The Third Quarterly Report 2019 Guangdong Electric Power Development Co., Ltd. The Third Quarterly Report 2019 October 2019 1 The Third Quarterly Report 2019 1 Important notes The Board of Directors,the Supervisory Committee, the directors, the supervisors, and executives of the Company guarantee that there are no significant omissions, fictitious or misleading statements carried in the Quarterly Report and we will accept individual and joint responsibilities for the truthfulness, accuracy and completeness of the Quarterly Report. All of the directors presented the board meeting at which this Quarterly Report was examined. Mr. Wang Jin, Person in charge of the Company, Mr.Liu Wei , Person in charge of accounting works, Mr.Meng Fei , Chief of the accounting organ (chief of accounting ) hereby confirm the authenticity and completeness of the financial report enclosed in this report. 2 The Third Quarterly Report 2019 II. Basic information about the company I. Main financial data and indices Indicate by tick mark whether the Company needs to retroactively restate any of its accounting data. □ Yes √ No As at the end of the Changed (%)over end of As at the end of last year reporting period prev. year Gross assets(Yuan) 73,915,799,989 73,329,662,306 0.80% Net assets attributable to the shareholders of the listed company 25,285,860,007 24,227,302,288 4.37% (Yuan) Increase/decrease over Between beginning of Changed (%)over Reporting period the same period of last the year to the end of end of prev. year year(%) the report period Operating revenue(Yuan) 8,646,351,018 22.45% 21,520,532,268 2.69% Net profit attributable to the shareholders of the listed company 757,309,917 54.56% 1,338,879,300 42.61% (Yuan) Net profit after deducting of non-recurring gain/loss attributable to 719,277,830 52.65% 1,307,866,747 47.89% the shareholders of listed company (Yuan) Net cash generated from /used in -- -- 6,773,575,977 29.88% operating activities(Yuan) Basic earning per share(Yuan/Share) 0.1442 54.56% 0.2550 42.62% Diluted gains per share(Yuan/Share) 0.1442 54.56% 0.2550 42.62% Weighted average return on equity(%) 3.18% 1.10% 5.42% 1.50% Items and amount of non-current gains and losses √ Applicable □ Not applicable In RMB Amount (Year-beginning to the end of Items Notes the report period.) Non-current asset disposal Scrap loss of Power Generation assets of gain/loss(including the write-off part for -13,971,117 some subsidiaries which assets impairment provision is made) Govemment subsidy recognized in current gain and loss(excluding those closely related 7,424,991 to the Company’s business and granted under the state’s policies) It’s the bankruptcy claims by the parent company to Guangdong International Trust Switch back of provision for depreciation of and Investment Co., Ltd-that was handled account receivable which was singly taken 48,647,647 with bad debt losses in 2003, but the funds depreciation test. are now recovered and treated to offset the impairment losses of assets. 3 The Third Quarterly Report 2019 Effect on current gains/losses when a one-off adjustment is made to current gains/losses according to requirements of taxation, -250,472 accounting and other relevant laws and regulations Other non-business income and expenditures 581,676 other than the above Less: Amount of influence of income tax 10,608,181 Influenced amount of minor shareholders’ 811,991 equity (after tax) Total 31,012,553 -- For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as recurring gains and losses, it is necessary to explain the reason. □ Applicable√ Not applicable None of Non-recurring gain /loss items recorgnized as recurring gain /loss/items as defined by the information disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period. 4 The Third Quarterly Report 2019 II. Total number of shareholders at the period-end and shareholdings of top 10 shareholders 1. About Total Common Shareholders, Total Preference Shareholders with the Voting Power Recovered and the Shares Held by Top Ten Common Shareholders In shares Total preference shareholders Total number of common with the voting power 95,913 0 shareholders at the period-end recovered at the end of the reporting period(if any) Shares held by the top 10 shareholders Amount of Pledging or freezing Share tradable shares Properties of Shareholder name proportion Quantity with Status of shareholder % Conditional the shares Quantity held State-owned legal Guangdong Energy Group Co., Ltd. 67.39% 3,538,005,285 1,893,342,621 person State-owned legal China Securities Finance Co., Ltd. 2.84% 148,862,420 person Shenzhen Guangfa Electric Power Investment State-owned legal 2.22% 116,693,602 Co., Ltd. person Guangdong Electric Power Development State-owned legal 1.80% 94,367,341 Corporation person Domestic Natural Li Zhuo 0.60% 31,606,023 person Domestic Natural Zheng Jianxiang 0.44% 23,234,898 person Domestic Harbin Hali Industry Co., Ltd. Non-State owned 0.41% 21,763,533 legal person CHINA INT'L CAPITAL CORP HONG Overseas Legal 0.29% 15,316,066 KONG SECURITIES LTD person Domestic Harbin Daoli District Charity Foundation Non-State owned 0.26% 13,730,793 legal person VANGUARD EMERGING MARKETS Overseas Legal 0.25% 13,088,628 STOCK INDEX FUND person Shares held by the Top 10 Shareholders of Non-restricted shares Share type Shareholders’ Names Number of the non-restricted shares held Share type Quantity RMB Common Guangdong Energy Group Co., Ltd. 1,644,662,664 1,644,662,664 shares RMB Common China Securities Finance Co., Ltd. 148,862,420 148,862,420 shares Shenzhen Guangfa Electric Power RMB Common 116,693,602 116,693,602 Investment Co., Ltd. shares Guangdong Electric Power RMB Common 94,367,341 94,367,341 Development Corporation shares RMB Common Li Zhuo 31,606,023 31,606,023 shares 5 The Third Quarterly Report 2019 Foreign shares placed in Zheng Jianxiang 23,234,898 23,234,898 domestic exchange RMB Common Harbin Hali Industry Co., Ltd. 21,763,533 21,763,533 shares Foreign shares CHINA INT'L CAPITAL CORP placed in 15,316,066 15,316,066 HONG KONG SECURITIES LTD domestic exchange Harbin Daoli District Charity RMB Common 13,730,793 13,730,793 Foundation shares Foreign shares VANGUARD EMERGING placed in 13,088,628 13,088,628 MARKETS STOCK INDEX FUND domestic exchange The fourth largest shareholder Guangdong Electric Power Development Corporation is the Explanation on associated wholly-owned subsidiaries of the largest shareholder Guangdong Energy Group. These two relationship or concerted action of companies have relationships; whether the other shareholders have relationships or unanimous the above shareholders acting was unknown. The Fifth largest shareholder Li Zhuo holds98,700 A shares of the Company through stock account with credit transaction and guarantee and holds 31,507,323 A shares through ordinary stock account, hold 31,606,023 shares of the Company's stock totally; Note to the top 10 common The Seventh largest shareholder Harbin Hali Industry Co., Ltd. holds 820,888 A shares of the stockholders involved in margin Company through stock account with credit transaction and guarantee and holds 20,942,645 A financing & securities lending (If shares through ordinary stock account, hold 21,763,533 shares of the Company's stock totally; any) The Ninth largest shareholder Harbin Daoli District Charity Foundation holds80,187 A shares of the Company through stock account with credit transaction and guarantee and holds 13,650,606 A shares through ordinary stock account, hold 13,730,793 shares of the Company's stock totally. Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period. □ Yes √ No The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy –back agreement dealing in reporting period. 2.Total number of preferred shareholders and shareholding of top 10 preferred shareholders by the end of the report period □ Applicable √Not applicable 6 The Third Quarterly Report 2019 III. Significant Events I. Particular about large-margin change of main accounting statement item and financial index and its reason. √ Applicable □ Not applicable 1. In the first three quarters of 2019, the Company completed the combined on-gird power of 52.545 billion kWh, down 3.48% YOY, the average on-grid price in the consolidated statement was 460.60 yuan/thousands kWh (including tax, the same below), up 18.54 yuan/thousands kWh. The cost of power generation fuel was 12925.779 million yuan, a YOY decrease of 858.6669 million yuan or down 6.23%. Upon the combined effects of YOY decline of coal price, the narrowing of the market electricity price, the dividends brought by implementation of the tax reduction and fee reduction policy and the various cost controls, the Company’s power generation gross profits increased YOY, and the realized net profits attributable to the parent company in the first three quarters were 1338.8793 million yuan, a YOY increase of 42.61%. 2. The net non-operating revenues and expenses decreased 90.7962 million yuan YOY in the reporting period, a decrease of 117.35%, which was mainly due to that Xuwen company received 45.456 million yuan of insurance compensation for damage by typhoon Wilmasun and the donated fixed assets from Duojing Company received by some subsidies, resulting in high non-operating income. This year, the scrap of power generation assets of some subsidiaries generated the non-operating expenses of 13.24 million yuan. 3. The asset impairment losses decreased by 48.1976 million yuan, a decrease of 100.00%, which was mainly due to the bankruptcy claims by the parent company to Guangdong International Trust and Investment Co., Ltd-that was handled with bad debt losses in 2003, but the funds are now recovered and treated to offset the impairment losses of assets. 4. The income tax expenses increased by 256.4174 million yuan, an increase of 71.80%, which was mainly due to the better earnings by some subsidiaries this year, resulting in YOY increase of the income tax expenses. II. The progress of significant events and influence, as well as the analysis and explanation on resolving proposal. √ Applicable □ Not applicable 1. In order to improve the Company's debt structure and broaden the Company's financing channels and approved by the Company's third extraordinary shareholders’ meeting on September 19, 2019, the Company plans to publicly issue the corporate bonds of no more than RMB 4 billion and the green renewable corporate bonds of no more than RMB 4 billion. At present, the Company is carrying out the work related to the declaration and application of approval for the bonds issuance as planned. 2. During the reporting period, due to changes in work, Ms. Wen Shufei no longer served as a director of the ninth session of the board of directors of the Company, a member of the budgetary committee of the board of directors and a member of the audit committee of the board of directors; Mr. Li baobing no longer served as a supervisor of the ninth board of supervisors of the Company. The Company is currently carrying out the by-election work of 7 The Third Quarterly Report 2019 members of the board of directors and the board of supervisors in accordance with the relevant laws and regulations of the Company Law and the relevant provisions of the Company's "Articles of Association". 3. During the reporting period, Guangdong Yudean Binhai Energy Co., Ltd, a wholly-owned subsidiary of the Company, received the “Reply from the Guangdong Development and Reform Commission on the Approval of Alternative Power Source of Dongguan Ningzhou Site” (No.3309-[2019] Yuefa Reform Energy Letter), agreed to build the Dongguan Ningzhou site alternative power project. The project plans to construct three sets of 700MW class gas-steam combined cycle heat and power cogeneration unit and the supporting facilities, adopting three H-class gas-steam combined cycle heat and cooling cogeneration units. The total dynamic investment of the project is 5.928 billion yuan, of which the project capital is 1.186 billion yuan, accounting for 20% of the total investment of the project, and the loan is 4.742 billion yuan. The Company will fully promote the project construction work in accordance with the relevant requirements of the project approval documents. Announcement Date of disclosure Website for disclosure Company Bond Issuance Preplan August 31,2019 http//www.cninfo.com.cn. Green renewable corporate bond issuance preplan August 31,2019 http//www.cninfo.com.cn. Announcement About Departure of partial September 25,2019 http//www.cninfo.com.cn. Directors and Supervisors Announcement on Receiving the Approval of the September 30,2019 http//www.cninfo.com.cn. Alternative Power Project of Dongguan Ningzhou Site Progress in the implementation of share repurchase □ Applicable √ Not applicable Progress in the implementation of the reduction of the repurchased shares by means of centralized bidding □ Applicable √ Not applicable III. Commitments finished in implementation by the Company, shareholders, actual controller, acquirer, directors, supervisors, senior executives or other related parties in the reporting period and commitments unfinished in implementation at the end of the reporting period □ Applicable √Not applicable No such cases in the reporting period. IV. Securities investment √ Applicable □Not applicable In RMB Book value Purcha Sale Book value Mode of balance at Changes in Cumulative se Gain/loss of Initial amount balance at Accoun Source Security Security Stock accounting the fair value fair