Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Guangdong Electric Power Development Co., Ltd.
2018 Annual Report
April 2019
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Guangdong Electric Power Development Co., Ltd. 2018Annual Report
I. Important Notice, Table of Contents and Definitions
The Board of Directors , Supervisory Committee ,Directors, Supervisors and Senior Executives of the
Company hereby guarantees that there are no misstatement, misleading representation or important omissions in
this report and shall assume joint and several liability for the authenticity, accuracy and completeness of the contents
hereof.
Mr.Wang Jin, The Company leader, Mr. Liu Wei, Chief financial officer and the Mr.Meng Fei, the person in
charge of the accounting department (the person in charge of the accounting )hereby confirm the authenticity and
completeness of the financial report enclosed in this Annual report.
Other directors attending the Meeting for annual report deliberation except for the followed:
Name of director absent Title for absent director Reasons for absent Attorney
Rao Subo Director Due to business Wen Lianhe
Chen Ze Director Due to business Wang Jin
Li Fangji Director Due to business Zheng Yunpeng
Zhang Xueqiu Director Due to business Ma Xiaoqian
This annual report involves the forecasting description such as the future plans, and does not constitute the
actual commitments of the company to the investors. Investors and stakeholders should all maintain sufficient
awareness of risks for this and understand the differences between plans, forecasts and commitments.
The Company is mainly engaged in thermal power generation. The business of thermal power generation is
greatly affected by factors including electric power demand and fuel price. Refer to Section IX(4) of Chapter 4 of
this annual report-situation faced and countermeasures for relevant information.
The preplan profit distribution of the Company deliberated and approved by the Board is:Total share of of
5,250,283,986 for Base on the Company‘s total share capital,the Company would distribute cash dividend to all
the shareholders at the rate of CNY 0.60 for every 10shares (with tax inclusive),with 0 bonus shares（including
tax）, and not converting capital reserve into share capital.
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Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Table of Contents
I.Important Notice, Table of contents and Definitions
II. Basic Information of the Company and Financial index
III. Outline of Company Business
IV. Management’s Discussion and Analysis
V. Important Events
VI. Change of share capital and shareholding of Principal Shareholders
VII. Situation of the Preferred Shares
VIII. Information about Directors, Supervisors and Senior Executives
IX. Administrative structure
X. Corporate Bond
XI. Financial Report
XII. Documents available for inspection
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Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Definition
Terms to be defined Refers to Definition
Guangdong Energy Group Co., Ltd. (Guangdong Yudean Group Co.,
Guangdong Energy Group (Yudean Group) Refers to
Ltd., Renamed on Feb 18,2019)
Guangqian Company Refers to Shenzhen Guangqian Electric Power Co., Ltd.
Bohe Company Refers to Guangdong Yudean Bohe Coal & Electricity Co., Ltd
Dapu Company Refers to Guangdong Dapu Power Generation Co., Ltd.
Wind Power Company Refers to Guangdong Wind Power Co., Ltd.
Lincang Company Refers to Lincang Yudean Energy Co., Ltd.
Qujie Wind Power Company Refers to Guangdong Yudean Qujie Wind Power Generation Co., Ltd.
Electric Power Sales Company Refers to Guangdong Yudean Electric Power Sales Co., Ltd.
Anxin Electric Inspection & Installation
Refers to Guangdong Yudean Anxin Electric Inspection & Installation Co., Ltd
Company
Tongdao Wind Power Company Refers to Tongdao Yuexin Wind Power Generation Co., Ltd.
Zhongyue Compamy Refers to Zhanjiang Zhongyue Energy Co., Ltd.
Yuejiang Company Refers to Guangdong Shaoguan Yuejiang Power Generation Co., Ltd.
Yongan Natural Gas Company Refers to Guangdong Yudean Yongan Natural Gas Thermal Power Co., Ltd.
Leizhou Wind Power Company Refers to Guangdong Yudean Leizhou Wind Power Generation Co., Ltd.
Zhanjiang Company Refers to Zhanjiang Electric Power Co., Ltd.
Zhanjiang Wind Power Company Refers to Guangdong Yudean Zhanjiang Wind Power Co., Ltd.
Huizhou Natural Gas Company Refers to Guangdong Huizhou Natural Gas Power Co., Ltd.
Zhenneng Company Refers to Maoming Zhenneng Thermal Power Co., Ltd.
Jinghai Company Refers to Guangdong Yudean Jinghai Power Co., Ltd.
Red Bay Company Refers to Guangdong Red Bay Power Co., Ltd.
Huadu Natural Gas Company Refers to Guangdong Huadu Natural GasT Thermal Power Co., Ltd.
Humen Power Company Refers to Guangdong Yudean Humen Power Co., Ltd.
Yuejia Company Refers to Guangdong Yuejia Electric Power Co., Ltd.
Pinghai Power Plant Refers to Guangdong Hluizhou Pinghai Power Co., Ltd.
Pingdian Integrated Energy Company Refers to Huizhou Pingdian Integrated Energy Co., Ltd.
Zhencheng Integrated Energy Company Refers to Guangdong Yudean Zhencheng Integrated Energy Co., Ltd.
Dianbai Wind Power Company Refers to Guangdong Yudean Dianbai Wind Power Co., Ltd.
Yangjiang Wind Power Company Refers to Guangdong Yudean Yangjiang Offshore Wind Power Co., Ltd.
Heping Wind Power Company Refers to Guangdong Yudean Heping Wind Power Co., Ltd.
Pingyuan Wind Power Company Refers to Guangdong Yudean Pingyuan Wind Power Co., Ltd.
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Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Zhuhai Wind Power Company Refers to Guangdong Yudean Zhuhai Offshore Wind Power Co., Ltd.
Wuxuan Wind Power Company Refers to Guangxi Wuxuan Yudean New Energy Co., Ltd.
Xupu Wind Power Company Refers to Hunan Xupu Yuefeng New Energy Co., Ltd.
Shibeishan Wind Power Refers to Guangdong Yudean Shibeishan Wind Energy Development Co., Ltd.
Huilai Wind Power Company Refers to Huilai Wind Power Generation Co., Ltd.
Yudean Industry Fuel Company Refers to Guangdong Power Industry Fuel Co., Ltd.
Insurance Captive Company Refers to Guangdong Yudean Property Insurance Captive Co., Ltd.
Shanxi Energy Company Refers to Shanxi Yudean Energy Co., Ltd.
Yudean Shipping Company Refers to Guangdong Yudean Shipping Co., Ltd.
Yudean Western Investment Company Refers to Guangdong Yudeann Holdings Western Investment Co., Ltd.
Yudean Finance Company Refers to Guangdong Yudean Finance Co., Ltd.
Guohua Taishan Company Refers to Guangdong Guohua Yudean Taishan Power Generation Co., Ltd.
Weixin Energy Co., Ltd. Refers to Yunnan Yuntou Weixin Energy Co., Ltd.
Zhongxinkeng hydropower station Refers to Yangshan zHONGXINKENG Power Co., Ltd.
Jiangkeng hydropower station Refers to Yangshan Jiangkeng hydropower station
Southern Offshore wind power Refers to Southern Offshore wind power Union Development Co., Ltd.
Sunshine Insurance Refers to Sunshine Insurance Group Co., Ltd.
Shenzhen Capital Refers to Shenzhen Capital Group Co., Ltd.
GMG Refers to GMG International Tendering Co., Ltd.
Shenzhen Energy Refers to Shenzhen Energy Group Co., Ltd.
Shenergy Company Refers to Shenergy Company Limited
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Guangdong Electric Power Development Co., Ltd. 2018Annual Report
II. Basic Information of the Company
1.Company information
Stock abbreviation Yue Dian Li A, Yue Dian Li B Stock code： 000539、200539
Stock exchange for listing Shenzhen Stock Exchange
Name in Chinese 广东电力发展股份有限公司
Abbreviation of Registered
粤电力
Company Name in Chinese(If any)
English name (If any) GUANGDONG ELECTRIC POWER DEVELOPMENT CO.,LTD
English abbreviation (If any) GED
Legal Representative Wang Jin
Registered address 33-36/F, South Tower, Yudean Plaza, No.2 Tianhe Road East, Guangzhou,Guangdong Province
Postal code of the Registered
510630
Address
Office Address 33-36/F, South Tower, Yudean Plaza, No.2 Tianhe Road East, Guangzhou,Guangdong Province
Postal code of the office address 510630
Internet Web Site http://www.ged.com.cn
E-mail ged@ged.com.cn
Ⅱ.Contact person and contact manner
Board secretary Securities affairs Representative
Name Liu Wei Qin Xiao
35/F, South Tower, Yudean Plaza, No.2 Tianhe 36/F, South Tower, Yudean Plaza, No.2 Tianhe Road
Contact address
Road East, Guangzhou,Guangdong Province East, Guangzhou,Guangdong Province
Tel (020)87570276 (020)87570251
Fax (020)85138084 (020)85138084
E-mail liuw@ged.com.cn qinxiao@ged.com.cn
Ⅲ. Information disclosure and placed
Newspapers selected by the Company for information China Securities Daily, Securities Times and Hong Kong Commercial
disclosure Daily(overseas newspaper for English version)
Internet website designated by CSRC for publishing
http://www.cninfo.com.cn
the Annual report of the Company
The place where the Annual report is prepared and
Affair Dept. Of the Board of directors of the Company
placed
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Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Ⅳ.Changes in Registration
Organization Code 91440000617419493W
Changes in principal business activities since listing (if any) No change
Changes is the controlling shareholder in the past (is any) No change
Ⅴ. Other Relevant Information
CPAs engaged
Name of the CPAs PWC Certified Public Accountants (special general partnership)
11/F,PricewaterhouseCoopers Center,2 Corporate Avenue 202 Hu Bin Road, Huangpu
Office address
District,Shanghai
Names of the Certified Public
Wang Bin, Guo Biyu
Accountants as the signatories
The sponsor performing persist ant supervision duties engaged by the Company in the reporting period.
□Applicable √Not Applicable
The Financial advisor performing persist ant supervision duties engaged by the Company in the reporting period
□Applicable √Not Applicable
Ⅵ.Summary of Accounting data and Financial index
Whether it has retroactive adjustment or re-statement on previous accounting data or not
√Yes □ No
The reason for retrospective restatement
Change of accounting policy
Changed over
2017 2016
last year（％）
2018
Before After After Before After
adjustment adjustment adjustment adjustment adjustment
Revenue（RMB） 27,408,514,178 26,643,792,057 26,643,792,057 2.87% 22,681,120,022 22,681,120,022
Net profit attributable to the
shareholders of the listed 474,461,997 743,180,431 743,180,431 -36.16% 936,534,941 936,534,941
Company（RMB）
Net profit attributable to
shareholders of the listed
Company after deducting 412,062,957 718,454,119 718,454,119 -42.65% 1,074,697,758 1,074,697,758
non-recurring gains and
losses(RMB)
Net cash flow arising from
5,999,936,356 3,676,034,503 3,676,034,503 63.22% 8,704,775,818 8,704,775,818
operating activities（RMB）
Basic earning per
0.09 0.14 0.14 -35.71% 0.18 0.18
share(RMB/Share)
Diluted gains per
0.09 0.14 0.14 -35.71% 0.18 0.18
share(RMB/Share)
Net asset earning ratio（%） 2.02% 3.16% 3.16% -1.14% 3.99% 3.99%
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Guangdong Electric Power Development Co., Ltd. 2018Annual Report
End of Changed over
End of 2016
2017 last year（％）
End of 2018
Before After After Before After
adjustment adjustment adjustment adjustment adjustment
Gross assets（RMB） 73,329,662,306 71,007,415,323 71,007,415,323 3.27% 70,677,003,760 70,677,003,760
Net assets attributable to
shareholders of the listed 24,227,302,288 23,695,190,653 23,695,190,653 2.25% 23,378,847,225 23,378,847,225
Company（RMB）
Reasons for Changes in Accounting Policies and Correction of Accounting Errors
Changes in Presentation Methods of Financial Statements
According to the requirements of the Notice on Revising and Issuing the Format of General Enterprise Financial
Statements for 2018 (Caikuai [2018] No. 15), the balance sheet will merge "notes receivable" and "accounts
receivable" into newly added "notes receivable and accounts receivable", merge "interest receivable" and
"dividend receivable" into "other receivables", merge "fixed assets liquidation" into "fixed assets", and merge
"engineering materials" into "construction in progress", merge "bills payable" and "accounts payable" into the
newly added "bills payable and accounts payable", and merge "special accounts payable" into the "long-term
payables"; In the income statement, an additional item entitled "research and development expenses" is added to
report expenditures incurred in the process of research and development, and detailed items entitled "interest
expenses" and "interest income" are split under the item entitled "financial expenses"; The Company has
conducted a corresponding retrospective application on the comparison data. The change of accounting policy has
no effect on the merger, net profit of the company and shareholders' equity.
Ⅶ.The differences between domestic and international accounting standards
1．Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed
in the financial reports of differences in net income and net assets.
√ Applicable □Not applicable
In RMB
Net profit attributable to the shareholders of the Net Assets attributable to the shareholders of
listed company the listed company
Amount in the Amount in the previous End of the reporting Beginning of the
reporting period period period reporting period
According to CAS 474,461,997 743,180,431 24,227,302,288 23,695,190,653
Items and amount adjusted according to IAS
The difference arising from
recognition of goodwill after
64,623,000 64,623,000
merger of enterprises under
the same control
Difference arising from
recognition of land use value -630,000 -630,000 17,600,000 18,230,000
after enterprise merger
Influence on minority interests 54,120 54,120 4,810,219 4,756,099
According to IAS 473,886,117 742,604,551 24,314,335,507 23,782,799,752
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Guangdong Electric Power Development Co., Ltd. 2018Annual Report
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese
accounting standards.
□ Applicable √Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign
accounting rules or Chinese GAAP(Generally Accepted Accounting Principles) in the period.
3.Note to the Difference in the Accounting Data based on the Accounting Standards of CAS and IAS.
√ Applicable □ Not applicable
The difference arising from recognition of goodwill after merger of enterprises under the same control
and recognition of land value after enterprise merger.
As required by new Chinese accounting standards, the goodwill formed by the merger of enterprises
under the same control shall not be recognized and capital surplus shall be adjusted. Under IFRS, the
golldwill formed by the merger of enterprises under the same control shall be recognized and equal to
the difference between merger cost and share of fair value of recognizable net assets of the purchased
party obtained in merger. Meanwhile, all assets of the purchased party obtained in merger shall be
accounted for according to their fair value while such assets shall be accounted for according to their
book value according to original Chinese accounting standards for business enterprises. Therefore, this
difference will continue to exist.
Ⅷ.Main Financial Index by Quarters
In RMB
First quarter Second quarter Third quarter Fourth quarter
Operating income 5,812,535,688 8,082,449,491 7,060,929,815 6,452,599,184
Net profit attributable to the
5,745,879 443,087,639 489,988,070 -464,359,591
shareholders of the listed company
Net profit after deducting of
non-recurring gain/loss attributable to 4,330,364 408,811,354 471,207,833 -472,286,594
the shareholders of listed company
Net Cash flow generated by business
1,540,043,756 2,255,488,952 1,419,777,849 784,625,799
operation
Whether significant variances exist between the above financial index or the index with its sum and the financial
index of the quarterly report as well as semi-annual report index disclosed by the Company.
□ Yes √No
Ⅸ.Items and amount of non-current gains and losses
√Applicable □Not applicable
In RMB
Amount Amount Amount
Items Notes
(2018) (2017) (2016)
Non-current asset disposal 1,572,097 -4,720,404 -3,723,321
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Guangdong Electric Power Development Co., Ltd. 2018Annual Report
gain/loss(including the write-off part for
which assets impairment provision is made)
In this period, the electricity sales
Govemment subsidy recognized in current company received RMB 10.77 million
gain and loss(excluding those closely related from Nansha headquarters; The
43,530,965 41,344,595 19,074,097
to the Company’s business and granted specific grant or appropriation for
under the state’s policies) energy saving and emission reduction
is RMB 8.28 million.
Enterprise reorganization expenses, such as
payment to stuff placement and -59,541,635
consolidation expenses
According to tax, accounting and other laws,
regulations, the requirements of the current
-12,679,505 -125,842,425
Gain/loss for a one-time adjustment of the
impact of the current Gain/loss;
In this period, Zhanjiang Wind power
received insurance compensation of
RMB 45.4585 million due to typhoon
damage in previous years; Some
power plants received donations from
multiple companies, increasing
Net amount of non-operating income and
62,976,212 6,502,013 -104,916,156 non-operating income by RMB
expense except the aforesaid items
36.987 million; Some power plants
lost RMB 21.4579 million in
long-term asset retirement; And
Pinghai was fined RMB 11.5372
million for illegally occupying sea
areas to build sand dike.
Other non-recurring Gains/loss items -7,274,913
Less: .Amount of influence of income tax 25,191,469 10,104,459 18,950,258
Less: Amount of influence of minority
7,809,260 1,020,520 -155,736,881
interests
Total 62,399,040 24,726,312 -138,162,817 --
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Compaines Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
□ Applicable√ Not applicable
None of Non-recurring gain /loss items recorgnized as recurring gain /loss/items as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.
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Guangdong Electric Power Development Co., Ltd. 2018Annual Report
III. Outline of Company Business
Ⅰ.Main Business the Company is Engaged in During the Report Period
Whether the company needs to comply with the disclosure requirements of the particular industry
No
The Company mainly engages in the investment, construction and operation management of power projects, and the
production and sales of electric power. It belongs to the power, heat production and supply industry classified in the
“Guidelines for the Industry Classification of Listed Companies” by the China Securities Regulatory Commission.
Since its foundation, the Company has always adhered to the business tenet of “Capital from the people, using it for
electricity, and benefiting the public” and adheres to the business policy of “Centering on the main business of
electricity, with diversified development”, focusing on the main business of power and making the power structure
go diversified. In addition to the development, construction and operation of large-scale coal-fired power plants, it
also has clean energy projects such as LNG power generation, wind power generation and hydropower generation,
which provides reliable and clean energy to users through the grid company. As of December 31,2018, the
controllable installed capacity is 20.95 million KW, where the controllable installed capacity of coal-burning
power generation, LNG generation and renewable energy generation like wind power and hydropower is 17.14
million KW, 3.26 million KW and 550,000 KW respectively.
Income source is primarily contributed by power production and sales, and main business income is derived from
Guangdong Province. The company electricity sales price is subject to the benchmark price verified by the price
authority per relevant policies based on National Development and Reform Commission (NDRC) and the
electricity transaction price through the market trade implementation per Guangdong Electricity Market Trade
Basic Rules and supporting files. In the reporting period, the electricity sold is 70.984 billion KWH(tax
included ,the same below ),an increase of 4.4% YOY; average price stated in the consolidated statements is
441.99 Yuan/ thousands kwh, YoY drop of 9.83 Yuan/ thousands kwh ; the total operating income was RMB
27,408.5142 million, an increase of RMB 764.7221 million or an increase of 2.87% YOY.
The company's business is dominated by coal-fired power generation, and the fuel costs account for a large portion
of operating costs, thus the fluctuations in coal prices have a significant impact on the company's operating
performance. During the reporting period, affected by the increase in power generation and the continuous increase
in coal prices, the company’s fuel costs were 17,938.5050 million yuan, which accounted for 73.98% of the
business costs; and the unit price of standard coal was 920.9614 million yuan, an increase of 920.9614 milion yuan
or an increase of 0.92% over the same period of last year.
During the reporting period, although the Company's electricity sales increased overall, the widening of market-based
trading spreads led to the continuous decline in the average price of the Company's combined power sales, and there
was high coal price, which had a significant negative impact on the Company's power generation business profits.
Meanwhile, affected by the impairment of some power generation assets, the Company achieved a net profit of
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Guangdong Electric Power Development Co., Ltd. 2018Annual Report
474,462,000 yuan attributable to the parent company for the whole year, a YOY decrease of 36.16%.
Ⅱ.Major Changes in Main Assets
1.Major Changes in Main Assets
Main assets Major changes
Equity assets No major changes
Fixed assets No major changes
Intangible assets No major changes
Construction in process No major changes
The other non-current assets increased by 169.43% YOY, which was mainly due to the
Other non-current assets
increase in prepayments for equipment and construction of infrastructure projects.
2. Main Conditions of Overseas Assets
□ Applicable √Not applicable
III.Analysis On core Competitiveness
Whether the company needs to comply with the disclosure requirements of the particular industry
No
1. The largest listed company of power in Guangdong
The Company's main power generation assets are located in Guangdong Province, with a total asset size of more
than 70 billion. It is the largest listed company of power in Guangdong Province. By the end of 2018, the Company
had put into operation a controllable installed capacity of 20.95 million kilowatts, of which the controllable installed
capacity within the province accounted for 17.32% of the installed capacity; the annual sales of electricity was
70.984 billion KWH, of which the electricity sales amount of provincial units accounted for 17.5% of the market
share of electricity purchase within the province, and that was basically equivalent to the installed scale of the
Company within the province.
2. Yudean Group has oriented our company as a sole listed platform for domestic power-generating assets
integration
We are the shareholder of Yudean Group, one of the biggest power-generating groups in south China, which takes
advantage of its source, assets scale, to give sustaining support to our company’s advancement and expansion. It
has oriented us as a sole listed platform for domestic power-generating assets integration. We are endowed with a
priority offered by it in power source development, asset acquisition.
3. State-of-the-art unit performance built on implementation of the energy-saving dispatching policy
By virtue of high parameters, large capacity, nice efficiency, low coal consumption, reliable operation and
environmental protection, our thermal power generating unit units are given priority in energy-saving dispatching.
As a result, our units are more competitive in on-grid price.
4. Stepwise optimization of industrial structure and power source structure
The 13th Five-Year Plan of the Company specified the overall strategy of taking power generation as the core
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Guangdong Electric Power Development Co., Ltd. 2018Annual Report
business, optimizing the development of coal-fired power, steadily developing gas power, vigorously developing
clean energy such as wind power and hydropower, continuously optimizing the power supply structure, and heading
to an efficient, clean and low-carbon road.
In 2018, the Company continued to optimize and adjust the power supply structure to further increase the proportion
of clean energy such as wind power and natural gas power generation. The #4 and #5 machine of the phase II of the
Huizhou natural gas power generation project- which was share-controlled by the Company for construction,
totaled 920,000 kilowatts, were put into commercial operation during the year (the #6 machine was put into
operation in January 2019), the 50,000 kilowatts of Xuwen Qujie wind power project was overall put into operation,
and the total of 22 sets of wind turbines of Xuwen Shiban Wind Power Project, totaled 44,000 kilowatts, were put
into commercial operation. Thus, the total installed capacity of clean energy newly increased in the year was 1.0135
million kilowatts, and the proportion of clean energy increased from 14% (data at the end of 2017) to 18%.
5. Experienced management, sophisticated production technology
Administrators and technical experts are veterans in operation and management of power plants, and key staff
have years of practical experience in the power sector. The Company continuously improved the quality and
efficiency of its operations by strengthening its management of safety production, energy conservation and emission
reduction, marketing and so on.
6. Hold fast to the opportunity of “electric price reform”, To realize the transformation from a power generation
enterprise to an energy comprehensive service enterprise.
In order to adapt to the power market reform, the Company established Guangdong Yuedian Power Sales Co., Ltd
in July 2015 to participate in the market competition in the electricity sales side. Guangdong Yuedian Power Sales
Co., Ltd, which belongs to the first group of power-selling companies that obtained the market access, is numbered
“SD01”. Since its establishment in 2015, after undergoing the market competition, Yuedian electricity selling has
become a well-known brand in the Guangdong electric power market, forming a leading position. In recent years, in
the annual long-term contracted electricity and monthly concentrated bidding, the winning bidding electricity
quantity and winning bidding rate steadily topped in the market. In the future, the Company will continue to
vigorously promote the business of sales of electricity, take active measures in accordance with the relevant policies
of the national power system reform, expand the distribution business of electricity and the integrated energy
services, so as to realize the transformation from a power generation enterprise to an energy comprehensive service
enterprise.
7. Actively participate in the energy layout of the Greater Bay Area of Guangdong, Hong Kong and Macao in
combination with the development plan of the Greater Bay Area of Guangdong, Hong Kong and Macau
The Company's subordinate company Shajiao A Power Plant is located in the center area of Greater Bay Area of
Guangdong, Hong Kong and Macao. It is in the window position of Guangzhou-Shenzhen-Hong Kong Innovation
Economics belt, and it has a unique geographical advantage. The Company will give full play to the comprehensive
advantages of regional layout, industrial layout, talent and technology and so on, and actively participate in the
development of energy supply and related industries in the Greater Bay Area, make full use of the opportunity of
retiring and rebuilding the Shajiao A power plant, and create a super energy supply base with co-supply of gas,
electricity, heat and cooling; speed up the provincial cooperation and accelerates the development of Shajiao Power
Plant land, and vigorously explore the construction headquarters for the smart energy network and the high-end
power technology integrated service in the Greater Bay Area.
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Guangdong Electric Power Development Co., Ltd. 2018Annual Report
IV. Management’s Discussion and Analysis
Ⅰ.General
In 2018, the total electricity consumption of Guangdong Province was 632.34 billion kWh, a YOY increase of 6.1%,
and the growth rate was basically the same as last year (6.2%). The annual output of West-area Power to guangdong
reached 192.2 billion kWh-over-delivering 21.7 billion kWh, an increase of 8.5%. Affected by factors such as
power supply from West Area Power, both increase in west and provincial power generation, new nuclear power,
thermal power generation and restricted coal-power generation in the Pearl River Delta, the power generation of
coal-fired units of the Company had been severely squeezed. The Company's coal-fired power generation accounted
for 15.4% of market share of the province's electricity purchase, a decrease of 0.2 percentage YOY. The Company's
comprehensive utilization hours for the year were 4,036 hours, increased by 143 hours YOY, and for the coal power
generation machine, it was 4,255 hours, increased by186 hours YOY.
In 2018, the total transaction volume of Guangdong's market-oriented transactions was 170.58 billion kWh, of
which the transaction in the primary market (annual bilateral negotiations, annual concentrated competition, and
monthly concentrated competition) totaled 157.21 billion kWh, a YOY increase of 35.9%, and the average
transaction price difference was -6.55 Cent/kWh; the total transaction in the secondary market (transfer of power
generation contract) was 13.37 billion kWh, with an average transaction price of 34.19 Cent/kWh. The Company's
market transaction power totaled 35.38 billion kWh, accounting for 49.84% of the Company's on-grid electricity, a
YOY increase of 9.42 billion kWh.
In 2018, affected by the expanding of market-based transaction price spread, the average price of electricity sold by
the Company in the consolidated statements was 441.99 yuan / thousand kWh (including tax, similarly hereinafter),
a YOY decrease of 9.83 yuan/thousand kWh; meanwhile, the coal price remained high, which brought a large
negative impact on the profit of the Company's power generation business. In the face of severe business situation,
the Company actively competed for power sales by continuously optimizing the power marketing system,
tightening the core operating factors and improving the benchmarking management system, thereby offsetting the
unfavorable factors such as the rising coal price and the interest concession to market electricity trading. Under the
continuous pressure of the main business, the Company continued to strengthen its financial management and
control awareness, flexibly use financial management tools, improve the level of fund management, safeguard the
company's capital needs, and reduce the cost of capital use. During the reporting period, the Company successfully
issued four ultra-short-term and one middle-term period bills, which saved 19.24 million yuan compared with the
benchmark interest rate for the same period.
As of the end of 2018, the total assets of the Company by consolidated statements amounted to RMB 73.33 billion,
an increase of 3.27% YOY; and the interests attributable to shareholders of the parent company was RMB 24.227
billion, an increase of 12.25% YOY. The company achieved the operating income by consolidated statements of
RMB 27.409 billion, an increase of 2.87% YOY; the net profit attributable to shareholders of the parent company
was RMB 474 million, a YOY decrease of 36.16%; the earnings per share was RMB 0.09 (it’s RMB 0.14 in the
same period of last year). The company's liabilities by consolidated statements totaled to RMB 41.812 billion,
with that the asset-liability ratio was 57.02%.
14
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
In 2018, the Company continued to optimize and adjust the power supply structure to further increase the proportion
of clean energy such as wind power and natural gas power generation. The #4 and #5 machine of the phase II of the
Huizhou natural gas power generation project- which was share-controlled by the Company for construction,
totaled 920,000 kilowatts, were put into commercial operation during the year (the #6 machine was put into
operation in January 2019), the 50,000 kilowatts of Xuwen Qujie wind power project was overall put into operation,
and the total of 22 sets of wind turbines of Xuwen Shiban Wind Power Project, totaled 44,000 kilowatts, were put
into commercial operation. Thus, the total installed capacity of clean energy newly increased in the year was 1.0135
million kilowatts, and the proportion of clean energy increased from 14% (data at the end of 2017) to 18%.
In 2018, the Company continued to optimize and adjust the power supply structure to further increase the proportion
of clean energy such as wind power and natural gas power generation.
The #4 and #5 machine of the phase II of the Huizhou natural gas power generation project-which was
share-controlled by the Company for construction, totaled 920,000 kilowatts, were put into commercial operation
during the year (the #6 machine was put into operation in January 2019), the 50,000 kilowatts of Xuwen Qujie wind
power project was overall put into operation, and the total of 22 sets of wind turbines of Xuwen Shiban Wind Power
Project, totaled 44,000 kilowatts, were put into commercial operation. Thus, the total installed capacity of clean
energy newly increased in the year was 1.0135 million kilowatts. As of the end of 2018, the Company's
controllable installed capacity was 20.95 million kilowatts, of which the gas-electricity of controllable installed
capacity was 3.26 million kilowatts, the controllable installed capacity of renewable energy power including the
wind power and hydropower was 550,000 kilowatts, and the clean energy proportion increased to 18% from 14%
at the end of 2017, with the net profit attributable to the parent company was 396.3 million yuan-accounting for
83.53% to the Company's net profit attributable to the parent company.
In 2018, the Company continued to implement the Guangdong Provincial Government's spirit of deployment and
instruction to vigorously develop offshore wind power and promote industrial transformation and upgrading, and
accelerate the development of offshore wind power projects. The offshore wind power projects including the
Zhuhai Jinwan, Zhanjiang Wailuo Phase II project, Zhanjiang Xinliao, Yangjiang Qingzhou Phase I Project and
Yangjiang Qingzhou Phase II and Guangxi Wuxuan Onshore Wind Power Project were approved during the
reporting period, with a total installed capacity of 1.757 million kilowatts. Meanwhile, the company actively
responded to the requirements of the new development concept for environmental protection and fulfilling social
responsibilities, and actively participated in the construction of ecological civilization. It completely achieved the
ultra-low emission transformation of the conventional coal-fired units, orderly promoted the zero-emission project
of thermal power plant wastewater and the denitrification transformation of Guangqian and Huizhou natural gas
generator sets, promoting the power generation enterprises to continuously go for clean, low-carbon, safe and
efficient transformation.
In 2018, the board of directors organized 5 on-site meetings and 2 communication meetings, which completed the
approval of 55 board resolutions. The topics involved periodic reports, internal control evaluation, comprehensive
risk management, profit distribution plan, major investment and financing, major related transactions, and
important personnel appointment and dismissal matters, and all the proposals were passed and effectively
implemented. The board of directors also convened five general shareholders’ meetings, and all 19 proposals
submitted to the shareholders' meetings for consideration were passed and effectively implemented. The Company
successfully completed the preparation and disclosure of periodic reports and temporary announcements. A total
15
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
of 104 announcements were disclosed throughout the year, and the information disclosure was “A” graded by the
Shenzhen Stock Exchange for five consecutive years.
Ⅱ.Main business analysis
1. General
Refer to relevant contents of “1.Summarization” in “Discussion and Analysis of Management”.
2. Revenue and cost
(1)Component of Business Income
In RMB
2018 2017
Increase /decrease
Amount Proportion Amount Proportion
Total operating
27,408,514,178 100% 26,643,792,057 100% 2.87%
revenue
On Industry
Electric power ,
Steam sales and 27,125,955,662 98.97% 26,393,153,579 99.06% -0.09%
labor income
Other 282,558,516 1.03% 250,638,478 0.94% 0.09%
On products
Sales Electric Power 26,949,774,763 98.33% 26,250,079,293 98.52% -0.19%
Labor income 50,148,277 0.18% 49,166,707 0.18% 0%
Steam income 126,032,622 0.46% 93,907,579 0.35% 0.11%
Comprehensive
240,230,510 0.88% 203,698,123 0.76% 0.11%
utilization of fly ash
Sales material
1,324,637 0% 3,228,908 0.01% -0.01%
income
Lease revenue 20,343,421 0.07% 14,691,747 0.06% 0.01%
Other 20,659,948 0.08% 29,019,700 0.12% -0.04%
Area
Guangdong 27,333,587,477 99.73% 26,600,595,122 99.84% -0.11%
Yunnan 74,926,701 0.27% 43,196,935 0.16% 0.11%
(2)Situation of Industry, Product and District Occupying the Company’s Business Income and Operating Profit
with Profit over 10%
√ Applicable □Not applicable
Whether the company needs to comply with the disclosure requirements of the particular industry
No
In RMB
16
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Increase/decrease Increase/decrease Increase/decrease
of revenue in the of business cost of gross profit
Gross profit
Turnover Operation cost same period of over the same rate over the same
rate(%)
the previous period of period of the
year(%) previous year (%) previous year (%)
On Indudstry
Electric power ,
Steam sales and 27,125,955,662 24,236,414,355 10.65% 2.78% 4.12% -1.15%
labor income
On Products
Electric power ,
Steam sales and 27,125,955,662 24,236,414,355 10.65% 2.78% 4.12% -1.15%
labor income
Area
Guangdong 27,333,587,477 24,187,650,936 11.51% 2.76% 3.97% -1.03%
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main
business based on latest on year’s scope of period-end.
□ Applicable √Not applicable
(3)Whether the Company’s Physical Sales Income Exceeded Service Income
√ Yes □ No
Classification Items Unit 2018 2017 Changes
Electric power, Sales volume Billion kwh 709.84 679.76 4.43%
thermal production
and supply Production Billion kwh 751.23 720.29 4.30%
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
Whether the company needs to comply with the disclosure requirements of the particular industry
No
In the reporting period, China Southern Power Grid was our No.1 client, Its sales of 26.95 billion yuan taking up
approximately 98.01% of annual sales. Company and company’s holding subsidiaries had signed a Power
Purchase Agreement with China Southern Power Grid and its holding subsidiaries in accordance to related
provisions. By the end of the reporting period, the agreement had been executed rightfully.
(5)Component of business cost
Industry classification
In RMB
2018 2017
Industry Items Increase/Decrease
Amount Proportion in the Amount Proportion in the
17
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
operating costs operating costs
(%) (%)
Electric power,
thermal production Fuel cost 17,938,504,997 73.98% 17,017,543,636 73.06% 0.92%
and supply
Electric power,
Depreciation
thermal production 3,336,322,747 13.76% 3,465,797,703 14.88% -1.12%
expense
and supply
Electric power,
thermal production Labor cost 1,386,084,497 5.72% 1,377,719,311 5.91% -0.19%
and supply
Electric power,
thermal production Other 1,585,804,339 6.54% 1,431,228,019 6.14% 0.40%
and supply
Note
The Company is in power sector and mainly engaged in power generation at present. The cost is composed of fuel
cost, depreciation expenses, labour cost and other expenses. Fuel cost accounts for about 73.98% of total cost.
which was mainly affected by the increase in power generation volume and the continuous increase in coal price,
so that the fuel costs continue to grow YOY.
(6)Whether Changes Occurred in Consolidation Scope in the Report Period
√Yes □No
New Subsidiary Establishment of the Year
Registered Proportion
Name Business place Registered address Nature Acquired
capital (%)
Guangdong Yudean
Zhuhai, Jinwan District, Electric
Zhuhai Offshore Wind 65,000,000 100.00% Invested
Guangdong Zhuhai, Guangdong Power
Power Co., Ltd.
Guangdong Yudean
Maoming, Maonan District, Electric
Zhencheng Integrated 20,000,000 37.23% Invested
Guangdong Maoming, Guangdong Power
Energy Co., Ltd.
(7)Relevant Situation of Significant Changes or Adjustment of the Business, Product or Service in the Company’s
Report Period
□ Applicable √Not applicable
(8)Situation of Main Customers and Main Supplier
Information of the Company’s top 5 customers
Total sales amount to top 5 customers (RMB) 27,294,303,638
Proportion of sales to top 5 curstomers in the annual sales(%) 99.26%
Proportion of the sales volume to the top five customers in the
0.80%
total sales to the related parties in the year
Information of the Company’s top 5 customers
No Name Amount（RMB） Proportion
18
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
1 GPGC 26,949,774,763 98.01%
2 Guangdong Energy Group Co., Ltd. 220,137,409 0.80%
3 Huizhou Huiling Chemical Co., Ltd. 57,704,850 0.21%
4 Sinopec Maoming Petrochemical Company 42,871,874 0.16%
5 Dongguan Dejin Energy Technology Co., Ltd. 23,814,742 0.09%
Total -- 27,294,303,638 99.26%
Other explanation :
√Applicable □Not applicable
Guangdong Energy Group Co., Ltd. is the controlling shareholder of the Company, which is a connected
relationship with the Company.
Principal suppliers
Total purchase of top 5 Suppliers（RMB） 18,520,612,475
Percentage of total purchase of top 5 suppliers In total annual purchase(%) 87.57%
Proportion of purchase amount from the top 5 suppliers in the total purchase
71.52%
amount from the related parties in the year
Information about the top 5 suppliers
No Name Amount（RMB） Proportion
1 Guangdong Energy Group Co., Ltd. 15,125,772,383 71.52%
Guangdong Zhuhai Investment Elelctric
2 1,630,203,603 7.71%
Power Industry Fuel Co., Ltd.
3 Guangdong Dapeng ING Co., Ltd 948,487,179 4.48%
4 Dongfang Electric Co., Ltd. 574,571,928 2.72%
5 GPEC 241,577,382 1.14%
Total -- 18,520,612,475 87.57%
Other explanation :
√ Applicable □Not applicable
Guangdong Energy Group Co., Ltd. is the controlling shareholder of the Company, which is a connected
relationship with the Company.
3.Expenses
In RMB
Increase/Decrease(
2018 2017 Notes
%)
Sale expenses Mainly affected by the deepening
electricity reform, the Company added
25,383,861 8,223,996 208.66%
full-time sales staff and increased
operating expenses.
Administration expenses 688,349,938 638,017,252 7.89%
Financial expenses 1,350,485,251 1,279,255,541 5.57%
Mainly due to the decline in the
R & Development
5,043,776 16,980,873 -70.30% number of R&D projects carried out by
expenses
some power plants of the Company.
19
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
4.R& D Expenses
√ Applicable □Not applicable
Project
Project
No company Project name Purpose Target and influence
progress
name
In order to improve the economic
performance of the unit, the feasibility
With two vacuum
The unit has study shall be undertaken for various
pumps operational and
been vacuum system optimization and
Guangdong one standby, the power
determined, transformation schemes of the 600 MW
Shaoguan Optimization consumption of two
and the unit to find out the transformation scheme
Yuejiang research on vacuum pumps is
1 machine will conforming to the actual situations of our
Power vacuum system large, and the
be selected plant. In the meantime, the operation mode
Generation of 600 MW unit equipment operation
for optimization scheme of one operational
Co., Ltd. mode shall be changed
implementati and two standby changed from two
to achieve the aim of
on. operational and one standby shall be
energy-saving.
implemented for the vacuum pumps of the
600 MW unit.
The electro-hydraulic
Research on servo regulating
A prototype To improve the operation reliability of
Guangdong electro-hydrauli hydraulic cylinder is
has been axial flow fan, "the unplanned load down
Shaoguan c servo used on the axial flow
completed of the unit caused by hydraulic cylinder of
Yuejiang regulating fan to replace the
2 and the fan is reduced from 3 unit-times/year to
Power system for mechanical regulating
commissioni zero" currently. It belongs to the project
Generation induced draft hydraulic cylinder, so
ng is prolonging the service life of equipment
Co., Ltd. fan of the 330 as to improve the
underway. and ensuring the unit reliability.
MW unit safety margin of
hydraulic cylinder.
Research on
wind To prevent the deflagration of the steel ball
The safety margin
distribution, coal mill of the 330 MW unit and improve
Guangdong shall be improved for
recycling, The the operation safety margin of the coal
Shaoguan the coal pulverizing
explosion-proof feasibility mill, the number of deflagration is reduced
Yuejiang system of steel ball
3 ing and study report from 8 times/year to 0 times/year when the
Power coal mill of the 330
effect-raising has been existing coal is mixed and burned at
Generation MW unit to prevent
for coal completed present. This project will improve the
Co., Ltd. the deflagration of coal
pulverizing operation safety of unit and coal
mill.
system of 330 pulverizing system.
MW unit
In progress Such functions as automatic collection,
Research on and (the CO data modeling and optimization prediction
application of measurement shall be completed for the balanced
The components and
deep system has combustion monitoring data. The
concentrations of such
peak-regulating been combustion optimization and adjustment
gases as flue gas, CO
combustion completed and new key parameters are guided for the
shall be accurately
Zhanjiang optimization with the boiler. The numerical simulation and
measured on-line, to
4 Electric Power and adjustment preparation analysis for the combustion of boiler are
realize the refined
Co., Ltd. technology of for the carried out to obtain the regularities of
combustion adjustment
boiler based on installation distribution of flue gas temperature, speed
and optimization
accurate of and key gas components (O2/CO/NO)
control and improve
measurement of combustion under different typical operation
the efficiency of boiler.
CO optimization conditions. The operators are guided for
concentration and the optimization and adjustment to
adjustment) improve the boiler efficiency.
20
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Project
Project
No company Project name Purpose Target and influence
progress
name
According to relevant
requirements of the
group, the company
must complete the
transformation for the
waste water zero
According to the current problems existing
discharge of four units
Feasibility study in the water use and drainage, the waste
before 2020.
Zhanjiang on waste water In the water of the whole plant shall be recycled
Therefore, it is
5 Electric Power zero discharge progress of in a cascade way and comprehensively
required to carry out
Co., Ltd. transformation tender utilized, with the feasibility study
the project of
for #1-#4 units implemented to finally realize the waste
"feasibility study on
water zero discharge of the whole plant.
waste water zero
discharge
transformation of
#1-#4 units of
Zhanjiang Power Co.,
Ltd.".
It is required to provide the feasibility
study scheme of the DCS system
transformation, which evaluates the
current status of the DCS system, and
provides the transformation direction and
suggestions and the DCS system
transformation scheme and expense
The estimate of Zhejiang Zhongyue Energy
preliminary Co., Ltd. and shall include the following
Zhanjiang
Feasibility study Feasibility study on report has contents (but not limited to): current
Zhongyue
6 on DCS system DCS system been status, transformation necessity,
Energy Co.,
transformation transformation completed implementation conditions, comparison of
Ltd.
and will be all transformation schemes, duration,
reviewed. expenses and conclusions of the DCS
system of units. According to the
recommended scheme of the DCS system
transformation, the performance index
parameter requirements of the system shall
be proposed with the research on and
analysis for the future operation and
maintenance of the system.
According to specific Currently, there are many technical routes
water quality features of concentration and curing treatment for
of the resin reclaimed the resin reclaimed acid-alkali waste water
Feasibility study acid-alkali waste water and desulfurization waste water, and the
The
on subsequent and desulfurization investment and operation costs of
preliminary
Zhanjiang concentration waste water, the evaporation and crystallization process are
report has
Zhongyue and curing technical routes of very large. According to specific water
7 been
Energy Co., treatment of concentration and quality features of the resin reclaimed
completed
Ltd. waste water curing treatment shall acid-alkali waste water and desulfurization
and will be
treatment be compared and waste water, the comparison and
reviewed
system evaluated for the resin evaluation are undertaken in all waste
reclaimed acid-alkali water treatment technologies, to obtain the
waste water and subsequent evaporation and crystallization
desulfurization waste process which is the most suitable for the
21
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Project
Project
No company Project name Purpose Target and influence
progress
name
water in all waste waste water treatment system of the power
water treatment plant and conduct the scheme design and
technologies, to obtain investment estimation, which are
the subsequent important basis for the investment
evaporation and decision-making of power plant
crystallization process transformation project.
which is the most
suitable for the waste
water treatment system
of the power plant and
conduct the scheme
design and investment
estimation, which are
important basis for the
investment
decision-making of
power plant
transformation project.
In order to implement
the Action Plan for
Prevention and Control
of Water Pollution (GF
[2015] No. 17),
Implementation Plan
for Licence System
Controlling Pollutant
Discharge and
Technical Policy for
Pollution Control in
Thermal Power Plants
of the state, a 1) Sort the current problems existing in the
feasibility study unit is water use and drainage of Dabu Power
entrusted by Dabu Plant, and make uniform planning and
Research on Power Plant to carry optimization for the water use and
Guangdong The
waste water out the feasibility drainage of the whole plant;
Yudean Dapu feasibility
zero discharge study on the waste 2) Propose corresponding transformation
8 Power study has
of the whole water zero discharge of measures and comparison schemes to
Generation been
Dabu Power the whole plant, sort enable the water intake and use more
Co., Ltd. completed
Plant the current problems reasonable, so as to achieve the aims of
existing in the water water saving and cascade use and finally
use and drainage of realize the waste water zero discharge of
Dabu Power Plant, the whole plant.
make uniform
planning and
optimization for the
water use and drainage
of the whole plant and
propose corresponding
transformation
measures and
comparison schemes to
enable the water intake
and use more
reasonable, so as to
22
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Project
Project
No company Project name Purpose Target and influence
progress
name
achieve the aims of
water saving and
cascade use and finally
realize the waste water
zero discharge of the
whole plant.
Such equipment faults as the fracture of
Pipeline support It is required to solve
sampling pipe of the piping system and the
Guangdong and hanger the partial pipeline
falling of piping system from support
Yudean Dapu adjustment and vibration of #1 and #2
incurred during the previous operation
9 Power pipeline units, remove the Completed
have been eliminated, with ensuring the
Generation vibration defected supports and
equipment security, eradicating the safety
Co., Ltd. control of #1 hangers, and replace
hazards and improving the equipment
and #2 units the damaged dampers.
stability.
1) Solve the deep peak regulation and
accurate control of AGC, CCS, primary
frequency modulation, etc. under the
status of frequent peak regulation with
varying load (such as adopting the unit
coordination and optimization control
based on intelligent algorithm and boiler
feedforward control technology
It is required to adapt conquering the long delay and large
to the current situation inertia).
The external 2) Solve the security and economic
of power market and
equipment efficiency of combustion-wind distribution
new power grid
related to control (such as adopting the intelligent
dispatching rules, so
combustion combustion-wind distribution optimization
that the regulation
Function adjustment control based on neural network, boiler
quality of the
Guangdong optimization and CCS feedforward control technology
automatic control
Yudean Dapu and test of coordination conquering the long delay and large inertia
system during the deep
10 Power automatic has been put and fuel calorific value correction with the
pressure load and
Generation control system into use, and comprehensive outputs of turbine, boiler
frequent peak
Co., Ltd. of 2×660 MW the parameter and generator as the benchmark).
regulation with
unit optimization
varying load will meet 3) Realize the automatic precision control
and
the operation control of water supply in the whole course.
adjustment
requirements and the 4) Solve the self-start and stop control and
are underway
security control level accurate control including air volume, air
currently
of the unit will be temperature, loading force characteristics
improved. and separator frequency for the coal
pulverizing system of boiler.
5) Solve the problems of desulfurization
and denitration optimization and accurate
control, to ensure that the environmental
emission indicators are met.
After the project implementation, the
regulation quality of the automatic control
system during the deep pressure load and
23
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Project
Project
No company Project name Purpose Target and influence
progress
name
frequent peak regulation with varying load
will meet the operation control
requirements and the current situation of
power market will be adapted to.
Blending It is required to carry
Through the combustion adjustment test of
combustion and out the optimization
Guangdong the mixed and blended coals, the optimal
combustion and tests for fuel
Yudean Dapu The cold test control strategy will be determined to
strategy control strategy, air
11 Power has been improve the adaptation, security and
adjustment test volume control
Generation completed economic efficiency of the unit for the
for changed strategy and coal
Co., Ltd. changed coal type, etc. under various
coal type of pulverizing system
unknown working conditions.
boiler control strategy.
Application of The automatic control
advanced of a unit, such as
control reheated flue gas
technology in temperature and
ultra-low denitration and
emission control ammonia spraying
and energy control shall be
saving and optimized by
consumption introducing the
reduction of advanced control The software
Guangdong units technologies (MPC and hardware
Red Bay (denitration self-adaption, ADRC have been The unit shall be energy-saving with lower
12 Power optimization, active-disturbance-reje installed and consumption to obtain the maximum
Generastion reheated flue ction controller, IFC are underway economic benefit.
Co., Ltd. gas temperature internal feedback, for
control and self-learning control, debugging.
main steam etc.), and the reheated
temperature steam temperature and
control NOx concentration
concurrently) shall be accurately
controlled to reduce
the desuperheating
water and the quantity
of ammonia sprayed of
the reheater.
Research and The energy storage The The AGC frequency modulation service
application pilot equipment shall be feasibility quality shall be optimized by new
Guangdong of energy added for a unit of study has technology of energy storage to achieve
Red Bay storage and Honghaiwan Power been the fast turn with precise output and
13 Power combined Generation Co., Ltd. to completed, instantaneous adjustment, offset the
Generastion frequency carry out the AGC and the pilot response deviation of generator set and
Co., Ltd. modulation for frequency modulation has not be improve the response rate of unit adjusted
large thermal together with the commenced with the AGC instructions, so as to
power units combined generator yet provide the quality and efficient auxiliary
24
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Project
Project
No company Project name Purpose Target and influence
progress
name
set. service for the power system.
The steam distribution
mode of sequence
valve shall be added
based on the former
combination valve,
Steam The
and the sliding
distribution, installation
Guangdong pressure curve shall be
sliding pressure has been
Red Bay optimized according to
and energy completed Reduction of unit energy consumption and
14 Power the unit test with the
conservation and it is efficiency improvement
Generastion liquid levels of
optimization of ready for
Co., Ltd. high-pressure heater
#2 steam commissioni
and low-pressure
turbine set ng.
heater, the opening of
recycle valve of the
steam pump and the
automatic
optimization.
On the premise of
ensuring the safe
operation of the boiler
body and coal
pulverizing system, the
external control system The
Self-adaptation
collects the coal equipment The optimization is required by the
control for
Guangdong quality data and has been operation control for the coal pulverizing
outlet
Red Bay operation parameters installed and system of boiler with improving the outlet
temperature of
15 Power of coal mill from the is underway temperature of coal mill, reducing the
(super-critical)
Generastion SIS system and for the smoke exhaust temperature of boiler and
boiler coal mill
Co., Ltd. conduct the logical commissioni enhancing the boiler efficiency under the
of #1 and #2
analysis and operation ng and test self-adaptation control.
units
for these data to run
achieve the
self-adaptation control
for the outlet
temperature of boiler
coal mill.
It is required to
Water balance
propose the evaluation
test of four units
results for the current
Guangdong in the whole
operation effect of the The waste water control plan of our plant
Red Bay plant and
water treatment system shall be formulated, and the waste water
16 Power feasibility study Completed
and sewage (including zero discharge transformation shall be
Generastion on
sludge) treatment completed before 2020.
Co., Ltd. comprehensive
system through the
treatment of
accurate tests and
waste water
scientific
25
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Project
Project
No company Project name Purpose Target and influence
progress
name
computational
analysis, elaborate the
necessity and
feasibility of waste
water zero discharge,
perform the detailed
comparison
demonstration for all
transformation
schemes, put forward
the best transformation
scheme for the waste
water zero discharge,
propose the
transformation scheme
for the corresponding
supporting works and
obtain the feasibility
study report.
Regarding the 200
MW and 300 MW
Referring to the #1 and #5 units, the
simulation machine
re-commissioning is required for all
systems in the Shajiao
operation parameters and operation
A Power Plant with the
System conditions as per 1:1. Referring to the
remote access
maintenance systems of the #1 and #5 units, the
function, the technical
Guangdong and equipment engineering differences shall be modified
upgrading
Electric Power update for as required with the addition of
maintenance and
Development one-unit-double corresponding faults. All relevant
17 service are required for Completed
Co., Ltd. -module operations on DCS shall be consistent with
the #1 and #5 units,
Shajiao A simulation those on the unit to ensure the consistency
public system, network
Power Plant machine of 200 of on-off operation status. The system
control and denitration
MW and 300 maintenance of simulation machine
and desulfurization
MW units includes the operation stability and
equipment as well as
hardware and software faults of the whole
remote training in
set of simulation machine system, and the
other places after the
system shall be stably operated.
accurate simulation
transformation.
It is planned to rectify
and repair the public
network IP, the
Internet applications,
server host, etc. with The project contents have been completed.
Guangzhou
potential safety hazard, The provincial and municipal software
Huizhou Information
and also deploy the legalization system management
Natural Gas security
18 copyrighted software Completed requirements have been met, and the
Power integrated
detecting platform in related requirements of public security net
Generation service project
the internal office police have been met by the Internet
Co., Ltd.
computer of the boundary and external websites.
company to comply
with the provincial and
municipal software
legalization
26
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Project
Project
No company Project name Purpose Target and influence
progress
name
management
requirements.
For the project 1) The data has been shared for the unit
research, the control, simulation and information
simulation model shall system, and the integration of actual
be established, and the measured data and virtual data and of
big data optimizing real-time data and historical data has been
technology shall be highlighted to provide the data support for
used to establish the the system optimization function to
Energy-saving dynamical system of support the online analysis, diagnosis and
optimization unit in the overall optimization of the production by the
and working conditions. It power plant in the whole process.
Guangdong management is required to study
2) The dynamic benchmarking base in the
Huizhou decision-makin and establish the
overall working conditions and optimizing
19 Pinghai Power g system based dynamic and static Completed
algorithm model of the unit has been
Generation on online characters of the unit,
established to provide the platform and
Co., Ltd. simulation build the endogenetic
tools for the actual energy saving and
1,000 MW closed-loop optimizing
consumption reduction of the unit.
thermal power management mode and
unit deeply excavate the 3) The cockpit of management has been
man-machine potential realized, so that the managers will handle
to achieve the goals of the key data related to production,
overall improvement operation and management of the power
of unit performance plant in a one-stop way to provide the
and continuous important information support for the
optimum energy production, operation and management
consumption. decision-making.
