the testing results. In 2020, Yudean Shipping recognised a net loss of RMB 579,173,582, including a loss of RMB 585,756,126 arising from the provision for impairment loss on long-term assets and the Company recognised a loss of RMB 202,710,755 for investment in Yudean Shipping at the equity method. The Company reviewed the testing results and assessed the impairment of the long-term equity investment in Yudean Shipping. As at 31 December 2020, the carrying amount of the Company’s long-term equity investment in Yudean Shipping was RMB 241,738,113. The Company’s long-term equity investment in Yudean Shipping was not exposed to any further impairment risk. |
| (ii) | In 2020, the Company, GEGC and Upper Horn Investment Co., Ltd. entered into the capital increase agreement, which stipulated that the Company would contribute RMB 512,958,282 in cash for the new registered capital of RMB 500,000,000 of Energy Financial Leasing Company and hold 25% of the equity of Energy Financial Leasing Company after the capital increase. In November 2020, the Company completed the capital increase and obtained 25% of the equity of Energy Financial Leasing Company. In accordance with the Articles of Association of Energy Financial Leasing Company, after the capital increase, Energy Financial Leasing Company would establish five seats in the Board of Directors, of which the Company has one director, who can exert significant influence on Energy Financial Leasing Company. Therefore, Energy Financial Leasing Company became an associate of the Company. As at the completion date of the capital increase, the Company recognised the difference between the initial investment cost of RMB 512,958,282 and the share of carrying amount of owner’s equity of Energy Financial Leasing Company presented in the consolidated financial statements of the ultimate controlling party GEGC in non-operating income of RMB 8,549,071 (Note 4(53)) and adjusted the investment cost to RMB 521,507,353. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) |
| (10) | Long-term equity investments (Cont’d) |
| (b) | Associates (Cont'd) |
| (iii) | In 2019, the Company's associate, Weixin Yuntou, was affected by the fierce competition of rich and cheap hydropower in Yunnan Province. Weixin Yuntou only received a small amount of thermal power generation quotas, and there was continuous operating loss after deducting gains on disposal of non-recurring assets in 2019. As at 31 December 2019, the Company conducted an impairment test on the long-term equity investments in Weixin Yuntou. As the carrying amount of the long-term equity investments was lower than their recoverable amount, the provision for impairment of long-term equity investments was RMB 71,317,168. In 2020, Weixin Yuntou experienced continuous operating losses, and the Company recognised a loss of RMB 20,630,582 for investment in Weixin Yuntou at the equity method. As at 31 December 2020, the carrying amount of the Company’s long-term equity investments in Weixin Yuntou was RMB 175,592,218. Based on prudential principal, the Company conducted an impairment test on the long-term equity investments in Weixin Yuntou again. As the carrying amount of the long-term equity investments was higher than their recoverable amount, no further impairment provision was made by the Company in 2020. |
| (iv) | In 2020, other changes in equity from long-term equity investments in associates were changes in capital surplus of RMB 5,343,382 (2019: changes in capital surplus of RMB 5,813,698 and changes in undistributed profits of RMB 1,015,404). |
| (11) | Investments in other equity instruments | ||||||
| 31 December 2020 | 31 December 2019 | Cash dividends in the current year | |||||
| Investments in equity instruments | |||||||
| - Equity of listed companies | 393,587,145 | 408,070,373 | 13,297,095 | ||||
| - Equity of unlisted companies | 3,154,500,870 | 2,734,301,000 | 51,790,444 | ||||
| 3,548,088,015 | 3,142,371,373 | 65,087,539 | |||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||||||||
| (11) | Investments in other equity instruments (Cont’d) | |||||||||
| Including: | ||||||||||
| 31 December 2019 | Movements in the current year | 31 December 2020 | % of shareholding in investee | Cash dividends in the current year | ||||||
| Investments in other equity instruments - cost | ||||||||||
| - Shenzhen Energy Corporation (“Shenzhen Energy”) (a) | 15,890,628 | - | 15,890,628 | 0.32% | 630,000 | |||||
| - Shanghai Shenergy Co., Ltd. (“Shanghai Shenergy”) (b) | 235,837,988 | - | 235,837,988 | 1.92% | 12,217,095 | |||||
| - GMG International Tendering Co., Ltd. (“GMG Tendering”) (c) | 3,600,000 | - | 3,600,000 | 1.29% | 450,000 | |||||
| - Shenzhen Capital Group Co., Ltd. (“SCG”) (d) | 258,297,440 | 69,736,560 | 328,034,000 | 3.67% | 20,290,444 | |||||
| - Sunshine Insurance (e) | 356,000,000 | - | 356,000,000 | 3.38% | 31,500,000 | |||||
| - South Sea Wind Electricity Development Co., Ltd. (“South Sea Wind Electricity”) (f) | 70,000,000 | - | 70,000,000 | 10.00% | - | |||||
| 939,626,056 | 69,736,560 | 1,009,362,616 | 65,087,539 | |||||||
| Investments in other equity instruments - accumulated changes in fair value | ||||||||||
| - Shenzhen Energy (a) | 62,355,372 | 13,834,800 | 76,190,172 | |||||||
| - Shanghai Shenergy (b) | 86,804,385 | (32,764,028) | 54,040,357 | |||||||
| - GMG Tendering (c) | 3,582,000 | 4,446,000 | 8,028,000 | |||||||
| - SCG (d) | 637,702,560 | 82,263,440 | 719,966,000 | |||||||
| - Sunshine Insurance (e) | 1,412,000,000 | 268,000,000 | 1,680,000,000 | |||||||
| - South Sea Wind Electricity (f) | 301,000 | 199,870 | 500,870 | |||||||
| 2,202,745,317 | 335,980,082 | 2,538,725,399 | ||||||||
| Total | 3,142,371,373 | 405,716,642 | 3,548,088,015 | |||||||
| The Group holds the voting rights of the above investees. However, the voting rights held by the Group is only related to the administrative management of those investees, and the Group does not participate in or influence the financial and operating decisions of the above investees in any ways. Therefore, the Group has no significant influence on the above investees, and accordingly they are accounted for as investments in other equity instruments. | ||||||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) |
| (11) | Investments in other equity instruments (Cont’d) |
| (a) | As at 31 December 2020, the Company held 15,120,000 tradable A shares in Shenzhen Energy with fair value of RMB 92,080,800, 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, gains at fair value amounted to RMB 13,834,800 (2019: RMB 12,096,000), and other comprehensive income was adjusted upwards accordingly. |
| (b) | As at 31 December 2020, the Company held 55,532,250 tradable A shares in Shanghai Shenergy with fair value of RMB 289,878,345, 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 32,764,028 (2019: gains of RMB 51,644,993), and other comprehensive income was adjusted downwards accordingly. |
| (c) | As at 31 December 2020, 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 11,628,000, 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, gains at fair value amounted to RMB 4,446,000 (2019: RMB 3,564,000), and other comprehensive income was adjusted upwards accordingly. |
| (d) | 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 SCG at its original proportion of shareholding. A capital injection of RMB 65,135,200 was made in 2018, a capital injection of RMB 78,162,240 was made in 2019 and a capital injection of RMB 69,736,560 was made in 2020. As at 31 December 2020, the fair value of the equity that the Company held in SCG amounted to RMB 1,048,000,000, and the investment cost was RMB 328,034,000. During the year, gains at fair value amounted to RMB 82,263,440 (2019: RMB 18,796,809), and other comprehensive income was adjusted upwards accordingly. |
| (e) | As at 31 December 2020, the fair value of the equity that the Company held in Sunshine Insurance amounted to RMB 2,036,000,000, and the investment cost was RMB 356,000,000. During the year, gains at fair value amounted to RMB 268,000,000 (2019: RMB 1,412,000,000), and other comprehensive income was adjusted upwards accordingly. |
| (f) | As at 31 December 2020, the fair value of the equity that the Company held in South Sea Wind Electricity amounted to RMB 70,500,870, and the investment cost was RMB 70,000,000. During the year, gains at fair value amounted to RMB 199,870 (2019: RMB 301,000), and other comprehensive income was adjusted upwards accordingly. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||
| (12) | Investment properties | |||
| Buildings | ||||
| Cost | ||||
| - Opening balance | 68,575,914 | |||
| - Business combinations involving enterprises not under common control (Note 5(2)) | 189,849 | |||
| - Ending balance | 68,765,763 | |||
| Accumulated depreciation | ||||
| - Opening balance | (16,482,283) | |||
| - Increase in the current year (a) | (2,550,812) | |||
| - Ending balance | (19,033,095) | |||
| Carrying amount | ||||
| - Ending balance | 49,732,668 | |||
| - Opening balance | 52,093,631 | |||
| (a) | In 2020, depreciation charged to investment properties was RMB 2,550,812 (2019: RMB 2,085,161) among which depreciation expenses charged to cost of sales, and general and administrative expenses were RMB 1,915,214 and RMB 635,598 (2019: RMB 1,449,563 and RMB 635,598) respectively. | |||
| (13) | Fixed assets | |||
| 31 December 2020 | 31 December 2019 | |||
| Fixed assets (a) | 47,114,756,688 | 38,530,031,244 | ||
| Disposal of fixed assets (b) | 80,476,391 | 25,687,474 | ||
| 47,195,233,079 | 38,555,718,718 | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) |
| (13) | Fixed assets (Cont’d) |
| (a) | Fixed assets |
| Buildings | Power generation equipment | Motor vehicles | Other equipment | Total | ||||||
| Cost | ||||||||||
| 31 December 2019 | 18,608,504,390 | 58,925,695,568 | 595,487,302 | 1,356,377,715 | 79,486,064,975 | |||||
| Increase in the current year | ||||||||||
| Purchase | 17,136,050 | 22,501,095 | 22,772,199 | 35,320,903 | 97,730,247 | |||||
| Transfers from construction in progress (ii) | 3,983,479,384 | 7,564,119,392 | 585,556,342 | 39,056,567 | 12,172,211,685 | |||||
| Donations received | - | - | - | 168,534 | 168,534 | |||||
| Business combinations involving enterprises not under common control (Note 5(2)) | 57,535,129 | - | 215,292 | 64,462 | 57,814,883 | |||||
| Adjustment to sale-leaseback transactions (iii) | - | 246,842,838 | - | - | 246,842,838 | |||||
| Decrease in the current year | ||||||||||
| Adjustment due to differences in project settlement | - | (26,293,092) | - | - | (26,293,092) | |||||
| Disposal and scrap | (33,553,667) | (1,677,061,649) | (16,801,424) | (46,093,451) | (1,773,510,191) | |||||
| Transfer to construction in progress (iv) | - | (10,754,401) | - | - | (10,754,401) | |||||
| Reclassification to other current assets (v) | (344,844,012) | (819,112,234) | (10,339,832) | (10,365,104) | (1,184,661,182) | |||||
| Losses on inventory shortage | (10,000) | (629,982) | - | - | (639,982) | |||||
| 31 December 2020 | 22,288,247,274 | 64,225,307,535 | 1,176,889,879 | 1,374,529,626 | 89,064,974,314 | |||||
| Accumulated depreciation | ||||||||||
| 31 December 2019 | (6,941,728,181) | (31,757,059,270) | (442,607,496) | (930,761,890) | (40,072,156,837) | |||||
| Increase in the current year | ||||||||||
| Provision (i) | (490,705,833) | (2,739,466,925) | (22,480,399) | (94,897,156) | (3,347,550,313) | |||||
| Adjustment to sale-leaseback transactions (iii) | - | (123,685,636) | - | - | (123,685,636) | |||||
| Decrease in the current year | ||||||||||
| Disposal and scrap | 15,419,294 | 1,414,818,457 | 15,933,154 | 38,450,416 | 1,484,621,321 | |||||
| Transfer to construction in progress (iv) | - | 7,173,019 | - | - | 7,173,019 | |||||
| Reclassification to other current assets (v) | 225,851,503 | 460,997,857 | 6,303,110 | 6,352,424 | 699,504,894 | |||||
| Losses on inventory shortage | 9,500 | 598,483 | - | - | 607,983 | |||||
| 31 December 2020 | (7,191,153,717) | (32,736,624,015) | (442,851,631) | (980,856,206) | (41,351,485,569) | |||||
| Provision for impairment | ||||||||||
| 31 December 2019 | (146,890,986) | (731,325,859) | (1,656,135) | (4,003,914) | (883,876,894) | |||||
| Increase in the current year |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| Provision (vi) | (45,920,611) | (345,566,460) | - | (234,722) | (391,721,793) | |||||
| Decrease in the current year | ||||||||||
| Disposal and scrap | 9,945,883 | 186,471,151 | - | - | 196,417,034 | |||||
| Reclassification to other current assets (v) | 117,106,386 | 358,114,377 | 1,233,217 | 3,995,616 | 480,449,596 | |||||
| 31 December 2020 | (65,759,328) | (532,306,791) | (422,918) | (243,020) | (598,732,057) | |||||
| Carrying amount | ||||||||||
| 31 December 2020 | 15,031,334,229 | 30,956,376,729 | 733,615,330 | 393,430,400 | 47,114,756,688 | |||||
| 31 December 2019 | 11,519,885,223 | 26,437,310,439 | 151,223,671 | 421,611,911 | 38,530,031,244 |
| As at 31 December 2019 and 31 December 2020, no power generation equipment or buildings were pledged as collateral for long-term borrowings. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||
| (13) | Fixed assets (Cont’d) | |||
| (a) | Fixed assets (Cont’d) | |||
| (i) | Depreciation of fixed assets charged into cost of sales, general and administrative expenses, construction in progress, research and development expenses and selling and distribution expenses for 2020 were set out as follows: | |||
| 2020 | 2019 | |||
| Cost of sales | 3,283,110,982 | 3,658,711,930 | ||
| General and administrative expenses | 50,215,937 | 50,165,964 | ||
| Research and development expenses | 6,956,941 | - | ||
| Construction in progress | 6,584,299 | 6,574,021 | ||
| Selling and distribution expenses | 682,154 | 434,425 | ||
| 3,347,550,313 | 3,715,886,340 | |||
| (ii) | The costs of fixed assets transferred from construction in progress in the current year amounted to RMB 12,172,211,685 (2019: RMB 1,190,693,825) (Note 4(14)(a)(i)). | |||
| (iii) | In 2020, Zhanjiang Zhongyue Energy Co., Ltd. (“Zhongyue Energy”) settled in advance the contract for sales and leaseback of fixed assets signed with Bank of Communications Financial Leasing Co., Ltd., and the unrealised sales and leaseback losses arising from the difference between the selling price and the carrying amount of the assets in sales and leaseback transactions amounting to RMB 246,842,838 was included in the cost of fixed assets, and unrecognised losses of RMB 123,685,636 from amortised sales and leaseback was recognised as the accumulated depreciation of power generation equipment of fixed assets. | |||
| (iv) | In 2020, due to an adjustment to land for construction of heavy crude oil processing project of PetroChina Company Limited, Shibeishan Wind Power, a subsidiary of the Group, commenced the demolition and construction of 3 fans and cables in accordance with the Letter from Huilai People’s Government on Request to Initiate the Movement of Fans and Cables at Shibeishan Wind Power Plant, and signed a three-party agreement with Jieyang Da Nanhai Petrochemical Industrial Zone Management Committee (“Petrochemical Management Committee”) and Huilai People’s Government. The agreement specified that Petrochemical Management Committee was responsible for the settlement of demolition and construction expenses at a cost of RMB 15,654,700 not exceeding the project budget, and compensated for the actual loss of power generated during the demolition and construction of Shibeishan Wind Power and the estimated loss of power generation after the demolition and construction. In 2020, Shibeishan Wind Power transferred these 3 fans with a cost of RMB 10,754,401 and accumulated depreciation of RMB 7,173,019 to construction in progress. As at 31 December 2020, Shibeishan Wind Power had received advances from demolition and construction projects amounting to RMB 15,000,000, and RMB 626,874 of demolition and construction expenses was recognised. The compensation for power losses recognised for 2020 was RMB 11,315,659 (exclusive of tax) (inclusive of tax: RMB 11,881,442) was included in non-operating income. The demolition and construction of fans and cables is expected to be completed in 2021. | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) |
| (13) | Fixed assets (Cont’d) |
| (a) | Fixed assets (Cont’d) |
| (v) | The generator units of Guangdong Yuejia Electric Co., Ltd. (“Yuejia Electric”) were shut down in 2010 and 2016. In 2020, pursuant to Guangdong Province’s work arrangement for restructuring “zombie companies”, Yuejia Electric, a subsidiary of the Group decided to dispose corresponding assets after shutting down of generator units, and transferred the fixed assets with a carrying amount of RMB 4,706,692 and intangible assets with a carrying amount of RMB 0 to other current assets (Note 4(15)). In 2020, the carrying amount of other current assets disposed of by the Group’s subsidiary Yuejia Electric was RMB 4,696,776, and the disposal expenses were RMB 2,860,679 at a consideration of RMB 348,494,173. The difference between the carrying amount of assets and disposal expenses and the consideration amounting to RMB 340,936,718 was included in gains on disposal of assets (Note 4(52)). As at 31 December 2020, Yuejia Electric had received the consideration for disposal of RMB 201,608,773, while the remaining consideration was the land withdrawal receivable from Meixian Chengjiangzhen People's Government of Meizhou City, totalling RMB 146,885,400 (Note 4(4)). |
| (vi) | Impairment of fixed assets |
| In 2020, movements of provision for impairment of fixed assets were as follows: |
| 31 December 2019 | Increase in the current year | Decrease in the current year | 31 December 2020 | |||
| Lincang Energy (Note 1) | 82,261,857 | 118,339,800 | - | 200,601,657 | ||
| Guangdong Yudean Bohe Energy Co., Ltd. (“Bohe Energy”, previously Guangdong Yudean Bohe Coal Power Co., Ltd.)(Note 2) | - | 208,000,000 | - | 208,000,000 | ||
| Guangdong Red Bay Power Generation Co., Ltd. (“Red Bay Power”) | 48,597,529 | - | - | 48,597,529 | ||
| Guangdong Shaoguan Yuejiang Electric Power Co., Ltd. (“Yuejiang Power”) | 73,395,628 | - | (32,440,873) | 40,954,755 | ||
| Guangdong Energy Maoming Thermal Power Station Co., Ltd. (“Energy Thermal”, previously Maoming Zhenneng Thermal Power Co., Ltd.) | 29,751,684 | - | - | 29,751,684 | ||
| Guangdong Yudean Jinghai Power Co., Ltd. (“Jinghai Power”) | 34,952,258 | 8,773,156 | (21,496,541) | 22,228,873 | ||
| Guangdong Electric Power Development Co., Ltd. Shajiao A Power Plant (“Shajiao A Power Plant”) (Note 3) | 76,354,667 | 52,051,098 | (107,070,194) | 21,335,571 | ||
| Zhanjiang Electric | 18,822,875 | - | - | 18,822,875 | ||
| Zhongyue Energy | 12,662,964 | 4,557,739 | (12,012,160) | 5,208,543 | ||
| Guangdong Huizhou Natural Gas Power Co., Ltd. (“Huizhou Natural Gas”) (Note 4) | 23,895,462 | - | (20,664,892) | 3,230,570 | ||
| Yuejia Electric (Note 4(13)(a)(v)) | 480,449,596 | - | (480,449,596) | - | ||
| Guangdong Wind Power | 2,732,374 | - | (2,732,374) | - | ||
| 883,876,894 | 391,721,793 | (676,866,630) | 598,732,057 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) |
| (13) | Fixed assets (Cont’d) |
| (a) | Fixed assets (Cont’d) |
| (vi) | Impairment of fixed assets (Cont’d) |
| Note 1 | Impairment of related asset groups of certain subsidiaries that have suffered continuous operating loss in recent years |
| In 2020 and previous years, certain subsidiaries of the Group were affected by sharp fluctuations in the price of coal used in power generation, the marketisation of the electricity industry and other factors, and there was continuous operating loss and indications of impairment, and the accumulated provision for impairment at the excess of the carrying amount and the present value of the estimated future cash flows of fixed assets in previous years was made. Taking into consideration risks that may exist in the future, such as the instability of electricity demand and the price of coal used in power generation, macro economy and other factors, the Group continuously monitored the impairment of the above-mentioned subsidiaries' power generation asset groups (mainly including fixed assets) in 2020. Due to the fierce competition in the hydroelectric power market in Yunnan Province, Lincang Energy, a subsidiary of the Group, suffered from continuous operating loss. In 2018, the Group made a provision of RMB 82,261,857 for the impairment of fixed assets for the relevant asset groups of generator units of Lincang Energy. The Group conducted impairment tests on the relevant asset groups of generator units of Lincang Energy again in 2020. As the carrying amount of the relevant asset groups was lower than the recoverable amount, the provision for the impairment of fixed assets was RMB 118,339,800. The above recoverable amount was determined based on the present value of the estimated future cash flows of the asset groups, and the value evaluation model adopted the pre-tax discount rates of 9.95%. | |
| Note 2 | In 2020, Bohe Energy obtained approval from Guangdong Development and Reform Committee. As the alternative capacity of some generator units could not be approved, management expected that the alternative capacity of these units would not be available for subsequent project construction or sales. Therefore, a provision of RMB 208,000,000 for impairment of fixed assets was made to the capitalised acquisition cost of the alternative capacity of these generator units. |
| Note 3 | Pursuant to the Circular on Shutdown of 1# Generator Unit of Shajiao A Power Plant and 2# 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# and 3# generator units were shut down in December 2019 and 4# and 5# generator units are expected to be shut down by the end of 2023. In 2018, the Group made a provision for impairment of power generation equipment related to 1# generator unit, amounting to RMB 40,395,369, and made accelerated depreciation of 1-5# generator units since 1 January 2019. In 2020, the Group carried out tests for impairment of 2# and 3# generator units of Shajiao A Power Plant and made a provision for impairment, amounting to RMB 52,051,098. In addition, the Group transferred part of the equipment related to 1#, 2# and 3# generator units which have been approved for scrapping to fixed assets pending for disposal, and the provision for impairment of fixed assets amounting to RMB 107,070,194 was transferred out accordingly. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||||
| (13) | Fixed assets (Cont’d) | |||||
| (a) | Fixed assets (Cont’d) | |||||
| (vi) | Impairment of fixed assets (Cont’d) | |||||
| Note 4 | In 2020, the Group partially disposed of the fixed assets of Huizhou Natural Gas of which provision for impairment was made in prior years, and the provision for impairment of fixed assets amounting to RMB 20,664,892 was transferred out accordingly. | |||||
| (vii) | Fixed assets held under finance leases | |||||
| As at 31 December 2020, the fixed assets with a carrying amount of RMB 2,641,183,636 (a cost of RMB 3,703,973,010) were held under finance leases (31 December 2019: a carrying amount of RMB 1,494,260,623 and a cost of RMB 2,962,401,108). The analysis was as follows: | ||||||
| Cost | Accumulated depreciation | Carrying amount | ||||
| 31 December 2020 | ||||||
| Power generation equipment | 3,703,973,010 | (1,062,789,374) | 2,641,183,636 | |||
| 31 December 2019 | ||||||
| Power generation equipment | 2,962,401,108 | (1,468,140,485) | 1,494,260,623 | |||
| Details of the future payments of fixed assets held under finance leases are disclosed in Note 4(32). | ||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||||||
| (13) | Fixed assets (Cont’d) | |||||||
| (a) | Fixed assets (Cont’d) | |||||||
| (viii) | Fixed assets with pending certificates of ownership: | |||||||
| Carrying amount | Reasons for not obtaining certificates of ownership | |||||||
| Buildings | 548,942,185 | Awaiting government approval | ||||||
| As at 31 December 2020, after consulting the Group’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. | ||||||||
| (b) | Disposal of fixed assets | |||||||
| 31 December 2020 | 31 December 2019 | |||||||
| Scraped parts of power generation equipment | 75,549,913 | 24,842,897 | ||||||
| Other equipment | 4,926,478 | 844,577 | ||||||
| 80,476,391 | 25,687,474 | |||||||
| (14) | Construction in progress | |||
| 31 December 2020 | 31 December 2019 | |||
| Construction in progress (a) | 9,151,362,123 | 10,881,106,316 | ||
| Construction materials (b) | 2,274,977 | 897,530 | ||
| 9,153,637,100 | 10,882,003,846 | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||||||||||
| (14) | Construction in progress (Cont’d) | |||||||||||
| (a) | Construction in progress | |||||||||||
| 31 December 2020 | 31 December 2019 | |||||||||||
| Book balance | Provision for impairment | Carrying amount | Book balance | Provision for impairment | Carrying amount | |||||||
| Zhuhai Jinwan Electric offshore wind power project | 3,432,128,854 | - | 3,432,128,854 | 398,849,306 | - | 398,849,306 | ||||||
| Yangjiang Shapa offshore wind power project | 1,451,718,258 | - | 1,451,718,258 | 390,159,975 | - | 390,159,975 | ||||||
| Qujie Wailuo offshore wind power project (Phase II) | 896,786,215 | - | 896,786,215 | 57,038,810 | - | 57,038,810 | ||||||
| Xinliao offshore wind power project | 772,822,903 | - | 772,822,903 | 55,250,401 | - | 55,250,401 | ||||||
| Huadu thermal and power cogeneration project | 496,904,393 | - | 496,904,393 | 136,704,136 | - | 136,704,136 | ||||||
| Pingyuan Maoping wind power project | 338,524,935 | - | 338,524,935 | 30,712,910 | - | 30,712,910 | ||||||
| Hunan Tongdao Dagaoshan wind power plant project | 114,806,165 | - | 114,806,165 | 15,590,430 | - | 15,590,430 | ||||||
| Bohe Energy integration project | 97,519,981 | - | 97,519,981 | 6,608,072,801 | - | 6,608,072,801 | ||||||
| Shajiao Ningzhou gas power project | 89,785,770 | - | 89,785,770 | 5,821,536 | - | 5,821,536 | ||||||
| Qujie Wailuo offshore wind power project (Phase I) | - | - | - | 2,306,302,480 | - | 2,306,302,480 | ||||||
| Other infrastructure construction projects | 802,352,687 | (283,142,471) | 519,210,216 | 501,729,597 | (201,306,931) | 300,422,666 | ||||||
| Other technology improvement projects | 941,154,433 | - | 941,154,433 | 576,180,865 | - | 576,180,865 | ||||||
| 9,434,504,594 | (283,142,471) | 9,151,362,123 | 11,082,413,247 | (201,306,931) | 10,881,106,316 | |||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | ||||||||||||||||||||||||||||
| (14) | Construction in progress (Cont’d) | ||||||||||||||||||||||||||||
| (a) | Construction in progress (Cont’d) | ||||||||||||||||||||||||||||
| (i) | Movements of major construction in progress | ||||||||||||||||||||||||||||
| Project name | Budget | 31 December 2019 | Increase in the current year | Transfer to fixed assets in the current year (Note 4(13)(a)(ii)) | Transfer from fixed assets in the current year (Note 4(13)(a)(iv)) | Transfer to intangible assets in the current year (Note 4(15)) | Impairment (ii) | Other movements (i) | 31 December 2020 | Proportion of investment to the budget (%) | Project progress | Accumulated capitalised borrowing costs | Including: Capitalised borrowing costs for the year | Capitalisation rate | Source of fund | ||||||||||||||
| Zhuhai Jinwan Electric offshore wind power project | 5,643,170,000 | 398,849,306 | 3,037,440,741 | - | - | - | - | (4,161,193) | 3,432,128,854 | 68.81% | 60.65% | 69,473,154 | 63,649,374 | 4.13% | Borrowings and own funds | ||||||||||||||
| Yangjiang Shapa offshore wind power project | 5,963,270,000 | 390,159,975 | 1,061,558,283 | - | - | - | - | - | 1,451,718,258 | 27.51% | 24.13% | 41,235,860 | 39,755,269 | 4.21% | Borrowings and own funds | ||||||||||||||
| Qujie Wailuo offshore wind power project (Phase II) | 3,789,120,000 | 57,038,810 | 858,528,764 | (18,531,359) | - | (250,000) | - | - | 896,786,215 | 27.30% | 29.44% | 16,936,729 | 16,849,840 | 3.87% | Borrowings and own funds | ||||||||||||||
| Xinliao offshore wind power project | 3,698,880,000 | 55,250,401 | 751,799,099 | (34,226,597) | - | - | - | - | 772,822,903 | 24.66% | 20.72% | 16,662,156 | 16,662,156 | 3.91% | Borrowings and own funds | ||||||||||||||
| Huadu thermal and power cogeneration project | 3,593,160,000 | 136,704,136 | 360,200,257 | - | - | - | - | - | 496,904,393 | 15.63% | 14.07% | 13,287,574 | 12,158,611 | 3.65% | Borrowings and own funds | ||||||||||||||
| Pingyuan maoping wind power project | 450,818,900 | 30,712,910 | 308,659,203 | - | - | - | - | (847,178) | 338,524,935 | 85.07% | 77.73% | 5,799,060 | 5,790,856 | 4.07% | Borrowings and own funds | ||||||||||||||