value amount the investment in the the end of ting of the category code Abbreviation measurem beginning of of the this changes in in the reporting cost this the reporting items shares ent the reporting period equity this period period period period period Domestic Fair value and Shenzhen Other Own-Fu 000027 15,890,628 measurem 66,150,000 6,678,000 56,937,372 630,000 72,828,000 foreign Energy assets nds ent stocks 8 The Third Quarterly Report 2019 Domestic Fair value and Other Own-Fu 600642 Shenergy 235,837,988 measurem 270,997,380 37,206,608 72,366,000 11,106,450 308,203,988 foreign assets nds ent stocks Domestic Fair value and Other Own-Fu 831039 NEEQ 3,600,000 measurem 3,618,000 2,376,000 2,394,000 360,000 5,994,000 foreign assets nds ent stocks Total 255,328,616 -- 340,765,380 46,260,608 131,697,372 0 0 12,096,450 387,025,988 -- -- Disclosure date for the notice of October 31,2018 approval by the Board (If any) Disclosure date for the notice of approval by shareholders’ Meeting (If any) V. Entrusted Financial Management □ Applicable √Not applicable There is no Entrusted Financial Management during the report period. VI. Investment in derivatives □ Applicable √Not applicable There is no derivative investment during the report period. VII. The registration form of acceptance of investigation, communication and interview in the report period for future reference √ Applicable □Not applicable Reception time Way of reception Types of visitors Basic index Details can be found in the Record Chart of the Investor Relation Activity disclosed on Juchao February 20,2019 Onsite investigation Organization website(www.cninfo.com.cn) on February 22, 2019. Details can be found in the Record Chart of the June 20,2019 Onsite investigation Organization Investor Relation Activity disclosed on Juchao website(www.cninfo.com.cn) on June 25,2019. VIII. External guarantee get out of line □ Applicable √Not applicable The Company has no external guarantee get out of the line in the Period IX. Controlling shareholder and its related parties occupying non-business capital of the listed company □ Applicable √Not applicable There are no controlling shareholder and its related parties occupying non-business capital of the listed company in Period 9 The Third Quarterly Report 2019 IV. Financial Statement I. Financial statement 1. Consolidated balance sheet Prepared by: Guangdong Electric Power Development Co., Ltd. September 30,2019 In RMB Items September 30,2019 December 31,2018 Current asset: Monetary fund 5,645,228,165 5,574,382,892 Settlement provision Outgoing call loan Transactional financial assets Financial assets measured at fair value with variations accounted into current income account Derivative financial assets Notes receivable Account receivable 3,319,154,887 3,358,331,949 Financing of receivables Prepayments 808,806,342 906,261,046 Insurance receivable Reinsurance receivable Provisions of Reinsurance contracts receivable Other account receivable 276,283,404 222,976,826 Including:Interest receivable 18,595,586 18,856,569 Dividend receivable Repurchasing of financial assets Inventories 1,865,454,356 1,481,817,270 Contract assets Assets held for sales Non-current asset due within 1 year Other current asset 256,260,503 617,853,476 Total of current assets 12,171,187,657 12,161,623,459 Non-current assets: Loans and payment on other’s behalf disbursed Debt investment Available for sale of financial assets 1,565,806,331 Other investment on bonds 10 The Third Quarterly Report 2019 Expired investment in possess Long-term receivable 91,538,867 89,762,071 Long term share equity investment 6,626,923,016 6,395,134,754 Other equity instruments investment 1,690,229,178 Other non-current financial assets Property investment 22,716,561 10,810,722 Fixed assets 39,203,194,358 41,157,594,848 Construction in progress 9,312,895,745 7,740,754,343 Production physical assets Oil & gas assets Use right assets Intangible assets 1,833,632,927 1,863,588,771 Development expenses Goodwill 2,449,886 2,449,886 Long-germ expenses to be amortized 20,089,272 22,089,179 Deferred income tax asset 444,126,914 448,431,684 Other non-current asset 2,496,815,608 1,871,616,258 Total of non-current assets 61,744,612,332 61,168,038,847 Total of assets 73,915,799,989 73,329,662,306 Current liabilities Short-term loans 6,005,383,548 7,526,000,000 Loan from Central Bank Borrowing funds Transactional financial liabilities Financial liabilities measured at fair value with variations accounted into current income account Derivative financial liabilities Notes payable 1,274,236,650 941,161,107 Account payable 2,358,732,010 2,196,600,415 Advance receipts 188,688 343,894 Contract Liabilities Selling of repurchased financial assets Deposit taking and interbank deposit Entrusted trading of securities Entrusted selling of securities Employees’ wage payable 385,459,082 235,741,179 Tax payable 700,481,232 397,001,706 Other account payable 3,891,343,831 4,152,518,495 Including:Interest payable 175,122,199 59,316,077 Dividend payable 9,796,594 9,703,930 Fees and commissions payable 11 The Third Quarterly Report 2019 Reinsurance fee payable Liabilities held for sales Non-current liability due within 1 year 2,236,596,045 2,779,347,654 Other current liability 1,505,285,967 1,107,904,110 Total of current liability 18,357,707,053 19,336,618,560 Non-current liabilities: Reserve fund for insurance contracts Long-term loan 17,848,540,420 18,802,292,664 Bond payable 1,464,189,017 838,326,742 Including:preferred stock Sustainable debt Lease liability Long-term payable 2,471,247,841 2,311,513,249 Long-term remuneration payable to 108,584,393 122,913,388 staff Expected liabilities Deferred income 131,724,820 133,043,646 Deferred income tax liability 160,171,428 100,726,841 Other non-current liabilities 166,405,569 166,405,569 Total non-current liabilities 22,350,863,488 22,475,222,099 Total of liability 40,708,570,541 41,811,840,659 Owners’ equity Share capital 5,250,283,986 5,250,283,986 Other equity instruments Including:preferred stock Sustainable debt Capital reserves 5,102,846,886 5,102,846,886 Less:Shares in stock Other comprehensive income 584,705,588 550,010,133 Special reserve Surplus reserves 8,245,767,593 7,834,155,143 Common risk provision Retained profit 6,102,255,954 5,490,006,140 Total of owner’s equity belong to the 25,285,860,007 24,227,302,288 parent company Minority shareholders’ equity 7,921,369,441 7,290,519,359 Total of owners’ equity 33,207,229,448 31,517,821,647 Total of liabilities and owners’ equity 73,915,799,989 73,329,662,306 Legal representative :Wang Jin Person-in-charge of the accounting work:Liu Wei Person-in -charge of the accounting organ:Meng Fei 12 The Third Quarterly Report 2019 2. Balance