According to the
information-based
construction planning, For the infrastructure MIS, the
the wind power development condition evaluation in the
Infrastructure company aims to build early project stage, project approval and
Guangdong
management a set of infrastructure investment decision-making, project
Wind Power
20 information MIS to realize the Completed construction commencement and complete
Generation
system (MIS) whole process project management before the projects
Co., Ltd.
project management for all are qualified in the "240" production
wind power projects acceptance have been completed for all
subordinate to projects of the company
Guangdong Wind
Power Company.
27
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Project
Project
No company Project name Purpose Target and influence
progress
name
Through the unit
operation parameter
collection and tests,
the ammonium
bisulfate blocking shall
be analyzed and
researched for the It is a
hot-end heat exchanger multi-year
elements of the air project. The
pre-heater after the design and
ultra-low emission supply were
transformation of the completed in
#7 unit, and the 2018. The
optimal design construction
Research on technical requirements, was started 1) Prevent the corrosion and blocking of
anti-blocking transformation cost during the heat exchanger elements in the air
Maoming and and other factors of the Class-B pre-heater;
Zhenneng comprehensive heat exchanger overhaul of
21 2) Effectively prolong the normal service
Thermoelectri treatment for elements shall be the unit in
life of air pre-heater;
c co., Ltd. heat exchanger proposed. The design February
3) Reduce the power consumption of fans;
elements of air shall be conducted 2019, and
pre-heater of according to all has been 4) Reduce the air leakage of air pre-heater.
600 MW unit economic and completed
reliability parameters basically at
and the requirements present. The
of preventing the heat start-up and
exchanger element commissioni
corrosion of air ng will be
pre-heater and started in
effectively prolonging April.
the normal service life
of air pre-heater to
ensure the long-term
safe, sound and
economical operation
of the air pre-heater.
It refers to that the
AGC instruction is
changed to the load
instruction of the
whole plant from the
former single unit, and
the load optimization
After the plant-level AGC is put into
Maoming calculation shall be
Plant-level AGC operation, the net coal consumption rate
Zhenneng undertaken via the
22 system Completed will be reduced by 0.2% at least under the
Thermoelectri AGC server after
transformation ideal working conditions compared with
c co., Ltd. receiving the load
that in the single AGC mode.
instruction of the
whole plant issued by
the dispatcher. The
AGC instruction will
be reasonably
distributed to all units
by the AGC server as
28
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Project
Project
No company Project name Purpose Target and influence
progress
name
per such principles as
economical efficiency,
rapidity and regulation
frequency, so as to
realize the safe, stable
and economical
operation of all units in
the power plant.
Upon the formal
situations, it is
required to coordinate
the control system and The easy switch of DC power supply and
Guangdong water supply control the complete electrical isolation shall be
DEH and MEH
Yudean system, add the realized by the DC power isolation to
control system
23 Jinghai Power configuration analog Completed ensure no electrical connection of
optimization of
Generation quantity output two-circuit DC power supply in operation
#3 and #4 units
Co., Ltd. modules, and add the and guarantee the reliability of the DEH
configuration analog and MEH control systems.
quantity input modules
for the DEH and MEH
control systems.
Situation of Research and Development Input by the Company
2018 2017 Increase/Decrease(%)
Number of Research and
303 357 -15.13%
Development persons (persons)
Proportion of Research and
4.41% 5.13% -0.72%
Development persons
Amount of Research and
15,319,005 27,896,103 -45.09%
Development Investment ( Yuan)
Proportion of Research and
Development Investment of 0.06% 0.10% -0.04%
Operation Revenue
Amount of Research and
Development Investment 10,275,228 10,915,230 -5.86%
Capitalization ( Yuan)
Proportion of Capitalization
Research and Development
67.08% 39.13% 27.95%
Investment of Research and
Development Investment
The Reason of the Prominent Change in Total Amount of Research and Development Input Occupying the
Business Income Year on Year
□ Applicable √ Not applicable
Explanation of the Reason for Substantial Changes in the Research and Development Input’s Capitalization Rate
and Its Reasonableness
□ Applicable √ Not applicable
29
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
5.Cash Flow
In RMB
Items 2018 2017 Increase/Decrease(%)
Subtotal of cash inflow received
31,552,291,981 31,168,841,936 1.23%
from operation activities
Subtotal of cash outflow received
25,552,355,625 27,492,807,433 -7.06%
from operation activities
Net cash flow arising from
5,999,936,356 3,676,034,503 63.22%
operating activities
Subtotal of cash inflow received
553,123,440 272,155,161 103.24%
from investing activities
Subtotal of cash outflow for
3,863,003,329 3,555,163,705 8.66%
investment activities
Net cash flow arising from
-3,309,879,889 -3,283,008,544 -0.82%
investment activities
Subtotal cash inflow received
18,696,353,753 14,959,157,340 24.98%
from financing activities
Subtotal cash outflow for
20,812,608,337 15,540,475,704 33.93%
financing activities
Net cash flow arising from
-2,116,254,584 -581,318,364 -264.04%
financing activities
Net increase in cash and cash
573,802,402 -188,293,160 404.74%
equivalents
Notes to the year-on-year change of the relevant data
√Applicable □ Not applicable
1. The net cash flow from operating activities increased by 63.22%, mainly due to the decrease in cash purchases
for fuel purchases due to the transfer of power generation rights of some units.
2. The cash inflow from investment activities increased by 103.24%, mainly due to the acquirement of 162 million
yuan of monetary funds from the merger of Maoming Thermal Power Plant.
3. The net cash flow from financing activities decreased by 264.04%, mainly due to the repayment of corporate
bonds and other long-term and short-term loans.
4. The net increase of cash and cash equivalents was 404.74%, which was mainly due to the increase in net cash
flow from operating activities during the reporting period and the decrease in net cash flow from financing
activities.
Notes to the big difference between cash flow from operating activities and net profit in the reporting year
√Applicable □ Not applicable
The main impact of non-cash outflow of assets, depreciation and amortization, interest expense of non-business
activities.
Ⅲ.Analysis of Non-core Business
□Applicable √Not applicable
30
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Ⅳ.Condition of Asset and Liabilities
1.Condition of Asset Causing Significant Change
In RMB
End of 2018 End of 2017
Proportion
Proportion in Notes to the
Proportion in the increase/ significant change
Amount the total Amount
total assets(%) decrease
assets(%)
Monetary fund 5,574,382,892 7.60% 4,996,580,490 7.04% 0.56%
Accounts receivable 3,358,331,949 4.58% 2,826,237,259 3.98% 0.60%
Inventories 1,481,817,270 2.02% 1,527,634,773 2.15% -0.13%
Investment real
10,810,722 0.01% 8,296,639 0.01% 0%
estate
Long-term equity
6,395,134,754 8.72% 5,801,006,412 8.17% 0.55%
investment
Fixed assets 41,157,594,848 56.13% 41,010,868,549 57.76% -1.63%
Construction in
7,740,754,343 10.56% 8,503,556,373 11.98% -1.42%
process
Short-term loans 7,526,000,000 10.26% 9,270,000,000 13.05% -2.79%
Long-term loans 18,802,292,664 25.64% 19,465,723,869 27.41% -1.77%
2.Asset and Liabilities Measured by Fair Value
√ Applicable □Not applicable
In RMB
Gain/loss on
Cumulative fair Impairment Purchased Sold amount
Amount at fair value
value change provisions in amount in the in the Amount at
Items year change in the
recorded into the reporting reporting reporting year end
beginning reporting
equity period period period
period
Financial assets
3.
Avaliable-for-sale 408,992,985 550,678,145.73 704,342,514.73 180,135,200 1,139,806,331
financial assets
Total 408,992,985 550,678,145.73 704,342,514.73 180,135,200 1,139,806,331
Financial
0 0
Liability
Did great change take place in measurement of the principal assets in the reporting period ?
□ Yes √ No
3. Restricted asset rights as of the end of this Reporting Period
（1）Pledge of assets
As of December 31, 2018, the Company had a total of accounts receivable with a book value of 396,323,295 yuan
(as of December 31, 2017: 402,847,793 yuan), together with the power charge rights of several power generation
subsidiaries, were pledged to the bank to obtain long-term loans of 2,765,356,586 yuan, of which: the balance of
long-term loans due within one year was 213,259,115 yuan (as of December 31, 2017: 2,698,978,707 yuan). The
31
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
borrowings are detailed as follows:
1.As at December 31, 2018, the long-term pledge borrowings of the following subsidiaries were based on their
power fee charging rights and accounts receivable as pledges:
In RMB
Name December 31, 2018 December 31, 2017
Guangdong Shaoguan Yuejiang Power Generation Co., Ltd. 2,151,963,439 2,276,504,889
Guangdong Yudean Leizhou Power Generation Co., Ltd. 236,829,612 188,420,594
Guangdong Yudean Qujie Wind Power Generation Co., Ltd. 162,820,000 -
Guangdong Yudean Zhanjiang Wind Power Generation Co., Ltd. 138,945,000 156,465,000
Guangdong Yudean Xuwen Wind Power Generation Co., Ltd. 74,798,535 77,588,224
Total 2,765,356,586 2,698,978,707
2.As at December 31, 2018, the long-term pledge borrowings of the following subsidiaries due within
one year were based on their power fee charging rights and accounts receivable as pledges:
In RMB
Name December 31, 2018 December 31, 2017
Guangdong Shaoguan Yuejiang Power Generation Co., Ltd. 186,859,840 180,897,292
Guangdong Yudean Zhanjiang Wind Power Generation Co., Ltd. 18,274,167 17,520,000
Guangdong Yudean Xuwen Wind Power Generation Co., Ltd. 6,527,993 10,062,668
Guangdong Yudean Leizhou Power Generation Co., Ltd. 1,597,115 1,099,615
Total 213,259,115 209,579,575
V.Investment situation
1. General
√ Applicable □ Not applicable
Investment Amount in 2018(RMB) Investment Amount in 2017(RMB) Change rate
1,179,713,500 585,140,000 101.61%
2.Condition of Acquiring Significant Share Right Investment during the Report Period
√ Applicable □ Not applicable
In RMB
32
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Gain or L Whether
Name of the Share revenue Date of
Main Investment Investment Capital Investment Product Progress up to Ba ess or the to In v
Company Proport Partner projecti Disclosure Disclosure Index
Business Way Amount Source Horizon Type lance Sheet Date Current I olve in
Invested ion % on (Note 5)
nvestment Lawsuit
During the reporti
Guangdong ng period, the co Announcement No.:2018-16)P
Wind
Yudean Qujie nstruction of Zhan ublished in
Power Capital inc 548,000,000 Self Electric March 2
Wind Power 100 % No Long-term jiang Wailuo Offs -- No China Securities Daily, S
Generatio rease funds power 2,2018
Generation hore Wind power ecurities Times and http
n
Co., Ltd. project was unde //.www.cninfo.com.cn
r normal progress
During the reporti
ng period,Zhuhai
Jinwan offshore w
Announcement No.:2018-29)P
Guangdong Wind ind power project April 28,
ublished in
Wind Power Power Capital inc 365,000,000 Self Electric and Yangjiang S 2018, Au
100 % No Long-term -- No China Securities Daily, S
Generation Generatio rease Funds power hapa offshore prel gust 31,2
ecurities Times and http
Co., Ltd. n iminary work or 018
//.www.cninfo.com.cn
project constructio
n was under nor
mal progress.
During the reporti
GuangdongHu Announcement No.:2013-36)P
Natural China Petroleum ng period, Huizho
izhou Natural ublished in
Gas Capital inc 103,578,300 Self & Gas Group Co., Electric u LNG power pla April 28,
Gas 67 % Long-term -- No China Securities Daily, S
Generatio rease Funds Ltd.（shareholding power nt phase II expan 2013
Thermoelectri ecurities Times and http
n ratio：33%） sion project #4, #
c Co., Ltd. //.www.cninfo.com.cn
5 completed
Guangdong Announcement No.:2018-28)P
Yudean Guangdong Yudea ublished in
Property Capital inc Self Insuran In normal operati 14,704,347 April 28,
Property 98,000,000 49 % n Group（sharehol Long-term No China Securities Daily, S
Insurance rease Funds ce on 2018
Insurance Co., ding ratio：51%） ecurities Times and http
Ltd. //.www.cninfo.com.cn
State-owned assets
Shenzhen Venture Announcement No.:2018-50)P
Investme Capital inc Self Supervision and In normal operati 16,978,500 September
Capital Group 65,135,200 3.67% Long-term Capita No ublished in
nt rease Funds Administration Co on 20,2018
Co., Ltd. l China Securities Daily, S
mmission of Shen
33
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Gain or L Whether
Name of the Share revenue Date of
Main Investment Investment Capital Investment Product Progress up to Ba ess or the to In v
Company Proport Partner projecti Disclosure Disclosure Index
Business Way Amount Source Horizon Type lance Sheet Date Current I olve in
Invested ion % on (Note 5)
nvestment Lawsuit
zhen Municipal pe ecurities Times and http
ople's Government //.www.cninfo.com.cn
（shareholding rati
o：28.1952%）
Total -- -- 1,179,713,500 -- -- -- -- -- -- 0 31,682,847 -- -- --
3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
□ Applicable √ Not applicable
4.Investment of Financial Asset
（1）Securities investment
√ Applicable □Not applicable
In RMB
Book value
Book value Purchase Sale Gain/los
Initial Mode of Changes in Cumulative fair balance at the
Security Security Stock balance at the amount in amount in s of the Accounting Source of
investment accounting fair value of value changes in end of the
category code Abbreviation: beginning of the the this the this reportin items the shares
cost measurement the this period equity reporting
reporting period period period g period
period
Financial
Domestic
Shenzhen assets
and foreign 000027 15,890,628 FVM 76,356,000 -10,206,000 50,259,372 66,150,000 Self funds
Energy available
stocks
for sales
Financial
Domestic
assets
and foreign 600642 Shenergy 235,837,988 FVM 325,418,985 -54,421,605 35,159,392 270,997,380 Self funds
available
stocks
for sales
Financial
Domestic
assets
and foreign 831039 NEEQ 3,600,000 FVM 7,218,000 -3,600,000 18,000 3,618,000 Self funds
available
stocks
for sales
Total 255,328,616 -- 408,992,985 -68,227,605 85,436,764 0 0 0 340,765,380 -- --
34
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Disclosure date for the notice of
approval by the Board (If any)
Disclosure date for the notice of
approval by shareholders’ Meeting
(If any)
（2）Investment in Derivatives
□ Applicable √ Not applicable
Nil
5.Application of the raised capital
□ Applicable √ Not applicable
Nil
35
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Ⅵ.Significant Asset and Right Offering
1.Situation of Significant Asset Sale
□ Applicable √ Not applicable
Nil
2.Situation of Substantial Stake Sale
□ Applicable √ Not applicable
Ⅶ.Analysis of the Main Share Holding Companies and Share Participating Companies
√ Applicable □ Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company
In RMB
Compa Sectors Registered Operating
Company Name Total assets Net assets Turnover Net Profit
ny type engaged in capital profit
Power
Shenzhen generation
Subsidi
Guangqian Electric and power 1,030,292,500 1,738,775,134 1,523,688,363 1,578,959,468 293,140,274 217,741,510
ary
Power Co., Ltd. station
construction.
Power
Guangdong
generation
Huizhou Pinghai Subsidi
and power 1,370,000,000 5,717,822,858 2,059,658,267 3,409,291,625 621,336,918 447,090,283
Power Generation ary
station
Plant Co., Ltd.
construction.
Power
Guangdong
generation
Huizhou Natural gas Subsidi
and power 1,455,893,000 4,188,347,804 1,977,252,192 2,181,208,736 346,582,409 258,912,703
Power Generation ary
station
Co., Ltd.
construction.
Power
Guangdong Red generation
Subsidi
Bay Power and power 2,749,750,000 6,702,910,738 3,302,013,741 4,089,089,204 314,389,189 230,336,446
ary
Generation Co., Ltd. station
construction.
Power
generation
Zhanjiang Electric Subsidi
and power 2,875,440,000 4,447,726,762 4,087,805,472 1,997,634,196 254,675,122 234,112,612
Power Co., Ltd. ary
station
construction.
Power
Guangdong Yudean generation
Subsidi
Jinghai Power and power 2,919,272,000 9,198,927,667 3,509,291,691 4,871,729,888 156,318,617 118,466,364
ary
Generation Co., Ltd. station
construction.
Power
Maoming Zhenneng Subsidi 1,437,985,100 3,032,630,588 1,310,428,812 1,552,628,327 -136,049,753 -98,577,591
generation
36
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Compa Sectors Registered Operating
Company Name Total assets Net assets Turnover Net Profit
ny type engaged in capital profit
Company ary and power
station
construction.
Power
generation
Lincang Yudean Subsidi
and power 396,490,000 1,365,862,109 282,527,679 74,926,701 -87,439,014 -87,568,487
Energy Co., Ltd. ary
station
construction.
Power
Zhanjiang generation
Subsidi
Zhongyue Energy and power 1,454,300,000 4,386,995,844 899,427,220 1,543,769,329 -187,824,299 -138,013,508
ary
Co., Ltd. station
construction.
Power
Guangdong Yudean generation
Subsidi
Dapu Wind Power and power 1,000,000,000 4,780,260,094 805,422,561 1,257,056,007 -203,308,409 -151,414,529
ary
Generation Co., Ltd. station
construction.
Power
Guangdong
generation
Shaoguan Yuejiang Subsidi
and power 1,400,000,000 6,913,710,134 412,931,527 2,181,861,777 -364,193,226 -364,749,341
Wind Power ary
station
Generation Co., Ltd.
construction.
Sharing
Shanxi Yudean Coal
Compa 1,000,000,000 3,843,006,761 3,601,608,790 3,689,284 569,419,971 569,420,122
Energy Co., Ltd. Investment
ny
Power
Guangdong Guohua Sharing generation
Taishan Power Compa and power 4,669,500,000 10,923,026,575 7,643,625,249 8,171,917,086 1,091,644,135 811,868,081
Generation Co., Ltd. ny station
construction.
Guangdong Power Sharing
Industry Fuel Compa Coal Trade 630,000,000 2,994,601,862 1,045,593,651 21,313,952,451 187,894,245 151,229,161
Company ny
Sharing
Guangdong Yudean financial
Compa 2,000,000,000 22,559,762,521 2,845,792,424 720,277,335 418,717,268 341,902,454
Finance Co., Ltd. service
ny
Acquirement and disposal of subsidiaries in the Reporting period
√ Applicable □ Not applicable
Way of acquiring and disposing of
Impact on the whole producing operation
Company name subsidiary corporations within the
and performance
reporting period
During the reporting period, Zhuhai
Guangdong Yudean Zhuhai Offshore Wind Jinwan offshore wind power project was in
Invested
Power Co., Ltd. the preliminary stage and with construction
not commenced yet.
Guangdong Yudean Zhencheng Integrated
Invested There is no significant impact
Energy Co., Ltd.
Note:
37
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
1. During the reporting period, the profits of most coal-fired power plants decreased significantly year on year due
to the increase in coal prices and the concession of market electricity prices. Some subsidiaries such as Yuejiang
Company, Zhanjiang Zhongyue Company, Zhenneng Company and Dapu Power Plant suffered operating losses.
2. Due to the power market reform in Yunnan Province, Lincang Company, a wholly-owned subsidiary of the
Company, suffered from operating losses during the reporting period due to lower electricity consumption and low
electricity price，and impairment of assets. Guangqian Company, Huizhou LNG and other companies with strong
profitability for natural gas power generation projects have made a greater contribution to the company's net profit
to its parent.
3. The company's investment income in affiliated companies has increased overally. Among them, Shanxi Energy
Company has strong profitability due to the continuous high price of coal; Affected by the year-on-year increase
in electricity, Taishan Power Plant's year-on-year profit increases significantly; Due to the continuous expansion
of business scale, the profits of financial companies has a larger year-on-year increase.
Ⅷ.Special purpose vehicle controlled by the Company
□ Applicable √ Not applicable
Ⅸ.Prospect for future development of the Company
1. The Development Trend of the Industry
Currently, China's power generation industry continues to present a diversified competitive pattern. The
company's main power assets are mainly in Guangdong Province, which is with many other power producers and
is greatly affected by the power transmission from west to east. China's electricity production has always been
driven by thermal power. Although the proportion of thermal power has decreased with the rapid development of
nuclear power, hydropower, wind power, solar energy and other new and renewable energy sources in the past
decade, thermal power is still the main power source in China. The problem of excess coal power production
capacity and excessive increase in installed capacity across the country has been significantly curbed. However,
due to China's energy structure of "rich coal, deficient oil, and lean gas", the current situation that China's basic
energy supply is dominated by coal cannot be changed for a foreseeable period of time. Moreover, a
break-through has been made for the ultra-clean emission power generation technology for large coal-fired power
generation units currently, and there is still room for development of large-capacity and high-parameter coal-fired
power generation units in the future. In addition, investment in large-scale natural gas power generation projects
conforms to the national policy guidance. Although the gas price of natural gas is relatively high and the economy
of investment in gas turbine projects is still not ideal currently, with the deepening of power system reform, the
compensation mechanism for social effects of gas turbine is expected to achieve a breakthrough in the future and
is expected to have a better development prospect in the future. With the deepening of power system reform, the
transaction scale of power market has expanded, and the level of price difference is uncertain. Therefore, in this
environment, the thermal power industry will mainly rely on developing large-capacity and high-parameter coal
power and accelerating gas power to optimize its structure, upgrading its technical strength to reduce consumption
and increase efficiency, marketing to obtain electric quantity and electricity prices, and reducing costs and
increasing efficiency to reduce management costs.
2. Corporate development strategy
During the 13th Five-Year Plan period, the company established the strategic orientation of "Large-scale group
38
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
power generation listed companies serving the national strategy, group strategy and urban development, with
power generation business as its main development area, industrial operation as its main development idea, and
domestic first-class and power generation listed companies with international competitiveness as its main
development direction", to optimize the development of coal and electricity, steadily develope gas and electricity,
vigorously develope clean energy sources such as wind power and hydropower, continuously optimize the power
supply structure, and select the pattern of high efficiency, cleanness and low carbon. For future development, the
company will actively distribute clean energy sources such as wind power, gas power and hydropower, and
optimize the power generation structure; In combination with relevant national policies, it will actively promote
large and reduce small for upgrade and transformation for thermal power projects, to improve the quality of power
supply; It will actively expand the electricity sales business, conform to the situation of power system reform, and
explore new business fields and development space.
3.Production and operation plans
In 2019, the company's consolidated statement has a budget target value of 70.981 billion kilowatt hours of
on-grid electricity, which is basically the same as the actual amount of on-grid electricity completed in 2018; The
budgetary target value of the main business revenue is RMB 27.927 billion, an increase of RMB 800 million and
increase of 2.95 % compared to the actual amount of main business operating revenue of RMB 27.126 billion; the
budgetary value for the full-year planned investment is RMB 1.2531 billion, an increase of RMB 350 million or
an increase of 29.75% over the actual completed investment of RMB 1.18 billion in 2018.
(Note: The above operating plan does not represent the company's profit forecast for 2019, whether it can be
achieved depending on various factors such as changes in the electricity market and coal market conditions, thus
there is considerable uncertainty, and investors should pay special attention to it.)
4.Possible risks
Firstly, the main business is under constant pressure. Due to the expansion of power transmission from the west to
the east and the continuous production of nuclear power and gas power in the province, the market share of coal
power in the province has been reduced, and the utilization hours of coal-fired units in the company are at risk of
further decline. Long-term deep peak regulation, low-load operation and repeated start-up and shutdown seriously
affect the safety and economy of the units. Coal prices continue to run at high levels, generating costs remain high,
and environmental protection investment needs to be increased, which affect the economic benefits of the unit. In
2019, Guangdong's electricity market will expand to 200 billion kilowatt-hours, with a year-on-year increase of 40
billion kilowatt-hours, accounting for 45% of the province's electricity generation, and the average price of
electricity sold may further decline against the background of an oversupply of electricity.
Secondly, the project development is limited. Under the current policy environment, the overall economic benefits
of coal-fired units are relatively poor, and only large units in coastal areas are relatively stable. Although the clean
energy business of the company has made great progress in recent years, its overall proportion is still relatively
low, and the investment income of the newly-launched cogeneration project needs to be improved. The task of
optimizing the main business structure is arduous.
Thirdly, the system and mechanism is lacking in competitiveness. With the deepening of state-owned enterprise
reform, power system reform and supply-side reform, the degree of marketization of upstream and downstream
enterprises in power production continues to improve, which reduces the profitability of the company. However,
the company's internal management mechanism, operation mode and allocation measures still remain under the
traditional system. It is necessary to speed up the reform of the system and mechanism so as to truly improve the
company's market competitiveness.
39
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
(V) Countermeasures
Firstly, focus on improving quality and efficiency, improving the level of management, and improving the quality
and efficiency of enterprise operations. Comprehensively organize the value chain of
"purchase-production-supply-sale" of power generation enterprises, reasonably define the management interface
and value interface, implement the management responsibility for compacting relevant factors, fully connect with
the coal, natural gas and electricity markets, establish a new mechanism that is conducive to releasing the
operating pressure of the main power industry to the market, and improve the market competitiveness of power
generation enterprises. Ensure that Guangdong Electric Power's characteristic power marketing system is
implemented in place, so that power marketing can more adapt to market changes. Continue to promote all-round
meticulous management for all employees, continuously improve the management level and enhance the quality
and efficiency of enterprise operation.
Secondly, adhere to the new development concept and steady progress, and improve the quality of development.
Continue to implement the deployment and instruction spirit of Guangdong provincial government on vigorously
developing offshore wind power and promoting industrial transformation and upgrading, and accelerate the
development of offshore wind power projects; In combination with national policies, encourage the development
of clean energy sources such as natural gas and biomass and the clean and efficient use of coal, accelerate the
layout of gas, clean coal and biomass power generation projects and strive for new development opportunities;
Based on the development plan of Guangdong-Hong Kong-Macao Greater Bay Area, full use the opportunity of
decommissioning and reconstruction of Shajiao Power Plant to build a super-strong energy supply base with
combined supply of gas, electricity, heat and coldness.
Thirdly, persist in the mechanism of deepening the reform and innovating the development. Taking the
opportunity of the controlling shareholder Guangdong Energy Group's implementation of the three-level control
mode adjustment of "group headquarters+platform enterprises+business units", further straighten out its control
mode over subordinate enterprises, optimize the system process, and establish an efficient control system with
hierarchical responsibility, hierarchical decision-making and hierarchical management to ensure that it is "well
received and well managed". Vigorously promote the construction of incentive and restraint mechanisms,
formulate new measures for the assessment and compensation incentive management of subordinate enterprises,
establish a new assessment index system that integrates party building, safety, operation, development and
enterprise management, and establish a long-term incentive mechanism that combines long term and short term,
focuses on both incentives and constraints, and integrates benefit distribution and long-term value creation.
Ⅹ.Particulars about researches, visits and interviews received in this reporting period
1.Particulars about researches, visits and interviews received in this reporting period
√ Applicable □ Not applicable
Reception time Way of reception Types of visitors Basic index
Details can be found in the Record Chart of the
May 25,2018 Onsite investigation Organization Investor Relation Activity disclosed on Juchao
website(www.cninfo.com.cn) on 29 May 2018.
Details can be found in the Record Chart of the
June 7,2018 Onsite investigation Organization Investor Relation Activity disclosed on Juchao
website(www.cninfo.com.cn) on 11 June 2018.
Details can be found in the Record Chart of the
July 5,2018 Onsite investigation Organization
Investor Relation Activity disclosed on Juchao
40
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
website(www.cninfo.com.cn) on 6 July 2018.
Details can be found in the Record Chart of the
July 24,2018 Onsite investigation Organization Investor Relation Activity disclosed on Juchao
website(www.cninfo.com.cn) on 26 July 2018.
Details can be found in the Record Chart of the
September 26,2018 Onsite investigation Organization Investor Relation Activity disclosed on Juchao
website(www.cninfo.com.cn) on 8 October 2018.
Details can be found in the Record Chart of the
November 20,2018 Onsite investigation Organization Investor Relation Activity disclosed on Juchao
website(www.cninfo.com.cn) on 23 November 2018.
Reception times 6
Reception agency amount 26
Reception personal number 34
Others 0
Whether to disclose, reveal or disclose non-public
No
material information
41
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
V. Important Events
ⅠSpecification of profit distribution of common shares and capitalizing of common reserves
Formulation, implementation and adjustment of profit distribution policy of common shares especially cash
dividend policy during the reporting period
√Applicable□ Not applicable
The profit distribution policy in the Articles of Association of the company is as follows:
Article 161
The company highly valued the investors especially the reasonable investment returns for the small and medium
investors, and 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 of dividends
that allowed by the laws, but shall give the priority to the cash dividends distribution for profits distribution. If it
meets the conditions required for cash dividends distribution, then the company shall adopt the cash dividends for
the profits distribution.
(3) If the net profits attributable to shareholders of the parent company realized by the company in the year are
positive and the cumulative distributable profits in the end of the year are positive, the company shall distribute
dividends.
(4) The profits annually distributed by the company in cash dividends shall be not less than 10% of distributable
profits realized in the year, and the accumulative profits distributed in cash dividends in the most recent three
years shall be not less than 30% of the mean distributable profits realized in the most recent three years. When the
company carries out the profit distribution, the proportion of the cash dividends shall be not less than 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 with
the relevant provisions of the Articles of Association. From 2016 to 2018, the company's cash dividends accounted
for 44.85%, 56.52% and 66.39% of the distributable profits realized in each year respectively. In the future, the
company will continue to maintain the continuity, rationality and stability of cash dividends and actively repay its
shareholders.
Special explanation on cash dividend policy
Satisfy regulations of General Meeting or requirement of Article
Yes
of Association
Well-defined and clearly dividend standards and proportion Yes
Completed relevant decision-making process and mechanism Yes
Independent directors perform duties completely and play a
Yes
proper role
Minority shareholders have ample opportunities and their
Yes
legitimate rights and interests are effectively protected
Condition and procedures are compliance and transparent while During the reporting period, the company's cash dividend policy
the cash bonus policy adjusted or changed was not adjusted or changed.
Statement on profit distribution plan and capitalization of capital reserve plan of the Company in nearly three
42
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
years (including the report period)
The company’s dividend distribution plan of the year 2018 was: Based on that the total share capital of the
company is 5,250,283,986 shares, for A-share, the company will distribute cash dividends of RMB 0.60 (tax
inclusive per 10 shares; for B-share, the company will distribute cash dividends of RMB 0.60 (tax inclusive) per
10 shares.
The company’s dividend distribution plan of the year 2017 was: Based on that the total share capital of the
company is 5,250,283,986 shares, for A-share, the company will distribute cash dividends of RMB 0.80 (tax
inclusive per 10 shares; for B-share, the company will distribute cash dividends of RMB 0.80 (tax inclusive) per
10 shares.
The company’s dividend distribution plan of the year 2016 was: Based on that the total share capital of the
company is 5,250,283,986 shares, for A-share, the company will distribute cash dividends of RMB 0.80 (tax
inclusive per 10 shares; for B-share, the company will distribute cash dividends of RMB 0.80 (tax inclusive) per
10 shares.
Cash dividend in latest three years
In RMB
Net profit Amount of
Ratio in net profit Proportion of Ratio of the total cash
attributable to cash
attributable to the cash dividends bonus (other ways
Amount for the over of the dividends Amount for
parent company from cash included) in net profit
parent company from cash
Year cash bonus in the offer to cash bonus attributableto common
in the offer to
(tax included) consolidated repurchase (tax included) stock shareholders of
consolidated repurchase
financial shares of the listed company contained
financial shares of the
statements funds in consolidation statement
statements funds
2018 315,017,039.16 474,461,997 66.39% 0 0 % 315,017,039.16 66.39%
2017 420,022,718.88 743,180,431 56.52% 0 0 % 420,022,718.88 56.52%
2016 420,022,718.88 936,534,941 44.85% 0 0 % 420,022,718.88 44.85%
In the reporting period, both the Company’s profit and the parent company’s retained earnings were positive
however not cash dividend distribution proposal has been put forward.
□ Applicable √ Not applicable
II.Profit distribution plan and capitalizing of common reserves plan for the Period
√ Applicable □ Not applicable
Bonus shares distributed at the rate of _(share)for every 10 shares 0
Dividend distributed at the rate of CNY___ for every 10 shares
0.60
(with tax inclusive)
Number of shares converted for every 10 shares (shares) 0
Share capital base for the dividend distribution preplan (shares) 5,250,283,986
Total cash dividend distributed (with tax inclusive) 315,017,039.16
Amount of cash dividend distributed in other way(s) (such as
0
shares repurchased)
Total amount of cash dividend (including other way(s)) 315,017,039.16
43
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Profit available for distribution (CNY) 2,576,482,555
Proportion of the cash dividend in the total profit available for
100%
distribution (%)
Particular about cash dividend in the period
If the company’s development is at the growth stage with arrangements of significant capital expenditures, the minimum proportion
of cash dividend in the profit distribution should reach 20%.
Details of proposal of profit distribution preplan or share conversion from capital public reserve
In 2018 the base number for the company’s net profits distribution is RMB473,886,117, plus the non-distributed profits of RMB
22,102,596,438 in the prior year, thus the upper limit of the distributable profits is RMB2,576,482,555. According to the Articles of
Association of the company, draw RMB117,603,557 for the statutory surplus reserve taking for 10% of net profits, draw
RMB294,008,893 for the other surplus reserve taking 25% of the total net profits, then the upper limit of the distributable profits to
the shareholders is RMB2,164,870,105. The company's 2018 annual profits distribution plan is: Based on that the number of the
company’s total share capital at the end of 2018 is 5,250,283,986 shares, planned that the company will distribute cash dividends of
RMB0.60 (tax inclusive) to A-share shareholders and the company will distribute cash dividends of RMB 0.60 (tax inclusive) to
B-share shareholders, thus the total distribution of profits is RMB 315,017,039.16, the remaining undistributed profits will be
carried forward for the future years of profit distribution.
III. Commitments to fulfill the situation
1.The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of the
reporting period made by the company, shareholder, actual controller, acquirer, director, supervisor, senior
management personnel and other related parities.
Nil
2.The existence of the company's assets or projects earnings forecasts and earnings reporting period is still in the
forecast period, the company has assets or projects meet the original profit forecast made and the reasons
explained
□ Applicable √ Not applicable
IV.Particulars about the non-operating occupation of funds by the controlling shareholder
□ Applicable √ Not applicable
No non-operating occupation from controlling shareholders and its related party in the period.
V.Explanation of the Supervisory Committee and Independent Directors (If applicable)on the Qualified
Auditor’s Report Issued by the CPAs.
□ Applicable √ Not applicable
VI.Explain change of the accounting policy, accounting estimate and measurement methods as compared
with the financial reporting of last year.
√Applicable □ Not applicable
Changes in Presentation Methods of Financial Statements
According to the requirements of the Notice on Revising and Issuing the Format of General Enterprise Financial
Statements for 2018 (Caikuai [2018] No. 15), the balance sheet will merge "notes receivable" and "accounts
receivable" into newly added "notes receivable and accounts receivable", merge "interest receivable" and
44
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
"dividend receivable" into "other receivables", merge "fixed assets liquidation" into "fixed assets", and merge
"engineering materials" into "construction in progress", merge "bills payable" and "accounts payable" into the
newly added "bills payable and accounts payable", and merge "special accounts payable" into the "long-term
payables"; In the income statement, an additional item entitled "research and development expenses" is added to
report expenditures incurred in the process of research and development, and detailed items entitled "interest
expenses" and "interest income" are split under the item entitled "financial expenses"; The Company has
conducted a corresponding retrospective application on the comparison data. The change of accounting policy has
no effect on the merger, net profit of the company and shareholders' equity.
VII.Explain retrospective restatement due to correction of significant accounting errors in the reporting
period
□Applicable √ Not applicable
No major accounting errors within reporting period that needs retrospective restatement for the Company in the
period.
VIII.Explain change of the consolidation scope as compared with the financial reporting of last year.
√Applicable □ Not applicable
New Subsidiary Establishment of the Year
Registered Proportion
Name Business place Registered address Nature Acquired
capital (%)
Guangdong Yudean
Zhuhai, Jinwan District, Electric
Zhuhai Offshore Wind 65,000,000 100.00% Invested
Guangdong Zhuhai, Guangdong Power
Power Co., Ltd.
Guangdong Yudean
Maoming, Maonan District, Electric
Zhencheng Integrated 20,000,000 37.23% Invested
Guangdong Maoming, Guangdong Power
Energy Co., Ltd.
IX. Engagement/Disengagement of CPAs
CPAs currently engaged
Name of the domestic CPAs PWC Certified Public Accountants (special general partnership)
Remuneration for domestic accounting firm (RMB’0000) 333
Continuous life of auditing service for domestic accounting firm 3
Name of domestic CPA Wang Bin, Guo Biyu
The Continuous Years of Audit Service of Certified Public
The Continuous Years of Wang Bin is 3,and Guo Biyu is 1.
Accountants of China Certified Public Accountants
Has the CPAs been changed in the current period
□ Yes √ No
Description of the CPAs, financial adiver or sponsor engaged for intemal control auditing
□Applicable √ Not applicable
45
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
X.Situation of Facing Listing Suspension and Listing Termination after the Disclosure of the Yearly Report
□Applicable √ Not applicable
XI.Bankruptcy reorganization
□Applicable √ Not applicable
No bankruptcy reorganization for the Company in reporting period.
XII.Significant lawsuits and arbitrations of the Company
□Applicable √ Not applicable
No major lawsuits and arbitrations of the Company
XIII.Situation of Punishment and Rectification
□Applicable √ Not applicable
No penalty and rectification for the Company in reporting period.
XIV.Credit Condition of the Company and its Controlling Shareholders and Actual Controllers
□Applicable √ Not applicable
XV.Implementation Situation of Stock Incentive Plan of the Company, Employee Stock Ownership Plan or
Other Employee Incentive Measures
□Applicable √ Not applicable
During the reporting period, the company has no stock incentive plan, employee stock ownership plan or other
employee incentives that have not been implemented.
XVI.Material related transactions
1. Related transactions in connection with daily operation
□Applicable √ Not applicable
Nil
2. Related-party transactions arising from asset acquisition or sold
□Applicable √ Not applicable
No related transactions by assets acquisition and sold for the Company in reporting period.
46
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
3. Related-party transitions with joint investments
□Applicable √ Not applicable
No main related transactions of joint investment outside for the Company in reporting period.
4. Credits and liabilities with related parties
□Applicable √ Not applicable
Nil
5. Other significant related-party transactions
√ Applicable □ Not applicable
(1)2018 daily related transactions were carried out after examination and approval by 2018 second provisional
shareholders' general meeting. Refer to (5) Related transactions of XII. Relationship between related parties and
the transactions between them of the Financial Report of this report for details.
(2) The Proposal on the Financial Services such as Making the Application of the Total Loan Limit of RMB 17
Billion and Handling the Deposit Settlement to the Related Party- Guangdong Yudean Finance Co., Ltd by the
Company and Some of its Subsidiaries was approved in the company’s 2017 annual general shareholder meeting
for implementation.
(3)According to the statement of the controlling shareholder Guangdong Energy Group Co., Ltd. on undertaking
to fulfill relevant matters, in order to avoid horizontal competition and fulfill its commitment to relevant
horizontal competition, the company and Guangdong Energy Group have signed the Equity Trust Agreement,
which entrusts the shareholders' rights of the company within the trust scope of Guangdong Energy Group to the
Company except the rights of ownership, income and disposition. The expected trust fee is 2.45 million/year,
which is reviewed and approved by the second meeting of the ninth board of directors of the Company.
(4) In order to effectively protect the property value of power generation equipment, reduce the risk cost, improve
the risk control level, and ensure the smooth progress of production and operation activities, the Company and
Guangdong Yudean Property Self-Insurance Co., Ltd., a affiliated party, signed the Insurance Cooperation
Framework Agreement in which the self-insurance company provides insurance and risk management services to
the Company and its holding subsidiaries. The total cost within the term of the agreement shall not exceed 400
million yuan, which was reviewed and approved by the second meeting of the Ninth Board of Directors of the
Company.
(5) In order to further enhance the self-insurance company's ability to undertake insurance business and enhance
the enterprise's ability to resist risks, the Company and its affiliated party Guangdong Energy Group jointly
increased capital to the self-insurance company, of which the Company increased capital by 98 million yuan
according to its 49% equity ratio. The above matters were reviewed and approved by the third meeting of the
ninth board of directors of the Company and approved by the annual general meeting of shareholders of the
Company in 2017.
(6) In order to ensure the safety of capital supply, broaden financing channels, ease the pressure of capital,
maintain and promote the smooth progress of production, operation and investment activities, the Company and
Guangdong Yudean Financial Leasing Co., Ltd. signed a Financial Leasing Cooperation Framework Agreement
with a total financing amount of not more than 5 billion yuan. The above matters were reviewed and approved by
the fifth meeting of the ninth board of directors of the Company and approved by the fourth extraordinary general
47
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
meeting of shareholders in 2018.
(7) In order to promote the construction of the Bohe coal power integration project and ensure the capital demand
for the protective resumption of the Bohe Power Plant project, Guangdong Yudean Bohe Coal Power Co., Ltd., a
wholly-owned subsidiary of the Company, has increased its capital and shares. The Company and Guangdong
Energy Group Co., Ltd. have increased their capital to Bohe Company according to the target equity ratio of 67%:
33%, with a total capital increase of 3.98 billion yuan. The capital increase price is determined on the basis of the
net assets evaluation value of Bohe Company recorded and approved by the competent authority. The above
matters were reviewed and approved by the second communication meeting of the ninth board of directors in
2018 and approved by the fourth extraordinary general meeting of shareholders in 2018.
(8) According to the Implementation Opinions of the General Office of Guangdong Provincial People's
Government on Promoting the Separation and Transfer of "Three Supplies and Property Management " in the
Staff Family Areas of Provincial State-owned Enterprises (YFB [2016] No.102), the power supply, water supply
and property management in the staff family areas of Zhanjiang Electric Power Co., Ltd. controlled by the
Company were separately transferred to Zhanjiang Power Supply Bureau of Guangdong Power Grid Co., Ltd.,
Zhanjiang Water Investment Group Co., Ltd. and Guangdong Yudean Real Estate Investment Co., Ltd., which was
reviewed and approved by the sixth meeting of the ninth Board of Directors of the Company.
(9) According to the actual needs of production, Guangdong Shaoguan Yuejiang Power Generation Co., Ltd., a
controlling subsidiary of the Company, accepted Shaoguan Power Plant's land, some buildings and machinery and
equipment at a price not higher than the evaluated price of 167.736 million yuan. The final accepted price is
subject to the asset evaluation results filed in accordance with relevant regulations and approved by the sixth
meeting of the ninth Board of Directors of the Company.
(10) In order to optimize the asset structure of Maoming Zhenneng Thermal Power Co., Ltd. and ensure the
continuity of operation, the Company's controlling subsidiary Zhenneng Co., Ltd. absorbed and merged Maoming
Power Plant by exchanging its own equity for the entire equity of Maoming Thermal Power Co., Ltd. (hereinafter
referred to as "Maoming Power Plant"), and the shareholder of Maoming Power Plant. The above matters have
been reviewed and approved by the sixth meeting of the ninth Board of Directors of the Company.
Website for temporary disclosure of the connected transaction
Announcement Date of disclosure Website for disclosure
Announcement on Related Transactions with Guangdong Yudean Property
Insurance Captive Co., Ltd . Signing of the Insurance Cooperation Framework January 13,2018 http//www.cninfo.com.cn.
Agreement
Announcement on Related Transaction with Guangdong Yudean Group Co., Ltd.
January 13,2018 http//www.cninfo.com.cn.
Signing of the Energy Entrusting trusteeship Agreement
Estimates announcement of the Daily Related Party Transactions of 2018 March 24,2018 http//www.cninfo.com.cn.
Announcement on the related party Transactions of Guangdong Electric Power
April 28,2018 http//www.cninfo.com.cn.
Development Co., Ltd. with Guangdong Yudean Finance Co., Ltd.
Announcement on Related Party Transactions to Add Capital to Guangdong
April 28,2018 http//www.cninfo.com.cn.
Yudean Property Insurance Captive Co., Ltd.
Announcement on the related Transactions Concerning Conclusion of Financing
Lease Cooperation Framework Agreement with Guangdong Yudean Financing August 31,2018 http//www.cninfo.com.cn.
Leasing Co., Ltd.
Announcement of Resolutions of the Second Meeting of the Ninth Board of
September 20,2018 http//www.cninfo.com.cn.
Directors by Correspondence of 2019
Announcement on Related Transactions of Guangdong Yudean Bohe Coal &
September 20,2018 http//www.cninfo.com.cn.
Electricity Co., Ltd.
48
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Announcement on Related Transactions of Guangdong Shaoguan Yuejiang
October 31,2018 http//www.cninfo.com.cn.
Power Generation Co., Ltd. Acquisition of partial assets of Shaoguan Power Plant
Announcement of related party transactions of Maoming Zhenneng Thermal
October 31,2018 http//www.cninfo.com.cn.
Power Co., Ltd. to merger Maoming Thermal Power Plant Co., Ltd.
XVII.Particulars about significant contracts and their fulfillment
1. Particulars about trusteeship, contract and lease
(1) Trusteeship
√ Applicable □Not applicable
Note
According to the instructions of Yudean Group on undertaking to perform related matters, in order to avoid
horizontal competition and fulfill the commitments of related horizontal competition, the Company and Yudean
Group have signed the Equity Trust Agreement, which entrusts the rights of shareholders of the Company within
the trust scope of Yudean Group to the Company except for the rights of ownership, income and disposition. The
expected trust fee is 2.45 million/year. The complete report is available as Announcement No.2018-04 with China
Securities Journal,Securities Time and at www.cninfo.com.cn dated January 13,2018.
Project that bring profit and losses to the comapny of more than 10% of the company's total profit in the reporting
period.
□Applicable √ Not applicable
Nil
(2) Contract
□ Applicable √ Not applicable
No any contract for the Company in the reporting period.
(3) Lease
√Applicable □ Not applicable
Note
As a lessee, the Company rented houses and billboards from Yudean Real Estate Company, and the rental fee
incurred this year was RMB 8,921,732;
As a lessor, the company leased the houses to Yudean Property Company and Yudean Shipping Company. The
rental income for this year was confirmed to be RMB 231,077;
The parent company of the Company, as a leassor, leases the houses and parking spaces to units and individuals
such as Guangdong Electric Power Communication and Information Company and Guangdong Electric Power
Dispatching Center. The rental income for this year was confirmed to be RMB 3,367,122.
Project which generates profit or loss reaching over 10% of total profits of the Company during the Reporting
Period
□ Applicable √ Not applicable
There were no leases with a 10% or greater impact on the Company’s gross profit in the Reporting Period.
49
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
2.Guarantees
√Applicable □ Not applicable
（1）Guarantees
In RMB10,000
Guarantee of the Company for the controlling subsidiaries (Exclude controlled subsidiaries)
Relevant
Date of Guarantee
disclosure Complete
happening Actual for
date/No. of Amount of mount of Guarantee type
Guarantee implemen
Name of the Company (Date of associated
the Guarantee term tation or
signing guarantee parties (Yes
guaranteed not
agreement) or no)
amount
Yunnan Baoshan
Binlangjiang December Guaranteeing of
May 24,2007 4,350 2,030 15 years No No
Hydroelectricity 19,2007 joint liabilities.
Development Co., Ltd.
Yunnan Baoshan
Binlangjiang December November Guaranteeing of
4,350 319 15 years No No
Hydroelectricity 19,2007 30,2007 joint liabilities.
Development Co., Ltd.
Yunnan Baoshan
Binlangjiang Guaranteeing of
May 27,2009 9,367 June 22,2009 5,307 18 years No No
Hydroelectricity joint liabilities.
Development Co., Ltd.
Yunnan Baoshan
Binlangjiang Guaranteeing of
May 27,2009 7,250 May 27,2009 2,175 14years No No
Hydroelectricity joint liabilities.
Development Co., Ltd.
Total actually amount of
Total amount of approved external
0 external guarantee in the -2,436
guarantee in the report period(A1)
report period(A2)
Total amount of approved external Total actually amount of
guarantee at the end of the report 190,835 external guarantee at the end 9,831
period(A3) of the report period(A4)
Guarantee of the company for its subsidiaries
Related Date of Complete Guarantee
Amount Actually
Name of the company announceme happening(dat Guarantee implemen for related
of guarantee Guarantee type
guaranteed nt date and e of signing term tation or party(yes or
guarantee amount
no. agreement) not no)
Zhanjiang Wind
April October Guaranteeing of
Power Generation Co., 18,571.7 7,479.85 18 years No No
29,2009 9,2010 joint liabilities.
Ltd.
Guangdong Shaoguan
November January Guaranteeing of
Yuejiang Power 9,000 2,430 7 years No No
16,2013 28,2014 joint liabilities.
Generation Co., Ltd.
Guangdong Shaoguan
November January Guaranteeing of
Yuejiang Power 8,100 1,530 7 years No No
16,2013 29,2014 joint liabilities.
Generation Co., Ltd.
Total of guarantee for subsidiaries 0 Total of actual guarantee for -4,598.97
50
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
approved in the period(B1) subsidiaries in the period (B2)
Total of guarantee for subsidiaries Total of actual guarantee for
141,536 11,439.85
approved at period-end(B3) subsidiaries at period-end(B4)
Guarantee of the subsidiaries for the controlling subsidiaries
Relevant
Guarantee
disclosure Date of Complete
for
Name of the Company date/No. of Amount of happening (Date Actual mount Guarantee Guarantee implemen
associated
guaranteed the guarantee osigning of guarantee type term tation or
agreement) parties (Yes
guaranteed not
or no)
amount
The Company’s total guarantee(i.e. total of the first three main items)
Total amount of guarantee
Total guarantee quota approved in actually incurred in the
0 -7,034.97
the reporting period（A1+B1+C1） reporting period
（A2+B2+C2）
Total balance of the actual
Total guarantee quota already
guarantee at the end of the
approved at the end of the 332,371 21,270.85
reporting period
reporting period（A3+B3+C3）
（A4+B4+C4）
The proportion of the total amount of actually guarantee in the net
0.88%
assets of the Company (that is A4+B4+C4）%
Including：
The debts guarantee amount provided for the
Guaranteed parties whose assets-liability ratio exceed 13,791
70% directly or indirectly（E）
Total guarantee Amount of the abovementioned guarantees
13,791
（D+E+F）
Description of the guarantee with complex method
(2) Illegal external guarantee
□ Applicable √ Not applicable
No Illegal external guarantee in the report period.
3.Situation of Entrusting Others for Managing Spot Asset
(1)Situation of Entrusted Finance
□ Applicable √ Not applicable
No any Entrusted Finance for the Company in the reporting period..
（2）Situation of Entrusted Loans
□ Applicable √ Not applicable
No any Entrusted loans for the Company in the reporting period..
51
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
4. Other significant contract
□ Applicable √ Not applicable
No other significant contracts for the Company in reporting period.
XVIII.Social responsibilities
1. Information of performance of social responsibilities
For details, please see the Social Responsibility Report disclosed by the company on the same day.
http://www.cninfo.com.cn
2.Overview of the annual targeted poverty alleviation
(1)Precise poverty plan
The Company will in depth implement the spirits of the Central work Conference on Poverty Alleviation and the
Development and General Secretary Xi Jinping's series of important speeches on poverty alleviation and the
development, and in accordance with the Guangdong Provincial people's Government's "Opinions on the
implementation of Three years Strongly Tackling Difficulties on Precision Poverty Alleviation and Precision
Poverty Reduction in the New Time" and the overall plan and arrangement of Guangdong Province's 2016-2018
of new time of "Precision Poverty Alleviation and Precision Poverty Reduction", by adhering the concept of
innovation, coordination, green, open and shared development, the Company will strengthen the awareness of the
overall situation and the sense of responsibility of “The Rich fist leads latter, and realize the common prosperity”,
fully utilize the advantages, carry out the measures of precision poverty alleviation to the village-under-aid,
effectively enhance the local “vitality-making” function, focus on boosting the village’s collective economic
strength, developing the environment and society and people’s livelihood, thus to increase the income of
poverty-alleviation objects, so as to ensure the accomplishment of various project goals and tasks.
1. Soundly do the work of the poverty alleviation by industry development. Formulate the characteristic industry
development for the village-under-aid, implement the “one village, one product” industry promotion action, tap
into the resources advantages, precisely select the dominant industry and the dominant products, support the
construction of characteristic agricultural bases with high participation of poverty households, support the large
agricultural households and professional cooperatives , small and micro enterprises and so forth agricultural
operation bodies to speed up the development. Explore the “Internet + Precision Poverty Alleviation” model,
strengthen the training of rural E-commerce merchants in poor villages, and encourage farmers to open online
stores for self-development.
2. Explore the poverty alleviation by shares. Promote the income-increase mode of poor village collective
economy, allow the financial special poverty alleviation funds and other agricultural-related funds to invest in
facilities such as agriculture, farming, industrial parks, hydropower, rural tourism and so forth without changing
their use purposes, and the resulting asset income can be converted to shares quantization to poor villages and
poor households. Cooperate with the local to explore and promote the rights confirmation of land management
with accordingly converting to shares, guide poverty-stricken households, especially those who are incapable of
working, to voluntarily transfer the land management rights according to law, and use assets such as land,
agricultural facilities, and poverty alleviation funds to price to convert into shares, gaining the operating income
according to shares.
3. Cooperation in training and employment. Oriented towards enhancing the ability of the poor to get employment,
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assist to carry out the all kinds of policy training, promote the relevant vocational and technical colleges to recruit
children from poor families, thus to enable them to achieve skills to get out of poverty.
4. Improve the infrastructure. Cooperate with the local to improve the traffic conditions and development
environment in the village-under-aid; support and help key villages-under-aid of the safe drinking water projects;
improve farmland water conservancy facilities; improve sewage facilities; improve the garbage collection and
treatment and the cleaning system; improve village cultural and leisure activities, public toilets, landscaping and
greening and other facilities; ensure that the relevant indicators meet the provincial standards.