| Hunan Tongdao Dagaoshan wind power plant project | 531,740,000 | 15,590,430 | 99,215,735 | - | - | - | - | - | 114,806,165 | 24.40% | 31.76% | 3,053,294 | 3,053,294 | 4.29% | Borrowings and own funds | ||||||||||||||
| Bohe Energy integration project | 11,037,075,900 | 6,608,072,801 | 2,125,151,266 | (8,690,425,794) | - | - | - | 54,721,708 | 97,519,981 | 89.41% | 95.66% | 466,723,380 | 103,913,901 | 4.33% | Borrowings and own funds | ||||||||||||||
| Shajiao Ningzhou gas power project | 5,927,600,000 | 5,821,536 | 83,964,234 | - | - | - | - | - | 89,785,770 | 1.71% | 1.51% | - | - | - | Own funds | ||||||||||||||
| Qujie Wailuo offshore wind power project (Phase I) | 3,739,450,000 | 2,306,302,480 | 582,682,564 | (2,853,319,433) | - | (3,330,000) | - | (32,335,611) | - | 87.30% | 100.00% | 57,152,791 | 12,912,894 | 4.58% | Borrowings and own funds | ||||||||||||||
| Other infrastructure | Not applicable | 300,422,666 | 313,524,109 | (12,901,019) | - | - | (81,835,540) | - | 519,210,216 | Not | Not | 20,195,918 | 8,120,010 | 4.16% | Borrowings and own | ||||||||||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
constructionprojects
| construction projects | applicable | applicable | funds | ||||||||||||||||||||||||||
| Other technology improvement projects | Not applicable | 576,180,865 | 931,344,110 | (562,807,483) | 3,581,382 | (7,144,441) | - | - | 941,154,433 | Not applicable | Not applicable | 1,335,162 | 1,335,162 | 4.23% | Borrowings and own funds | ||||||||||||||
| 10,881,106,316 | 10,514,068,365 | (12,172,211,685) | 3,581,382 | (10,724,441) | (81,835,540) | 17,377,726 | 9,151,362,123 | 711,855,078 | 284,201,367 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||||||||
| (14) | Construction in progress (Cont’d) | |||||||||
| (a) | Construction in progress (Cont’d) | |||||||||
| (i) | Movements of major construction in progress (Cont’d) | |||||||||
| Other movements of construction in progress for the year mainly include net income from trial operation of RMB 37,343,982 and net expenses on trial operation of RMB 54,721,708. | ||||||||||
| (ii) | Provision for impairment of construction in progress | |||||||||
| Item | 31 December 2019 | Increase in the current year | Decrease in the current year | 31 December 2020 | Reason for provision | |||||
| Humen Electric 2*1000MW project (Note 1) | (137,373,040) | - | - | (137,373,040) | Stoppage of construction | |||||
| Shajiao A4# coal yard sea-fill yard capacity increase project | (5,802,000) | - | - | (5,802,000) | Impairment of upfront expenses for construction in progress | |||||
| Impairment of upfront expenses for Guangdong Wind Power project | (50,166,211) | - | - | (50,166,211) | Impairment of upfront expenses for construction in progress | |||||
| Impairment of upfront expenses for Lincang Hydropower project | (3,354,129) | - | - | (3,354,129) | Impairment of upfront expenses for construction in progress | |||||
| Impairment of upfront expenses for Guangqian Electric Project Phase II | (4,611,551) | - | - | (4,611,551) | Impairment of upfront expenses for construction in progress | |||||
| Impairment of upfront expenses for 5# and 6# generator units of Red Bay (Note 2) | - | (26,446,447) | - | (26,446,447) | Impairment of upfront expenses for construction in progress | |||||
| Impairment of upfront expenses for 5# and 6# generator units of Jinghai (Note 2) | - | (55,389,093) | - | (55,389,093) | Impairment of upfront expenses for construction in progress | |||||
| (201,306,931) | (81,835,540) | - | (283,142,471) | |||||||
| 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 in 2017. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) |
| (14) | Construction in progress (Cont’d) |
| (a) | Construction in progress (Cont’d) |
| (ii) | Provision for impairment of construction in progress (Cont’d) |
| Note 2 | Upfront expenses for 5# and 6# generator units of Red Bay and Jinghai mainly represent expenses on preliminary feasibility studies, design and three supplies and one levelling. In recent years, the national energy industry distribution and the project planning of competent authorities has left the project stagnant. In 2020, management reassessed the feasibility of the project, and concluded that it was less likely to proceed with the project. Thus, management recorded provision for impairment of construction in progress in full amount in the current year. |
| (iii) | As at 31 December 2020, some generator units under construction were waiting for 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 generator units were put into production. Therefore, the risk of impairment of such units was low. |
| (iv) | In 2018, Bohe Energy sold part of its construction in progress of power plants to the Energy Financial Leasing Company at RMB 1,000,000,000 in total through finance leases arising from sales and leaseback, with the sales proceeds of RMB 900,000,000 and RMB 100,000,000 respectively received in 2018 and 2019. In 2020, as the main work of Bohe Energy integration project was completed and transferred to fixed assets, the book balance of construction in progress arising from finance leases amounting to RMB 1,000,000,000 was transferred to fixed assets. As at 31 December 2020, Bohe Energy had no book balance of construction in progress arising from finance leases (2019: RMB 1,000,000,000). |
| In 2020, the Group acquired part of Wailuo offshore wind power project (Phase II) of Qujie Wind Power and part of Xinliao offshore wind power project under finance leases. As at 31 December 2020, the book balance of construction in progress arising from Wailuo offshore wind power project (Phase II) of Qujie Wind Power under finance leases was RMB 15,707,964 (31 December 2019: Nil) and the book balance of construction in progress arising from Xinliao offshore wind power project under finance leases was RMB 419,647,262 (31 December 2019: Nil). In addition, the book balance of RMB 641,571,902 of construction in progress arising from Wailuo offshore wind power project (Phase I) under finance leases was transferred to fixed assets in 2020 (31 December 2019: RMB 496,524,360). |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) |
| (14) | Construction in progress (Cont’d) |
| (a) | Construction in progress (Cont’d) |
| (iv) | (Cont’d) |
| In 2019, the Group acquired part of Yangjiang Shapa offshore wind power project of Guangdong Yudean Yangjiang Offshore Wind Power Co., Ltd. ("Yangjiang Wind Power") under finance leases. As at 31 December 2020, the book balance of construction in progress arising from finance leases was RMB 195,556,709 (31 December 2019: RMB 98,973,445). In 2019, the Group acquired part of Zhuhai Jinwan Electric offshore wind power project of Zhuhai Wind Power under finance leases. As at 31 December 2020, the book balance of construction in progress arising from finance leases was RMB 285,812,173 (31 December 2019: RMB 100,962,931). In 2020, the Group acquired part of Hunan Tongdao Dagaoshan wind power plant project under finance leases. As at 31 December 2020, the book balance of construction in progress arising from finance leases was RMB 42,240,044 (31 December 2019: Nil). In 2020, the Group acquired part of Huadu thermal and power cogeneration project under finance leases. As at 31 December 2020, the book balance of construction in progress arising from finance leases was RMB 85,952,629 (31 December 2019: Nil). | |
| (b) | Construction materials |
| 31 December 2020 | 31 December 2019 | |||
| Equipment for specific use | 1,337,570 | 664,437 | ||
| Materials for specific use | 937,407 | 962,696 | ||
| 2,274,977 | 1,627,133 | |||
| Less: Provision for impairment of construction materials | ||||
| - Materials for specific use | - | (729,603) | ||
| 2,274,977 | 897,530 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||||||||||||||
| (15) | Intangible assets | |||||||||||||||
| Associated projects for electricity transmission and transformation and microwave engineering | Land use rights | Sea use rights | Transportation project | Franchise right | Software | Non-patent technology and others | Total | |||||||||
| Cost | ||||||||||||||||
| 31 December 2019 | 442,517,684 | 2,068,478,525 | 129,906,544 | 22,468,672 | 14,795,352 | 132,513,656 | 7,356,943 | 2,818,037,376 | ||||||||
| Increase in the current year | ||||||||||||||||
| Purchase | - | 394,169,295 | - | - | - | 13,015,782 | 641,996 | 407,827,073 | ||||||||
| Transfer from construction in progress (Note 4(14)(a)(i)) | - | 3,330,000 | - | - | - | 6,932,177 | 462,264 | 10,724,441 | ||||||||
| Decrease in the current year | ||||||||||||||||
| Disposal | - | (76,593) | - | - | - | - | - | (76,593) | ||||||||
| Reclassification to other current assets (Note 4(13)(a)(v)) | (190,778,416) | - | - | (7,298,672) | - | - | - | (198,077,088) | ||||||||
| 31 December 2020 | 251,739,268 | 2,465,901,227 | 129,906,544 | 15,170,000 | 14,795,352 | 152,461,615 | 8,461,203 | 3,038,435,209 | ||||||||
| Accumulated amortisation | ||||||||||||||||
| 31 December 2019 | (409,328,310) | (377,104,840) | (25,709,325) | (21,447,068) | (10,591,406) | (94,480,905) | (923,531) | (939,585,385) | ||||||||
| Increase in the current year | ||||||||||||||||
| Provision (a) | - | (50,921,532) | (2,471,188) | - | (389,604) | (10,007,580) | (848,729) | (64,638,633) | ||||||||
| Decrease in the current year | ||||||||||||||||
| Disposal | - | 50,455 | - | - | - | - | - | 50,455 | ||||||||
| Reclassification to other current assets (Note 4(13)(a)(v)) | 157,589,042 | - | - | 6,277,068 | - | - | - | 163,866,110 | ||||||||
| 31 December 2020 | (251,739,268) | (427,975,917) | (28,180,513) | (15,170,000) | (10,981,010) | (104,488,485) | (1,772,260) | (840,307,453) | ||||||||
| Provision for impairment | ||||||||||||||||
| 31 December 2019 | (33,189,374) | (56,502,373) | - | (1,021,604) | - | - | - | (90,713,351) | ||||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| Decrease in the current year | ||||||||||||||||
| Reclassification to other current assets (Note 4(13)(a)(v)) | 33,189,374 | - | - | 1,021,604 | - | - | - | 34,210,978 | ||||||||
| 31 December 2020 | - | (56,502,373) | - | - | - | - | - | (56,502,373) | ||||||||
| Carrying amount | ||||||||||||||||
| 31 December 2020 | - | 1,981,422,937 | 101,726,031 | - | 3,814,342 | 47,973,130 | 6,688,943 | 2,141,625,383 | ||||||||
| 31 December 2019 | - | 1,634,871,312 | 104,197,219 | - | 4,203,946 | 38,032,751 | 6,433,412 | 1,787,738,640 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) |
| (15) | Intangible assets (Cont’d) |
| (a) | In 2020, the amortised amount of intangible assets was RMB 64,638,633, with general and administrative expenses of RMB 59,013,289, construction in progress of RMB 4,750,588 and research and development expenses of RMB 874,756 respectively (In 2019, the amortised amount of intangible assets was RMB 59,255,625, with general and administrative expenses of RMB 52,313,721 and construction in progress of RMB 6,941,904 respectively). |
| (b) | As at 31 December 2020, the Group had obtained land use right certificates for all of its lands, except for lands with carrying amount of RMB 32,527,564 (31 December 2019: RMB 33,348,275) that were under approval procedures for land use. After consulting the Group’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 would incur. |
| (c) | In 2020, the Group’s expenditures on research and development totalling RMB 274,579,716 (2019: RMB 9,703,602) were all recognised as research and development expenses in the current period (Note 4(45)). As at 31 December 2020, there were no intangible assets arising from internal research and development within the Group. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | ||||
| (16) | Goodwill | ||||
| 31 December 2020 | 31 December 2019 | ||||
| Goodwill - | |||||
| Guangdong Wind Power (a) | 2,449,886 | 2,449,886 | |||
| Lincang Energy (b) | 25,036,894 | 25,036,894 | |||
| 27,486,780 | 27,486,780 | ||||
| Less: Provision for impairment - | |||||
| Lincang Energy (b) | (25,036,894) | (25,036,894) | |||
| 2,449,886 | 2,449,886 | ||||
| (a) | In 2013, the Group acquired 55% 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 the Group’s share of Guangdong Wind Power’s identifiable net assets amounted to RMB 2,449,886 and was recognised as goodwill related to Guangdong Wind Power. On 31 December 2020, the Group conducted impairment tests on goodwill related to Guangdong Wind Power. The results showed that the recoverable amount of asset group related to Guangdong Wind Power (including goodwill) was higher than its carrying amount, and there was no risk of impairment (31 December 2019: There was no risk of impairment). |
| (b) | On 5 January 2015, the Group exchanged for 51.00% of the equity in Lincang Energy held by third parties with 14.34% of equity in Weixin Yuntou. The excess of the combination cost over the fair value of the Group’s share of Lincang Energy’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. |
| (17) | Long-term prepaid expenses | |||||||
| 31 December 2019 | Increase in the current year | Amortisation charged in the current year | 31 December 2020 | |||||
| Long-term lease charges | 15,287,462 | - | (2,028,166) | 13,259,296 | ||||
| Improvements to fixed assets held under operating leases | 4,115,789 | 5,855,340 | (1,415,513) | 8,555,616 | ||||
| Others | 70,335 | 4,612,988 | (88,930) | 4,594,393 | ||||
| 19,473,586 | 10,468,328 | (3,532,609) | 26,409,305 | |||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||||||
| (18) | Deferred tax assets and deferred tax liabilities | |||||||
| (a) | Deferred tax assets before offsetting | |||||||
| 31 December 2020 | 31 December 2019 | |||||||
| Deductible temporary differences and deductible tax losses | Deferred tax assets | Deductible temporary differences and deductible tax losses | Deferred tax assets | |||||
| Deductible losses | 866,934,091 | 216,733,521 | 686,911,585 | 171,727,895 | ||||
| Provision for asset impairments | 442,188,855 | 110,391,655 | 408,154,790 | 101,889,644 | ||||
| Net income from trial operation included in construction in progress | 234,870,149 | 54,608,985 | 209,580,236 | 49,967,756 | ||||
| Unrealised profits from intra-group transactions | 148,814,504 | 37,203,626 | 166,852,624 | 41,713,156 | ||||
| Employee benefits payable | 117,216,096 | 29,304,023 | 103,644,393 | 25,911,098 | ||||
| Government grants | 76,619,379 | 19,154,845 | 86,420,159 | 21,605,041 | ||||
| Depreciation of fixed assets | 74,700,511 | 18,675,127 | 75,431,480 | 18,857,870 | ||||
| Amortisation of intangible assets | 4,526,232 | 1,131,558 | 4,490,857 | 1,122,714 | ||||
| Amortisation of pre-operating costs | - | - | 165,954,215 | 41,488,554 | ||||
| 1,965,869,817 | 487,203,340 | 1,907,440,339 | 474,283,728 | |||||
| Including: | ||||||||
| Expected to be recovered within 1 year (inclusive) | 96,965,235 | 44,262,666 | ||||||
| Expected to be recovered after one year | 390,238,105 | 430,021,062 | ||||||
| 487,203,340 | 474,283,728 | |||||||
| (b) | Deferred tax liabilities before offsetting | |||||||
| 31 December 2020 | 31 December 2019 | |||||||
| Taxable temporary differences | Deferred tax liabilities | Taxable temporary differences | Deferred tax liabilities | |||||
| Changes in fair value of other equity instruments included in other comprehensive income | (2,538,725,399) | (634,681,350) | (2,202,745,317) | (550,686,330) | ||||
| Net expenses in trial operation included in construction in progress | (96,051,849) | (24,012,962) | (38,741,129) | (9,685,282) | ||||
| Capital appreciation from assets revaluation arising from business combinations involving enterprises not under common control | (56,290,560) | (14,072,640) | - | - | ||||
| Amortisation of land use rights | (16,068,632) | (4,017,158) | (16,451,826) | (4,112,957) | ||||
| Interest receivable | (6,620,900) | (1,655,226) | (3,341,332) | (835,333) | ||||
| Depreciation of fixed assets | (2,993,057) | (748,264) | (2,560,854) | (640,214) | ||||
| (2,716,750,397) | (679,187,600) | (2,263,840,458) | (565,960,116) | |||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| Including: | ||||||||
| Expected to be recovered within 1 year (inclusive) | (9,629,576) | (1,863,587) | ||||||
| Expected to be recovered after one year | (669,558,024) | (564,096,529) | ||||||
| (679,187,600) | (565,960,116) | |||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||
| (18) | 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 2020 | 31 December 2019 | |||
| Deductible temporary differences | 1,179,347,248 | 1,435,936,580 | ||
| Deductible losses | 2,074,970,324 | 1,467,976,248 | ||
| 3,254,317,572 | 2,903,912,828 | |||
| (d) | Deductible tax losses that are not recognised as deferred tax assets will expire in following years: | |||
| 31 December 2020 | 31 December 2019 | |||
| 2020 | - | 172,104 | ||
| 2021 | 134,978,486 | 141,098,222 | ||
| 2022 | 628,529,972 | 603,896,902 | ||
| 2023 | 670,390,708 | 567,573,810 | ||
| 2024 | 153,029,742 | 155,235,210 | ||
| 2025 | 488,041,416 | - | ||
| 2,074,970,324 | 1,467,976,248 | |||
| Management believed that as at the maturity date for the above deductible losses, the relevant subject of tax payment has no 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 2020 | 31 December 2019 | |||||
| Offsetting amount | Balance after offsetting | Offsetting amount | Balance after offsetting | |||
| Deferred tax assets | (40,615,690) | 446,587,650 | (28,574,502) | 445,709,226 | ||
| Deferred tax liabilities | 40,615,690 | (638,571,910) | 28,574,502 | (537,385,614) | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||
| (19) | Other non-current assets | |||
| 31 December 2020 | 31 December 2019 | |||
| Prepaid equipment payments | 1,421,038,893 | 971,323,399 | ||
| Input VAT to be deducted | 886,196,509 | 881,814,121 | ||
| Prepayment for projects | 394,556,021 | 488,163,133 | ||
| Unrealised losses on sales and leaseback (a) | 209,580,144 | 346,314,528 | ||
| Prepayment for equity acquisition (b) | 113,381,000 | - | ||
| Deposits prepaid for equity acquisition (c) | 80,000,000 | - | ||
| Prepayment for land use rights | 73,532,955 | 64,424,212 | ||
| Others | 2,054,516 | 1,819,595 | ||
| 3,180,340,038 | 2,753,858,988 | |||
| (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 2020, the unrealised losses on sales and leaseback, which were amortised in depreciation expenses in cost of sales, amounted to RMB 13,577,182 (2019: RMB: 16,764,193). | |||
| (b) | On 29 December 2020, Guangdong Wind Power, a subsidiary of the Group, entered into an equity transfer agreement with Guangdong Guangye Investment Group Co., Ltd. (“Guangye Investment Group”). Guangdong Wind Power intended to acquire 51% equity of Guangdong Guangye Nanhua New Energy Co., Ltd. (“Nanhua New Energy”) held by Guangye Investment Group, at a consideration of RMB 93,381,000. As at 31 December 2020, Guangdong Wind Power had paid the equity acquisition of RMB 93,381,000 in full amount. As at 31 December 2020, as the registration for changes of business license of Nanhua New Energy had not been completed and Guangdong Wind Power had not obtained substantive control over Nanhua New Energy, the relevant equity acquisition was included in other non-current assets, and relevant equity transactions would be completed in 2021. | |||
| As at 31 December 2020, Guangdong Wind Power (a subsidiary of the Group) entered into an equity transfer agreement with Guangye Investment Group, intending to acquire 51% equity of Guangdong Yueneng Datang Renewable Power Co., Ltd. (“Datang Renewable Power”) held by Guangye Investment Group, at a consideration of RMB 161,858,100. As at 31 December 2020, as the registration for changes of business license of Datang Renewable Power had not been completed and Guangdong Wind Power had not obtained substantive control over Datang Renewable Power, the relevant equity acquisition was included in other non-current assets, and relevant equity transactions would be completed in 2021. | ||||
| (c) | In July 2020, the Group’s subsidiary Guangdong Province Wind Power Generation Co., Ltd. (“Guangdong Wind Power”) and Beijing Guangdun New Energy Technology Co., Ltd. (“Guangdun New Energy”) signed the Equity Acquisition Framework Agreement of Dachengxian Dun’An New Energy Co., Ltd. The agreement stipulated that if the Ziya River wind power plant project of Dachengxian Dun‘An New Energy Co., Ltd. (“Dun’An New Energy”) (a wholly-owned subsidiary of Guangdun New Energy) was put into operation before 31 December 2021, Guangdong Wind Power acquired 100% equity of Dun’An New Energy from Guangdun New Energy. In December 2020, Guangdong Wind Power paid the equity acquisition deposit of RMB 80,000,000 in accordance with the agreement. Due to the uncertainty of pre-conditions regarding the acquisition of underlying equity and the fact that the margin is recoverable after the actual closing date of the equity acquisition and does not constitute a part of the acquisition, the margin is included in other non-current assets. | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) |
| (20) | Provision for asset impairment and losses |
| 31 December 2019 | Increase in the current year | Reversal in the current year | Write-off in the current year | Reclassification to other current assets (Note 4(13)(a)(v)) and (Note 4(15)) | 31 December 2020 | ||||||
| Provision for bad debts of accounts receivable | (155,421) | (193,327) | 155,421 | - | - | (193,327) | |||||
| Including: Provision for bad debts on grouping basis | (155,421) | (193,327) | 155,421 | - | - | (193,327) | |||||
| Provision for bad debts of other receivables | (11,745,906) | (1,844,989) | 1,594,751 | 2,803,643 | - | (9,192,501) | |||||
| Provision for bad debts of contract assets | - | (12,512) | - | - | - | (12,512) | |||||
| Sub-total | (11,901,327) | (2,050,828) | 1,750,172 | 2,803,643 | - | (9,398,340) | |||||
| Provision for impairment of advances to suppliers | (115,001) | - | - | - | - | (115,001) | |||||
| Provision for decline in the value of inventories | (15,009,456) | (13,985,244) | - | - | - | (28,994,700) | |||||
| Provision for impairment of long-term equity investments | (96,327,854) | - | - | - | - | (96,327,854) | |||||
| Provision for impairment of fixed assets | (883,876,894) | (391,721,793) | - | 196,417,034 | 480,449,596 | (598,732,057) | |||||
| Provision for impairment of construction materials | (729,603) | - | - | 729,603 | - | - | |||||
| Provision for impairment of construction in progress | (201,306,931) | (81,835,540) | - | - | - | (283,142,471) | |||||
| Provision for impairment of intangible assets | (90,713,351) | - | - | - | 34,210,978 | (56,502,373) |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Provision for impairment of goodwill
| Provision for impairment of goodwill | (25,036,894) | - | - | - | - | (25,036,894) | |||||
| Sub-total | (1,313,115,984) | (487,542,577) | - | 197,146,637 | 514,660,574 | (1,088,851,350) | |||||
| (1,325,017,311) | (489,593,405) | 1,750,172 | 199,950,280 | 514,660,574 | (1,098,249,690) | ||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||
| (21) | Short-term borrowings | |||
| 31 December 2020 | 31 December 2019 | |||
| Principal | ||||
| Credit loan | 7,614,870,202 | 5,894,026,790 | ||
| Interest | ||||
| Credit loan | 7,557,714 | 10,106,001 | ||
| 7,622,427,916 | 5,904,132,791 | |||
| (a) | ||||
| (b) | As at 31 December 2020, the principal of short-term credit loan provided by related party Energy Group Finance Company amounted to RMB 4,583,000,000 (31 December 2019: RMB 4,115,000,000) (Note 8(6)). Interest payable of short-term borrowings to Energy Group Finance Company amounted to RMB 4,920,173 (31 December 2019: RMB 4,893,053). |
| (22) | Notes payable | |||
| 31 December 2020 | 31 December 2019 | |||
| Bank acceptance notes | 972,292,546 | 794,236,650 | ||
| Trade acceptance notes | 120,000,000 | 570,000,000 | ||
| 1,092,292,546 | 1,364,236,650 | |||
| (a) | The Group used acceptance notes to pay for fire coal procured from the Industry Fuel. According to the three-party agreement signed among the Group, Energy Group Finance Company and Industry Fuel, discounting expenses will be borne by the Group when Industry Fuel discounts the notes they receive. As at 31 December 2020, the balance of trade acceptance notes issued by the Group and discounted by Industry Fuel with Energy Group Finance Company amounted to RMB 120,000,000 (31 December 2019: RMB 570,000,000) with discount rate of 2.50% to 2.85% (31 December 2019: 2.70% to 3.72%). The acceptance notes were due within eleven months (31 December 2019: due from three to eleven months) (Note 8(6)). As at 31 December 2020, the balance of bank acceptance notes issued by the Group to Industry Fuel with Energy Group Finance Company and discounted by Industry Fuel with Energy Group Finance Company amounted to RMB 492,992,546 (31 December 2019: RMB 300,000,000) with discount rate of 2.50% to 3.50% (31 December 2019: 2.70% to 3.60%). The acceptance notes were due from two to nine months (31 December 2019: due from four to twelve months) (Note 8(6)). |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||
| (22) | Notes payable (Cont’d) | |||
| (a) | (Cont’d) | |||
| As at 31 December 2020, the balance of bank acceptance notes issued by the Group to Industry Fuel with external banks and discounted by Industry Fuel with external banks amounted to RMB 354,000,000 (31 December 2019: RMB 328,000,000) with discount rate of 2.14% to 2.95% (31 December 2019: 2.80% to 3.65%). The acceptance notes were due from two to eight months (31 December 2019: due from two to twelve months). As at 31 December 2020, the balance of bank acceptance notes issued by the Group to Guangdong Pearl River Investment Electricity and Fuel Co, Ltd. (“Pearl Fuel”) with external banks and discounted by Pearl Fuel with external banks amounted to RMB 85,000,000 (31 December 2019: RMB 166,236,650) with discount rate of 2.17% to 2.71% (31 December 2019: 2.73% to 3.30%). The acceptance notes were due from five to six months (31 December 2019: due from five to eight months). | ||||
| (b) | As at 31 December 2020, the balance of bank acceptance notes issued by the Group to project builders with external banks and discounted by project builders with external banks amounted to RMB 40,300,000 (31 December 2019: Nil) with discount rate of 1.43% to 3.21% (31 December 2019: Nil). The acceptance notes were due from eleven to twelve months (31 December 2019: Nil). The Group shall bear the discounting interest expenses arising from relevant acceptance notes when such acceptance notes are obtained by the project builders and discounted to external banks. | |||
| (c) | In 2020, the discounting interest charged by Energy Group Finance Company and borne by the Group which was included in the discounting interest expenses in the current year amounted to RMB 25,427,149 (2019: RMB 28,961,757) (Note 8(5)(h)). The Group presented the procurement of coal with the acceptance notes in the cash outflows from operating activities and payment of project equipment with acceptance notes in the cash outflows from investing activities, and the discounting interest borne by the Group in the cash outflows from financing activities. | |||
| (23) | Accounts payable | |||
| 31 December 2020 | 31 December 2019 | |||
| Fuel payable and freight payable | 2,152,485,461 | 2,042,046,703 | ||
| Materials and spare parts payable | 396,420,019 | 372,739,371 | ||
| Settlement payable for power transactions (b) | 41,580,819 | - | ||
| Management fees payable for frequency modulation and energy storage | 11,686,819 | - | ||
| Others | 64,007,395 | 50,368,088 | ||
| 2,666,180,513 | 2,465,154,162 | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) |
| (23) | Accounts payable (Cont'd) |
| (a) | As at 31 December 2020, accounts payable with ageing over one year amounted RMB 36,173,534 (31 December 2019: RMB 37,429,105), mainly including unsettled fuel payable and materials payable. |
| (b) | In December 2020, Power Sales, a subsidiary of the Group, had a settlement payable for power transactions due to the adjustment to the price difference of the power sales contract amounting to RMB 41,580,819 (31 December 2019: Nil). |
| (24) | Contract liabilities | |||
| 31 December 2020 | 31 December 2019 | |||
| Advances from services | 6,344,293 | - | ||
| Advances from others | 229,619 | - | ||
| 6,573,912 | - | |||
| (25) | Employee benefits payable | |||
| 31 December 2020 | 31 December 2019 | |||
| Short-term employee benefits payable (a) | 261,426,210 | 210,052,524 | ||
| Defined contribution plans payable (b) | 3,087,318 | 3,386,520 | ||
| Early retirement benefits payable (c) | 32,292,293 | 29,071,494 | ||