sheet of Parent Company In RMB Items September 30,2019 December 31,2018 Current asset: Monetary fund 470,938,995 385,577,463 Transactional financial assets Financial assets measured at fair value with variations accounted into current income account Derivative financial assets Notes receivable Account receivable 242,555,864 264,537,475 Financing of receivables Prepayments 46,137,800 44,826,500 Other account receivable 86,959,123 375,296,228 Including:Interest receivable 2,287,265 1,121,522 Dividend receivable 0 447,956 Inventories 195,841,833 187,058,140 Contract assets Assets held for sales Non-current asset due within 1 year Other current asset 199,679 199,679 Total of current assets 1,042,633,294 1,257,495,485 Non-current assets: Debt investment Available for sale of financial assets 1,565,806,331 Other investment on bonds Expired investment in possess Long-term receivable 306,460,000 306,460,000 Long term share equity investment 26,298,594,684 24,699,820,321 Other equity instruments investment 1,690,229,178 Other non-current financial assets Property investment 7,184,343 7,661,041 Fixed assets 771,609,143 978,022,437 Construction in progress 16,232,999 9,394,075 Production physical assets Oil & gas assets Use right assets Intangible assets 83,970,573 86,681,362 Development expenses Goodwill 13 The Third Quarterly Report 2019 Long-germ expenses to be amortized Deferred income tax asset Other non-current asset 356,004,000 356,004,000 Total of non-current assets 29,530,284,920 28,009,849,567 Total of assets 30,572,918,214 29,267,345,052 Current liabilities Short-term loans 1,500,000,000 1,500,000,000 Transactional financial liabilities Financial liabilities measured at fair value with variations accounted into current income account Derivative financial liabilities Notes payable Account payable 216,907,981 223,827,319 Advance receipts Contract Liabilities Employees’ wage payable 90,148,461 53,346,100 Tax payable 37,534,092 48,590,195 Other account payable 127,783,657 98,528,954 Including:Interest payable 51,084,354 15,787,356 Dividend payable 9,796,594 9,703,930 Liabilities held for sales Non-current liability due within 1 year 40,292,266 Other current liability 1,509,050,959 1,107,904,110 Total of current liability 3,521,717,416 3,032,196,678 Non-current liabilities: Long-term loan 1,500,000,000 1,500,000,000 Bond payable 765,137,333 838,326,742 Including:preferred stock Sustainable debt Lease liability Long-term payable 5,506,949 4,340,898 Long-term remuneration payable to 29,693,395 32,170,769 staff Expected liabilities Deferred income 48,362,943 48,362,943 Deferred income tax liability 158,906,208 99,461,621 Other non-current liabilities Total non-current liabilities 2,507,606,828 2,522,662,973 Total of liability 6,029,324,244 5,554,859,651 Owners’ equity Share capital 5,250,283,986 5,250,283,986 Other equity instruments 14 The Third Quarterly Report 2019 Including:preferred stock Sustainable debt Capital reserves 5,605,794,601 5,605,794,601 Less:Shares in stock Other comprehensive income 584,705,588 550,010,133 Special reserve Surplus reserves 8,245,767,593 7,834,155,143 Retained profit 4,857,042,202 4,472,241,538 Total of owners’ equity 24,543,593,970 23,712,485,401 Total of liabilities and owners’ equity 30,572,918,214 29,267,345,052 3.Consolidated Income statement of the Report period In RMB Items Amount in this period Amount in last period I. Turnover 8,646,351,018 7,060,929,815 Including :Operating income 8,646,351,018 7,060,929,815 Interest income Insurance fee earned Fee and commission received II. Total operating costs 7,497,679,016 6,635,830,401 Including :Operating costs 6,928,192,466 6,089,990,898 Interest expense Fee and commission paid Insurance discharge payment Net claim amount paid Appropriation of deposit for duty, net Insurance policy dividend paid Reinsurance expenses Business tax and surcharge 71,719,992 52,349,958 Sales expense 11,243,947 8,280,287 Administrative expense 174,317,245 146,494,451 R & D expense 1,289,004 598,480 Financial expenses 310,916,362 338,116,327 Including:Interest expense 319,264,192 352,800,506 Interest income 11,283,318 16,030,193 Add:Other income 6,877,778 3,525,337 Investment gain(“-”for loss) 136,008,997 231,802,229 Including: investment gains from 134,803,712 196,213,706 affiliates Financial assets measured at amortized cost cease to be recognized as income 15 The Third Quarterly Report 2019 Gains from currency exchange Net exposure hedging income Changing income of fair value Credit impairment loss Impairment loss of assets 48,197,647 Assets disposal income -3,650,548 III. Operating profit(“-”for loss) 1,339,756,424 656,776,432 Add :Non-operating income 3,309,345 33,997,213 Less: Non-operating expenses 1,790,954 7,418,728 IV. Total profit(“-”for loss) 1,341,274,815 683,354,917 Less:Income tax expenses 303,700,779 49,351,732 V. Net profit 1,037,574,036 634,003,185 (I) Classification by business continuity 1.Net continuing operating profit 1,037,574,036 634,003,185 2.Termination of operating net profit (II) Classification by ownership 1.Net profit attributable to the owners of 757,309,917 489,988,070 parent company 2.Minority shareholders’ equity 280,264,119 144,015,115 VI. Net after-tax of other comprehensive -22,817,126 13,964,804 income Net of profit of other comprehensive inco -22,817,126 13,964,804 me attributable to owners of the parent co mpany. (I)Other comprehensive income items that will not be reclassified into -22,817,126 gains/losses in the subsequent accounting period 1.Re-measurement of defined benefit pla ns of changes in net debt or net assets 2.Other comprehensive income under the equity method investee can not be reclass ified into profit or loss. 3. Changes in the fair value of -22,817,126 investments in other equity instruments 4. Changes in the fair value of the company’s credit risks 5.Other (II) Other comprehensive income that will be 13,964,804 reclassified into profit or loss. 1.Other comprehensive income under the equity method investee can be reclassifie d into profit or loss. 16 The Third Quarterly Report 2019 2. Changes in the fair value of investments in other debt obligations 3.Gains and losses from changes in fair v 13,964,804 alue available for sale financial assets 4. Other comprehensive income arising from the reclassification of financial assets 5.Held-to-maturity investments reclassifi ed to gains and losses of available for sal e financial assets 6. Allowance for credit impairments in investments in other debt obligations 7. Reserve for cash flow hedges 8. Translation differences in currency financ ial statements 9.Other Net of profit of other comprehensive inco me attributable to Minority shareholders’ equity VII. Total comprehensive income 1,014,756,910 