5. Boost the education culture. In coordination with the local education and cultural departments, the Company
will vigorously promote the poverty alleviation through education so that all children in the villages-under-aid can
receive a good education, increase the education subsidies for poor families, ensure that children from poor
households do not drop out of school due to poverty, pay attention to left-behind children, and build left-behind
children's service centers.
6. Help to improve the environment. Cooperate with the local to raise funds by multi-channels to help
impoverished households complete the renovation of dilapidated buildings and fully complete the task of assisting
low-income people in housing reconstruction, assisting in the improvement of domestic garbage disposal, sewage
treatment, public toilets and greening and beautification of villages. We will use the entire village as a platform to
accelerate the improvement of production and living conditions of poor villages, and steadily promote the
construction of beautiful livable villages to realize the new appearance of the old villages.
7. Consolidate the grassroots foundation. Cooperate with the local people to adhere to the Party building and
poverty alleviation both at the same time, with the party building to help the poor and with the poverty alleviation
to promote the party building. Organize and hold regular meetings of the "two committees" meetings of the
villages to study the work of aiding the poor; the assigned cadres should assist the "two committees of the village"
to do a good job in organizing the masses, serving the masses, uniting the masses, and enhancing the ability of the
cadres of the "two committees" of the poor villages to lead the people out of poverty and run to health; It’s
necessary to constantly strengthen the development consciousness, market awareness, teaching ideas, teaching
methods and teaching experience of cadres at the grass-root level, mobilizing the grass-root level cadres,
strengthen the grass-root organizations, muster up the drive to fight against poverty, and build up “The
never-leaving Task Force on Poverty Alleviation”, thus to lay the foundation for the sustainable and healthy
development of poor villages.
8. Lead multiple parties to participate in. Guide industries, enterprises, social organizations and individuals to
participate in poverty alleviation, and encourage companies to actively undertake social responsibilities, fully
stimulate the market's vitality, and help villages to invest in industries, develop training skills, absorb employment,
and help the poor with donated money through various forms such as resource development and joint construction
of villages and enterprises.
9. Strengthen the publicity for poverty alleviation. Adhere to the guidance of public opinion, comprehensively
publicize and accurately interpret the decision-making and deployment of “Precision poverty alleviation and
Precision poverty reduction”, strengthen the ideological education and guidance, and strengthen the cadres and the
masses' centripetal force and cohesion in poverty alleviation work and the development work. Guide the villagers
to change the obsolete customs and habits, stimulate the impoverished people to work hard and develop good
enthusiasm, and create a positive atmosphere for self-reliance, hard-working and getting rid of poverty and
becoming better off.
(2)Precise poverty alleviation
During the reporting period, the company conscientiously implemented the Guangdong Province's “Precision
Poverty Alleviation and Precision Poverty Reduction in Three Years of Strongly Tackling Difficulties” program
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Guangdong Electric Power Development Co., Ltd. 2018Annual Report
and actively organized manpower, material, and financial resources for poverty alleviation. The subordinate
companies namely the Yuejiang Company, Red Bay Company, Zhenneng Company, Zhanjiang Company, Dapu
Company, Zhanjiang Wind Power Company actively carried out the precision poverty alleviation work.
.I Counterpart assistance of Yuejiang Company on Mi Xiashui village, Quan’an Town, Nan Xiong City
Mixiashui Village plans to relieve 13 households and 42 people from poverty in 2018, including 4 households and
5 people under social security subsidy, 6 households and 26 people off poverty by farming and industry, 3
households and 11 people off povery by employment. In three years, 39 households and 98 people in relative
poverty will all be relieved from poverty.
(I) Implementation of industrial support
Implement 2018 Support Measures to Guide Poor Households with Labor Ability to Develop Production Projects
in Mixiashui Village, Quan'an Town, Nanxiong City, fullly utilize industrial development platform of Mixiashui
Village's Zhongzhi specialized cooperatives for peasant cropping-breeding , mobilize growers (poor and non-poor
peasants) to develop high-quality rice leading industries, support Shiwa ecological characteristic aquaculture
industry, and participate in the "One Village, One Product" passion fruit planting.
1. Implement support for high quality rice leading industry. Implement the Support Plan for Mixiashui Village,
Quan'an Town, Nanxiong City, to Participate in Leading Industry of High-quality Rice Planting, guide growers
(poor and non-poor peasants) to join cooperatives, promote the model of " Company+Cooperatives+Growers",
and implement order agriculture and planting incentives. Fulfill the high-quality rice purchase agreement signed
between Zhongzhi Cooperative and Nanxiong Xiangyi Industry and Trade Co., Ltd. Through the cooperative's
unified external sales, the high-quality rice sales market is opened up, the market bargaining power is improved,
and the income is increased. A total of 30,000 yuan has been invested to reward cooperative member growers for
developing high-quality rice in the sales process, which has driven 16 poor and non-poor growers to develop
about 300 mu land for high-quality rice cultivation.
2. Implement support for quasipaa spinosa aquaculture with ecological characteristics . Implement the Support
Plan for the Industry Development of Quasipaa Spinosa Aquaculture with Ecological Characteristics in Mixiashui
Village, Quan'an Town, Nanxiong City, and adopt the measure of guiding poor households to engage in labor and
work, and helping on the building materials by the help units. It invests about 30,000 yuan to support poor
households Zhong Liangmin to build a quasipaa spinosa breeding farm, and it also uses Zhongzhi Cooperative as
a platform and invests about 13,000 yuan to purchase 130 breeding frogs. The cooperative is entitled to the
ownership and 16 poor households with labor ability are entitled to the right of return in proportion. With the
centralized foster care and custody mode, the frogs are centrally managed by the poor households Zhong
Liangmin, and bred by the 16 poor households with labor ability, who are entitled to the dividend income every
year.
3. Implement the policy supporting measure of "Award instead of compensation". Implement the supporting
measures in conjunction with "Award instead of compensation" based on the 2018 Support Measures to Guide
Poor Households with Labor Ability to Develop Production Projects in Mixiashui Village, Quan'an Town,
Nanxiong City. Rice planting is subsidized by 2 packs of formula fertilizer per mu, peanut planting is subsidized
by 1 pack of formula fertilizer per mu, live pigs are subsidized by 3 packs of feed per each, and poultry such as
chickens, ducks and geese are subsidized by 1 2.5 kg of feed per each. The project has invested 138,916 yuan. It
supports poor households to develop the breeding of 180 live pigs and 1584 poultries, and the planting of 98.5 mu
rice and 20 mu peanut. Poor households have achieved remarkable results in increasing agricultural income.
4. Actively participate in the industry support project of passion fruit planting base of Nanxiong Quan'an
Economic and Trade Development Corporation to drive poor households to plant passion fruit. Nanxiong Quan'an
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Economic and Trade Development Corporation has built a demonstration base of passion fruit cultivation in
Mixiashui Village on more than 260 mu of land within Mixiashui Village. According to the number of poor
households in Mixiashui Village, contiguous land (according to the standard of 1 mu/household) shall be centrally
designated within the scope of the demonstration base as an area for poor households with labor ability to plant
passion fruit. Currently, 10 poor households have voluntarily claimed the planting area (mu) for poor households.
The support cost is 84,227 yuan, and the head office is responsible for underwriting passion fruit, which can
increase 8,000 yuan/household for poor households in the first year.
(II) Implement employment and "three guarantees"
1. Continue to carry out labor transfer employment and entrepreneurship training, and constantly enhance the
employment skills of poor households. It helps 9 poor households to work in Pearl River Delta and Nanxiong
urban areas to increase their income, and 2 poor households to find jobs in village public welfare posts.
2. Fully implement the "three guarantees" policy. Firstly, carry out the renovation of dilapidated buildings. In 2018,
17 dilapidated buildings are renovated, of which 10 are demolished and rebuilt and 7 are repaired. Secondly,
implement the education guarantee. There are 24 students from 18 households in 2018, who established cards for
archives, with an enrollment rate of 100%. Thirdly, achieve full coverage for medical insurance. It fully
implements the medical insurance policy and subsidize 98 people from 39 poor households to purchase urban and
rural medical insurance.
3. Well ensure people's livelihood. Implement activities of sending warmth and condolences to poor households.
On February 10, 2018, the two poverty alleviation units jointly visited poor households and the village committee
in Mixiashui Village, with a total investment of 41,500 yuan. The leaders of the municipal government office and
Shaoguan power plant attach great importance to the targeted poverty alleviation work, full implementation of the
working mechanism of pairing for support, and coordinate and solve difficult problems on site for multiple times.
In 2018, leaders of Shaoguan Power Plant led 12 people to the villages to guide the support work in the villages,
helping to solve the difficulties encountered in the help work and effectively promoting the development of the
help work.
(3) Information on infrastructure projects
1. Accelerate the construction of farmland and water conservancy projects. Farmland and water conservancy
project: Accelerate the construction of high-standard farmland and complete the construction of 1622 mu of
high-standard farmland in an all-round way. Drinking water safety project: the design work has been completed
and it will be included in the construction plan and construction funds will be arranged.
2. Accelerate the construction of the village road hardening project and complete the 10-kilometer village road
hardening project in an all-round way.
3. Accelerate the construction of public service projects. The construction of Health Station and Home Care Public
Service Center of Mixiashui Village is completed.
(IV) Promote the construction of a new socialist countryside
1. Establish the villagers' self-government council of villagers' group (natural village), to exercise the autonomous
functions for public affairs inside the village and outside the households; Improve the public service capabilities
of administrative village, expand public services other than government services, and provide public services such
as e-commerce platforms for villagers.
2. Accelerate the construction of clean villages, and build the 9 villages, namely, Shangmen, Longjiangkeng,
Chengsi, Liaowu, Yaowu, Liuwu, Shigang, Shijiaowan and Rongshuxia, into clean villages. The construction of
new villages in Shijiaowan and Rongshuxia villages has progressed steadily, and the villages look brand-new.
II. Counterpart assistance of Red Bay Company on Outian Village, Luoxi Town, Luhe County
On June 1, 2018, the OCT Luoxigu Rural Tourism Project took a trial run. Under the correct leadership of the
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county party committee and county government, Outian village finally embarks on the road of grass-roots party
building+enterprise+poverty alleviation+environment. Here is with blooming flowers, green grass, even greener
water and mountains. People here can make money in front of their homes. These cannot be achieved without the
guidance of Party building.
(I) Party branch conducts carefull organization and thorough deployment to strengthen grass-roots party building
and grass-roots management
Firstly, strictly implement the "three meetings and one lesson" system to ensure the normal life of the Party
organization. Through the formulation of the "three meetings and one lesson" plan and the activity plan for the
theme party day, the Party organization's activities are implemented, making rural Party members clear of their
identities and their obligations and enhance the cohesion of the Party organization. Meanwhile, ordinary Party
members can also raise their awareness ideologically and keep up with the new situation in the new era. While the
Party branch also enables the Party members and the masses to understand the direction, deployment, problems
and difficulties of the work in the village through the three meetings and one lesson, which is conducive to
brainstorming and joint solution.
Secondly, strictly implement the publicity of party affairs and village affairs. Important matters such as the
development of party members, poverty relief, poverty alleviation, and new rural construction are made public,
which is conducive to the publicity of government affairs, the promotion of work and the supervision from the
masses.
Thirdly, strictly enforce the party member recruitment procedures. Party members should be recruited in strict
accordance with the prescribed procedures, detailed understanding of applicants should be strengthened, and
serious guidance should be given in standardizing procedures to ensure high-quality recruitment of Party
members.
Fourthly, strengthen the construction of Party member activity sites and create a good platform for Party member
activities. On the first floor of the village committee office building, a Party member activity room is built
according to local conditions, which standardizes the Party building work ledger, creates a strong Party building
atmosphere, and facilitates the participation of elderly and sick party members. OCT Luoxigu and OCT jointly set
up a workshop for new era peasants to further extend the learning and education of Party members to the peasants.
Meanwhile, the learning and education of Party members are further enriched by combining rural tourism,
targeted poverty alleviation, agricultural technology and other topics.
Fifthly, implement the activities of "declaring identity, making commitments and implementing them" and
actively guide the performance of the pioneer and exemplary role of Party members. Since last year, members of
our village branch have been wearing party badges and the image of "Party member households" has been deeply
rooted. The commitment column chart is made, 10 responsibility posts and areas for Party members are set up,
and Party members' identity awareness, self-determination awareness and pioneering awareness in new rural
construction, targeted poverty alleviation, learning and education, disaster relief and resumption of production.
(II) Strengthen the construction of grassroots party organizations, and actively carry out targeted poverty
alleviation work
Since the poverty alleviation team was stationed in the village in May 2016, the Party branch of Outian Village
has held multiple meetings for clarifying the responsibility targets and for full deployment, and it has actively
carried out the identification of poor households, with 60 poor households and 260 poor people being identified.
Starting from the actual work, the "one file for each household" system has been set up, and the poverty
alleviation program of one family and one policy has been formulated. In combination with the study and
education for "two studies and one action", Party members are promoted to strengthen their exemplary
consciousness. Pairing help for party members is developed for the leading role the Party members in enrichment,
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and to help the Party members become a powerful driving force for household support and targeted poverty
alleviation. A plan to relieve poor Party members from poverty s developed, the Party members are vigorously
supported in setting up projects to lead enrichment, the support for Party members to lead enrichment and lead
the masses to get rich together in terms of projects, funds, technology and information is increased, and the Party
members are encouraged and supported to develop characteristic industries, so as to effectively form a strong
demonstration radiation effect.
(III) Strengthen the sense of responsibility and mission of ensuring the Party's construction and promoting poverty
alleviation, with solid work and advancd plan, and actively push forward the construction of rural projects
The Party branch and the poverty alleviation team help Outian Village to set up Outian Business Development Co.,
Ltd., organize poor households to develop characteristic industries, plant a large number of sweet potatoes and
peanuts and vigorously develop the bee breeding, and sign sales contracts with poor households to ensure that the
due income of poor households. The investment in Xinhe Industrial Park Targeted Poverty Alleviation Industrial
Park Project is made. The training programs for poor people's labor skills and transfer employment have been
strenthened, according to the needs of poor people, the trainings on agricultural applicable technology, transfer
employment and related content are organized respectively for poor households, which has achieved good results.
The construction of village infrastructure has been actively carried out, to build cultural little square and
supporting facilities for Shishitang and Outianwei natural villages, build and install lighting equipment for hard
roads in front of Outian Primary School, and build landscaping and greening facilities for villages. Outian Village
Cultural Activity Center is also under construction and will be put into use in December.
(IV) Strengthen the task of grassroots Party building in the village, determine the development of rural tourism
projects, and drive poor households for enrichment through labor.
Outian Party branch has explored many ways for poverty alleviation. It planned to breed chickens, ducks, sheep,
and cattle in large quantities, but didn't implement it for its risks and damages to the environment. The branch
made a decisive decision to explore a green tourism project. Enterprise+poverty alleviation+environment is the
most feasible poverty alleviation mode. Under the proposal and leadership of the branch, a rural tourism project
leading group is established, headed by the team leader, to comprehensively coordinate the project introduction,
site selection, coordination and active contact with relevant departments of OCT and county. Luo Hongxi, the
branch secretary, led the branch committee to well ensure the propaganda and the ideological work of the masses.
He urged the village party members to lead by example and solve the problem of land use for tourism projects.
Through the joint efforts of party members and cadres, in June 2017, Shenzhen OCT Eastern Group officially
settled in Outian Village and launched the OCT Luoxigu rural tourism project. Through the development of the
rural tourism industry, the local people's employment is solved, so that the people can earn money locally and the
poor households could be driven out of poverty and become rich.
(V) The "Enterprise+Poverty Alleviation+Environment" rural tourism project in OCT Luoxigu is a full
manifestation of the core role of grass-roots party organizations
There are about 500 villagers in OUtian Kengzili Village, with less than half an acre of arable land per capita. The
poor account for 15% of the total population in the village. In these years, it was with weeds everywhere,
shrinking traditional agriculture, while other industries lacking, young and middle-aged labor force flowing out,
and remaining villagers struggling on the poverty line. The peasants and women here had made almost no money
for more than 40 years, and they could hardly feed themselves by the traditional farming economy. The
introduction of excellent supporting enterprises from the Overseas Chinese Town in the eastern part of Shenzhen
has helped peasants convert their land into shares according to size and grade. The village is turned into a scenic
spot, which drives peasants to increase their income and become rich, and realize the transformation of resources
into assets, capital into shares and peasants into shareholders. The villagers are both shareholders and employees,
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and their enthusiasm is aroused. In less than a year, the deserted residential buildings were transformed into
hakka-featured residential houses and farming villages into agricultural cultural centers. The village's power
supply was increased, and signals for internet, television and communication were connected. The number of
beekeepers has increased from two to five, and the income has increased several times. Currently, Outian
Bookstore, Nongli Shop, Qingmei Bar, Leicha Guild Hall and Handicraft Workshop extend from the village
entrance to the valley, introducing tourists gradually into this fresh and modern Peach Garden, which is full of
flowers, green water and green hills, singing birds and flora fragrance, and heaven-like changes. The village has
changed into a beautiful place. Young laborers who once left the country have returned to their hometown one
after another in search of employment and wealth opportunities at home. After the OCT Luoxigu Project in is
put into operation, it can drive more residential house or farmhouse development, absorb more people for local
employment, and help more people get rid of poverty and become rich.
III. Counterpart assistance of Zhenneng Company on Xinpo Village, Shalang Town, Dianbai District,
Maoming City
According to the Maoming municipal party committee's arrangement on targeted poverty alleviation in the new
period, the Maoming municipal people's congress standing committee office, Maoming Zheneng Thermal Power
Co., Ltd. and Guangdong Development Bank Maoming Branch are linked to assist Xinbei Village, Shalang Town,
Dianbai District, with a poverty alleviation team dispatched to the village. Thanks to the joint efforts of the three
supporting units, the resident team and the village cadres have worked together to mobilize the broad masses and
carry out solid work. New progress and new achievements have been made in all aspects of Xinbei Village's work.
(I) The leaders attach great importance to, carefully guide, and work together to tackle targeted poverty alleviation
In the past three years, leaders at all levels have attached great importance to it. Li Hongjun, secretary of the
municipal party committee and director of the Municipal People's Congress Standing Committee, and Chen
Xiaofeng, secretary of the municipal party committee and Dianbai District Party Committee, led teams to the
village to investigate and inspect the targeted poverty alleviation work. The Standing Committee of the Municipal
People's Congress has held several meetings of directors to study the targeted poverty alleviation work. The three
supporting units have held joint meetings from time to time to study and solve major problems in poverty
alleviation work and decide on major issues. Liang Luoyue, executive deputy director of the Standing Committee
of the Municipal People's Congress, has attached great importance to the poverty alleviation work in Xinbei,
visited Xinbei Village many times for investigation and guidance, to put forward opinions, study and solve
problems in time and promote the work; Lin Zhenguang, deputy director in charge, has led the team many times to
the village for investigation and guidance, coordinating relevant units to give financial and policy support, and
providing front-line supervision to promote targeted poverty alleviation work; Other leaders and cadres of the
Municipal People's Congress Standing Committee often pay their condolences to the families who have been
linked for the supporting; Main leaders and those responsible for the support work of Maoming Zhenneng
Thermal Power Co., Ltd. and Guangdong Development Bank Maoming Branch also have visited the village for
many times for investigation and offering condolences; The town's main leaders, Luo Liang, Xie Jingji and Ou
Shiji, have visited the village many times for investigation and guidance, studied and solved the specific problems
and practical difficulties encountered in the targeted poverty alleviation work. Meanwhile, in order to make the
targeted poverty alleviation policy widely known in the new era, the villagers in Xinbei Village are expected to be
familiar with the targed poverty alleviation policy and actively participate in and support the poverty alleviation
work by banners, publicity leaflets, party members' meetings and villagers' representative meetings, so as to
widely publicize the targeted poverty alleviation policy and interprete the targeted poverty alleviation policy.
(II) Entry into the village and household for careful investigation, to ensure accurate establishment of cards for
archives
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Targeted poverty alleviation is an important political task. The first step is to accurately identify poor households,
which is also the most foundamental work. The poverty alleviation team in the village has firmly grasped this key
and carried out the accurate identification work. Firstly, study hard and get familiar with the working methods of
investigation as soon as possible. After entering and connecting with the village at the end of April 2016, it has
earnestly studied the relevant documents of the central, provincial and municipal committees on targeted poverty
alleviation and poverty relief in the new era, deeply understood the spirit of the documents, defined the work
objectives, clarified the work ideas, quickly became familiar with the poverty alleviation work process, the criteria
for poor households and the work methods for accurately identifying poor households. Secondly, enter the village
as soon as possible and carry out investigations in an orderly manner. In the middle of May, it entered the village
and visited households together with the cadres of the village's two committees, carried out
household-by-household investigations. In strict accordance with the criteria for poor households and the
identification method of "four-check, five-priority, six-in, seven-out", they focused on checking the household
population, labor force, source of income, housing, furniture and household appliances, vehicles, causes of
poverty, etc. to ensure no person or household left, and to resolutely keep those who did not meet the criteria off
the targeted poverty alleviation list. Thirdly, conduct review as soon as possible, ensure its publicity while making
adjustment. In early June, in order to ensure the authenticity and reliability of the poor household on-door
inspection, a villagers' representative evaluation meeting on targeted poverty alleviation was held in Xinbei
Village for the new era, and the situation for each household was introduced and the evaluation was conducted.
After the evaluation, the result was be publicized and the newly applied villagers were investigated and verified
again. By the end of August, a total of 162 people from 49 poor households in Xinbei Village had been identified
and no complaints had been received from the masses, which lays a solid foundation for accurate assistance. By
the end of December of that year, after review, assistance to 3 households with 8 people are terminated and 1 died ,
and 153 people from 46 poor households are finally determined. Fourthly, to pay close attention to the planning
and ensure the accuracy of the policy implementation. According to the situation of each poor household and the
wishes of the poor households, a three-year support plan and an annual support plan are tailor-made for them, so
as to ensure that the measures formulated are scientific and reasonable and that after the support, each poor
household can achieve "two relieves from worries and three guarantees". Fifthly, establish files in a timely manner
and manage the poor households dynamically. In strict accordance with the requirements of establishment of cards
for archives, the published information of poor households shall be accurately entered into the "New Period
Targeted Poverty Alleviation Information Platform", the system data shall be updated regularly, and the
information of changes of poor households shall be entered in a timely manner. Meanwhile, close attention shall
be paid to the "one file for each family" of poor households and various paper documents, and dynamic
management of poor households shall be implemented.
(III) Steady and accurate execution for full implementation of targeted poverty alleviation measures
1. Support of income-increasing projects is in place. Adhere to the principle of "different method for each
household", solicit opinions from poor households extensively, and implement income-increasing projects
combining "short-term, medium-term and long-term", that is, short-term project is family vegetable basket project,
medium-term project is leek industrial park project, and long-term project is photovoltaic power generation
project.
Firstly, implement the family vegetable basket project. It is mainly to mobilize and assist poor households to carry
out decentralized planting and breeding. The supporting units set up a subsidy fund to provide seedlings and
means of production, and to assist them in selling agricultural products. In 2017, the support units supported more
than 60,000 yuan, helped 6 households to build standard chicken houses, distributed 1,760 Xinyi Huaixiang baby
chicks and feed to 16 poor households, and in 2018, the supporting units supported 30,000 yuan, provided 1,000
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baby chicks to 12 poor households, meanwhile, conducted technical training, signed a guaranteed recovery
agreement, and assisted poor households in selling the product chickens, thus increasing the income of poor
households by more than 80,000 yuan; In addition, poor households have raised cattle, pigs, vegetables and rice
according to their own conditions, thus increasing their income through active production development.
Secondly, construct leek industrial park. The model of "company+cooperative+poor households" is adopted. The
local agricultural planting company and the open source planting professional cooperative (composed of poor
households with labor force, referred to as "open source cooperative") in Dianbai District of Maoming City will
jointly invest a total of 500,000 yuan from the special financial funds for poor households and the support funds of
supporting units to build a 60-mu leek planting base. The company will be responsible for the subsequent
investment, with a cooperation period of 7 years (2017-2023), and an annual fixed dividend of 132,000 yuan in
the first 5 years and 42,000 yuan in the following 2 years. The dividend in 2017 is 600 yuan/person. At the end of
2018, transformation and upgrading are carried out, and guava is initially replanted to further alleviate poverty and
increase income.
Thirdly, build photovoltaic power stations for poverty alleviation. The model of "company+cooperative+poor
households" is adopted. The photovoltaic company and open source cooperative cooperate to invest the financial
co-ordination funds of poor households into shares. A 200KW photovoltaic power station for poverty alleviation
will be built on the roof of Xinbei Village committee office, the roof of Xinbei Primary School teaching building
and the back mountain. Both parties invest 1 million yuan each and the cooperation period is 20 years. The project
started construction in late October 2017 and has been fully connected to the grid for normal power generation by
July 20, 2018. A fixed dividend pattern is adopted, with 160,000 yuan per year from 2017 to 2022, and 100,000
yuan per year from 2023 to 2037. 600 yuan was distributed to poor households with labor force in 2018, and 1000
yuan is expected to be distributed to poor households with labor force in 2019 to 2020. From 2021 onwards, the
village committee will handle it according to the targeted poverty alleviation policy at that time.
Moreover, in 2018, 509.63 million yuan of overall financial fund for poor households was invested in the
construction of distributed photovoltaic power generation project by Dianbai Water Investment Group. The
cooperation period is 20 years and the annual fixed dividend model is adopted. Regardless of the profit and loss of
the project, 7% of the total investment (35674.1 yuan) was distributed to the village committee, and in the first
five years (2019-2023) it will be distributed to poor households with labor force (122 people from 29 households).
Since 2024 (the next 15 years), when the number of poor people is obviously decreased, it will be subject to the
poverty alleviation policy. The village committee will propose a plan to change the dividend, which will be
submitted to the villager representative meeting for approval and implemented after being submitted to the
people's government of Shalang Town for approval.
2. Transfer employment is in place. Actively mobilize poor family members with working ability to work to
increase family income. Currently, 50 people have gone out to work or work nearby.
3. Renovation of dilapidated houses is in place. In Xinbei Village, 21 poor households have applied for renovation
of dilapidated houses. The stationed team took the initiative to communicate and negotiate with relevant
departments, applied for the renovation index, convened mobilization meeting for poor households, and carried
out renovation of dilapidated houses in strict accordance with the requirements. A total of 20 households were
renovated in 2016-2018. Poor household Lan Zhaotao is included into 2019 construction list.
4. Education subsidies are in place. In 2016, 39 students from poor families were helped to apply for educational
subsidies for the 2016-2017 academic year, which were implemented in place; In 2017, 40 students from poor
families were helped to apply for educational subsidies for the academic year 2017-2018, which were
implemented in place; In November 2018, 44 students from poor families were helped to apply for education
subsidy for the 2018-2019 academic year as required. The examination and submission have been completed and
60
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
it is expected that the subsidy will be allocated in the near future.
5. Guarantee policies are in place. Assist the social security department to purchase medical insurance for all poor
households, to improve the treatment of lowest living security and five guarantees, and to truly realize the full
coverage of insurance; Assist poor households suffering from serious illness to apply for medical assistance to
reduce their economic burden; Offer condolences and holiday greetings to poor families before the Spring Festival,
July 1 and Mid-Autumn Festival.
(IV) Led by Party building, with foundation strengthened, strive to play the role of a fighting fortress.
The head of the village-based task force also serves as the first secretary, who can actively well ensure the party
building, fully utilize the role of grass-roots party organizations and promote the steady development of various
tasks.
1. Focus on the study and improve quality. Lead all Party members in the Party branch to earnestly study the spirit
of the Party's 19th Congress, promote the normalization and institutionalization of "two studies and one action"
learning education, lead in teaching Party classes, implement the "three meetings and one lesson" system,
strengthen ideals and beliefs, maintain the advancement of the team, and improve the quality of all Party
members.
2. Focus on the team and enhance service. Assist the town party committee in completing the general election of
"two committees" in Xinbei Village, and adjust the election of 2 new cadres and add 2 new village cadres as
candidates; Organize the village "two committees" team to carefully study laws and regulations, mass work
methods and business knowledge, and enhance the team's service ability and level.
3. Focus work style and build prestige. Always pay close attention to the construction of team work style, strictly
implement the eight central regulations, lead in opposing "four ill styles", implement the financial disclosure of
party and village affairs, and eliminate corruption in work, especially in the targeted poverty alleviation work, so
that the cadres of the "two committees" in the village will have higher prestige among the masses.
IV. Counterpart assistance of Zhanjiang Company on Waiyuan Village, Nanxing Town, Leizhou City
In 2018, under the unified arrangement and leadership of Zhanjiang and Leizhou Poverty Alleviation Offices, the
Company earnestly implemented the relevant regulations of provinces, cities, counties and towns. Under the high
attention and careful guidance of leaders at all levels, the poverty alleviation staff worked hard and actively
organized human, material and financial resources to invest in the poverty alleviation work: Invested 48,000 yuan
to complete the Spring Festival condolences to poor households in 2018; Invested 38,000 yuan to support two
poor households (Wang Keze and Wang Guangqiu) to rebuild their dilapidated houses; Helped poor households to
buy chemical fertilizers (with 120,000 yuan national financial funds) for agricultural production, to improve crop
yields and increase economic income; In view of the fact that there was no basketball court for the students of
Huangpai Primary School of Waiyuan village committee, it invested 50,000 yuan to build the basketball court for
Huangpai Primary School; Assisted Zhanjiang Meteorological Bureau in purchasing desks for Huangpai
Primary School student; Participate in the "three clean-up, three demolition, three remediation" activities
organized by Nanxing Town; Completed the reporting of newly added poor households and terminated poor
households; Organized poor households with work ability to invest in Guangdong Yujie Agro-ecological
Development Co., Ltd (with 360,000 yuan national financial fund); And completed investment in photovoltaic
power generation projects for poor households (with 1.41 million yuan national financial funds).
V. Counterpart assistance of Dapu Company on Xiamu Village, Fenglang Town, Dapu County, Meizhou
City
In 2018, Taipu Power Generation Company continued to send its first secretary assist Xiamu Village, Fenglang
Town, dapu county City, Meizhou City, and carried out the following support work together with Jianghai
61
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Sub-district Office of Haizhu District of Guangzhou City:
1. Solid Party building at the grass-roots level: It invested 44,500 yuan in the construction of the activity room for
new members of the village committee, purchased a number of office desks and chairs, and ensured to display the
publicity column for Party building and system on the wall;
2. It carried out commemorative activities to celebrate the 97th anniversary of the founding of the Party, offered
condolences to 15 60-year-old Party members, and organized Party members to visit and study in Sanheba
Campaign Memorial Hall, a red education base, and Beitang Village, Xihe Town, a demonstration site for new
rural construction;
3. Well ensure the cultural support: The cultural activity room of the Dankeng group was completed in 2018 with
a contract of 250,000 yuan (the project is under financial review);
4. 21,600 yuan is invested for the Spring Festival condolences of 72 poor households;
5. 485,500 yuan is invested in the construction of Xiamu Village Party and Mass Activities Center. The project
covers an area of about 1,000 square meters, including Party and Mass Activities Square and Cultural Corridor. It
was completed and put into use in December 2018 and is currently being submitted to the Financial Review;
6. As of December 31, 2018, through dynamic management, 137 poor people from 67 households out of the total
144 people from 70 households in the village have achieved pre-poverty alleviation.
VI. Counterpart assistance of Zhanjiang Wind Power Co., Ltd. on Houhai Village, Xinliao Town, Xuwen
County
Under the strong leadership of the superior party committee, the strong cooperation of the village "two
committees" cadres and the efforts of the stationed team, Zhanjiang Wind Power Company continued to carry out
targeted poverty alleviation work in Houhai Village, Xinliao Town, Xuwen County, Zhanjiang City in 2018. It
worked closely with the Second Affiliated Hospital of Guangdong Medical University, the SPIC Xuwen Wind
Power Company and other supporting units, and actively implemented supporting projects such as asset support,
industrial support, employment support, holiday greetings, etc. Through innovative measures such as household
filing, dynamic control and one policy for each household, the accuracy and comprehensiveness of poverty
alleviation work are effectively improved. As of December 2018, 337 people from 90 poor households in Houhai
Village had been relieved from poverty, accounting for 91.58% of the original poverty in Houhai Village.
(3)Targeted Poverty Alleviation Result
Index Measurement unit Quantity / Status
I. General situation —— ——
Thereinto： 1.Capital In RMB 10,000 497.09
2. Cash supplies In RMB 10,000 8.89
3. Ecological protection to poverty alleviation person 739
II.Breakdown Input —— ——
1. Poverty alleviation by industrial development —— ——
Among them: 1.1 Project type of poverty Agricultural and forestry industry poverty alleviation a;
——
alleviation by industrial development assets income poverty alleviation
1.2 Number of poverty alleviation projects in
a 12
industrial development
1.3 Investment amount of industrial
In RMB 10,000 266.63
development poverty alleviation project
1.4 The number of poverty population who had
person 269
been helped to create a file
2. Poverty alleviation by transfer employment —— ——
62
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Among them: 2.1 Investment amount of
In RMB 10,000 0.27
vocational skill training
2.2 Number of people of vocational skill training person 54
2.3 Quantity of employment of poverty
person 46
population who had been helped create a file
3. Poverty alleviation by relocation —— ——
4. Educational poverty alleviation person 0
Among them: 4.1 Investment amount of
—— ——
subsidizing poverty students
4.2 Number of subsidized poverty students In RMB 10,000 28.56
4.3 Improving the investment amount for
person 80
education in poor areas
5. Health poverty alleviation In RMB 10,000 0.3
Among them: 5.1 Investment amount for
—— ——
medical and health resources in poor areas
6. Ecological protection poverty alleviation In RMB 10,000 2.16
7. Guarantee of all the details —— ——
8. Social poverty alleviation —— ——
8.2 Investment amount of fixed-point poverty
—— ——
alleviation
9. Other projects —— ——
Among them: 9.1 Number of project a 9
9.2 Investment amount In RMB 10,000 95.61
9.3 Number of poverty population who had been
person 63
helped to create a file
III. Awards (Content and level) —— ——
（4）Subsequent targeted poverty alleviation program
The Company will continue to implement the relevant provincial, municipal and county regulations on targeted
poverty alleviation, adjust measures to local conditions, and explore an accurate path for targeted poverty
alleviation. Firstly, it will continue to strengthen the Party's style of work, promote the "two committees" in the
villages to strengthen ideological construction, and consolidate the results of the "two studies and one action"
learning activities. Secondly, it will improve its ability by learning, continue to learn the spirit of Comrade Xi
Jinping's series of important speeches, the spirit of targeted poverty alleviation documents, the relevant business
knowledge of poverty alleviation, the ways and means of dealing with the masses, and further improve its ability
to solve problems for the masses. Thirdly, prioritize the tasks and promote their implementation. All poverty
alleviation working groups will continue to focus on the core of targeted poverty alleviation, seize the core work
of poverty alleviation and carry out and implement relevant work in an all-round and coordinated manner. For
poverty alleviation projects and village collective projects that are included in the establishment of cards for
archives, the support of relevant departments is actively sought in accordance with the established objectives and
tasks, to assist the villages and poor households in implementing poverty alleviation projects, and ensure the full
completion of poverty alleviation objectives and tasks in a pragmatic manner.
63
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
3. Information on environmental protection
Listed company and its subsidiary belongs to the key pollution enterprise listed by Department of Environmental
Protection
Yes
Main
Emission Verified
Company or pollutant Emissi Emission Total Excessive
port Implemented pollutant total
subsidiary and specific Emission way on port concentration emission emission
distribution emission standards emission
name pollutant number (mg/Nm3) (t) condition
condition (t)
name
Emission Standard of
Concentrated
Air Pollutants for
Shajiao A emission Within the Not
Smoke 2 1.73 Thermal Power Plants 22.868 No
power plant through factory approved
(GB13223-2011)
chimney
special emission limit
Emission Standard of
Concentrated
Air Pollutants for
Shajiao A emission Within the Not
SO2 2 15.86 Thermal Power Plants 230.51 No
power plant through factory approved
(GB13223-2011)
chimney
special emission limit
Emission Standard of
Concentrated
Air Pollutants for
Shajiao A emission Within the Not
NOX 2 27.18 Thermal Power Plants 381.68 No
power plant through factory approved
(GB13223-2011)
chimney
special emission limit
Emission Standard of
Guangdong Concentrated
Air Pollutants for
Dapu Power emission Within the
Smoke 2 2.24 Thermal Power Plants 28.891 593 No
Generation through factory
(GB13223-2011)
Co., Ltd. chimney
special emission limit
Emission Standard of
Guangdong Concentrated
Air Pollutants for
Dapu Power emission Within the
SO2 2 10.46 Thermal Power Plants 134.827 1447 No
Generation through factory
(GB13223-2011)
Co., Ltd. chimney
special emission limit
Emission Standard of
Guangdong Concentrated
Air Pollutants for
Dapu Power emission Within the
NOX 2 27.41 Thermal Power Plants 353.262 1502 No
Generation through factory
(GB13223-2011)
Co., Ltd. chimney
special emission limit
Emission Standard of
Zhanjiang Concentrated
Air Pollutants for
Zhongyue emission Within the
Smoke 2 1.86 Thermal Power Plants 35.27 480 No
Enerty Co., through factory
(GB13223-2011)
Ltd. chimney
special emission limit
Emission Standard of
Zhanjiang Concentrated
Air Pollutants for
Zhongyue emission Within the
SO2 2 14.31 Thermal Power Plants 271.66 1200 No
Enerty Co., through factory
(GB13223-2011)
Ltd. chimney
special emission limit
Zhanjiang Concentrated Within the Emission Standard of
NOX 2 27.71 525.92 1587 No
Zhongyue emission factory Air Pollutants for
64
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Main
Emission Verified
Company or pollutant Emissi Emission Total Excessive
port Implemented pollutant total
subsidiary and specific Emission way on port concentration emission emission
distribution emission standards emission
name pollutant number (mg/Nm3) (t) condition
condition (t)
name
Enerty Co., through Thermal Power Plants
Ltd. chimney (GB13223-2011)
special emission limit
Guangdong Emission Standard of
Concentrated 330MW
Shaoguan Air Pollutants for
emission Within the unit：9.28；
Yujiang Power Smoke 2 Thermal Power Plants 76．7 717.78 No
through factory 600MW
Generation (GB13223-2011)
chimney unit：1.11
Co., Ltd. special emission limit
Guangdong Emission Standard of
Concentrated 330MWUnit
Shaoguan Air Pollutants for
emission Within the ：98.53；
Yujiang Power SO2 2 Thermal Power Plants 858.31 2303.55 No
through factory 600MWUnit
Generation (GB13223-2011)
chimney ：14.46
Co., Ltd. special emission limit
Guangdong Emission Standard of
Concentrated 330MWUnit
Shaoguan Air Pollutants for
emission Within the ：116.11；
Yujiang Power NOX 2 Thermal Power Plants 1263.06 2809.07 No
through factory 600MW
Generation (GB13223-2011)
chimney Unit：32.46
Co., Ltd. special emission limit
Emission Standard of
Concentrated
Zhanjiang Air Pollutants for
emission Within the
Electric Power Smoke 2 2 Thermal Power Plants 47.547 47.55 No
through factory
Co., Ltd. (GB13223-2011)
chimney
special emission limit
Emission Standard of
Concentrated
Zhanjiang Air Pollutants for
emission Within the
Electric Power SO2 2 9 Thermal Power Plants 256.468 256.467 No
through factory
Co., Ltd. (GB13223-2011)
chimney
special emission limit
Emission Standard of
Concentrated
Zhanjiang Air Pollutants for
emission Within the
Electric Power NOX 2 27 Thermal Power Plants 757.107 757.108 No
through factory
Co., Ltd. (GB13223-2011)
chimney
special emission limit
Unit 1 #： Emission Standard of
Guangdong Concentrated
2.79；unit 2 Air Pollutants for
Yudean Jinghai emission Within the
Smoke 2 #：2.31；unit Thermal Power Plants 152.39 1770 No
Power General through factory
3 #：2.72；unit (GB13223-2011)
Co., Ltd. chimney
4#：3.13。 special emission limit
Unit 1 #：
Emission Standard of
Guangdong Concentrated 14.79；unit 2
Air Pollutants for
Yudean Jinghai emission Within the #：17.49；unit
SO2 2 Thermal Power Plants 842.35 6502 No
Power General through factory 3#：13.65；
(GB13223-2011)
Co., Ltd. chimney unit 4 #：
special emission limit
15.22。
Unit 1#： Emission Standard of
Guangdong Concentrated
32.98；unit Air Pollutants for
Yudean Jinghai emission Within the
NOX 2 2#：32.4；unit Thermal Power Plants 1817.07 4687 No
Power General through factory
3 #：30.55； (GB13223-2011)
Co., Ltd. chimney
unit 4#：35.43 special emission limit
65
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Main
Emission Verified
Company or pollutant Emissi Emission Total Excessive
port Implemented pollutant total
subsidiary and specific Emission way on port concentration emission emission
distribution emission standards emission
name pollutant number (mg/Nm3) (t) condition
condition (t)
name
Emission Standard of
Guangdong Concentrated
Air Pollutants for
Red Bay Power emission Within the Not
Smoke 2 3.34 Thermal Power Plants 135.5 No
General Co., through factory approved
(GB13223-2011)
Ltd. chimney
special emission limit
Emission Standard of
Guangdong Concentrated
Air Pollutants for
Red Bay Power emission Within the Not
SO2 2 8.98 Thermal Power Plants 384.1 No
General Co., through factory approved
(GB13223-2011)
Ltd. chimney
special emission limit
Emission Standard of
Guangdong Concentrated
Air Pollutants for
Red Bay Power emission Within the Not
NOX 2 32.83 Thermal Power Plants 1368.66 No
General Co., through factory approved
(GB13223-2011)
Ltd. chimney
special emission limit
Emission Standard of
Maoming Concentrated
Air Pollutants for
Zhenneng emission Within the
Smoke 2 1.92 Thermal Power Plants 32.13 168.12 No
thermal power through factory
(GB13223-2011)
Co., Ltd. chimney
special emission limit
Emission Standard of
Maoming Concentrated
Air Pollutants for
Zhenneng emission Within the
SO2 2 12.43 Thermal Power Plants 155.78 385.51 No
thermal power through factory
(GB13223-2011)
Co., Ltd. chimney
special emission limit
Emission Standard of
Maoming Concentrated
Air Pollutants for
Zhenneng emission Within the
NOX 2 30.44 Thermal Power Plants 528.69 689.58 No
thermal power through factory
(GB13223-2011)
Co., Ltd. chimney
special emission limit
Emission Standard of
Concentrated
Air Pollutants for
Pinghai Power emission Within the
Smoke 2 1.78 Thermal Power Plants 55.18 700 No
plant through factory
(GB13223-2011)
chimney
special emission limit
Emission Standard of
Concentrated
Air Pollutants for
Pinghai Power emission Within the
SO2 2 22.60 Thermal Power Plants 685.08 1750 No
plant through factory
(GB13223-2011)
chimney
special emission limit
Emission Standard of
Concentrated
Air Pollutants for
Pinghai Power emission Within the
NOX 2 43.52 Thermal Power Plants 1118.05 3500 No
plant through factory
(GB13223-2011)
chimney
special emission limit
Guangdong Emission Standard of
Concentrated
Guohua Within the Air Pollutants for Not
Smoke emission 6 1.8 151 No
Yudean Power factory Thermal Power Plants approved
through
Generation (GB13223-2011)
66
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Main
Emission Verified
Company or pollutant Emissi Emission Total Excessive
port Implemented pollutant total
subsidiary and specific Emission way on port concentration emission emission
distribution emission standards emission
name pollutant number (mg/Nm3) (t) condition
condition (t)
name
Co., Ltd. chimney special emission limit
Guangdong Emission Standard of
Concentrated
Guohua Air Pollutants for
emission Within the Not
Yudean Power SO2 6 14.6 Thermal Power Plants 1230 No
through factory approved
Generation (GB13223-2011)
chimney
Co., Ltd. special emission limit
Guangdong Emission Standard of
Concentrated
Guohua Air Pollutants for
emission Within the Not
Yudean Power NOX 6 30 Thermal Power Plants 2524 No
through factory approved
Generation (GB13223-2011)
chimney
Co., Ltd. special emission limit
Emission Standard of
Concentrated
Air Pollutants for
Qianwan LNG emission Within the
NOX 3 31.65 Thermal Power Plants 491 1312.5 No
Power Plant through factory
(GB13223-2011)
chimney
special emission limit
Emission Standard of
Concentrated
Huizhou Air Pollutants for
emission Within the
LNG Power NOX 5 34.35 Thermal Power Plants 1008 2033 No
through factory
Plant (GB13223-2011)
chimney
special emission limit
Prevention and control of pollution facilities construction and operation
Within the report period, the company responds positively to requirements of the newest environmental protection
policies, strengthens the operation adjustment of the desulfurization and denitrification system and equipment
maintenance management, intensifies the transformation of the energy-saving technologies and dust-cleaning
equipment, improves the equipment operation efficiency, decrease the smoke and dust discharging concentration
and guarantee compliance of each pollutant emission with the national and local environmental protection
requirements. In accordance with the national environmental protection plan, each power plant of the company
implements positively requirements of Coal-fired Power Energy Saving and Emission Reduction Upgrading and
Transform Action Plan (2014-2020) and National Energy Administration Comprehensive Division Notice about
Decomposition and Implementation of Coal-fired Power Energy Saving and Emission Reduction Upgrading and
Transform Target Tasks, etc. and promotes the ultra-low emission transformation project. At present, the
company's subordinate coal-fired units have all completed ultra-low emission transformation work, and the
emission concentration of export flue gas pollutants has been greatly reduced on the basis of the original
environmental emission standards, reflecting the company's determination to fulfill its social responsibilities and
the responsibility to protect the environment mission.
Conditions of environmental impact assessment and other environmental protection administrative licensing of
construction projects
The company's construction projects that have been approved by government agencies have all undergone
environmental impact assessments and have obtained other necessary environmental protection administrative
licenses.
67
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Emergency plan for emergency environmental incidents
Combining with the Environmental Protection Law of the People's Republic of China and the Opinions of the
Ministry of Environmental Protection on Strengthening Environmental Emergency Management Work and other
laws and regulations on the monitoring of environmental risks, the company’s subordinate power generation
enterprises have formulated the Emergency Plan for Emergency Environmental Incidents according to their actual
conditions, which has standardized and improved the handling of emergent environmental events from the aspects
of environmental accident risk analysis, emergency command organization and responsibilities, disposal
procedures, and disposal measures, improved the ability to respond to unexpected environmental events, and
ensured that after an outbreak of an environmental incident, the company can organize emergency rescue work in
a timely, orderly and efficient manner to prevent pollution of the surrounding environment, minimize the damage
and social harm caused by the incident, maintain social stability, and protect public health and property safety.
Environmental self-monitoring program
During the reporting period, the company’s subordinate power generation companies organized annual
environmental self-monitoring programs in accordance with the national Administrative Measures on Automatic
Monitoring of Pollution Sources (No. 28 order of State Environmental Protection Administration) and other laws
and regulations, and conducted self-monitoring of the environment in accordance with the monitoring program,
and announced its own monitoring results in Guangdong Province's key pollution source regulatory information
platform and the national pollution source monitoring information and sharing platform. Both the announced rate
and completion rate had reached 100%.
Other environmental information that should be disclosed
No such cases in the reporting period.
Other environmental protection related information
No such cases in the reporting period.
XIX. Other material events
□Applicable √ Not applicable
No such cases in the reporting period.
XX. Material events of subsidiaries
√Applicable □ Not applicable
The company's holding subsidiary, Guangdong Yudean Pinghai Power Plant Co., Ltd, received the
“Administrative Punishment Decision” issued by the Guangdong Provincial Ocean & Fisheries Bureau on
November 14, 2016 (No. 019-2016 Yuehai Executive Punishment), and the punishment decision “ordered Pinghai
to return the illegally occupied sea areas and restore the sea areas to their original state, and sentenced 10 times
fines to the use fees of sea areas that shall be imposed within the period of that illegally occupied 16.3947 hectares,
amounted to RMB 172,144,350.00” for that Pinghai Power Plant carried out the site leveling and bank protection
work of Pinghai power plant without approval and did the reclamation of 16.3947 hectares and its behavior
violated the provisions of Article 3 of the Law of the People's Republic of China on the Administration of the Use
of Sea areas. Based on the audited net profit of RMB 3.238 billion attributable to the shareholders of the parent
68
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
company in 2015, the amount involved in the above-mentioned administrative penalty affects the net profit
attributable to shareholders of the parent company of about 77.4 million-which accounts for 2.39% of the net
profit of the most recently audited period.
Pinghai Power Plant disagreed with the punishment measures of the “Administrative Punishment Decision" and
applied for administrative reconsideration to the People's Government of Guangdong Province on January 16,
2017 in accordance with Article 6 of the "Administrative Reconsideration Law of the People's Republic of China".
On June 16, 2017, the People's Government of Guangdong Province issued a decision on the administrative
reconsideration, which stated “According to the provisions of Item 1 of Paragraph 1 of Article 28 of the
Administrative Reconsideration Law of the People's Republic of China, the Administrative Punishment Decision
(No. 019-2016 Yuehai Executive Punishment) made by the respondent’s Provincial Department of Ocean and
Fisheries is maintained.” Pinghai Power Plant disagreed with the aforementioned administrative reconsideration
decision and filed an administrative litigation to the Guangzhou Maritime Court on July 18, 2017. On December
28, 2017, the Guangzhou Maritime Court issued an administrative decision, stated “In accordance with the
provisions of Article 69 of the Administrative Procedure Law of the People's Republic of China, the decision is as
follows: the claim of the plaintiff Guangdong Huizhou Pinghai Power Plant Co., Ltd was rejected”. Pinghai Power
Plant disagreed with the verdict, and lodged an appeal to the Guangdong Provincial Higher People's Court against
the verdict, which has not yet been determined. According to the net profit of RMB 937 million attributable to
shareholders of the parent company in the previous year (2016), the amount involved in the above lawsuit affects
the net profit attributable to shareholders of the parent company of approximately RMB 77.4 million, which
accounts for approximately 8.26 % of the net profit of the most recently audited period, which does not constitute
a major impact on the Company.
As of the disclosure date of this report, the above-mentioned administrative punishment and the administrative
litigation matter are still in the process of multi-party communication and coordination. According to the “Asset
Purchase Agreement by Share Issuance” signed between Yudean Group and the Company in 2012, Yudean Group
shall compensate the Company for the actual loss caused by the above-said matter in accordance with the result of
the matter.
2. Guangdong Yudean Pinghai Power General Plant Co., Ltd., a controlling subsidiary of the Company, received
the Decision on Administrative Punishment (YHDCF [2019] No.042-1) issued by Huidong County Oceanic and
Fishery Bureau on November 13, 2018. The act of illegally occupying 1.2813 hectares of sea area by Pinghai
Power Plant to construct a sand barrier violated the provisions of the second paragraph of Article 3 of the Law of
the People's Republic of China on the Use of Sea Areas and the decision was that "It is ordered to return the
illegally occupied sea area, restore the sea area to its original state, and imposed an administrative penalty of RMB
11,531,700". According to the Company's audited net profit attributable to the shareholders of the parent company
of 743 million yuan in 2017, the amount of the above administrative penalty affects the net profit attributable to
the shareholders of the parent company of about 5,189,300 yuan, accounting for about 0.7% of the latest audited
net profit. Pinghai Power Plant refused to accept the punishment measures in the Decision on Administrative
Punishment and filed an application for administrative reconsideration with Huidong County People's
Government, which has accepted it. According to the Agreement on Issuance of Shares for Asset Purchase signed
between Yudean Group and the Company in 2012, Yudean Group will compensate the Company according to the
results of the above events and the actual losses caused therefrom.
69
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
VI. Change of share capital and shareholding of Principal Shareholders
(1) Changes in share capital
1. Changes in share capital
In Shares
Before the change Increase/decrease（+，-） After the Change
Amount Proportion Capitalization
Share Bonus
of common Other Subtotal Quantity Proportion
allotment shares
reserve fund
I. Share with
1,897,966,823 36.15% 2,123 2,123 1,897,968,946 36.15%
conditional subscription
2. State-owned legal
1,893,342,621 36.06% 1,893,342,621 36.06%
person shares
3.Other domestic shares 4,624,202 0.09% 2,123 2,123 4,626,325 0.09%
Of which：Domestic
4,620,666 0.09% 4,620,666 0.09%
legal person shares
Domestic natural person
3,536 0% 2,123 2,123 5,659 0%
shares
II. Shares with
unconditional 3,352,317,163 63.85% -2,123 -2,123 3,352,315,040 63.85%
subscription
1.Common shares in
2,553,909,163 48.64% -2,123 -2,123 2,553,907,040 48.64%
RMB
2.Foreign shares in
798,408,000 15.21% 798,408,000 15.21%
domestic market
III. Total of capital
5,250,283,986 100 % 0 0 5,250,283,986 100 %
shares
Reasons for share changed:
√Applicable □ Not applicable
During the reporting period, the Company added 2,123 shares with limited conditions of sale, some of which were
originally held by directors of the company and were converted into special share for senior executive. The total
number of shares of the Company remained unchanged.
Approval of Change of Shares
□ Applicable √ Not applicable
Ownership transfer of share changes
□ Applicable √ Not applicable
Progress on any share repurchase:
□ Applicable √ Not applicable
70
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Progress on reducing the repurchased shares by means of centralized bidding:
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
common shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
□ Applicable √Not applicable
2. Change of shares with limited sales condition
√ Applicable □ Not applicable
In Shares
Restricted Shares
Opening shares Shares released Ending shares Date for
Shareholders Increased In the Restricted reasons
restricted in Period restricted released
Period
The original part of
unrestricted tradable shares
Wen Lianhe 0 2,122 2,122 --
was converted into senior
management lock-in shares.