| Defined benefit plans payable (c) | 7,742,552 | - | ||
| 304,548,373 | 242,510,538 | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||||||
| (25) | Employee benefits payable (Cont'd) | |||||||
| (a) | Short-term employee benefits | |||||||
| 31 December 2019 | Increase in the current year | Decrease in the current year | 31 December 2020 | |||||
| Wages and salaries, bonus, allowances and subsidies | - | 1,289,732,433 | (1,289,533,582) | 198,851 | ||||
| Staff welfare | 3,089,748 | 127,272,952 | (127,272,952) | 3,089,748 | ||||
| Social security contributions | 108,737,231 | 107,923,923 | (68,560,284) | 148,100,870 | ||||
| Including: Medical insurance | 108,737,231 | 101,493,919 | (62,130,280) | 148,100,870 | ||||
| Work injury insurance | - | 179,643 | (179,643) | - | ||||
| Maternity insurance | - | 6,250,361 | (6,250,361) | - | ||||
| Housing funds | - | 133,490,448 | (133,490,448) | - | ||||
| Labour union funds and employee education funds | 92,290,273 | 51,806,192 | (41,898,414) | 102,198,051 | ||||
| Other short-term employee benefits | 5,935,272 | 97,056,329 | (95,152,911) | 7,838,690 | ||||
| 210,052,524 | 1,807,282,277 | (1,755,908,591) | 261,426,210 | |||||
| (b) | Defined contribution plans | |||||||
| 31 December 2019 | Increase in the current year | Decrease in the current year | 31 December 2020 | |||||
| Basic pensions | - | 23,493,814 | (23,493,814) | - | ||||
| Unemployment insurance | - | 1,001,683 | (1,001,683) | - | ||||
| Annuity | 3,386,520 | 95,462,923 | (95,762,125) | 3,087,318 | ||||
| 3,386,520 | 119,958,420 | (120,257,622) | 3,087,318 | |||||
| (c) | Early retirement benefits payable refer to early retirement benefits payable by the Group within one year, and defined benefit plans payable refer to retirement pensions payable by the Group within one year. Please refer to Note 4(34)(a) and (b) for details. | |||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||
| (26) | Taxes payable | |||
| 31 December 2020 | 31 December 2019 | |||
| Unpaid VAT | 315,452,032 | 330,790,264 | ||
| Enterprise income tax payable | 147,823,950 | 186,789,728 | ||
| Individual income tax payable | 18,973,674 | 14,877,406 | ||
| City maintenance and construction tax payable | 4,710,210 | 13,996,062 | ||
| Water resource fee payable | 4,690,504 | 8,392,765 | ||
| Educational surcharge and local educational surcharge payable | 3,895,809 | 12,344,489 | ||
| Pollution discharge fee payable and environmental protection tax payable | 2,227,048 | 2,764,462 | ||
| Others | 1,027,853 | 1,421,975 | ||
| 498,801,080 | 571,377,151 | |||
| (27) | Other payables | |||
| 31 December 2020 | 31 December 2019 | |||
| Construction and equipment expenses payable | 5,539,541,169 | 3,754,518,279 | ||
| Generator unit capacity payable (b) | 830,188,680 | - | ||
| Project warranty payable | 124,770,917 | 109,048,438 | ||
| Advances from land reserve (c) | 39,253,600 | - | ||
| Carbon emission allowances payable | 36,011,871 | - | ||
| Advances from compensations for demolition (Note 4(13)(a)(iv)) | 14,373,126 | - | ||
| State Oceanic and Fisheries Administration penalty payable (d) | 11,531,700 | 11,531,700 | ||
| Dividends payable to non-tradable owners of the Company (e) | 9,771,322 | 9,771,322 | ||
| Others | 170,258,199 | 157,247,358 | ||
| 6,775,700,584 | 4,042,117,097 | |||
| (a) | As at 31 December 2020, other payables of RMB 1,675,967,363 (31 December 2019: RMB 1,860,509,505) 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) | As at 31 December 2020, 1# and 2# generator units of Bohe Energy had been completed and were temporarily transferred to fixed assets. Generator unit capacity payable by Bohe Energy was estimated to be RMB 830,188,680 based on the capacity index of thermal power generator units. | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) |
| (27) | Other payables (Cont’d) |
| (c) | On 4 June 2020, Pinghai Power and the Department of Natural Resources of Huizhou Bureau signed An agreement on the recovery of land use rights, which agreed that the Department of Natural Resources of Huizhou Bureau would recover part of the land originally intended for construction of the new construction project of Pinghai Power based on the market value of the land for state-owned construction. The contract consideration is subject to the assessment on the value of the land. As at 31 December 2020, the Department of Natural Resources of Huizhou Bureau had paid land reserve of RMB 39,253,600 to Pinghai Power in advance. As the final contract consideration was still under evaluation, the Group recognised the advances from land reserve as other payables. |
| (d) | 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 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. Pinghai Power had appealed for the aforesaid matter, and on 23 August 2019, Guangdong High People’s Court overruled such appeal and upheld the original judgement as the final judgement. As at 16 December 2019, Pinghai Power paid up penalty of RMB 172,144,350 to the Administration of Ocean and Fisheries of Guangdong Province, with outstanding penalty of RMB 11,531,700 payable to the Administration of Ocean and Fisheries of Huidong County. As at the issuance date of the report, Pinghai Power was still waiting for the administrative judgement by Guangzhou Maritime Affairs Court. 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 target company’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. As at the issuance date of the report, with consultation and communication between the Company and GEGC still underway, no specific compensation solution was reached and thus no income related to such compensation matters was recognised in the financial statements for the year ended 31 December 2020. |
| (e) | 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. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||
| (28) | Current portion of non-current liabilities | |||
| 31 December 2020 | 31 December 2019 | |||
| Principal | ||||
| Long-term borrowings due within one year (a) (Note 4(30)) | 1,363,579,404 | 2,758,340,013 | ||
| Long-term payables due within one year (b) (Note 4(32)) | 244,488,837 | 333,082,890 | ||
| Debentures payable due within one year (c) (Note 4(31)) | 1,498,700,741 | 40,299,969 | ||
| Sub-total | 3,106,768,982 | 3,131,722,872 | ||
| Interest | ||||
| Long-term borrowings due within one year | 27,549,970 | 29,822,181 | ||
| Long-term payables due within one year | 566,666 | 354,166 | ||
| Debentures payable due within one year | 45,666,333 | 21,081,263 | ||
| Sub-total | 73,782,969 | 51,257,610 | ||
| 3,180,551,951 | 3,182,980,482 | |||
| (a) | Long-term borrowings due within one year | |||
| 31 December 2020 | 31 December 2019 | |||
| Principal | ||||
| Pledged loan (i) | 298,558,767 | 240,907,909 | ||
| Guaranteed loan (ii) | 1,400,000 | 1,511,827,500 | ||
| Credit loan | 1,063,620,637 | 1,005,604,604 | ||
| Sub-total | 1,363,579,404 | 2,758,340,013 | ||
| Interest | ||||
| Pledged loan | 5,273,499 | 6,096,475 | ||
| Guaranteed loan | 429,160 | 3,740,900 | ||
| Credit loan | 21,847,311 | 19,984,806 | ||
| Sub-total | 27,549,970 | 29,822,181 | ||
| 1,391,129,374 | 2,788,162,194 | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) |
| (28) | Current portion of non-current liabilities (Cont’d) |
| (a) | Long-term borrowings due within one year (Cont’d) |
| (i) | As at 31 December 2020, 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 2020 | 31 December 2019 | |||
| Yuejiang Power | 193,721,167 | 188,255,791 | ||
| Qujie Wind Power | 42,285,806 | - | ||
| Zhanjiang Wind Power | 28,200,000 | 22,860,000 | ||
| Lincang Energy | 20,000,000 | 15,000,000 | ||
| Leizhou Wind Power | 7,985,575 | 7,985,575 | ||
| Xuwen Wind Power | 6,366,219 | 6,806,543 | ||
| 298,558,767 | 240,907,909 | |||
| (ii) | As at 31 December 2020, Zhanjiang Wind Power provided maximum amount guarantee for Xuwen Wind Power’s long-term borrowings of RMB 1,400,000 (31 December 2019: RMB 11,827,500) due within one year. |
| (iii) | As at 31 December 2020, the annual interest rate of long-term borrowings due within one year ranged from 1.30% to 4.41% (31 December 2019: 1.30% to 5.00%). The borrowings will be due within 12 months. |
| (b) | Long-term payables due within one year |
| As at 31 December 2020, long-term payables due within one year were financing lease payable and payables for share repurchase. Net financing lease payable due within one year was RMB 154,488,837 (namely, the remaining net amount of the total amount of RMB 203,583,950 after deducting the unrecognised finance charge of RMB 49,095,113). As at 31 December 2019, long-term payables due within one year were the net financing lease payable of RMB 333,082,890 (namely, the remaining net amount of the total amount of RMB 373,512,869 after deducting the unrecognised finance charge of RMB 40,429,979). As at 31 December 2020, details of long-term payables due within one year were disclosed in Note 4(32). | |
| (c) | See details of debentures payable due within one year in Note 4(31). |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||||||||||||||||||
| (29) | Other current liabilities | |||||||||||||||||||
| 31 December 2020 | 31 December 2019 | |||||||||||||||||||
| Short-term debentures payable | 3,216,900,546 | 1,912,282,192 | ||||||||||||||||||
| Output VAT to be written off | 623,030 | - | ||||||||||||||||||
| 3,217,523,576 | 1,912,282,192 | |||||||||||||||||||
| Related information of short-term debentures payable is as follows: | ||||||||||||||||||||
| Face value | Issuance date | Maturity period | Issuance amount | 31 December 2019 | Issued in the current year | Interest at face value | Amortisation of discounts or premium | Repayments for the year | 31 December 2020 | |||||||||||
| Third batch of super short-term financing notes issued by Guangdong Electric Power Development Co., Ltd., 2019 | 900,000,000 | 14/08/2019 | 180 days | 900,000,000 | 908,987,671 | - | 2,963,149 | - | (911,950,820) | - | ||||||||||
| Fourth batch of super short-term financing notes issued by Guangdong Electric Power Development Co., Ltd., 2019 | 1,000,000,000 | 15/11/2019 | 180 days | 1,000,000,000 | 1,003,294,521 | - | 8,016,954 | - | (1,011,311,475) | - | ||||||||||
| First batch of super short-term financing notes issued by Guangdong Electric Power Development Co., Ltd., 2020 | 1,100,000,000 | 20/02/2020 | 180 days | 1,100,000,000 | - | 1,100,000,000 | 11,360,656 | - | (1,111,360,656) | - | ||||||||||
| Second batch of super short-term financing notes issued by Guangdong Electric Power Development Co., Ltd., 2020 | 1,600,000,000 | 10/08/2020 | 172 days | 1,600,000,000 | - | 1,600,000,000 | 11,440,000 | - | - | 1,611,440,000 | ||||||||||
| Third batch of super short-term financing notes issued by Guangdong Electric Power Development Co., Ltd., 2020 | 1,600,000,000 | 10/11/2020 | 178 days | 1,600,000,000 | - | 1,600,000,000 | 5,460,546 | - | - | 1,605,460,546 | ||||||||||
| 6,200,000,000 | 6,200,000,000 | 1,912,282,192 | 4,300,000,000 | 39,241,305 | - | (3,034,622,951) | 3,216,900,546 | |||||||||||||
| In 2020, the interest rate of super short-term financing notes issued by the Company was from 1.8% to 2.45% (2019: 2.30% to 3.60%). | ||||||||||||||||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||
| (30) | Long-term borrowings | |||
| 31 December 2020 | 31 December 2019 | |||
| Principal | ||||
| Pledged loan (a) | 4,193,207,913 | 4,231,292,593 | ||
| Guaranteed loan (b) | 77,500,000 | 1,557,285,000 | ||
| Credit loan | 16,091,427,059 | 13,556,865,800 | ||
| Sub-total | 20,362,134,972 | 19,345,443,393 | ||
| Interest | ||||
| Pledged loan | 5,273,499 | 6,096,475 | ||
| Guaranteed loan | 429,160 | 3,740,900 | ||
| Credit loan | 21,847,311 | 19,984,806 | ||
| Sub-total | 27,549,970 | 29,822,181 | ||
| 20,389,684,942 | 19,375,265,574 | |||
| Less: Long-term borrowings due within one year (Note 4(28)(a)) | ||||
| Principal | ||||
| Pledged loan | (298,558,767) | (240,907,909) | ||
| Guaranteed loan | (1,400,000) | (1,511,827,500) | ||
| Credit loan | (1,063,620,637) | (1,005,604,604) | ||
| Sub-total | (1,363,579,404) | (2,758,340,013) | ||
| Interest | ||||
| Pledged loan | (5,273,499) | (6,096,475) | ||
| Guaranteed loan | (429,160) | (3,740,900) | ||
| Credit loan | (21,847,311) | (19,984,806) | ||
| Sub-total | (27,549,970) | (29,822,181) | ||
| (1,391,129,374) | (2,788,162,194) | |||
| Total | 18,998,555,568 | 16,587,103,380 | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | ||||
| (30) | Long-term borrowings (Cont’d) | ||||
| (a) | Pledged loan | ||||
| As at 31 December 2020, the charge right for electricity and accounts receivable were treated as pledge for long-term pledged loan for the following subsidiaries: | |||||
| 31 December 2020 | 31 December 2019 | ||||
| Yuejiang Power | (i) | 1,840,351,082 | 1,976,685,804 | ||
| Qujie Wind Power | (ii) | 1,310,860,000 | 1,155,920,000 | ||
| Lincang Energy | (iii) | 661,000,000 | 676,000,000 | ||
| Leizhou Wind Power | (iv) | 224,052,692 | 232,038,267 | ||
| Zhanjiang Wind Power | (v) | 98,565,000 | 121,425,000 | ||
| Xuwen Wind Power | (vi) | 58,379,139 | 69,223,522 | ||
| 4,193,207,913 | 4,231,292,593 | ||||
| (i) | As at 31 December 2020, the Group’s subsidiary Yuejiang Power borrowed RMB 1,840,351,082 from bank consortium and the Industrial and Commercial Bank of China, secured by Yuejiang Power’s right to charge electricity. The maturity date is on 26 May 2030, and the annual interest rate is 3.85% (2019: 4.53%). The borrowings include long-term borrowings due within one year amounting to RMB 193,721,167 (2019: RMB 1,976,685,804, including long-term borrowings due within one year amounting to RMB 188,255,791). | ||||
| (ii) | As at 31 December 2020, for the construction of Zhanjiang Wailuo offshore wind power project, the Group’s subsidiary Qujie Wind Power borrowed RMB 1,310,860,000 (2019: RMB 1,155,920,000) from bank consortium and the Bank of China during operation, which was secured by Qujie Wind Power’s right to charge electricity. The maturity date is 27 December 2036 and the annual interest rate is from 4.15% to 4.26% (2019: 4.41% to 4.90%). The borrowings include long-term borrowings due within one year amounting to RMB 42,285,806 (2019: Nil). | ||||
| (iii) | In 2015, the Group’s subsidiary Lincang Energy obtained loans from bank consortium initiated by the Industrial and Commercial Bank of China. According to the loan contract, the loan, specifically for the construction of Dayakou Hydropower Station, was secured by the station’s right to charge electricity during operation, with the maturity date of 11 June 2031. As at 31 December 2020, the balance of the loan was RMB 661,000,000 (2019: RMB 676,000,000), including long-term borrowings due within one year amounting to RMB 20,000,000 (2019: RMB 15,000,000), with the interest rate of 4.26% (2019: 4.41%). |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) |
| (30) | Long-term borrowings (Cont’d) |
| (a) | Pledged loan (Cont’d) |
| (iv) | The Group’s subsidiary Leizhou Wind Power obtained loans from the Industrial and Commercial Bank of China, which were secured by Leizhou Wind Power’s right to charge electricity. As at 31 December 2020, the balance of pledged loan was RMB 224,052,692, with the maturity date of 29 April 2030 and the interest rate ranged from 4.26% to 4.90%, including long-term borrowings due within one year amounting to RMB 7,985,575 (2019: RMB 232,038,267, including long-term borrowings due within one year amounting to RMB 7,985,575, with the interest rate ranged from 4.41% to 4.90%). |
| (v) | As at 31 December 2020, the Group’s subsidiary Zhanjiang Wind Power borrowed RMB 98,565,000 from the Industrial and Commercial Bank of China, secured by Zhanjiang Wind Power’s right to charge electricity. The maturity date is on 7 May 2024, and the annual interest rate is 4.26% (2019: 4.41%). The borrowings include long-term borrowings due within one year amounting to RMB 28,200,000 (2019: RMB 121,425,000, including long-term borrowings due within one year amounting to RMB 22,860,000). |
| (vi) | 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, the Group’s subsidiary Zhanjiang Wind Power acquired an USD loan transferred from the Loan Protocol under “Chinese Climate Change Framework” between China and European investment banks. The loan has been used on Xuwen Yongshi Wind Power project and is secured by Xuwen Wind Power’s right for revenue of electricity charge. As at 31 December 2020, the balance of the loan above totalled to USD 8,947,131 (equivalent to RMB 58,379,139) (2019: USD 9,922,812 (equivalent to RMB 69,223,522)), among which balance of the long-term borrowings due within one year amounted to USD 975,681 (equivalent to RMB 6,366,219) (2019: USD 975,681 (equivalent to RMB 6,806,543)). The maturity date of the loan is 3 March 2030 with the annual interest rate from 1.99%% to 3.21% (2019: 3.13% to 3.76%). Meanwhile, the loans are guaranteed by the Company. |
| (b) | Guaranteed loan |
| As at 31 December 2020, the balance of the Group’s subsidiary Xuwen Wind Power’s long-term borrowings from Energy Group Finance Company was RMB 8,500,000, including long-term borrowings due within one year of RMB 1,400,000, which was secured by Zhanjiang Wind Power (2019: RMB 23,900,000, including long-term borrowings due within one year amounting to RMB 1,400,000). The annual interest rate of the loan is 4.26% (2019: 4.41%), and the maturity date is 28 November 2031. | |
| As at 31 December 2020, the balance of the Group’s subsidiary Qujie Wind Power’s long-term borrowings from China Clean Development Mechanism Fund was RMB 69,000,000 (2019: Nil), which was guaranteed by Energy Group Finance Company. The annual interest rate of the loan is 3.46% (2019: Nil), and the maturity date is 7 May 2025. | |
| (c) | As at 31 December 2020, the annual interest rate of long-term borrowings ranged from 1.30% to 4.41% (31 December 2019: 1.30% to 4.94%). |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) |
| (31) | Debentures payable |
| 31 December 2019 | Issued in the current year | Amortisation of discounts or premium | Transferred to current portion of non-current liabilities | 31 December 2020 | ||||||
| 16 Pinghai Bond 01 (a) | 697,774,466 | - | 1,268,942 | (699,043,408) | - | |||||
| First batch of middle-term notes issued by Guangdong Electric Power Development Co., Ltd., 2018 (b) | 798,857,333 | - | 800,000 | (799,657,333) | - | |||||
| 20 Yudean Bond 01 (c) | - | 1,500,000,000 | (457,089) | - | 1,499,542,911 | |||||
| 1,496,631,799 | 1,500,000,000 | 1,611,853 | (1,498,700,741) | 1,499,542,911 |
| (a) | As approved by CSRC Circular SFC License [2016] No. 1864, the Group’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 Group 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 of 3.10% starting 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 Pinghai Power in whole or in part based on the face value on the interest payment date in the third interest-bearing year of the bond and Pinghai Power is entitled to adjust the coupon rate in the third interest-bearing year of the bond. As at the third interest-bearing date, Pinghai Power had repaid zero, and the rest would be repaid on the maturity date, 25 September 2021. Therefore, Pinghai Power transferred the balance of current portion of non-current liabilities to the debentures payable on 31 December 2019. The annual interest rate of the loan was adjusted from 3.10% to 4.15% starting from 26 September 2019 and the loan should be payable annually on simple interest. As at 31 December 2020, Pinghai Power reclassified debentures payable to current portion of non-current liabilities. Such debentures payable were measured at amortised cost using effective interest method, with the effective interest rate of 4.23% (31 December 2019: 4.23%). |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||
| (31) | Debentures payable (Cont’d) | |||
| (b) | The Company’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 expense of RMB 2,256,000, which should be paid in three years. As at 31 December 2020, the issue expense of RMB 2,256,000 was paid. The loan is subject to an annual interest rate of 4.19% starting from 27 August 2018 and should be payable annually on simple interest. As at 31 December 2020, debentures payable were measured at amortised cost using effective interest method, with the effective interest rate of 4.29%. | |||
| (c) | As approved by CSRC Circular SFC License [2019] No. 2477, the Company issued 5-year book-entry corporate debentures in real-name system with face value of RMB 1,500,000,000 (“20 Yuedian Bond 01”) to the public on 29 April 2020. The Company altogether raised RMB 1,499,471,698 after deducting an issue expense of RMB 528,302. The loan is subject to an annual interest rate of 2.45% starting from 29 April 2020 and should be payable annually on simple interest. As at 31 December 2020, debentures payable were measured at amortised cost using effective interest method, with the effective interest rate of 2.46%. | |||
| (32) | Long-term payables | |||
| 31 December 2020 | 31 December 2019 | |||
| Long-term payables (a) | 3,147,011,127 | 2,414,256,713 | ||
| Payables for specific projects (b) | 24,960,000 | 71,089,532 | ||
| 3,171,971,127 | 2,485,346,245 | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||
| (32) | Long-term payables (Cont’d) | |||
| (a) | Long-term payables | |||
| 31 December 2020 | 31 December 2019 | |||
| Finance lease payable (i) | 3,301,499,964 | 2,657,339,603 | ||
| Payables for share repurchase (ii) | 90,000,000 | 90,000,000 | ||
| Less: Long-term payables due within one year | (244,488,837) | (333,082,890) | ||
| 3,147,011,127 | 2,414,256,713 | |||
| (i) | The Group’s minimum finance lease payments are as follows: | |||
| Minimum finance lease payments | 31 December 2020 | 31 December 2019 | ||
| Within 1 year (inclusive) | 268,337,930 | 427,932,313 | ||
| 1 to 2 years (inclusive) | 614,912,274 | 239,714,412 | ||
| 2 to 3 years (inclusive) | 589,800,822 | 557,701,919 | ||
| Over 3 years | 2,723,041,450 | 1,971,377,855 | ||
| Sub-total | 4,196,092,476 | 3,196,726,499 | ||
| Less: Unrecognised finance charge | (894,592,512) | (539,386,896) | ||
| 3,301,499,964 | 2,657,339,603 | |||
| The above finance lease payable due within one year less unrecognised finance charge is listed in Note 4(28)(b). | ||||
| (ii) | In 2016, Guangdong Utrust Equity Investment Co., Ltd. (“Utrust Investment”) injected capital of RMB 10,000,000 to the Group’s subsidiary Leizhou Wind Power and capital of RMB 50,000,000 to the Group’s subsidiary Dianbai Wind Power, and obtained 30% equity of the Group’s subsidiary Xuwen Wind Power at a consideration of RMB 30,000,000. According to the agreement, the Group shall repurchase the equity held by Utrust Investment after the five-year equity participation (namely, in 2021), and the price of repurchase shall equal to Utrust Investment’s actual amount of contribution of RMB 90,000,000. The Group should pay equity premium to Utrust Investment at fixed proportion annually. As at 31 December 2020, share repurchases payable to Utrust Investment by the Group were reclassified to current portion of non-current liabilities. | |||
| (b) | Payables for specific projects |
| Opening balance | Decrease in the current year | Ending 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) | 31,001,152 | (31,001,152) | - | ||
| Liquidation balance of enterprises with diversified businesses (iii) | 15,128,380 | (15,128,380) | - | ||
| 71,089,532 | (46,129,532) | 24,960,000 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) |
| (32) | 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 to Lincang Energy, a subsidiary of the Group. According to the document issued by Yunnan Water Conservancy & Hydropower Investment Co., Ltd. (Yun Shui Tou Fa [2015] No. 16), such payables for specific projects were subject to an interest rate of 4% 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 the agreement, including RMB 32,205,311 from the Department of Finance of Guangdong Province, RMB 38,647,834 from GEGC and payables of RMB 4,168,733 from Shaoguan Electric Power Plant. According to the document issued by the 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 in employees’ family area charged by provincial enterprises. As at 31 December 2020, such renovation project was partly completed, and financial fund was specially audited. According to Administrative Measures for the Segregation and Transfer of “Supply of Water, Electricity and Heat and Property Management” in the Employees Family Area of Provincial State-owned Enterprises to Provincial Financial Subsidy Fund (Yue Cai Gong [2017] No. 222) and Administrative Measures for Subsidy Fund of GEGC, “supply of water, electricity and heat and property management” expenses within the subsidy scope shall be covered by financial subsidy fund, subsidy fund of GEGC and self-raised fund at the proportion of 50%, 30% and 20% respectively, and expenses not within the subsidy scope shall be borne by the Company. In 2020, the Group returned the surplus from special funds for “Supply of Water, Electricity and Heat and Property Management” to the Department of Finance of Guangdong Province and GEGC. |
| (iii) | In 2019, the non-related electric power enterprises with diversified businesses transferred liquidation balance of RMB 15,128,380 to Yuejiang Power, a subsidiary of the Group, which was specifically invested in its employees’ relocation, training and pension funds. In 2020, Yuejiang Power made specific plans for employees’ relocation, training and pension funds. Management believed that there was no need for additional expenses in future years, so the liquidation balance of RMB 15,128,380 received from diversified businesses in 2019 was transferred to non-operating income in the current year. |
| (33) | Deferred income |
| 31 December 2019 | Increase in the current year | Decrease in the current year | 31 December 2020 | |||||
| Government grants (a) | 139,256,513 | 14,995,600 | (19,604,523) | 134,647,590 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) |
| (33) | Deferred income (Cont’d) |
| (a) | Government grants |
| Government grants | 31 December 2019 | Increase in the current year | Recognised in other income in the current year | 31 December 2020 | Assets related/ Income related | |||||
| Compensation for relocation and renovation of Shajiao A Zhenkou pump house | 22,245,433 | - | (5,561,358) | 16,684,075 | Assets related | |||||
| Special funds for 1-3# generators’ desulfurisation project | 17,714,334 | - | (1,303,568) | 16,410,766 | Assets related | |||||
| Energy saving grants | 15,270,657 | - | (1,479,870) | 13,790,787 | Assets related | |||||
| Tax refund for PRC-made equipment | 12,629,142 | - | (2,296,208) | 10,332,934 | Assets related | |||||
| Comprehensive technology upgrading for the energy saving of 1&2# generator units turbine by Zhongyue Energy | 8,461,538 | - | (769,231) | 7,692,307 | Assets related | |||||
| Development and competitiveness funds from SASAC | 7,333,333 | - | (666,667) | 6,666,666 | Assets related | |||||
| Second incentives for comprehensive and typical demonstration projects under financial policies of energy saving | 7,200,000 | - | (450,000) | 6,750,000 | Assets related | |||||
| Incentives for energy efficiency of power plant by Dongguan | 6,590,750 | - | (1,647,687) | 4,943,063 | Assets related | |||||
| Post rewarding subsidies for ultra-low emissions of 1&2# generators | 6,279,149 | - | (633,192) | 5,645,957 | Assets related | |||||
| Incentives for energy efficiency of power plant by Zhongyue Energy | 4,436,729 | - | (277,296) | 4,159,433 | Assets related | |||||
| Post rewarding subsidies for ultra-low emissions of designated account of special fund in Maonan District of Maoming in 2018 | 3,727,308 | - | (338,846) | 3,388,462 | Assets related | |||||
| Incentives for energy efficiency of power plant by Zhanjiang | 3,062,182 | - | (306,218) | 2,755,964 | Assets related | |||||
| Dianbai Reshui wind power plant project | 3,000,000 | - | - | 3,000,000 | Assets related | |||||
| Expansion on flow reconstruction project | 2,900,038 | - | (725,010) | 2,175,028 | Assets related | |||||
| Shajiao A - 2016 central finance energy saving funds | 2,822,499 | - | (705,624) | 2,116,875 | Assets related | |||||
| Government subsidies from the financial treasury payment centre of Qujiang District, Shaoguan | 2,651,208 | - | (276,146) | 2,375,062 | Assets related |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| Special prize funds of recycle economy and energy saving by Shenzhen | 2,218,155 | - | (213,334) | 2,004,821 | Assets related | |||||