647,967,989 Total comprehensive income attributable 734,492,791 503,952,874 to the owner of the parent company Total comprehensive income 280,264,119 144,015,115 attributable minority shareholders VIII. Earnings per share (I)Basic earnings per share 0.1442 0.0933 (II)Diluted earnings per share 0.1442 0.0933 Legal representative :Wang Jin Person-in-charge of the accounting work:Liu Wei Person-in -charge of the accounting organ:Meng Fei 4.Income statement of the Parent Company of the Report period In RMB Items Amount in this period Amount in last period I. Revenue 635,806,632 577,942,718 Including :Operating costs 594,224,355 515,284,438 Business tax and surcharge 2,450,238 3,078,514 Sales expense 422,950 524,829 Administrative expense 28,185,676 21,402,614 R & D expense 360,401 302,564 Financial expenses 52,177,490 50,695,820 17 The Third Quarterly Report 2019 Including:Interest expenses 52,540,192 52,034,315 Interest income 1,454,556 1,813,721 Add:Other income 268,463 Investment gain(“-”for loss) 223,828,335 351,302,307 Including: investment gains from 134,624,138 196,520,010 affiliates Financial assets measured at amortized cost cease to be recognized as income Net exposure hedging income Changing income of fair value Credit impairment loss Impairment loss of assets 48,647,647 Assets disposal income II. Operating profit(“-”for loss) 230,461,503 339,439,644 Add :Non-operating income 174,784 4,376,527 Less:Non -operating expenses 702,682 43,758 III. Total profit(“-”for loss) 229,933,605 343,772,413 Less:Income tax expenses -12,227,012 IV. Net profit 229,933,605 355,999,425 1.Net continuing operating profit 229,933,605 355,999,425 2.Termination of operating net profit V. Net after-tax of other comprehensive -22,817,126 13,964,805 income (I)Other comprehensive income items that will not be reclassified into -22,817,126 gains/losses in the subsequent accounting period 1.Re-measurement of defined benefit pl ans of changes in net debt or net assets 2.Other comprehensive income under th e equity method investee can not be recl assified into profit or loss. 3. Changes in the fair value of -22,817,126 investments in other equity instruments 4. Changes in the fair value of the company’s credit risks 5.Other (II) Other comprehensive income that will b 13,964,805 e reclassified into profit or loss. 1.Other comprehensive income under th e equity method investee can be reclassi fied into profit or loss. 2. Changes in the fair value of investments in other debt obligations 18 The Third Quarterly Report 2019 3. Gains and losses from changes in fair v 13,964,805 alue available for sale financial assets 4. Other comprehensive income arising from the reclassification of financial assets 5.Held-to-maturity investments reclassif ied to gains and losses of available for s ale financial assets 6. Allowance for credit impairments in investments in other debt obligations 7. Reserve for cash flow hedges 8. Translation differences in currency fina ncial statements 9.Other VI. Total comprehensive income 207,116,479 369,964,230 VII. Earnings per share (I)Basic earnings per share 0.0438 0.0678 (II)Diluted earnings per share 0.0438 0.0678 5. Consolidated Income statement between the beginning of the year and end of the report period In RMB Items Amount in this period Amount in last period I. Turnover 21,520,532,268 20,955,914,994 Including:Operating income 21,520,532,268 20,955,914,994 Interest income Insurance fee earned Commission charge and commission income II. Total operating costs 19,534,660,935 19,849,361,205 Including :Operating costs 17,952,335,942 18,290,847,325 Interest expense Fee and commission paid Insurance discharge payment Net claim amount paid Appropriation of deposit for duty,net Insurance policy dividend paid Reinsurance expenses Business tax and surcharge 165,085,350 151,882,523 Sales expense 24,088,735 18,596,417 Administrative expense 445,202,049 416,866,769 R & D expense 1,636,527 1,933,046 19 The Third Quarterly Report 2019 Financial expenses 946,312,332 969,235,125 Including:Interest expense 983,273,645 1,009,905,889 Interest income 42,944,823 45,903,200 Add:Other income 46,350,634 20,556,096 Investment gain(“-”for loss) 440,490,979 522,820,821 Including: investment gains from 408,421,926 468,618,691 affiliates Financial assets measured at amortized cost cease to be recognized as income Gains from currency exchange Net exposure hedging income Changing income of fair value Credit impairment loss -523,441 Impairment loss of assets 48,197,647 Assets disposal income -3,262,041 III. Operating profit(“-”for loss) 2,520,387,152 1,646,668,665 Add :Non-operating income 8,602,532 86,606,114 Less: Non-operating expense 22,025,650 9,233,051 IV. Total profit(“-”for loss) 2,506,964,034 1,724,041,728 Less:Income tax expenses 613,536,709 357,119,310 V. Net profit 1,893,427,325 1,366,922,418 (I) Classification by business continuity 1.Net continuing operating profit 1,893,427,325 1,366,922,418 2.Termination of operating net profit (II) Classification by ownership 1.Net profit attributable to the owners of 1,338,879,300 938,821,588 parent company 2.Minority shareholders’ equity 554,548,025 428,100,830 VI. Net after-tax of other comprehensive 34,695,456 -32,887,013 income Net of profit of other comprehensive inco 34,695,456 -32,887,013 me attributable to owners of the parent co mpany. (I)Other comprehensive income items that will not be reclassified into 34,695,456 gains/losses in the subsequent accounting period 1.Re-measurement of defined benefit pla ns of changes in net debt or net assets 2.Other comprehensive income under the equity method investee can not be reclass ified into profit or loss. 3. Changes in the fair value of 34,695,456 investments in other equity instruments 20 The Third Quarterly Report 2019 4. Changes in the fair value of the company’s credit risks 5.Other (II) Other comprehensive income that will be -32,887,013 reclassified into profit or loss. 1.Other comprehensive income under the equity method investee can be reclassifie d into profit or loss. 2. Changes in the fair value of investments in other debt obligations 3.Gains and losses from changes in fair v -32,887,013 alue available for sale financial assets 4. Other comprehensive income arising from the reclassification of financial assets 5.Held-to-maturity investments reclassifi ed to gains and losses of available for sal e financial assets 6. Allowance for credit impairments in investments in other debt obligations 7. Reserve for cash flow hedges 8. Translation differences in currency financ ial statements 9.Other Net of profit of other comprehensive inco me attributable to Minority shareholders’ equity VII. Total comprehensive income 1,928,122,781 1,334,035,405 Total comprehensive