Lin Weifeng 3,536 1 3,537 -- --
Total 3,536 2,123 5,659 -- --
Ⅱ.Issuing and listing
1.Explanation of the Situation of the Security Issue(No Preferred Shares) in the Report Period
□Applicable √Not applicable
2.Change of asset and liability structure caused by change of total capital shares and structure
□Applicable √Not applicable
3.About the existing employees’ shares
□Applicable √Not applicable
Ⅲ.Shareholders and actual controlling shareholder
1. Number of shareholders and shareholding
In Share
Total number of
Total shareholders The total Total preferred shareholders at
common
94,746 at the end of the 99,561 number of 0 the end of the month from the date 0
shareholders at
month from the preferred of disclosing the annual report(if
the end of the
71
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
reporting period date of disclosing shareholders any)(See Notes 8)
voting rights
Particulars about shares held above 5% by shareholders or top ten shareholders
Number of share
Proportion Number of Changes in Amount of Amount of pledged/frozen
Shareholders Nature of
of shares shares held at reporting restricted un-restricted
shareholder
held（%） period -end period shares held shares held State of Amount
share
Guangdong Energy Group State-owned
67.39% 3,538,005,285 1,893,342,621 1,644,662,664
Co., Ltd. legal person
China Securities Finance State-owned
2.84% 148,862,420 3,113,440 148,862,420
Co., Ltd. legal person
Shenzhen Guangfa Electric State-owned
2.22% 116,693,602 116,693,602
Power Investment Co., Ltd. legal person
Guangdong Electric Power State-owned
1.80% 94,367,341 94,367,341
Development Corporation legal person
Domestic
Li Zhuo 0.60% 31,542,323 -161,520 31,542,323
Natural person
Domestic
National Social Security Non-State
0.48% 24,994,982 2,000,000 24,994,982
Fund 103 portfolio owned legal
person
Domestic
Zheng Jianxiang 0.43% 22,567,698 885,700 22,567,698
Natural person
Domestic
Harbin Hali Industry Co., Non-State
0.40% 20,942,645 -1,125,920 20,942,645
Ltd. owned legal
person
CHINA INT'L CAPITAL
Overseas Legal
CORP HONG KONG 0.29% 15,316,066 -1 15,316,066
person
SECURITIES LTD
Domestic
Harbin Daoli District Non-State
0.26% 13,722,893 -28,295,568 13,722,893
Charity Foundation owned legal
person
The fourth largest shareholder Guangdong Electric Power Development Corporation is the
Explanation on associated relationship wholly-owned subsidiaries of the largest shareholder Guangdong Energy Group. These two
among the aforesaid shareholders companies have relationships; whether the other shareholders have relationships or
unanimous acting was unknown
Shareholding of top 10 shareholders of unrestricted shares
Quantity of unrestricted shares held Share type
Name of the shareholder
at the end of the reporting period Share type Quantity
Guangdong Energy Group Co., Ltd. 1,644,662,664 RMB Common shares 1,644,662,664
China Securities Finance Co., Ltd. 148,862,420 RMB Common shares 148,862,420
Shenzhen Guangfa Electric Power Investment
116,693,602 RMB Common shares 116,693,602
Co., Ltd.
Guangdong Electric Power Development
94,367,341 RMB Common shares 94,367,341
Corporation
Li Zhuo 31,542,323 RMB Common shares 31,542,323
National Social Security Fund 103 portfolio 24,994,982 RMB Common shares 24,994,982
72
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Foreign shares placed in
Zheng Jianxiang 22,567,698 22,567,698
domestic exchange
Harbin Hali Industry Co., Ltd. 20,942,645 RMB Common shares 20,942,645
CHINA INT'L CAPITAL CORP HONG Foreign shares placed in
15,316,066 15,316,066
KONG SECURITIES LTD domestic exchange
Harbin Daoli District Charity Foundation 13,722,893 RMB Common shares 13,722,893
Explanation on associated relationship or
consistent action among the top 10 The fourth largest shareholder Guangdong Electric Power Development Corporation is
shareholders of non-restricted negotiable the wholly-owned subsidiaries of the largest shareholder Guangdong Energy Group.
shares and that between the top 10 These two companies have relationships; whether the other shareholders have
shareholders of non-restricted negotiable relationships or unanimous acting was unknown.
shares and top 10 shareholders
The Fifth largest shareholder Li Zhuo holds35,000 A shares of the Company through A
shares ordinary stock account,and holds 31,507,323A shares of the Company through
stock account with credit transaction and guarantee, hold 31,542,323 shares of the
Company's stock totally.
Explanation on shareholders participating in
The Eighth largest shareholder Harbin Hali Industry Co., Ltd. holds20,942,645 A shares
the margin trading business(if any )(See Notes
of the Company through stock account with credit transaction and guarantee.
4)
The Tenth largest shareholder Harbin Daoli District Charity Foundation holds72,287 A
shares of the Company through A shares ordinary stock account,and holds 13,650,606A
shares of the Company through stock account with credit transaction and guarantee, hold
13,722,89 shares of the Company's stock totally.
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a
buy-back agreement dealing in reporting period.
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
have no buy –back agreement dealing in reporting period.
2.Controlling shareholder
Nature of Controlling Shareholders: Local state holding
Type of Controlling Shareholders:Legal person
Legal
Name of the Controlling Date of
representative Organization code Principal business activities
shareholder incorporation
/Leader
Management and sales of the
electricity investment construction
operation management，electricity
power(Thermal Power)，
Guangdong Energy Group The industry of transportation
Li Zhuoxian August 3,2001 91440000730486022G
Co., Ltd. resources environmental protection，
new source of energy electricity
investment; investment planning and
consulting ; information consulting
service; sales of production materials.
The equity of the controlling
shareholder in other domestic
and foreign listed companies Unknown
held or partly held by it in the
report period
73
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Change of the actual controller in the reporting period
□Applicable √Not applicable
No such cases in the Reporting Period.
3．Information about the controlling shareholder of the Company
Actual controller nature：Local state owned assets management
Actual controller type：Legal person
Legal
Name of the controlling Date of
representative/p Organization code Principal business activities
shareholder establishment
erson in charge
As the special institution directly
subordinate to Guangdong
State-owned Assets supervision
Provincial People's Government,
and administration Commission of
Li Cheng June 26,2004 114400007583361658 performed the obligation of
Guangdong Provincial People’s
provincial state-asset contributor
Government
entrusted by the provincial
government.
Equity of other domestic/foreign
listed company with share
controlling and share participation Unknown
by controlling shareholder in
reporting period
Changes of the actual controller in the reporting period
□Applicable √Not applicable
No Changes of the actual controller in the reporting period
Block Diagram of the ownership and control relations between the company and the actual controller
The actual controller controls the company by means of trust or managing the assets in other way
74
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
□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 Party
and Other Commitment Subjects
□Applicable √Not applicable
75
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
VII. Situation of the Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares in the reporting period.
76
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
VIII. Information about Directors, Supervisors and Senior Executives
I. Change in shares held by directors, supervisors and senior executives
Amount of Amount of Shares
Shares Other
Starting Expiry shares shares held at
Office held at the changes
Name Positions Sex Age date of date of increased at decreased at the
status year-begin increase/
tenure tenure the reporting the reporting year-end
(share) decrease
period(share) period(share) (share)
Board In June September
Wang Jin Male 55
chairman office 11,2018 18,2020
In September September
Wang Jin Director Male 55
office 18,2017 18,2020
In September September
Rao Subo Director Male 54
office 18,2017 18,2020
Wen In September September
Director Male 50 2,830 2,830
Lianhe office 18,2017 18,2020
Wen In September September
Director Female 54
Shufei office 18,2017 18,2020
In September September
Chen Ze Director Male 49
office 18,2017 18,2020
In June September
Li Fangji Director Male 51
office 28,2018 18,2020
Zheng In June September
Director Male 50
Yunpeng office 28,2018 18,2020
Zheng General In June September
Male 50
Yunpeng Manager office 11,2018 18,2020
In September September
Zhou Xian Director Male 45
office 18,2017 18,2020
Chen In September September
Director Male 55
Changlai office 18,2017 18,2020
Zhang In September September
Director Male 52
Xueqiu office 18,2017 18,2020
Independent In May September
Sha Qilin Male 58
director office 20,2014 18,2020
Shen Independent In May September
Female 51
Hongtao director office 20,2016 18,2020
Independent In May September
Wang Xi Male 48
director office 20,2016 18,2020
Ma Independent In September September
Male 54
Xiaoqian director office 18,2017 18,2020
Yin Independent In September September
Male 49
Zhongyu director office 18,2017 18,2020
Zhang Chairman In Male 57 August September
77
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Dewei of the office 14,2012 18,2020
Supervisory
Committee
Li In June September
Supervisor Male 44
Baobing office 28,2018 18,2020
Zhu Independent In May September
Male 61
Weiping Supervisor office 20,2014 18,2020
Jiang Independent In May September
Male 50
Jinsuo Supervisor office 20,2014 18,2020
Lin Employee In May September
Male 50 4,716 4,716
Weifeng supervisor office 15,2002 18,2020
Employee In May September
Li Qing Male 41
supervisor office 20,2014 18,2020
Yang In January September
Deputy GM Male 53
Xuanxing office 16,2014 18,2020
In July September
Liu Hui Deputy GM Female 53
office 28,2010 18,2020
Deputy GM,
In September September
Liu Wei Finance Male 39
office 18,2017 18,2020
manager
Board In October September
Liu Wei Male 39
secretary office 24,2006 18,2020
Huang Board Dimiss August June
Male 56
Zhenhai chairman ion 25,2016 11,2018
Huang Dimiss August June
Director Male 56
Zhenhai ion 25,2016 28,2018
Yao Dimiss March June
Director Male 53
Jiheng ion 21,2014 28,2018
Yao General Dimiss January June
Male 53
Jiheng Manager ion 16,2014 11,2018
Dimiss May June
Zhao Li Supervisor Female 46
ion 18,2011 28,2018
Total -- -- -- -- -- -- 7,546 0 0 0 7,546
II. Change in shares held by directors, supervisors and senior executives
√ Applicable □Not applicable
Name Positions Types Date Reason
Huang Zhenhai Board chairman Dimission June 11, 2018 Job change
Huang Zhenhai Director Dimission June 28,2018 Job change
Yao Jiheng Director Dimission June 28,2018 Job change
Yao Jiheng General Manager Dimission June 11,2018 Job change
Zhao Li Supervisor Dimission June 28,2018 Job Change
III.Posts holding
Work Experience in the past five years of Directors, supervisors and senior Executives in Current office
78
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Mr. Wang Jin was born in May 1963. He holds a Bachelor of Engineering from Nanjing Institute of Technology
and a Master of Business Administration from Jinan University. He is now a senior engineer,and currently serves
as the deputy chief engineer of Guangdong Energy Group Co., Ltd.,chairman of Guangdong Electric Power
Development Co., Ltd..He once served as director of boiler maintenance workshop in Shaoguan Power Plant,
director of Engineering Technology Department of Zhuhai Power Plant’s Planning and Construction Department,
deputy director of Zhuhai Power Plant, executive deputy general manager of Guangzhu Power Generation Co.,
Ltd. and general manager of Zhuhai Power Plant Co., Ltd., general manager and secretary of the Party Committee
of Guangdong Zhuhai Jinwan Power Generation Co., Ltd., general manager of Guangzhu Power Generation Co.,
Ltd., the deputy chief engineer and the manager of the Department of Management and the secretary of the Party
Branch of Guangdong Yudean Group Co., Ltd., and concurrently serves as a director of Guangdong Electric
Power Development Co., Ltd.
Mr. Rao Subo, born in May 1964, is bachelor of Engineering of Chongqing University and graduate of the Central
Party School and is a Senior Engineer (Professor Level). He is currently a member of the disciplinary committee,
deputy chief engineer and minister of safety supervision and production technology department of Guangdong
Energy Group Co., Ltd., and head of preparation team of Yudean electric power and information technology
center. He once served as deputy chief engineer of Shaoguan Power Plant, deputy director of the Department of
Biotechnology of Guangdong Electric Power Group Corporation, director of Department of Biotechnology and
Safety Supervision of Guangdong Yudean Assets Management Co., Ltd., director of Department of
Biotechnology and Safety Supervision, deputy chief engineer of Guangdong Yudean Group Co., Ltd., and director
of the Shajiao A Power Plant and party committee secretary, Deputy chief engineer, Secreatary of the Safety
Supervision and Produce technology Dept, Secreatary of the Party Branch and Head of the Information
Technology Centre Preparatory team of Guangdong Yudean Group.
Mr. Wen Lianhe was born in October 1968 and graduated from Harbin Institute of Technology. He is now senior
engineer (professor level) and currently deputy chief engineer and director of Strategic Development Department
of Guangdong Energy Group Co., Ltd. He once served as deputy minister of Biotechnology and Safety
Supervision Department of Guangdong Yudean Group Co., Ltd., general manager and party committee secretary
of Guangdong Red Bay Power Generation Co., Ltd., Deputy chief engineer, Minister of strategic Development
and Secretary of Party Branch of Yudean Group.
Ms. Wen Shufei, born in August 1964, is Bachelor of Economics from Zhongnan University of Finance and
Economics. She is an accountant and currently serves as deputy chief accountant and head of financial department
of Guangdong Energy Group Co., Ltd. She once served as deputy division chief and division chief of the Second
Business Office of Guangdong Provincial Finance Ombudsman Office of Ministry of Finance, deputy group
leader of preparatory group, deputy general manager, party branch secretary and general manager of Guangdong
Yudean Finance Co., Ltd.
Mr. Chen Ze was born in January 1969. He holds a bachelor degree from Chongqing University and a doctoral
degree in management from Huazhong University of Science and Technology. He is senior economist, corporate
counsel (practicing qualifications), and currently serves as the general counsel, secretary of the board of directors,
and director of legal affairs and capital operation department of Guangdong Energy Group Co., Ltd. He once
served as deputy director of the general department and director of capital operation and legal affairs department
of Guangdong Yudean Group Co., Ltd., general manager and party branch secretary of Guangdong Yudean
Shipping Co., Ltd.
Mr. Li Fangji, born in November 1967, is a senior engineer. He holds a bachelor degree from Beijing Institute of
79
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Water Resources and Electric Power Economics and Management and a master degree in engineering from
Tianjin University. He currently serves as Deputy Chief Engineer of Guangdong Energy Group Co., Ltd. and
concurrently serves as Minister of Strategy Development Department and Secretary of Party Branch of Yudean
Group Corporation. He had served as Engineer of Shenzhen Energy Corporation, Assistant to General Manager
and Deputy General Manager of Shenzhen Qianwan Electric Power Development Co., Ltd., Assistant to General
Manager, Chairman of the Labor Union, Deputy General Manager, General Manager, and Secretary of the Party
Committee of Shenzhen Guangqian Electric Power Co., Ltd., Secretary of Party Committee and General Manager
of Guangdong Yudean Jinghai Power Generation Co., Ltd.
Mr. Zheng Yunpeng, born in October 1968, Bachelor of South China University of Technology and MBA of
Jinan University, is a senior engineer. Currently, he is the general manager of Guangdong Electric Power
Development Co., Ltd. He had served as Deputy Minister of Strategy Development Department of Guangdong
Yudean Asset Management Co., Ltd., Deputy Minister of Strategy Development Department of Guangdong
Yudean Group Co., Ltd., Minister of Strategy Development Department of Guangdong Yudean Group Co., Ltd.,
Secretary of the Party Branch and General Manager of Branch Company of Guangdong Yudean Environmental
Protection Engineering Management Company, Factory Director and Secretary of the Party Committee of
Huangpu Power Plant, General Manager of Yuehua Power Generation Company, General Manager and Secretary
of the Party Branch of Guangdong Yudean Natural Gas Co., Ltd.
Mr. Zhou Xi'an, born in March 1973, is Bachelor of Engineering from Zhejiang University, Master of Engineering
from Huazhong University of Science and Technology. He is senior engineer and currently the director of the
general department and party branch secretary of Guangdong Energy Group Co., Ltd. He used to be deputy chief
engineer and deputy director of Changhu Hydropower Plant, deputy general manager of Guangdong Yudean
Changhu Power Generation Co., Ltd., general manager and party committee secretary of Guangdong Yudean
Qingxi Power Generation Co., Ltd., general manager and party committee secretary of Guangdong Yudean
Nanshui Water Power Generation Co., Ltd.
Mr. Chen Changlai was born in April 1963. He has a correspondence bachelor's degree in economics and
management from Guangdong Provincial Party School, and a master's degree in business administration from
South China University of Technology. He is senior political engineer and currently the director and party
committee secretary of Shajiao A Power Plant. He used to serve as the director of the Beijing office of Guangdong
Yudean Group Co., Ltd., party committee secretary,discipline inspection commission secretary and labour union
chairman of the Shajiao A Power Plant.
Mr. Zhang Xueqiu, born in January 1966. Bachelor of Science, Xiangtan University, Master of Management,
Jinan University. Senior economist. He is currently the Deputy General Manager and Secretary of the Board of
Directors of Guangzhou Development Group Co., Ltd. He was the general manager of Guangzhou Development
Group Co., Ltd.
Mr. Sha Qilin, born in October 1960. Master of Wuhan Institute of Technology. Associate Professor, practicing
lawyer. He is currently a lawyer of Guangdong Nanguo Desai Law Firm, member of the Professional Committee
of Financial and Securities of Guangzhou Lawyers Association, and concurrently an independent director of
Guangdong Electric Power Development Co., Ltd. He was an associate professor of Wuhan Institute of
Technology (now Wuhan University of Technology), head of investment and development department of China
Huandao Group Company, deputy chief engineer of group and chief manager of overseas listed leading group.
Ms. Shen Hongtao, was born in August 1967, PhD of management of Xiamen University, professor, doctoral
80
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
supervisor. Currently, she is a professor in accounting department of Jinan University, and concurrently serves as
member of Accounting Society of China, Standing member of Accounting Association of Guangdong Province,
editorial board member of China Journal of Accounting Studies, editorial board member of Accounting Study,
independent director of Rising Nonferrous Metals Co.,Ltd, independent director of Polyrocks Chemical Co.,Ltd
and independent director of Guangdong Electric Power Development Co.,Ltd. She had served as deputy section
head of Guangdong Provincial People's Government, consultant of PwC International and vice president of
International College of Jinan University.
Mr. Wang Xi, was born in April 1970, PhD of economics of Sun Yat-sen University, professor, doctoral
supervisor, Specially-appointed Professor of Pearl-river Scholar. Currently, he serves as professor of Lingnan
School of Yat-sen University and Director of Institute of Economic Research of Yat-sen University, concurrently
serves as editorial board member of The World Economy of Chinese Academy of Social Sciences, Deputy
Secretary-General and Standing member of China Institute of International Finance, Standing member of China
Society of World Economics, financial consulting expert of Guangdong Provincial People's Congress Standing
Committee, independent director of Palm Garden Co.,Ltd, independent director of Guangzhou Securities Co.,Ltd,
independent director of Zhuhai Rural Commercial Bank and independent director of Guangdong Electric Power
Development Co.,Ltd. He had served as cadre of Agricultural Bank of China Guangdong Branch, manager of the
investment department of Hainan Trust and Investment Corporation, deputy director of the Finance Department of
Lingnan School of Yat-sen University, director and vice president of International Business Department of
Lingnan School of Yat-sen University.
Mr. Ma Xiaoqian, born in March 1964, is Ph.D.of engineering thermophysics from South China University of
Technology. He is a professor and currently serving as the director of the Key Laboratory of the Electric Power
School of South China University of Technology and concurrently serving as the chairman of the Guangzhou
Energy Institute, the outside director of Guangzhou Environmental Protection Investment Group Co., Ltd., and the
independent director of Guangzhou Development Group Co., Ltd. He used to be the dean and vice president of
Electric Power College of the South China University of Technology.
Mr. Yin Zhongyu was born in February 1969. He is Master of rural finance from Northwest Agricultural
University. He is currently the general manager of the Great Wall Securities M&A Department. He previously
served as a director of the Guotai Junan M&A business and an executive director of Shanghai Longrui Investment
Consultants Company.
Mr.Zhang Dewei, born in January 1961. Guangzhou Normal University Bachelor of Science, Jinan University
Master of Business Administration. Senior economist. He is currently the Minister of Audit and Supervisory
Committee of Guangdong Energy Group Co., Ltd. He served as Director of the General Manager's Office of
Guangdong Electric Power Development Co., Ltd., Secretary of Board Affairs Department and Secretary of the
Board of Directors, Deputy Director of the Board of Guangdong Yudean Asset Management Co., Ltd., Deputy
Director of the Board of Directors of Guangdong Yudean Group Co., Deputy Minister of Legal Affairs, Deputy
Minister of Capital Operations and Legal Affairs.
Mr. Li Baobing, born in September 1974, graduated from Xi'an Jiaotong University with a master degree, is a
senior economist. Currently he is the Deputy Minister of Finance Department of Guangdong Energy Group Co.,
Ltd. He had served as Project Manager and Deputy Chief of Office of Investment Banking Department of Huaxin
Securities Co., Ltd., Investment Manager of Shenzhen Innovation Technology Investment Group Co., Ltd., Senior
Manager of Investment Banking Center and Deputy General Manager of Guangzhou Xiancheng Group Co., Ltd.,
Assistant to General Manager of Budget and Finance Department and Director of Asset Management Department
81
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
of Guangzhou Lingnan International Enterprise Group Co., Ltd., Manager of Investment Department, Manager of
Comprehensive Department, Board Secretary and Deputy General Manager of Guangdong Yudean Finance Co.,
Ltd., and had concurrently served as General Manager of Shenzhen Tianxin Insurance Brokers Co., Ltd.
Mr. Zhu Weiping, born in May 1957. Doctor of Economics, Jinan University. He is currently a vice president of
the China Industrial Economics Society, executive vice president of the Guangdong Economic Association,
Zhujiang Industrial and Guangsheng Youse Independent Director, Independent Supervisor of Guangdong Electric
Power Development Co., Ltd..
Mr. Jiang Jin Suo, born in March 1968. Doctor of Management, Jinan University. Professor, Certified Public
Accountant. He is currently the Deputy Director of Accounting Department of Guangdong Finance Institute,
Member of Guangzhou Institute of Certified Public Accountants, Independent Supervisor of Guangdong Electric
Power Development Co., Ltd.
Mr. Lin Weifeng, born in February 1968. Bachelor of Management, Jiangxi University of Science and
Technology. auditor. The current Guangdong Electric Power Development Co., Ltd. employee supervisor, Shajiao
A power plant finance minister. Former Shajiao power plant audit director, Shajiao A power plant deputy chief
economist.
Mr. Li Qing, born in May 1977. Bachelor of Economics, Shanghai University of Finance and Economics. senior
accountant. The current Guangdong Electric Power Development Co., Ltd. employee supervisor, director of the
audit room. Former Yunfu Power Plant Finance Department Accounting, Guangdong Yuelong Power Co., Ltd.
Finance Minister Assistant.
Mr. Yang Xuanxing, born in November 1965. Bachelor of Management, Zhongshan University, Senior auditor,
He is currently the deputy general manager of Guangdong Electric Power Development Co., Ltd. He was
appointed Deputy Director of Audit Office of Guangdong Electric Power Industry Bureau, Director of Audit and
Supervision Department of Guangdong Yudean Asset Management Co., Ltd., Deputy Secretary of Discipline
Inspection Commission of Guangdong Yudean Group Co., Ltd., Finance Minister and Deputy Chief Accountant.
Ms. Liu Hui was born in October 1965. Bachelor of Engineering, Jiangxi South Metallurgical School. Senior
engineer. He is currently the deputy general manager of Guangdong Electric Power Development Co., Ltd.
Former Guangdong Thermal Power Engineering Corporation Deputy Chief Economist, Minister of Budget,
Guangdong Electric Power Development Co., Ltd. project management manager.
Mr. Liu Wei, born in April 1979, is Bachelor of finance from Zhongnan University of Economics and Law. He is
an economist and currently serves as the Company’s deputy general manager, chief financial officer, secretary of
the board of directors, and concurrently as manager of the board affairs department. He used to be responsible for
the financial department of Guangdong Electric Power Development Co., Ltd., and be responsible and as the host
of the Board Affairs Department, and the representatives of the company's securities affairs.
Office taking in shareholder companies
√Applicable □Not applicable
Does he /she
Sharing Expiry date receive
Names of the Titles engaged in the
Names of the shareholders date of of office remuneration or
persons in office shareholders
office term term allowance from
the shareholder
Rao Subo Guangdong Energy Group Co., Ltd. Deputy chief engineer October Yes
82
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
10,2005
Head of preparation section of
Guangdong Electric Power
Rao Subo Guangdong Energy Group Co., Ltd. April 2016 Yes
Infoirmation technology
Center
Rao Subo Guangdong Energy Group Co., Ltd. Director of security July 2018 Yes
November
Wen Lianhe Guangdong Energy Group Co., Ltd. Deputy chief engineer Yes
2010
Minister of Management and
Wen Lianhe Guangdong Energy Group Co., Ltd. April 2018 Yes
Secretary of the party branch
Deputy Chief accountant and
Wen Shufei Guangdong Energy Group Co., Ltd. July 2014 Yes
Minister of finance Dept
General Counsel, Secretary of
the Board of Directors,
Chen Ze Guangdong Energy Group Co., Ltd. June 2016 Yes
Minister of legal Affairs and
Capital Operations
Deputy Chief Engineer,
Li Fangji Guangdong Energy Group Co., Ltd. Minister of Strategic Dept and April 2018 Yes
Secretary of Party Branch
Minister of the integrated
November
Zhou Xian Guangdong Energy Group Co., Ltd. department and secretary of Yes
2016
the party branch
Director of the Audit Dept and
Zhang Dewei Guangdong Energy Group Co., Ltd. Supervisory board , Secretary June 2012 Yes
of the Party Branch
Deputy Secretary of the
September
Zhang Dewei Guangdong Energy Group Co., Ltd. discipline Inspection Yes
2017
Commission
Zhang Dewei Guangdong Energy Group Co., Ltd. Chief auditor July 2018 Yes
Li Baobing Guangdong Energy Group Co., Ltd. Deputy Minister of Finance April 2018 Yes
Deputy General Manager and
Guangzhou Development Group Co.,
Zhang Xueqiu Secretary of the Board of May 2009 Yes
Ltd.
Directors
Notes to
post-holding in
Where there are more than one post, the starting time of appointment shall be the starting time of the main post.
shareholder’s
unit
Offices taken in other organizations
√Applicable □Not applicable
Drawing
Start date of End date of remuneration and
Name Other unit Title
office term office term allowance from of
other unit(Y/N)
Maoming Zhenneng Thermoelectric Co.,
Wang Jin Board chairman December 2010 No
Ltd.
Wang Jin Yudean Investment Co., Ltd. Director December 2010 No
Guangdong Yuehua Power Generation
Wang Jin Board chairman July 2017 No
Co.,Ltd.
Wang Jin Guangdong Red Bay Power Generation Co., Board chairman September No
83
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Drawing
Start date of End date of remuneration and
Name Other unit Title
office term office term allowance from of
other unit(Y/N)
Ltd. 2018
Guangdong Yudean Jinghai Power
Wang Jin Director June 2018 No
Generation Co., Ltd.
Guangdong Huizhou Natural Gas Power
Wang Jin Board chairman June 2018 No
Generation Co., Ltd.
Guangdong Shaoguan Yuejiang Power
Rao Subo Board chairman July 2016 No
Generation Co., Ltd.
Vice Board
Rao Subo Guangdong Yuejia Electric Power Co., Ltd. December 2013 No
chairman
Guangdong Yunhe Power Generation Co.,
Rao Subo Board chairman January 2014 No
Ltd.
Rao Subo North Union Electric Power Co., Ltd. Director March 2014 No
Rao Subo Shanxi Yudean Energy Co., Ltd. Board chairman January 2014 No
Rao Subo Yudean Investment Co., Ltd. Board chairman February 2014 No
Tianshengqiao First Class Hydropower
Rao Subo Board chairman June 2017 No
Development Co., Ltd.
Guangzhou Electric Power Trading Center
Wen Lianhe Director July 2018 No
Co., Ltd.
Guangzhou Electric Power Trading Center
Wen Lianhe Director August 2018 No
Co., Ltd.
Guangdong Yudean Jinghai Power
Wen Lianhe Board chairman July 2018 No
Generation Co., Ltd.
Zhuhai Special Economic Zone
Wen Lianhe Board chairman June 2018 No
GuangzhuPower Generation Co., Ltd.
Guangdong Zhuhai Power Generation Co.,
Wen Lianhe Board chairman July 2018 No
Ltd.
September
Wen Lianhe Yudean Investment Co., Ltd. Director No
2018
Wen Shufei Guangdong Yudean Finance Co., Ltd. Board chairman August 2015 No
Wen Shufei Chaokang Investment Co., Ltd. Board chairman December 2014 No
Tianshengqiao First Class Hydropower
Wen Shufei Director August 2014 No
Development Co., Ltd.
Zhuhai Special Economic Zone
Wen Shufei Director July 2014 No
GuangzhuPower Generation Co., Ltd.
Guangdong Zhuhai Power Generation
Wen Shufei Director July 2014 No
Co.,Ltd.
Guangdong Zhuhai Jinwan Power
Wen Shufei Director July 2014 No
Generation Co., Ltd.
Guangdong Yudean Financing Lease Co.,
Wen Shufei Board chairman December 2016 No
Ltd.
Guangdong Yudeann property Insurance November
Wen Shufei Board chairman No
Co., Ltd. 2017
Chen Ze Guangdong Yudean Shipping Co., Ltd. Board chairman August 2016 No
Chen Ze Guangdong Yudean Jinghai Power Board chairman July 2016 No
84
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Drawing
Start date of End date of remuneration and
Name Other unit Title
office term office term allowance from of
other unit(Y/N)
Generation Co., Ltd.
Chen Ze Guangdong Yuejia Electric Power Co., Ltd. Board chairman July 2016 No
Guangdong Yudean Faneng Investment Co., Executive
Chen Ze August 2016 No
Ltd. director
Tianshengqiao First Class Hydropower
Chen Ze Director October 2016 No
Development Co., Ltd.
Chen Ze Guangdong Yangjiang Port Co., Ltd. Board chairman August 2016 No
Guangdong Yudean Xinhui Power
Li Fangji Board chairman June 2018 No
Generation Co., Ltd.
Guangdong Yudean Zhongshan Thermal
Li Fangji Board chairman June 2018 No
Power Co., Ltd.
Guangdong Yudean Huaxing Coal Gas
Li Fangji Board chairman June 2018 No
Union cycle Power Generation Co., Ltd.
Li Fangji Yangjiang Nuclear Power Co., Ltd. Director June 2018 No
Taishan Nuclear Power Industry Investment
Li Fangji Co., Ltd. (Taishan Nuclear Power Joint Director June 2018 No
Venture Co., Ltd.)
Guangdong Yudean Holdings Western
Li Fangji Director July 2018 No
Investment Co., Ltd.
Guangdong Yudean Huadu Natural Gas September
Zheng Yunpeng Board chairman No
Thermal Power Co., Ltd. 2018
Guangdong Yudean Bohe Coal Power
Zheng Yunpeng Board chairman July 2018 No
Co.,Ltd.
Executive
Zheng Yunpeng Shenzhen Guangqian Power Co., Ltd. July 2018 No
director
Guangdong Yudean Real estate Investment Executive
Zhou Xian July 2017 No
Co., Ltd. director
Guangzhou Development New Energy Executive
Zhang Xueqiu January 2015 No
Investment Management Co., Ltd. director
Guangzhou Development New City Executive
Zhang Xueqiu May 2014 No
Investment Co., Ltd. director
Guangzhou Development Nansha Executive
Zhang Xueqiu May 2014 No
Investment Management Co., Ltd. director
A
Sha Qilin Guangdong Nanguo Desai Law firm March 2007 No
lawyer,Partner
Shen Hongtao Accounting dept , Jinan University Professor April 2012 Yes
Independent
Shen Hongtao Guangsheng Nonferrous Metal Co., Ltd. April 2015 Yes
Director
Guangzhou Yuexiu Finance Holding Group Independent November
Shen Hongtao Yes
Co., Ltd. Director 2017
Independent September
Shen Hongtao Guangzhou Store Co., Ltd. Yes
Director 2016
Wang Xi Lingnan College, Sun Yat-sen University Professor July 2006 Yes
Wang Xi Palm Graden Co., Ltd. Independent May 2014 Yes
85
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Drawing
Start date of End date of remuneration and
Name Other unit Title
office term office term allowance from of
other unit(Y/N)
Director
Independent
Wang Xi Guangzhou Securities Co., Ltd. December 2012 Yes
Director
Independent
Wang Xi Zhuhai Rural Commercial Bank Co., Ltd. July 2014 Yes
Director
General
Manager of M
Yin Zhongyu Greal Wall Secutities Co., Ltd. March 2009 Yes
&A
Department
Provincial Key Laboratory, School of
Ma Xiaoqian Electric Power, South China University of Director July 2014 Yes
Technology
Guangzhou Environmental protection External September
Ma Xiaoqian Yes
Investment Group Co., Ltd. director 2016
Independent
Ma Xiaoqian Guangzhou Development Group Co., Ltd. June 2016 Yes
Director
Guangdong Red Bay Power Generation
Zhang Dewei Director April 2010 No
Co.,Ltd.
Chairman of the
Zhang Dewei Yangjiang Nuclear Power Co., ltd. Supervisory June 2016 No
Committee
Taishan Nuclear Power Industry Investment
Zhang Dewei Co., Ltd.（Taishan Nuclear Power Joint Supervisor June 2016 No
Venture Co., Ltd.）
Chairman of the
Guangdong Yudean Jinghai Power
Li Baobing Supervisory June 2018 No
Generation Co., Ltd.
Committee
Chairman of the
Li Baobing Guangdong Power Development Co., Ltd. Supervisory July 2018 No
Committee
Li Baobing CSPG Energy Co., Ltd. Supervisor June 2018 No
Li Baobing Yudean Group .Guizhou Co., Ltd. Director August 2018 No
Institute of industrial Economics, Jinan Professor,
Zhu Weiping January 2000 Yes
University President
Independent November
Zhu Weiping Guangsheng Nonferrous Metal Co., ltd. Yes
director 2016
Professor,
Jiang Jinsuo Guangdong finance Institute January 2013 Yes
Headof Dept
Guangdong Yudean Bohe Coal Power
Li Qing Supervisor December 2010 No
Co.,Ltd.
Li Qing Lincang Yudean Energy Co., Ltd. Supervisor January 2015 No
Guangdong Yudean Yongan Natural Gas
Li Qing Supervisor June 2016 No
thermal Power Co., Ltd.
Guangdong Yudean Qujie Natural Gas
Li Qing Supervisor April 2015 No
Power Generation Co., Ltd.
86
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Drawing
Start date of End date of remuneration and
Name Other unit Title
office term office term allowance from of
other unit(Y/N)
South Offshore wind power Union
Li Qing Supervisor June 2012 No
Development Co., Ltd
Yang Vice Board
Shanxi Yudean Energy Co., Ltd. August 2015 No
Xuanxing chairman
Yang
Guangdong Yuejia Power Co., Ltd. Director May 2015 No
Xuanxing
Yang
Zhanjiang Electric Power Co., Ltd. Board chairman May 2015 No
Xuanxing
Yang Guangdong Yudean Zhanjiang Wind Power
Board chairman July 2016 No
Xuanxing Generation Co., Ltd.
Yang
Zhanjiang Zhongyue Energy Co., Ltd. Board chairman January 2015 No
Xuanxing
Yang Guangdong Yongan Natural Gas Thermal
Board chairman June 2016 No
Xuanxing Power Co., Ltd.
Yang Guangdong Huizhou Pinghai Power Vice Board
March 2017 No
Xuanxing Generation Plant Co., Ltd. chairman
Yang Guangdong Red Bay Power Generation Co.,
Director May 2014 No
Xuanxing Ltd.
Convenor of the
Yang
Shenzhen Guangqian Power Co., Ltd. Board of August 2011 No
Xuanxing
Supervisors
Liu Hui Guangdong Yudean Shipping Co., Ltd. Director June 2017 No
Maoming Zhenneng Thermoelectric Co., September
Liu Hui Director No
Ltd. 2010
Guangdong Yudean Humen Power
Liu Hui Director October 2017 No
Generation Co., Ltd.
Guangdong Yudean Holdings Western Vice Board
Liu Hui August 2014 No
Investment Co., Ltd. chairman
Guangdong Yudean Bohe Coal Power September
Liu Hui Director No
Co.,Ltd. 2010
Guangdong Yudean Huadu Natural Gas
Liu Hui Director July 2016 No
Thermal Power Co., Ltd.
Vice Board
Liu Hui Yunnan Yuntou Weixin Energy Co., Ltd. March 2017 No
chairman
Guangdong Guohua Yudean Taishan Power
Liu Hui Supervisor December 2018 No
Generation Co., Ltd.
Vice Board
Lui Hui Yunnan Yuntou Weixin Coal Co., Ltd. March 2017 No
chairman
Guangdong Electric Power Industry Fuel
Liu Wei Director December 2017 No
Co., Ltd.
November
Liu Wei Guangdong Yudean Finance Co., Ltd. Director No
2017
Guangdong Huizhou Natural Gas Power
Liu Wei Director October 2017 No
Generation Co., Ltd.
Liu Wei Guangdong Yudean Jinghai Power Director June 2017 No
87
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Drawing
Start date of End date of remuneration and
Name Other unit Title
office term office term allowance from of
other unit(Y/N)
Generation Co., Ltd.
Guangdong Red Bay Power Generation Co.,
Liu Wei Director December 2017 No
Ltd.
Guangdong Wind Power Generation Co., Novermber
Liu Wei Director No
Ltd. 2017
Guangdong Yudean Electric Power Sales
Liu WEI Director December 2017 No
Co., Ltd.
Guangdong Yudean property Insurance Co.,
Liu Wei Director April 2017 No
Ltd.
Convenor of the
Liu Wei Guangdong Yudean Shipping Co., Ltd. Board of May 2007 No
Supervisors
Liu Wei Shenzhen Capital Group Co., Ltd. Supervisor August 2016 No
Punishments to the current and leaving board directors, supervisors and senior managers during the report period
by securities regulators in the recent three years
□ Applicable √Not applicable
IV. Remuneration to directors, supervisors and senior executives
Decision-making procedures, basis for determination and actual payment of the remuneration to directors ,
supervisors and senior executives
Directors, supervisors and senior executives of the Company shall obtain labor remuneration and enjoy
corresponding employee benefits according to their position and the Company's wage system. Except such
remuneration and benefits, no other remuneration and fringe benefits shall be additionally provided；The
allowance for the independent directors and independent supervisors of the Company shall be paid according to
the standards approved by the shareholders' general meeting. At the end of the report period, the directors,
supervisors and senior executives received the actual remuneration before tax was total RMB 4.3232 million.
Remueration to directors, supervisors and senior executives in the reporting period
In RMB10,000
Total remuneration Remuneration actually
Name Positions Sex Age Office status received from the receivect at the end of
shareholder the reporting period
Wang Jin Board chairman Male 55 In Office 32.4 No
Rao Subo Director Male 54 In office Yes
Wen Lianhe Director Male 50 In office Yes
Wen Shufei Director Female 54 In office Yes
Chen Ze Director Male 49 In office Yes
Li Fangji Director Male 51 In office Yes
Director, General
Zheng Yunpeng Male 50 In office 32.4 No
Manager
Zhou Xian Director Male 45 In office Yes
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Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Chang Changlai Director Male 55 In office 65.82 No
Zhang Yueqiu Director Male 52 In Office Yes
Sha Qilin Independent director Male 58 In office 10.14 No
Shen Hongtao Independent director Female 51 In office 8 No
Wang Xi Independent director Male 48 In office 9.07 No
Ma Xiaoqian Independent director Male 54 In office 9.61 No
Yin Zhongyu Independent director Male 49 In office 7.46 No
Chairman of the
Zhang Dewei Male 57 In office Yes
Supervisory Committee
Li Baobing Supervisor Male 44 In office Yes
Zhu Weiping Independent Supervisor Male 61 In office 5.36 No
Jiang Jinsuo Independent Supervisor Male 50 In office 5.71 No
Lin Weifeng Employee supervisor Male 50 In office 25.51 No
Li Qing Employee supervisor Male 41 In office 31.64 No
Yang Xuanxing Deputy General manager Male 53 In office 61.82 No
Liu Hui Deputy General manager Female 53 In office 58.65 No
Deputy General manager,
Liu Wei Finance Manager, Board Male 39 In office 54.06 No
secretary
Huang Zhenhai Board chairman Male 56 Dimission Yes
Director, General
Yao Jiheng Male 53 Dimission 14.67 No
Manager
Zhao Li Supervisor Female 46 Dimission Yes
Total -- -- -- -- 432.32 --
Incentive equity to directors, supervisors or/and senior executives in the reporting period
□Applicable√Not applicable
V. Particulars about employees.
1. Staff jobs, education, job title number and proportion refer to the following pie chart:
Number of in-service staff of the parent company（person） 1,156
Number of in-service staff of the main subsidiaries（person） 5,579
Total number of the in-service staff（person） 6,735
Total number of staff receiving remuneration in the current
6,768
period（person）
The number of the parent company and the main subsidiary’s
1,475
retired staffs who need to bear the cost（person）
Professional
Classified according by Professions Number of persons（person）
Production 4,272
Sales 94
Technical 1,302
Financial 196
89
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Administrative 844
Other 27
Total 6,735
Education
Classified according by education background Number of persons（person）
Master 208
Universities 3,069
Colleges 1,933
Technical secondary school 347
High school and Below 1,178
Total 6,735
2. Remuneration policies
The company’s staff received the salaries and enjoyed the benefits according to the relevant provisions stipulated
in the company’s Salary Management Approach. The salary of the company’s staff (Except the management staff
who categorized in the annual salary system) basically constituted by the basic salary, post salary, performance
salary, allowance, overtime wages and special bounties and so on.
3.Training plan
The company formulated the Temporary Provisions for the Management of Staff Education and Training. The
staff training was adhered to the principle of learning integrated with application, learning by the needs and
stressing of practical effect, focused on the main contents of the post and the practical operation skills. The
training contents included the new staff orientation training, post training, continuing education, overseas training
and other trainings.
4. Outsourcing situation
□ Applicable √ Not applicable
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Guangdong Electric Power Development Co., Ltd. 2018Annual Report
IX. Administrative structure
I.Basic state of corporate governance
The company is strictly in accordance with “Company Law”, “Securities Law”, “Governance Standards of Listed
Company”, “Listing Rules of Stocks” and other laws and regulations requirements, constantly perfects the
corporate governance structure, standardizes corporate operations and further enhances the level of corporate
governance. The company has established the corporate “Articles of Association”, the rules of procedure of three
meetings’ operation, the working rules of the board of directors special committee, the working rules of the
general manager of company and working conditions and internal control system which basically covers all
aspects of the operation management like financial management, investment management, information disclosure,
associated trade, external guarantees and fund-raising. These systems are implemented better. During the
reporting period, the company has amended part of the clauses in “Inside Information Management System” based
on the original systems and the requirements of the CSRC.
Does there exist any difference in compliance with the corporate governance , the PRC Company Law and the
relevant provisions of CSRC,
□ Yes √ No
There exist no difference in compliance with the corporate governance , the PRC Company Law and the relevant
provisions of CSRC.
II. Independence and Completeness in business, personnel , assets, organization and finance
The company has implemented separation of operation,separation of human resource, separation of assets, separat
ion of organization and financial independence between controlling shareholder. And it has a complete business
and operations management ability. 1. Separation of operation: the Company is principally engaged in the
electricity generation and sales to Guangdong Electric Power Holding Co.(“GPHC”) directly. The Company has
subcontracted the subsidiary of Yudean, the holding company, to purchase the fuels, which is solely for the
purpose of better utilization of large-scale purchase and cost control. 2. Separation of human resource: the General
Manager and all his subordinates, Secretary to the Board of Directors, Financial Manager are paid by the
Company and take no position in the holding company. 3. Separation of assets: the Company has independent
production system, supporting system and other facilities. The Company owns its intangible assets such as
intellectual property rights, trademarks and non-patent technology; 4. Separation of organization: the Company
has established integrated operating institution of its own.5.. Financial independence: the Company has an
independent financial department and has established independent accounting system and financial management
system. It opened independent bank accounts for its own operation.
III. Competition situations of the industry
√Applicable □ Not Applicable
Name of the Property of
Problem Time Schedule of Works and
Controlling the Controlling Problems and Causes Countermeasures
Types Follow-up Program
Shareholders Shareholders
Guangdong Energy On January 3, 2018, the Our company will actively
Group was company disclosed fulfill the trusteeship and
established when Announcement on responsibilities according to
Guangdong Controlling Shareholders' the “Equity Custody
Guangdong Provincial Agreement” and participate in
Horizontal Commitment to Perform
Energy Group Local SASAC Government took the management and
competitions Related Matters (public
Co., Ltd. the lead in the decision-making and
notice No.: 2018-01); on
implementation of January 13, 2018, the inspection and supervision of
the “plant and company disclosed the custody target. The
network separation” Announcement of company will cooperate with
91
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
power system Related Transactions on Guangdong Energy Group to
reform in China, and the "Equity Custody push forward the defect
was separated and Agreement" signed with rectification of the underlying
formed from Guangdong Energy assets, study the rectification
Guangdong Group Co., Ltd. (public and solution to the defects and
Provincial Power notice No.: 2018-04). In obstacles in the relevant assets
Group Corporation. order to avoid that do not meet the listing
It is the largest and competition in the same conditions, promote relevant
most powerful industry and to fulfill the rectification work from the
power generation relevant horizontal aspects of improving project
enterprise in competition approval or approval
Guangdong commitments, Y procedures, clarifying land and
Province. GED is Guangdong Energy property ownership, enhancing
the only listed Group has signed the asset profitability, and
company under the Entrusted Management implementing legal
Guangdong Energy Agreement with the compliance. For custody assets
Group and is company, and all the that meet the listing conditions
engaged in power shareholders' rights other in the future, Guangdong
production business. than the ownership, Energy Group will, in
At present, income, and disposal accordance with the unified
Guangdong Energy rights of the company deployment of the Guangdong
Group still has some that temporarily fails to Provincial Party Committee
remaining power meet the listing and the provincial government
generation assets conditions in the and the overall requirements
that have not been company's custody area for the reform of state-owned
included in GED of the Guangdong Energy enterprises, actively create
temporarily. Group are escrowed to conditions for the injection into
Considering the our company. listed companies in accordance
situation of these with the status of the assets
power generation under custody, combined with
assets, it is enterprise restructuring,
temporarily not in structural adjustment
line with the listing arrangements, electricity
conditions, and it is market and capital market
difficult to solve conditions.
these problems in
the short term.
Therefore, there is a
certain degree of
horizontal
competition.
IV. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
Investor
Sessions Type participation Meeting Date Disclosure date Disclosure index
ratio
Name of Announcement :Announcement of
Resolution of the first Provisional
The first provisional Provisional
January January shareholders’ general meeting in 2018，
shareholders’ General shareholders’ 72.87%
29,2018 30,2018 Announcement No.:2018-09,
meeting in 2018 General Meeting
Published in China Securities Daily, Securit
ies Times and http//.www.cninfo.com.cn
Name of Announcement :Announcement of
The Second Resolution of the Second Provisional
Provisional
provisional shareholders’ general meeting in 2018，
shareholders’ 72.78% April 9,2018 April 10,2018
shareholders’ General Announcement No.:2018-21,
General Meeting
meeting in 2018 Published in China Securities Daily, Securit
ies Times and http//.www.cninfo.com.cn
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Guangdong Electric Power Development Co., Ltd. 2018Annual Report
Name of Announcement :Announcement of
Resolution of 2017 shareholders’ general
2017 Shareholders’ Annual General
72.80% June 11,2018 June 12,2018 meeting ，Announcement No.:2018-33.
general meeting Meeting
Published in China Securities Daily, Securit
ies Times and http//.www.cninfo.com.cn
Name of Announcement :Announcement of
Resolution of the Third Provisional
The Third provisional Provisional
shareholders’ general meeting in 2018，
shareholders’ General shareholders’ 72.65% June 28,2018 June 29,2018
Announcement No.:2018-52,
meeting in 2018 General Meeting
Published in China Securities Daily, Securit
ies Times and http//.www.cninfo.com.cn
Name of Announcement :Announcement of
The Fourth Resolution of the Fourth Provisional
Provisional
provisional October October shareholders’ general meeting in 2018，
shareholders’ 72.62%
shareholders’ General 11,2018 12,2018 Announcement No.:2018-52,
General Meeting
meeting in 2018 Published in China Securities Daily, Securit
ies Times and http//.www.cninfo.com.cn
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √Not applicable
V. Responsibility performance of independent directors in report period
1. The attending of independent directors to board meetings and shareholders’ general meeting
The attending of independent directors
Number of Failure to personally
Number of Number of
Board meetings Number of attend board Times for
Independent meetings attendances Number of
necessary to be spot meetings attending the
Directors attended by by absence
attended in the attendances successively twice AGM
Communication representative
reporting period (Yes/No)
Sha Qilin 7 5 2 0 0 No 5
Shen Hongtao 7 3 2 2 0 Yes 4
Wang Xi 7 5 2 0 0 No 5
Ma Xiaoqian 7 5 2 0 0 No 5
Yin Zhongyu 7 5 2 0 0 No 2
Notes to failure to personally attend Board Meetings Successively Twice
During the reporting period, independent director Shen Hongtao was unable to attend the fourth meeting of the
ninth board of directors and the fifth meeting of the ninth board of directors in person due to business. He
entrusted independent director Sha Linqi to attend all the above meetings and exercise voting rights. Independent
Director Shen Hongtao carefully reviewed the meeting materials and performed his duties independently and
impartially before the board meeting. According to the power of attorney issued by him, there is no objection to
all the topics of the meetings.
2.Objection of independent directors on some relevant issues
Objection of independent directors on some relevant issues
□ Yes √No
Independent directors proposed no objection against the relevant matters in the reporting period.
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Guangdong Electric Power Development Co., Ltd. 2018Annual Report
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.
Nil
VI. Duty Performance of Special Committees under the Board of Directors in the Reporting Period
The Ninth board of directors of the company comprises committee of strategy, audit, budget, nomination and
remuneration and appraisal. Each professional committee has established their corresponding working rules and
put forward related professional opinions and suggestions according to their respective duties to the company
operating development, which promoted the standardized operation of the company. In 2018, the duty fulfillment
conditions of each special committee of the company's board of directors are as follows:
1. According to relevant regulations of China Securities Regulatory Commission and Shenzhen Stock Exchange,
the Audit Committee of the Board of Directors of the Company conscientiously has performed its duties and
participated in the annual audit, internal control supervision, risk management, semi-annual report review and
major accounting treatment review of the Company. During the reporting period, the Audit Committee of the
ninth Board of Directors held a total of 4 meetings to review and form review opinions on the Company's 2017
Annual Report, 2017 Internal Control Evaluation Report, 2017 Comprehensive Risk Management Report, 2018
Audit Institution Hiring, Provision for Impairment of Assets, 2018 Semi-Annual Report, Adjustment of
Depreciation Years of Fixed Assets in Shajiao A Power Plant and other proposals, which played an important role
in the effective decision-making of the Board of Directors.
2. The Board of Directors' Remuneration and Appraisal Committee reviewed the remuneration of the directors,
supervisors and senior management personnel disclosed in this report, and considered that the determination of the
remuneration standard and the granting of annual remuneration can be combined with the performance of the
respective positions, which is consistent with the company’s remuneration management regulations; the
remuneration of directors, supervisors and senior management personnel disclosed in the annual report is true.
3. The budget committee of the Ninth board held its first meeting on April 9, 2018 , reviewed and adopted the
“Proposal on Illustration of Budget Implementation in 2017 and Budget Preparation in 2018”.
4. On June 1, 2018, the Nomination Committee of the Board of Directors deliberated the Proposal on
Recommending Zheng Yunpeng and Li Fangji as Company Director Candidates and the Proposal on
Recommending Zheng Yunpeng as Company General Manager by means of communication voting, and carefully
examined the qualifications of relevant candidates.
VII. Work of the supervisory Committee
Did the supervisory Committee find any risk existing in performing the supervision activities in the reporting
period
□Yes √No
The supervisory Committee has no objection against any matters under supervision in the reporting period
VIII. Assessment and incentive Mechanism for Senior executives
Performance evaluation and incentive system will be employed by senior managers on the basis of enterprise
salary management system.
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Guangdong Electric Power Development Co., Ltd. 2018Annual Report
IX. Internal control situations
1.Specific situations on major defects of internal control discovered during report period
□ Yes √ No
2.Self-evaluation report on internal control
Disclosure date of appraisal report on internal control April 12,2019
Juchao Website:（http://www.cninfo.com.cn）, Selfevaluation report of
Disclosure index of appraisal report on internal control
internal control in 2018
Proportion of total unit assets covered by appraisal in
the total assets of the consolidated financial statements 95 %
of the company
Proportion of total unit incomes covered by appraisal in
the total business incomes of the consolidated financial 99 %
statements of the company
Standards of Defects Evaluation
Category Financial Report Non-financial Report
Qualitative criteria of evaluation towards inner control deficiency of
financial report made by company are as follows: Ⅰ, the inner
Qualitative criteria of evaluation
control of financial report should be considered as “significant
towards inner control deficiency of
deficiency” if the following circumstances (including but not limited
non-financial report made by
to) occurred: ① the ineffective environmental control; ②
company are as follows: ①
irregularities appearing between company directors, supervisors and
significant deficiency means one or
senior executives; ③ serious mistakes in the financial statements of
more combinations of control
the current period found by external audit but not the inner control in
deficiency which may result in
the process of operating; ④ ineffective supervision of inner control
seriously deviating from control
from directorate and inner audit institution. Ⅱ, the inner control of
goals. ② serious deficiency means
financial report should be considered as “serious deficiency” if the
Qualitative criteria one or more combinations of
following circumstances occurred: ① accounting policy chosen and
control deficiency whose severity
applied is not based on the GAAP; ② anti-irregularity procedure
and financial result are less than
and control measures are not established; ③ very few relative
those of significant deficiency with
control measures are established or implemented in terms of the
possibility of deviating company
accounting treatment related to unconventional or special transaction;
from its control goals. ③ common
④ one or more deficiencies exist in the control process of final
deficiency means other control
financial report and the authenticity, accuracy and integrity of
deficiencies apart from significant
establishment can not be assured reasonably. Ⅲ common
and serious deficiencies.
deficiency means, apart from the above “significant deficiency” and
“serious deficiency”, other deficiencies exist in the inner control
process.