| Energy saving funds | 2,185,045 | - | (546,260) | 1,638,785 | Assets related | |||||
| Provincial special funds for enterprises’ technology improvement | - | 8,735,600 | (60,664) | 8,674,936 | Assets related | |||||
| Special fund for the project of no wastewater discharge | - | 3,710,000 | - | 3,710,000 | Assets related | |||||
| Development and application project for the operation and maintenance of offshore wind power | - | 2,550,000 | - | 2,550,000 | Assets related | |||||
| Others | 8,529,013 | - | (1,347,344) | 7,181,669 | Assets related | |||||
| 139,256,513 | 14,995,600 | (19,604,523) | 134,647,590 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||
| (34) | Long-term employee benefits payable | |||
| 31 December 2020 | 31 December 2019 | |||
| Early retirement benefits payable (a) | 167,123,612 | 131,071,031 | ||
| Defined benefit plans payable (b) | 35,749,463 | - | ||
| Other long-term employee benefits payable (c) | 63,920,439 | 42,309,058 | ||
| Less: Payable within one year | (48,249,771) | (38,391,229) | ||
| 218,543,743 | 134,988,860 | |||
| The employee benefits payable within one year are included in the employee benefits payable (Note 4(25)). | ||||
| (a) | According to the Group’s regulations for early retirement of employees, the employees whose early retirement requests are approved by the Group could have 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 2020, 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 of 3.97% (2019: 4.27%) of the same period. As at 31 December 2020, the Group accrued termination benefits of RMB 167,123,612 (31 December 2019: RMB 131,071,031) and recognised it in long-term employee benefits payable. The actual termination benefits due within one year totalling RMB 32,292,293 (31 December 2019: RMB 29,071,494) were recognised in employee benefits payable. | |||
| (b) | In accordance with the FAQ on Social Management of Retired Employees in State-owned Enterprises (Guo Zi Ting Fa Gai Ge [2020 No. 36) issued by the State-owned Assets Supervision and Administration Commission of the State Council, the Group made a one-time provision for the existing retirement pensions paid to retired employees, and the retirement pensions are paid on a monthly basis. The Group’s retirement pensions mainly include retirement subsidies, military transfer subsidies and living allowances for retired primary and secondary school teachers. The expected present values of cash flows that shall be paid for retirement pensions during the expected remaining life of the retired employees are recognised as long-term employee benefits payable and recorded in profit or loss for the current period. As at 31 December 2020, the Group calculated the expected expense for each year up to the expected remaining life based on certain proportion of the retired employee’s retirement pensions of the year, and estimated the present value of cash expenses for future retirement pensions by treasury bond interest rate of 3.97% of the same period. As at 31 December 2020, the Group accrued defined benefit plans of RMB 35,749,463 and recognised it in long-term employee benefits payable. The actual termination benefits due within one year totalling RMB 7,742,552 are recognised in employee benefits payable. | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||
| (34) | Long-term employee benefits payable (Cont'd) | |||
| (b) | (Cont’d) | |||
| As at 31 December 2020, significant actuarial assumptions for the determination of the present value of the obligations of the defined benefit plan were as follows: | ||||
| 31 December 2020 | ||||
| Discount rates | 3.97% | |||
| Growth rates on military transfer subsidies | 2% to 12% | |||
| Growth rates on retirement allowances | 0% | |||
| Growth rates on living allowances for retired primary and secondary school teachers | 0% | |||
| Assumptions regarding expected remaining life are determined in terms of published statistical data and records of each region on an actuarial basis. | |
| The sensitivity analysis below has been carried out based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while all other assumptions are held constant. | |
| If the discount rate decreases by 0.5%, the present value of the obligations of the defined benefit plan will increase by RMB 1,893,973. If the life expectancy increases 0.5%, the present value of the obligations of the defined benefit plan will increase by RMB 2,654,517. | |
| The sensitivity analysis presented above may not reflect the actual changes in the obligations of the defined benefit plan because it is unlikely that changes in one assumption would occur in isolation of one another as some of the assumptions may be correlated. |
| (c) | According to relevant regulations on social medical insurance in places where the Company and some subsidiaries of 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 current period. As at 31 December 2020, the balance of the Group’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 retired employee’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 of 3.97% (2019: 4.27%) as discount rate. As at 31 December 2020, the Group accrued other long-term employee benefits payable of RMB 63,920,439 (31 December 2019: RMB 42,309,058), with actual payment of other long-term employee benefits payable due within one year of RMB 8,214,926 (31 December 2019: RMB 9,319,735) recognised in employee benefits payable. |
| (d) | Long-term employee benefits payable included in profit or loss for the current period in 2020 were as follows: | |||
| 2020 | 2019 | |||
| General and administrative expenses | 140,104,439 | 59,459,281 | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||
| (35) | Other non-current liabilities | |||
| 31 December 2020 | 31 December 2019 | |||
| Capital injection (a) | 200,000,000 | 216,405,569 | ||
| Housing revolving fund | 970,029 | - | ||
| 200,970,029 | 216,405,569 | |||
| (a) | In 2017, the Group’s subsidiary Yuejiang Power received a capital injection of RMB 16,405,569 from minority shareholders. In 2020, Yuejiang Power decided to use the capital injection from shareholders in prior years to increase the share capital. As at the issuance date of the report, relevant equity transactions and the registration for changes of business license had been completed. Therefore, such capital injection from minority shareholders originally recorded in other non-current liabilities was recognised as minority interests. | |||
| In 2018, the Group’s subsidiaries 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 2020, such capital injection was recorded in other non-current liabilities as the relevant equity transactions and the registration for changes of business license had not been completed. | ||||
| In 2019, the Group’s subsidiary Zhuhai Wind Power received a capital injection of RMB 50,000,000 from GEGC. The capital will be used for Zhuhai Jinwan Electric offshore wind power project. As at 31 December 2020, such capital injection was recorded in other non-current liabilities as the relevant equity transactions and the registration for changes of business license had not been completed. | ||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||||||||||||
| (36) | Share capital | |||||||||||||
| 31 December 2019 | Movements in the current year | 31 December 2020 | ||||||||||||
| Issuance of new shares | Bonus shares | Housing fund 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 | 5,659 | - | - | - | - | - | 5,659 | |||||||
| Shares not subject to trading restriction | ||||||||||||||
| - RMB-dominated ordinary shares | 2,553,907,040 | - | - | - | - | - | 2,553,907,040 | |||||||
| - Domestically-listed foreign shares | 798,408,000 | - | - | - | - | - | 798,408,000 | |||||||
| 5,250,283,986 | - | - | - | - | - | 5,250,283,986 | ||||||||
| 31 December 2018 | Movements in the current year | 31 December 2019 | ||||||||||||
| Issuance of new shares | Bonus shares | Housing fund 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 | 5,659 | - | - | - | - | - | 5,659 | |||||||
| Shares not subject to trading restriction | ||||||||||||||
| - RMB-dominated ordinary shares | 2,553,907,040 | - | - | - | - | - | 2,553,907,040 | |||||||
| - Domestically-listed foreign shares | 798,408,000 | - | - | - | - | - | 798,408,000 | |||||||
| 5,250,283,986 | - | - | - | - | - | 5,250,283,986 | ||||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||||||
| (37) | Capital surplus | |||||||
| 31 December 2019 | Increase in the current year | Decrease in the current year | 31 December 2020 | |||||
| Share capital premium | 4,543,959,053 | - | - | 4,543,959,053 | ||||
| Revaluation reserve | 119,593,718 | - | - | 119,593,718 | ||||
| Investment from GEGC | 395,000,000 | - | - | 395,000,000 | ||||
| Share of interests in the investee in proportion to the shareholding (a) | 14,971,484 | - | (194,654,260) | (179,682,776) | ||||
| Transfer of capital surplus recognised under the previous accounting system | 20,474,592 | - | - | 20,474,592 | ||||
| Others | 2,919,327 | - | - | 2,919,327 | ||||
| 5,096,918,174 | - | (194,654,260) | 4,902,263,914 | |||||
| 31 December 2018 | Increase in the current year | Decrease in the current year | 31 December 2019 | |||||
| Share capital premium | 4,544,074,067 | - | (115,014) | 4,543,959,053 | ||||
| Revaluation reserve | 119,593,718 | - | - | 119,593,718 | ||||
| Investment from GEGC | 395,000,000 | - | - | 395,000,000 | ||||
| Share of interests in the investee in proportion to the shareholding | 20,785,182 | - | (5,813,698) | 14,971,484 | ||||
| Transfer of capital surplus recognised under the previous accounting system | 20,474,592 | - | - | 20,474,592 | ||||
| Others | 2,919,327 | - | - | 2,919,327 | ||||
| 5,102,846,886 | - | (5,928,712) | 5,096,918,174 | |||||
| (a) | In 2020, capital surplus of associates calculated based on proportion of equity acquired decreased by RMB 194,654,260 (Note 4(10)(a) and Note 4(10)(b)). | |||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) |
| (38) | Other comprehensive income |
| Other comprehensive income in the balance sheet | Other comprehensive income in the income statement for the year ended 31 December 2020 | |||||||||
| 31 December 2019 | Attributable to the parent company after tax | 31 December 2020 | Accruals before income tax | Less: Amounts previously recognised in other comprehensive income transferred out in the current year | Less: Income tax expenses | Attributable to the parent company after tax | Attributable to minority shareholders after tax | |||
| Other comprehensive income items which will not be reclassified to profit or loss | ||||||||||
| Other comprehensive income that will not be reclassified to profit or loss | 23,863,586 | 18,578,841 | 42,442,427 | 18,578,841 | - | - | 18,578,841 | - | ||
| Changes in fair value of investments in other equity instruments | 1,652,058,990 | 251,985,062 | 1,904,044,052 | 335,980,082 | - | (83,995,020) | 251,985,062 | - | ||
| Other comprehensive income items which can be reclassified subsequently to profit or loss | ||||||||||
| Other comprehensive income that can be subsequently transferred to profit or loss under the equity method | 220,468 | (401,352) | (180,884) | (401,352) | - | - | (401,352) | - | ||
| 1,676,143,044 | 270,162,551 | 1,946,305,595 | 354,157,571 | - | (83,995,020) | 270,162,551 | - | |||
| Other comprehensive income in the balance sheet | Other comprehensive income in the income statement for the year ended 31 December 2020 | |||||||||||
| 31 December 2018 | Changes in accounting policies | 1 January 2019 | Attributable to the parent company after tax | 31 December 2019 | Accruals before income tax | Less: Amounts previously recognised in other comprehensive income transferred out in the current year | Less: Income tax expenses | Attributable to the parent company after tax | Attributable to minority shareholders after tax | |||
| Other comprehensive income items which will not be reclassified to profit or loss | ||||||||||||
| Other comprehensive income that will not be reclassified to profit or loss | 21,753,244 | — | 21,753,244 | 2,110,342 | 23,863,586 | 2,110,342 | - | - | 2,110,342 | - | ||
| Changes in fair value of investments in other equity instruments | — | 528,256,889 | 528,256,889 | 1,123,802,101 | 1,652,058,990 | 1,498,402,802 | - | (374,600,701) | 1,123,802,101 | - | ||
| Other comprehensive income items which can be reclassified subsequently to profit or loss | ||||||||||||
| Gains or losses arising from changes in fair value of available-for-sale financial assets | 528,256,889 | (528,256,889) | — | - | - | - | - | - | - | - | ||
| Other comprehensive income that can be subsequently transferred to profit or loss under the equity method | - | — | - | 220,468 | 220,468 | 220,468 | - | - | 220,468 | - | ||
| 550,010,133 | - | 550,010,133 | 1,126,132,911 | 1,676,143,044 | 1,500,733,612 | - | (374,600,701) | 1,126,132,911 | - | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | ||||||||||
| (39) | Surplus reserve | ||||||||||
| 31 December 2019 | Increase in the current year | Decrease in the current year | 31 December 2020 | ||||||||
| Statutory surplus reserve | 2,828,966,001 | 77,026,584 | - | 2,905,992,585 | |||||||
| Discretionary surplus reserve | 5,416,801,592 | 192,566,461 | - | 5,609,368,053 | |||||||
| 8,245,767,593 | 269,593,045 | - | 8,515,360,638 | ||||||||
| 31 December 2018 | Increase in the current year | Decrease in the current year | 31 December 2019 | ||||||||
| Statutory surplus reserve | 2,711,362,444 | 117,603,557 | - | 2,828,966,001 | |||||||
| Discretionary surplus reserve | 5,122,792,699 | 294,008,893 | - | 5,416,801,592 | |||||||
| 7,834,155,143 | 411,612,450 | - | 8,245,767,593 | ||||||||
| In accordance with the Company Law of the People’s Republic of China and the Company’s Articles of Association, the Company should appropriate 10% 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 than 50% of the registered capital. The Company appropriates for the discretionary surplus reserve after the shareholders’ 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 the shareholders’ meeting dated 20 May 2020, the Company appropriated 10% of net profit for 2019, amounting to RMB 77,026,584 (2019: 10% of net profit for 2018, amounting to RMB 117,603,557) to the statutory surplus reserve. Meanwhile, the Company appropriated 25% of net profit for 2019, amounting to RMB 192,566,461 (2019: 25% of net profit for 2018, amounting to RMB 294,008,893) to the discretionary surplus reserve. | |||||||||||
| (40) | Undistributed profits | ||||||||||
| 2020 | 2019 | ||||||||||
| Undistributed profits at the beginning of the year | 5,909,128,280 | 5,490,006,140 | |||||||||
| Add: Net profit attributable to equity owners of the Company | 1,746,280,132 | 1,146,767,033 | |||||||||
| Less: Appropriation to statutory surplus reserve (Note 4(39)) | (77,026,584) | (117,603,557) | |||||||||
| Appropriation to discretionary surplus reserve (Note 4(39)) | (192,566,461) | (294,008,893) | |||||||||
| Dividends payable on ordinary shares (a) | (630,034,078) | (315,017,039) | |||||||||
| Others | - | (1,015,404) | |||||||||
| Undistributed profits at the end of the year | 6,755,781,289 | 5,909,128,280 | |||||||||
| (a) | In accordance with the resolution at the shareholders’ meeting dated 20 May 2020, the Company proposed a cash dividend to the shareholders at RMB 1.2 per 10 shares, amounting to RMB 630,034,078 calculated by 5,250,283,986 issued shares. | ||||||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | ||||||||||
| (40) | Undistributed profits (Cont’d) | ||||||||||
| (b) | Undistributed profits at the end of the year | ||||||||||
| The surplus reserve attributable to the parent company appropriated by subsidiaries of the Group this year was RMB 193,043,043 (2019: RMB 144,642,230). | |||||||||||
| As at 31 December 2020, the undistributed profits attributable to the parent company included an appropriation of RMB 2,656,321,994 (31 December 2019: RMB 2,463,278,951) to surplus reserve made by the Company’s subsidiaries. | |||||||||||
| (41) | Revenue and cost of sales | ||||||||||
| 2020 | 2019 | ||||||||||
| Revenue from main operations | 27,882,220,303 | 29,018,275,346 | |||||||||
| Revenue from other operations | 446,845,088 | 341,879,804 | |||||||||
| 28,329,065,391 | 29,360,155,150 | ||||||||||
| 2020 | 2019 | ||||||||||
| Cost of sales from main operations | 22,449,750,105 | 24,468,499,397 | |||||||||
| Cost of sales from other operations | 22,526,396 | 12,204,475 | |||||||||
| 22,472,276,501 | 24,480,703,872 | ||||||||||
| (a) | Revenue and cost of sales from main operations | ||||||||||
| 2020 | 2019 | ||||||||||
| Revenue from main operations | Cost of sales from main operations | Revenue from main operations | Cost of sales from main operations | ||||||||
| Revenue from sales of electricity | 27,651,253,496 | 22,282,338,006 | 28,811,365,634 | 24,303,147,059 | |||||||
| Revenue from steam | 128,940,548 | 81,308,257 | 137,136,069 | 100,553,481 | |||||||
| Rendering of services | 102,026,259 | 86,103,842 | 69,773,643 | 64,798,857 | |||||||
| 27,882,220,303 | 22,449,750,105 | 29,018,275,346 | 24,468,499,397 | ||||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||||||
| (41) | Revenue and cost of sales (Cont’d) | |||||||
| (b) | Revenue and cost of sales from other operations | |||||||
| 2020 | 2019 | |||||||
| Revenue from other operations | Cost of sales from other operations | Revenue from other operations | Cost of sales from other operations | |||||
| Revenue from integrated utilisation of coal ash | 363,312,318 | 4,547,044 | 270,692,961 | 1,123,900 | ||||
| Rental income | 26,513,095 | 7,863,170 | 25,092,388 | 3,910,335 | ||||
| Revenue from sales of materials | 2,283,546 | 7,866,528 | 2,246,472 | 2,455,349 | ||||
| Others | 54,736,129 | 2,249,654 | 43,847,983 | 4,714,891 | ||||
| 446,845,088 | 22,526,396 | 341,879,804 | 12,204,475 | |||||
| (i) | Due to the impact of COVID-19, the Group exempted the lessee from paying the rent of RMB 612,511 for the second quarter of 2020, and the Group has deducted the above rental waivers against the rental income for the current period. | |||||||
| Information for revenue, cost of sales and profit from main operations is included in segment reporting. | ||||||||
| (c) | The Group's revenue in 2020 was broken down as follows: | |||||||
| 2020 | ||||||
| Sales of electricity, steam and coal ash | Services | Rent | Others | Total | ||
| Revenue from main operations | ||||||
| Including: Recognised at point | 27,780,194,044 | 2,513,942 | - | - | 27,782,707,986 | |
| Recognised over period | - | 99,512,317 | - | - | 99,512,317 | |
| Revenue from other operations | ||||||
| Including: Recognised at point | 363,312,318 | - | - | 49,344,627 | 412,656,945 | |
| Recognised over period | - | - | 26,513,095 | 7,675,048 | 34,188,143 | |
| 28,143,506,362 | 102,026,259 | 26,513,095 | 57,019,675 | 28,329,065,391 | ||
| As at 31 December 2020, the amount of revenue corresponding to the performance obligation of the Group that had been contracted but not yet performed or not fulfilled was RMB 5,718,411. The Group expected that the revenue amounting to RMB 5,718,411 would be recognised in 2021. | |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||||
| (42) | Taxes and surcharges | |||||
| 2020 | 2019 | Tax base | ||||
| Real estate tax | 75,933,259 | 74,173,022 | Note 3 | |||
| City maintenance and construction tax | 68,515,974 | 69,304,761 | Note 3 | |||
| Educational surcharge | 53,165,549 | 53,642,928 | Note 3 | |||
| Land use tax | 22,531,130 | 22,581,711 | ||||
| Stamp tax | 19,545,498 | 16,759,160 | ||||
| Environmental protection tax | 13,566,142 | 13,045,249 | Note 3 | |||
| Others | 327,833 | 214,930 | ||||
| 253,585,385 | 249,721,761 | |||||
| (43) | Selling and distribution expenses | |||
| 2020 | 2019 | |||
| Employee benefits | 33,743,494 | 30,147,630 | ||
| Labour insurance | 4,128,202 | 6,141,152 | ||
| Entertainment expenses | 2,607,534 | 2,242,376 | ||
| Travelling expense | 1,180,807 | 1,532,592 | ||
| Rental expenses | 1,359,093 | 700,908 | ||
| Depreciation expenses (Note 4(13)(a)(i)) | 682,154 | 434,425 | ||
| Others | 5,513,230 | 2,589,679 | ||
| 49,214,514 | 43,788,762 | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||
| (44) | General and administrative expenses | |||
| 2020 | 2019 | |||
| Employee benefits | 429,078,411 | 318,985,080 | ||
| Amortisation of intangible assets (Note 4(15)(a)) | 59,013,289 | 52,313,721 | ||
| Depreciation expenses (Note 4(12)(a) and (13)(a)(i)) | 50,851,535 | 50,801,562 | ||
| Labour insurance | 46,337,902 | 79,937,050 | ||
| Fire safety expenses | 42,632,745 | 44,166,755 | ||
| Property management expenses | 33,135,162 | 29,057,707 | ||
| Agency fee | 29,785,038 | 19,084,853 | ||
| Office expenses | 27,242,206 | 23,737,171 | ||
| Rental expenses | 15,011,259 | 13,505,144 | ||
| Maintenance cost | 10,392,331 | 12,756,523 | ||
| Afforestation fee | 9,276,335 | 8,831,336 | ||
| Traffic expenses | 8,090,054 | 7,893,793 | ||
| Travelling expense | 5,427,018 | 7,307,843 | ||
| Labour costs | 6,363,138 | 5,426,711 | ||
| Entertainment expenses | 4,380,801 | 4,009,303 | ||
| Insurance expenses | 4,293,685 | 3,316,306 | ||
| Expenses on board meetings | 729,481 | 533,663 | ||
| Production preparation cost | - | 150,664,439 | ||
| Sewage charges | - | 129,605 | ||
| Others | 53,887,005 | 42,182,303 | ||
| 835,927,395 | 874,640,868 | |||
| (45) | Research and development expenses | |||
| 2020 | 2019 | |||
| Employee benefits | 126,089,196 | - | ||
| Material expenses | 119,208,245 | - | ||
| Outsourced research and development expenses | 14,701,916 | 8,549,423 | ||
| Depreciation and amortisation expenses | 7,831,697 | - | ||
| Others | 6,748,662 | 1,154,179 | ||
| 274,579,716 | 9,703,602 | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||
| (46) | Financial expenses | |||
| 2020 | 2019 | |||
| Interest costs | 1,395,702,315 | 1,410,457,651 | ||
| Less: Capitalised interest | (284,201,367) | (179,819,947) | ||
| Sub-total of interest expenses | 1,111,500,948 | 1,230,637,704 | ||
| Amortisation of unrecognised finance charge | 72,748,409 | 57,321,674 | ||
| Amortisation of discounts or premium of debentures payable | 2,146,686 | 1,588,413 | ||
| Less: Interest income | (76,249,292) | (66,836,652) | ||
| Exchange (gains)/losses - net | (4,639,497) | 1,353,572 | ||
| Bank charges and others | 3,014,810 | 6,251,130 | ||
| 1,108,522,064 | 1,230,315,841 | |||
| (47) | Expenses by nature | |||
| The cost of sales, selling and distribution expenses, general and administrative expenses and research and development expenses in the income statement are listed as follows by nature: | ||||
| 2020 | 2019 | |||
| Consumed fuel, low value consumables, etc. | 16,398,401,070 | 17,891,273,988 | ||
| Depreciation and amortisation expenses | 3,419,945,900 | 3,783,767,872 | ||
| Employee benefits | 1,947,050,790 | 1,886,271,386 | ||
| Repair charges | 1,013,009,894 | 1,006,918,706 | ||
| Electricity transaction expenses and pricing adjustment settlement fee | 118,013,556 | 45,683,532 | ||
| Insurance expenses | 116,651,499 | 103,594,103 | ||
| Outsourcing fees for maintenance projects | 78,046,018 | 59,053,078 | ||
| Fire safety expenses | 51,886,907 | 48,396,661 | ||
| Sewage and sanitary charges | 34,478,326 | 61,671,728 | ||
| Property management expenses | 33,634,676 | 33,041,303 | ||
| Traffic expenses | 26,820,001 | 25,677,325 | ||
| Tug service fees | 25,174,339 | 11,495,094 | ||
| Rental expenses | 23,730,021 | 21,478,872 | ||
| Office expenses | 30,692,829 | 26,894,609 | ||
| Management fees for frequency modulation and energy storage | 12,561,832 | - | ||
| Production preparation cost | - | 150,664,439 | ||
| Others | 301,900,468 | 252,954,408 | ||
| 23,631,998,126 | 25,408,837,104 | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||
| (48) | Asset impairment losses | |||
| 2020 | 2019 | |||
| Impairment losses on fixed assets (Note 4(13)(a)(vi)) | 391,721,793 | 54,133,177 | ||
| Impairment losses on construction in progress (Note 4(14)(a)(ii)) | 81,835,540 | 35,211,238 | ||
| Losses on decline in the value of inventories (Note 4(5)(b)) | 13,985,244 | 530,152 | ||
| Impairment losses on long-term equity investments (Note 4(10)(b)) | - | 71,317,168 | ||
| Impairment losses on construction materials (Note 4(14)(b)) | - | 729,603 | ||
| Reversal of impairment of advances to suppliers (Note 4(3)(b)) | - | (190,000) | ||
| 487,542,577 | 161,731,338 | |||
| (49) | Losses on/(Reversal of) credit impairment losses | |||
| 2020 | 2019 | |||
| Losses on bad debts of other receivables (Note 4(4)(b)) | 250,238 | 2,301,051 | ||
| Losses on/(Reversal of) bad debts of accounts receivable (Note 4(2)(c)) | 37,906 | (2,288) | ||
| Impairment losses on contract assets | 12,512 | — | ||
| Recovery of written off other receivables | - | (48,647,647) | ||
| 300,656 | (46,348,884) | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | ||||||
| (50) | Other income | ||||||
| 2020 | 2019 | Assets related/ Income related | |||||
| Revenue from VAT refund upon collection | 9,240,948 | 8,787,584 | Income related | ||||
| Compensation for relocation and renovation of Shajiao A Zhenkou pump house | 5,561,358 | 5,561,358 | Assets related | ||||
| Refund of unemployment insurance benefits | 4,195,314 | - | Income related | ||||
| Tax refund for PRC-made equipment | 2,296,208 | 2,296,208 | Assets related | ||||
| Subsidies for employment stabilisation provided by unemployment insurance | 2,061,084 | 241,510 | Income related | ||||
| Incentives for energy efficiency of power plant by Dongguan | 1,647,687 | 1,647,687 | Assets related | ||||
| Energy saving grants | 1,479,870 | 1,479,871 | Assets related | ||||
| Subsidies for employees’ job training | 1,321,500 | - | Income related | ||||
| Special funds for 1-3# generators’ desulfurisation project | 1,303,568 | 742,131 | Assets related | ||||
| Subsidy for steady growth | 1,000,000 | - | Income related | ||||
| Refund of service fee for withholding individual income tax | 456,821 | 1,083,959 | - | ||||
| Enterprise economic contribution rewards for Nansha headquarters | - | 3,777,300 | Income related | ||||
| Other government grants related to assets | 7,315,832 | 14,196,922 | Assets related | ||||
| Other government grants related to income | 1,817,956 | 2,257,123 | Income related | ||||
| 39,698,146 | 42,071,653 | ||||||
| (51) | Investment income | |||
| 2020 | 2019 | |||
| Investment income from long-term equity investments under the equity method | 235,387,197 | 64,909,255 | ||
| Dividend income earned during the holding period of investments in other equity instruments (Note 4(11)) | 65,087,539 | 58,580,379 | ||
| Recovery of interest income from written off other receivables | - | 1,224,342 | ||
| Others | 361,286 | 827,264 | ||
| 300,836,022 | 125,541,240 | |||
| The Group obtains returns from investment without any significant restrictions. | ||||
| (52) | Gains on disposal of assets | |||||
| 2020 | 2019 | Amount recognised in non-recurring profit or loss in 2020 | ||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| Gains from disposal of other current assets (Note 4(13)(a)(v)) | 340,936,718 | - | 340,936,718 | |||
| Gains on disposal of intangible assets | 157,963 | 29,476,253 | 157,963 | |||
| Losses on disposal of fixed assets | (118,320) | (10,576) | (118,320) | |||
| Losses on disposal of construction in progress | - | (8,962,253) | - | |||
| 340,976,361 | 20,503,424 | 340,976,361 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||||
| (53) | Non-operating income | |||||
| 2020 | 2019 | Amount recognised in non-recurring profit or loss in 2020 | ||||
| Gains on scraping of fixed assets | 21,381,516 | 6,789,851 | 21,381,516 | |||
| Liquidation balance of enterprises with diversified businesses (Note 4(32)(b)(iii)) | 15,128,380 | - | 15,128,380 | |||
| Compensation for electricity charges during the demolition and construction period (Note 4(13)(a)(iv)) | 11,315,659 | - | 11,315,659 | |||
| Negative goodwill gains from associates (Note 4(10)(b)(ii)) | 8,549,071 | - | 8,549,071 | |||
| Payables unnecessary to be repaid | 8,145,556 | 6,441,146 | 8,145,556 | |||
| Claims and compensation income | 7,055,408 | 4,375,102 | 7,055,408 | |||
| Income from penalty and fine | 4,348,916 | 6,329,626 | 4,348,916 | |||
| Negative goodwill gains from business combination involving enterprises not under common control (Note 5(2)) | 1,235,720 | - | 1,235,720 | |||
| Others | 9,759,980 | 9,300,994 | 9,759,980 | |||
| 86,920,206 | 33,236,719 | 86,920,206 | ||||
| (54) | Non-operating expenses | |||||
| 2020 | 2019 | Amount recognised in non-recurring profit or loss in 2020 | ||||