income attributable 1,373,574,756 905,934,575 to the owner of the parent company Total comprehensive income 554,548,025 428,100,830 attributable minority shareholders VIII. Earnings per share (I)Basic earnings per share 0.2550 0.1788 (II)Diluted earnings per share 0.2550 0.1788 Legal representative :Wang Jin Person-in-charge of the accounting work:Liu Wei Person-in -charge of the accounting organ:Meng Fei 6.Income Statement of the Parent Between the Beginning of the Year and End of the Report Period In RMB 21 The Third Quarterly Report 2019 Items Amount in this period Amount in last period I. Revenue 1,620,715,714 1,726,288,740 Including :Operating costs 1,572,358,236 1,598,465,653 Business tax and surcharge 8,340,931 7,693,638 Sales expense 1,098,839 1,442,447 Administrative expense 65,049,565 58,951,622 R & D expense 630,094 1,214,935 Financial expenses 153,134,251 150,768,384 Including:Interest expenses 154,449,687 152,944,226 Interest income 3,932,287 4,566,763 Add:Other income 10,000 553,359 Investment gain(“-”for loss) 1,289,334,443 1,427,022,196 Including: investment gains from 404,708,029 466,595,698 affiliates Financial assets measured at amortized cost cease to be recognized as income Net exposure hedging income Changing income of fair value Credit impairment loss -303,753 Impairment loss of assets 48,647,647 Assets disposal income 3,218,915 -32,933 II. Operating profit(“-”for loss) 1,161,011,049 1,336,509,618 Add :Non-operating income 182,626 4,503,789 Less:Non -operating expenses 1,884,087 720,426 III. Total profit(“-”for loss) 1,159,309,588 1,340,292,981 Less:Income tax expenses 47,879,436 -12,227,012 IV. Net profit 1,111,430,152 1,352,519,993 1.Net continuing operating profit 1,111,430,152 1,352,519,993 2.Termination of operating net profit V. Net after-tax of other comprehensive 34,695,456 -32,887,013 income (I)Other comprehensive income items that will not be reclassified into 34,695,456 gains/losses in the subsequent accounting period 1.Re-measurement of defined benefit pl ans of changes in net debt or net assets 2.Other comprehensive income under th e equity method investee can not be recl assified into profit or loss. 3. Changes in the fair value of 34,695,456 investments in other equity instruments 4. Changes in the fair value of the company’s credit risks 22 The Third Quarterly Report 2019 5.Other (II) Other comprehensive income that will b -32,887,013 e reclassified into profit or loss. 1.Other comprehensive income under th e equity method investee can be reclassi fied into profit or loss. 2. Changes in the fair value of investments in other debt obligations 3. Gains and losses from changes in fair v -32,887,013 alue available for sale financial assets 4. Other comprehensive income arising from the reclassification of financial assets 5.Held-to-maturity investments reclassif ied to gains and losses of available for s ale financial assets 6. Allowance for credit impairments in investments in other debt obligations 7. Reserve for cash flow hedges 8. Translation differences in currency fina ncial statements 9.Other VI. Total comprehensive income 1,146,125,608 1,319,632,980 VII. Earnings per share (I)Basic earnings per share 0.2117 0.2576 (II)Diluted earnings per share 0.2117 0.2576 7. Consolidated Cash Flow Statement Between the Beginning of the Year and End of the Report Period In RMB Items Amount in this period Amount in last period I.Cash flows from operating activities Cash received from sales of goods or 24,362,498,308 24,799,345,474 rending of services Net increase of customer deposits and capital kept for brother company Net increase of loans from central bank Net increase of inter-bank loans from other financial bodies Cash received against original insurance contract Net cash received from reinsurance business Net increase of client deposit and 23 The Third Quarterly Report 2019 investment Cash received from interest, commission charge and commission Net increase of inter-bank fund received Net increase of repurchasing business Net cash received by agent in securities trading Tax returned 58,799,293 23,986,752 Other cash received from business 243,645,593 316,000,156 operation Sub-total of cash inflow 24,664,943,194 25,139,332,382 Cash paid for purchasing of 15,275,232,014 17,204,974,896 merchandise and services Net increase of client trade and advance Net increase of savings in central bank and brother company Cash paid for original contract claim Net increase for Outgoing call loan Cash paid for interest, processing fee and commission Cash paid for policy dividend Cash paid to staffs or paid for staffs 1,131,162,005 1,129,219,428 Taxes paid 1,014,809,741 1,209,544,746 Other cash paid for business activities 470,163,457 380,282,755 Sub-total of cash outflow from business 17,891,367,217 19,924,021,825 activities Net cash generated from /used in 6,773,575,977 5,215,310,557 operating activities II. Cash flow generated by investing Cash received from investment 102,820,430 retrieving Cash received as investment gains 201,960,518 205,304,813 Net cash retrieved from disposal of fixed assets, intangible assets, and other 3,329,189 long-term assets Net cash received from disposal of subsidiaries or other operational units Other investment-related cash received Sub-total of cash inflow due to 304,780,948 208,634,002 investment activities Cash paid for construction of fixed assets, intangible assets and other 3,000,250,669 2,184,056,309 long-term assets Cash paid as investment 79,035,790 98,000,000 Net increase of loan against pledge Net cash received from subsidiaries and 24 The Third Quarterly Report 2019 other operational units Other cash paid for investment activities Sub-total of cash outflow due to 3,079,286,459 2,282,056,309 investment activities Net cash flow generated by investment -2,774,505,511 -2,073,422,307 III.Cash flow generated by financing Cash received as investment 512,000,000 4,000,000 Including: Cash received as investment 512,000,000 4,000,000 from minor shareholders Cash received as loans 10,903,258,541 10,983,650,853 Other financing –related cash received 1,038,130 1,101,067,918 Sub-total of cash inflow from financing 11,416,296,671 12,088,718,771 activities Cash to repay debts 13,544,754,488 12,117,550,767 Cash paid as dividend, profit, or 1,795,543,714 2,042,180,267 interests Including: Dividend and profit paid by 385,697,942 466,862,545 subsidiaries to minor shareholders Other cash paid for financing activities 3,335,383 139,293,933 Sub-total of cash outflow due to 15,343,633,585 14,299,024,967 financing activities Net cash flow generated by financing -3,927,336,914 -2,210,306,196 IV. Influence of exchange rate alternation on cash and cash equivalents V.Net increase of cash and cash 71,733,552 