A quantitative criterion regards operating receipt and gross value of
assets as its yard stick. ① inner control deficiency may lead to loss
related to profit statement, which is measured by operating receipt. ①the significant deficiency means
The amount of misstatement in financial report resulted from the that the direct property loss is
control deficiency or its combination is less than 0.5 percent of the between 50 million yuan .(2) the
operating receipt, which could be considered as the common significant deficiency means hat the
Quantitative standard deficiency. That would be considered as serious deficiency if the direct property loss is between 30
amount of misstatement in financial report resulted from the control million yuan (including 30 million
deficiency or its combination is more than 0.5 percent but less than 1 yuan) ; the serious deficiency means
percent of the operating receipt. And that would be regarded as that the direct property loss is
significant deficiency if that is more than 1 percent of the operating between 30 million.
receipt. ② inner control deficiency may lead to loss related to assets
management, which is measured by total assets. The amount of
95
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
misstatement in financial report resulted from the control deficiency
or its combination is less than 0.5 percent of the total assets, which
could be considered as the common deficiency. That would be
considered as serious deficiency if the amount of misstatement in
financial report resulted from the control deficiency or its
combination is more than 0.5 percent but less than 1 percent of the
total assets. And that would be regarded as significant deficiency if
that is more than 1 percent of the total assets.
Number of major
defects in financial 0
reporting（a）
Number of major
defects in non financial 0
reporting (a)
Number of important
defects in financial 0
reporting（a）
Number of important
defects in non financial 0
reporting（a）
X. Internal Control audit report
√ Applicable □Not applicable
Review opinions in the internal control audit report
We believe that Guangdong Electric Power Development Co., Ltd. has maintained effective internal control over financial reporting
in all material respects as of 31 December 2018 as per the Basic Rules for Enterprise Internal Control and relevant regulations.
Disclosure date of audit report
Disclosure
of internal control (full-text)
Index of audit report of
April 12,2019
internal control (full-text)
Internal audit report’s opinion Juchao Website: （http://www.cninfo.com.cn）2018 Audit report of internal control
Type of audit report on internal
Unqualified auditor’s report
control
Whether there is significant
No
defectin non-financial report
Has the CPAs issued a 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 of
Directors
√Yes □No
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Guangdong Electric Power Development Co., Ltd. 2018Annual Report
X. Corporate Bond
Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and
not yet due or due butnot folly cashed on the approval date of annual report
Yes
1.Basic information of corporate bonds
Bond balance
Bond short Interest
Bond name Bond code Issue day Due day (RMB Servicing way
name rate
10,000)
Using simple interest rate on a
2012 Corporate
yearly basis, regardless of
bonds of
compound interest. Due
Guangdong 12 Yudean March March
112162.SZ 4,030.65 4.95% payments once a year, maturing
Electric Power Bond 18,2013 17,2020
debt at a time. In the final phase,
Development
interest is paid together with the
Co., Ltd..
principal redemption.
Corporate bonds listed or
Shenzhen Stock Exchange
trading places
Investor Proper Arrangement Not applicable
1. Status of bond redemption
According to the “Prospectus for Public Offering 2012 Corporate Bond by Guangdong Electric
Power Development Co., Ltd.” (hereinafter referred to as the “Prospectus”), the company released
“the First Suggestive Announcement of Guangdong Electric Power Development Co., Ltd on the
Coupon Rate of ‘12 Yuedian Debt’ Will Not Raised and on the Bondholders' Repurchase
Implementation Measures” (Announcement No.: 2018-07)”, “the Second Suggestive
Announcement of Guangdong Electric Power Development Co., Ltd on the Coupon Rate of ‘12
Yuedian Debt’ Will Not Raised and on the Bondholders' Repurchase Implementation Measures”
(Announcement No.: 2018-08)”, “the Third Suggestive Announcement of Guangdong Electric
Power Development Co., Ltd on the Coupon Rate of ‘12 Yuedian Debt’ Will Not Raised and on
the Bondholders' Repurchase Implementation Measures” (Announcement No.: 2018-10)”
respectively on January 29, 2018, January 30, 2018 and January 31, 2018. The bondholders have
During the reporting period,
the right to choose to sell all or part of the “12 Yuedian Debt” held to the company in full or in
interest payment situation of the
part at par value during the investor's put-back declaration period, and the put-back price is
company bonds
RMB100/sheet (excluding interest). The put-back declaration date is from January 29, 2018 to
January 31, 2018. According to the bond put-back declaration data provided by China Securities
Depository and Clearing Co., Ltd. Shenzhen Branch, the put-back quantity of “12 Yuedian Debt”
was 11,596,935 sheets, and the put-back amount was RMB 1,217,087,933.25 (including interest),
and the remaining custody quantity was 403,065 sheets. On March 16, 2018, the company paid the
principal and interest of some of the bonds of this “12 Yuedian Debt” back to the designated bank
account of China Securities Depository and Clearing Co., Ltd. Shenzhen Branch in full amount,
and paid to the investor’s fund account on March 19, 2018.
2. Status of bond interest payment
On March 19, 2018, the company paid the bond interest for the current year to all the current
bondholders who have registered in China Securities Depository and Clearing Co., Ltd. Shenzhen
Branch by the closing of Shenzhen Stock Exchange on the afternoon of March 16, 2018.
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Guangdong Electric Power Development Co., Ltd. 2018Annual Report
The term of the current bonds is 7 years, attaching the option that the issuer will redeem at the end
of the fifth year, the option that the issuer raises the coupon rate and the option that the investors
will put back.
1. On January 29, 2018, the company disclosed the “Announcement of Guangdong Power
Development Co., Ltd. on Abandoning the Exercise of the Issuer’s Redemption Option of “12
Yuedian Debt” (Announcement No.: 2018-06). March 19, 2018 is the 5th interest-bearing annual
interest payment date of “12 Yuedian Debt”. According to the “Prospectus”, the company has the
right to decide whether to exercise the issuer’s redemption option on the 30th transaction date
before the interest payment date of the 5th interest-bearing year of the current bond. The company
decided to abandon the exercise of the "12 Yuedian Debt" issuer's redemption option, that is, "12
Yuedian Debt" continued to exist within the duration.
2. The company released “the First Suggestive Announcement of Guangdong Electric Power
Development Co., Ltd on the Coupon Rate of ‘12 Yuedian Debt’ Will Not Raised and on the
Bondholders' Repurchase Implementation Measures” (Announcement No.: 2018-07)”, “the
Second Suggestive Announcement of Guangdong Electric Power Development Co., Ltd on the
If the corporate bonds attached Coupon Rate of ‘12 Yuedian Debt’ Will Not Raised and on the Bondholders' Repurchase
to special clauses to the issuer Implementation Measures” (Announcement No.: 2018-08)”, “the Third Suggestive Announcement
or the investors such as option of Guangdong Electric Power Development Co., Ltd on the Coupon Rate of ‘12 Yuedian Debt’
clause and exchangeable clause, Will Not Raised and on the Bondholders' Repurchase Implementation Measures” (Announcement
please specify the No.: 2018-10)” respectively on January 29, 2018, January 30, 2018 and January 31, 2018.
implementation status of the According to the “Prospectus”, the issuer has the right to decide to raise the coupon rate for the
corresponding clauses. (When next two years at the end of the fifth year of the “12 Yuedian Debt”. In January 2018, the
applicable) company's current bond has a coupon rate of 4.95% for the first five years of the duration of the
bond. At the end of the fifth year of the bond's duration, the company chose not to raise the
coupon rate, which is the 2-year coupon rate after the current bond's duration will still remain at
4.95%. According to the "Prospectus", the bondholders can declare the put-back in a specified
manner within 3 trading days from the date of the issuer's announcement on whether to raise the
coupon rate and the increase rate of the current bond. The “12 Yuedian Debt” put-back declaration
date is from January 29, 2018 to January 31, 2018.
3. On March 17, 2018, the company disclosed the “Announcement of Guangdong Power
Development Co., Ltd. on the Put-back Results of the Corporate Bonds ‘12 Yuedian Debt’”
(Announcement No.: 2018-14). According to the bond put-back declaration data provided by
China Securities Depository and Clearing Co., Ltd. Shenzhen Branch, the put-back quantity of “12
Yuedian Debt” was 11,596,935 sheets, and the put-back amount was RMB 1,217,087,933.25
(including interest), and the remaining custody quantity was 403,065 sheets. On March 16, 2018,
the company paid the principal and interest of some of the bonds of this “12 Yuedian Debt” back
to the designated bank account of China Securities Depository and Clearing Co., Ltd. Shenzhen
Branch in full amount, and paid to the investor’s fund account on March 19, 2018.
2. Bond trustee and the credit rating agency information
Bond trustee：
22/F, CITIC Securities Building ,
CITIC Securities Song Yilan,
Name Office No.48. Liangmaqiao Road, Contact Tel 010-60838888
Co., Ltd. Yang Xin
Chaoyang District , Beijing
The credit rating agencies which follow and rate the corporate bond during the reporting period
8/F, Anji Building, No.760, Tibet South Road,
Name CCXR Office address
Huangpu District, Shanghai.
During the report period, the bond trustee,
credit rating agency employed by the
company that have changed, reasons for Not applicable
the change,performing procedures, relevant
influence on investors,etc(If applicable).
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Guangdong Electric Power Development Co., Ltd. 2018Annual Report
3. The usage of corporate bonds to raise money
According to the relevant contents in the Prospectus of the Issuance of Bonds
announced on March 14, 2013, the company planned to use RMB 820 million of the
The usage and performance of raised funds
raised funds to repay the loans, thus to adjust the debt structure; the remaining RMB
from Corporate bonds
380 million of the raised funds planned for supplementing the company’s liquidity, so
as to improve the company’s funds status.
At the end of balance (RMB 10,000) 0
The net amount of the funds raised by the bonds had been remitted to the company’s
designated bank account on March 20, 2013, of which the amount of RMB 820 million
Special fund raising account operation of the raised funds had been used for repaying the loans, so as to adjust the debt
structure; the remaining RMB 380 million of the raised funds used for supplementing
the company’s liquidity, so as to improve the company’s funds status.
Whether the usage of the raised money
corresponding to the purposes of promise, Yes
use plans, and other agreement
4.Corporate bond rating information
On June 11, 2018, CCXR traced and analyzed the credit status of the company and the company’s bonds of
“12-Yudean Bonds”, maintained the credit rating of AAA for the main body of the company, with a stable outlook;
maintained the credit rating of AAA for the corporate bonds.(The rating results were disclosed on the website:
http://www.ccxr.com.cn/, with the title of Tracking and Rating Report for the 2012-Corpoprate Bonds of
Guangdong Electric Power Development Co., Ltd(2018).
5.Corporate bond credit mechanism, the debt repayment plans and other security measures
(1)The credit-raising mechanism: No guarantee of the company’s bonds. After the comprehensive assessment by
CCXR, the credit rating of the main body of the company is AAA with a stable outlook, and the credit rating of
the corporate bonds is AAA.
(2)The repayment plan: The interest of the bonds commenced from the date of March 18, 2013, and the interest of
the bonds shall be paid once each year within the duration of the bonds after the commencement date of the
interest. The date of March 18 of each year in the period from 2014 to 2020 shall be the interest paying day for
paying the recent full year’s bond interests (If it is not a working day, the payment day will be postponed to the
first working day after the day).
During the reporting period, some investors exercised the put-back option. The put-back quantity of “12 Yudean
Debt” was 11,596,935 sheets, and the put-back amount was RMB 1,217,087,933.25 (including interest). On
March 16, 2018, the company paid the principal and interest of some of the bonds of this “12 Yuedian Debt” back
to the designated bank account of China Securities Depository and Clearing Co., Ltd. Shenzhen Branch in full
amount, and paid to the investor’s fund account on March 16, 2018.
The quantity of remaining bonds is 403,065 sheets, and the maturity date is March 18, 2020. The principal and the
final interest will be paid at the expire date. and the corresponding principal and the last full year’s interest will be
repaid.
(3) Safeguard measures for the repayment: in order to fully and effectively safeguard the interests of the
bondholders, the company had made a series of work plans for the full repayment of the bonds that can be
implemented on time, including the designated department and personnel, arrangement of repaying the bonds,
establishment of the management measures, doing good organization and coordination, strengthening the
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Guangdong Electric Power Development Co., Ltd. 2018Annual Report
information disclosure and so on, strived to form a set of safeguard measures for ensuing the repayment of the
bonds.
6.During the reporting period the bondholder meeting
During the reporting period, the company did not hold bondholders meeting.
7.During the reporting period the bond trustee perform his duties
The company’s bond trustee- CITIC Securities Co., Ltd safeguarded the legal rights of the bond holders with in
accordance with the law and performed the obligations stipulated in the Prospectus of the Issuance of Bonds and
other publicly disclosed documents, hence continuously followed up and acquainted the relevant information of
the company during the entrusting period, issued and provided the regular report of the bond trustee, with in
accordance with the company’s information being followed up and acquainted.
During the reporting period, CITIC Securities Co., Ltd issued the Report of the 2012 Corporate Bonds Trustee for
Guangdong Electric Power Development Co., Ltd(year of 2017) on May 28, 2018, and the report was disclosed on
the cninf website on May 30, 2018 by the company.
8.During the reporting period, the company's major accounting data and financial indicators for last 2 years
In RMB10,000
Items 2018 2017 At the same time rate of change
Earnings before interest, tax,
599,620.49 299,991.27 99.88%
depreciation and amortization
Current ratio 62.89% 60.09% 2.80%
Debt ratio 57.02% 58.17% -1.15%
Quick ratio 47.35% 41.95% 5.40%
EBITDA/Total debts 14.34% 7.47% 6.87%
Interest coverage ratio 1.86 1.99 -6.53%
Cash interest coverage ratio 5.31 3.9 36.15%
EBITDA interest coverage ratio 4.13 2.05 101.46%
Loans repayment rate 100 % 100 % 0%
Interest payment rate 100 % 100 % 0%
The material reasons for the changed ratio of the accounting data or financial indicators exceeds 30% over the last
year
√ Applicable □Not applicable
The extension of the period for the payment of coal-fired funds in the current period has led to an increase in net
cash flow and an increase in the multiple of cash interest protection in current operating activities.
9. Information about fulfillment of the stipulations or commitments specified in the Prospectus of the issuance of
the bonds during the reporting period
1.On June 6, 2018, the company issued 500,000,000 yuan of phase I ultra short-term financing bonds, with a term
of 180 days. During the reporting period, the payment of the principal and interest was 510,479,452 yuan.
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Guangdong Electric Power Development Co., Ltd. 2018Annual Report
2.On August 24, 2018, the company issued 600,000,000 yuan of phase II ultra short-term financing bonds, with a
term of 180 days. During the reporting period, the payment of the principal and interest was 0 yuan.
3.On November 28, 2018, the company issued 500,000,000 yuan of phase III ultra short-term financing bonds,
with a term of 28 days. During the reporting period, the payment of the principal and interest was 500,978,082
yuan. On December 27, 2018, the company issued 500,000,000 yuan of phase I ultra short-term financing bonds,
with a term of 152 days. During the reporting period, the payment of the principal and interest was 0 yuan
4. On March 18, 2013, the Company publicly issued 12 Yudean bonds to the public with a nominal amount of
RMB 1,200,000,000 and a term of 5+2 years. It is a kind of real-name book-entry corporate bonds. The interest
paid back during the reporting period was RMB 59,400,000.
5. On August 27, 2018, the Company issued the first issue of 2018 medium-term notes in the inter-bank market,
with a face value of RMB 800,000,000 and a term of 3 years. The interest to be repaid during the reporting period
is: 0 yuan.
6. The controlling subsidiary of the Company, Guangdong Huizhou Pinghai Power Plant Co., Ltd., publicly issued
“16 Pinghai 01” to the public on September 26, 2016. It was a real-name book-entry corporate bond (“16 Pinghai
01”) with a nominal amount of RMB 700,000,000 and a term of 5 years. The interest paid back during the
reporting period was RMB 21,700,000.
10.Information about the bank credit obtaining and use, as well as repayment of the bank loans during the
reporting period
In ther report period, the company signed an unconditional available bank amount limit of about RMB 30.436
billion, of which the used amount limit was RMB 9.801 billion, thus the remaining available bank amount limit
was about RMB 20.635 billion. In this year, the company repaid bank loans of about RMB17.445 billion, and the
balance of bank loans was RMB 28.074 billion.
11. Information about fulfillment of the stipulations or commitments specified in the Prospectus of the issuance of
the bonds during the reporting period
The company had committed to pay the principal and interests to the bondholders according to the stipulations of
the prospectus of “Yudean Bonds” issuance. During the reporting period, the company strictly fulfilled the above
commitments.
During the reporting period, the Company strictly fulfilled the above-mentioned commitments and paid investors
in full the principal of some bonds sold back of "12 Yudean Bonds" and the bond interest of this year.
12.Major events occurring in the period of report
Nil
13.Whether there is a guarantor corporate bonds
□ Yes √No
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Guangdong Electric Power Development Co., Ltd. 2018Annual Report
XI. Financial Report
I. Audit report
Type of audit opinion Unqualified audit opinion
Date for signing the auditor’s report April 11,2019
Name of audit firm PWC Certified Public Accountants (special general partnership)
Auditing file No. PWC ZTSZD No.10033(2019)
Certified public accountant's name Wang Bin, Guo Biyu
102
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
FINANCIAL STATEMENTS AND
AUDITOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2018
[English translation for reference only. Should there be any inconsistency between the
Chinese and English versions, the Chinese version shall prevail.]
103
Guangdong Electric Power Development Co., Ltd.
Financial Statements and Auditor's Report
For the Year Ended 31 December 2018
[English translation for reference only]
Page
Auditor’s Report 105 - 110
Financial statements for the year ended 31 December 2018
Consolidated and company balance sheets 111 - 114
Consolidated and company income statements 115 -116
Consolidated and company cash flow statements 117 -119
Consolidated statement of changes in owners’ equity 120 - 121
Company statement of changes in owners’ equity 122 - 123
Notes to the financial statements 124 - 255
Supplementary Information 256 - 258
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Auditor’s Report
PwC ZT Shen Zi (2019) No. 10033
(Page 1 of 6)
To all shareholders of Guangdong Electric Power Development Co., Ltd.,
Opinion
What we have audited
We have audited the accompanying financial statements of Guangdong Electric Power
Development Co., Ltd. (hereinafter “Guangdong Electric Power”), which comprise:
the consolidated and company balance sheets as at 31 December 2018;
the consolidated and company income statements for the year then ended;
the consolidated and company cash flow statements for the year then ended;
the consolidated and company statements of changes 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, the
consolidated and company’s financial position of Guangdong Electric Power as at 31 December
2018, and their financial performance and cash flows for the year then ended in accordance with
the requirements of the Accounting Standards for Business Enterprises (“CASs”).
Basis for Opinion
We conducted our audit in accordance with China Standards on Auditing (“CSAs”). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for
the Audit of the Financial Statements section of our report. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion.
We are independent of Guangdong Electric Power in accordance with the Code of Ethics for
Professional Accountants of the Chinese Institute of Certified Public Accountants (“CICPA Code”),
and we have fulfilled our other ethical responsibilities in accordance with the CICPA Code.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the financial statements of the current period. These matters were
addressed in the context of our audit of the financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.
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(Page 2 of 6)
Key Audit Matters (Cont’d)
Key audit matters identified in our audit are summarised as follows:
Impairment of power related fixed assets, intangible assets, construction in progress and
goodwill
Recognition of deferred tax assets related to tax losses
Key Audit Matters How our audit addressed the Key Audit
Matter
(1) Impairment of power related fixed assets, 1. Based on our understanding of the
intangible assets, construction in progress and businesses engaged by Guangdong Electric
goodwill Power and its subsidiaries (“Yudean Group”)
and the requirements of relevant accounting
Please refer to Note 2(29)(a), 4(11), (12), (13) and standards, we evaluated the asset groups
(14) to the financial statements. identified by management and how assets
are allocated to each asset group;
As Shajiao A Power Plant (“Shajiao A”), a branch
of Guangdong Electric Power, is to be shut down 2. We understood the competency, professional
and retired in advance and certain subsidiaries quality and objectivity of the independent
are suffering from continuous operation loss, professional asset appraisal agency engaged,
management considers that there are some and assessed how management made use of
indications of impairment of the asset groups the agency’s work in the impairment
related to generator units of the aforesaid branch assessment on the assets and asset groups;
and subsidiaries (basically including fixed assets,
intangible assets and construction in progress) 3. Based on our understanding of the
and goodwill. businesses of Yudean Group and the
industry in which Yudean Group operates,
An independent professional asset appraisal we compared with and analysed the
agency was engaged as an expert to conduct the assumptions adopted by management,
impairment assessment on the assets and asset especially the expected disposal price,
groups. expected disposal costs, future sales amount
of electricity, on-grid electricity price, price
On 31 December 2018, management conducted of coal used in power generation, capital
impairment tests for the aforesaid Shajiao A and expenditure and discount rates used in
subsidiaries, and made a provision for calculation; we evaluated the reasonableness
impairment at the difference between the of the assumptions on fair value less disposal
recoverable amount and the carrying amount of costs and the present value of the estimated
the asset groups related to generator units. The future cash flows;
recoverable amount of the asset groups was the
higher of the asset groups’ fair value less disposal 4. We analysed the basis for the adoption of the
costs and the present value of the estimated cash flows which covered more than 5 years,
future cash flows. The calculations of the fair and assessed the reasonableness therein;
value less disposal costs and the present value of
the estimated future cash flows involve 5. We involve our internal experts in assessing
management’s significant judgements, especially the appropriateness of the discount rate
estimates on the expected disposal price, applied in the calculation of the present
expected disposal costs, future sales amount of value of future cash flows and whether it
electricity, on-grid electricity price, price of coal falls within the range applied by other
used in power generation, capital expenditure companies in industry. We also considered
and discount rates used in calculation. the impact of capital cost of related asset
group on discount rate;
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Key Audit Matters (Cont’d)
Key Audit Matters (Cont’d) How our audit addressed the Key Audit
Matter (Cont’d)
(1) Impairment of power related fixed assets, 6. We checked accuracy of the input data and
intangible assets, construction in progress and formulas used in the calculation of the
goodwill (Cont’d) present value of estimated future cash flows
and evaluated the mathematic accuracy;
As the carrying amounts of fixed assets,
intangible assets, construction in progress and 7. We conducted sensitivity analysis on
goodwill with indication of impairment are discount rate and other key assumptions
significant to the consolidated financial applied by management, evaluating how the
statements of Guangdong Electric Power, and changes in key assumptions (by individual or
the impairment test involves management’s grouping) will result in different results to
significant estimates and judgements, further evaluate if there’s indication that
impairment of power related fixed assets, management is partial in selecting
intangible assets, construction in progress and parameters of key assumptions.
goodwill is identified as a key audit matter.
We found that management’s assumptions
on impairment of fixed assets, intangible
assets, construction in progress and
goodwill were supported by appropriate
evidences.
(2) Recognition of deferred tax assets related to 1. Based on our understanding of the
tax losses businesses of Yudean Group and the
industry in which Yudean Group operates,
Please refer to Note 2(29)(d) and Note 4(16) to we assessed the reasonableness of the key
the financial statements. assumptions adopted for the calculation of
the estimated taxable income in future
As at 31 December 2018, the deferred tax assets periods, such as future sales amount of
recognised by Guangdong Electric Power for the electricity, on-grid electricity price, price of
tax losses from Guangdong Electric Power and coal used in power generation and other
individual subsidiaries amounted to RMB operating cost;
254,800,254.
2. With regard to the project of new generator
In management’s judgement, it is probable that units covered in the financial forecast, we
Guangdong Electric Power and relevant understood the current progress of the
subsidiaries have sufficient taxable income to project and discussed with management
utilize the losses before expiry. The financial about the reasonableness of the assumption
forecast for future periods involves on the production plan during the
management’s significant judgements including forecasting period;
future sales amount of electricity, on-grid
electricity price, price of coal used in power
3. We checked accuracy of the input data and
generation and other operating cost.
formulas used in the calculation of the
financial forecast for future periods and
evaluated the mathematic accuracy;
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Key Audit Matters (Cont’d)
Key Audit Matters (Cont’d) How our audit addressed the Key Audit
Matter (Cont’d)
(2) Recognition of deferred tax assets related to 4. We compared the taxable income estimated
tax losses (Cont’d) by management last year with the actual
result for the year to assess the historical
accuracy of management’s forecast;
As the deferred tax assets related to deductible
losses were significant to the consolidated 5. We conducted sensitivity analysis on key
financial statements of Guangdong Electric assumptions applied by management,
Power, and the financial forecast for future evaluating how the changes in key
periods involves management’s significant assumptions (by individual or grouping) will
estimates and judgements, the recognition of the result in different results to further evaluate
deferred tax assets related to tax losses was if there’s indication that management is
identified as a key audit matter. partial in selecting parameters of key
assumptions.
We found that management’s assumptions on
recognition of the deferred tax assets related to
deductible losses were supported by appropriate
evidence.
Other Information
Management of Guangdong Electric Power is responsible for the other information. The other
information comprises all of the information included in 2018 annual report of Guangdong Electric
Power other than the financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the audit or otherwise appears to be
materially misstated. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have nothing to
report in this regard.
Responsibilities of Management and the Audit Committee for the Financial
Statements
Management of Guangdong Electric Power is responsible for the preparation and fair presentation
of these financial statements in accordance with the CASs, and for such internal control as
management determines is necessary to enable the preparation of financial statements that are
free from material misstatement, whether due to fraud or error.
In preparing these financial statements, management is responsible for assessing Guangdong
Electric Power’s ability to continue as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless management either intends
to liquidate Guangdong Electric Power or to cease operations, or has no realistic alternative but to
do so.
The Audit Committee is responsible for overseeing Guangdong 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 free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with CSAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with CSAs, we exercise professional judgement and maintain
professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
Conclude on the appropriateness 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 or conditions that may cast significant doubt on Guangdong Electric Power’s
ability to continue as a going concern. If we conclude that a material uncertainty exists, we
are required to draw attention in our auditor’s report to the related disclosures in these
financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause Guangdong Electric Power to cease to
continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including
the disclosures, and whether the financial statements represent the underlying transactions
and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within Guangdong Electric Power to express an opinion on the
consolidated financial statements. We are responsible for the direction, supervision and
performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with the Audit Committee regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
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PwC ZT Shen Zi (2019) No. 10033
(Page 6 of 6)
Auditor’s Responsibilities for the Audit of the Financial Statements (Cont’d)
We also provide the Audit Committee with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable,
related safeguards.
From the matters communicated with the Audit Committee, we determine those matters that were
of most significance in the audit of the financial statements of the current period and are therefore
the key audit matters. We describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of
such communication.
PricewaterhouseCoopers Zhong Tian LLP Signing CPA
________________________
Wang Bin
Shanghai, the People’s Republic of China (Engagement Partner)
11 April 2019 Signing CPA
_______________________
Guo Biyu
110
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
31 December 31 December 1 January
ASSETS Note 2018 2017 2017
(Restated) (Restated)
Current assets
Cash at bank and on
hand 4(1) 5,574,382,892 4,996,580,490 5,184,873,650
Notes and accounts
receivables 4(2) 3,358,331,949 2,826,237,259 2,776,061,909
Advances to suppliers 4(3) 906,261,046 826,786,279 1,064,822,122
Other receivables 4(4) 222,976,826 223,831,764 150,181,074
Inventories 4(5) 1,481,817,270 1,527,634,773 1,513,153,241
Current portion of
non-current assets - 29,563,053 -
Other current assets 4(6) 617,853,476 1,137,582,469 882,055,591
Total current assets 12,161,623,459 11,568,216,087 11,571,147,587
Non-current assets
Available-for-sale
financial assets 4(7) 1,565,806,331 1,243,633,985 1,279,387,994
Long-term receivables 4(8) 89,762,071 84,358,065 136,075,412
Long-term equity
investments 4(9) 6,395,134,754 5,801,006,412 5,432,637,750
Investment properties 4(10) 10,810,722 8,296,639 8,932,237
Fixed assets 4(11) 41,157,594,848 41,010,868,549 41,818,989,750
Construction in progress 4(12) 7,740,754,343 8,503,556,373 6,344,790,617
Intangible assets 4(13) 1,863,588,771 1,665,784,490 1,707,490,221
Goodwill 4(14) 2,449,886 27,486,780 27,486,780
Long-term prepaid
expenses 4(15) 22,089,179 27,007,371 34,611,712
Deferred tax assets 4(16) 448,431,684 372,553,039 303,929,269
Other non-current assets 4(17) 1,871,616,258 694,647,533 2,011,524,431
Total non-current assets 61,168,038,847 59,439,199,236 59,105,856,173
TOTAL ASSETS 73,329,662,306 71,007,415,323 70,677,003,760
111
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
CONSOLIDATED BALANCE SHEET (CONT’D)
AS AT 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
LIABILITIES AND OWNERS' 31 December 31 December
EQUITY Note 2018 2017 1 January 2017
(Restated) (Restated)
Current liabilities
Short-term borrowings 4(19) 7,526,000,000 9,270,000,000 5,758,860,000
Notes and accounts
payables 4(20) 3,137,761,522 2,516,639,061 4,497,731,283
Advances from customers 4(21) 343,894 1,938,223 12,456,360
Employee benefits payable 4(22) 235,741,179 157,738,628 144,122,128
Taxes payable 4(23) 397,001,706 277,285,402 326,919,844
Other payables 4(24) 4,152,518,495 4,016,769,705 3,385,909,718
Current portion of
non-current liabilities 4(25) 2,779,347,654 3,012,690,360 1,433,644,523
Others 4(26) 1,107,904,110 - 1,723,070,000
Total current liabilities 19,336,618,560 19,253,061,379 17,282,713,856
Non-current liabilities
Long-term borrowings 4(27) 18,802,292,664 19,465,723,869 19,888,172,037
Debentures payable 4(28) 838,326,742 698,168,211 1,900,124,468
Long-term payables 4(29) 2,311,513,249 1,612,864,252 1,944,228,039
Deferred income 4(30) 133,043,646 142,520,263 125,650,072
Long-term employee
benefits payable 4(31) 122,913,388 91,622,907 122,832,249
Deferred tax liabilities 4(16) 100,726,841 24,188,860 37,718,277
Other non-current liabilities 4(32) 166,405,569 16,405,569 39,000,000
Total non-current liabilities 22,475,222,099 22,051,493,931 24,057,725,142
Total liabilities 41,811,840,659 41,304,555,310 41,340,438,998
Owners' equity
Share capital 4(33) 5,250,283,986 5,250,283,986 5,250,283,986
Capital surplus 4(34) 5,102,846,886 5,004,250,685 5,003,007,478
Other comprehensive
income 4(35) 550,010,133 137,001,523 145,059,015
Surplus reserves 4(36) 7,834,155,143 7,590,363,724 6,845,001,818
Undistributed profits 4(37) 5,490,006,140 5,713,290,735 6,135,494,928
Total equity attributable to
shareholders of the
Company 24,227,302,288 23,695,190,653 23,378,847,225
Minority interests 7,290,519,359 6,007,669,360 5,957,717,537
Total owners' equity 31,517,821,647 29,702,860,013 29,336,564,762
TOTAL LIABILITIES AND
OWNERS' EQUITY 73,329,662,306 71,007,415,323 70,677,003,760
The accompanying notes form an integral part of these financial statements.
Legal representative Principal in charge of accounting Head of accounting department
Wang Jin Liu Wei Meng Fei
112
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
31 December 31 December 1 January
ASSETS Note 2018 2017 2017
(Restated) (Restated)
Current assets
Cash at bank and on
hand 385,577,463 429,724,538 326,073,538
Notes and accounts
receivables 15(1) 264,537,475 195,462,150 212,343,198
Advances to suppliers 44,826,500 57,189,222 79,990,745
Other receivables 15(2) 375,296,228 47,219,599 123,657,568
Inventories 187,058,140 151,849,683 149,462,926
Other current assets 199,679 - 25,650,427
Total current assets 1,257,495,485 881,445,192 917,178,402
Non-current assets
Available-for-sale
financial assets 1,565,806,331 1,243,633,985 1,279,387,994
Long-term receivables 306,460,000 401,460,000 335,000,000
Long-term equity
investments 15(3) 24,699,820,321 23,370,412,702 22,896,735,913
Investment properties 7,661,041 8,296,639 8,932,237
Fixed assets 978,022,437 1,054,459,265 1,049,906,014
Construction in progress 9,394,075 49,949,168 43,039,781
Intangible assets 86,681,362 88,660,312 92,152,556
Deferred tax assets - 43,591,562 -
Other non-current assets 356,004,000 356,004,000 672,504,000
Total non-current assets 28,009,849,567 26,616,467,633 26,377,658,495
TOTAL ASSETS 29,267,345,052 27,497,912,825 27,294,836,897
113
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
COMPANY BALANCE SHEET (CONT’D)
AS AT 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
LIABILITIES AND 31 December 31 December
OWNERS’ EQUITY 2018 2017 1 January 2017
(Restated) (Restated)
Current liabilities
Short-term borrowings 1,500,000,000 1,700,000,000 300,000,000
Notes and accounts
payables 223,827,319 221,325,935 517,973,144
Employee benefits
payable 53,346,100 32,124,015 31,813,417
Taxes payable 48,590,195 38,907,195 9,688,606
Other payables 98,528,954 179,208,669 151,317,073
Current portion of
non-current liabilities - 1,197,935,476 -
Others 1,107,904,110 - 1,216,583,014
Total current liabilities 3,032,196,678 3,369,501,290 2,227,375,254
Non-current liabilities
Long-term borrowings 1,500,000,000 1,500,000,000 1,500,000,000
Debentures payable 838,326,742 - 1,196,982,619
Long-term payables 4,340,898 8,775,514 -
Deferred income 48,362,943 53,869,596 59,533,388
Long-term employee
benefits payable 32,170,769 22,265,631 23,445,887
Deferred tax liabilities 99,461,621 - 12,508,093
Total non-current
liabilities 2,522,662,973 1,584,910,741 2,792,469,987
Total liabilities 5,554,859,651 4,954,412,031 5,019,845,241
Owners' equity
Share capital 5,250,283,986 5,250,283,986 5,250,283,986
Capital surplus 5,605,794,601 5,605,794,601 5,605,752,163
Other comprehensive
income 550,010,133 137,001,523 145,059,015
Surplus reserves 7,834,155,143 7,590,363,724 6,845,001,818
Undistributed profits 4,472,241,538 3,960,056,960 4,428,894,674
Total owners' equity 23,712,485,401 22,543,500,794 22,274,991,656
TOTAL LIABILITIES AND
OWNERS’ EQUITY 29,267,345,052 27,497,912,825 27,294,836,897
The accompanying notes form an integral part of these financial statements.
Legal representative Principal in charge of accounting Head of accounting department
Wang Jin Liu Wei Meng Fei
114
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Note 2018 2017
(Restated)
Revenue 4(38) 27,408,514,178 26,643,792,057
Less: Cost of sales 4(38) (24,246,716,580) (23,292,288,669)
Taxes and surcharges 4(39) (237,969,926) (243,872,444)
Selling and distribution expenses 4(40) (25,383,861) (8,223,996)
General and administrative expenses 4(41) (688,349,938) (638,017,252)
Research and development expenses (5,043,776) (16,980,873)
Financial expenses 4(42) (1,350,485,251) (1,279,255,541)
Including: Interest expenses 1,310,505,491 1,260,094,752
Interest income 63,471,806 65,153,386
Asset impairment losses 4(43) (251,689,797) (145,754,374)
Add: Other income 4(44) 52,750,847 50,872,822
Investment income 4(45) 537,702,970 489,086,549
Including: Share of profit of associates and
joint ventures 488,203,462 436,407,642
Gains/(Losses) on disposal of assets 4(46) 1,572,097 (4,720,404)
Operating profit 1,194,900,963 1,554,637,875
Add: Non-operating income 4(47) 89,456,237 9,464,974
Less: Non-operating expenses 4(48) (39,159,530) (9,892,374)
Total profit 1,245,197,670 1,554,210,475
Less: Income tax expenses 4(49) (335,100,233) (416,489,316)
Net profit 910,097,437 1,137,721,159
Classified by continuity of operations
Net profit from continuing operations 910,097,437 1,137,721,159
Net profit from discontinued operations - -
Classified by ownership of the equity
Attributable to shareholders of the
Company 474,461,997 743,180,431
Minority interests 435,635,440 394,540,728
Other comprehensive income, net of tax
Attributable to shareholders of the Company 413,008,610 (8,057,492)
Other comprehensive income items which
will be reclassified to profit or loss
Gains or losses arising from changes in fair
value of available-for-sale financial
assets 413,008,610 (8,057,492)
Total comprehensive income 1,323,106,047 1,129,663,667
Attributable to equity owners of the Company 887,470,607 735,122,939
Attributable to minority interests 435,635,440 394,540,728
Earnings per share
Basic earnings per share (RMB Yuan) 4(50) 0.09 0.14
Diluted earnings per share (RMB Yuan) 4(50) 0.09 0.14
The accompanying notes form an integral part of these financial statements.
Legal representative Principal in charge of accounting Head of accounting department
Wang Jin Liu Wei Meng Fei
115
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
COMPANY INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Note 2018 2017
(Restated)
Revenue 15(4) 2,287,899,600 2,117,499,891
Less: Cost of sales 15(4) (2,133,932,886) (2,019,135,513)
Taxes and surcharges (17,209,260) (10,188,705)
Selling and distribution expenses (1,589,819) (46,598)
General and administrative expenses (117,909,783) (101,505,265)
Research and development expenses (2,624,097) (6,871,263)
Financial expenses (205,073,468) (197,178,583)
Including: Interest expenses 206,465,168 199,610,835
Interest income 6,208,285 4,215,500
Asset impairment losses 15(5) (154,226,974) (673,578,111)
Add: Other income 6,712,095 7,003,961
Investment income 15(6) 1,517,144,869 1,531,007,381
Including: Share of profit of associates
and joint ventures 484,016,449 430,233,194
Gains/(Losses) on disposal of assets 442,300 (1,847,006)
Operating profit 1,179,632,577 645,160,189
Add: Non-operating income 4,624,375 759,723
Less: Non-operating expenses (2,837,734) (1,034,213)
Total profit 1,181,419,218 644,885,699
Less: Income tax (expenses)/credits (5,383,646) 51,661,211
Net profit 1,176,035,572 696,546,910
Classified by continuity of operations
Net profit from continuing operations 1,176,035,572 696,546,910
Net profit from discontinued
operations - -
Other comprehensive income, net of tax 413,008,610 (8,057,492)
Other comprehensive income items
which will be reclassified to profit or
loss
Gains or losses arising from changes
in fair value of available-for-sale
financial assets 413,008,610 (8,057,492)
Total comprehensive income 1,589,044,182 688,489,418
The accompanying notes form an integral part of these financial statements.
Legal representative Principal in charge of accounting Head of accounting department
Wang Jin Liu Wei Meng Fei
116
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Note 2018 2017
Cash flows from operating activities
Cash received from sales of goods or
rendering of services 31,403,772,367 31,015,193,180
Refund of taxes and surcharges 10,386,840 4,351,929
Cash received relating to other
operating activities 4(52)(a) 138,132,774 149,296,827
Sub-total of cash inflows 31,552,291,981 31,168,841,936
Cash paid for goods and services (21,570,119,475) (23,504,495,193)
Cash paid to and on behalf of
employees (1,758,740,745) (1,689,157,554)
Payments of taxes and surcharges (1,640,280,936) (1,812,415,045)
Cash paid relating to other operating
activities 4(52)(b) (583,214,469) (486,739,641)
Sub-total of cash outflows (25,552,355,625) (27,492,807,433)
Net cash flows from operating
activities 4(53)(a) 5,999,936,356 3,676,034,503
Cash flows from investing activities
Cash received from returns on
investments 335,215,628 267,717,887
Net cash received from disposal of
fixed assets, intangible assets and
other long-term assets 56,236,928 4,437,274
Cash received relating to other
investing activities 4(52)(c) 161,670,884 -
Sub-total of cash inflows 553,123,440 272,155,161
Cash paid to acquire fixed assets,
intangible assets and other
long-term assets (3,699,868,129) (3,408,163,705)
Cash paid to acquire investments (163,135,200) (147,000,000)
Sub-total of cash outflows (3,863,003,329) (3,555,163,705)
Net cash flows used in investing
activities (3,309,879,889 ) (3,283,008,544)
117
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
CONSOLIDATED CASH FLOW STATEMENT (CONT'D)
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Note 2018 2017
Cash flows from financing activities
Cash received from capital
contributions 1,305,125,363 121,691,869
Including: Cash received from capital
contributions by
minority shareholders
of subsidiaries 1,155,125,363 -
Cash received from borrowings 13,592,028,390 14,837,423,033
Cash received from issuing
debentures and short-term
financing notes 2,899,200,000 -
Cash received from sales and
leaseback 900,000,000 -
Cash received relating to other
financing activities 4(52)(d) - 42,438
Sub-total of cash inflows 18,696,353,753 14,959,157,340
Cash repayments of borrowings (17,858,853,666) (13,016,778,066)
Cash payments for interest
expenses and distribution of
dividends or profits (2,390,857,657) (2,019,541,954)
Cash paid for finance leases (426,817,014) (504,155,684)
Cash paid relating to other financing
activities 4(53)(e) (136,080,000) -
Sub-total of financing cash
outflows (20,812,608,337) (15,540,475,704)
Net cash flows used in financing
activities (2,116,254,584) (581,318,364)
Effect of foreign exchange rate
changes on cash and cash
equivalents 519 (755)
Net increase/(decrease) in cash and
cash equivalents 4(53)(a) 573,802,402 (188,293,160)
Add: Cash and cash equivalents at
the beginning of the year 4,996,580,490 5,184,873,650
Cash and cash equivalents at the end
of the year 4(53)(b) 5,570,382,892 4,996,580,490
The accompanying notes form an integral part of these financial statements.
Legal representative Principal in charge of accounting Head of accounting department
Wang Jin Liu Wei Meng Fei
118
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
COMPANY CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2018 2017
Cash flows from operating activities
Cash received from sales of goods or rendering of
services 2,585,719,149 2,486,441,357
Refund of taxes and surcharges - 160,605
Cash received relating to other operating activities 20,154,657 15,203,185
Sub-total of cash inflows 2,605,873,806 2,501,805,147
Cash paid for goods and services (2,032,356,406) (2,185,038,145)
Cash paid to and on behalf of employees (349,508,525) (318,314,615)
Payments of taxes and surcharges (82,796,385) (27,918,406)
Cash paid relating to other operating activities (61,092,274) (75,445,028)
Sub-total of cash outflows (2,525,753,590) (2,606,716,194)
Net cash flows from/(used in) operating
activities 80,120,216 (104,911,047)
Cash flows from investing activities
Cash received from disposal of investments 187,920,000 100,000,000
Cash received from returns on investments 1,313,192,983 1,291,979,756
Net cash received from disposal of fixed assets,
intangible assets and other long-term assets 1,016,545 208,142
Sub-total of cash inflows 1,502,129,528 1,392,187,898
Cash paid to acquire investments (1,419,713,500) (651,600,000)
Cash paid to acquire fixed assets, intangible assets
and other long-term assets (92,602,608) (96,396,893)
Sub-total of cash outflows (1,512,316,108) (747,996,893)
Net cash flows (used in)/from investing activities (10,186,580) 644,191,005
Cash flows from financing activities
Cash received from borrowings 3,830,000,000 2,580,000,000
Cash received from issuing debentures and
short-term financing notes 2,899,200,000 -
Cash received relating to other financing activities - 42,438
Sub-total of cash inflows 6,729,200,000 2,580,042,438
Cash repayments of borrowings (6,189,693,500) (2,380,000,000)
Cash payments for interest expenses and
distribution of dividends or profits (653,587,730) (635,670,641)
Sub-total of cash outflows (6,843,281,230) (3,015,670,641)
Net cash flows used in financing activities (114,081,230) (435,628,203)
Effect of foreign exchange rate changes on cash and
cash equivalents 519 (755)
Net (decrease)/increase in cash and cash equivalents (44,147,075) 103,651,000
Add: Cash and cash equivalents at the beginning of
the year 429,724,538 326,073,538
Cash and cash equivalents at the end of the year 385,577,463 429,724,538
The accompanying notes form an integral part of these financial statements.
Legal representative Principal in charge of accounting Head of accounting department
Wang Jin Liu Wei Meng Fei
119
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
CONSOLIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Note Attributable to equity owners of the Company
Other
Capital comprehensive Surplus Undistributed Minority Total owners'
Share capital surplus income reserves profits interests equity
Balance at 1 January 2018 5,250,283,986 5,004,250,685 137,001,523 7,590,363,724 5,713,290,735 6,007,669,360 29,702,860,013
Movements for the year
ended 31 December 2018
Total comprehensive income - - 413,008,610 - 474,461,997 435,635,440 1,323,106,047
Transactions with minority
shareholders 4(34) - 98,596,201 - - - 1,349,463,195 1,448,059,396
Profit distribution
Appropriation to surplus
reserves 4(36) - - - 243,791,419 (243,791,419) - -
Profit distribution to equity
owners 4(37)(a) - - - - (420,022,719) (486,302,545) (906,325,264)
Others 4(37)(b) - - - - (33,932,454) (15,946,091) (49,878,545)
Balance at 31 December
2018 5,250,283,986 5,102,846,886 550,010,133 7,834,155,143 5,490,006,140 7,290,519,359 31,517,821,647
120
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
CONSOLIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITY (CONT’D)
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Note Attributable to equity owners of the Company
Other
Capital comprehensive Surplus Undistributed Minority Total owners'
Share capital surplus income reserves profits interests equity
Balance at 1 January 2017 5,250,283,986 5,003,007,478 145,059,015 6,845,001,818 6,135,494,928 5,957,717,537 29,336,564,762
Movements for the year ended
31 December 2017
Total comprehensive income - - (8,057,492) - 743,180,431 394,540,728 1,129,663,667
Capital contribution and
withdrawal by shareholders - - - - - 138,286,300 138,286,300
Profit distribution
Appropriation to surplus
reserves 4(36) - - - 745,361,906 (745,361,906) - -
Profit distribution to equity
owners 4(37)(a) - - - - (420,022,718) (483,389,821) (903,412,539)
Others - 1,243,207 - - - 514,616 1,757,823
Balance at 31 December 2017 5,250,283,986 5,004,250,685 137,001,523 7,590,363,724 5,713,290,735 6,007,669,360 29,702,860,013
The accompanying notes form an integral part of these financial statements.
Legal representative Principal in charge of accounting Head of accounting department
Wang Jin Liu Wei Meng Fei
121
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
COMPANY STATEMENT OF CHANGES IN OWNERS’ EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Other
Capital comprehensive Surplus Undistributed Total owners'
Note Share capital surplus income reserves profits equity
Balance at 1 January 2018 5,250,283,986 5,605,794,601 137,001,523 7,590,363,724 3,960,056,960 22,543,500,794
Movements for the year ended 31
December 2018
Total comprehensive income - - 413,008,610 - 1,176,035,572 1,589,044,182
Profit distribution
Appropriation to surplus reserves 4(36) - - - 243,791,419 (243,791,419) -
Profit distribution to equity owners 4(37)(a) - - - - (420,022,719) (420,022,719)
Others - - - - (36,856) (36,856)
Balance at 31 December 2018 5,250,283,986 5,605,794,601 550,010,133 7,834,155,143 4,472,241,538 23,712,485,401
122
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
COMPANY STATEMENT OF CHANGES IN OWNERS’ EQUITY (CONT'D)
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Other
comprehensive Surplus Undistributed Total owners'
Note Share capital Capital surplus income reserves profits equity
Balance at 1 January 2017 5,250,283,986 5,605,752,163 145,059,015 6,845,001,818 4,428,894,674 22,274,991,656
Movements for the year ended 31
December 2017
Total comprehensive income - - (8,057,492) - 696,546,910 688,489,418
Profit distribution
Appropriation to surplus reserves 4(36) - - - 745,361,906 (745,361,906) -
Profit distribution to equity owners 4(37)(a) - - - - (420,022,718) (420,022,718)
Others - 42,438 - - - 42,438
Balance at 31 December 2017 5,250,283,986 5,605,794,601 137,001,523 7,590,363,724 3,960,056,960 22,543,500,794
The accompanying notes form an integral part of these financial statements.
Legal representative Principal in charge of accounting Head of accounting department
Wang Jin Liu Wei Meng Fei
123
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
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 2018, the total share capital of the Company was
RMB 5,250,283,986 with par value of RMB 1 per share.
The Company and its subsidiaries (collectively referred to as “the Group”) are principally engaged
in the businesses of developing and operating electric power plants in Guangdong Province, the
PRC. For the information of 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 11 April 2019.
2 Summary of significant accounting policies and accounting estimates
The Group determines its specific accounting policies and accounting estimates on the basis of the
production and operation feature, which is reflected in: depreciation of fixed assets (Note 2(14),
impairment of long-term assets (Note 2(19)), and recognition of deferred income taxes (Note
2(25)), etc.
Details of the Group's critical judgements used in determining significant accounting policies are
set forth in Note 2(29).
(1) Basis of preparation
The financial statements are prepared in accordance with the Accounting Standard for Business
Enterprises - Basic Standard, and the specific accounting standards and other relevant regulations
issued by the Ministry of Finance on 15 February 2006 and in subsequent periods (hereafter
collectively referred to as “the Accounting Standards for Business Enterprises” or “CAS”) and the
disclosure requirements in the Preparation Convention of Information Disclosure by Companies
Offering Securities to the Public No.15 - General Rules on Financial Reporting issued by the China
Securities Regulatory Commission.
As at 31 December 2018, the Group’s net current liabilities amounted to RMB 7,175 million. Capital
commitments contracted for by the Group amounted to RMB 8,351 million, among which the
capital expenditure due within one year amounted to RMB 2,927 million. Therefore, the Group is to
some extent exposed to liquidity risk.
The reason for net current liabilities is that a portion of 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 2018, therefore, the financial statements
are prepared on a going concern basis.
(a) The Group continuously generates profit after its generator sets have successively been
put into production in recent years. Management expects stable cash inflows from
operating activities in the future; and
124
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(1) Basis of preparation (Cont’d)
(b) The Group maintains good relations of long-term cooperation with financial institutions
(including the Company’s associate Guangdong Yudean Finance Co., Ltd. (“Yudean
Finance”)) in order to obtain sufficient financing credit lines. As at 31 December 2018, the
Group’s available line of credit from financial institutions amounted to approximately RMB
20,635 million, with RMB 7,210 million from Yudean Finance, RMB 9,225 million from other
commercial banks and financial institutions, and remaining financing credit lines of
medium-term notes of RMB 4,200 million obtained from China's inter-bank market, among
which approximately RMB 5,552 million is due before 31 December 2019. The
management has communicated with the financial institutions and hence expected the line
of credit due before 31 December 2019 to renew the term for another 12 months.
(2) Statement of compliance with the Accounting Standard for Business Enterprises
The financial statements of the Company for the year ended 31 December 2018 are in compliance
with the Accounting Standards for Business Enterprises, and truly and completely present the
consolidated and the Company’s financial position of the Company as at 31 December 2018 and
their financial performance, cash flows and other information for the year then ended.
(3) Accounting year
The Company’s accounting year starts on 1 January and ends on 31 December.
(4) Recording currency
The recording currency is Renminbi (RMB).
(5) Business combinations
(a) Business combinations involving enterprises under common control
The consideration paid and net assets obtained by the absorbing party in a business combination
are measured at the carrying amount. The difference between the carrying amount of the net
assets obtained from the combination and the carrying amount of the consideration paid for the
combination is treated as an adjustment to capital surplus (share premium). If the capital surplus
(share premium) is not sufficient to absorb the difference, the remaining balance is adjusted
against retained earnings. Costs directly attributable to the combination are included in profit or
loss in the period in which they are incurred. Transaction costs associated with the issue of equity
or debt securities for the business combination are included in the initially recognised amounts of
the equity or debt securities.
(b) Business combinations involving enterprises not under common control
The cost of combination and identifiable net assets obtained by the acquirer in a business
combination are measured at fair value at the acquisition date. Where the cost of the combination
exceeds 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.
125
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(6) Preparation of consolidated financial statements
The consolidated financial statements comprise the financial statements of the Company and all of
its subsidiaries.
Subsidiaries are consolidated from the date on which the Group obtains control and are
de-consolidated from the date that such control ceases. For a subsidiary that is acquired in a
business combination involving enterprises under common control, it is included in the
consolidated financial statements from the date when it, together with the Company, comes under
common control of the ultimate controlling party. The portion of the net profit realised before the
combination date is presented separately in the consolidated income statement.
In preparing the consolidated financial statements, where the accounting policies and the
accounting periods of the Company and subsidiaries are inconsistent, the financial statements of
the subsidiaries are adjusted in accordance with the accounting policies and the accounting period
of the Company. For subsidiaries acquired from business combinations involving enterprises not
under common control, the individual financial statements of the subsidiaries are adjusted based
on the fair value of the identifiable net assets at the acquisition date.
All significant intra-group balances, transactions and unrealised profits are eliminated in the
consolidated financial statements. The portion 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 profit and total
comprehensive income respectively. Unrealised profits and losses resulting from the sale of assets
by the Company to its subsidiaries are fully eliminated against net profit attributable to owners of
the parent. Unrealised profits and losses resulting from the sale of assets by a subsidiary to the
Company are eliminated and allocated between net profit attributable to owners of the parent and
net profit attributed to minority interests in accordance with the allocation proportion of the parent
in the subsidiary. Unrealised profits and losses resulting from the sale of assets by one subsidiary
to another are eliminated and allocated between net profit attributable to owners of the parent and
net profit attributed to minority interests in accordance with the allocation proportion of the parent
in the subsidiary.
If the accounting treatment of a transaction is inconsistent in the financial statements at the Group
level and at the Company or its subsidiary level, adjustment will be made from the perspective of
the Group.
(7) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, deposits that can be readily drawn on
demand, and short-term and highly liquid investments that are readily convertible to known
amounts of cash and which are subject to an insignificant risk of changes in value.