| Carbon emission quota used to fulfil the emission reduction obligation (a) | 57,470,471 | - | - | |||
| Losses on scrapping of non-current assets | 23,719,197 | 14,970,579 | 23,719,197 | |||
| Losses on scrapping of waste materials | 6,066,525 | 3,360,365 | 6,066,525 | |||
| Penalties and overdue fines | 3,976,455 | 4,449,214 | 3,976,455 | |||
| Donation expenses | 707,460 | 643,072 | 707,460 | |||
| Expenses borne by enterprises under the “supply of water, electricity and heat and property management” renovation project | - | 7,885,758 | - | |||
| Others | 1,340,300 | 702,139 | 1,340,300 | |||
| 93,280,408 | 32,011,127 | 35,809,937 | ||||
| (a) | In accordance with the Interim Provisions on the Accounting Treatment Regarding Carbon Emissions Right Trading and the Interim Measures for the Administration of Trading of Carbon Emission Rights (Cai Kuai [2019] No. 22), companies within the Group that were identified as key emission units recognised the purchase of carbon emission quotas used in 2020 as non-operating expenses on an accrual basis, and included relate provision for carbon emission quota payable in other payables. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||
| (55) | Income tax expenses | |||
| 2020 | 2019 | |||
| Current income tax calculated based on tax law and related regulations | 885,076,351 | 673,284,479 | ||
| Deferred income tax | 1,929,052 | 64,780,530 | ||
| 887,005,403 | 738,065,009 | |||
| 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: | ||||
| 2020 | 2019 | |||
| Total profit | 3,522,266,910 | 2,545,239,899 | ||
| Income tax calculated at applicable tax rates | 880,566,728 | 636,309,975 | ||
| Effect of preferential tax rates of subsidiaries | (52,401,964) | (58,231,083) | ||
| Income not subject to tax | (75,465,498) | (32,184,480) | ||
| Costs, expenses and losses not deductible for tax purposes | 43,410,525 | 25,250,185 | ||
| Deductible losses for which no deferred tax asset was recognised in the current period | 122,010,354 | 38,808,803 | ||
| Transfer-out of deductible losses for which deferred tax asset was recognised | 31,862,492 | 47,877,267 | ||
| Deductible temporary differences for which no deferred tax asset was recognised in the current period | 70,114,810 | 91,854,715 | ||
| Utilisation of deductible losses for which no deferred tax asset was recognised in previous periods | (2,081,301) | (197,303) | ||
| Utilisation of deductible temporary differences for which no deferred tax asset was recognised in previous periods | (134,262,143) | (8,146,091) | ||
| Effect of other deductible expenses | (498,256) | (484,255) | ||
| Income tax filing difference from previous years | 3,749,656 | (2,792,724) | ||
| Income tax expenses | 887,005,403 | 738,065,009 | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||
| (56) | 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: | ||||
| 2020 | 2019 | |||
| Consolidated net profit attributable to ordinary shareholders of the parent company | 1,746,280,132 | 1,146,767,033 | ||
| Weighted average number of outstanding ordinary shares of the Company | 5,250,283,986 | 5,250,283,986 | ||
| Basic earnings per share | 0.33 | 0.22 | ||
| Including: | ||||
| - Basic earnings per share from continuing operations: | 0.33 | 0.22 | ||
| - Basic earnings per share for 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 2020, there were no dilutive potential ordinary shares (2019: Nil), and hence diluted earnings per share is equal to basic earnings per share. | ||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||
| (57) | Notes to the cash flow statement | |||
| (a) | Cash received relating to other operating activities | |||
| 2020 | 2019 | |||
| Interest income | 69,813,793 | 64,827,152 | ||
| Rental income | 26,513,095 | 25,092,388 | ||
| Government grants | 25,848,275 | 34,698,782 | ||
| Claims and compensation income | 11,404,324 | 11,704,759 | ||
| Liquidation balance of enterprises with diversified businesses | - | 15,128,380 | ||
| Others | 31,822,683 | 43,877,306 | ||
| 165,402,170 | 195,328,767 | |||
| (b) | Cash paid relating to other operating activities | |||
| 2020 | 2019 | |||
| Insurance expenses | 151,796,162 | 103,594,103 | ||
| Electricity transaction expenses | 72,977,090 | 45,683,532 | ||
| Fire safety expenses | 51,886,907 | 48,396,661 | ||
| Utility fees | 35,508,739 | 39,491,941 | ||
| Property management expenses | 33,135,162 | 33,041,303 | ||
| Sewage and sanitary charges | 36,105,213 | 61,671,728 | ||
| Expenses relating to supply of water, power and heat and property management | 31,001,152 | 42,207,199 | ||
| Office expenses | 30,692,829 | 26,894,609 | ||
| Traffic expenses | 25,889,098 | 25,677,325 | ||
| Rental expenses | 23,730,021 | 21,478,872 | ||
| Expenses on carbon emission quotas used to fulfil the emission reduction obligation | 21,458,600 | 26,502,649 | ||
| Administrative penalties and overdue fines | 3,400,418 | 176,593,564 | ||
| Others | 206,117,688 | 140,545,635 | ||
| 723,699,079 | 791,779,121 | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||
| (57) | Notes to the cash flow statement (Cont’d) | |||
| (c) | Cash received relating to other investing activities | |||
| 2020 | 2019 | |||
| Net income from trial operation | 18,734,619 | - | ||
| Advances from compensations for demolition | 15,000,000 | - | ||
| 33,734,619 | - | |||
| (d) | Cash paid relating to other investing activities | |||
| 2020 | 2019 | |||
| Deposits prepaid for equity acquisition | 80,000,000 | - | ||
| Net expense on trial operation | 44,658,936 | - | ||
| Deposits for ecological protection | 10,043,160 | - | ||
| Deposits for rehabilitation | 7,090,400 | - | ||
| 141,792,496 | - | |||
| (e) | Cash received relating to other financing activities | |||
| 2020 | 2019 | |||
| Cash received from financing sales and leaseback | - | 100,000,000 | ||
| (f) | Cash paid relating to other financing activities | |||
| 2020 | 2019 | |||
| Cash paid for finance leases | 176,769,015 | 293,244,563 | ||
| Agency fee for debenture issuance | 3,376,906 | 971,697 | ||
| 180,145,921 | 294,216,260 | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||
| (58) | 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 | ||||
| 2020 | 2019 | |||
| Net profit | 2,635,261,507 | 1,807,174,890 | ||
| Add: Losses on provision for asset impairment | 487,542,577 | 161,731,338 | ||
| Provision for/(Reversal of) credit impairment losses | 300,656 | (46,348,884) | ||
| Depreciation of fixed assets | 3,354,543,196 | 3,726,076,512 | ||
| Depreciation of investment properties | 2,550,812 | 2,085,161 | ||
| Amortisation of intangible assets | 59,888,045 | 52,313,721 | ||
| Amortisation of long-term prepaid expenses | 2,963,847 | 3,292,478 | ||
| Amortisation of deferred income | (19,604,523) | (25,924,177) | ||
| Gains on disposal of fixed assets, intangible assets and other long-term assets | (340,976,361) | (20,503,424) | ||
| Losses on scrapping of fixed assets | 2,337,681 | 8,180,728 | ||
| Financial expenses | 1,182,880,054 | 1,290,901,363 | ||
| Investment income | (300,836,022) | (125,541,240) | ||
| Decrease in deferred tax items | 1,929,052 | 64,780,530 | ||
| Decrease/(Increase) in inventories | 213,210,688 | (335,772,151) | ||
| (Increase)/Decrease in operating receivables | (1,345,127,766) | 609,828,991 | ||
| Increase in operating payables | 352,110,407 | 1,098,407,276 | ||
| Increase/(Decrease) in restricted cash | (8,192,681) | 2,000,000 | ||
| Net cash flows from operating activities | 6,280,781,169 | 8,272,683,112 | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||
| (58) | 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 | ||||
| 2020 | 2019 | |||
| Long-term assets held under finance leases | 1,000,444,757 | 425,283,800 | ||
| Long-term assets of finance lease through sales and leaseback | - | 100,000,000 | ||
| 1,000,444,757 | 525,283,800 | |||
| Net increase/(decrease) in cash and cash equivalents | ||||
| 2020 | 2019 | |||
| Cash at the end of the year | 5,763,619,876 | 5,079,641,969 | ||
| Less: Cash at the beginning of the year | (5,079,641,969) | (5,570,382,892) | ||
| Net increase/(decrease) in cash and cash equivalents | 683,977,907 | (490,740,923) | ||
| (b) | Acquisition of the subsidiary – Huaguoquan Company | |||
| 2020 | ||||
| Cash and cash equivalents paid in the current year for business combination incurred in the current year (Note 5(2)) | 49,680,900 | |||
| Less: Cash and cash equivalents held by subsidiaries at the acquisition date | (8,800,684) | |||
| Net cash outflow on acquisition of the subsidiary | 40,880,216 | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||
| (58) | Supplementary information to the cash flow statement (Cont’d) | |||
| (b) | Acquisition of the subsidiary - Huaguoquan Company (Cont’d) | |||
| Considerations for acquisition of subsidiaries in 2020 | ||||
| 2020 | ||||
| Huaguoquan Company (Note 5(2)) | 49,680,900 | |||
| Net assets of subsidiaries acquired in 2020 at the acquisition date | ||||
| 2020 | ||||
| Current assets | 8,943,450 | |||
| Non-current assets | 58,004,732 | |||
| Current liabilities | (677,733) | |||
| Non-current liabilities | (15,353,829) | |||
| 50,916,620 | ||||
| (c) | Cash and cash equivalents | |||
| 31 December 2020 | 31 December 2019 | |||
| Cash at bank and on hand | 5,790,946,117 | 5,081,641,969 | ||
| Less: Restricted cash at bank | (27,326,241) | (2,000,000) | ||
| Cash and cash equivalents at the end of the year (i) | 5,763,619,876 | 5,079,641,969 | ||
| (i) | Cash and cash equivalents at the end of the year | |||
| 31 December 2020 | 31 December 2019 | |||
| Cash on hand | 26,993 | 25,114 | ||
| Cash at bank that can be readily drawn on demand | 5,763,592,883 | 5,079,616,855 | ||
| 5,763,619,876 | 5,079,641,969 | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 4 | Notes to the consolidated financial statements (Cont’d) | |||||
| (59) | Monetary items denominated in foreign currency | |||||
| 31 December 2020 | ||||||
| Balance in foreign currencies | Exchange rate | Balance in RMB | ||||
| Cash at bank and on hand - | ||||||
| USD | 190 | 6.5249 | 1,233 | |||
| HKD | 12,884 | 0.8416 | 10,844 | |||
| 12,077 | ||||||
| Long-term borrowings - | ||||||
| USD | 7,971,450 | 6.5249 | 52,012,914 | |||
| Current portion of non-current liabilities - | ||||||
| USD | 1,043,635 | 6.5249 | 6,809,614 | |||
| EUR | 135,792 | 8.0250 | 1,089,727 | |||
| 7,899,341 | ||||||
| 5 | Changes in consolidation scope | ||||||
| (1) | Subsidiaries established during the year: | ||||||
| Subsidiaries | Major business location | Place of registration | Nature of business | Registered capital | Shareholding (%) | Acquisition method | |
| Guangdong Yuedian Daya Bay Integrated Energy Co., Ltd. (“Daya Bay Company”) | Huizhou, Guangdong Province | Huizhou, Guangdong Province | Electricity generation | RMB 22,000,000 | 80.00% | Investment | |
| Guangdong Yuedian Qiming Energy Co., Ltd. (“Qiming Company”) | Shenzhen, Guangdong Province | Shenzhen, Guangdong Province | Electricity generation | RMB 20,000,000 | 100.00% | Investment | |
| Huaguoquan Company | Shenzhen, Guangdong Province | Shenzhen, Guangdong Province | Leases | RMB 2,650,000 | 100.00% | Business combinations involving enterprises not under common control | |
| Shaoguan Nanxiong Yuefeng New Energy Co., Ltd. (“Nanxiong New Energy”) | Shaoguan, Guangdong Province | Shaoguan, Guangdong Province | Electricity generation | RMB 5,000,000 | 100.00% | Investment | |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 5 | Changes of consolidation scope (Cont’d) | ||||||||||
| (2) | Business combinations involving enterprises not under common control | ||||||||||
| (a) | Business combinations involving enterprises not under common control in the current year | ||||||||||
| Acquiree | Timing of acquisition | Acquisition cost | Interest acquired (%) | Acquisition method | Acquisition date | Basis for determining the acquisition date | Revenue of the acquiree from the acquisition date to the end of the year | Net profit of the acquiree from the acquisition date to the end of the period | Cash flows from operating activities of the acquiree from the acquisition date to the end of the year | Net cash flows of the acquiree from the acquisition date to the end of the year | |
| Huaguoquan Company | 25 September 2020 | 49,680,900 | 100.00% | Equity transfer | 25 September 2020 | Completion of equity delivery | 1,028,594 | 1,017,465 | 143,392 | 140,912 | |
| On 25 September 2020, the Company acquired 95% equity of Huaguoquan Company held by the headquarters of Dongguan Humen Jinfan Industrial Corporation and 5% equity of Huaguoquan Company held by the Labour Union of Shenzhen Huaguoquan Electric Service Co., Ltd. at a consideration of RMB 47,196,900 and RMB 2,484,000 respectively. This transaction is classified as a business combination involving enterprises under common control as Huaguoquan Company and the Company were not controlled by the same ultimate controlling party. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 5 | Changes of consolidation scope (Cont’d) | |||
| (2) | Business combinations involving enterprises not under common control (Cont’d) | |||
| (b) | Details of the costs of combination and goodwill recognised are as follows: | |||
| Huaguoquan Company | ||||
| Costs of combination - | ||||
| Cash paid | 49,680,900 | |||
| Less: Fair value of the share of identifiable net assets obtained | (50,916,620) | |||
| Amount recognised in profit or loss for the current period | (1,235,720) | |||
| (c) | The assets and liabilities of the acquiree at the acquisition date are as follows: | |||||
| (i) | Huaguoquan Company | |||||
| Acquisition date | Acquisition date | 31 December 2019 | ||||
| Fair value | Carrying amount | Carrying amount | ||||
| Cash at bank and on hand | 8,800,684 | 8,800,684 | 8,204,823 | |||
| Receivables | 19,647 | 19,647 | 5,311 | |||
| Other receivables | 104,427 | 104,427 | 3,000 | |||
| Inventories | 18,692 | 18,692 | 11,838 | |||
| Investment properties | 189,849 | 189,849 | 386,600 | |||
| Fixed assets | 57,814,883 | 279,683 | 400,862 | |||
| Less: Advances from customers | (6,254) | (6,254) | (11,899) | |||
| Employee benefits payable | (1,935) | (1,935) | - | |||
| Taxes payable | (36,680) | (36,680) | (86,852) | |||
| Other payables | (632,864) | (632,864) | (522,158) | |||
| Deferred tax liabilities | (14,383,800) | - | - | |||
| Other non-current liabilities | (970,029) | (970,029) | (970,029) | |||
| Net assets | 50,916,620 | 7,765,220 | 7,421,496 | |||
| Net assets obtained | 50,916,620 | |||||
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 6 | Interests in other entities | ||||||
| (1) | Interests in subsidiaries | ||||||
| (a) | Composition of the Group | ||||||
| Subsidiaries | Major business location | Place of registration | Nature of business | Shareholding (%) | Acquisition method | ||
| Direct | Indirect | ||||||
| Energy Thermal (i) | Maoming | Maoming | Electricity generation | 46.54% | - | Investment | |
| Jinghai Power | Jieyang | Jieyang | Electricity generation | 65.00% | - | Investment | |
| Zhanjiang Wind Power | Zhanjiang | Zhanjiang | Electricity generation | 70.00% | - | Investment | |
| Guangdong Yudean Anxin Electric Inspection & Installation Co., Ltd. (“Anxin Inspection”) | Dongguan | Dongguan | Electricity generation | 100.00% | - | Investment | |
| Guangdong Yudean Humen Electric Co., Ltd. (“Humen Electric”) | Dongguan | Dongguan | Electricity generation | 60.00% | - | Investment | |
| Bohe Energy | Maoming | Maoming | Electricity generation | 67.00% | - | Investment | |
| Yuheng Electric | Zhanjiang | Zhanjiang | Electricity generation | - | 76.00% | Business combinations involving enterprises 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 generation | 65.00% | - | Investment | |
| Guangdong Yuedian Dapu Power Generation Co., Ltd. (“Dapu Power Generation”) | Meizhou | Meizhou | Electricity generation | 100.00% | - | Investment | |
| Leizhou Wind Power | Leizhou | Leizhou | Electricity generation | 80.00% | 14.00% | Investment | |
| Dianbai Wind Power | Maoming | Maoming | Electricity generation | - | 100.00% | Investment | |
| Zhanjiang Electric | Zhanjiang | Zhanjiang | Electricity generation | 76.00% | - | Business combinations involving enterprises under common control | |
| Yuejia Electric | Meizhou | Meizhou | Electricity generation | 58.00% | - | Business combinations involving enterprises under common control | |
| Yuejiang Power | Shaoguan | Shaoguan | Electricity generation | 90.00% | - | Business combinations involving enterprises under common control | |
| Zhongyue Energy | Zhanjiang | Zhanjiang | Electricity generation | 90.00% | - | Business combinations involving enterprises under common control | |
| Power Sales | Guangzhou | Guangzhou | Electricity generation | 100.00% | - | Investment | |
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| Qujie Wind Power | Zhanjiang | Zhanjiang | Electricity generation | 100.00% | - | Investment | |
| Yangjiang Wind Power | Yangjiang | Yangjiang | Electricity generation | - | 100.00% | Investment | |
| Lincang Energy | Lincang, Yunnan Province | Lincang | Electricity generation | 100.00% | - | Business combinations involving enterprises not under common control | |
| Shenzhen Guangqian Electric Co., Ltd. (“Guangqian Electric”) | Shenzhen | Shenzhen | Electricity generation | 100.00% | - | Business combinations involving enterprises under common control | |
| Huizhou Natural Gas | Huizhou | Huizhou | Electricity generation | 67.00% | - | Business combinations involving enterprises under common control |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 6 | Interests in other entities (Cont’d) | ||||||
| (1) | Interests in subsidiaries (Cont’d) | ||||||
| (a) | Constitution of the Group (Cont’d) | ||||||
| Subsidiaries | Major business location | Place of registration | Nature of business | Shareholding (%) | Acquisition method | ||
| Direct | Indirect | ||||||
| Pinghai Power (ii) | Huizhou | Huizhou | Electricity generation | 45.00% | - | Business combinations involving enterprises under common control | |
| Shibeishan Wind Power | Jieyang | Jieyang | Electricity generation | - | 70.00% | Business combinations involving enterprises under common control | |
| Red Bay Power | Shanwei | Shanwei | Electricity generation | 65.00% | - | Business combinations involving enterprises under common control | |
| Guangdong Wind Power | Guangzhou | Guangzhou | Electricity generation | 100.00% | - | Business combinations involving enterprises not under common control | |
| Tongdao Company | Huaihua, Hunan Province | Huaihua | Electricity generation | 100.00% | - | Investment | |
| Pingyuan Wind Power | Meizhou | Meizhou | Electricity generation | - | 100.00% | Investment | |
| Guangdong Yudean Heping Wind Power Co., Ltd. (“Heping Wind Power”) | Heyuan | Heyuan | Electricity generation | - | 100.00% | Investment | |
| Huilai Wind Power | Jieyang city | Jieyang city | Electricity generation | - | 89.83% | Business combinations involving enterprises not under common control | |
| Guangdong Yuejiang Hongrui Power Technology Development Co., Ltd. (“Hongrui Technology”) | Shaoguan | Shaoguan | Electricity generation | - | 90.00% | Investment | |
| Guangdong Yudean Yongan Natural Gas Thermal Power Co., Ltd. (“Yongan Natural Gas”) | Zhaoqing | Zhaoqing | Electricity generation | 90.00% | - | Investment | |
| Hunan Xupu Yuefeng New Energy Co., Ltd. (“Xupu Yuefeng”) | Huaihua, Hunan Province | Xupu County, Huaihua, Hunan Province | Electricity generation | - | 100.00% | Investment | |
| Guangxi Wuxuan Yuefeng New Energy Co., Ltd.(“Wuxuan Yuefeng”) | Guangxi Zhuang Autonomous Region | Wuxuan, Guangxi Zhuang Autonomous Region | Electricity generation | - | 100.00% | Investment | |
| Huizhou Pingdian Comprehensive Energy Co., Ltd. (“Pingdian Comprehensive”) (ii) | Huizhou | Huizhou | Electricity generation | - | 45.00% | Investment | |
| Zhuhai Wind Power | Zhuhai | Zhuhai | Electricity generation | - | 100.00% | Investment | |
| Zhencheng Comprehensive (i) | Maoming | Maoming | Electricity generation | - | 37.23% | Investment | |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| Guangdong Yudean Binhai Bay Energy Co., Ltd. (“Binhai Bay Company”) | Dongguan | Dongguan | Electricity generation | 100.00% | - | Investment | |
| Daya Bay | Huizhou | Huizhou | Electricity generation | 80.00% | - | Investment | |
| Qiming | Shenzhen | Shenzhen | Electricity generation | 100.00% | - | Investment | |
| Huaguoquan | Shenzhen | Shenzhen | Leases | 100.00% | - | Business combinations involving enterprises not under common control | |
| Nanxiong New Energy | Shaoguan | Shaoguan | Electricity generation | - | 100.00% | Investment | |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 6 | Interests in other entities (Cont’d) |
| (1) | Interests in subsidiaries (Cont’d) |
| (a) | Constitution of the Group (Cont’d) |
| (i) | On 30 November 2018, Energy Thermal merged Guangdong Energy Maoming Thermal Power Station Co., Ltd., wholly-owned by GEGC. After the merger, GEGC held 30.12% equity of Energy Thermal. 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 the shareholders’ meeting and the Board of Directors’ meeting at Energy Thermal. Therefore, the Company owns control power over Energy Thermal. In addition, pursuant to the consent agreement entered into between the Company and GEGC, the Company holds 61.33% voting rights in Zhencheng Comprehensive, a subsidiary whose 80% equity is directly held by Energy Thermal. Therefore, the Company owns control power over Zhencheng Comprehensive. |
| (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 holds 40% equity in Pinghai Power, the delegated shareholder and director from Huaxia Electric maintain consensus with those of GEGC when exercising their voting rights during the shareholders’ meeting and Board of Directors’ meeting at Pinghai Power; besides, after GEGC transfers its 45% 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 the shareholders’ meeting and Board of Directors’ meeting at Pinghai Power. Therefore, the Company owns the control power over Pinghai Power. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 6 | Interests in other entities (Cont’d) | ||||
| (1) | Interests in subsidiaries (Cont’d) | ||||
| (b) | Subsidiaries with significant minority interests | ||||
| Subsidiaries | Shareholding of minority shareholders (%) | Gains or losses attributable to minority shareholders in 2020 | Dividends distributed to minority shareholders in 2020 | Minority interests as at 31 December 2020 | |
| Bohe Energy | 33.00% | (69,610,199) | - | 1,371,330,255 | |
| Zhanjiang Electric | 24.00% | 65,554,950 | 68,878,466 | 1,357,105,686 | |
| Jinghai Power | 35.00% | 158,524,503 | 123,470,774 | 1,295,125,226 | |
| Red Bay Power | 35.00% | 101,340,817 | 129,115,169 | 1,150,268,404 | |
| Huizhou Natural Gas | 33.00% | 234,486,299 | 95,094,144 | 834,988,451 | |
| Pinghai Power | 55.00% | 151,357,730 | 71,997,437 | 718,375,999 | |
| Energy Thermal | 53.46% | 8,697,818 | - | 450,886,728 | |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 6 | Interests in other entities (Cont’d) | |||||||||||||||||
| (1) | Interests 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 2020 | 31 December 2019 | |||||||||||||||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |||||||
| Bohe Energy | 767,050,262 | 9,643,376,566 | 10,410,426,828 | 3,764,791,895 | 2,490,088,705 | 6,254,880,600 | 406,450,976 | 8,090,725,274 | 8,497,176,250 | 1,243,204,501 | 2,887,485,525 | 4,130,690,026 | ||||||
| Zhanjiang Electric | 3,046,263,179 | 1,262,920,735 | 4,309,183,914 | 175,539,000 | 21,203,440 | 196,742,440 | 2,933,345,468 | 1,360,939,980 | 4,294,285,448 | 149,489,138 | 22,283,574 | 171,772,712 | ||||||
| Jinghai Power | 1,169,487,442 | 6,990,897,776 | 8,160,385,218 | 2,449,512,187 | 1,786,251,133 | 4,235,763,320 | 944,179,710 | 7,485,923,562 | 8,430,103,272 | 1,944,115,146 | 2,667,589,649 | 4,611,704,795 | ||||||
| Red Bay Power | 972,859,321 | 5,062,032,390 | 6,034,891,711 | 1,796,971,724 | 752,258,158 | 2,549,229,882 | 790,682,866 | 5,336,542,066 | 6,127,224,932 | 1,388,119,251 | 1,169,279,149 | 2,557,398,400 | ||||||
| Huizhou Natural Gas | 710,651,111 | 3,115,192,544 | 3,825,843,655 | 635,175,623 | 660,400,000 | 1,295,575,623 | 765,719,152 | 3,212,271,662 | 3,977,990,814 | 825,563,251 | 1,044,560,000 | 1,870,123,251 | ||||||
| Pinghai Power | 1,254,897,337 | 3,768,541,657 | 5,023,438,994 | 1,570,145,027 | 1,276,397,000 | 2,846,542,027 | 1,025,618,654 | 4,139,133,331 | 5,164,751,985 | 1,038,669,288 | 2,189,671,466 | 3,228,340,754 | ||||||
| Energy Thermal | 549,240,963 | 2,288,389,730 | 2,837,630,693 | 1,124,331,591 | 346,975,685 | 1,471,307,276 | 520,526,431 | 2,397,789,805 | 2,918,316,236 | 1,155,015,192 | 423,304,075 | 1,578,319,267 | ||||||
| 2020 | 2019 | |||||||||||||||||
| Revenue | Net (loss)/profit | Total comprehensive income | Cash flows from operating activities | Revenue | Net (loss)/profit | Total comprehensive income | Cash flows from operating activities | |||||||||||
| Bohe Energy | 190,228,324 | (210,939,996) | (210,939,996) | 1,028,367 | 773,421 | (127,816,410) | (127,816,410) | (55,199,499) | ||||||||||
| Zhanjiang Electric | 1,697,051,516 | 198,651,363 | 198,651,363 | 380,388,728 | 1,860,318,943 | 283,160,720 | 283,160,720 | 341,541,041 | ||||||||||
| Jinghai Power | 4,860,526,733 | 480,377,283 | 480,377,283 | 1,227,452,922 | 4,796,679,483 | 415,726,514 | 415,726,514 | 1,641,051,136 | ||||||||||
| Red Bay Power | 3,655,108,574 | 307,093,385 | 307,093,385 | 852,369,607 | 3,841,846,212 | 434,731,209 | 434,731,209 | 1,066,208,056 | ||||||||||
| Huizhou Natural Gas | 3,928,517,091 | 710,564,542 | 710,564,542 | 964,252,990 | 4,234,691,640 | 320,182,303 | 320,182,303 | 1,008,784,069 | ||||||||||
| Pinghai Power | 3,243,260,761 | 458,659,788 | 458,659,788 | 601,318,982 | 3,029,136,753 | 210,705,126 | 210,705,126 | 1,125,527,395 | ||||||||||
| Energy Thermal | 1,522,024,465 | 26,357,024 | 26,357,024 | 313,073,164 | 1,566,406,325 | 29,568,156 | 29,568,156 | 376,262,049 | ||||||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 6 | Interests in other entities (Cont’d) | |||||||
| (2) | Interests in joint ventures and associates | |||||||
| (a) | Basic information of significant joint ventures and associates | |||||||
| Major business location | Place of registration | Nature of business | Whether strategic to the Group's activities | Shareholding (%) | ||||
| Direct | Indirect | |||||||
| Joint ventures - | ||||||||
| Industry Fuel | Guangzhou, Guangdong | Guangzhou, Guangdong | Fuel trading | Yes | 50.00% | - | ||
| Associates - | ||||||||
| Shanxi Yudean Energy | Taiyuan, Shanxi | Taiyuan, Shanxi | Mining, power generation | Yes | 40.00% | - | ||
| Yudean Shipping | Shenzhen, Guangdong | Shenzhen, Guangdong | Transportation, port operations | Yes | 35.00% | - | ||
| Energy Group Finance Company | Guangzhou, Guangdong | Guangzhou, Guangdong | Finance | Yes | 25.00% | - | ||
| Taishan Electric | Taishan, Guangdong | Taishan, Guangdong | Power generation | Yes | 20.00% | - | ||
| Energy Financial Leasing Company | Guangzhou, Guangdong | Guangzhou, Guangdong | Finance leases | Yes | 25.00% | - | ||
| Investments in associates are accounted for using the equity method. | ||||||||
| (b) | Summarised financial information of significant joint ventures | |||||||
| 31 December 2020 | 31 December 2019 | |||||||
| Industry Fuel | Industry Fuel | |||||||
| Current assets | 3,394,974,695 | 2,525,548,290 | ||||||
| Non-current assets | 919,752,240 | 236,455,032 | ||||||
| Total assets | 4,314,726,935 | 2,762,003,322 | ||||||
| Current liabilities | 2,677,965,708 | 1,523,551,251 | ||||||
| Non-current liabilities | 505,894,435 | 795,464 | ||||||
| Total liabilities | 3,183,860,143 | 1,524,346,715 | ||||||
| Minority interests | 67,010,550 | 5,990,551 | ||||||
| Attributable to shareholders of the parent company | 1,063,856,242 | 1,231,666,056 | ||||||
| Shares of net assets in proportion to shareholding (i) | 531,928,121 | 615,833,028 | ||||||
| Adjustments | (614,728) | (614,728) | ||||||
| Carrying amount of equity investment in joint ventures | 531,313,393 | 615,218,300 | ||||||
| Revenue | 17,245,296,639 | 18,542,018,582 | ||||||
| Net profit | 148,992,812 | 161,363,606 | ||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| Including: Attributable to the parent company | 148,992,812 | 161,373,052 | ||
| Other comprehensive income | - | - | ||
| Including: Attributable to the parent company | - | - | ||
| Total comprehensive income | 148,992,812 | 161,363,606 | ||
| Dividends received from joint ventures by the Group for the current year | 69,090,435 | 68,053,122 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 6 | Interests in other entities (Cont’d) | ||||||||