931,582,054 equivalents Add: balance of cash and cash 5,570,382,893 4,996,580,490 equivalents at the beginning of term VI ..Balance of cash and cash 5,642,116,445 5,928,162,544 equivalents at the end of term 8. Cash Flow Statement of the Parent Between the Beginning of the Year and End of the Report Period In RMB Items Amount in this period Amount in last period I.Cash flows from operating activities Cash received from sales of goods or 1,820,859,152 1,997,490,437 rending of services Tax returned Other cash received from business 46,901,686 40,391,202 operation Sub-total of cash inflow 1,867,760,838 2,037,881,639 Cash paid for purchasing of 1,338,827,716 1,612,998,291 merchandise and services Cash paid to staffs or paid for staffs 202,912,167 234,297,388 25 The Third Quarterly Report 2019 Taxes paid 70,035,488 57,690,048 Other cash paid for business activities 43,410,776 51,890,628 Sub-total of cash outflow from business 1,655,186,147 1,956,876,355 activities Net cash generated from /used in 212,574,691 81,005,284 operating activities II.Cash flow generated by investing Cash received from investment 348,864,150 187,920,000 retrieving Cash received as investment gains 1,057,794,667 1,122,385,336 Net cash retrieved from disposal of fixed assets, intangible assets, and other 6,281,001 713,237 long-term assets Net cash received from disposal of subsidiaries or other operational units Other investment-related cash received Sub-total of cash inflow due to 1,412,939,818 1,311,018,573 investment activities Cash paid for construction of fixed assets, intangible assets 26,677,506 71,096,344 and other long-term assets Cash paid as investment 1,445,721,936 951,000,000 Net cash received from subsidiaries and other operational units Other cash paid for investment activities Sub-total of cash outflow due to 1,472,399,442 1,022,096,344 investment activities Net cash flow generated by investment -59,459,624 288,922,229 III. Cash flow generated by financing Cash received as investment Cash received as loans 2,398,950,000 4,428,650,000 Other financing –related ash received 1,035,360 1,055,608 Sub-total of cash inflow from 2,399,985,360 4,429,705,608 financing activities Cash to repay debts 2,000,000,000 3,889,693,500 Cash paid as dividend, profit, or 465,720,875 595,653,843 interests Other cash paid for financing activities 2,018,021 1,696,572 Sub-total of cash outflow due to 2,467,738,896 4,487,043,915 financing activities Net cash flow generated by financing -67,753,536 -57,338,307 IV. Influence of exchange rate alternation on cash and cash equivalents V.Net increase of cash and cash 85,361,531 312,589,206 equivalents 26 The Third Quarterly Report 2019 Add: balance of cash and cash 385,577,464 429,724,538 equivalents at the beginning of term VI ..Balance of cash and cash 470,938,995 742,313,744 equivalents at the end of term II Adjustments to the Financial Statements 1. Adjustment of the relevant items of the financial statements at the current year beginning according to the new standards for financial instruments, the new standards for revenues and the new standards for lease implemented commencing from year 2019 √ Applicable □ Not applicable Consolidated balance sheet In RMB Amount involved in the Items December 31,2018 January 1,2019 adjustment Current asset: Monetary fund 5,574,382,892 5,574,382,892 Settlement provision Outgoing call loan Transactional financial assets Financial assets measured at fair value with variations accounted into current income account Derivative financial assets Notes receivable Account receivable 3,358,331,949 3,358,331,949 Financing of receivables Prepayments 906,261,046 906,261,046 Insurance receivable Reinsurance receivable Provisions of Reinsurance contracts receivable Other account receivable 222,976,826 222,976,826 Including:Interest receivable 18,856,569 18,856,569 Dividend receivable Repurchasing of financial assets Inventories 1,481,817,270 1,481,817,270 Contract assets Assets held for sales Non-current asset due within 27 The Third Quarterly Report 2019 1 year Other current asset 617,853,476 617,853,476 Total of current assets 12,161,623,459 12,161,623,459 Non-current assets: Loans and payment on other’s behalf disbursed Debt investment Available for sale of financial 1,565,806,331 -1,565,806,331 assets Other investment on bonds Expired investment in possess Long-term receivable 89,762,071 89,762,071 Long term share equity 6,395,134,754 6,395,134,754 investment Other equity instruments 1,565,806,331 1,565,806,331 investment Other non-current financial assets Property investment 10,810,722 10,810,722 Fixed assets 41,157,594,848 41,157,594,848 Construction in progress 7,740,754,343 7,740,754,343 Production physical assets Oil & gas assets Use right assets Intangible assets 1,863,588,771 1,863,588,771 Development expenses Goodwill 2,449,886 2,449,886 Long-germ expenses to be 22,089,179 22,089,179 amortized Deferred income tax asset 448,431,684 448,431,684 Other non-current asset 1,871,616,258 1,871,616,258 Total of non-current assets 61,168,038,847 61,168,038,847 Total of assets 73,329,662,306 73,329,662,306 Current liabilities Short-term loans 7,526,000,000 7,526,000,000 Loan from Central Bank Borrowing funds Transactional financial liabilities Financial liabilities measured at fair value with variations accounted into current income account Derivative financial liabilities Notes payable 941,161,107 941,161,107 28 The Third Quarterly Report 2019 Account payable 2,196,600,415 2,196,600,415 Advance receipts 343,894 343,894 Contract liabilities Selling of repurchased financial assets Deposit taking and interbank deposit Entrusted trading of securities Entrusted selling of securities Employees’ wage payable 235,741,179 235,741,179 Tax payable 397,001,706 397,001,706 Other account payable 4,152,518,495 4,152,518,495 Including:Interest payable 59,316,077 59,316,077 Dividend payable 9,703,930 9,703,930 Fees and commissions payable Reinsurance fee payable Liabilities held for sales Non-current liability due 2,779,347,654 2,779,347,654 within 1 year Other current liability 1,107,904,110 1,107,904,110 Total of current liability 19,336,618,560 19,336,618,560 Non-current liabilities: Reserve fund for insurance contracts Long-term loan 18,802,292,664 18,802,292,664 Bond payable 838,326,742 838,326,742 Including:preferred stock Sustainable debt Lease liability Long-term payable 2,311,513,249 2,311,513,249 Long-term remuneration 122,913,388 122,913,388 payable to staff Expected liabilities Deferred income 133,043,646 133,043,646 Deferred income tax liability 100,726,841 100,726,841 Other non-current liabilities 166,405,569 166,405,569 Total non-current liabilities 22,475,222,099 22,475,222,099 Total of liability 41,811,840,659 41,811,840,659 