(8) Foreign currency translation
Foreign currency transactions are translated into RMB using the exchange rates prevailing at the
dates of the transactions.
At the balance sheet date, monetary items denominated in foreign currencies are translated into
RMB using the spot exchange rates on the balance sheet date. Exchange differences arising from
these translations are recognised in profit or loss for the current period, except for those
attributable to foreign currency borrowings that have been taken out specifically for acquisition or
construction of qualifying assets, which are capitalised as part of the cost of those assets.
Non-monetary items denominated in foreign currencies that are measured at historical costs are
translated at the balance sheet date using the spot exchange rates at the date of the transactions.
The effect of exchange rate changes on cash is presented separately in the cash flow statement.
126
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(9) Financial instruments
(a) Financial assets
(i) Classification of financial assets
Financial assets are classified into the following categories at initial recognition: financial assets at
fair value through profit or loss, receivables, available-for-sale financial assets and held-to-maturity
investments. The classification of financial assets depends on the Group’s intention and ability to
hold the financial assets. During the current year, The Group's financial assets include receivables
and available-for-sale financial assets.
Receivables
Receivables are non-derivative financial assets with fixed or determinable payments that are not
quoted in an active market.
Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial assets that are either designated in
this category or not classified in any of the other categories at initial recognition. Available-for-sale
financial assets are included in other current assets on the balance sheet if management intends
to dispose of them within 1 year (inclusive) after the balance sheet date.
(ii) Recognition and measurement
Financial assets are recognised at fair value on the balance sheet when the Group becomes a
party to the contractual provisions of the financial instrument. For receivables and
available-for-sale financial assets, transaction costs that are attributable to acquisition of the
financial assets are included in their initially recognised amounts.
Available-for-sale financial assets are subsequently measured at fair value. Investments in equity
instruments are measured at cost when they do not have a quoted market price in an active
market and whose fair value cannot be reliably measured. Receivables are measured at amortised
cost using the effective interest method.
Gains or losses arising from change in fair value of available-for-sale financial assets are
recognised directly in equity, except for impairment losses and foreign exchange gains and losses
arising from translation of monetary financial assets. When such financial assets are
derecognised, the cumulative gains or losses previously recognised directly in equity are recycled
into profit or loss for the current period.
(iii) Impairment of financial assets
The Group assesses the carrying amounts of financial assets other than those at fair value through
profit or loss at each balance sheet date. If there is objective evidence that a financial asset is
impaired, an impairment loss is provided for.
Objective evidence indicating impairment of financial assets refers to the matter that actually
occurs after the initial recognition of financial assets and will affect estimated future cash flows of
financial assets, and whose impact can be reliably measured.
127
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(9) Financial instruments (Cont'd)
(a) Financial assets (Cont’d)
(iii) Impairment of financial assets (Cont'd)
The objective evidences for impairment of investments in available-for-sale equity instruments
include significant or non-temporary decline in the fair value of investments in equity instruments.
The Group assesses the investments in available-for-sale equity instruments on an individual basis
at each balance sheet date. If the fair value of an investment in equity instruments on the balance
sheet date is lower than its initial investment cost for more than 50% (inclusive) or is continuously
lower than its initial investment cost for more than 1 year (inclusive), then an impairment is
incurred; if the fair value of an investment in equity instruments on the balance sheet date is lower
than its initial investment cost for more than 20% (inclusive), but not yet 50%, the Group will
consider other related factors such as price fluctuation rate to determine whether the investment in
equity instruments is impaired. The Group calculates the initial investment cost of available-for-sale
equity instruments using the weighted average method.
When an impairment loss on a financial asset carried at amortised cost has occurred, the amount
of the impairment loss is provided for at the difference between the asset’s carrying amount and
the present value of its estimated future cash flows (excluding future credit losses that have not
been incurred). If there is objective evidence that the value of the financial asset recovered and the
recovery is related objectively to an event occurring after the impairment was recognised, the
previously recognised impairment loss is reversed and the amount of reversal is recognised in
profit or loss.
If an impairment loss on available-for-sale financial assets measured at fair value incurs, the
cumulative losses arising from the decline in fair value that has been recognised directly in equity
are transferred out from equity into impairment loss. For an investment in debt instrument classified
as available-for-sale on which the impairment loss has been recognised, if, in a subsequent period,
its fair value increases and the increase can be objectively related to an event occurring after the
impairment loss was recognised, the previously recognised impairment loss is reversed through
profit or loss for the current period. For an investment in an equity instrument classified as
available-for-sale on which the impairment loss has been recognised, the increase in its fair value
in a subsequent period is recognised directly in equity.
If an impairment loss on an available-for-sale financial asset measured at cost incurs, the amount
of loss is measured at the difference between the asset’s carrying amount and the present value of
estimated future cash flows discounted at the current market rate of return for a similar financial
asset, and recorded in profit or loss for the current period. The previously recognised impairment
loss will not be reversed in subsequent periods.
(iv) Derecognition of financial assets
A financial asset is derecognised when: (i) the contractual rights to the cash flows from the financial
asset expire, (ii) the financial asset has been transferred and the Group transfers substantially all
the risks and rewards of ownership of the financial asset to the transferee, or (iii) the financial asset
has been transferred and the Group has not retained control of the financial asset, although the
Group neither transfers nor retains substantially all the risks and rewards of ownership of the
financial asset.
On derecognition of a financial asset, the difference between the carrying amount and the sum of
the consideration received and the cumulative changes in fair value that had been recognised
directly in owners’ equity, is recognised in profit or loss.
128
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(9) Financial instruments (Cont'd)
(b) Financial liabilities
Financial liabilities are classified into the following categories at initial recognition: financial
liabilities at fair value through profit or loss and other financial liabilities. The financial liabilities of
the Group mainly comprise other financial liabilities, including payables, borrowings, bonds
payable, etc.
Payables, including accounts payable, notes receivable and other payables, are recognised initially
at fair value and subsequently measured at amortised cost using the effective interest method.
Borrowings and debentures payable are initially recognised at fair value, net of transaction costs
incurred, and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities with maturities no more than one year (inclusive) are classified as current
liabilities; those with maturities over one year but are due within one year (inclusive) as from the
balance sheet date are classified as current portion of non-current liabilities. Others are classified
as non-current liabilities.
A financial liability is derecognised or partly derecognised when the underlying present obligation is
discharged or partly discharged. The difference between the carrying amount of the derecognised
part of the financial liability and the consideration paid is recognised in profit or loss for the current
period.
(c) Determination of fair value of financial instruments
The fair value of a financial instrument that is traded in an active market is determined at the
quoted price in the active market. The fair value of a financial instrument that is not traded in an
active market is determined by using a valuation technique. In valuation, the Group adopts
valuation techniques applicable in the current situation and supported by adequate available data
and other information, selects inputs with the same characteristics as those of assets or liabilities
considered in relevant transactions of assets or liabilities by market participants, and gives priority
to the use of relevant observable inputs. When relevant observable inputs are not available or
feasible, unobservable inputs are adopted.
(10) Receivables
Receivables comprise notes and accounts receivables, other receivables, etc. Accounts receivable
arising from sale of goods or rendering of services are initially recognised at fair value of the
contractual payments from the buyers or service recipients.
129
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(10) Receivables (Cont’d)
(a) Receivables with amounts that are individually significant and subject to separate assessment for
provision for bad debts
Receivables with amounts that are individually significant are subject to separate assessment for
impairment. If there exists objective evidence that the Group will not be able to collect the amount
under the original terms, a provision for impairment of that receivable is made.
The criterion for determining "amounts that are individually significant" is: the five largest accounts
receivable and other receivables with individual amount more than RMB 5,000,000 and all
long-term receivables.
The method of providing for bad debts for those individually significant amounts is as follows: the
amount of the present value of the future cash flows expected to be derived from the receivable
below its carrying amount.
(b) Receivables that the related provision for bad debts is provided on the grouping basis
Receivables with amounts that are not individually significant and those receivables that have been
individually assessed for impairment and have not been found impaired are classified into certain
groupings based on their credit risk characteristics. Provision for bad debts is determined based on
the historical loss experience for groupings of receivables with similar credit risk characteristics,
taking into consideration of the current circumstances.
The basis of the grouping recognition:
Name of groupings Basis of recognition
The grouping includes receivables from sales of electricity,
receivables from government, receivables from related
Low-risk grouping
parties, supplementary medical insurance fund receivable,
etc.
The grouping refers to the receivables except for the low-risk
Ageing analysis grouping
grouping.
The method of provision for bad debts on the grouping basis is as follows:
Name of groupings Method of provision
Low-risk grouping No provision
Ageing analysis grouping Ageing analysis method
Provision method which is determined based on the groupings with similar credit risk
characteristics is ageing analysis method, and provision ratios are listed as follows:
Provision ratio for accounts receivable and other receivables
Within 1 year 1%
1 to 2 years 10%
2 to 3 years 30%
Over 3 years 100%
130
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(10) Receivables (Cont’d)
(c) Receivables with amounts that are not individually significant but subject to separate assessment
for provision for bad debts
The reason for making separate assessment for provision for bad debts is that there exists
objective evidence that the Group will not be able to collect the amount under the original terms of
the receivable.
Provision for bad debts is determined at the excess of the carrying amount of the receivables over
the present value of the future cash flows expected to be derived from the receivables.
(11) Inventories
(a) Classification
Inventories mainly comprise fuel and spare parts, and are measured at the lower of cost and net
realisable value.
(b) Costing of inventories
Cost of fuel is calculated using the weighted average method. Spare parts are amortised in full
amount when issued for use.
(c) Basis for determining net realisable values of inventories and method for making provision for
decline in the value of inventories
Provision for decline in the value of inventories is determined at the excess amount of the carrying
amounts of the inventories over their net realisable value. Net realisable value is determined based
on the estimated selling price in the ordinary course of business, less the estimated costs
necessary to make the sales and related taxes.
(d) The Group adopts the perpetual inventory system.
131
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(12) 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.
Subsidiaries are the investees over which the Company is able to exercise control. A joint venture
is a joint arrangement which is structured through a separate vehicle over which the Group has
joint control together with other parties and only has rights to the net assets of the arrangement
based on legal forms, contractual terms and other facts and circumstances. An associate is the
investee over which the Group has significant influence by participating in the financial and
operating policy decisions.
Investments in subsidiaries are presented in the Company’s financial statements using the cost
method, and are adjusted using the equity method when preparing the consolidated financial
statements; investments in associates and joint ventures are accounted for using the equity
method.
(a) Determination of investment cost
For long-term equity investments arising from business combination: for long-term equity
investments arising from business combination involving enterprises under common control, the
initial investment cost shall be the share of the carrying amount of owners’ equity of the combined
party in the consolidated financial statements of the ultimate controlling party as at the combination
date; for long-term equity investments arising from business combination involving enterprises not
under common control, the investment cost shall be the combination cost.
Long-term equity investments acquired other than business combination: long-term equity
investments acquired by cash are initially measured at the amount of actually paid; long-term
equity investments acquired by the issuance of equity shares are initially measured at the fair value
of equity shares issued.
(b) Subsequent measurement and recognition of profit or loss
For long-term equity investments accounted for using the cost method, cash dividends or profit
distribution declared by the investees is recognised as investment income in profit or loss.
For long-term equity investments accounted for using the equity method, where the initial
investment cost exceeds 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.
132
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(12) Long-term equity investments (Cont’d)
(c) Basis for determining existence of control, jointly control or significant influence over investees
Control is the power to govern an investee, so as to obtain variable returns from its involvement
with the investee, and has the ability to use its power over the investee to affect the amount of the
investor's returns.
Joint control is the contractually agreed sharing of control over an arrangement, and the decision
of activities relating to such arrangement requires the unanimous consent of the Group and other
parties sharing control.
Significant influence is the power to participate in making the decisions on financial and operating
policies of the investee, but is not control or joint control over making those policies.
(d) Impairment of long-term equity investments
The carrying amounts of long-term equity investments in subsidiaries, joint ventures and
associates are reduced to the recoverable amounts when the recoverable amounts are below their
carrying amounts (Note 2(19)).
(13) Investment properties
Investment properties, including land use rights that have already been leased out and buildings
that are held for the purpose of leasing, are measured initially at cost. Subsequent expenditures
incurred in relation to an investment property are included in the cost of the investment property
when it is probable that the associated economic benefits will flow to the Group and their costs can
be reliably measured; otherwise, the expenditures are recognised in profit or loss for the period in
which they are incurred.
The Group adopts the cost model for subsequent measurement of investment properties.
Buildings and land use rights are depreciated or amortised to their estimated net residual values
over their estimated useful lives. The estimated useful lives, the estimated net residual values that
are expressed as a percentage of cost and the annual depreciation (amortisation) rates of
investment properties are as follows:
Estimated net residual Annual depreciation
Estimated useful lives values rates
Buildings 22 to 30 years 5% 3.17% to 4.32%
When an investment property is transferred to owner-occupied property, it is reclassified to fixed
asset with the carrying amount determined at the carrying amount of the investment property at the
date of the transfer.
133
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(13) Investment properties (Cont’d)
The estimated useful life and the estimated net residual value of an investment property and the
depreciation (amortisation) method applied to the property are reviewed, and adjusted as
appropriate at each year-end.
An investment property is derecognised on disposal or when the investment property is
permanently withdrawn from use and no future economic benefits are expected from its disposal.
The net amount of proceeds from sales, transfer, retirement or damage of an investment property
after its carrying amount and related taxes and expenses is recognised in profit or loss for the
current period.
(14) Fixed assets
(a) Recognition and initial measurement of fixed assets
Fixed assets comprise buildings, power generation equipment, motor vehicles and other equipment.
Fixed assets are recognised when it is probable that the related economic benefits will flow to the
Group and the costs can be reliably measured. Fixed assets purchased or constructed by the Group
are initially measured at cost at the time of acquisition. The fixed assets contributed by the State
shareholders at the reorganisation of the Company into a corporation are recognised based on the
evaluated amounts as approved by the state-owned assets administration department.
Subsequent expenditures incurred for a fixed asset are included in the cost of the fixed asset when
it is probable that the associated economic benefits will flow to the Group and the related cost can
be reliably measured. The carrying amount of the replaced part is derecognised. All the other
subsequent expenditures are recognised in profit or loss for the period in which they are incurred.
(b) Depreciation methods of fixed assets
Fixed assets are depreciated using the straight-line method to allocate the cost of the assets to their
estimated residual values over their estimated useful lives. For the fixed assets that have been
provided for impairment loss, the related depreciation charge is prospectively determined based
upon the adjusted carrying amounts over their remaining useful lives.
The estimated useful lives, the estimated residual values expressed as a percentage of cost and the
annual depreciation rates of fixed assets are as follows:
Estimated useful Estimated net Annual depreciation
lives residual values rates
Buildings 10 to 50 years 5% 1.90% to 9.50%
Power generation
equipment 5 to 31 years 0% to 5% 3.06% to 20.00%
Motor vehicles 5 to 15 years 0% to 5% 6.33% to 20.00%
Other equipment 5 to 22 years 0% to 5% 4.32% 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(19)).
134
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(14) Fixed assets (Cont’d)
(d) Basis for identification of fixed assets held under finance leases and related measurement
A lease that transfers substantially all the risks and rewards incidental to ownership of an asset is a
finance lease. The leased asset is recognised at the lower of the fair value of the leased asset and
the present value of the minimum lease payments. The difference between the recorded amount of
the leased asset and the minimum lease payments is accounted for as unrecognised finance
charge (Note 2(26)(b)).
Fixed assets held under a finance lease is depreciated on a basis consistent with the depreciation
policy adopted for fixed assets that are self-owned. When a leased asset can be reasonably
determined that its ownership will be transferred at the end of the lease term, it is depreciated over
its estimated useful life; otherwise, the leased asset is depreciated over the shorter period of the
lease term and its estimated useful life.
(e) Disposal of fixed assets
A fixed asset is derecognised on disposal or when no future economic benefits are expected from
its use or disposal. The amount of proceeds from disposals on sale, transfer, retirement or damage
of a fixed asset net of its carrying amount and related taxes and expenses is recognised in profit or
loss for the current period.
(15) Construction in progress
Construction in progress is measured at actual cost. Actual cost comprises construction costs,
installation costs, borrowing costs that are eligible for capitalisation and other costs necessary to
bring the fixed assets ready for their intended use. Construction in progress is transferred to fixed
assets when the assets are ready for their intended use, and depreciation is charged starting from
the following month. The carrying amount of construction in progress is reduced to the recoverable
amount when the recoverable amount is below its carrying amount (Note 2(19)).
(16) Borrowing costs
The borrowing costs that are directly attributable to acquisition and construction of an asset that
needs a substantially long period of time for its intended use commence to be capitalised and
recorded as part of the cost of the asset when expenditures for the asset and borrowing costs have
been incurred, and the activities relating to the acquisition and construction that are necessary to
prepare the asset for its intended use have commenced. The capitalisation of borrowing costs
ceases when the asset under acquisition or construction becomes ready for its intended use and
the borrowing costs incurred thereafter are recognised in profit or loss for the current period.
Capitalisation of borrowing costs is suspended during periods in which the acquisition or
construction of an asset is interrupted abnormally and the interruption lasts for more than 3 months,
until the acquisition or construction is resumed.
The capitalised amount of specific borrowings intended to be used for the acquisition and
construction of qualifying assets is determined by the interest expenses incurred in the period less
interest income of the unused borrowings deposited at bank or investment income from temporary
investments.
The capitalised amount of general borrowings intended to be used for the acquisition and
construction of qualifying assets is determined by the weighted average of the excess of
accumulated capital expenditure over capital expenditure of the special borrowings multiplied by
the weighted average effective interest rate of the utilised general borrowings. The effective
interest rate is the rate at which the future cash flows of the borrowings over the expected lifetime
or a shorter applicable period are discounted into the initial recognised amount of the borrowings.
135
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(17) Intangible assets
Intangible assets include land use rights, sea use rights, software, franchise right, associated
projects for electricity transmission and transformation, microwave engineering and transportation
engineering, and are measured at cost. The intangible assets contributed by the state shareholders
at the reorganisation of the Company into a corporation are recognised based on the revaluated
amounts as approved by the state-owned assets administration department.
(a) Land use rights and sea use rights
Land use rights are amortised on the straight-line basis over their approved use period of 20 to 70
years. If the acquisition costs of the land use rights and the buildings located thereon cannot be
reasonably allocated between the land use rights and the buildings, all of the acquisition costs are
recognised as fixed assets.
Sea use rights are amortised on the straight-line basis over their approved useful lives of 50 years.
(b) Associated projects for electricity transmission and transformation, microwave engineering and
transportation engineering
Associated projects for electricity transmission and transformation and microwave engineering
refer to grid connection project undertaken by the Group for transmitting electricity to Guangdong
Power Grid. From the start of use, they are amortised on a straight-line basis over their estimated
beneficial period of 16 years.
Transportation engineering is amortised on a straight-line basis over their benefit period of 20
years.
(c) Other intangible assets
Fixed assets other than land use rights, sea use rights, associated projects for electricity
transmission and transformation, microwave engineering and transportation engineering are
amortised on a straight-line-basis over the expected useful lives of 2 to 25 years.
(d) Periodical review of useful life and amortisation method
For an intangible asset with a finite useful life, review of its useful life and amortisation method is
performed at each year-end, with adjustment made as appropriate.
(e) Impairment of intangible assets
The carrying amount of an intangible asset is reduced to the recoverable amount when the
recoverable amount is below the carrying amount (Note 2(19)).
(18) Long-term prepaid expenses
Long-term prepaid expenses include the expenditure for improvements to fixed assets held under
operating leases, and other expenditures that have been incurred but should be recognised as
expenses over more than one year in the current and subsequent periods. Long-term prepaid
expenses are amortised on the straight-line basis over the expected beneficial period and are
presented at actual expenditure net of accumulated amortisation.
136
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(19) Impairment of long-term assets
Fixed assets, construction in progress, intangible assets with finite useful lives, investment
properties that are measured at cost and long-term equity investments in subsidiaries, joint
ventures and associates are tested for impairment if there is any indication that an asset may be
impaired at the balance sheet date. If the result of the impairment test indicates that the
recoverable amount of an asset is less than its carrying amount, a provision for impairment and an
impairment loss are recognised for the amount by which 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 the individual asset basis. If it is not possible to
estimate the recoverable amount of an individual asset, the recoverable amount of a group of
assets to which the asset belongs is determined. A group of assets is the smallest group of assets
that is able to generate independent cash inflows.
Goodwill that is separately presented in the financial statements is tested at least annually for
impairment, irrespective of whether there is any indication that it may be impaired. In conducting
the test, the carrying value of goodwill is allocated to the related asset group or groups of asset
groups which are expected to benefit from the synergies of the business combination. If the result
of the test indicates that the recoverable amount of an asset group or a group of asset groups,
including the allocated goodwill, is lower than its carrying amount, the corresponding impairment
loss is recognised. The impairment loss is first deducted from the carrying amount of goodwill that
is allocated to the asset group or group of asset groups, and then deducted from the carrying
amounts of other assets within the asset group or group of asset groups in proportion to the
carrying amounts of assets other than goodwill.
Once the above asset impairment loss is recognised, it will not be reversed for the value recovered
in the subsequent periods.
(20) Employee benefits
Employee benefits refer to all forms of consideration or compensation given by the Group in
exchange for service rendered by employees or for termination of employment relationship, which
include short-term employee benefits, post-employment benefits, termination benefits and other
long-term employee benefits.
(a) Short-term employee benefits
Short-term employee benefits include wages or salaries, bonus, allowances and subsidies, staff
welfare, premiums or contributions on medical insurance, work injury insurance and maternity
insurance, housing funds, union running costs and employee education costs, short-term paid
absences and etc. The short-term employee benefits actually occurred are recognised as a liability
in the accounting period in which the service is rendered by the employees, with a corresponding
charge to the profit or loss for the current period or the cost of relevant assets. Non-monetary
benefits are measured at fair value.
(b) Post-employment benefits
The Group classifies post-employment benefit plans as either defined contribution plans or defined
benefit plans. Defined contribution plans are post-employment benefit plans under which the Group
pays fixed contributions into a separate fund and will have no obligation to pay further contributions;
and defined benefit plans are post-employment benefit plans other than defined contribution plans.
During the reporting period, the Group's post-employment benefits mainly include basic pensions,
unemployment insurance and supplementary pensions, and all of them belong to the defined
contribution plans.
137
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(20) 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 relevant local authorities are obliged to pay
the basic pensions to them.
Supplementary pensions
The Company purchases supplementary pensions for employees, and pays insurance premium
according to the policies of GEGC.
The amounts based on the above calculations are recognised as liabilities in the accounting period
in which the service has been rendered by the employees, with a corresponding charge to the profit
or loss for the current period or the cost of relevant assets.
(c) Termination benefits
The Group provides compensation for terminating the employment relationship with employees
before the end of the employment contracts or as an offer to encourage employees to accept
voluntary redundancy before the end of the employment contracts. The Group recognises a
liability arising from compensation for termination of the employment relationship with employees,
with a corresponding charge to profit or loss for the current period at the earlier of the following
dates: 1) when the Group cannot unilaterally withdraw an employment termination plan or a
curtailment proposal; 2) when the Group recognises costs or expenses for a restructuring that
involves the payment of termination benefits.
Early retirement benefits
The Group offers early retirement benefits to those employees who accept early retirement
arrangements. The early retirement benefits refer to the salaries and social security contributions
to be paid to and for the employees who accept voluntary retirement before the normal retirement
date prescribed by the State, as approved by the management. The Group pays early retirement
benefits to those early retired employees from the early retirement date until the normal retirement
date. The Group accounts for the early retirement benefits in accordance with the treatment for
termination benefits, in which the salaries and social security contributions to be paid to and for the
early retired employees from the off-duty date to the normal retirement date are recognised as
liabilities with a corresponding charge to the profit or loss for the current period. The differences
arising from the changes in the respective actuarial assumptions of the early retirement benefits
and the adjustments of benefit standards are recognised in profit or loss in the period in which they
occur.
The termination benefits expected to be settled within one year since the balance sheet date are
classified as current liabilities.
138
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(21) Dividend distribution
Cash dividends are recognised as liabilities in the period in which the dividends are approved by
the shareholders’ meeting.
(22) Provisions
Provisions for product warranties, onerous contracts and etc. are recognised when the Group has a
present obligation, it is probable that an outflow of economic benefits will be required to settle the
obligation, and the amount of the obligation can be measured reliably.
A provision is initially measured at the best estimate of the expenditure required to settle the
related present obligation. Factors surrounding a contingency, such as the risks, uncertainties and
the time value of money, are taken into account as a whole in reaching the best estimate of a
provision. Where the effect of the time value of money is material, the best estimate is determined
by discounting the related future cash outflows. The increase in the discounted amount of the
provision arising from passage of time is recognised as interest expense.
The carrying amount of provisions is reviewed at each balance sheet date and adjusted to reflect
the current best estimate.
The provisions expected to be settled within one year since the balance sheet date are classified
as current liabilities.
(23) Revenue recognition
The amount of revenue is determined in accordance with the fair value of the consideration
received or receivable for the sale of goods and services in the ordinary course of the Group’s
activities. Revenue is stated net of discounts, rebates and returns.
Revenue is recognised when it’s probable that the economic benefits associated with the
transaction will flow to the Group, the related revenue can be reliably measured, and the specific
criteria of revenue recognition have been met for each type of the Group’s activities as described
below:
(a) Revenue from sales of electricity and heat energy
Revenue is recognised when electricity and heat energy are supplied to grid companies or
customers.
(b) Revenue from sales of by-products
Revenue from the sales of goods is recognised when the Group transfers by-products (such as
coal ash) produced by electricity generations to the designated delivery place pursuant to the
contract or agreement and the recipient resource utilisation confirms receipt.
139
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(23) Revenue recognition (Cont’d)
(c) Rendering of services
The amount of revenue is determined in accordance with the fair value of the consideration
received or receivable for rendering of services.
The Group provides electric power transactions service and maintenance service to external
parties.
For the electric power transactions service provided by the Group to external parties, upon the
receiving of the service, revenue is recognised based on the difference between the purchase
price and the selling price of electricity.
The Group provides maintenance service to external parties. The related revenue is recognised
using the percentage of completion method, with the stage of completion being determined based
on proportion of costs incurred to date to the estimated total costs.
(d) Transfer of asset use rights
Interest income is recognised on a time proportion basis with reference to the deposits or the
principal outstanding and the applicable effective interest rate.
Rental income from an operating lease is recognised on a straight-line basis over the period of the
lease.
(24) Government grants
Government grants refer to the monetary or non-monetary assets obtained by the Group from the
government, including tax return, financial subsidy and etc.
Government grants are recognised when the grants can be received and the Group can comply
with all attached conditions. If a government grant is a monetary asset, it will be measured at the
amount received or receivable. If a government grant is a non-monetary asset, it will be measured
at its fair value. If it is unable to obtain its fair value reliably, it will be measured at its nominal
amount.
Government grants related to assets refer to government grants which are obtained by the Group
for the purposes of purchase, construction or acquisition of the long-term assets. Government
grants related to income refer to the government grants other than those related to assets.
Government grants related to assets are recorded as deferred income and recognised in profit or
loss on a systemic basis over the useful lives of the assets. Government grants related to income
that compensate the incurred costs, expenses or losses are recognised in profit or loss.
Government grants related to income that compensate future costs, expenses or losses are
recorded as deferred income and recognised in profit or loss in reporting the related costs,
expenses or losses; government grants related to income that compensate incurred costs,
expenses or losses are recognised in profit or loss directly in the current period. The Group applies
the presentation method consistently to the similar government grants in the financial statements.
140
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(24) Government grants (Cont’d)
Government grants that are related to ordinary activities are included in operating profit, otherwise,
they are recorded in non-operating income or expenses.
For the policy loans with favourable interest rates, the Group records the loans at the actual
amounts and calculates the interests by loan principals and the favourable interest rates.
(25) Deferred tax assets and deferred tax liabilities
Deferred tax assets and deferred tax liabilities are calculated and recognised based on the
differences arising between the tax bases of assets and liabilities and their carrying amounts
(temporary differences). Deferred tax asset is recognised for the deductible losses that can be
carried forward to subsequent years for deduction of the taxable profit in accordance with the tax
laws. No deferred tax liability is recognised for a temporary difference arising from the initial
recognition of goodwill. No deferred tax asset or deferred tax liability is recognised for the
temporary differences resulting from the initial recognition of assets or liabilities due to a
transaction other than a business combination, which affects neither accounting profit nor taxable
profit (or deductible loss). At the balance sheet date, deferred tax assets and deferred tax liabilities
are measured at the tax rates that are expected to apply to the period when the asset is realised or
the liability is settled.
Deferred tax assets are only recognised for deductible temporary differences, deductible losses
and tax credits to the extent that it is probable that taxable profit will be available in the future
against which the deductible temporary differences, deductible losses and tax credits can be
utilised.
Deferred tax liabilities are recognised for temporary differences arising from investments in
subsidiaries, associates and joint ventures, except where the Group is able to control the timing of
reversal of the temporary difference, and it is probable that the temporary difference will not
reverse in the foreseeable future. When it is probable that the temporary differences arising from
investments in subsidiaries, associates and joint ventures will be reversed in the foreseeable future
and that the taxable profit will be available in the future against which the temporary differences
can be utilised, the corresponding deferred tax assets are recognised.
Deferred tax assets and liabilities are offset when:
the deferred tax assets and liabilities are related to the same tax payer within the Group and
the same taxation authority; and,
that tax payer within the Group has a legally enforceable right to offset current tax assets
against current tax liabilities.
141
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(26) Leases
A lease that transfers substantially all the risks and rewards incidental to ownership of an asset is a
finance lease. An operating lease is a lease other than a finance lease.
(a) Operating leases
Lease payments under an operating lease are recognised on a straight-line basis over the period
of the lease, and are either capitalised as part of the cost of related assets, or charged as an
expense for the current period.
Rental income from an operating lease is recognised on a straight-line basis over the period of the
lease.
(b) Finance leases
The leased asset is recognised at the lower of the fair value of the leased asset and the present
value of the minimum lease payments. The difference between the recorded amount of the leased
asset and the minimum lease payments is accounted for as unrecognised finance charge and is
amortised using the effective interest method over the period of the lease. A long-term payable is
recorded at the amount equal to the minimum lease payments less the unrecognised finance
charge.
(27) Held for sale and discontinued operations
A non-current asset or a disposal group is classified as held for sale when all of the following
conditions are satisfied: (1) the non-current asset or the disposal group is available for immediate
sale in its present condition subject only to terms that are usual and customary for sales of such
non-current asset or disposal group; (2) the Group has entered a legally enforceable sales
agreement with other party and obtained relevant approval, and the sales transaction is expected
to be completed within one year.
Non-current assets (except for financial assets, investment properties measured at fair value and
deferred tax assets) that meet the recognition criteria for held for sale are recognised at the
amount equal to the lower of the fair value less costs to sell and the carrying amount, and the
excess of the original carrying amount over the fair value less costs to sell is recognised as asset
impairment loss.
Such non-current assets and assets and liabilities included in disposal groups classified as held for
sale are classified as current assets and current liabilities respectively, and are separately
presented in the balance sheet.
142
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(27) Held for sale and discontinued operations (Cont’d)
A discontinued operation is a component of the Group that either has been disposed of or is
classified as held for sale, and is separately identifiable and satisfies one of the following
conditions: (1) it represents a separate major line of business or geographical area of operations;
(2) it is part of a single co-ordinated plan to dispose of a separate major line of business or
geographical area of operations; and (3) it is a subsidiary acquired exclusively with a view to
resale.
The net profit from discontinued operations in the income statement includes operating profit or
loss and disposal gains or losses of discontinued operations.
(28) Segment information
The Group identifies operating segments based on the internal organisation structure,
management requirements and internal reporting system, and discloses segment information of
reportable segments which is determined on the basis of operating segments.
An operating segment is a component of the Group that satisfies all of the following conditions: (1)
the component is able to earn revenues and incur expenses from its ordinary activities; (2) whose
operating results are regularly reviewed by 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. Two or
more operating segments that have similar economic characteristics and satisfy certain conditions
can be aggregated into one single operating segment.
(29) Critical accounting estimates and judgements
The Group continually evaluates the critical accounting estimates and key judgements applied
based on historical experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstances. The critical accounting estimates and key
assumptions that have a significant risk of causing a material adjustment to the carrying amounts
of assets and liabilities within the next accounting year are outlined below:
(a) Estimates on provision for impairment of long-term assets
As described in Note 2(19), fixed assets, construction in progress, intangible assets with finite
useful lives, investment properties that are measured at cost and long-term equity investments in
subsidiaries, joint ventures and associates are tested for impairment if there’s indications that the
assets may be impaired at the balance sheet date.
When assessing whether there’s indication that the above assets are impaired, management
mainly evaluate and analyse: (1) whether events affecting asset impairment occurred; (2) whether
the present value of expected cash flows arising from the continuing use or disposal of the asset is
lower than its carrying amount; (3) whether the assumptions used in estimating the present value
of future cash flows is appropriate.
Relevant assumptions adopted by the Group to determine impairment, e.g. changes in
assumptions on discount rate and growth rate used to calculate the present value of future cash
flows, may have material impact on the present value used in the impairment test, and cause
impairment in the above-mentioned long-term assets of the Group.
143
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(29) Critical accounting estimates and judgements (Cont’d)
(b) Useful lives and residual value of fixed assets
The useful lives and residual value of fixed assets are determined by management after taking
into account their durability and past maintenance records based on the industry practice. The
useful life of the assets is reviewed at each year-end with appropriate adjustments made
accordingly.
Any changes in the useful lives and residual value of fixed assets may have significant impact on
the Group’s net profit.
(c) Income taxes
The Group is subject to income taxes in numerous jurisdictions. There are some transactions and
events for which the ultimate tax determination is uncertain during the ordinary course of
business. Significant judgement is required from the Group in determining the provision for
income taxes in each of these jurisdictions. Where the final tax outcome of these matters is
different from the amounts that were initially recorded, such differences will impact the income tax
and deferred tax provisions in the period in which such determination is made.
(d) Deferred tax assets
Whether to recognise the deferred tax assets arising from deductible losses and deductible
temporary differences largely depends on the judgement of management on whether sufficient
future taxable income that can be used to deduct deductible losses and deductible temporary
differences can be obtained in the future periods. A lot of judgements and estimates are required
to calculate the future taxable income, and tax planning strategies and the influence of overall
economic environment shall be considered at the same time. Different judgements and estimates
will impact on the recognition and amount of deferred tax assets.
When it is estimated that sufficient future taxable income, against which deductible losses and
temporary differences can be utilised, can be obtained in the future periods, deferred tax assets
are recognised to the extent that it is probable that taxable income will be available in the future
against which deductible losses and temporary differences can be utilised, using tax rates
applicable in the period when the asset would be recovered. In determining the amount of
deferred tax assets, the Group exercises judgements about the estimated timing and amount of
future taxable income, and about the tax rates applicable in the future according to the existing tax
policies and other relevant regulations. Differences between such estimates and the actual timing
and amount of future profits will affect the amount of deferred tax assets.
144
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(30) Significant changes in accounting policies
In 2018, the Ministry of Finance released the Circular on the Amendment to the Formats of Corporate Financial Statements for the Year of 2018
(Cai Kuai [2018] No. 15) and the interpretation. The financial statements are prepared in accordance with the above circular with restating
comparative figures of 2017 and without impact to net profit for 2017, net assets at 31 December 2017 and the cash flow statement for the year
ended 31 December 2017 of the Group and the Company. The impacts on the financial statements are as follows:
(a) Impacts on consolidated balance sheet and income statement are as follows:
The nature and the reasons of the The line items affected The amounts affected
changes in accounting policies
31 December 2017 1 January 2017
The Group grouped notes receivable and Accounts receivable (2,826,237,259) (2,776,061,909)
accounts receivable as notes and Notes receivable - -
accounts receivables. Notes and accounts
receivables 2,826,237,259 2,776,061,909
The Group grouped interests receivable, Interests receivable (14,923,771) (16,681,118)
dividends receivable and other Dividends receivable - -
receivables as other receivables. Other receivables 14,923,771 16,681,118
The Group grouped fixed assets and Fixed assets 14,662,233 4,304,229
fixed assets pending for disposal as fixed Fixed assets pending for
assets. disposal (14,662,233) (4,304,229)
145
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(30) Significant changes in accounting policies (Cont’d)
(a) Impacts on consolidated balance sheet and income statement are as follows (Cont’d):
The nature and the reasons of the The line items affected The amounts affected
changes in accounting policies
31 December 2017 1 January 2017
The Group grouped construction in Construction in progress 35,869,033 1,496,854
progress and construction materials in Construction materials (35,869,033) (1,496,854)
construction in progress.
The Group grouped notes payable and Accounts payable (2,219,027,261) (3,167,250,446)
accounts payable as notes and accounts Notes payable (297,611,800) (1,330,480,837)
payables. Notes and accounts payables 2,516,639,061 4,497,731,283
The Group grouped interests payable, Interests payable (98,553,104) (83,648,793)
dividends payable and other payables as Dividends payable (9,703,930) (9,703,930)
other payables. Other payables 108,257,034 93,352,723
The Group grouped long-term payables Long-term payables 64,605,011 26,675,385
and payables for specific projects as Payables for specific projects (64,605,011) (26,675,385)
long-term payables.
146
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(30) Significant changes in accounting policies (Cont’d)
(a) Impacts on consolidated balance sheet and income statement are as follows (Cont’d):
The nature and the reasons of the The line items affected The amounts affected
changes in accounting policies
2017
The Group presented research and Research and development
development expenses separately from expenses 16,890,873
general and administrative expenses. General and administrative
expenses (16,890,873)
(b) Impacts on company balance sheet and income statement are as follows:
The nature and the reasons of the The line items affected The amounts affected
changes in accounting policies
31 December 2017 1 January 2017
The Company grouped notes receivable Accounts receivable (195,462,150) (212,343,198)
and accounts receivable as notes and Notes receivable - -
accounts receivables. Notes and accounts
receivables 195,462,150 212,343,198
147
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(30) Significant changes in accounting policies (Cont’d)
(b) Impacts on company balance sheet and income statement are as follows (Cont’d):
The nature and the reasons of the The line items affected The amounts affected
changes in accounting policies
31 December 2017 1 January 2017
The Company grouped interests Interests receivable (1,698,504) (723,819)
receivable, dividends receivable and Dividends receivable (17,536,791) -
other receivables as other receivables. Other receivables 19,235,295 723,819
The Company grouped notes payable Accounts payable (221,325,935) (517,973,144)
and accounts payable as notes and Notes payable - -
accounts payables. Notes and accounts payables 221,325,935 517,973,144
The Company grouped interests payable, Interests payable (49,765,772) (48,091,022)
dividends payable and other payables as Dividends payable (9,703,930) (9,703,930)
other payables. Other payables 59,469,702 57,794,952
148
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
2 Summary of significant accounting policies and accounting estimates (Cont’d)
(30) Significant changes in accounting policies (Cont’d)
(b) Impacts on company balance sheet and income statement are as follows (Cont’d):
The nature and the reasons of the The line items affected The amounts affected
changes in accounting policies
31 December 2017 1 January 2017
The Company grouped long-term Long-term payables 8,775,514 -
payables and payables for specific Payables for specific projects
projects as long-term payables. (8,775,514) -
2017
The Company presented research and Research and development
development expenses separately from expenses 6,871,263
general and administrative expenses. General and administrative
expenses (6,871,263)
149
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for 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 (i) Taxable value added amount (Tax payable is 6%, 10% and 16%
(“VAT”) (a) calculated using the taxable sales amount
multiplied by the applicable tax rate less
deductible VAT input of the current period)
(ii) Revenue from hydropower sales 3%
City maintenance The payment amount of VAT and consumption 5% to 7%
and construction tax
tax
Educational Amount of VAT paid 3%
surcharge
Local educational Amount of VAT paid 2%
surcharge
Enterprise income Taxable income 15%, 20% and
tax (b) 25%
House property tax The rental income or residual value of the property 12% and 1.2%
(a) Pursuant to the Circular on Adjustment of Tax Rate of Value Added Tax (Cai Shui [2018] No. 32)
and related regulations jointly issued by the Ministry of Finance and the State Administration of
Taxation, the applicable tax rates of revenue arising from sales of electricity, sales of by-products
and maintenance and repair services and revenue arising from sales of heat energy of all
subsidiaries of the Company, are 16% and 10% respectively from 1 May 2018, while they were
17% and 11% respectively before then. The Group’s revenue from entrusted loans between
companies and training service is subject to VAT at the rate of 6%.
Pursuant to Notice on the Policy of Streamlining and Combination of Value-Added Tax Levy
Rates jointly issued by the Ministry of Finance and the State Administration of Taxation, revenue
from sales of electricity generated from small hydropower units at the county level or below is
subject to VAT at the rate of 3%. Three small hydropower plants of Lincang Yudean Energy Co.,
Ltd. (“Lincang Energy”), a subsidiary of the Company, are subject to VAT at the rate of 3%.
(b) Except for the subsidiaries Guangdong Yudean Dianbai Wind Power (“Dianbai Wind Power”),
Guangdong Yudean Qujie Wind Power Co., Ltd. (“Qujie Wind Power”), Guangdong Yudean
Leizhou Wind Power Co., Ltd. (“Leizhou Wind Power”), Zhanjiang Electric Co., Ltd. (“Zhanjiang
Electric”) and Zhanjiang Yuheng Electric Co., Ltd. (“Yuheng Electric”)(see Note 3(2)), the
applicable tax rate for the Company and its subsidiaries is 25%.
150
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Taxation (Cont’d)
(2) Tax preference
(a) Pursuant to the approval documents (Cai Shui [2008] No. 46 and Guo Shui Fa [2009] No. 80),
Dianbai Wind Power, Qujie Wind Power and Leizhou Wind Power are exempted from enterprise
income tax in the first three years counting from the year profits are recorded, and can enjoy half
rate reduction in the following three years. As the local taxation bureau considered that Dianbai
Wind Power and Qujie Wind Power posted profits for the first time in 2016 and Leizhou Wind
Power posted profits for the first time in 2017, the applicable enterprise income tax rates for
Dianbai Wind Power, Qujie Wind Power and Leizhou Wind Power are 0%, 0% and 0% in 2018
(2017: 0%, 0% and 0%) respectively.
In addition, 50% of VAT levied on the sales of electricity generated by Guangdong Yudean
Shibeishan Wind Power Co., Ltd. (“Shibeishan”), Guangdong Yudean Zhanjiang Wind Power
Generation Co., Ltd. (“Zhanjiang Wind Power”), Guangdong Yudean Xuwen Wind Power
Electricity Co., Ltd. (“Xuwen Wind Power”), Dianbai Wind Power, Qujie Wind Power, Leizhou
Wind Power and Huilai Wind Power will be refunded immediately in accordance with the Notice
Concerning Value Added Tax Policies on Wind Power Generation (Cai Shui [2015] No. 74).
(b) In 2008, Zhanjiang Electric, a subsidiary of the Company, was granted a High-tech Enterprise
Certificate (Certificate No.: GR201744007248) by the Department of Science & Technology of
Guangdong Province, Department of Finance of Guangdong Province, the State Taxation
Bureau of Guangdong Province and the Local Taxation Bureau of Guangdong Province on 11
December 2017. The certificate is valid for three years. Under Article 28 of the Enterprise Income
Tax Law of the People’s Republic of China and the circular ([2017] No. 24) issued by the State
Administration of Taxation, the tax prefenrence can be requested as of the year of the issue of
the high-tech enterprise certificate, and the income tax rate applicable to Zhanjiang Electric for
2018 is 15% (2017: 15%).
(c) Pursuant to the approval documents (Cai Shui [2018] No. 77), Yuheng Electric was recognised
as a small enterprise with low profits since its annual taxable income was less than RMB 1
million, so the amount of taxable income was reduced to 50% of its income and was subject to
enterprise income tax at the tax rate of 20%. Therefore, the applicable enterprise income tax rate
for Yuheng Electric is 20% (2017: 25%).
151
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements
(1) Cash at bank and on hand
31 December 2018 31 December 2017
Cash on hand 31,413 37,745
Cash at bank 592,232,767 844,241,939
Deposits with Yudean Finance (b) 4,978,118,712 4,152,300,806
Other cash balances (c) 4,000,000 -
5,574,382,892 4,996,580,490
(a) As at 31 December 2018, the Group had no offshore deposit (31 December 2017: Nil).
(b) Deposits with Yudean Finance refer to the deposits placed with Yudean Finance(Note 8(6)).
Yudean Finance is a financial institution established with the approval of the People’s Bank of
China. Both the Company and Yudean Finance are controlled by GEGC.
(c) As at 31 December 2018, other cash balances amounted to RMB 4,000,000 (31 December 2017:
Nil) and represented deposits of Huizhou Pingdian Comprehensive Energy Co., Ltd. (“Pingdian
Comprehensive”), a subsidiary of the Group, for the purpose of applying for performance
guarantees for admission to sales of electricity at Guangdong Power Exchange Centre.
(2) Notes and accounts receivables
31 December 2018 31 December 2017
Accounts receivable (a) 3,358,331,949 2,826,237,259
(a) Accounts receivable
31 December 2018 31 December 2017
Accounts receivable 3,358,489,658 2,826,237,259
Less: Provision for bad debts (157,709) -
3,358,331,949 2,826,237,259
(i) The ageing of accounts receivable is analysed as follows:
31 December 2018 31 December 2017
Within 1 year (inclusive) 3,358,257,370 2,815,185,386
1 to 2 years (inclusive) 144,000 11,051,873
2 to 3 years (inclusive) 88,288 -
3,358,489,658 2,826,237,259
As at 31 December 2018, there were no accounts receivable overdue but unimpaired (31
December 2017: Nil).
152
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(2) Notes and accounts receivables (Cont’d)
(a) Accounts receivable (Cont’d)
(ii) Accounts receivable are analysed by categories as follows:
31 December 2018 31 December 2017
Ending balance Provision for bad debts Ending balance Provision for bad debts
Amount % of total balance Amount Provision % Amount % of total balance Amount Provision %
With amounts that are individually significant
and that the related provision for bad debts is
provided on the individual basis - - - - - - - -
With amounts that the related provision for bad
debts is provided on the grouping basis
Low-risk grouping 3,345,279,051 99.61% - - 2,826,237,259 100.00% - -
Ageing analysis grouping 13,210,607 0.39% (157,709) 1.19% - - - -
With amounts that are not individually
significant but that the related provision for
bad debts is provided on the individual basis - - - - - - - -
3,358,489,658 100.00% (157,709) 0.01% 2,826,237,259 100.00% - -
(iii) Accounts receivable that the related provision for bad debts is provided on grouping basis using the ageing analysis method are analysed as follows:
31 December 2018 31 December 2017
Ending balance Provision for bad debts Ending balance Provision for bad debts
Amount Amount Provision % Amount Amount Provision %
Within 1 year (inclusive) 13,122,319 (131,223) 1.00% - - -
2 to 3 years (inclusive) 88,288 (26,486) 30.00% - - -
13,210,607 (157,709) 1.19% - - -
(iv) The provision for bad debts in the current year was RMB 157,709 (2017: Nil). There was no recovered or reversed provision for bad debts and there was
no accounts receivable written off (2017: Nil).
153
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(2) Notes and accounts receivables (Cont’d)
(a) Accounts receivable (Cont’d)
(v) As at 31 December 2018, the five largest amounts of accounts receivable aggregated by debtors
were analysed as follows:
Percentage in
Amount of total balance of
provision for accounts
Name of entity Amount bad debts receivable
Total amount of five largest accounts
receivable 3,319,367,108 - 98.84%
As at 31 December 2018, the Group had accounts receivable with a carrying amount of RMB
396,323,295 (31 December 2017: RMB 402,847,793). These accounts receivable, together with the
right to collect electric charges, were pledged to banks to obtain long-term borrowings of RMB
2,765,356,586, including RMB 213,259,115 due within one year (31 December 2017: RMB
2,698,978,707, including RMB 209,579,575 due within one year) (see Note 4(25)(a) and (27)(a)).
(3) Advances to suppliers
31 December 2018 31 December 2017
Advances to suppliers 906,566,047 826,786,279
Less: Provision for bad debts (305,001) -
906,261,046 826,786,279
(a) The ageing of advances to suppliers is analysed below:
31 December 2018 31 December 2017
Amount % of total balance Amount % of total balance
Within 1 year 898,864,235 99.16% 825,247,024 99.81%
1 to 2 years 6,388,849 0.70% 963,292 0.12%
2 to 3 years 756,896 0.08% 8,640 0.00%
Over 3 years 556,067 0.06% 567,323 0.07%
906,566,047 100.00% 826,786,279 100.00%
As at 31 December 2018, advances to suppliers with ageing over one year amounted to RMB
7,701,812 (31 December 2017: RMB 1,539,255), mainly including prepayments for spare parts and
materials.
154
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(3) Advances to suppliers (Cont’d)
(b) Provision for bad debts in the current year
31 December 2018 31 December 2017
Opening balance - -
Increase in the current year (305,001) -
Ending balance (305,001) -
(c) As at 31 December 2018, the five largest advances to suppliers collected by debtors were analysed
as follows:
Amount % of total balance
Total of the five largest advances to
suppliers 804,763,113 88.80%
(4) Other receivables
31 December 2018 31 December 2017
Supplementary medical insurance fund
receivable 74,967,255 -
Receivables from sales of by-products 61,562,471 140,445,384
Land deposits receivable 23,446,000 23,446,000
Interests receivable 18,856,569 14,923,771
Reserves receivable 8,207,879 6,996,288
Project expenses paid on behalf 5,423,464 6,236,199
Government grants receivable 5,208,887 6,474,557
Others 34,749,156 32,156,092
232,421,681 230,678,291
Less: Provision for bad debts (9,444,855) (6,846,527)
222,976,826 223,831,764
155
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(4) Other receivables (Cont’d)
(a) The ageing of other receivables is analysed as follows:
31 December 2018 31 December 2017
Within 1 year 188,702,751 213,641,978
1 to 2 years 33,895,584 7,803,912
2 to 3 years 2,033,130 841,160
Over 3 years 7,790,216 8,391,241
232,421,681 230,678,291
The ageing starts from the date when other receivables are recognised.
As at 31 December 2018, other receivables of RMB 35,526,080 (31 December 2017: RMB
8,300,017) were past due, but based on the analysis of the debtors’ financial status and previous
credit record, no individual provisions for bad debts were provided, nevertheless the collective
provisions were provided after assessment on grouping basis accordingly. The past-due ageing of
these other receivables was analysed as follows:
31 December 2018 31 December 2017
1 to 2 years 33,517,042 5,912,738
2 to 3 years 1,953,507 696,885
Over 3 years 55,531 1,690,394
35,526,080 8,300,017
156
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(4) Other receivables (Cont’d)
(b) Other receivables are analysed by categories as follows:
31 December 2018 31 December 2017
Ending balance Provision for bad debts Ending balance Provision for bad debts
% of total % of total
Amount balance Amount Provision % Amount balance Amount Provision %
With amounts that are individually
significant and that the related
provision for bad debts is provided on
the individual basis - - - - - - - -
With amounts that the related provision
for bad debts is provided on the
grouping basis
Low-risk grouping 183,079,035 78.77% - - 223,831,764 97.03% - -
Ageing analysis grouping (c) 42,334,934 18.21% (2,437,143) 5.76% - - - -
With amounts that are not individually
significant but that the related
provision for bad debts is provided on
the individual basis 7,007,712 3.02% (7,007,712) 100.00% 6,846,527 2.97% (6,846,527) 100.00%
232,421,681 100.00% (9,444,855) 4.06% 230,678,291 100.00% (6,846,527) 2.97%
(c) Accounts receivable that the related provision for bad debts is provided on grouping basis using the ageing analysis method are analysed as follows:
31 December 2018 31 December 2017
Ending balance Provision for bad debts Ending balance Provision for bad debts
Amount Amount Provision % Amount Amount Provision %
Within 1 year 32,302,549 (323,025) 1.00% - - -
1 to 2 years 7,216,752 (721,675) 10.00% - - -
2 to 3 years 2,033,130 (609,940) 30.00% - - -
Over 3 years 782,503 (782,503) 100.00% - - -
42,334,934 (2,437,143) 5.76% - - -
157
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(4) Other receivables (Cont’d)
(d) Provision for bad debts in the current year
31 December 2018 31 December 2017
Opening balance (6,846,527) (6,423,698)
Increase in the current year (2,598,328) (422,829)
Ending balance (9,444,855) (6,846,527)
(e) As at 31 December 2018, the five largest other receivables by debtors were analysed as follows:
% of total Provision for bad
Nature Balance Ageing balance debts
Taikang Pension Company Supplementary
Limited Guangdong Branch medical insurance
(“Taikang Pension”) fund receivable 74,967,255 Within 1 year 32.25% -
Guangdong Yudean
Environmental Protection
Co., Ltd. (“Yudean Receivables from
Environmental”) sales of by-products 54,456,181 Within 1 year 23.43% -
Maoming Port Bohe New Port
Construction Headquarters Land deposits
Office receivable 23,446,000 1 to 2 years 10.09% -
Government grants Within 2
Huilai Taxation Bureau receivable 5,147,593 years 2.21% -
Guangzhou Huading Building Receivables from
Materials Co., Ltd. sales of by-products 2,803,643 Over 3 years 1.21% (2,803,643)
160,820,672 69.19% (2,803,643)
(f) As at 31 December 2018, the Group's government grants recognised at amounts receivable were
analysed as follows:
Estimated time, amount and basis of
Government grants Balance Ageing collection
Immediate refund of Expected to be fully recovered by
Huilai Taxation Bureau VAT 5,147,593 Within 2 years June 2018
Immediate refund of Expected to be fully recovered by
Xuwen Taxation Bureau VAT 61,294 Within 1 year June 2018
5,208,887
(5) Inventories
(a) Inventories are summarised by categories as follows:
31 December 2018 31 December 2017
Provision for Provision for
decline in the decline in the
Ending value of Carrying Ending value of Carrying
balance inventories amount balance inventories amount
Fuel 780,978,630 (1,429,525) 779,549,105 807,187,691 - 807,187,691
Spare parts 697,094,406 (18,128,209) 678,966,197 714,566,924 (17,420,859) 697,146,065
Others 23,301,968 - 23,301,968 23,301,017 - 23,301,017
1,501,375,004 (19,557,734) 1,481,817,270 1,545,055,632 (17,420,859) 1,527,634,773
158
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(5) Inventories (Cont'd)
(b) Provision for decline in the value of inventories is analysed as follows:
Increase in the Decrease in the
31 December 2017 current year current year 31 December 2018
Spare parts (17,420,859) (707,350) - (18,128,209)
Fuel - (1,429,525) - (1,429,525)
(17,420,859) (2,136,875) - (19,557,734)
As at 31 December 2018, the Group made provision for decline in the value of spare parts because
some spare parts were rendered useless and impaired as a result of technology upgrade, and it
made provision for decline in the value of fuel because the heavy oil could not be used as fuel as
before and was impaired due to the outage of heating boilers at Phase I of Guangdong Huizhou
Natural Gas Power Co., Ltd. (“Huizhou Natural Gas”), a subsidiary of the Company.