| (2) | Interests in joint ventures and associates (Cont’d) | ||||||||
| (b) | Summarised financial information of significant joint ventures (Cont’d) | ||||||||
| (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. | ||||||||
| (c) | Summarised financial information of significant associates | ||||||||
| 31 December 2020 | 31 December 2019 | ||||||||
| Shanxi Yudean Energy | Yudean Shipping | Shanxi Yudean Energy | Yudean Shipping | ||||||
| Current assets | 359,511,675 | 610,941,062 | 493,527,957 | 677,384,957 | |||||
| Non-current assets | 4,862,121,461 | 1,526,832,468 | 4,018,816,040 | 2,301,371,982 | |||||
| Total assets | 5,221,633,136 | 2,137,773,530 | 4,512,343,997 | 2,978,756,939 | |||||
| Current liabilities | 272,974,916 | 1,447,093,206 | 227,879,801 | 1,486,497,588 | |||||
| Non-current liabilities | 394,482,950 | - | 167,617,393 | 209,774,800 | |||||
| Total liabilities | 667,457,866 | 1,447,093,206 | 395,497,194 | 1,696,272,388 | |||||
| Minority interests | 6,344,280 | - | 6,337,937 | - | |||||
| Attributable to shareholders of the parent company | 4,547,830,990 | 690,680,324 | 4,110,508,866 | 1,282,484,551 | |||||
| Shares of net assets in proportion to shareholding (i) | 1,819,132,396 | 241,738,113 | 1,644,203,546 | 448,869,593 | |||||
| Adjustments | |||||||||
| - Goodwill | - | - | - | - | |||||
| Carrying amount of equity investment in associates | 1,819,132,396 | 241,738,113 | 1,644,203,546 | 448,869,593 | |||||
| Revenue | 8,899,732 | 1,326,615,620 | 7,251,090 | 1,525,757,019 | |||||
| Net profit/(loss) | 487,328,469 | (579,173,585) | 610,019,213 | (1,360,556,144) | |||||
| Including: Attributable to the parent company | 487,322,126 | (579,173,585) | 610,034,351 | (1,360,556,144) | |||||
| Other comprehensive income | - | (991,382) | - | 615,287 | |||||
| Including: Attributable to the parent company | - | (991,382) | - | 615,287 | |||||
| Total comprehensive income | 487,328,469 | (580,164,967) | 610,019,213 | (1,359,940,857) | |||||
| Dividends received from associates by the Group for the current year | 20,000,000 | - | 40,000,000 | - | |||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 6 | Interests in other entities (Cont’d) | ||||||||
| (2) | Interests in joint ventures and associates (Cont’d) | ||||||||
| (c) | Summarised financial information of significant associates (Cont'd) | ||||||||
| 31 December 2020 | 31 December 2019 | ||||||||
| Energy Group Finance Company | Taishan Electric | Energy Group Finance Company | Taishan Electric | ||||||
| Current assets | 4,029,448,613 | 1,394,060,235 | 5,476,170,472 | 992,068,417 | |||||
| Non-current assets | 16,236,897,512 | 10,151,763,274 | 14,966,723,063 | 11,150,344,536 | |||||
| Total assets | 20,266,346,125 | 11,545,823,509 | 20,442,893,535 | 12,142,412,953 | |||||
| Current liabilities | 16,186,047,689 | 2,099,513,156 | 16,528,663,938 | 1,324,769,339 | |||||
| Non-current liabilities | 24,771,788 | - | - | 390,000,000 | |||||
| Total liabilities | 16,210,819,477 | 2,099,513,156 | 16,528,663,938 | 1,714,769,339 | |||||
| Minority interests | - | 1,177,413 | - | 863,919 | |||||
| Attributable to shareholders of the parent company | 4,055,526,648 | 9,445,132,940 | 3,914,229,597 | 10,426,779,695 | |||||
| Shares of net assets in proportion to shareholding (i) | 1,013,881,662 | 1,889,026,588 | 978,557,399 | 2,085,355,939 | |||||
| Adjustments | |||||||||
| - Goodwill | 13,325,000 | - | 13,325,000 | - | |||||
| Carrying amount of equity investment in associates | 1,027,206,662 | 1,889,026,588 | 991,882,399 | 2,085,355,939 | |||||
| Revenue | 692,417,185 | 6,349,201,814 | 713,981,963 | 6,549,854,533 | |||||
| Net profit | 359,629,301 | 398,456,650 | 308,292,609 | 580,521,643 | |||||
| Including: Attributable to the parent company | 359,629,301 | 398,026,651 | 308,292,609 | 580,709,129 | |||||
| Other comprehensive income | 74,315,364 | (388,346) | - | 25,585 | |||||
| Including: Attributable to the parent company | 74,315,364 | (271,842) | - | 25,585 | |||||
| Total comprehensive income | 433,944,665 | 398,068,304 | 308,292,609 | 580,547,228 | |||||
| Dividends received from associates by the Group for the current year | 73,161,903 | 275,880,313 | 64,106,710 | - | |||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 6 | Interests in other entities (Cont’d) | ||||||||
| (2) | Interests in joint ventures and associates (Cont’d) | ||||||||
| (c) | Summarised financial information of significant associates (Cont'd) | ||||||||
| 31 December 2020 | 31 December 2019 | ||||||||
| Energy Financial Leasing Company | Energy Financial Leasing Company | ||||||||
| Current assets | 913,688,722 | N/A | |||||||
| Non-current assets | 4,333,088,521 | N/A | |||||||
| Total assets | 5,246,777,243 | N/A | |||||||
| Current liabilities | 1,457,308,158 | N/A | |||||||
| Non-current liabilities | 1,699,534,931 | N/A | |||||||
| Total liabilities | 3,156,843,089 | N/A | |||||||
| Minority interests | - | N/A | |||||||
| Attributable to shareholders of the parent company | 2,089,934,154 | N/A | |||||||
| Shares of net assets in proportion to shareholding (i) | 522,483,539 | N/A | |||||||
| Adjustments | |||||||||
| - Goodwill | - | N/A | |||||||
| Carrying amount of equity investment in associates | 522,483,539 | N/A | |||||||
| Revenue | 17,960,469 | N/A | |||||||
| Net profit | 3,904,742 | N/A | |||||||
| Including: Attributable to the parent company | 3,904,742 | N/A | |||||||
| Other comprehensive income | - | N/A | |||||||
| Including: Attributable to the parent company | - | N/A | |||||||
| Total comprehensive income | 3,904,742 | N/A | |||||||
| Dividends received from associates by the Group for the current year | - | N/A | |||||||
| (i) | Share of asset is calculated in proportion to the 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 assets and liabilities of associates at the time of acquisition and the unification of accounting policies. | ||||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 6 | Interests in other entities (Cont’d) | |||
| (2) | Interests in joint ventures and associates (Cont’d) | |||
| (d) | Summarised information of insignificant associates | |||
| 2020 | 2019 | |||
| Associates: | ||||
| Aggregated carrying amount of investments | 656,356,923 | 670,254,785 | ||
| Aggregate for the following items in proportion to the shareholding | ||||
| Net (loss)/profit (i) | (1,816,145) | 23,188,661 | ||
| Other comprehensive income (i) | (1,269,641) | 2,110,342 | ||
| Total comprehensive income | (3,085,786) | 25,299,003 | ||
| (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 upon the acquisition of investment at the time of acquisition and the unification of accounting policies. | |||
| 7 | Segment information | |||
| As the Group's operating revenue, expenses, assets and liabilities are primarily associated with sale of electric power and other related products, the Group's management, taking the sales of electric power as a whole business, periodically obtains accounting information relating to financial status, operating results and cash flow for assessment. Therefore, there is only the electric power segment in the Group. The Group’s operating income derives from the development and operation of electric plants in China and all assets are within China. In 2020, the revenue earned by the Group’s power plants from Southern Power Grid Company amounted to RMB 27,651,253,496 (2019: RMB 28,811,365,634), which took up 97.61% of the Group’s operating income (2019: 98.13%). | ||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 8 | Related parties and related party transactions | ||||||||||||
| (1) | Information of the parent company | ||||||||||||
| (a) | General information of the parent company | ||||||||||||
| Place of registration | Nature of business | ||||||||||||
| GEGC | Guangzhou | Operation and management of power generation enterprises, capital management of electricity assets, construction of power plant and sales of electricity | |||||||||||
| The 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 2019 | Increase in the current year | Decrease in the current year | 31 December 2020 | ||||||||||
| GEGC | 23,000,000,000 | - | - | 23,000,000,000 | |||||||||
| (c) | The percentage of shareholding and voting rights in the Company held by the parent company | ||||||||||||
| 31 December 2020 | 31 December 2019 | ||||||||||||
| Shareholding (%) | Voting rights (%) | Shareholding (%) | 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). | |||||||||||||
| (3) | Information of joint ventures and associates | ||||||||||||
| Apart from material joint ventures and associates disclosed in Note 6, other joint ventures and associates that involved in related party transactions with the Group are listed as follows: | |||||||||||||
| Name of entity | Relationship with the Group | ||||||||||||
| GEG Property Insurance | Associate | ||||||||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 8 | Related parties and related party transactions (Cont'd) | |
| (4) | Information of other related parties | |
| Relationship with the Group | ||
| Guangdong Energy Group 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 | |
| Yudean Environmental | Controlled by GEGC | |
| Shenzhen Tianxin Insurance Broker Co., Ltd. (“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 | |
| 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 Energy Group Natural Gas Co., Ltd. (“Guangdong Energy Natural Gas”) | Controlled by GEGC | |
| Guangdong Yudean Changtan Power Generation Co., Ltd. (“Changtan Power”) | Controlled by GEGC | |
| Guangzhou Yudean Huizhou New Energy Co., Ltd. (“Huizhou New Energy”) | Controlled by GEGC | |
| Guangdong Huizhou Liquefied Natural Gas Co., Ltd. (“Liquefied Natural Gas”) | Controlled by GEGC | |
| Guangdong Yudean Environmental Protection Materials Co., Ltd. (“Environmental Protection Materials”) | Controlled by GEGC | |
| Shaoguan Qujiang Yudean New Energy Co., Ltd. (“Qujiang Yudean New Energy”) | Controlled by GEGC | |
| Guangdong Port of Shaoguan Co., Ltd. (“Port of Shaoguan”) | Controlled by GEGC | |
| Guangdong Yudean Deqing New Energy Co., Ltd. (“Deqing New Energy”) | Controlled by GEGC | |
| Zhuhai Special Economic Zone Guangzhu Power Generation Co., Ltd. (“Guangzhu Power”) | Controlled by GEGC | |
| Yunfu Power Plant (B Power Plant) Co., Ltd. (“Yunfu B”) | Associate controlled by GEGC | |
| Guoneng Port of Zhuhai Harbour Service Co.,Ltd. (“Port of Zhuhai”) | Associate controlled by GEGC | |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 8 | Related parties and related party transactions (Cont'd) | |||||
| (5) | Related party transactions | |||||
| (a) | Purchase and sales of goods, and rendering and receiving of service | |||||
| Purchase of goods and receiving of services: | ||||||
| Related parties | Type of related party transaction | Pricing policies of related party transactions | 2020 | 2019 | ||
| Industry Fuel | Purchase of fuel | Agreement price | 11,237,469,319 | 12,572,055,713 | ||
| Guangdong Energy Natural Gas | Purchase of fuel | Agreement price | 1,435,308,622 | 2,244,739,292 | ||
| Yudean Environmental | Purchase of materials | Agreement price | 162,133,424 | 170,610,784 | ||
| GEG Property Insurance | Receipt of insurance services | Agreement price | 46,895,248 | 41,085,804 | ||
| Yudean PM | Receipt of property services | Agreement price | 34,811,439 | 32,994,779 | ||
| Yudean Shipping | Receipt of tug services | Agreement price | 25,154,340 | 25,634,906 | ||
| Huangpu Power Engineering | Receipt of maintenance and repair services | Agreement price | 16,908,327 | 23,488,279 | ||
| Yudean PI | Receipt of management service | Agreement price | 7,806,417 | 823,550 | ||
| Zhuhai Jinwan Electric | Purchase of carbon emission quota | Agreement price | 5,660,377 | - | ||
| Yudean Technology | Receipt of management service | Agreement price | 4,668,552 | 3,476,417 | ||
| Zhuhai Port | Receipt of tug services | Agreement price | 3,153,040 | - | ||
| Yudean Environmental | Purchase of carbon emission quota | Agreement price | 1,667,400 | - | ||
| Port of Yangjiang | Receipt of tug services | Agreement price | 1,479,405 | 6,862,044 | ||
| Changtan Power | Receipt of management service | Agreement price | 226,415 | 452,830 | ||
| Zhongshan Thermal | Receipt of management services | Agreement price | 179,811 | - | ||
| Yuehua Power | Receipt of training services | Agreement price | 37,800 | - | ||
| Huangpu Yuehua Human Resources | Receipt of training services | Agreement price | - | 503,322 | ||
| Yuehua Power | Purchase of goods | Agreement price | - | 672,348 | ||
| 12,983,559,936 | 15,123,400,068 | |||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 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 service (Cont'd) | |||||
| Sales of goods and rendering of services: | ||||||
| Related parties | Type of related party transaction | Pricing policies of related party transactions | 2020 | 2019 | ||
| Yudean Environmental | Revenue from sales of by-products | Agreement price | 285,359,248 | 216,576,868 | ||
| Shajiao C | Provision of maintenance and repair services | Agreement price | 40,896,696 | 37,070,262 | ||
| Xinhui Power | Provision of maintenance and repair services | Agreement price | 16,455,650 | 8,212,669 | ||
| Yunhe Power | Provision of maintenance and repair services | Agreement price | 15,811,810 | 8,502,922 | ||
| Zhongshan Thermal | Provision of maintenance and repair services | Agreement price | 8,936,678 | 4,856,637 | ||
| Yunhe Power | Income from transferring coal | Agreement price | 7,492,247 | 12,285,018 | ||
| Liquefied Natural Gas | Provision of management services | Agreement price | 5,308,777 | 336,826 | ||
| Yuehua Power | Sales of carbon emission quota | Agreement price | 4,680,226 | - | ||
| Qujiang Yudean New Energy | Provision of maintenance and repair services | Agreement price | 4,073,378 | 2,925,656 | ||
| GEGC | Provision of emergency rescue services | Agreement price | 3,773,585 | - | ||
| GEGC | Provision of custody services | Agreement price | 2,311,321 | 2,311,321 | ||
| Yudean New Energy | Provision of maintenance and repair services | Agreement price | 2,118,186 | 1,662,684 | ||
| Port of Shaoguan | Provision of labour sharing services | Agreement price | 1,221,342 | - | ||
| Huizhou New Energy | Provision of maintenance and repair services | Agreement price | 666,331 | 589,224 | ||
| Deqing New Energy | Provision of maintenance and repair services | Agreement price | 557,677 | - | ||
| Environmental Protection Materials | Provision of maintenance and repair services | Agreement price | 263,931 | 188,522 | ||
| Zhongshan Thermal | Provision of labour sharing services | Agreement price | 46,045 | - | ||
| Zhuhai Jinwan Electric | Provision of maintenance and repair services | Agreement price | - | 928,889 | ||
| Zhongshan Thermal | Provision of training services | Agreement price | - | 55,175 | ||
| Xinhui Power | Provision of training services | Agreement price | - | 20,806 | ||
| 399,973,128 | 296,523,479 | |||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 8 | Related parties and related party transactions (Cont'd) | |||||
| (5) | Related party transactions (Cont'd) | |||||
| (b) | Purchase of electric power | |||||
| Related parties | 2020 | 2019 | ||||
| Guanghe Power | 149,370,796 | 3,357,310 | ||||
| Guangzhu Power | 122,451,327 | - | ||||
| Zhuhai Jinwan Electric | 117,292,035 | 101,801,931 | ||||
| Zhongshan Thermal | 85,318,584 | - | ||||
| Yuehua Power | 64,530,973 | 14,242,042 | ||||
| Xinhui Power | 54,472,212 | - | ||||
| Yunhe Power | 54,407,080 | 89,787,026 | ||||
| Yuelong Power | 27,212,389 | 20,526,897 | ||||
| Yunfu B | 24,406,903 | - | ||||
| 699,462,299 | 229,715,206 | |||||
| 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: | |||||
| Name of lessor | Type of the leased assets | Leasing payment recognised in 2020 | Leasing payment recognised in 2019 | ||
| Yudean PI | Housing rental | 2,478,539 | 7,847,192 | ||
| Yudean PM | Housing rental | 812,937 | 2,814,448 | ||
| Yudean PI | Billboard rental | 760,686 | 760,686 | ||
| Port of Yangjiang | Land lease | 354,667 | - | ||
| 4,406,829 | 11,422,326 | ||||
| Lease income recognised by the Group as the lessor: | |||||
| Name of lessee | Type of the leased assets | Lease income recognised in 2020 | Lease income recognised in 2019 | ||
| Yudean PM | Housing rental | 669,793 | 228,986 | ||
| Yudean Shipping | Housing rental | 647,706 | 572,844 | ||
| Port of Shaoguan | Housing rental | 255,954 | - | ||
| Shajiao C | Housing rental | 85,714 | - | ||
| Qujiang Yudean New Energy | Housing rental | 31,905 | 31,615 | ||
| 1,691,072 | 833,445 | ||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 8 | Related parties and related party transactions (Cont'd) | ||||
| (5) | Related party transactions (Cont'd) | ||||
| (d) | Guarantees | ||||
| The Group as the guaranteed party: | |||||
| Guarantor | Guaranteed amount | Starting date | Maturity date | Whether the guarantee has been fulfilled or not | |
| GEGC | - | 14/08/2013 | 13/08/2022 | Yes | |
| The Group as the guarantor | |||||
| Guaranteed party | Guaranteed amount | Starting date | Maturity date | Whether the guarantee has been fulfilled or not | |
| GEGC (i) | 323,062,987 | 03/12/2019 | 15/09/2043 | No | |
| (i) | In order to perform the Loan Agreement for the Guangdong Yudean Yangjiang Shapa offshore wind power project signed between the People's Republic of China (“PRC”) and New Development Bank (“NDB”) (“Loan Agreement with NDB”) on 3 December 2019, Project Agreement signed between NDB and People’s Government of Guangdong Province (“provincial government”) (“Project Agreement with NDB”), Loan Transfer Agreement signed between the Ministry of Finance and the provincial government (“Loan Transfer Agreement with the Ministry of Finance”) and Loan Transfer Agreement signed between the Department of Finance of Guangdong Province and GEGC (“Loan Transfer Agreement with the Department of Finance of Guangdong Province”), Yangjiang Wind Power signed Loan Transfer Agreement with GEGC (Loan Transfer Agreement with GEGC) in 2020, specifying that GEGC shall transfer loans of RMB 2,000,000,000 (“Project Loan”) to Yangjiang Wind Power; meanwhile, the Company signed a joint liability guarantee contract with GEGC, specifying that the Company provides joint liability guarantee for all liabilities of Yangjiang Wind Power under the Loan Transfer Agreement with GEGC on behalf of GEGC to the Department of Finance of Guangdong Province from 3 December 2019 to 15 September 2043, and the guarantee scope includes but not limited to principal and interest. As at 31 December 2020, Yangjiang Wind Power borrowed credit loan of RMB 322,804,259 from NDB, with interests payable of RMB 258,728. |
| The above Project Loan was transferred to the provincial government by the Ministry of Finance under the country’s authorisation according to the same loan conditions, then transferred to GEGC by the Department of Finance of Guangdong Province under the provincial government’s authorisation, and finally transferred to Yangjiang Wind Power by GEGC. The above Project Loan was actually provided in entrusted payment. The cash would not flow through the bank accounts of the Ministry of Finance, Department of Finance of Guangdong Province and GEGC, and Yangjiang Wind Power, the actual debtor of the Project Loan, directly withdrew and repaid the loan through its account of NDB. The Project Loan was guaranteed by the Company for GEGC, and actually the Company provided guarantee for the Project Loan obtained by Yangjiang Wind Power from NDB. Therefore, after consulting the Company’s legal adviser, management considered that joint liability guarantee provided by the Group for GEGC would not constitute GEGC’s occupation of the Group’s funds. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 8 | Related parties and related party transactions (Cont'd) |
| (5) | Related party transactions (Cont'd) |
| (e) | (d) Lending among related parties |
| (i) | According to the 2020 Framework Agreement on Financial Services between the Company and Energy Group Finance Company, Energy Group Finance Company is committed to offering the Group a credit line of no more than RMB 22,000,000,000 in 2020. In 2020, the Group borrowed a total of RMB 10,080,730,830 (2019: RMB 8,214,032,898) from Energy Group Finance Company based on actual capital requirement. The Group paid an interest of RMB 319,343,819 (2019: RMB 333,661,466) for such borrowings (Note 8(5)(h)). |
| (ii) | In 2020, the net increase of the Group’s deposits in Energy Group Finance Company was RMB 307,671,883 (2019: a net decrease of RMB 510,103,873), and the net increase of the Group’s other cash balances deposited in Energy Group Finance Company was RMB 592,681 (2019: Nil). Interest due from Energy Group Finance Company amounted to RMB 72,142,386 (2019: RMB 63,274,596) (Note 8(5)(g)). 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(22), according to the three-party agreement signed among the Group, Energy Group Finance Company and Industry Fuel, the amount of the notes issued to Industry Fuel by the Group and discounted with Energy Group Finance Company represents the amount payable to Energy Group Finance Company. Given the frequent transactions, only the net change of the balance of commercial acceptance notes discounted with Energy Group Finance Company as at 31 December is disclosed. As at 31 December 2020, the net amount of Energy Group Finance Company’s discounting of acceptance notes issued by the Group to Industry Fuel decreased by RMB 257,007,454 (31 December 2019: the net amount increased by RMB 216,838,893). In 2020, the discounting interest charged by Energy Group Finance Company and borne by the Group which was included in the discounting interest expenses in the current year amounted to RMB 25,427,149 (2019: RMB 28,961,757) (Note 8(5)(h)). |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 8 | Related parties and related party transactions (Cont'd) |
| (5) | Related party transactions (Cont'd) |
| (e) | Lending among related parties (Cont'd) |
| (iv) | Based on the Framework Agreement on Financial Lease between the Company and Energy Finance Leasing company in 2020, Energy Finance Leasing company is committed to offering the Group a credit line of no more than RMB 10 billion, which is reusable during the one-year agreement period. In 2020, the balance of the Group’s long-term payables of finance lease through leaseback was RMB 1,000,444,757 (2019: RMB 537,407,741), and the finance lease payment was RMB 120,828,010 (2019: RMB 111,825,155) (Note 8(5)(i)). |
| (f) | Allocation of common expenses |
| The Company’s branches Shajiao A and Shajiao C agreed to share common expenses based on their agreed allocation percentage. In 2020, the common expenses received by the Group from Shajiao C was RMB 4,296,622 (2019: RMB 1,945,185). |
| (g) | Interest income | ||||
| Related parties | Type of related party transactions | 2020 | 2019 | ||
| Energy Group Finance Company | Interest on deposits | 72,142,386 | 63,274,596 | ||
| (h) | Interest expenses | ||||
| Related parties | Type of related party transactions | 2020 | 2019 | ||
| Energy Group Finance Company | Interest on borrowings | 319,343,819 | 333,661,466 | ||
| Energy Group Finance Company | Notes discount charges | 25,427,149 | 28,961,757 | ||
| 344,770,968 | 362,623,223 | ||||
| (i) | Interest payments | ||||
| Related parties | Type of related party transactions | 2020 | 2019 | ||
| Energy Financial Leasing Company | Finance lease interest | 120,828,010 | 111,825,155 | ||
| In 2020, the loans provided by Energy Group Finance Company to the Group carried an annual interest rate from 3.05% to 4.41% (2019: from 3.92% to 4.90%). | |||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 8 | Related parties and related party transactions (Cont'd) | |
| (5) | Related party transactions (Cont'd) | |
| (j) | Joint investment | |
| As at 31 December 2020, subsidiaries, joint ventures and associates jointly invested by the Group and GEGC were listed below: | ||
| Percentage of equity attributable to GEGC | ||
| Energy Thermal | 30.12% | |
| Bohe Energy | 33.00% | |
| Energy Group Finance Company | 65.00% | |
| Industry Fuel | 50.00% | |
| Shanxi Yudean Energy | 60.00% | |
| GEG Property Insurance | 51.00% | |
| Western Investment | 35.00% | |
| Energy Financial Leasing Company | 50.00% | |
| (k) | Remuneration of key management | ||||
| 2020 | 2019 | ||||
| Remuneration of key management | 5,314,399 | 4,558,580 | |||
| (6) | Receivables from and payables to related parties | ||||
| Receivables from related parties: | |||||
| 31 December 2020 | 31 December 2019 | ||||
| Cash at bank and on hand | Energy Group Finance Company | 4,776,279,403 | 4,468,014,839 | ||
| Accounts receivable | Shajiao C | 8,344,661 | 901,427 | ||
| Xinhui Power | 6,361,157 | 1,706,822 | |||
| Yunhe Power | 3,282,711 | 3,123,537 | |||
| Zhongshan Thermal | 2,036,029 | 846,660 | |||
| Qujiang Yudean New Energy | 1,282,820 | 1,699,980 | |||
| Yudean New Energy | 1,316,666 | 941,609 | |||
| Huizhou New Energy | 438,382 | 577,717 | |||
| Port of Shaoguan | 1,542 | - | |||
| 23,063,968 | 9,797,752 | ||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 8 | Related parties and related party transactions (Cont'd) | ||||
| (6) | Receivables from and payables to related parties (Cont’d) | ||||
| Receivables from related parties (Cont'd): | |||||
| 31 December 2020 | 31 December 2019 | ||||
| Contract assets | Qujiang Yudean New Energy | 566,660 | — | ||
| Xinhui Power | 549,950 | — | |||
| Zhongshan Thermal | 482,939 | — | |||
| Huizhou New Energy | 255,311 | — | |||
| Shajiao C | 331,627 | — | |||
| 2,186,487 | — | ||||
| Other receivables | Yudean Environmental | 76,071,143 | 69,568,758 | ||
| Energy Group Finance Company | 27,301,568 | 20,866,069 | |||
| GEGC | 2,311,321 | 2,311,321 | |||
| Yudean PI | 1,715,273 | 1,536,942 | |||
| Shajiao C | 1,580,829 | 1,371,603 | |||
| Yudean PM | 1,006,188 | 466,572 | |||
| Yudean Shipping | 110,400 | 576,400 | |||
| Zhongshan Thermal | 46,045 | - | |||
| Liquefied Natural Gas | - | 329,096 | |||
| 110,142,767 | 97,026,761 | ||||
| Advances to suppliers | Industry Fuel | 555,574,836 | 455,412,330 | ||
| Zhuhai Port | 4,118,339 | - | |||
| Shenzhen Tianxin | 45,487 | - | |||
| 559,738,662 | 455,412,330 | ||||
| Other non-current assets | Yudean Technology | 700,000 | 700,000 | ||
| As at 31 December 2020 and 31 December 2019, the Group made no provision for bad debts of receivables from related parties. | |||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 8 | Related parties and related party transactions (Cont'd) | ||||
| (6) | Receivables from and payables to related parties (Cont’d) | ||||
| Payables to related parties: | |||||
| 31 December 2020 | 31 December 2019 | ||||
| Notes payable | Energy Group Finance Company | 612,992,546 | 870,000,000 | ||
| Accounts payable | Industry Fuel | 2,003,569,440 | 1,638,254,539 | ||
| Guangdong Energy Natural Gas | 63,883,147 | 222,256,982 | |||
| Yudean Environmental | 43,445,926 | 28,147,157 | |||
| Yudean Shipping | 2,300,000 | 2,300,000 | |||
| Yudean PM | 1,675,376 | 8,044,985 | |||
| Xinhui Power | 128,964 | - | |||
| Yudean Technology | - | 92,000 | |||
| 2,115,002,853 | 1,899,095,663 | ||||
| Other payables | Huangpu Power Engineering | 5,696,988 | 8,327,106 | ||
| Yudean PM | 757,262 | 1,568,761 | |||
| Yudean Technology | 433,460 | 959,440 | |||
| Port of Yangjiang | 372,400 | - | |||
| Zhongshan Thermal | 345,486 | - | |||
| Yudean Shipping | 200,000 | - | |||
| Yudean Environmental | 132,864 | 766,080 | |||
| Changtan Power | 120,000 | - | |||
| Shenzhen Tianxin | 70,000 | - | |||
| Qujiang Yudean New Energy | 9,000 | 9,000 | |||
| Yudean PI | 2,305 | - | |||
| 8,139,765 | 11,630,387 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 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 2020 | 31 December 2019 | ||||
| Short-term borrowings | |||||
| Energy Group Finance Company | |||||
| - Principal | 4,583,000,000 | 4,115,000,000 | |||
| - Interest | 4,920,173 | 4,893,053 | |||
| 4,587,920,173 | 4,119,893,053 | ||||
| Current portion of non-current liabilities | |||||
| Energy Group Finance Company | |||||
| - Principal | 181,449,280 | 249,872,476 | |||
| - Interest | 4,503,373 | 4,153,303 | |||
| 185,952,653 | 254,025,779 | ||||
| Energy Financial Leasing Company | 11,337,912 | - | |||
| Long-term borrowings | |||||
| Energy Group Finance Company | |||||
| - Principal | 3,381,849,374 | 2,765,740,493 | |||
| 31 December 2020 | 31 December 2019 | ||||