Owners’ equity Share capital 5,250,283,986 5,250,283,986 Other equity instruments Including:preferred stock 29 The Third Quarterly Report 2019 Sustainable debt Capital reserves 5,102,846,886 5,102,846,886 Less:Shares in stock Other comprehensive income 550,010,133 550,010,133 Special reserve Surplus reserves 7,834,155,143 7,834,155,143 Common risk provision Retained profit 5,490,006,140 5,490,006,140 Total of owner’s equity 24,227,302,288 24,227,302,288 belong to the parent company Minority shareholders’ equity 7,290,519,359 7,290,519,359 Total of owners’ equity 31,517,821,647 31,517,821,647 Total of liabilities and 73,329,662,306 73,329,662,306 owners’ equity Adjustment statement According to the No. 22 Accounting Standards for Business Enterprises, the No. 23 Accounting Standards for Business Enterprises, the No. 24 Accounting Standards for Business Enterprises revised and issued by the Ministry of Finance on March 31, 2017, the No. 37 Accounting Standards for Business Enterprises (hereinafter referred to as the new Financial Instruments Standards) revised and issued by the Ministry of Finance on May 2, 2017, and the Notice on Issuance of the Amended 2019 Annual General Financial Statements of the General Enterprises (No. 6 [2019] Cai hui) issued on April 30, 2019, and combined with the Group's business model for managing financial assets and the contract cash flow characteristics of the financial assets, the investment of the three companies held shall be adjusted from the accounting of available-for-sale financial assets originally calculated by cost method to the accounting of financial assets measured by fair value and whose changes are included in other comprehensive income, and it shall be presented in the investment of other equity instruments. Parent Company Balance Sheet In RMB Amount involved in the Items December 31,2018 January 1,2019 adjustment Current asset: Monetary fund 385,577,463 385,577,463 Transactional financial assets Financial assets measured at fair value with variations accounted into current income account Derivative financial assets Notes receivable Account receivable 264,537,475 264,537,475 Financing of receivables Prepayments 44,826,500 44,826,500 Other account receivable 375,296,228 375,296,228 30 The Third Quarterly Report 2019 Including:Interest receivable 1,121,522 1,121,522 Dividend receivable 447,956 447,956 Inventories 187,058,140 187,058,140 Contract assets Assets held for sales Non-current asset due within 1 year Other current asset 199,679 199,679 Total of current assets 1,257,495,485 1,257,495,485 Non-current assets: Debt investment Available for sale of financial 1,565,806,331 -1,565,806,331 assets Other investment on bonds Expired investment in possess Long-term receivable 306,460,000 306,460,000 Long term share equity 24,699,820,321 24,699,820,321 investment Other equity instruments 1,565,806,331 1,565,806,331 investment Other non-current financial assets Property investment 7,661,041 7,661,041 Fixed assets 978,022,437 978,022,437 Construction in progress 9,394,075 9,394,075 Production physical assets Oil & gas assets Use right assets Intangible assets 86,681,362 86,681,362 Development expenses Goodwill Long-germ expenses to be amortized Deferred income tax asset Other non-current asset 356,004,000 356,004,000 Total of non-current assets 28,009,849,567 28,009,849,567 Total of assets 29,267,345,052 29,267,345,052 Current liabilities Short-term loans 1,500,000,000 1,500,000,000 Transactional financial liabilities Financial liabilities measured at fair value with variations accounted into current income account 31 The Third Quarterly Report 2019 Derivative financial liabilities Notes payable Account payable 223,827,319 223,827,319 Advance receipts Contract Liabilities Employees’ wage payable 53,346,100 53,346,100 Tax payable 48,590,195 48,590,195 Other account payable 98,528,954 98,528,954 Including:Interest 15,787,356 15,787,356 payable Dividend payable 9,703,930 9,703,930 Liabilities held for sales Non-current liability due within 1 year Other current liability 1,107,904,110 1,107,904,110 Total of current liability 3,032,196,678 3,032,196,678 Non-current liabilities: Long-term loan 1,500,000,000 1,500,000,000 Bond payable 838,326,742 838,326,742 Including:preferred stock Sustainable debt Lease liability Long-term payable 4,340,898 4,340,898 Long-term remuneration 32,170,769 32,170,769 payable to staff Expected liabilities Deferred income 48,362,943 48,362,943 Deferred income tax liability 99,461,621 99,461,621 Other non-current liabilities Total non-current liabilities 2,522,662,973 2,522,662,973 Total of liability 5,554,859,651 5,554,859,651 Owners’ equity Share capital 5,250,283,986 5,250,283,986 Other equity instruments Including:preferred stock Sustainable debt Capital reserves 5,605,794,601 5,605,794,601 Less:Shares in stock Other comprehensive income 550,010,133 550,010,133 Special reserve Surplus reserves 7,834,155,143 7,834,155,143 Retained profit 4,472,241,538 4,472,241,538 Total of owners’ equity 23,712,485,401 23,712,485,401 32 The Third Quarterly Report 2019 Total of liabilities and 29,267,345,052 29,267,345,052 owners’ equity Adjustment statement According to the No. 22 Accounting Standards for Business Enterprises, the No. 23 Accounting Standards for Business Enterprises, the No. 24 Accounting Standards for Business Enterprises revised and issued by the Ministry of Finance on March 31, 2017, the No. 37 Accounting Standards for Business Enterprises (hereinafter referred to as the new Financial Instruments Standards) revised and issued by the Ministry of Finance on May 2, 2017, and the Notice on Issuance of the Amended 2019 Annual General Financial Statements of the General Enterprises (No. 6 [2019] Cai hui) issued on April 30, 2019, and combined with the Group's business model for managing financial assets and the contract cash flow characteristics of the financial assets, the investment of the three companies held shall be adjusted from the accounting of available-for-sale financial assets originally calculated by cost method to the accounting of financial assets measured by fair value and whose changes are included in other comprehensive income, and it shall be presented in the investment of other equity instruments. 2. Note to the retroactive adjustment of the previous comparative data according to the new standards for financial instruments and the new standards for lease implemented commencing from year 2019 □ Applicable √ Not applicable III. Auditor’ report Is the Third Quarterly Report be audited? □ Yes √No The Third Quarterly report is not audited. The Board of Directors of Guangdong Electric Power Development Co., Ltd. Chairman of the Board: Wang Jin October 31, 2019 33