(c) The Group did not have any reversal or write-off of provision for decline in the value of inventories
in 2018.
(6) Other current assets
31 December 2018 31 December 2017
VAT to be deducted 613,635,937 1,106,133,996
Prepaid income tax 4,181,711 31,389,365
Others 35,828 59,108
617,853,476 1,137,582,469
(7) Available-for-sale financial assets
31 December 2018 31 December 2017
Measured at fair value
- Available-for-sale equity instruments (a) 1,139,806,331 408,992,985
Measured at cost
- Available-for-sale equity instruments (b) 426,000,000 859,651,686
1,565,806,331 1,268,644,671
Less: Provision for impairment - (25,010,686)
1,565,806,331 1,243,633,985
159
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(7) Available-for-sale financial assets (Cont’d)
(a) Available-for-sale financial assets summarised by relevant information:
Available-for-sale financial assets measured at fair value:
31 December 2018 31 December 2017
Available-for-sale equity instruments
- Fair value 1,139,806,331 408,992,985
- Cost 435,463,816 255,328,616
- Accumulated amount included in other
comprehensive income 704,342,515 153,664,369
- Accumulated provision for impairment - -
(i) As at 31 December 2018, the Company held 12,600,000 tradable A shares in Shenzhen Energy
with fair value of RMB 66,150,000, and the investment cost was RMB 15,890,628. The investment
was stated at fair value with reference to the market price. During the year, losses at fair value
amounted to RMB 10,206,000 (2017: losses of RMB 10,206,000), and other comprehensive
income was adjusted downwards accordingly.
(ii) As at 31 December 2018, the Company held 55,532,250 tradable A shares in Shenergy with fair
value of RMB 270,997,380, and the investment cost was RMB 235,837,988. The investment was
stated at fair value with reference to the market price. During the year, losses at fair value
amounted to RMB 54,421,605 (2017: losses of RMB 555,323), and other comprehensive income
was adjusted downwards accordingly.
(iii) As at 31 December 2018, the Company held 1,800,000 shares of GMG International Tendering
Co., Ltd. traded at the National Equities Exchange and Quotations system with fair value of RMB
3,618,000, and the investment cost was RMB 3,600,000. The investment was stated at fair value
with reference to the market price. During the year, losses at fair value amounted to RMB
3,600,000 (2017: gains of RMB 18,000), and other comprehensive income was adjusted
downwards accordingly.
(iv) Pursuant to the Proposal on Involvement in Capital and Share Increase of Shenzhen Capital
Group Co., Ltd. approved by the Board of Directors in September 2018, the Company was
permitted to make a capital injection of RMB 213,034,000 to Shenzhen Capital Group Co., Ltd.
(“SCG”) at its original proportion of shareholding. A capital injection of RMB 65,135,200 was made
in 2018. A revaluation of fair value has been conducted for the equity investment in SCG with
reference to the valuation upon capital injection. The equity investment is subsequently measured
using the fair value model instead of the cost model as of the date of capital injection. As at 31
December 2018, the fair value of the equity that the Company held in SCG amounted to RMB
799,040,951, and the investment cost was RMB 180,135,200. During the year, gains at fair value
amounted to RMB 618,905,751 (2017: Not applicable), and other comprehensive income was
adjusted upwards accordingly.
160
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(7) Available-for-sale financial assets (Cont’d)
(b) Available-for-sale financial assets measured at cost:
% of Cash dividend
31 December Transfer out in 31 December shareholding in in the current
2017 the current year 2018 investees year
Available-for-sale equity instruments
- cost
- SCG (Note 4(7)(a)(iv)) 115,000,000 (115,000,000) - 3.67% 16,978,500
- Sunshine Insurance Group
Corporation 356,000,000 - 356,000,000 3.38% 24,500,000
- South Sea Wind Electricity
Development Co., Ltd. 70,000,000 - 70,000,000 10.00% -
- Weixin Yuntou Yudean Zhaxi
Energy Co., Ltd. (“Weixin
Yuntou”)(i) 318,651,686 (318,651,686) - 19.55% -
859,651,686 (433,651,686) 426,000,000 41,478,500
Available-for-sale equity instruments
- provision for impairment
- Weixin Yuntou (i) (25,010,686) 25,010,686 -
834,641,000 (408,641,000) 426,000,000
The available-for-sale financial assets measured at cost mainly include the unlisted equity investments
held by the Company which are not quoted in an active market and whose fair value cannot be reliably
measured as the variability in the range of reasonable fair value measurements is significant and the
probabilities of the various estimates used to determine the fair value cannot be reasonably determined.
(i) In April 2018, Yunnan Provincial Power Investment Co., Ltd. (“YPI”), the controlling shareholder of
Weixin Yuntou, received 2.49% equity of Weixin Yuntou held by Yunnan Bureau of Coalfield Geology.
The Company has significant influence over the operation of Weixin Yuntou after the equity structure is
altered. The equity investment is accounted for as long-term equity investments in associates accounted
for using the equity method as of the date of equity structure alteration. At the date of transfer, the fair
value of the equity assessed by Weixin Yuntou was RMB 288,918,092, and the investment loss
recognised upon transfer was RMB 4,722,908.
161
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(8) Long-term receivables
31 December 2018 31 December 2017
Ending Provision for Carrying Ending Provision for Carrying Discount rate
Item balance bad debts amount balance bad debts amount range
Sales and leaseback 5.40% to
deposits 89,762,071 - 89,762,071 84,358,065 - 84,358,065 7.30%
As at 31 December 2018, the Group’s long-term receivables mainly represented the present value
of RMB 100,000,000 of deposits paid for fixed assets held under sales and leaseback (31
December 2017: RMB 130,000,000).
(9) Long-term equity investments
31 December 2018 31 December 2017
Joint ventures (a) 602,584,896 605,678,402
Associates (b) 5,817,560,544 5,195,328,010
6,420,145,440 5,801,006,412
Less: Provision for impairment of long-term
equity investments (25,010,686) -
6,395,134,754 5,801,006,412
162
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(9) Long-term equity investments (Cont’d)
(a) Joint ventures
Movements for the current year
Share of net Cash Provision for
profit/(loss) Share of other Share of other dividends or impairment at
31 December Increase in Decrease in under equity comprehensive changes in profits Provision for 31 December the end of the
2017 investment investment method income equity declared impairment Others 2018 year
Guangdong Electric
Power Industry Fuel
Co., Ltd. (“Industry
Fuel”) 605,678,402 - - 72,400,480 - - (75,493,986) - - 602,584,896 -
The equity-related information of the joint ventures is set out in Note 6(2).
163
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(9) Long-term equity investments (Cont’d)
(b) Associates
Movements for the current year
Transfer from
provision for
Transfer from Share of net Share of impairment of Provision for
available-for-sa profit/(loss) Share of other other Cash dividends Provision available-for-s impairment at
31 December Increase in le financial under equity comprehensive changes in or profits for ale financial 31 December the end of the
2017 investment assets method income equity declared impairment assets 2018 year
Shanxi Yudean Energy Co., Ltd.
(“Shanxi Yudean Energy”) 1,216,441,246 - - 227,748,560 - - (4,000,000) - - 1,440,189,806 -
Yudean Finance 700,701,205 - - 85,475,612 - - (57,221,066) - - 728,955,751 -
Guangdong Guohua Yudean
Electric Co., Ltd. (“Taishan
Electric”) 1,961,475,609 - - 129,315,387 - - (121,582,000) - - 1,969,208,996 -
Guangdong Yudean Shipping
Co., Ltd. (“Yudean Shipping”) 941,757,936 - - 1,822,952 - - (8,469,538) - - 935,111,350 -
Guangdong Yudean Western
Investment Co., Ltd. (“Western
Investment”) 153,696,713 - - (18,044,364) - - - - - 135,652,349 -
Huaneng Shantou Wind Power
Co., Ltd. (“Huaneng Shantou
Wind Power”) 62,750,674 - - 4,187,013 - - (12,672,500) - - 54,265,187 -
Yangshan Jiangkeng Hydropower
Co., Ltd. (“Yangshan
Jiangkeng”) 5,673,426 - - 874,094 - - (852,810) - - 5,694,710 -
Yangshan Zhongxinkeng Electric
Co., Ltd. (“Yangshan
Zhongxinkeng”) 7,509,371 - - 1,000,767 - - (701,312) - - 7,808,826 -
Guangdong Yudean Property
Self-Insurance Co., Ltd.
(“Yudean Property
Self-Insurance”)(i) 145,321,830 98,000,000 - 14,704,347 - - - - - 258,026,177 -
Weixin Yuntou (Note 4(7)(b)(i)) - - 313,928,778 (31,281,386) - - - - (25,010,686) 257,636,706 (25,010,686)
5,195,328,010 98,000,000 313,928,778 415,802,982 - - (205,499,226) - (25,010,686) 5,792,549,858 (25,010,686)
(i) In April 2018, the Company made an additional investment of RMB 98,000,000 to Yudean Property Self-Insurance, keeping an investment proportion of 49% in
total investment (31 December 2017: 49%).
The equity-related information of the associates is set out in Note 6(2).
164
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(10) Investment properties
Buildings
Cost
- Opening balance 20,135,165
- Additions in the current year 3,215,518
- Ending balance 23,350,683
Accumulated depreciation
- Opening balance (11,838,526)
- Increase in the current year (701,435)
- Ending balance (12,539,961)
Carrying amount
- Ending balance 10,810,722
- Opening balance 8,296,639
(11) Fixed assets
31 December 2018 31 December 2017
Fixed assets (a) 41,146,148,282 40,996,206,316
Fixed assets pending for disposal (b) 11,446,566 14,662,233
41,157,594,848 41,010,868,549
165
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(11) Fixed assets (Cont’d)
(a) Fixed assets
Power generation
Buildings equipment Motor vehicles Other equipment Total
Cost
31 December 2017 18,246,875,839 55,080,195,082 609,324,301 1,272,376,920 75,208,772,142
Increase in the current year
Purchase 57,515,088 39,349,566 18,835,522 25,237,123 140,937,299
Transfer from
construction in
progress (iii) 346,590,776 3,249,655,415 - 25,039,923 3,621,286,114
Donations received 25,212,942 3,533,292 1,149,501 513,684 30,409,419
Adjustment for project
settlement differences - (49,198,552) - - (49,198,552)
Disposals and scrap in the
current year (77,513,238) (166,439,861) (27,326,297) (10,040,460) (281,319,856)
31 December 2018 18,598,681,407 58,157,094,942 601,983,027 1,313,127,190 78,670,886,566
Accumulated depreciation
31 December 2017 (6,130,373,600) (25,913,014,678) (451,460,572) (831,112,010) (33,325,960,860)
Increase in the current year
Provision (ii) (416,039,523) (2,873,127,677) (19,937,352) (58,909,187) (3,368,013,739)
Decrease in the current
year
Disposal and scrap 26,067,496 86,125,573 25,690,061 8,385,647 146,268,777
31 December 2018 (6,520,345,627) (28,700,016,782) (445,707,863) (881,635,550) (36,547,705,822)
Provision for impairment
31 December 2017 (117,320,986) (764,055,146) (1,233,218) (3,995,616) (886,604,966)
Increase in the current year
Provision (iv) (20,472,216) (130,232,756) (422,917) (8,298) (151,136,187)
Decrease in the current
year
Disposal and scrap - 60,708,691 - - 60,708,691
31 December 2018 (137,793,202) (833,579,211) (1,656,135) (4,003,914) (977,032,462)
Book balance
31 December 2018 11,940,542,578 28,623,498,949 154,619,029 427,487,726 41,146,148,282
31 December 2017 11,999,181,253 28,403,125,258 156,630,511 437,269,294 40,996,206,316
166
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(11) Fixed assets (Cont’d)
(a) Fixed assets (Cont’d)
(i) As at 31 December 2018, no power generation equipment was pledged as collateral for long-term
borrowings. (31 December 2017: the carrying amount of RMB 757,878,678 and the cost of RMB
2,562,570,238 pledged as collateral for long-term borrowings of RMB 85,000,000).
As at 31 December 2017 and 31 December 2018, no buildings were pledged as collateral for long-term
borrowings.
(ii) In 2018, the Group’s depreciation amount charged for fixed assets was RMB 3,368,013,739 (2017:
RMB 3,499,179,128), among which RMB 3,317,059,002 (2017: RMB 3,446,599,794), RMB 45,160,260
(2017: RMB 46,987,909), RMB 168,621 (2017: RMB 4,185) and RMB 5,625,856 (2017: RMB
5,587,240) were charged to cost of sales, general and administrative expenses, selling and distribution
expenses and construction in progress respectively.
(iii) The costs of fixed assets transferred from construction in progress amounted to RMB 3,621,286,114
(2017: RMB 2,407,077,383)(Note 4(12)(a)(i)).
(iv) Impairment of fixed assets
In 2018, movements of provision for impairment of fixed assets were as follows:
31 December Increase in the Decrease in the 31 December
2017 current year current year 2018
Guangdong Yuejia Electric Co., Ltd. (“Yuejia
Electric”) (Note 1) 480,449,596 - - 480,449,596
Xuwen Wind Power (Note 2) 126,877,473 - - 126,877,473
Zhanjiang Zhongyue Energy Co., Ltd.
(“Zhongyue Energy”) (Note 3) 12,662,964 - - 12,662,964
Guangdong Red Bay Power Generation Co.,
Ltd. (“Red Bay Power”) (Note 3) 93,825,445 - (45,227,916) 48,597,529
Guangdong Electric Power Development Co.,
Ltd. Shajiao A Power Plant (“Shajiao A
Power Plant”) (Note 3, 4) 35,959,298 40,395,369 - 76,354,667
Zhanjiang Electric (Note 3) 29,292,346 1,851,125 (5,242,196) 25,901,275
Guangdong Yudean Jinghai Power Co., Ltd.
(“Jinghai Power”) (Note 3) 23,694,296 - (10,238,579) 13,455,717
Guangdong Shaoguan Yuejiang Electric Power
Co., Ltd. (“Yuejiang Power”) (Note 3) 54,091,864 - - 54,091,864
Maoming Zhenneng Thermal Power Co., Ltd.
(“Maoming Zhenneng”) (Note 3) 29,751,684 - - 29,751,684
Lincang Energy (Note 5) - 82,261,857 - 82,261,857
Huizhou Natural Gas (Note 6) - 23,895,462 - 23,895,462
Guangdong Province Wind Power Generation
Co., Ltd. (“Guangdong Wind Power”) - 2,732,374 - 2,732,374
886,604,966 151,136,187 (60,708,691) 977,032,462
167
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(11) Fixed assets (Cont’d)
(iv) Impairment of fixed assets (Cont’d)
Note 1 Impairment of the asset groups related to generator units of Yuejia Electric
The four generator units of Yuejia Electric were shut down in August 2016. As at 31 December
2018, the disposal of such assets was not completed. As at 31 December 2017 and 31 December
2018, the balance of provision for impairment of the asset groups related to generator units of
Yuejia Electric was RMB 480,449,596.
Note 2 Impairment of generator units of Xuwen Wind Power
In July 2014, super typhoon Rammasun slammed the Yongshi Wind Power Plant owned by Xuwen
Wind Power. Eighteen generator units were destroyed (Cost of the generator units was RMB
138,358,965, with accumulated depreciation of RMB 11,481,492). As the units were completely
destroyed, management recorded provision of RMB 126,877,473 for impairment of these units
against their full carrying amounts. As at 31 December 2018, the fixed assets were yet to be
disposed.
Note 3 Impairment of ultra-low emissions, energy-saving, and catalyst of denitrification projects
According to Ultra-low Emissions and Energy-saving Transformation Work Program in Full
Operation (Huan Fa [2015] No. 164) jointly issued by Ministry of Environmental Protection,
National Development and Reform Commission and Bureau of Energy, it required fully operating
ultra-low emissions and energy-saving transformation and reducing coal consumption and
pollutant discharge. For this purpose, the Group made specific plans to propel the implementation
of ultra-low emissions and energy-saving program, so that the reconstruction project of its
coal-fired units could be accomplished on schedule and run steadily. Based on the specific
circumstance of implementation of the Group’s coal-fired units on the program, certain part of
equipment units are required to be dismantled or scrapped in advance. The Group recorded
corresponding provision for impairment according to the expected recoverable amounts of catalyst
of denitrification.
As at 31 December 2017, the balance of provision for impairment of ultra-low emissions,
energy-saving, and catalyst of denitrification projects was RMB 279,277,897. In 2018, the provision
for impairment of the fixed assets amounting to RMB 60,708,691 was reversed due to
dismantlement and disposal of related assets.
168
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(11) Fixed assets (Cont’d)
(iv) Impairment of fixed assets (Cont’d)
Note 4 Impairment of the asset groups related to generator units of Shajiao A Power Plant
Pursuant to the Circular on Shutdown 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 are expected to be shut down by the
end of 2019 and 4# and 5# generator units are expected to be shut down by the end of 2023. In
2018, the Group carried out tests for impairment of the asset groups related to generator units of
Shajiao A Power Plant and made a provision for impairment of power generation equipment of 1#
generator unit, amounting to RMB 40,395,369.
Note 5 Impairment of the asset groups related to generator units and goodwill of Lincang Energy
As the competition in Yunnan hydropower market is fierce, Lincang Energy is suffering from
continuous operation loss. In 2018, the Group carried out tests for impairment of the asset groups
related to generator units of Lincang Energy and made a provision for impairment, in which that of
fixed assets amounted to RMB 82,261,857 and that of intangible assets amounted to RMB
56,502,373, as the carrying amount of related asset groups was lower than the recoverable
amount.
In addition, on 5 January 2015, the Group exchanged 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.
The aforesaid recoverable amounts were determined based on the present value of the expected
future cash flows of related asset groups and the discount rate of 9.98% using the valuation model.
Note 6 Pursuant to the Circular on Shutdown of Heating Boilers upon Operation of Huizhou LNG Project
Phase II issued by Huizhou municipal government and the Reply to the Environmental
Assessment on Cogeneration Expansion Project of Huizhou LNG Power Plant (Yue Huan Shen
[2012] No. 291) issued by the Department of Environmental Protection of Guangdong Province, it
is required to shut down the dual-fuel heating boilers before the environmental acceptance check
of the project completion in prevention of pollution and ecological damages. As such heating
boilers were shut down in 2018, management recognised impairment of these assets amounting to
RMB 23,895,462.
169
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(11) Fixed assets (Cont’d)
(v) Fixed assets held under finance leases
Accumulated
Cost depreciation Carrying amount
31 December 2018
Power generation equipment 2,962,401,108 (1,303,446,281) 1,658,954,827
31 December 2017
Power generation equipment 3,621,850,800 (1,634,876,213) 1,986,974,587
Details of the future lease payments of fixed assets held under finance leases are disclosed in Note
4(29).
(vi) Fixed assets with pending certificates of ownership:
Reasons for not obtaining certificates
Carrying amount of title yet
Buildings 306,915,865 Awaiting government approval
As at 31 December 2018, after consulting 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. In addition, the certificates of title for some
buildings with the carrying amount of RMB 132,436,039 were obtained in February 2019.
(b) Fixed assets pending for disposal
31 December 2018 31 December 2017
Scraped parts of power generation
equipment 11,136,365 14,622,066
Other equipment 310,201 40,167
11,446,566 14,662,233
(12) Construction in progress
31 December 2018 31 December 2017
Construction in progress (a) 7,739,308,786 8,467,687,340
Construction materials (b) 1,445,557 35,869,033
7,740,754,343 8,503,556,373
170
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(12) Construction in progress (Cont’d)
(a) Construction in progress
31 December 2018 31 December 2017
Provision for Provision for
Ending balance impairment Carrying amount Ending balance impairment loss Carrying amount
Bohe Coal integration project 5,412,887,911 - 5,412,887,911 5,301,125,305 - 5,301,125,305
Huizhou Natural Gas thermal and power
cogeneration expansion project 554,922,342 - 554,922,342 1,368,242,612 - 1,368,242,612
Qujie Wailuo offshore wind power project 543,716,851 - 543,716,851 - - -
Yangjiang Shapa offshore wind power
project 232,363,528 - 232,363,528 85,471,097 - 85,471,097
Huadu thermal and power cogeneration
project 89,786,127 - 89,786,127 45,817,111 - 45,817,111
Zhuhai Jinwan Electric offshore wind power
project 43,915,032 - 43,915,032 12,873,258 - 12,873,258
Lincang Dayakou Hydropower Station 37,296,440 - 37,296,440 29,048,654 - 29,048,654
Red Bay No.5&6 generator units 26,446,446 - 26,446,446 26,446,446 - 26,446,446
Xuwen Shiban Ling wind power project 3,741,000 - 3,741,000 224,363,966 - 224,363,966
Jinghai 1-4# generators ultra-low emission
reduction alteration project 2,580,251 - 2,580,251 41,786,331 - 41,786,331
Xuwen Qujie Ling wind power project - - - 312,791,806 - 312,791,806
Zhongyue 1, 2 # generator units alteration
project - - - 317,584,933 - 317,584,933
Zhanjiang Electric 1-4# generators
ultra-low emission reduction alteration
project - - - 43,214,650 - 43,214,650
Humen Electric 2*1000MW project 137,373,040 (137,373,040) - 137,373,040 (137,373,040) -
Other technology improvement projects 437,488,696 - 437,488,696 356,532,229 (886,463) 355,645,766
Other infrastructure construction projects 382,886,815 (28,722,653) 354,164,162 318,181,628 (14,906,223) 303,275,405
7,905,404,479 (166,095,693) 7,739,308,786 8,620,853,066 (153,165,726) 8,467,687,340
171
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(12) Construction in progress (Cont’d)
(a) Construction in progress (Cont’d)
(i) Movements of major construction in progress
Including:
Proportion of Capitalised
Transfer to fixed investment to Capitalised borrowing
31 December Increase in the assets (Note Other 31 December the budget Project borrowing costs for the Capitalisation
Project name Budget 2017 current year 4(11)(a)(iii)) Impairment decreases 2018 (%) progress costs year rate Source of fund
Bohe Electric Power
Generation Borrowings and
integration project 9,785,950,000 5,301,125,305 335,461,627 (37,912,354) - (185,786,667) 5,412,887,911 57.60% 49.85% 236,839,166 85,116,205 4.41% own funds
Huizhou Natural
Gas thermal and
power
cogeneration Borrowings and
expansion project 3,326,370,000 1,368,242,612 1,190,395,261 (1,897,155,707) - (106,559,824) 554,922,342 76.92% 98.00% 63,550,006 43,253,357 4.41% own funds
Qujie Wailuo
offshore wind Borrowings and
power project 7,339,450,000 - 543,716,851 - - - 543,716,851 7.41% 7.41% 2,602,656 2,602,656 4.41% own funds
Yangjiang Shapa
offshore wind
power project 5,999,710,000 85,471,097 146,892,431 - - - 232,363,528 3.87% 3.87% - - - Own funds
Huadu thermal and
power
cogeneration
project 3,593,160,000 45,817,111 43,969,016 - - - 89,786,127 2.50% 2.50% - - - Own funds
Zhuhai Jinwan
Electric offshore
wind power project 5,659,710,000 12,873,258 31,041,774 - - - 43,915,032 0.78% 0.09% - - - Own funds
Lincang Dayakou
Hydropower Borrowings and
Station 1,209,578,400 29,048,654 8,247,786 - - - 37,456,841 93.56% 93.56% 142,886,856 - - own funds
Red Bay No.5&6
generator units 7,714,370,000 26,446,446 - - - - 26,446,446 0.34% 0.50% - - - Own funds
Xuwen Shiban Ling Borrowings and
wind power project 460,639,300 224,363,966 77,767,617 (268,901,222) - (29,489,361) 3,741,000 70.86% 70.86% 12,624,058 4,481,254 4.41% own funds
Jinghai 1-4#
generators
ultra-low emission
reduction alteration
project 558,000,000 41,786,331 125,063,851 (162,243,285) - (2,026,646) 2,580,251 80.43% 99.00% - - - Own funds
Sub-total 7,135,174,780 2,502,556,214 (2,366,212,568) - (217,302,674) 6,947,655,928 458,502,742 135,453,472
172
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(12) Construction in progress (Cont’d)
(a) Construction in progress (Cont’d)
(i) Movements of major construction in progress (Cont'd)
Including:
Proportion of Capitalised
Transfer to fixed investment to Capitalised borrowing
31 December Increase in the assets (Note Other 31 December the budget Project borrowing costs for the Capitalisation
Project name Budget 2017 current year 4(11)(a)(iii)) Impairment decreases 2018 (%) progress costs year rate Source of fund
Xuwen Qujie Ling
wind power Borrowings and
project 466,450,000 312,791,806 60,046,198 (347,914,084) - (24,923,920) - 84.82% 100.00% 15,220,407 3,825,137 4.41% own funds
Zhongyue 1, 2 #
generator units Borrowings and
alteration project 531,200,000 317,584,933 113,864,919 (431,449,852) - - - 81.10% 100.00% 3,824,722 1,524,444 4.90% own funds
Zhanjiang Electric
1-4# generators
ultra-low emission
reduction alteration
project 259,000,000 43,214,650 58,563,947 (101,778,597) - - - 84.62% 100.00% - - - Own funds
Other infrastructure
construction Not Not Not
projects applicable 303,275,405 65,576,693 (871,506) (13,816,430) - 354,164,162 applicable applicable - - - Own funds
Other technology
improvement Not Not Not Borrowings and
projects applicable 355,645,766 456,996,183 (373,059,507) - (2,093,746) 437,488,696 applicable applicable 532,759 532,759 - own funds
Sub-total 1,332,512,560 755,047,940 (1,255,073,546) (13,816,430) (27,017,666) 791,652,858 19,577,888 5,882,340
Total 8,467,687,340 3,257,604,154 (3,621,286,114) (13,816,430) (350,880,164) 7,739,308,786 478,080,630 141,335,812
Other decreases of construction in progress during the year mainly included revenue from trial operation, transfer to other non-current assets (Note 4(12)(a)(iv)),
intangible assets, etc.
173
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(12) Construction in progress (Cont’d)
(a) Construction in progress (Cont’d)
(ii) Provision for impairment of construction in progress
31 December Increase in the Decrease in the 31 December
Item 2017 current year current year 2018 Reason for provision
Humen Electric 2*1000MW project (137,373,040) - - (137,373,040) Stoppage of construction
Shajiao A4# coal yard sea-fill yard capacity Impairment of upfront expenses
increase project (5,802,000) - - (5,802,000) for construction in progress
Impairment of upfront expenses for Guangdong Impairment of upfront expenses
Wind Power project (5,750,094) (9,272,893) - (15,022,987) for construction in progress
Impairment of upfront expenses for Lincang Impairment of upfront expenses
Hydropower project (3,354,129) - - (3,354,129) for construction in progress
Impairment of upfront expenses for Guangqian Impairment of upfront expenses
Electric Project Phase II - (4,543,537) - (4,543,537) for construction in progress
Impairment of upfront expenses
Zhanjiang Electric old office building renovation (886,463) - 886,463 - for construction in progress
(153,165,726) (13,816,430) 886,463 (166,095,693)
Note 1 Preparation work including preliminary feasibility studies, design and three supplies and one levelling have proceeded for the project. However, influenced
by national policies upon the industry, the project has stagnated for years and signs of entire assets impairment have occurred. After impairment test,
management has recorded provision for impairment of the project against its full carrying amount.
(iii) As at 31 December 2018, some projects under construction were pending the approval documents. Management expected to obtain the relevant approval
documents as scheduled. In addition, management expected stable cash inflows from operating activities once the new projects were put into production.
Therefore, the risk of impairment of such projects was low.
174
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(12) Construction in progress (Cont’d)
(a) Construction in progress (Cont’d)
(iv) In 2018, Guangdong Yudean Bohe Coal Power Co., Ltd. (“Bohe Coal”) sold its construction in
progress of power plants to Guangdong Yudean Finance Leasing Co., Ltd. (“Yudean Leasing”) at
RMB 900,000,000 through finance leases arising from leaseback. The difference between the
selling price and the carrying amount, amounting to RMB 185,786,667, was recognised in other
non-current assets as unrealised leaseback losses that would be amortised based on the
depreciation progress of the fixed assets subsequently transferred from other non-current assets.
As at 31 December 2018, the carrying amount of construction in progress arising from finance
leases was RMB 906,981,377 (31 December 2017: Nil).
In 2018, the Group acquired Wailuo offshore wind power project of Qujie Wind Power under finance
leases. As at 31 December 2018, the carrying amount of construction in progress arising from
finance leases was RMB 240,830,581 (31 December 2017: Nil).
(b) Construction materials
31 December 2018 31 December 2017
Materials for specific use 1,445,557 1,496,854
Equipment for specific use - 34,372,179
1,445,557 35,869,033
175
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(13) Intangible assets
Associated projects for
electricity transmission Non-patent
and transformation and Transportation technology and
microwave engineering Land use rights Sea use rights project Franchise right Software others Total
Cost
31 December 2017 442,517,684 1,812,995,669 129,906,544 22,468,672 13,720,736 109,832,029 950,747 2,532,392,081
Increase in the current year
Purchase - 298,190,440 - - - 5,257,056 6,846,357 310,293,853
Transfer from construction in
progress - - - - - 3,362,027 1,644,828 5,006,855
Disposal - - - - - (1,650,895) (6,412,512) (8,063,407)
31 December 2018 442,517,684 2,111,186,109 129,906,544 22,468,672 13,720,736 116,800,217 3,029,420 2,839,629,382
Accumulated amortisation
31 December 2017 (405,126,139) (295,026,101) (20,484,400) (21,447,068) (9,910,705) (79,987,831) (414,369) (832,396,613)
Increase in the current year
Provision (4,202,171) (41,033,020) (2,619,492) - (282,142) (6,289,316) (133,815) (54,559,956)
Disposal - - - - - 1,545,309 84,000 1,629,309
31 December 2018 (409,328,310) (336,059,121) (23,103,892) (21,447,068) (10,192,847) (84,731,838) (464,184) (885,327,260)
Provision for impairment
31 December 2017 (33,189,374) - - (1,021,604) - - - (34,210,978)
Increase in the current year
Charge for the year - (56,502,373) - - - - - (56,502,373)
31 December 2018 (33,189,374) (56,502,373) - (1,021,604) - - - (90,713,351)
Book balance
31 December 2018 - 1,718,624,615 106,802,652 - 3,527,889 32,068,379 2,565,236 1,863,588,771
31 December 2017 4,202,171 1,517,969,568 109,422,144 - 3,810,031 29,844,198 536,378 1,665,784,490
176
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(13) Intangible assets (Cont’d)
(a) In 2018, the amortised amount of intangible assets was RMB 54,559,956 (2017: RMB
54,513,592).
(b) As at 31 December 2018 and 31 December 2017, provisions for impairment of the use rights of
associated projects for electricity transmission and transformation and microwave engineering and
transportation engineering of Yuejia Electric were made at amount of RMB 34,210,978, and the
provision for impairment of the land use rights of Lincang Energy amounted to RMB 56,502,373
(Note 5 under Note 4(11)(iv)).
(c) As at 31 December 2018, the Group had obtained land use right certificates for all of its lands,
except for lands with carrying amount of RMB 34,063,121 (31 December 2017: RMB 48,304,742)
that were under approval procedures for land use. After consulting 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 will be incurred.
(14) Goodwill
31 December Increase in the 31 December
2017 current year 2018
Goodwill -
Guangdong Wind Power
(a) 2,449,886 - 2,449,886
Lincang Energy (Note 5
under Note 4(11)(iv)) 25,036,894 - 25,036,894
27,486,780 - 27,486,780
Less: Provision for
impairment -
Lincang Energy (Note 5
under Note 4(11)(iv)) - (25,036,894) (25,036,894)
- (25,036,894) (25,036,894)
27,486,780 (25,036,894) 2,449,886
177
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(14) Goodwill (Cont’d)
(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 assets and liabilities amounted to RMB 2,449,886 and was
recognised as goodwill.
(15) Long-term prepaid expenses
Amortisation
31 December Increase in the charged in the 31 December
2017 current year current year 2018
Long-term lease charges 19,343,793 - (2,028,165) 17,315,628
Improvements to fixed assets
held under operating leases 5,689,614 722,804 (1,638,867) 4,773,551
Others 1,973,964 - (1,973,964) -
27,007,371 722,804 (5,640,996) 22,089,179
178
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(16) Deferred tax assets and deferred tax liabilities
(a) Deferred tax assets before offsetting
31 December 2018 31 December 2017
Deductible temporary Deductible temporary
differences and differences and
deductible losses Deferred tax assets deductible losses Deferred tax assets
Provision for asset
impairments 592,790,665 138,530,294 601,414,037 150,345,688
Deductible losses 1,023,611,123 254,800,254 543,075,416 135,768,855
Intra-group transactions 184,890,744 46,222,686 202,928,868 50,732,217
Net income from test run
included in construction in
progress 169,034,589 39,513,222 117,089,330 26,510,083
Employee benefits payable 98,124,525 22,227,221 86,241,170 21,560,293
Depreciation of fixed assets 77,115,313 19,278,829 76,893,416 19,223,353
Capital government grants 78,570,400 19,642,600 56,576,917 14,144,229
Amortisation of land use
rights 3,313,344 828,336 3,170,586 792,647
2,227,450,703 541,043,442 1,687,389,740 419,077,365
Including:
Expected to be recovered
within one year (inclusive) 60,853,542 115,367,229
Expected to be recovered
after one year 480,189,900 303,710,136
541,043,442 419,077,365
(b) Deferred tax liabilities before offsetting
31 December 2018 31 December 2017
Taxable temporary Deferred tax Taxable temporary Deferred tax
differences liabilities differences liabilities
Changes in fair value of
available-for-sale financial
assets included in other
comprehensive income (704,342,515) (176,085,629) (153,664,369) (38,416,092)
Revaluation upon acquisition - - (91,379,088) (22,844,772)
Net expenses in test run
included in construction in
progress (52,176,856) (13,044,215) (37,809,283) (9,452,322)
Amortisation of land use
rights (16,835,020) (4,208,755) - -
(773,354,391) (193,338,599) (282,852,740) (70,713,186)
Including:
Expected to be recovered
within one year (inclusive) (1,077,794) (1,492,421)
Expected to be recovered
after one year (192,260,805) (69,220,765)
(193,338,599) (70,713,186)
179
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(16) Deferred tax assets and deferred tax liabilities (Cont’d)
(c) Deductible temporary differences and deductible losses that are not recognised as deferred tax
assets are analysed as follows:
31 December 2018 31 December 2017
Deductible temporary differences 1,101,102,084 936,551,327
Deductible losses 1,124,573,498 587,890,568
2,225,675,582 1,524,441,895
(d) Deductible losses that are not recognised as deferred tax assets will be expired in following years:
31 December 2018 31 December 2017
2018 - 2,504,832
2019 3,341,528 8,513,773
2020 172,104 5,008,444
2021 141,098,222 148,194,058
2022 412,387,834 423,669,461
2023 567,573,810 -
1,124,573,498 587,890,568
Management believed that as at the maturity date for the above deductible losses, the relevant
subject of tax payment does not have sufficient taxable income to deduct the above deductible
losses, therefore no related deferred tax asset was recognised.
(e) The net balances of deferred tax assets and liabilities after offsetting are as follows:
31 December 2018 31 December 2017
Offsetting Balance after Offsetting Balance after
amount offsetting amount offsetting
Deferred tax assets (92,611,758) 448,431,684 (46,524,326) 372,553,039
Deferred tax liabilities 92,611,758 (100,726,841) 46,524,326 (24,188,860)
180
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(17) Other non-current assets
Item 31 December 2018 31 December 2017
VAT input to be offset 581,667,123 -
Prepayments for equipment 482,385,711 165,761,100
Prepayment for construction 462,720,385 350,347,973
Unrealised losses on sales and leaseback (a) 340,505,389 173,916,629
Prepayment for land use rights 3,732,680 3,732,680
Others 604,970 889,151
1,871,616,258 694,647,533
(a) Unrealised losses on sales and leaseback are the difference between the selling price of the power
generation equipment and its carrying amount, and its remaining balance after depreciation was
based on the depreciation progress of the leaseback power generation equipment. In 2018, the
unrealised losses on sales and leaseback, which were amortised in depreciation expenses in cost of
sales from main operations, amounted to RMB 19,197,908 (2017: RMB: 19,787,236).
(18) Provision for asset impairments
Transfer from
Transfer to provision for
provision for impairment of
impairment of available-for-sa
31 December Increase in the long-term equity le financial Write-off in the 31 December
2017 current year investments assets current year 2018
Provision for bad debts (6,846,527) (3,061,038) - - - (9,907,565)
Including: -
Provision for bad debts of
accounts receivable - (157,709) - - - (157,709)
Provision for bad debts of
other receivables (6,846,527) (2,598,328) - - - (9,444,855)
Provision for bad debts of
advances to suppliers - (305,001) - - - (305,001)
Provision for decline in the
value of inventories (17,420,859) (2,136,875) - - - (19,557,734)
Provision for impairment of
fixed assets (886,604,966) (151,136,187) - - 60,708,691 (977,032,462)
Provision for impairment of
construction in progress (153,165,726) (13,816,430) - - 886,463 (166,095,693)
Provision for impairment of
available-for-sale
financial assets (25,010,686) - 25,010,686 - - -
Provision for impairment of
long-term equity
investments - - - (25,010,686) - (25,010,686)
Provision for impairment of
intangible assets (34,210,978) (56,502,373) - - - (90,713,351)
Provision for impairment of
goodwill - (25,036,894) - - - (25,036,894)
(1,123,259,742) (251,689,797) 25,010,686 (25,010,686) 61,595,154 (1,313,354,385)
(19) Short-term borrowings
31 December 2018 31 December 2017
Credit loan 7,526,000,000 9,270,000,000
(a) As at 31 December 2018, the annual interest rates of the short-term borrowings ranged from 3.92%
to 4.70% (31 December 2017: from 3.92% to 5.02%).
(b) As at 31 December 2018, the balance of short-term credit loans provided by related party Yudean
Finance amounted to RMB 5,042,000,000 (31 December 2017: RMB 5,637,000,000) (Note 8(6)).
181
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(20) Notes and accounts payables
31 December 2018 31 December 2017
Notes payable (a) 941,161,107 297,611,800
Accounts payable (b) 2,196,600,415 2,219,027,261
3,137,761,522 2,516,639,061
(a) Notes payable
31 December 2018 31 December 2017
Bank acceptance notes 555,000,000 297,611,800
Trade acceptance notes 386,161,107 -
941,161,107 297,611,800
The above notes payable are all due within one year.
(i) The Group used acceptance notes to pay for coal or fuel procured from the Industry Fuel.
According to the three-party agreement signed among the Group, Yudean Finance and Industry
Fuel, discounting expenses will be borne by the Group when Industry Fuel discounts the notes
they receive. As at 31 December 2018, the balance of bank acceptance notes issued by the Group
and discounted by Industry Fuel with Yudean Finance amounted to RMB 386,161,107 (31
December 2017: Nil) with discount rate of 3.92%. The acceptance notes were due from three to
twelve months. The balance of notes issued and accepted by Yudean Finance amounted to RMB
267,000,000 (31 December 2017: RMB 230,000,000 in which RMB 67,611,800 had not been
claimed by Industry Fuel) with discount rate of 3.92% to 4.29% (31 December 2017: 2.70% to
4.17%). The acceptance notes were due from three to twelve months (31 December 2017: due
from three to twelve months)(Note 8(6)). In 2018, the discounting interest charged by Yudean
Finance and borne by the Group which was included in the discounting interest expenses in the
year amounted to RMB 13,243,370 (31 December 2017: RMB 13,638,031)(Note 8(5)(i)).
(b) Accounts payable
31 December 2018 31 December 2017
Fuel payable 1,671,130,460 1,530,075,127
Materials and spare parts payable 473,108,337 483,460,431
Maintenance and administrative fees payable - 89,461,265
Others 52,361,618 116,030,438
2,196,600,415 2,219,027,261
182
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(20) Notes and accounts payables (Cont'd)
(b) Accounts payable (Cont'd)
As at 31 December 2018, accounts payable with ageing over one year amounted to RMB
175,747,169 (31 December 2017: RMB 136,266,488), mainly fuel and materials payable of RMB
133,287,041 (31 December 2017: RMB 89,461,265) and maintenance and administrative fees
payable of RMB 40,840,315 (31 December 2017: RMB 46,805,223).
(21) Advances from customers
31 December 2018 31 December 2017
Advances from disposal of materials 155,328 -
Advances for grid payment - 1,713,424
Others 188,566 224,799
343,894 1,938,223
As at 31 December 2018, there were no large advances from customers ageing over one year (31
December 2017: Nil).
(22) Employee benefits payable
31 December 2018 31 December 2017
Short-term employee benefits payable (a) 179,432,031 140,101,582
Defined contribution plans payable (b) 29,372,990 -
Termination benefits payable (c) 26,936,158 17,637,046
235,741,179 157,738,628
(a) Short-term employee benefits payable
31 December Increase in the Decrease in the 31 December
2017 current year current year 2018
Wages and salaries, bonus,
allowances and subsidies 50,978 1,152,154,891 (1,152,205,869) -
Staff welfare 1,864,884 116,950,231 (116,955,772) 1,859,343
Social security contributions 50,409,762 120,559,167 (85,771,497) 85,197,432
Including: Medical insurance 50,409,762 113,521,664 (78,733,994) 85,197,432
Work injury insurance - 2,079,863 (2,079,863) -
Maternity insurance - 4,957,640 (4,957,640) -
Housing funds - 136,880,139 (136,880,139) -
Labour union funds and employee
education funds 82,841,668 43,614,018 (39,221,908) 87,233,778
Other short-term employee benefits 4,934,290 78,861,263 (78,654,075) 5,141,478
140,101,582 1,649,019,709 (1,609,689,260) 179,432,031
183
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(22) Employee benefits payable (Cont'd)
(b) Defined contribution plans payable
31 December Increase in the Decrease in the 31 December
2017 current year current year 2018
Basic pensions - 153,569,624 (153,569,624) -
Unemployment insurance - 4,734,162 (4,734,162) -
Annuity - 83,086,609 (53,713,619) 29,372,990
- 241,390,395 (212,017,405) 29,372,990
(c) Termination benefits payable refer to early retirement benefits payable due by the Group within
one year (Note 4(31)).
(23) Taxes payable
31 December 2018 31 December 2017
Unpaid VAT 242,647,263 159,547,521
Enterprise income tax payable 115,757,551 59,224,530
Individual income tax payable 12,437,608 29,612,341
Water resource fee payable 6,706,870 945,169
City maintenance and construction tax
payable 4,418,167 3,500,667
Educational surcharge payable 3,469,767 2,895,952
Pollution discharge fee payable and
environmental protection tax payable 3,389,557 2,996,840
Property tax payable 3,347,609 2,877,522
Land use tax payable 2,122,128 14,990,255
Others 2,705,186 694,605
397,001,706 277,285,402
184
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(24) Other payables
31 December 2018 31 December 2017
Construction and equipment expenses payable 3,622,672,965 3,430,308,319
State Oceanic Administration penalty payable
(b) 183,676,050 172,144,350
Project warranty payable 118,821,787 156,112,962
Interest payable 59,316,077 98,553,104
Interest payable for long-term borrowings with
interest paid in instalment and principal
repaid on maturity 29,830,979 36,701,382
Interest payable for debentures 17,070,842 50,486,869
Interest payable for short-term borrowings 10,103,964 11,010,687
Other interest payable 2,310,292 354,166
Payables to non-tradable owners of the
Company (c) 9,703,930 9,703,930
Payables for advances 1,153,204 12,726,072
Payables for purchase of unit capacity - 4,000,000
Others 157,174,482 133,220,968
4,152,518,495 4,016,769,705
(a) As at 31 December 2018, other payables of RMB 2,002,311,622 (31 December 2017: RMB
1,742,036,695) aged over one year mainly represented (i) construction and equipment expenses
payable and project warranty payable not being settled because the comprehensive acceptance and
settlement of relevant projects were yet to be completed or projects were still within their warranty
periods; and (ii) State Oceanic Administration penalty payable not being paid because judicial
proceedings related to the penalty had not been completed.
(b) State Oceanic Administration penalty payable
(i) State Oceanic Administration penalty payable refers to the penalties amounting to RMB 172,144,350
and RMB 11,531,700 respectively imposed by the Administration of Ocean and Fisheries of
Guangdong Province and the Administration of Ocean and Fisheries of Huidong County with penalty
notice in 2016 and 2018 against Guangdong Huizhou Pinghai Power Plant (“Pinghai Power”) due to
its unapproved execution of engineering and bank revetment project from August 2007 to June 2016.
The penalties had been recorded as non-operating expenses in 2016 and 2018 respectively. As at 31
December 2018, Pinghai Power had appealed for the aforesaid matter, but the litigation outcome had
not been determined. Since the penalties remain unpaid, they are presented in other payables.
According to the Agreement on Share Issuance and Asset Procurement entered into by GEGC and
the Company in 2012, GEGC makes commitments that, if the 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.
GEGC would make compensation to the Company based on the litigation result of the punishment in
2016 and the actual losses caused by such case. As the litigation result of the punishment remain
undetermined, the Group could not determine the compensation obtained from GEGC, thus the Group
did not recognise the receivables and income in 2018.
185
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(24) Other payables (Cont’d)
(c) The above dividend payable refers to dividend payable for non-tradable shares reform that is in the
process of completing necessary formalities. The payment will be arranged after the formalities are
completed.
(25) Current portion of non-current liabilities
31 December 2018 31 December 2017
Long-term borrowings due within one year (a)
(Note 4(27)) 1,745,797,372 1,445,497,943
Debentures payable due within one year (b) (Note
4(28)) 698,667,556 1,197,935,476
Long-term payables due within one year (c) (Note
4(29)) 334,882,726 369,256,941
2,779,347,654 3,012,690,360
(a) Long-term borrowings due within one year
Item 31 December 2018 31 December 2017
Pledged loan (i) 213,259,115 209,579,575
Guaranteed loan (ii) 55,827,500 58,427,500
Credit loan 1,476,710,757 1,177,490,868
1,745,797,372 1,445,497,943
(i) As at 31 December 2018, the charge right for electricity and accounts receivable were treated as
pledge for long-term pledged loan due within one year for the following subsidiaries:
31 December 2018 31 December 2017
Yuejiang Power 186,859,840 180,897,292
Zhanjiang Wind Power 18,274,167 17,520,000
Xuwen Wind Power 6,527,993 10,062,668
Leizhou Wind Power 1,597,115 1,099,615
213,259,115 209,579,575
186
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(25) Current portion of non-current liabilities (Cont’d)
(a) Long-term borrowings due within one year (Cont’d)
(ii) As at 31 December 2018, Zhanjiang Wind Power provided maximum amount guarantee for Xuwen
Wind Power’s long-term borrowings of RMB 11,827,500 (31 December 2017: RMB 10,427,500)
due within one year. The Company provided joint and several guarantee for Yuejiang Power’s
long-term borrowings of RMB 44,000,000 (31 December 2017: RMB 48,000,000) due within one
year.
(iii) As at 31 December 2018, the annual interest rate of long-term borrowings due within one year
ranges from 1.29% to 4.90% (31 December 2017: from 1.29% to 4.90%). The borrowings will be
due within 12 months.
(b) Details of debentures payable due within one year are disclosed in Note 4(28)
(c) Long-term payables due within one year
As at 31 December 2018, long-term payables due within one year were the net financing lease
payable of RMB 334,882,726 (namely, the remaining net amount of the total amount of RMB
356,362,496 after deducting the unrecognised finance charge of RMB 21,479,770). As at 31
December 2017, long-term payables due within one year were the net financing lease payable of
RMB 369,256,941 (namely, the remaining net amount of the total amount of RMB 403,242,457
after deducting the unrecognised finance charge of RMB 33,985,516).
As at 31 December 2018, details of long-term payables due within one year have been disclosed in
Note 4(29).
(26) Other current liabilities
31 December 2018 31 December 2017
Short-term debentures payable 1,107,904,110 -
187
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(26) Other current liabilities (Cont’d)
Related information of short-term debentures payable is as follows:
Amortisation
Issuance Maturity Issuance 31 December Issuance Interest at of discounts Repayments for 31 December
Face value date period amount 2017 during the year face value or premium the year 2018
First batch of short-term financing
notes issued by Guangdong
Electric Power Development Co., 180
Ltd., 2018 500,000,000 06/06/2018 days 500,000,000 - 500,000,000 10,479,452 - (510,479,452) -
Second batch of short-term
financing notes issued by
Guangdong Electric Power 180
Development Co., Ltd., 2018 600,000,000 24/08/2018 days 600,000,000 - 600,000,000 7,740,000 - - 607,740,000
Third batch of short-term financing
notes issued by Guangdong
Electric Power Development Co.,
Ltd., 2018 500,000,000 28/11/2018 28 days 500,000,000 - 500,000,000 978,082 - (500,978,082) -
Fourth batch of short-term financing
notes issued by Guangdong
Electric Power Development Co., 152
Ltd., 2018 500,000,000 27/12/2018 days 500,000,000 - 500,000,000 164,110 - - 500,164,110
2,100,000,000 2,100,000,000 - 2,100,000,000 19,361,644 - (1,011,457,534) 1,107,904,110
In 2018, the interest rate of short-term financing notes issued by the Company was from 2.55% to 4.25% (2017: Nil).
188
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(27) Long-term borrowings
31 December 2018 31 December 2017
Pledged loan (a) 2,765,356,586 2,698,978,707
Loan secured by mortgages (b) - 85,000,000
Guaranteed loan (c) 1,606,112,500 1,665,240,000
Credit loan 16,176,620,950 16,462,003,105
20,548,090,036 20,911,221,812
Less: Long-term borrowings due within
one year (Note 4(25)(a)) (1,745,797,372) (1,445,497,943)
18,802,292,664 19,465,723,869
(a) As at 31 December 2018, the charge right for electricity and accounts receivable were treated as
pledge for long-term pledged loan for the following subsidiaries:
31 December 2018 31 December 2017
Yuejiang Power (i) 2,151,963,439 2,276,504,889
Leizhou Wind Power (ii) 236,829,612 188,420,594
Qujie Wind Power (iii) 162,820,000 -
Zhanjiang Wind Power (iv) 138,945,000 156,465,000
Xuwen Wind Power (v) 74,798,535 77,588,224
2,765,356,586 2,698,978,707
(i) As at 31 December 2018, the Company’s subsidiary Yuejiang Power borrowed RMB
2,151,963,439 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 21 June 2020 and the annual
interest rate is 4.53% (2017: ranges from 4.41% to 4.53%). The borrowings include long-term
borrowings due within one year amounting to RMB 186,859,840 (2017: RMB 2,276,504,889,
including long-term borrowings due within one year amounting to RMB 180,897,292).
(ii) The Company’s subsidiary Leizhou Wind Power obtained loans from the Industrial and Commercial
Bank of China. According to the loan contract, the category of the loan was changed from credit
loan to pledged loan after Leizhou Wind Power was put into operation in December 2017, and the
loan should be secured by Leizhou Wind Power’s right to charge electricity. As at 31 December
2018, the balance of pledged loan was RMB 236,829,612, with the maturity date of 29 April 2030
and the interest rate ranged from 4.41% to 4.90%, including a long-term borrowings due within one
year amounting to RMB 1,597,115 (31 December 2017: RMB 188,420,594, including a long-term
borrowings due within one year amounting to RMB 1,099,615, with the interest rate ranged from
4.41% to 4.66%).
189
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(27) Long-term borrowings (Cont’d)
(a) Pledged loan (Cont’d)
(iii) As at 31 December 2018, for the construction of Zhanjiang Wailuo offshore wind power project, the
Company’s subsidiary Qujie Wind Power borrowed RMB 162,820,000 from bank consortium and
the Bank of China, 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 4.80%.
(iv) As at 31 December 2018, the Company’s subsidiary Zhanjiang Wind Power borrowed RMB
138,945,000 from the Industrial and Commercial Bank of China, secured by Zhanjiang Wind
Power’s right to charge electricity. The maturity date is 7 May 2024 and the annual interest rate is
4.41% (2017: 4.66%). The borrowings include long-term borrowings due within one year amounting
to RMB 18,274,167 (2017: RMB 156,465,000, including long-term borrowings due within one year
amounting to RMB 17,520,000).
(v) Based on the Loan Transfer Agreement of Yudean Yongshi Wind Power Project for Loan Protocol
under the Climate Change Framework of European Investment Banks between Zhanjiang Wind
Power and Department of Finance of Guangdong Province, the Company’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 2018, the balance of the loan above was totalled at USD
10,898,493 (equivalent to RMB 74,798,535) (2017: USD 11,874,173 (equivalent to RMB
77,588,224)), among which balance of the long-term borrowings due within one year amounted to
USD 951,159 (equivalent to RMB 6,527,993) (2017: USD 1,540,000 (equivalent to RMB
10,062,668)). The maturity date of the loan is 2 March 2029 with the annual interest rate from
0.92% % to 1.29% (2017: from 0.92% to 1.29%). Meanwhile, the loans are guaranteed by the
Company.
(b) As at 31 December 2018, the loans secured by mortgages of RMB 85,000,000 of Shenzhen
Guangqian Electric Co., Ltd (“Guangqian Electric”) were totally repaid.