| Long-term payables | Energy Financial Leasing Company | 2,643,768,496 | 1,667,026,669 | ||
| GEGC | - | 12,217,551 | |||
| 2,643,768,496 | 1,679,244,220 | ||||
| Part of information on short-term borrowings and long-term borrowings obtained from related parties is disclosed in Notes 4(21), 4(28) and 4(30); details on notes payable discounted by Energy Group Finance Company is disclosed in Note 4(22); details on long-term payables provided by Energy Financial Leasing Company is disclosed in Note 4(32)(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. | |||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 8 | Related parties and related party transactions (Cont'd) | ||||
| (7) | Commitments in relation to related parties | ||||
| Leases | |||||
| 31 December 2020 | 31 December 2019 | ||||
| - As lessee | |||||
| Yudean PI | 36,129,730 | 11,465,806 | |||
| Yudean PM | 1,256,363 | 1,286,668 | |||
| 37,386,093 | 12,752,474 | ||||
| (8) | Investment commitments | ||||
| Pursuant to the Proposal on Capital Increase in Guangdong Power Industry Fuel Co., Ltd. approved by the Board of Directors on 21 December 2020, the Company was permitted to make a capital increase of RMB 180,000,000 to Industry Fuel at its original proportion of shareholding. As at 31 December 2020, the capital increase had not been paid (Note 10(3)(s)). | |||||
| 9 | Contingencies |
| (1) | As at 31 December 2020, the Company provided joint guarantee for bank borrowings amounting to RMB 60,320,000 for Yunnan Baoshan Binlangjiang Hydroelectricity Development Co., Ltd., of which the liability relief procedure is being handled. |
| (2) | On 31 December 2014, in response to the occupation of 15.0202 hectares of paddy fields during the construction of Dapu Electric’s engineering project (Phrase I), Dapu Power Plant had paid paddy fields cultivation fund of RMB 3,965,332 in full as required by the Ministry of Land and Resources and Guangdong Provincial Department of Natural Resources. However, on 29 June 2020, the Department of Natural Resources of Dapu County issued a letter to Dapu Electric, requiring Dapu Electric to pay additional fields cultivation fund of RMB 10,679,362 according to relevant regulations of paddy fields cultivation in 2016. However, according to the suggestion of legal adviser, Dapu Electric considered that the above relevant regulations were not applicable. As at the issuance date of the report, the two parties were still negotiating on that matter. According to the suggestion of legal adviser, management of the Group could not estimate the negotiation result, thus no expenses related to the occupation of paddy fields were presented in the financial statements for the year ended 31 December 2020. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 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 2020 | 31 December 2019 | |||
| Buildings and power generation equipment | 15,285,913,171 | 13,735,070,950 | ||
| 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 2020 | 31 December 2019 | |||
| Within 1 year | 37,385,858 | 24,818,237 | ||
| 1 to 2 years | 17,091,790 | 5,159,843 | ||
| 2 to 3 years | 5,412,749 | 1,681,275 | ||
| Over 3 years | 7,187,809 | 6,578,799 | ||
| 67,078,206 | 38,238,154 | |||
| (3) | Investment commitments |
| (a) | The Ninth Session of the Board approved the Proposal on the Investment in and Construction of Dongguan Ningzhou Site Alternative Power Project during its 3rd communication meeting on 10 April 2020. The Board gave permission to Binhai Bay Company (the main part of investment) for investment in and construction of Dongguan Ningzhou Site Alternative Power Project, and the installation capacity of the project was gas-steam cooling thermal and power cogeneration unit of 3×700MW. The dynamic investment for the project amounted to RMB 5,927,600,000, including a capital fund of RMB 1,185,520,000. As at 31 December 2020, the Company had made a capital contribution of RMB 570,000,000 to Binhai Bay Company, including a contribution of 300,000,000 made in the current year. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 10 | Commitments (Cont’d) |
| (3) | Investment commitments (Cont’d) |
| (b) | The Ninth Session of the Board approved the Proposal on Investment in and Construction of Zhuhai Jinwan Offshore Wind Power Project during its 7th meeting on 25 January 2019. For the purpose of scaling up the Company’s offshore wind power in Guangdong Province and the southeast coast, the Board approved the Company’s investment in Zhuhai Jinwan Offshore Wind Power Project with a total dynamic investment of RMB 5,643,170,000, including a capital fund of RMB 1,128,634,000. In 2020, the Company made a capital contribution of RMB 350,000,000 to the project, with a total capital contribution of RMB 615,000,000. |
| (c) | The Ninth Session of the Board approved the Proposal of Investment in and Construction of Zhanjiang Wailuo Offshore Wind Power Project (Phase I) during its 1st communication meeting on 23 March 2018. 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 198 MW, and the total investments hit RMB 3,739,450,000. The capital fund was recorded as RMB 747,890,000 at a proportion of 20%. As at 31 December 2020, the Company made a total capital contribution of RMB 600,000,000 to the project and in 2020 the Company did not increase capital. |
| (d) | The Ninth Session of the Board approved the Proposal on Capital Increase and Share Expansion of Guangdong Yudean Bohe Coal Power Co., Ltd. during its 2nd communication meeting on 19 September 2018. In order to drive the integration project of Bohe Energy and meet the capital requirements of the protective resumption of Bohe Energy, the Board agreed the capital injection to the Company’s wholly-owned subsidiary, Bohe Energy. The Company and GEGC should make capital injection to Bohe Energy with a total amount of RMB 3,980,000,000 in targeted proportion of 67% and 33% of the shareholding. As at 31 December 2020, the Company had increased a total capital of RMB 938,000,000 to Bohe Energy, and in 2020 the Company did not increase capital. |
| (e) | The Ninth Session of the Board approved the Proposal of Investment in Construction of Zhanjiang Wailuo Offshore Wind Power Project (Phase II) during its 1st communication meeting on 23 March 2018 and the Proposal of Investment in Construction of Zhanjiang Wailuo Offshore Wind Power Project (Phase II) during its 9th meeting on 29 August 2019. The Board gave permission to the Company’s wholly-owned subsidiary Qujie Wind Power for the investment of Wailuo Phase II, which was deemed as the main part of investment. The total dynamic investment for the project amounted to RMB 3,789,120,000, including a capital fund of RMB 757,824,000. In 2020, the Company made a capital increase of RMB 130,000,000. As at 31 December 2020, the Company had made a total capital increase of RMB 178,000,000 to the project. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 10 | Commitments (Cont’d) |
| (3) | Investment commitments (Cont’d) |
| (f) | 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 the Company’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 total dynamic investment was RMB 5,963,270,000, and the capital fund was calculated as RMB 1,192,660,000 at a proportion of 20%. As at 31 December 2020, the Company had made a total capital contribution of RMB 505,000,000 to the project, including a supplementary contribution of RMB 50,000,000 made in the current year. |
| (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 of SCG’s strategic development, the Company was allowed to increase capital of RMB 213,034,000 to SCG at an equity proportion of 3.67% under the written approval of State-owned Assets Supervision and Administration Commission of the People's Government of Shenzhen Municipal. The amounts of RMB 65,135,200, RMB 78,162,240 and RMB 69,736,560 have been injected in 2018, 2019 and 2020 respectively. As at 31 December 2020, the Company had made a total capital contribution of RMB 213,034,000 and completed its capital increase commitment. |
| (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 of 67%. 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 95,090,000, RMB 103,578,300 and RMB 29,114,500 respectively in 2017, 2018 and 2019. As at 31 December 2020, the Company had injected a total capital fund of RMB 227,782,800, with no contribution made in the current year. |
| (i) | The Ninth Session of the Board approved the Proposal on Investment in and Construction of Zhanjiang Xinliao Offshore Wind Power Project during its 6th communication meeting on 28 November 2019. The Board agreed Qujie Wind Power’s investment (as the main part of the investment in the project) in construction and operation of Zhanjiang Xinliao Offshore Wind Power Project with a total dynamic investment of RMB 3,698,880,000. The capital fund was recorded as RMB 739,776,000 at a proportion of 20%. In 2020, the Company injected RMB 230,000,000. As at 31 December 2020, the Company made a total capital contribution of RMB 270,000,000. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 10 | Commitments (Cont’d) |
| (3) | Investment commitments (Cont’d) |
| (j) | The Ninth Session of the Board approved the Proposal on Accelerating Guangdong Yudean Dapu Power Plant Project (Phrase II) during its 15th meeting on 12 October 2020. The Board gave permission to the subsidiary Dapu Electric for part of substantive work of the project. The project investment in 2020 was limited to RMB 317,100,000, which was provided to Dapu Electric by the Company through capital increase based on actual construction progress. In 2020, no contribution was made to Dapu Electric. |
| (k) | The Eighth Session of the Board approved the Proposal on the Establishment of Hunan Tongdao Dong Autonomous County Dagaoshan Wind Power Project Company during its 14th meeting on 25 October 2016 and the Proposal on the Construction of Hunan Tongdao Dagaoshan Wind Power Plant Project during its 3rd communication meeting on 10 April 2020. The Board gave permission to the Company’s subsidiary Tongdao Company for the investment in and construction of the Tongdao Dagaoshan wind power project and the installation capacity of the project was 50MW. The total dynamic investment was RMB 531,740,000, including a capital fund of RMB 106,348,000 (accounting for 20% of the total dynamic investment). In 2020, the Company injected RMB 50,000,000. As at 31 December 2020, the Company made a total capital contribution of RMB 60,000,000. |
| (l) | The Ninth Session of the Board approved the Proposal on the Investment in and Construction of Guangxi Wuxuan Wind Power Plant Project (Phrase I) during its 6th communication meeting on 28 November 2019. The total investments of the project hit RMB 482,580,000 (including investment in self-construction of outgoing circuit), including a capital fund of RMB 96,516,000. In 2020, the Company injected RMB 50,000,000 to Guangdong Wind Power. |
| (m) | The Ninth Session of the Board approved the Proposal on Investment in and Construction of Hunan Xupu Sun Mountain Wind Power Plant Project during its 3rd communication meeting on 10 April 2020. The Board gave permission to Guangdong Wind Power for the investment in and construction of the project. The installation capacity of the project was 50MW, and the total dynamic investment was RMB 524,532,900 (including investment in self-construction of outgoing circuit), including a capital fund of RMB 104,906,580 (accounting for 20% of the total dynamic investment). In 2020, the Company injected RMB 50,000,000 to Guangdong Wind Power. As at 31 December 2020, the Company made a total capital contribution of RMB 50,000,000. |
| (n) | The Ninth Session of the Board approved the Proposal of Capital Increase in Guangdong Province Wind Power Generation Co., Ltd. during its 14th meeting on 26 August 2020. The Board gave permission to the Company’s wholly-owned subsidiary Guangdong Wind Power for the acquisition of 100% equity of Dunan New Energy in the form of pre-acquisition in principle. The total investments in the acquisition should be no more than RMB 800,000,000. The deposit for the equity acquisition amounted to RMB 80,000,000, which was paid by the Company for Guangdong Wind Power in the form of capital injection. In 2020, the Company injected RMB 80,000,000 to Guangdong Wind Power, and Guangdong Wind Power had paid the deposit of RMB 80,000,000 for the equity acquisition (Note 4(19)(c)). |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 10 | Commitments (Cont’d) |
| (3) | Investment commitments (Cont’d) |
| (o) | The Ninth Session of the Board approved the Proposal on the Investment in and Construction of Zhaoqing Dinghu Natural Gas Thermal Power Cogeneration Project during its 15th meeting on 12 October 2020. The Board gave permission to the Company’s holding subsidiary Yongan Natural Gas (as the main part of the investment in the project) for the investment in and construction of Zhaoqing Dinghu natural gas thermal power cogeneration project. The capital fund of the project was calculated as RMB 600,000,000 at 20% of the project’s total investments. The initial registered capital of Yongan Natural Gas was RMB 100,000,000, and the Company contributed RMB 90,000,000 based on its shareholding proportion of 90% in 2016. The remaining capital fund of RMB 500,000,000 for the project would be provided by the Company according to its shareholding proportion of 90% in batches based on actual construction progress and capital demand. In 2020, the Company didn’t increase registered capital. As at 31 December 2020, the Company made a total capital contribution of RMB 100,000,000. |
| (p) | The Ninth Session of the Board approved the Proposal on Acquisition of Equity of Guangdong Guangye Nanhua New Energy Co., Ltd. and Other Companies by Guangdong Wind Power during its 17th meeting on 4 December 2020. The Board gave permission to the Company’s subsidiary Guangdong Wind Power for acquisition of 10% equity of South Sea Wind Electricity with a transfer payment of RMB 70,500,870, 51% equity of Nanhua New Energy with a transfer payment of RMB 93,381,000, and 51% equity of Datang Renewable Power not exceeding the limit granted by the Board of the Company with a transfer payment of RMB 161,858,100, which would be provided to Guangdong Wind Power by the Company through capital increase. In 2020, the Company had made a capital increase of RMB 163,881,870 for the acquisition of 10% equity of South Sea Wind Electricity and 51% equity of Nanhua New Energy, and Guangdong Wind Power had paid the equity transfer price of RMB 93,381,000 for the acquisition of 51% equity of Nanhua New Energy and the equity trading margin of RMB 20,000,000 for the acquisition of 51% equity of Datang Renewable Power (Note 4(19)(b)). |
| (q) | The Ninth Session of the Board approved the Proposal on Investment in and Construction of Guangdong Yudean Nanxiong Zhu’an Village Wind Power Plant Project during its 17th meeting on 4 December 2020. The Board gave permission to the Company’s wholly-owned subsidiary Guangdong Wind Power for the investment in Guangdong Yudean Nanxiong Zhu’an Village wind power plant project (49,900 KW) as a shareholder. The total dynamic investment of the project was RMB 451,810,000, including a capital fund of RMB 90,362,000, and the remaining capital fund would be provided through bank loan financing etc. In 2020, the Company made a capital injection of RMB 10,000,000. |
| (r) | The Ninth Session of the Board approved the Proposal on Investment in and Construction of Guangdong Yudean Pingyuan Sishui Wind Power Plant Project during its 17th meeting on 4 December 2020. The Board gave permission to the Company’s wholly-owned subsidiary Guangdong Wind Power for the investment in Guangdong Yudean Pingyuan Sishui wind power plant project (40,000 KW) as a shareholder. The total dynamic investment of the project was RMB 339,480,000, including a capital fund of RMB 67,900,000. In 2020, the Company made a capital injection of RMB 40,000,000. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 10 | Commitments (Cont’d) |
| (3) | Investment commitments (Cont’d) |
| (s) | The Ninth Session of the Board approved the Proposal on Involvement in Capital of Guangdong Electric Power Industry Fuel Co., Ltd. during its 18th meeting on 21 December 2020. The Company and GEGC were allowed to increase capital of RMB 360,000,000 to Industry Fuel at the shareholding proportion for the subscription of the new registered capital of Guangdong Yudean Faneng Investment Co., Ltd. at the corresponding shareholding proportion of 20%, and the remaining capital would be raised through self-finance by Industry Fuel. The Company needed to make a capital injection of RMB 180,000,000 based on the shareholding proportion of 50%, and no capital injection was made in 2020. |
| 11 | Events after the balance sheet date |
| (1) | Statement of dividend distribution |
| According to the resolution at the Board of Directors’ meeting dated 8 April 2021, the Board suggested the Company appropriate 10% and 25% of net profit, amounting to RMB 110,901,285 and RMB 277,253,212 to the statutory surplus reserves and the discretionary surplus reserve respectively (2019: the Company appropriated RMB 77,026,584 to statutory surplus reserves and RMB 192,566,461 to discretionary surplus reserve). Meanwhile, the Board also suggested the Company distribute cash dividends of RMB 630,034,078 to its shareholders at RMB 1.2 per 10 shares (2019: the Company distributed cash dividends of RMB 630,034,078 to the shareholders at RMB 1.2 per 10 shares). The proposal is still pending for the approval of the shareholders’ meeting. The distribution of cash dividends proposed subsequent to the balance sheet date was not recognised as liabilities at the balance sheet date. | |
| (2) | Cooperation with Tumshuq City, the Third Division of Xinjiang Production and Construction Corps |
| On 23 February 2021, the Company entered into the Cooperation Framework Agreement for the Investment in 1.5 Million KW Photovoltaic Power Generation Project and Cooperation Framework Agreement for the Investment in 0.5 Million KW Wind Power Generation Project with Tumshuq City, the Third Division of Xinjiang Production and Construction Corps in Dongguan. The Company proposed to invest in and construct a photovoltaic power generation project in Tumshuq City, with a planned gross installation capacity of 1.5 million KW and an estimated total investment of RMB 6,750 million, and a wind power generation project, with a planned gross installation capacity of 0.5 million KW and an estimated total investment of RMB 3,750 million. The Company will start the project site selection within 3 months after the agreements take effect, and select its preferred site for development in phases based on resources and site conditions. The final scope of cooperation and the scale of the project construction are subject to the approval of the department with the authority to approve the renewable energy administrative license. The above-mentioned agreements enter into force from the signing date and are effective for 3 years. Within 3 months before the expiration, the validity period can be extended for another 2 years after mutual agreement. As at the date on which the financial statements were authorised for issue, the matters related to the aforementioned investments were still in discussion. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 11 | Events after the balance sheet date (Cont'd) |
| (3) | Assessment on the impact of adopting the new lease standard |
| In 2018, the Ministry of Finance revised and issued the Accounting Standard for Business Enterprises No. 21 - Lease (“new lease standard”). The Group adopted the standard from 1 January 2021. Under the new lease standard, for a lessee, no classification of an operating lease or a finance lease should be made, and almost all leases should be recognised in the balance sheet except low-value or short-term leases. As a lessee, the Group measures lease liabilities at the value of the remaining lease payments discounted using the Group’s incremental borrowing rate as of 1 January 2021 at the initial application date and recognises right-of-use assets at the amount equal to lease liabilities, with no effect on net assets of the Group. Upon evaluation, management expects that the new lease standard will not have a significant influence on the Group's financial position and performance. | |
| (4) | Significant equity acquisitions |
| (i) | On 29 December 2020, Guangdong Wind Power, a subsidiary of the Group, entered into an equity transfer agreement with Guangye Investment Group. Guangdong Wind Power intended to acquire 51% equity of Nanhua New Energy held by Guangye Investment Group, at a consideration of RMB 93,381,000. As at 31 December 2020, Guangdong Wind Power had paid the equity acquisition of RMB 93,381,000 in full amount, but the equity transaction had not been completed (Note 4(19)(b)). In January 2021, as the registration for changes of business license of Nanhua New Energy had been completed and Guangdong Wind Power had obtained substantive control over Nanhua New Energy, Nanhua New Energy became a subsidiary of Guangdong Wind Power after the business combination involving enterprises not under common control. |
| (ii) | On 31 December 2020, Guangdong Wind Power, a subsidiary of the Group, entered into an equity transfer agreement with Guangye Investment Group, intending to acquire 51% equity of Datang Renewable Power held by Guangye Investment Group, at a consideration of RMB 161,858,100. As at 31 December 2020, Guangdong Wind Power had paid the equity acquisition of RMB 20,000,000, but the equity transaction had not been completed (Note 4(19)(b)). In January 2021, Guangdong Wind Power paid the left equity acquisition of RMB 141,858,100. In March 2021, as the registration for changes of business license of Datang Renewable Power had been completed and Guangdong Wind Power had obtained substantive control over Datang Renewable Power, Datang Renewable Power became a subsidiary of Guangdong Wind Power after the business combination involving enterprises not under common control. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 12 | Financial risk |
| The Group's activities expose it to a variety of financial risks: market risk (primarily including foreign exchange risk and interest rate 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 |
| The Group’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. The Group’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 consider taking proper measures to mitigate the foreign exchange risk as appropriate. During 2020 and 2019, the Group did not enter into any forward exchange contracts or currency swap contracts. | |
| As at 31 December 2020 and 2019, the carrying amounts in RMB equivalent of the Group’s assets and liabilities denominated in foreign currencies are summarised below: |
| 31 December 2020 | ||||||||
| USD | EUR | HKD | Total | |||||
| Financial assets denominated in foreign currency - | ||||||||
| Cash at bank and on hand | 1,233 | - | 10,844 | 12,077 | ||||
| Financial liabilities denominated in foreign currency - | ||||||||
| Long-term borrowings | 52,012,914 | - | - | 52,012,914 | ||||
| Current portion of non-current liabilities | 6,809,614 | 1,089,727 | - | 7,899,341 | ||||
| 58,822,528 | 1,089,727 | - | 59,912,255 | |||||
| 31 December 2019 | ||||||||
| USD | EUR | HKD | Total | |||||
| Financial assets denominated in foreign currency - | ||||||||
| Cash at bank and on hand | 1,324 | - | 10,339 | 11,663 | ||||
| Financial liabilities denominated in foreign currency - | ||||||||
| Long-term borrowings | 62,416,979 | 1,063,810 | - | 63,480,789 | ||||
| Current portion of non-current liabilities | 7,600,549 | 2,459,075 | - | 10,059,624 | ||||
| 70,017,528 | 3,522,885 | - | 73,540,413 | |||||
| As at 31 December 2020, if the RMB had strengthened/weakened by 10% against the USD while all other variables had been held constant, the Group’s net profit would have been approximately RMB 4,411,597 (31 December 2019: approximately RMB 5,251,215) higher/lower for various financial assets and liabilities denominated in USD. As at 31 December 2020, as the Group’s financial assets and liabilities denominated in other foreign currencies were not significant, the changes in exchange rate of other foreign currencies had no significant influence on the Group. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 12 | Financial risk (Cont’d) |
| (1) | Market risk (Cont’d) |
| (b) | Interest rate risk |
| The Group’s interest rate risk mainly arises from interest bearing borrowings including 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. The Group’s interest bearing debts were mainly bank borrowings, debentures payable and long-term payables with fixed and floating interest rates, and the amounts of respective interest are as follows: |
| 31 December 2020 | 31 December 2019 | |||
| Short-term borrowings | ||||
| - Fixed interest rate | 1,810,300,000 | 750,000,000 | ||
| - Floating interest rate | 5,804,570,202 | 5,144,026,790 | ||
| 7,614,870,202 | 5,894,026,790 |
| 31 December 2020 | 31 December 2019 | |||
| Long-term borrowings and long-term borrowings due within one year | ||||
| - Floating interest rate | 20,362,134,972 | 19,345,443,393 |
| 31 December 2020 | 31 December 2019 | |||
| Debentures payable and debentures payable due within one year | ||||
| - Fixed interest rate | 2,998,243,652 | 1,536,931,768 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 12 | Financial risk (Cont’d) |
| (1) | Market risk (Cont’d) |
| (b) | Interest rate risk (Cont'd) |
| 31 December 2020 | 31 December 2019 | |||
| Long-term payables and long-term payables due within one year | ||||
| - Fixed interest rate | 90,000,000 | 90,000,000 | ||
| - Floating interest rate | 3,301,499,964 | 2,657,339,603 | ||
| 3,391,499,964 | 2,747,339,603 |
| As at 31 December 2020, the Group’s fixed interest bearing borrowings amounted to RMB 4,898,543,652 and floating interest bearing borrowings amounted to RMB 29,468,205,138 (31 December 2019: fixed interest bearing borrowings RMB 2,376,931,768, floating rate bearing borrowings RMB 27,146,809,786). | |
| The Group'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 the Group’s outstanding floating rate borrowings, and therefore could have a material adverse effect on the Group’s financial performance. The Group determines the appropriate weightings of the fixed and floating rate interest-bearing instruments based on the current market conditions and performs regular reviews and monitoring to achieve an appropriate mix of fixed and floating rate exposure. In 2020 and 2019, the Group did not hedge the interest rate risk with derivative financial instruments. | |
| As at 31 December 2020, if interest rates on the floating rate borrowings had risen/fallen by 10 basis points while all other variables had been held constant, the Group’s interest expense would have increased/decreased by approximately RMB 29,468,205 (31 December 2019: approximately RMB 27,146,810). |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 12 | Financial risk (Cont’d) |
| (2) | Credit risk |
| Credit risk of the Group mainly arises from cash at bank and on hand, accounts receivable, contract assets, other receivables, long-term receivables, etc. The carrying amount of the Group’s financial assets reflect its maximum credit exposure on the balance sheet date. | |
| The Group expects that there is no significant credit risk associated with cash at bank and on hand since they are deposited at Energy Group Finance Company, state-owned banks and other medium or large size listed banks with good reputation and high credit rating. The Group does not expect that there will be significant losses from non-performance by the counterparty. | |
| In addition, the Group has policies to limit the credit exposure on accounts receivable, contract assets, other receivables and long-term 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 31 December 2020, the Group had no significant collateral or other credit enhancements held as a result of the debtor's mortgage (31 December 2019: Nil). | |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 12 | Financial risk (Cont’d) | |||||||||||
| (3) | Liquidity risk | |||||||||||
| Cash flow forecasting is performed by each subsidiary of the Group and aggregated by the Group’s finance department in its headquarters. Cash flow forecasting is performed by each subsidiary of the Group and aggregated by the Group’s finance department in its headquarters. The Group’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 date below at their undiscounted contractual cash flows: | ||||||||||||
| 31 December 2020 | ||||||||||||
| Within 1 year | 1 to 2 years | 2 to 5 years | Over 5 years | Total | Carrying amount on balance sheet | |||||||
| Short-term borrowings | 7,769,745,442 | - | - | - | 7,769,745,442 | 7,622,427,916 | ||||||
| Notes payable | 1,092,292,546 | - | - | - | 1,092,292,546 | 1,092,292,546 | ||||||
| Accounts payable | 2,666,180,513 | - | - | - | 2,666,180,513 | 2,666,180,513 | ||||||
| Other payables | 6,775,700,584 | - | - | - | 6,775,700,584 | 6,775,700,584 | ||||||
| Other current liabilities | 3,233,675,155 | - | - | - | 3,233,675,155 | 3,217,523,576 | ||||||
| Current portion of non-current liabilities | 3,390,293,312 | - | - | - | 3,390,293,312 | 3,180,551,951 | ||||||
| Long-term borrowings | 776,041,889 | 2,033,431,263 | 6,016,134,980 | 14,530,856,178 | 23,356,464,310 | 18,998,555,568 | ||||||
| Debentures payable | 36,750,000 | 36,750,000 | 1,587,791,667 | - | 1,661,291,667 | 1,499,542,911 | ||||||
| Long-term payables (excluding payables for specific projects) | 141,996,270 | 638,514,120 | 1,401,964,107 | 1,361,383,052 | 3,543,857,549 | 3,147,011,127 | ||||||
| 25,882,675,711 | 2,708,695,383 | 9,005,890,754 | 15,892,239,230 | 53,489,501,078 | 48,199,786,692 | |||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 12 | Financial risk (Cont’d) | |||||||||||
| (3) | Liquidity risk (Cont’d) | |||||||||||
| 31 December 2019 | ||||||||||||
| Within 1 year | 1 to 2 years | 2 to 5 years | Over 5 years | Total | Carrying amount on balance sheet | |||||||
| Short-term borrowings | 6,022,575,234 | - | - | - | 6,022,575,234 | 5,904,132,791 | ||||||
| Notes payable | 1,364,236,650 | - | - | - | 1,364,236,650 | 1,364,236,650 | ||||||
| Accounts payable | 2,465,154,162 | - | - | - | 2,465,154,162 | 2,465,154,162 | ||||||
| Other payables | 4,042,117,097 | - | - | - | 4,042,117,097 | 4,042,117,097 | ||||||
| Other current liabilities | 1,923,479,414 | - | - | - | 1,923,479,414 | 1,912,282,192 | ||||||
| Current portion of non-current liabilities | 3,258,096,240 | - | - | - | 3,258,096,240 | 3,182,980,482 | ||||||
| Long-term borrowings | 713,509,561 | 2,365,490,761 | 5,697,789,922 | 12,879,252,180 | 21,656,042,424 | 16,587,103,380 | ||||||
| Debentures payable | 84,123,350 | 1,544,056,328 | - | - | 1,628,179,678 | 1,496,631,799 | ||||||
| Long-term payables (excluding payables for specific projects) | 53,373,448 | 331,964,412 | 1,613,203,370 | 915,876,405 | 2,914,417,635 | 2,413,902,547 | ||||||
| 19,926,665,156 | 4,241,511,501 | 7,310,993,292 | 13,795,128,585 | 45,274,298,534 | 39,368,541,100 | |||||||
| The Group’s available financing credit lines under agreement with the financial institutions as at balance sheet date are as follows: | |||||
| 31 December 2020 | 31 December 2019 | ||||
| Available financing credit lines under agreement with the financing institutions | 49,672,680,096 | 31,903,008,891 | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 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. |
| (1) | Assets measured at fair value on a recurring basis | |||||||
| As at 31 December 2020, 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 | |||||
| Investments in other equity instruments - | ||||||||
| Other equity investments | 393,587,145 | - | 3,154,500,870 | 3,548,088,015 | ||||
| As at 31 December 2019, 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 | |||||
| Investments in other equity instruments - | ||||||||
| Other equity investments | 408,070,373 | - | 2,734,301,000 | 3,142,371,373 | ||||
| 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 among Level 1, Level 2 and Level 3 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 Group adopts such valuation models as comparable company model in the market to evaluate the fair value of the other equity instrument of Level 3 financial assets. The Group adopts average price to book value ratio (PB), average price to earnings ratio (PE) and discounts for lack of marketability (DLOM) as major unobservable inputs for SCG, average p/e ratio, PB and DLOM. | |
| The changes in Level 3 financial assets are analysed below: |
| 31 December 2019 | Additions in the current year | Gains recognised in other comprehensive income | 31 December 2020 | |||||
| Investments in other equity instruments - | ||||||||
| Other equity investments | 2,734,301,000 | 69,736,560 | 350,463,310 | 3,154,500,870 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 13 | Fair value estimates (Cont’d) |
| (2) | Assets and liabilities not measured at fair value but disclosed |
| Financial assets and liabilities measured at amortised cost mainly include accounts receivable, other receivables, long-term receivables, 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 | |||
| The Group’s capital management policies aim to safeguard the Group’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 “shareholders’ 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 2020 and 31 December 2019, the Group's gearing ratio was as follows: | ||||
| 31 December 2020 | 31 December 2019 | |||
| Gearing ratio | 58.42% | 54.70% | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 15 | Notes to the company financial statements | ||||||||
| (1) | Accounts receivable | ||||||||
| 31 December 2020 | 31 December 2019 | ||||||||
| Accounts receivable | 173,029,247 | 209,270,013 | |||||||
| Less: Provision for bad debts | - | (20,911) | |||||||
| 173,029,247 | 209,249,102 | ||||||||
| (a) | The ageing of accounts receivable is analysed as follows: | ||||||||
| 31 December 2020 | 31 December 2019 | ||||||||
| Within 1 year | 173,029,247 | 209,270,013 | |||||||
| (b) | As at 31 December 2020, the five largest amounts of accounts receivable aggregated by debtors were summarised and analysed as follows: | ||||||||
| Amount | Provision for bad debts | % of total balance | |||||||
| Total balance of the five largest accounts receivable | 173,029,247 | - | 100.00% | ||||||
| (c) | Provision for bad debts |
| For accounts receivable, irrespective of whether a significant financing component exists, the Company measures the loss provision according to the lifetime expected credit losses. From 1 January 2020, the Company’s recognition standards and accrual methods for provision for bad debts of accounts receivable are detailed in Note 2(9). |
| (i) | As at 31 December 2020, accounts receivable for which the related provision for bad debts was provided on the grouping basis were analysed as follows: |
| Grouping 1 | |
| As at 31 December 2020, the Company’s receivables from sales of electricity amounted to RMB 173,029,247, which mainly comprised receivables from Southern Power Grid Company. Considering the favourable credit history of Southern Power Grid Company, the Company held that there was no significant credit risk arising from receivables from sales of electricity. Since the possibility of material losses due to the default by Southern Power Grid Company was extremely low, the expected credit losses for the receivables from sales of electricity was 0%. | |
| As at 31 December 2020, there was no accounts receivable categorised in Grouping 2 and 3. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 15 | Notes to the company financial statements (Cont’d) |
| (1) | Accounts receivable (Cont’d) |
| (c) | Provision for bad debts (Cont’d) |
| (ii) | In 2020, the amount of provision for bad debts of accounts receivable was RMB 0, and the amount of reversed provision for bad debts of accounts receivable was RMB 20,911, with corresponding carrying amount of RMB 2,091,149. There was no provision for bad debts of accounts receivable written off. |
| (2) | Other receivables | |||
| 31 December 2020 | 31 December 2019 | |||
| Entrusted loans receivable | 240,000,000 | 66,460,000 | ||
| Supplementary medical insurance fund receivable | 34,393,478 | 18,333,314 | ||
| Dividends receivable | 31,500,000 | 2,652,502 | ||
| Receivables from sales of by-products | 9,318,678 | 8,282,082 | ||
| Advances receivable | 3,136,509 | 7,809,969 | ||
| Interest receivable | 1,038,206 | 689,092 | ||
| Others | 9,047,525 | 4,073,484 | ||
| 328,434,396 | 108,300,443 | |||
| Less: Provision for bad debts | (209,539) | (151,165) | ||
| 328,224,857 | 108,149,278 | |||
| (a) | The ageing of other receivables is analysed as follows: | |||
| 31 December 2020 | 31 December 2019 | |||
| Within 1 year | 309,724,263 | 89,961,420 | ||
| 1 to 2 years | 1,846,749 | 18,219,316 | ||
| 2 to 3 years | 16,743,677 | - | ||
| Over 3 years | 119,707 | 119,707 | ||
| 328,434,396 | 108,300,443 | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 15 | Notes to the company financial statements (Cont’d) |
| (2) | Other receivables (Cont’d) |
| (b) | Provision for losses and changes in book balance statements |
| Stage 1 | Stage 3 | |||||||||||||
| ECLs in the following 12 months (grouping) | ECLs in the following 12 months (individual) | Sub-total | Lifetime ECLs (Credit impaired) | Total | ||||||||||
| Book balance | Provision for bad debts | Book balance | Provision for bad debts | Provision for bad debts | Book balance | Provision for bad debts | Provision for bad debts | |||||||
| 31 December 2019 | 3,287,332 | (151,165) | 105,013,111 | - | (151,165) | - | - | (151,165) | ||||||
| Increase in the current year | 4,827,746 | (87,720) | 221,100,164 | - | (87,720) | - | - | (87,720) | ||||||
| Reversal in the current year | (2,934,574) | 29,346 | (2,859,383) | - | 29,346 | - | - | 29,346 | ||||||
| 31 December 2020 | 5,180,504 | (209,539) | 323,253,892 | - | (209,539) | - | - | (209,539) | ||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 15 | Notes to the company financial statements (Cont’d) |
| (2) | Other receivables (Cont’d) |
| (b) | Provision for losses and changes in book balance statements (Cont’d) |
| As at 31 December 2020 and 2019, the Company did not have other receivables in Stage 2 or Stage 3. Other receivables at Stage 1 were analysed below: | |
| (i) | As at 31 December 2020, other receivables at Stage 1 with provision for bad debts on individual basis were analysed as follows: |
| Book balance | 12-month ECL rate | Provision for bad debts | Reason | ||||
| Entrusted loans receivable | 240,000,000 | 0.00% | - | The counterparty is the Company’s subsidiary with a historical loss rate of 0%; therefore, the expected credit loss risk is extremely low. | |||
| Supplementary medical insurance fund receivable | 34,393,478 | 0.00% | - | The counterparty is Taikang Pension, which provides custody services to the Company’s supplementary medical insurance fund; therefore, the expected credit loss risk is extremely low. | |||
| Dividends receivable | 31,500,000 | 0.00% | - | The counterparty has good credit, with a historical loss rate of 0%, and the risk of ECLs is extremely low. | |||
| Receivables from related parties | 17,360,414 | 0.00% | - | The counterparty is a related party, with a historical loss rate of 0%, and the risk of ECLs is extremely low. | |||
| 323,253,892 | - |
| As at 31 December 2019, other receivables at Stage 1 with provision for bad debts on individual basis were analysed as follows: |
| Book balance | 12-month ECL rate | Provision for bad debts | Reason | ||||
| Entrusted loans receivable | 66,460,000 | 0.00% | - | The counterparty is the Company’s subsidiary with a historical loss rate of 0%; therefore, the expected credit loss risk is extremely low. | |||
| Receivables from related parties | 20,219,797 | 0.00% | - | The counterparty is a related party, with a historical loss rate of 0%, and the risk of ECLs is extremely low. | |||
| Supplementary medical insurance fund receivable | 18,333,314 | 0.00% | - | The counterparty is Taikang Pension, which provides custody services to the Company’s supplementary medical insurance fund; therefore, the expected credit loss risk is extremely low. | |||
| 105,013,111 | - |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 15 | Notes to the company financial statements (Cont’d) |
| (2) | Other receivables (Cont’d) |
| (b) | Provision for losses and changes in book balance statements (Cont’d) |
| (ii) | As at 31 December 2020, other receivables at Stage 1 with provision for bad debts on grouping basis were analysed as follows: |
| 31 December 2020 | |||||
| Book balance | Loss provision | ||||
| Amount | Amount | Percentages | |||
| Grouping 1 | |||||
| Within 1 year | 4,827,746 | (48,276) | 1.00% | ||
| 1 to 2 years | 141,798 | (14,180) | 10.00% | ||
| 2 to 3 years | 91,253 | (27,376) | 30.00% | ||
| Over 3 years | 119,707 | (119,707) | 100.00% | ||
| 5,180,504 | (209,539) | 4.04% | |||
| As at 31 December 2019, other receivables at Stage 1 with provision for bad debts on grouping basis were analysed as follows: |
| 31 December 2019 | |||||
| Book balance | Loss provision | ||||
| Amount | Amount | Percentages | |||
| Grouping 1 | |||||
| Within 1 year | 3,076,372 | (22,333) | 1.00% | ||
| 1 to 2 years | 91,253 | (9,125) | 10.00% | ||
| Over 3 years | 119,707 | (119,707) | 100.00% | ||
| 3,287,332 | (151,165) | 4.60% | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts are stated in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 15 | Notes to the company financial statements (Cont’d) |
| (2) | Other receivables (Cont’d) |
| (c) | In 2020, the amount of provision for bad debts of other receivables was RMB 87,720 (2019: RMB 138,281), and the amount of reversed provision for bad debts of other receivables in the current year was RMB 29,346 (2019: RMB 102,476), with corresponding ending balance of RMB 2,934,574 (2019: RMB 4,433,850). There was no provision for bad debts of other receivables written off (2019: Nil). |
| (d) | As at 31 December 2020, other receivables from top five debtors in respect of outstanding balance are analysed as follows: | |||||||||
| Nature | Balance | Ageing | % of total balance | Provision for bad debts | ||||||
| Yuejiang Power | Entrusted loans receivable | 200,000,000 | Within 1 year | 60.89% | - | |||||
| Lincang Energy | Entrusted loans receivable | 40,000,000 | Within 1 year | 12.18% | - | |||||
| Taikang Pension | Supplementary medical insurance fund receivable | 34,393,478 | Within 3 years | 10.47% | - | |||||
| Sunshine Insurance | Dividends receivable | 31,500,000 | Within 1 year | 9.59% | - | |||||
| Yudean Environmental | Receivables from sales of by-products | 9,318,678 | Within 1 year | 2.84% | - | |||||
| 315,212,156 | 95.97% | - | ||||||||
| (3) | Long-term equity investments | |||||||||
| 31 December 2020 | 31 December 2019 | |||||||||
| Subsidiaries (a) | 23,169,002,222 | 21,366,889,333 | ||||||||
| Joint ventures (b) | 531,313,393 | 615,218,300 | ||||||||
| Associates (c) | 6,197,179,173 | 5,880,150,813 | ||||||||
| Less: Long-term equity investments - provision for impairment of subsidiary (a) | (1,348,124,079) | (1,251,824,079) | ||||||||
| Long-term equity investments - provision for impairment of associates (c) | (96,327,854) | (96,327,854) | ||||||||
| 28,453,042,855 | 26,514,106,513 | |||||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 15 | Notes to the company financial statements (Cont’d) |
| (3) | Long-term equity investments (Cont’d) |
| (a) | Subsidiaries |
| 31 December 2019 | Increase in investment | Provision for impairment | 31 December 2020 | Ending balance of provision for impairment loss | Declared cash dividends during the year | |||||||
| Zhanjiang Electric | 2,185,334,400 | - | - | 2,185,334,400 | - | 158,629,195 | ||||||
| Yuejia Electric | - | - | - | - | (455,584,267) | - | ||||||
| Energy Thermal | 687,458,978 | - | - | 687,458,978 | - | - | ||||||
| Jinghai Power | 1,930,395,668 | - | - | 1,930,395,668 | - | 243,200,011 | ||||||
| Zhanjiang Wind Power | 242,277,000 | - | - | 242,277,000 | - | 26,667,752 | ||||||
| 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 | - | 5,220,782 | ||||||
| Bohe Energy | 3,167,000,000 | - | - | 3,167,000,000 | - | - | ||||||
| Pinghai Power | 720,311,347 | - | - | 720,311,347 | - | 98,178,323 | ||||||
| Red Bay Power | 2,220,023,386 | - | - | 2,220,023,386 | - | 254,317,757 | ||||||
| Huizhou Natural Gas | 1,205,199,446 | - | - | 1,205,199,446 | - | 193,069,929 | ||||||
| Guangqian Electric | 1,353,153,223 | - | - | 1,353,153,223 | - | 197,181,824 | ||||||
| Yuejiang Power | 745,200,000 | 147,650,119 | - | 892,850,119 | (408,494,674) | - | ||||||
| Huadu Natural Gas | 186,550,000 | - | - | 186,550,000 | - | - | ||||||
| Dapu Electric | 1,040,000,000 | - | - | 1,040,000,000 | - | - | ||||||
| Sub-total for next page | 16,669,095,864 | 147,650,119 | - | 16,816,745,983 | (1,138,134,640) | 1,176,465,573 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 15 | Notes to the company financial statements (Cont’d) |
| (3) | Long-term equity investments (Cont’d) |
| (a) | Subsidiaries (Cont'd) |
| 31 December 2019 | Increase in investment | Provision for impairment | 31 December 2020 | Ending balance of provision for impairment loss | Declared cash dividends during the year | |||||||
| Subtotal brought forward | 16,669,095,864 | 147,650,119 | - | 16,816,745,983 | (1,138,134,640) | 1,176,465,573 | ||||||
| Guangdong Wind Power | 1,531,419,390 | 793,881,870 | - | 2,325,301,260 | - | - | ||||||
| Leizhou Wind Power | 80,800,000 | - | - | 80,800,000 | - | 13,664,526 | ||||||
| Qujie Wind Power | 919,750,000 | 360,000,000 | - | 1,279,750,000 | - | 49,824,892 | ||||||
| Power Sales | 230,000,000 | - | - | 230,000,000 | - | 17,294,844 | ||||||
| Lincang Energy | 314,000,000 | 63,300,000 | (96,300,000) | 281,000,000 | (209,989,439) | - | ||||||
| Yongan Natural Gas | 90,000,000 | - | - | 90,000,000 | - | - | ||||||
| Tongdao Company | 10,000,000 | 50,000,000 | - | 60,000,000 | - | - | ||||||
| Binhai Bay Company | 270,000,000 | 300,000,000 | - | 570,000,000 | - | - | ||||||
| Daya Bay | - | 17,600,000 | - | 17,600,000 | - | - | ||||||
| Qiming | - | 20,000,000 | - | 20,000,000 | - | - | ||||||
| Huaguoquan | - | 49,680,900 | - | 49,680,900 | - | - | ||||||
| Total | 20,115,065,254 | 1,802,112,889 | (96,300,000) | 21,820,878,143 | (1,348,124,079) | 1,257,249,835 |
| Relevant information of the Company’s subsidiaries is set out in Note 6. | |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 15 | Notes to the company financial statements (Cont’d) | |||||||||||||
| (3) | Long-term equity investments (Cont’d) | |||||||||||||
| (b) | Joint ventures | |||||||||||||
| Movements for the current year | ||||||||||||||
| 31 December 2019 | Increase in investment | Share of net profit/(loss) under equity method | Other changes in equity | Cash dividends declared | 31 December 2020 | Ending balance of provision for impairment loss | ||||||||
| Industry Fuel | 615,218,300 | 100,000,000 | 74,496,406 | (189,310,878) | (69,090,435) | 531,313,393 | - | |||||||
| (c) | Associates | |||||||||||||||||
| Movements for the current year | ||||||||||||||||||
| 31 December 2019 | Increase in investment | Share of net profit/(loss) under equity method | Share of other comprehensive income | Other changes in equity | Cash dividends declared | Provision for impairment | 31 December 2020 | Ending balance of provision for impairment loss | ||||||||||
| Taishan Electric | 2,085,355,939 | - | 79,605,330 | (54,368) | - | (275,880,313) | - | 1,889,026,588 | - | |||||||||
| Shanxi Yudean Energy | 1,644,203,546 | - | 194,928,850 | - | - | (20,000,000) | - | 1,819,132,396 | - | |||||||||
| Energy Group Finance Company | 991,882,399 | - | 89,907,325 | 18,578,841 | - | (73,161,903) | - | 1,027,206,662 | - | |||||||||
| Yudean Shipping | 448,869,593 | - | (202,710,755) | (346,984) | (4,073,741) | - | - | 241,738,113 | - | |||||||||
| GEG Property Insurance | 261,404,011 | - | 8,638,204 | - | - | (1,573,262) | - | 268,468,953 | - | |||||||||
| Western Investment | 142,443,282 | - | 2,845,271 | - | (1,269,641) | - | - | 144,018,912 | - | |||||||||
| Yangshan Zhongxinkeng Electric | 8,043,666 | - | 948,652 | - | - | (1,399,026) | - | 7,593,292 | - | |||||||||
| Jiangkeng Hydropower | 5,397,723 | - | 997,030 | - | - | (804,107) | - | 5,590,646 | - | |||||||||
| Weixin Yuntou | 196,222,800 | - | (20,630,582) | - | - | - | - | 175,592,218 | (96,327,854) | |||||||||
| Energy Financial Leasing Company | - | 521,507,353 | 976,186 | - | - | - | - | 522,483,539 | - | |||||||||
| 5,783,822,959 | 521,507,353 | 155,505,511 | 18,177,489 | (5,343,382) | (372,818,611) | - | 6,100,851,319 | (96,327,854) | ||||||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
- 304 -
| 15 | Notes to the company financial statements (Cont’d) | ||||||||||
| (4) | Revenue and cost of sales | ||||||||||
| 2020 | 2019 | ||||||||||
| Revenue from main operations | 1,130,337,474 | 2,143,735,733 | |||||||||
| Revenue from other operations | 91,259,553 | 66,034,845 | |||||||||
| 1,221,597,027 | 2,209,770,578 | ||||||||||
| 2020 | 2019 | ||||||||||
| Cost of sales from main operations | 1,159,450,238 | 2,091,084,312 | |||||||||
| Cost of sales from other operations | 2,176,800 | 1,730,508 | |||||||||
| 1,161,627,038 | 2,092,814,820 | ||||||||||
| (a) | Revenue and cost of sales from main operations | ||||||||||
| 2020 | 2019 | ||||||||||
| Revenue from main operations | Cost of sales from main operations | Revenue from main operations | Cost of sales from main operations | ||||||||
| Revenue from sales of electricity | 1,130,337,474 | 1,159,450,238 | 2,119,577,250 | 2,076,001,460 | |||||||
| Revenue from steam | - | - | 24,158,483 | 15,082,852 | |||||||
| 1,130,337,474 | 1,159,450,238 | 2,143,735,733 | 2,091,084,312 | ||||||||
| (b) | Revenue and cost of sales from other operations | |||||||
| 2020 | 2019 | |||||||
| Revenue from other operations | Cost of sales from other operations | Revenue from other operations | Cost of sales from other operations | |||||
| Revenue from integrated utilisation of coal ash | 35,423,067 | 5,311 | 27,522,105 | 158,629 | ||||
| Rental income | 9,706,568 | 1,010,171 | 10,246,319 | 1,126,277 | ||||
| Others | 46,129,918 | 1,161,318 | 28,266,421 | 445,602 | ||||
| 91,259,553 | 2,176,800 | 66,034,845 | 1,730,508 | |||||
| (c) | The breakdown of revenue earned in 2020 are as follows: | |||||||
| 2020 | |||||
| Sales of electricity and coal ash | Rental expenses | Others | Total | ||
| Revenue from main operations | |||||
| Including: Recognised at a point | 1,130,337,474 | - | - | 1,130,337,474 | |
| Recognised over a period | - | - | - | - | |
| Revenue from other operations | |||||
| Including: Recognised at a point | 35,423,067 | - | 41,562,703 | 76,985,770 | |
| Recognised over a period | - | 9,706,568 | 4,567,215 | 14,273,783 | |
| 1,165,760,541 | 9,706,568 | 46,129,918 | 1,221,597,027 | ||
| As at 31 December 2020, the Company had no performance obligation that had been contracted but not yet fulfilled. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 15 | Notes to the company financial statements (Cont’d) |
| (5) | Investment income | |||
| 2020 | 2019 | |||
| Income from long-term equity investments under cost method | 1,257,249,835 | 936,949,527 | ||
| Investment income from long-term equity investment under equity method | 230,001,917 | 58,731,138 | ||
| Investment income earned during the holding period of other equity instruments | 65,087,539 | 58,580,379 | ||
| Interest income from entrusted loans | 24,163,550 | 18,164,293 | ||
| Recovery of interest income from written off other receivables | - | 1,224,342 | ||
| Others | 361,286 | 827,264 | ||
| 1,576,864,127 | 1,074,476,943 | |||
| There is no significant restriction on the remittance of investment income to the Company. | ||||
| (6) | Losses on/(Reversal of) credit impairment losses | |||
| 2020 | 2019 | |||
| Losses on bad debts of other receivables | 58,374 | 35,805 | ||
| Reversal of losses on bad debts of accounts receivable | (20,911) | (5,895) | ||
| Recovery of written off other receivables | - | (48,647,647) | ||
| 37,463 | (48,617,737) | |||
| (7) | Asset impairment losses | |||
| 2020 | 2019 | |||
| Impairment losses on long-term equity investments | 96,300,000 | 71,317,168 | ||
| Impairment losses on fixed assets | 52,051,098 | - | ||
| Impairment losses on inventories | 13,985,244 | - | ||
| 162,336,342 | 71,317,168 | |||
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 1 | Statement of non-recurring profit or loss | |||
| 2020 | 2019 | |||
| Gains on disposal of non-current assets | 340,976,361 | 20,503,424 | ||
| Government grants recognised in profit or loss for the current period | 30,457,198 | 33,284,069 | ||
| Gains on scraping of non-current assets | 21,381,516 | 6,789,851 | ||
| Liquidation balance of enterprises with diversified businesses | 15,128,380 | - | ||
| Compensation for electricity charges during the demolition and construction period | 11,315,659 | - | ||
| Income generated where investment cost of enterprises’ acquisition of associates is less than the share of the fair value of the investee’s identifiable net assets at the time of acquisition of investment | 8,549,071 | - | ||
| Payables unnecessary to be repaid | 8,145,556 | 6,441,146 | ||
| Income generated where investment cost of the acquisition of subsidiaries in a business combination involving enterprise not under common control is less than the share of the fair value of the investee’s identifiable net assets at the time of acquisition of investment | 1,235,720 | - | ||
| Losses on scrapping of non-current assets | (23,719,197) | (14,970,579) | ||
| Penalties and overdue fines | (3,976,455) | (4,449,214) | ||
| Recovery of written off other receivables | - | 48,647,647 | ||
| Other non-operating income and expenses other than aforesaid items | 13,050,019 | 7,414,388 | ||
| 422,543,828 | 103,660,732 | |||
| Effect of income tax | (106,618,392) | (26,385,663) | ||
| Impact on minority interests (after tax) | (100,093,497) | 95,768 | ||
| 215,831,939 | 77,370,837 | |||
| Basis for preparation of statement of non-recurring profit or loss | ||||
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 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 those are not directly related to the Company’s normal course of business, also from transactions and events those even are related to the Company’s normal course of business, but will interfere with the right judgement of users of the financial statements on the Company’s operation performance and profitability due to their special nature and occasional occurrence. | |
| Non-recurring profit or loss items defined according to the definition of non-recurring profit or loss and non-recurring profit and loss items listed which are defined as recurring profit or loss items are as follows: |
| Amount of 2020 | Reasons for regarding as recurring profit or loss | ||
| VAT refund upon collection | 9,240,948 | Constant occurrence, conforming to national policies and regulations | |
| Carbon emission quota used to fulfil the emission reduction obligation | (57,470,471) | Constant occurrence, conforming to national policies and regulations |
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| 2 | Return on net assets and earnings per share | |||||||
| Return on weighted average rate net assets (%) | Earnings per share | |||||||
| Basic earnings per share | Diluted earnings per share | |||||||
| 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||
| Net profit attributable to ordinary shareholders of the Company | 6.54% | 4.77% | 0.33 | 0.22 | 0.33 | 0.22 | ||
| Net profit attributable to ordinary shareholders of the Company after deducting non-recurring profit or loss | 5.73% | 4.45% | 0.29 | 0.20 | 0.29 | 0.20 | ||
| 3 | Accounting data difference under domestic and overseas accounting standards | |||||||
| 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 | |||||||
| 2020 | 2019 | 31 December 2020 | 31 December 2019 | |||||
| Under the CASs | 1,746,280,132 | 1,146,767,033 | 27,369,995,422 | 26,178,241,077 | ||||
| Items and amounts adjusted under the IFRSs | ||||||||
| Difference in recognition of goodwill on business combination under common control (a) | - | (25,984,223) | 38,638,777 | 38,638,777 | ||||
| Difference in recognition of land use value upon business combination (a) | (630,000) | (630,000) | 16,340,000 | 16,970,000 | ||||
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
| Impact on minority interests (b) | 54,120 | 54,120 | 4,918,459 | 4,864,339 | ||||
| Under the IFRSs | 1,745,704,252 | 1,120,206,930 | 27,429,892,658 | 26,238,714,193 |
| (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. 2020 Annual Report
XIII. Documents for reference
1.Financial statements bearing the seal and signature of legal representative, financial controller and the person incharge 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, ChinaSecurities 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).