190
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(27) Long-term borrowings (Cont’d)
(c) As at 31 December 2018, the balance of the Company’s subsidiary Xuwen Wind Power’s long-term
borrowings from Yudean Finance was RMB 29,800,000, including long-term borrowings due within one
year of RMB 7,400,000, which was secured by the guarantee provided by Zhanjiang Wind Power
(2017: RMB 37,200,000, including long-term borrowings due within one year amounted to RMB
7,400,000). The annual interest rate of the loan is 4.66% (2017: 4.66%), and the maturity date is 21
August 2022.
As at 31 December 2018, the balance of the Company’s subsidiary Xuwen Wind Power’s long-term
borrowings from Yudean Finance was RMB 18,300,000, including long term borrowings due within one
year of RMB 1,400,000, which was secured by the guarantee provided by Zhanjiang Wind Power
(2017: RMB 19,000,000). The annual interest rate of the loan is 4.41% (2016: 4.66%), and the maturity
date is 28 November 2031.
As at 31 December 2018, the balance of the Company’s subsidiary Xuwen Wind Power’s long-term
borrowings from the Bank of Communications Co., Ltd. was RMB 14,012,500, including long-term
borrowings due within one year of RMB 3,027,500, which was secured by the guarantee provided by
Zhanjiang Wind Power (2017: RMB 17,040,000, including long-term borrowings due within one year
amounted to RMB 3,027,500). The annual interest rate of the loan is 4.90% (2017: 4.90%), and the
maturity date is 5 December 2022.
As at 31 December 2018, GEGC provided guarantee for the Company’s long-term borrowings of RMB
1,500,000,000 (2017: RMB 1,500,000,000) from Pacific Investment Management. The interest rate of
the loan is 5.00% (2017: 5.00%), and the maturity date is 13 August 2020.
As at 31 December 2018, the long-term borrowings of the Company’s subsidiary Yuejiang Power
amounting to RMB 44,000,000 were secured by the guarantee provided by the Company based on its
proportion of shareholding. The balance of the long-term borrowings due within one year included in
the loan was RMB 44,000,000 (31 December 2017: RMB 92,000,000, among which balance of
long-term borrowings due within one year was RMB 48,000,000). The interest rate of the borrowings is
4.90% (2017: 4.75%), and the maturity date is 2 July 2019.
191
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(28) Debentures payable
Reversal from Transferred to
Issuance Amortisation of current portion of current portion of
31 December during the Interest at discounts or Repayments for non-current non-current 31 December
2017 year face value premium the year liabilities liabilities 2018
16 Pinghai Bond 01 (a) 698,168,211 - - 499,345 - - (698,667,556) -
12 Yudean Bond (b) - - - 2,027,433 (1,159,693,500) 1,197,935,476 - 40,269,409
First batch of middle-term notes
issued by Guangdong Electric
Power Development Co., Ltd.,
2018 (c) - 797,744,000 - 313,333 - - - 798,057,333
698,168,211 797,744,000 - 2,840,111 (1,159,693,500) 1,197,935,476 (698,667,556) 838,326,742
(a) As approved by CSRC Circular SFC License [2016] No. 1864, the Company’s subsidiary Pinghai Power issued 5-year book-entry corporate
debentures in real-name system with face value of RMB 700,000,000 (“16 Pinghai Bond 01”) to the public on 26 September 2016. The Company
altogether raised RMB 697,375,000 after deducting an issue expense of RMB 2,625,000. The loan is subject to an annual interest rate of 3.10%
counted from 26 September 2016 and should be payable annually on simple interest. According to the prospectus for 16 Pinghai Bond, the
bondholder is entitled to sell its “16 Pinghai Bond 01” back to the Company in whole or in part based on the face value on the interest payment date
in the third interest-bearing year of the bond. Therefore, the Company transferred the balance of debentures payable to the current portion of
non-current liabilities. As at 31 December 2018, debentures payable were measured at amortised cost using effective interest method, with the
effective interest rate of 3.18%.
(b) As approved by CSRC Circular SFC License [2012] No. 1421, the Company issued 7-year book-entry corporate debentures in real-name system
with face value of RMB 1,200,000,000 (“12 Yudean Bond”) to the public on 18 March 2013. The Company altogether raised RMB 1,193,330,000
after deducting an issue expense of RMB 6,670,000. The loan is subject to an annual interest rate of 4.95% counted from 18 March 2013 and
should be payable annually on simple interest. According to the prospectus for 12 Yudean Bond, the bondholder is entitled to sell its “12 Yudean
Bond” back to the Company in whole or in part based on the face value on the interest payment date in the third interest-bearing year of the bond.
As at the fifth interest-bearing date, the Company had repaid RMB 1,159,693,500, and the rest would be repaid on the maturity date, 17 March
2020. Therefore, the Company transferred the balance of current portion of non-current liabilities back to the debentures payable. As at 31
December 2018, debentures payable were measured at amortised cost using effective interest method, with the effective interest rate of 5.04%.
192
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(28) Debentures payable (Cont’d)
(c) 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
expenses of RMB 2,256,000, which should be paid in three years. As at 31 December 2018, the issue
expenses of RMB 752,000 had been paid. The loan is subject to an annual interest rate of 4.19%
counted from 27 August 2018 and should be payable annually on simple interest. As at 31 December
2018, debentures payable were measured at amortised cost using effective interest method, with the
effective interest rate of 4.29%.
(29) Long-term payables
31 December 2018 31 December 2017
Long-term payables (a) 2,221,230,656 1,548,259,241
Payables for specific projects (b) 90,282,593 64,605,011
2,311,513,249 1,612,864,252
(a) Long-term payables
31 December 2018 31 December 2017
Finance lease payable (i) 2,466,113,382 1,827,516,182
Payables for share repurchase (ii) 90,000,000 90,000,000
Less: Long-term payables due within one
year (334,882,726) (369,256,941)
2,221,230,656 1,548,259,241
(i) The finance lease payable is mainly the balance of minimum lease payment less unrecognised finance
charge for power generation equipment by subsidiaries - Jinghai Power, Yuejiang Power and
Zhongyue Energy, Bohe Coal and Qujie Wind Power. The Company provided guarantee for Yuejiang
Power’s finance lease up to 65% of total amount of the finance lease and signed a counter guarantee
contract with Yuejiang Power.
193
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(29) Long-term payables (Cont’d)
(a) Long-term payables (Cont’d)
(i) Finance lease payable (Cont’d)
The Group’s minimum finance lease payments are as follows:
Minimum finance lease payments 31 December 2018 31 December 2017
Within 1 year (inclusive) 356,362,496 403,242,457
Over 1 year but within 2 years (inclusive) 334,799,400 373,429,119
Over 2 years but within 3 years (inclusive) 192,216,671 353,810,789
Over 3 years 1,613,987,015 761,447,305
Sub-total 2,497,365,582 1,891,929,670
Less: Unrecognised finance charge (31,252,200) (64,413,488)
2,466,113,382 1,827,516,182
The above finance lease payable due within one year less unrecognised finance charge is listed in
Note 4(25).
(ii) In 2016, Guangdong Yuecai Investment Management Co., Ltd (“Yuecai Investment”) injected
capital of RMB 10,000,000 to the Company’s subsidiary Leizhou Wind Power and capital of RMB
50,000,000 to the Company’s subsidiary Dianbai Wind Power, and obtained 30% equity of the
Company’s subsidiary Xuwen Wind Power with a consideration of RMB 30,000,000. According to
the agreement, the Group shall repurchase the shares held by Yuecai Investment after the
five-year equity participation, and the price of repurchase shall equals to Yuecai Investment’s
actual amount of contribution of RMB 90,000,000. The Group should pay equity premium to Yuecai
Investment at fixed proportion annually.
(b) Payables for specific projects
Opening Increase in the Decrease in the Ending
Item balance current year current year balance
Supporting funds for expansion
(i) 24,960,000 - - 24,960,000
Special fund for supply of
water, power and heat and
property management (ii) 39,645,011 35,376,867 (9,699,285) 65,322,593
64,605,011 35,376,867 (9,699,285) 90,282,593
194
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(29) Long-term payables (Cont’d)
(b) Payables for specific projects (Cont’d)
(i) The payables for specific projects represent the fund granted for benefits improvement and
capacity expansion by governments at provincial and central level. According to the document
issued by Yunnan Water Conservancy & Hypower Investment Co., Ltd. (Yun Shui Tou Fa [2015]
No. 16), such payables for specific project were subject to an interest rate 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 agreement, including RMB
32,205,311 from the Department of Finance of Guangdong Province and Yudean, RMB
38,647,834 from GEGC and payables of RMB 4,168,733 from Shaoguan Electric Power Plant. The
special fund used in the current year amounted to RMB 9,699,285. According to the document
issued by Department of Finance of Guangdong Province (Yue Cai Gong [2017] No. 22), the
special fund is used for the renovation and reconstruction of the supply of water, electricity and
heat and property management in employees’ family area charged by provincial enterprises.
(30) Deferred income
31 December Increase in the Decrease in the 31 December
2017 current year current year 2018 Source
Grants
Government provided by
grants (a) 142,520,263 16,712,775 (26,189,392) 133,043,646 government
195
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(30) Deferred income (Cont’d)
(a) Government grants
Decrease in the current year
31 December Increase in the Recorded in Other 31 December Asset related/
Government grants Note 2017 current year other income movements 2018 income related
Shajiao A Zhenkou pump house (i) 28,560,022 - (753,231) - 27,806,791 Asset related
Energy saving funds (ii) 20,863,104 - (4,112,576) - 16,750,528 Asset related
Tax refund for PRC-made equipment (iii) 17,221,559 - (2,296,209) - 14,925,350 Asset related
Comprehensive technology upgrading for the energy
saving of 1&2# generator units turbine (iv) 10,000,000 - (769,231) - 9,230,769 Asset related
Incentives for energy efficiency of power plant by
Dongguan (v) 8,781,631 - (543,194) - 8,238,437 Asset related
Development and competitiveness funds from SASAC (vi) 8,666,666 - (666,666) - 8,000,000 Asset related
Second incentives for comprehensive and typical
demonstration projects under financial policies of
energy saving 8,100,000 - (450,000) - 7,650,000 Asset related
Post rewarding subsidies for ultra-low emissions of
1&2# generators - 7,440,000 (527,660) - 6,912,340 Asset related
Post rewarding subsidies for ultra-low emissions of
designated account of special fund in Maonan
District of Maoming in 2018 - 4,405,000 (338,846) - 4,066,154 Asset related
Energy saving funds used as policy liquidation
subsidies in previous years 4,165,231 - (4,165,231) - - Asset related
Expansion on flow reconstruction project 3,887,055 - (262,007) - 3,625,048 Asset related
Shajiao A - 2016 central finance energy saving fund 3,783,124 - (255,001) - 3,528,123 Asset related
Incentive funds for construction of large industrial
enterprise R&D institutions in Shanwei - 3,000,000 - - 3,000,000 Asset related
Dianbai Reshui wind power plant project 3,000,000 - - - 3,000,000 Asset related
Refurbishment on air preheater 3,093,442 - (205,791) - 2,887,651 Asset related
Sub-total 120,121,834 14,845,000 (15,345,643) - 119,621,191
196
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(30) Deferred income (Cont’d)
(a) Government grants (Cont'd)
Decrease in the current year
31 December Increase in the Other 31 December Asset related/
Government grants Note 2017 current year Other income movements 2018 income related
Special prize funds of recycle economy and energy saving by
Shenzhen 2,707,321 - (246,666) - 2,460,655 Asset related
Denitration project 2,585,029 - (308,135) - 2,276,894 Asset related
Specific funds for denitrification and energy saving reconstruction
of 300MW generator units at Yuejiang Power Plant 5,330,700 - - (4,110,686) 1,220,014 Asset related
Water-freshing project 1,076,924 - (153,846) - 923,078 Asset related
Circulating water pump special fund for technological renovation 1,000,000 - (76,923) - 923,077 Asset related
1&2# Air preheater energy saving project 1,000,000 - (76,923) - 923,077 Asset related
2X600MW generator unit ultra-low emission transformation -
technical transformation for main auxiliary equipment of turbine
cold end system and boiler - 1,000,000 (76,923) - 923,077 Asset related
Rewarding subsidies for science and technology in 2018 - 732,500 - - 732,500 Asset related
2018 provincial special fund for boosting economic development
as transferred by the Department of Finance of Zhanjiang,
Chikan Office - upgrading and transformation of low-voltage
generators with high energy consumption - 135,275 (22,546) - 112,729 Asset related
Desulfurization project Shajiao A 5# generator unit 3,076,924 - (3,076,924) - - Asset related
Special funds for differential electricity price 1,026,886 - (1,026,886) - - Asset related
Special prize funds of recycle economy and energy saving by
Shaoguan 923,896 - (923,896) - - Asset related
Government subsidies from the financial treasury payment centre
of Qujiang District, Shaoguan 3,568,379 - (641,025) - 2,927,354 Asset related
Social security treatment clearing account relating to firm’s stable
position subsidy 102,370 - (102,370) - - Income related
Sub-total 22,398,429 1,867,775 (6,733,063) (4,110,686) 13,422,455
Total 142,520,263 16,712,775 (22,078,706) (4,110,686) 133,043,646
197
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(30) Deferred income (Cont’d)
(a) Government grants (Cont'd)
(i) In 2015, as required by the local government, the pump house of Shajiao A located in Changdi
Road, Dianchang town, was required to remove, relocate and reconstruct with provisional
estimation of compensation amounting to RMB 30,411,446. The compensation shall be disclosed
under payables for specific projects on receipt of the amount, transferred into deferred income
when expenditures for removal and reconstruction incur, and amortised over the useful life upon
completion of relevant construction.
(ii) This represents the energy-saving funds received by Yuejiang Power for reform of energy saving
and emission reduction technology in 2015, and assistance fund received in 2016 for
representative demonstration project under the energy saving and emission reduction policy. It is
amortised over the estimated useful lives of 13 years from the completion date of the project.
(iii) This represents the value-added tax refunded for purchase of PRC-produced equipment received
by Shibeishan Wind Power. It is amortised on a straight-line basis over the estimated use period of
13 years.
(iv) This presents the government grants (first batch) received by Zhongyue Energy in Zhanjiang in
2017 from the investment plan under the central budget (2017) in priority projects of resource
conservation and recycling. The subsidy is used for the comprehensive energy saving technology
upgrading project of the turbines of Zhongyue Energy’s 1&2 # generator units. As at 31 December
2018, the technology upgrading project for such generator units was accomplished. Such subsidy
income is amortised on a straight-line basis over the estimated useful lives of 13 years from the
completion date of the project.
(v) This represents the No.1918, No.1692 and No.1794 incentives of energy efficiency of power plant
of Dongguan received by Shajiao A in 2014, 2015 and 2016 respectively. It is amortised on a
straight-line basis over the remaining estimated useful lives of relevant assets
(vi) This represents the reform and development fund received by Zhanjiang Wind Power in 2011 in
relation to Yongshi Wind Power Project. The Group amortises the fund during the income period of
the project on a straight-line basis.
198
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(31) Long-term employee benefits payable
31 December 2018 31 December 2017
Termination benefits (a) 114,331,088 75,609,880
Other long-term employee benefits payable
(b) 46,943,615 39,097,210
Less: Payable within one year (38,361,315) (23,084,183)
122,913,388 91,622,907
The early retirement benefits payable within one year are included in the employee benefits payable
(Note 4(22)).
Some employees of the Group have taken early retirement. As at the balance sheet date, the main
actuarial assumptions used in estimating the obligation arising from the early retirement benefits
are as follows:
31 December 2018 31 December 2017
Discount rates 4.27% 4.22%
Early retirement benefits recognised in profit or loss for the current period:
2018 2017
General and administrative expenses 36,539,748 (46,790,029)
Financial expenses - 118,849
(a) According to the Group’s regulations for early retirement of employees, the employees can apply
for early retirement before statutory retirement age. Employees can obtain salary on a monthly
basis by a certain ratio of the original salary until they reach the statutory retirement age.
Management expects the termination benefits to be paid in the future are determined by the
present value of cash flow, when accrued the above termination benefits. As at 31 December 2018,
the Group calculated the expected expense for each employee eligible for early retirement in each
year before the statutory retirement age in accordance with the related regulations for early
retirement and estimated the present value of future termination benefits by treasury bond interest
rate of 4.27% (2017: 4.22%) of the same period. As at 31 December 2018, the Group accrued a
termination benefits of RMB 114,331,088 (31 December 2017: RMB 75,609,880) and recognised it
in long-term employee benefits payable. The actual termination benefits due within one year
totalled at RMB 26,936,158 (31 December 2017: RMB 17,637,046) are recognised in employee
benefits payable.
199
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(31) Long-term employee benefits payable (Cont'd)
(b) According to relevant regulations on social medical insurance in places where the subsidiaries of
the Company and the Group locate, if individual employees participating basic medical insurance
for urban residents are under their statutory ages of retirement, but their estimated contribution
years fail to meet the local standards, the Group needs to make continuous contribution for the
employees till the standards are met even after their retirement. The expected present values of
cash flows that shall be paid for medical insurance after the retirement of employees till prescribed
terms are recognised as long-term employee benefits payable and recorded in profit or loss for the
period or cost of relevant assets. As at 31 December 2018, the balance of 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 4.27% (2017:
4.22%) as discount rate. As at 31 December 2018, the Group accrued other long-term employee
benefits payable of RMB 46,943,615 (31 December 2017: RMB 39,097,210), with actual payment
of other long-term employee benefits payable due within one year of RMB 11,425,157 (31
December 2017: RMB 5,447,137) recognised in employee benefits payable.
(32) Other non-current liabilities
31 December 2018 31 December 2017
Capital injection 166,405,569 16,405,569
In 2017, the Group’s subsidiary Yuejiang Power received a capital injection of RMB 16,405,569
from minority shareholders. As at 31 December 2018, such capital injection was recorded in other
non-current liabilities as the registration for changes of business license had not been completed.
In 2018, the Group’s subsidiaries Yudean Yangjiang Offshore Wind Power Co., Ltd. (“Yangjiang
Wind Power”) and Qujie Wind Power respectively received capital injection of RMB 100,000,000
and RMB 50,000,000 from GEGC. The capital will be used for Yangjiang Shapa offshore wind
power plant project and Qujie Wailuo offshore wind power plant project. As at 31 December 2018,
such capital injection was recorded in other non-current liabilities as the registration for changes of
business license had not been completed.
200
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(33) Share capital
31 December 2017 Movements for the current year 31 December 2018
Issuance of new Housing fund
shares Bonus shares transferred to shares Others Sub-total
Shares subject to trading restriction:
- Shares held by domestic state-owned
legal person 1,893,342,621 - - - - - 1,893,342,621
- Other domestic shares
Including: Shares held by domestic
non-state-owned legal person 4,620,666 - - - - - 4,620,666
Shares held by domestic natural
person 3,536 - - - 2,123 2,123 5,659
Shares not subject to trading restriction
- RMB-dominated ordinary shares 2,553,909,163 - - - (2,123) (2,123) 2,553,907,040
- Domestically-listed foreign shares 798,408,000 - - - - - 798,408,000
5,250,283,986 - - - - - 5,250,283,986
Movements for the current year 31 December 2017
Issuance of new Housing fund
31 December 2016 shares Bonus shares transferred to shares Others Sub-total
Shares subject to trading restriction:
- Shares held by domestic state-owned
legal person 1,893,342,621 - - - - - 1,893,342,621
- Other domestic shares
Including: Shares held by domestic
non-state-owned legal person 4,620,666 - - - - - 4,620,666
Shares held by domestic natural
person 3,536 - - - - - 3,536
Shares not subject to trading restriction
- RMB-dominated ordinary shares 2,553,909,163 - - - - - 2,553,909,163
- Domestically-listed foreign shares 798,408,000 - - - - - 798,408,000
5,250,283,986 - - - - - 5,250,283,986
201
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(34) Capital surplus
Increase in Decrease in
31 December the current the current 31 December
2017 year year 2018
Share capital premium (a) 4,445,477,866 98,596,201 - 4,544,074,067
Revaluation reserve 119,593,718 - - 119,593,718
Investment from GEGC 395,000,000 - - 395,000,000
Share of interest in the
investee based on
shareholding 20,785,182 - - 20,785,182
Transfer of capital surplus
recognised under the
previous accounting system 20,474,592 - - 20,474,592
Others 2,919,327 - - 2,919,327
5,004,250,685 98,596,201 - 5,102,846,886
Increase in Decrease in
31 December the current the current 31 December
2016 year year 2017
Share capital premium 4,445,477,866 - - 4,445,477,866
Revaluation reserve 119,593,718 - - 119,593,718
Investment from GEGC 395,000,000 - - 395,000,000
Share of interest in the
investee based on
shareholding 20,785,182 - - 20,785,182
Transfer of capital surplus
recognised under the
previous accounting system 20,474,592 - - 20,474,592
Others 1,676,120 1,243,207 - 2,919,327
5,003,007,478 1,243,207 - 5,004,250,685
(a) In November 2018, GEGC purchased 33% equity of the Company’s wholly-owned subsidiary Bohe
Coal with cash consideration of RMB 1,100,106,963. The Company did not loss the control over
Bohe Coal, and the difference between the portion of received consideration attributable to the
Company and the subsidiary’s shares of net assets calculated based on proportion of equity
disposed amounted to RMB 76,087,677 was recorded in capital surplus.
In November 2018, the Company’s non-wholly-owned subsidiary Maoming Zhenneng acquired all
the equity of Maoming Thermal Power Plant Co., Ltd. (“Maoming Thermal”), a wholly-owned
subsidiary of GEGC, at RMB 429,014,036 from GEGC with a consideration of 30.12% equity (“the
Equity Transaction of Maoming Zhenneng”). Since Maoming Thermal did not have any operation
at the combination date, the equity transaction did not form a business combination involving
enterprises under common control. After the equity transaction, the Company did not loss the
control over Bohe Coal, and the difference between the portion of received consideration
attributable to the company and the subsidiary’s shares of net assets calculated based on
proportion of equity disposed amounted to RMB 22,495,935 was recorded in capital surplus.
In November 2018, Guangdong Wind Power purchased 13.33% equity of Huilai Wind Power with
cash consideration of RMB 16,000,000. The difference between the paid consideration and the
subsidiary’s shares of net assets calculated based on proportion of equity acquired amounted to
RMB 12,589 was recorded in capital surplus. Meanwhile, the minority interests were reduced by
RMB 12,589.
202
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(35) Other comprehensive income
Other comprehensive income in the balance sheet Other comprehensive income in income statement for the year ended 31 December 2018
Less: Amounts
previously recognised
Attributable to Accruals in other Attributable to Attributable to
the parent before income comprehensive the parent minority
31 December company after 31 December tax in the income transferred Less: Income company after shareholders
2017 tax 2018 current year out in the current year tax expenses tax after tax
Other comprehensive income that will be
subsequently reclassified to profit or loss
Other comprehensive income that cannot be
transferred to profit or loss under equity
method 21,753,244 - 21,753,244 - - - - -
Gains or losses arising from changes in fair
value of available-for-sale financial assets 115,248,279 413,008,610 528,256,889 550,678,146 - (137,669,536) 413,008,610 -
137,001,523 413,008,610 550,010,133 550,678,146 - (137,669,536) 413,008,610 -
Other comprehensive income in the balance sheet Other comprehensive income in income statement for the year ended 31 December 2017
Less: Amounts
Attributable to Accruals previously recognised Attributable to Attributable to
the parent before income in other comprehensive Less: the parent minority
31 December company after 31 December tax in the income transfer out in Income tax company after shareholders
2016 tax 2017 current year the current year expenses tax after tax
Other comprehensive income that will be
subsequently reclassified to profit or loss
Other comprehensive income that can be
transferred to profit or loss under equity
method 21,753,244 - 21,753,244 - - - - -
Gains or losses arising from changes in fair
value of available-for-sale financial assets 123,305,771 (8,057,492) 115,248,279 (10,743,323) - 2,685,831 (8,057,492) -
145,059,015 (8,057,492) 137,001,523 (10,743,323) - 2,685,831 (8,057,492) -
203
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(36) Surplus reserve
31 December Increase in the Decrease in the 31 December
2017 current year current year 2018
Statutory surplus
reserve 2,641,707,753 69,654,691 - 2,711,362,444
Discretionary surplus
reserve 4,948,655,971 174,136,728 - 5,122,792,699
7,590,363,724 243,791,419 - 7,834,155,143
31 December Increase in the Decrease in the 31 December
2016 current year current year 2017
Statutory surplus
reserve 2,428,747,208 212,960,545 - 2,641,707,753
Discretionary surplus
reserve 4,416,254,610 532,401,361 - 4,948,655,971
6,845,001,818 745,361,906 - 7,590,363,724
In accordance with the Company Law and 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 12 June 2018, the Company
appropriated 10% of net profit for 2017, amounting to RMB 69,654,691 (2017: 10% of net profit for
2016, amounting to RMB 212,960,545) to the statutory surplus reserves. Meanwhile, the Company
appropriated 25% of net profit for 2017, amounting to RMB 174,136,728 (2017: 25% of net profit for
2016, amounting to RMB 532,401,361) to discretionary surplus reserves.
(37) Undistributed profits
2018 2017
Undistributed profits at the beginning of the
year 5,713,290,735 6,135,494,928
Add: Net profit attributable to equity owners
of the company 474,461,997 743,180,431
Less: Appropriation to statutory surplus
reserve (Note 4(36)) (69,654,691) (212,960,545)
Appropriation to discretionary surplus
reserve (Note 4(36)) (174,136,728) (532,401,361)
Dividends payable on ordinary shares
(a) (420,022,719) (420,022,718)
Others (b) (33,932,454) -
Undistributed profit at the end of the year 5,490,006,140 5,713,290,735
(a) In accordance with the resolution at the shareholders’ meeting dated 12 June 2018, the Company
proposed a cash dividend to the shareholders at RMB 0.8 per 10 shares, amounting to RMB
420,022,719 calculated by 5,250,283,986 issued shares.
204
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(37) Undistributed profits (Cont’d)
(b) In 2018, the assets transferred by the Group without compensation to the entities such as GEHC’s
subsidiaries and the Highway Management Station of Red Bay Economic Development Zone for
the assets related to supply of water, power and heat and property management and the
segregation and handover of municipal functions of SOEs totalled RMB 49,878,539, of which the
amount borne by the parent company was RMB 33,932,454.
(c) Undistributed profit at the end of the year
The surplus reserves attributable to the parent company appropriated by subsidiaries this year
were RMB 104,824,162 (2017: RMB 102,706,924).
As at 31 December 2018, the undistributed profits attributable to the parent company included an
appropriation of RMB 2,318,515,265 (31 December 2017: RMB 2,223,884,635) to surplus reserves
made by the Company’s subsidiaries.
(38) Revenue and cost of sales
2018 2017
Revenues from main operations 27,125,955,662 26,393,153,579
Revenue from other operations 282,558,516 250,638,478
27,408,514,178 26,643,792,057
2018 2017
Cost of sales from main operations 24,236,414,355 23,277,935,709
Cost of sales from other operations 10,302,225 14,352,960
24,246,716,580 23,292,288,669
(a) Revenue and cost of sale from main operations
2018 2017
Cost of sales Cost of sales
Revenues from from main Revenues from from main
main operations operations main operations operations
Revenue from sales of
electricity 26,949,774,763 24,099,233,129 26,250,079,293 23,156,713,366
Revenue from steam 126,032,622 87,916,412 93,907,579 77,158,338
Rendering of services 50,148,277 49,264,814 49,166,707 44,064,005
27,125,955,662 24,236,414,355 26,393,153,579 23,277,935,709
205
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(38) Revenue and cost of sales (Cont’d)
(b) Revenue and cost of sales from other operations
2018 2017
Cost of sales Cost of sales
Revenue from from other Revenue from from other
other operations operations other operations operations
Revenue from
integrated utilisation
of coal ash 240,230,510 1,539,166 203,698,123 8,004,336
Rental income 20,343,421 4,088,745 14,691,747 22,008
Revenue from sales of
materials 1,324,637 1,155,075 3,228,908 358,995
Others 20,659,948 3,519,239 29,019,700 5,967,621
282,558,516 10,302,225 250,638,478 14,352,960
Information for revenue, cost of sales, and profit from main operating activities are included in
segment reporting.
(39) Taxes and surcharges
2018 2017 Tax base
Real estate tax 69,351,272 69,109,064 Note 3
City maintenance and construction
tax 62,122,786 73,168,035 Note 3
Educational surcharge 50,942,570 58,982,876 Note 3
Land use tax 22,277,871 24,793,681
Stamp tax 17,440,628 17,479,308
Environmental protection tax 15,576,704 -
Vehicle and vessel use tax 258,095 336,680
Business tax - 2,800
237,969,926 243,872,444
(40) Selling and distribution expenses
2018 2017
Labour cost 15,734,977 3,750,534
Labour insurance 3,419,927 647,591
Entertainment expenses 2,450,910 1,325,568
Depreciation expenses (Note 4(11)) 168,621 4,185
Others 3,609,426 2,496,118
25,383,861 8,223,996
206
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(41) General and administrative expenses
2018 2017
Labour cost 279,543,009 238,192,466
Labour insurance 88,735,929 47,896,800
Amortisation of intangible assets 53,189,360 53,133,360
Fire safety expenses 47,034,725 40,578,207
Depreciation expenses (Note 4(10), (11)) 45,795,858 47,623,507
Property management expenses 26,313,608 26,750,517
Office expenses 20,613,680 21,491,527
Agency fee 18,257,095 22,951,448
Rental expenses 10,992,313 12,304,808
Maintenance cost 9,894,228 8,483,661
Afforestation fee 9,215,763 11,909,733
Traffic expenses 8,799,661 8,992,751
Travelling expenses 6,415,526 6,817,094
Labour costs 5,769,769 4,284,878
Entertainment expenses 3,810,169 4,505,193
Insurance expenses 3,465,634 2,874,227
Expenses on board meetings 719,286 640,032
Sewage charges 687,529 21,401,263
Embankment protection fee - 578,439
Others 49,096,796 56,607,341
688,349,938 638,017,252
207
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(42) Financial expenses
2018 2017
Interest of debentures 67,280,891 93,130,000
Interest expenses 1,366,253,508 1,267,471,049
Less: Amounts capitalised on qualifying
assets (141,335,812) (115,040,638)
Sub-total of interest expenses 1,292,198,587 1,245,560,411
Amortisation of unrecognised finance charge 91,431,485 83,103,789
Interest expenses of discounted notes 18,306,904 14,534,341
Amortisation of long-term debentures (Note
4(28)) 2,840,111 1,746,068
Less: Interest income (63,471,806) (65,153,386)
Exchange losses/(gains) - net 4,859,137 (4,702,846)
Bank charges and others 4,320,833 4,167,164
1,350,485,251 1,279,255,541
(43) Asset impairment losses
2018 2017
Impairment losses of fixed assets 151,136,187 29,483,080
Impairment losses of intangible assets 56,502,373 -
Impairment losses of goodwill 25,036,894 -
Impairment losses of construction in
progress 13,816,430 90,837,779
Bad debts losses 3,061,038 422,829
Losses on decline in the value of inventories 2,136,875 -
Impairment losses on financial assets
available-for sale - 25,010,686
251,689,797 145,754,374
208
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(44) Other income
Asset related/
2018 2017 income related
Nansha annual headquarters
enterprise award 2017 10,774,300 - Income related
Revenue from timely levy and
refund of VAT 9,219,882 9,873,727 Income related
Energy saving funds used as
policy liquidation subsidies in
previous years 4,165,231 - Asset related
Energy saving funds 4,112,576 2,873,723 Asset related
Prize for entrance of high and
new technological enterprise
cultivation library granted by
the Department of Finance of
Zhanjiang, Chikan Office 3,537,993 - Income related
Desulfurization project Shajiao A
5# generator unit 3,076,924 3,076,923 Asset related
Financial subsidy fund by
Zhanjiang Government 3,050,000 - Income related
Tax refund for PRC-made
equipment 2,296,209 2,296,208 Asset related
Income from refund of
commissions for individual
income tax 1,179,059 - Income related
Special funds for differential
electricity price 1,026,886 - Asset related
Special fund of provincial
industrialisation and
informatisation development
(2017) for technological
upgrading of enterprises - 18,595,400 Income related
Subsidy from Bureau of Finance
of Huidong County for
atmospheric pollution control - 2,000,000 Income related
Asset and
Others 10,311,787 12,156,841 income related
52,750,847 50,872,822
209
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(45) Investment income
2018 2017
Gains from long-term equity investments
under equity method 488,203,462 436,407,642
Investment income from available-for-sale
financial assets 49,140,042 52,319,444
Others 359,466 359,463
537,702,970 489,086,549
The Group obtains returns from investment without any significant restrictions.
(46) Gains/(Losses) on disposals of assets
Amount recognised in
non-recurring profit or
2018 2017 loss in 2018
Gains/(Losses) on disposals of
fixed assets 1,572,097 (4,720,404) 1,572,097
(47) Non-operating income
Amount recognised in
non-recurring profit or
2018 2017 loss in 2018
Claims and compensation income
(a) 45,458,540 5,223,824 45,458,540
Gains on donations (b) 36,986,954 - 36,986,954
Gains on scraping of fixed assets 2,245,329 - 2,245,329
Payables unnecessary to be paid 583,286 688,329 583,286
Government grants irrelevant to
ordinary activities - 345,500 -
Others 4,182,128 3,207,321 4,182,128
89,456,237 9,464,974 89,456,237
210
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(47) Non-operating income (Cont’d)
(a) In 2018, the claims and compensation income mainly represent the claim compensation of RMB
45,458,540 received by the Company’s subsidiary Xuwen Wind Power from the insurance
company for the Rammasun typhoon incident at the Yongshi Wind Power Plant.
(b) In 2018, the non-related electric power enterprises with diversified businesses voluntarily donated
assets to certain subsidiaries of the Group during their liquidation, totalling RMB 36,986,954. The
donated assets mainly comprised buildings, vehicles, etc.
(48) Non-operating expenses
Amount recognised in
non-recurring profit or
2018 2017 loss in 2018
Losses on scrapping of
long-term assets 21,457,918 - 21,457,918
Penalties and overdue fines
(Note 4(24)(b)). 12,679,505 7,130,563 12,679,505
Donations 2,935,000 1,140,000 2,935,000
Others 2,087,107 1,621,811 2,087,107
39,159,530 9,892,374 39,159,530
211
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(49) Income tax expenses
2018 2017
Current income tax calculated based on tax law
and related regulations 476,327,171 495,956,673
Deferred income tax (141,226,938) (79,467,357)
335,100,233 416,489,316
The reconciliation from income tax calculated based on the applicable tax rates and total profit
presented in the consolidated income statement to the income tax expenses is listed below:
2018 2017
Total profit 1,245,197,670 1,554,210,475
Income tax calculated at applicable tax rates 311,299,418 388,552,619
Effect of preferential tax rates of subsidiaries (37,729,056) (22,615,361)
Income not subject to tax (134,879,733) (127,632,250)
Costs, expenses and losses not deductible for tax
purposes 17,227,646 13,494,284
Deductible losses for which no deferred tax asset
was recognised in current period 141,893,452 107,242,635
Temporary differences for which no deferred tax
asset was recognised in current period 58,065,184 54,279,872
Utilisation of deductible temporary differences and
deductible losses for which no deferred tax asset
was recognised in previous periods (17,039,919) (5,566,961)
Effect of other deductible expenses (339,410) (4,301,326)
Tax filing differences of income tax in prior years (3,397,349) 5,963,530
Repayment of income tax of tax inspection - 7,072,274
Income tax expenses 335,100,233 416,489,316
212
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(50) Earnings per share
(a) Basic earnings per share
Basic earnings per share is calculated by dividing consolidated net profit attributable to ordinary
shareholders of the parent company by the weighted average number of ordinary shares
outstanding
2018 2017
Consolidated net profit attributable to ordinary
shareholders of the parent company 474,461,997 743,180,431
Weighted average number of outstanding ordinary
shares of the Company 5,250,283,986 5,250,283,986
Basic earnings per share 0.09 0.14
Including:
- Basic earnings per share from continuing
operations 0.09 0.14
- Basic earnings per share from discontinued
operations - -
(b) Diluted earnings per share
Diluted earnings per share is calculated by dividing net profit attributable to ordinary shareholders
of the parent company adjusted based on the dilutive potential ordinary shares by the adjusted
weighted average number of ordinary shares outstanding. In 2018, there were no dilutive potential
ordinary shares (2017: Nil), and hence diluted earnings per share is equal to basic earnings per
share.
(51) Expenses by nature
Cost of sales, taxes and surcharges, selling and distribution expenses, general and administrative
expenses, research and development expenses, financial expenses and asset impairment losses
in the income statement are classified below according to nature:
2018 2017
Consumed fuel and low value consumables, etc. 18,171,718,721 17,222,768,104
Depreciation and amortisation expenses 3,440,501,770 3,574,163,096
Employee benefits 1,779,288,108 1,672,491,580
Financial expenses 1,350,485,251 1,279,255,541
Others 813,013,130 781,355,118
Repair charges 928,420,266 902,064,084
Impairment losses on non-current assets 246,491,884 145,331,545
Transaction expenses 52,083,007 12,243,073
Rental 18,593,216 17,740,135
Research and development expenses 5,043,776 16,980,873
26,805,639,129 25,624,393,149
213
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(52) Notes to the cash flow statement
(a) Cash received relating to other operating activities
2018 2017
Interest income 59,564,119 66,910,733
Government grants 38,263,746 59,495,276
Rental income 21,564,026 13,425,844
Others 18,740,883 4,241,150
138,132,774 149,296,827
(b) Cash paid relating to other operating activities
2018 2017
Insurance expenses 103,099,272 90,337,396
Sewage charges 63,437,485 64,746,917
Transaction expenses 55,207,987 12,977,656
Fire safety expenses 51,242,734 40,578,207
Traffic expenses 33,298,085 27,060,505
Property management expenses 31,646,545 26,750,517
Office expenses 26,262,942 25,371,981
Rental expenses 20,638,470 17,740,135
Utility fees 19,584,607 21,248,782
Agency fee 19,352,521 22,951,448
Union dues 17,049,514 17,500,027
Travelling expenses 11,840,286 11,512,096
Maintenance cost 10,508,923 8,483,661
Expenses for Party construction 6,439,857 -
Entertainment expenses 6,261,079 5,830,761
Research and development expenses 5,043,776 16,980,873
Deposit of performance guarantee 4,000,000 -
Others 98,300,386 76,668,679
583,214,469 486,739,641
(c) Cash received relating to other investing activities
2018 2017
Cash at bank and on hand acquired from
Maoming Zhenneng’s equity transaction
with Mao Thermal 161,670,884 -
214
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(52) Notes to the cash flow statement (Cont’d)
(d) Cash received relating to other financing activities
2018 2017
Income from odd lots - 42,438
(e) Cash paid relating to other financing activities
2018 2017
Payment of capital withdrawal to minority
shareholders by Yuejia Electric 136,080,000 -
(53) Supplementary information to the cash flow statement
(a) Supplementary information to the cash flow statement
Reconciliation from net profit to cash flows from operating activities
2018 2017
Net profit 910,097,437 1,137,721,159
Add: Provisions for asset impairment 251,689,797 145,754,374
Depreciation of fixed assets and
investment properties 3,382,287,226 3,499,814,726
Amortisation of intangible assets,
long-term prepaid expenses and
deferred income 36,135,838 72,988,124
(Gains)/Losses on disposal of fixed
assets, intangible assets and other
long-term assets (27,805,508) 4,720,404
Financial expenses 1,409,636,224 1,344,945,364
Investment income (537,702,970) (489,086,549)
Increase in deferred tax (141,226,938) (79,467,357)
Decrease/(Increase) in inventories 43,680,628 (14,481,532)
Increase in operating payables (360,270,970) (111,321,004)
Increase/(Decrease) in operating
payables 1,064,707,342 (1,835,553,206)
Others (31,291,750) -
Net cash flows from operating activities 5,999,936,356 3,676,034,503
215
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(53) Supplementary information to the cash flow statement (Cont’d)
(a) Supplementary information to the cash flow statement (Cont’d)
Significant operating, investing and financing activities that do not involve cash receipts and
payments
2018 2017
Inventory procurement payment made by
acceptance notes 941,161,107 297,611,800
Long-term assets of finance lease through
leaseback 900,000,000 -
Non-moneytary asset acquired from
Maoming Zhenneng’s equity transaction
with Mao Thermal 267,343,152
Long-term assets held under finance leases 240,830,581 -
2,349,334,840 297,611,800
Net increase/(decrease) in cash and cash equivalents
2018 2017
Cash at the end of the year 5,570,382,892 4,996,580,490
Less: Cash at the beginning of the year (4,996,580,490) (5,184,873,650)
Net increase/(decrease) in cash and cash
equivalents 573,802,402 (188,293,160)
(b) Cash and cash equivalents
31 December 2018 31 December 2017
Cash 5,574,382,892 4,996,580,490
Less: 4,000,000 -
Cash and cash equivalents at the end of the
year(i) 5,570,382,892 4,996,580,490
(i) Cash and cash equivalents at the end of the year
31 December 2018 31 December 2017
Cash on hand 31,413 37,745
Cash at bank that can be readily drawn on
demand 5,570,351,479 4,996,542,745
5,570,382,892 4,996,580,490
216
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
4 Notes to the consolidated financial statements (Cont’d)
(54) Monetary items denominated in foreign currency
31 December 2018
Balance in foreign
currencies Exchange rate Balance in RMB
Cash at bank and on hand -
USD 190 6.8632 1,304
HKD 12,883 0.8762 11,288
12,592
Long-term borrowings -
USD 9,947,334 6.8632 68,270,542
EUR 450,756 7.8473 3,537,220
71,807,762
Current portion of non-current
liabilities -
USD 951,159 6.8632 6,527,993
EUR 314,641 7.8473 2,469,081
8,997,074
5 Changes in consolidation scope
Subsidiaries established during the year:
Major business Place of Nature of Registered Shareholding Acquisition
Subsidiaries location registration business capital (%) method
Jinwan District,
Yudean Zhuhai Offshore Zhuhai, Zhuhai,
Wind Power Co., Ltd. Guangdong Guangdong Electricity
(“Zhuhai Wind Power”) Province Province generation 65,000,000 100.00% Investment
Maonan
Yudean Zhencheng District,
Comprehensive Energy Maoming, Maoming,
Co., Ltd. (“Zhencheng Guangdong Guangdong Electricity
Comprehensive”) Province Province generation 20,000,000 37.23% Investment
217
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
6 Interest in other entities
(1) Interest in subsidiaries
(a) Composition of the Group
Subsidiaries Major business location Place of registration Nature of business Shareholding (%) Acquisition method
Direct Indirect
Maoming Zhenneng (i) Maoming Maoming Electricity 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 Coal Maoming Maoming Electricity generation 67.00% - Investment
Business combinations involving enterprises
Yuheng Electric Zhanjiang Zhanjiang Electricity generation - 76.00% under common control
Xuwen Wind Power Zhanjiang Zhanjiang Electricity generation - 70.00% Investment
Guangdong Yudean Huadu Natural Gas Thermal Power Co., Ltd.
(“Huadu Natural Gas”) Guangzhou Guangzhou Electricity generation 65.00% - Investment
Dabu Electric 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
Business combinations involving enterprises
Zhanjiang Electric Zhanjiang Zhanjiang Electricity generation 76.00% - under common control
Business combinations involving enterprises
Yuejia Electric Meizhou Meizhou Electricity generation 58.00% - under common control
Business combinations involving enterprises
Yuejiang Power Shaoguan Shaoguan Electricity generation 90.00% - under common control
Business combinations involving enterprises
Zhongyue Energy Zhanjiang Zhanjiang Electricity generation 90.00% - under common control
Yudean Power Sales Co., Ltd. (“Power Sales”) Guangzhou Guangzhou Electricity generation 100.00% - Investment
Qujie Wind Power Zhanjiang Zhanjiang Electricity generation 100.00% - Investment
Yangjiang Wind Power Yangjiang Yangjiang Electricity generation - 100.00% Investment
Business combinations involving enterprises not
Lincang Energy Lincang, Yunnan Province Lincang Electricity generation 100.00% under common control
Business combinations involving enterprises
Guangqian Electric Shenzhen Shenzhen Electricity generation 100.00% - under common control
Business combinations involving enterprises
Huizhou Natural Gas Huizhou Huizhou Electricity generation 67.00% - under common control
Business combinations involving enterprises
Pinghai Power Huizhou Huizhou Electricity generation 45.00% - under common control
Business combinations involving enterprises
Shibeishan Wind Power Jieyang Jieyang Electricity generation - 70.00% under common control
Business combinations involving enterprises
Red Bay Power Shanwei Shanwei Electricity generation 65.00% - under common control
Business combinations involving enterprises not
Guangdong Wind Power Guangzhou Guangzhou Electricity generation 100.00% - under common control
Tongdao Yuexin Wind Power Co., Ltd. (“Tongdao Company”) Huaihua, Hunan Province Huaihua Electricity generation 100.00% Investment
218
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
6 Interest in other entities (Cont’d)
(1) Interest in subsidiaries (Cont’d)
(a) Composition of the Group (Cont’d)
Major business Nature of
Subsidiaries location Place of registration business Shareholding (%) Acquisition method
Direct Indirect
Guangdong Yudean Pingyuan Wind Power Co., Ltd. Electricity
(“Pingyuan Wind Power”) Meizhou Meizhou generation - 100.00% Investment
Guangdong Yudean Heping Wind Power Co., Ltd. Electricity
(“Heping Wind Power”) Heyuan Heyuan generation - 100.00% Investment
Business combinations
Electricity involving enterprises not
Huilai Wind Power Jieyang Jieyang generation - 83.33% under common control
Guangdong Yuejiang Hongrui Power Technology Electricity
Development Co., Ltd. (“Hongrui Technology”) Shaoguan Shaoguan generation - 90.00% Investment
Guangdong Yudean Yongan Natural Gas Thermal Power Electricity
Co., Ltd. (“Yongan Natural gas”) Zhaoqing Zhaoqing generation 90.00% - Investment
Hunan Xupu Yuefeng New Energy Co., Ltd. (“Xupu Huaihua, Hunan Xupu County, Huaihua, Electricity
Yuefeng”) Province Hunan Province generation - 100.00% Investment
Guangxi Zhuang Wuxuan, Guangxi
Guangxi Wuxuan Yuefeng New Energy Co., Autonomous Zhuang Autonomous Electricity
Ltd.(“Wuxuan Yuefeng”) Region Region generation - 100.00% Investment
Electricity
Pingdian Comprehensive Huizhou Huizhou generation - 45.00% Investment
Electricity
Zhuhai Wind Power Zhuhai Zhuhai generation - 100.00% Investment
Electricity
Zhencheng Comprehensive Maoming Maoming generation - 37.23% Investment
(i) On 30 November 2018, Maoming Zhenneng merged Maoming Thermal, wholly-owned by GEGC. After the merger, GEGC held 30.12% equity of Maoming
Zhenneng. According to the agreement between the Company and GEGC, the delegated shareholder and director from GEGC maintain consensus with
those of the Company while exercising the voting rights during the shareholders’ meeting and the Board of Directors’ meeting at Maoming Zhenneng.
Therefore, the Company owns control power over Maoming Zhenneng. In addition, pursuant to the consent agreement entered into between the Company
and GEGC, the Company holds 61.33% voting rights in Zhencheng Comprehensive, a subsidiary whose 80% equity is directly held by Maoming Zhenneng.
Therefore, the Company owns control power over Zhencheng Comprehensive.
219
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
6 Interest in other entities (Cont’d)
(1) Interest in subsidiaries (Cont’d)
(a) Composition of the Group (Cont’d)
(ii) Pinghai Power was acquired from GEGC by the Group in 2012 through offering non-public shares. According to the agreement between GEGC and
Guangdong Huaxia Electric Power Development Co., Ltd. (“Huaxia Electric”), which 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.
(b) Subsidiaries with significant minority interests
Gains and losses attributable
Gains and losses attributable to minority shareholders in Dividends distributed to Minority interests as at 31
Subsidiaries to minority shareholders (%) 2018 minority shareholders in 2018 December 2018
Jinghai Power 35.00% 41,463,227 73,436,079 1,228,252,092
Zhanjiang Electric 24.00% 56,187,027 43,848,218 981,073,313
Huizhou Natural Gas 33.00% 85,441,192 61,921,153 652,493,223
Pinghai Power 55.00% 245,899,656 232,044,460 1,132,812,046
Red Bay Power 35.00% 80,617,756 75,052,635 1,155,704,809
Maoming Zhenneng 53.46% (33,988,525) - 702,418,868
220
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
6 Interest in other entities (Cont’d)
(1) Interest in subsidiaries (Cont’d)
(b) Subsidiaries with significant minority interests (Cont’d)
The major financial information of the significant non-fully-owned subsidiaries of the Group is listed below:
31 December 2018 31 December 2017
Non-current Current Non-current Non-current Current Non-current
Current assets assets Total assets liabilities liabilities Total liabilities Current assets assets Total assets liabilities liabilities Total liabilities
Jinghai Power 1,204,643,294 7,994,284,373 9,198,927,667 2,607,699,843 3,081,936,133 5,689,635,976 1,220,230,956 8,519,603,527 9,739,834,483 2,649,314,880 3,489,876,908 6,139,191,788
Zhanjiang Electric 2,970,589,465 1,477,137,297 4,447,726,762 332,108,967 27,812,323 359,921,290 2,809,749,417 1,600,195,341 4,409,944,758 335,297,509 32,069,003 367,366,512
Huizhou Natural Gas 702,242,889 3,486,104,915 4,188,347,804 816,535,612 1,394,560,000 2,211,095,612 531,864,001 2,867,325,353 3,399,189,354 819,036,708 828,770,000 1,647,806,708
Pinghai Power 1,213,521,626 4,504,301,232 5,717,822,858 1,167,600,036 2,490,564,556 3,658,164,592 1,009,047,306 4,875,445,336 5,884,492,642 1,359,960,430 2,490,065,211 3,850,025,641
Red Bay Power 943,046,924 5,759,863,813 6,702,910,737 1,582,252,157 1,818,644,840 3,400,896,997 1,010,276,845 6,165,453,533 7,175,730,378 1,942,232,599 1,907,000,000 3,849,232,599
Maoming Zhenneng 424,289,071 2,608,341,517 3,032,630,588 1,169,249,659 552,952,116 1,722,201,775 508,180,380 2,570,370,415 3,078,550,795 1,437,413,801 665,144,627 2,102,558,428
2018 2017
Total comprehensive Cash flows from Total comprehensive Cash flows from
Revenue Net profit/(loss) income operating activities Revenue Net profit/(loss) income operating activities
Jinghai Power 4,871,729,888 118,466,364 118,466,364 1,116,414,293 4,811,801,719 233,130,409 233,130,409 1,131,168,452
Zhanjiang Electric 1,997,634,196 234,112,612 234,112,612 421,420,713 1,944,172,914 163,992,141 163,992,141 328,892,120
Huizhou Natural Gas 2,181,208,736 258,912,704 258,912,704 671,596,484 1,727,670,061 208,488,731 208,488,731 372,435,087
Pinghai Power 3,409,291,625 447,090,284 447,090,284 780,998,268 3,392,086,464 436,668,322 436,668,322 942,514,472
Red Bay Power 4,089,089,204 230,336,446 230,336,446 847,911,932 3,916,842,705 238,262,334 238,262,334 391,792,666
Maoming Zhenneng 1,552,628,327 (98,577,590) (98,577,590) 264,329,442 1,606,408,261 (94,333,024) (94,333,024) 92,024,761
221
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
6 Interest in other entities (Cont’d)
(2) Interests in joint ventures and associates
(a) Basic information of significant joint ventures and associates
Whether strategic
Major business Place of Nature of to the Group's
location registration business activities Shareholding (%)
Direct Indirect
Joint venture -
Industry fuel Guangzhou Guangzhou Fuel trade Yes 50.00% -
Associates -
Yudean
Finance Guangzhou Guangzhou Finance Yes 25.00% -
Taishan Power
Electric Taishan Taishan generation Yes 20.00% -
The above equity investments are all measured using equity method by the Group.
(b) Summarised financial information for significant joint ventures:
31 December
2018 31 December 2017
Industry fuel Industry fuel
Current assets 2,925,805,788 3,023,652,373
Including: Cash and cash equivalents 1,358,381,277 1,486,090,950
Non-current assets 229,601,671 238,031,473
Total assets 3,155,407,459 3,261,683,846
Current liabilities 1,948,258,211 2,049,097,586
Non-current liabilities 750,000 -
Total liabilities 1,949,008,211 2,049,097,586
Net assets 1,206,399,248 1,212,586,260
Attributable to equity owners of the parent company 1,206,399,248 1,212,586,260
Shares of net assets based on shareholding (i) 603,199,624 606,293,130
Adjustments (614,728) (614,728)
Carrying value of equity investment in joint venture 602,584,896 605,678,402
Revenue 21,313,952,451 20,866,250,505
Financial expenses (14,617,463) 5,757,908
Income tax expenses (47,849,419) (54,847,117)
Net profit 144,800,961 167,764,414
Total comprehensive income 144,800,961 167,764,414
Dividends received from joint ventures by the Group for
the current year 75,493,986 59,231,115
(i) Share of asset is calculated according to shareholding based on the amount attributable to the
parent company in the consolidated financial statements of joint ventures. The amount in the
consolidated financial statements of joint ventures considers the impacts of fair value of
identifiable assets and liabilities of joint ventures at the time of acquisition and the unification of
accounting policies.
222
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
6 Interest in other entities (Cont’d)
(2) Interests in joint ventures and associates (Cont’d)
(c) Summarised financial information for significant associates
31 December 2018 31 December 2017
Yudean Finance Taishan Electric Yudean Finance Taishan Electric
Current assets 8,618,449,490 999,098,037 8,683,630,097 940,022,602
Non-current assets 13,958,043,611 12,126,348,269 13,100,038,881 13,059,475,755
Total assets 22,576,493,101 13,125,446,306 21,783,668,978 13,999,498,357
Current liabilities 19,713,970,097 2,373,171,787 19,034,164,167 2,890,641,148
Non-current liabilities - 905,200,000 - 1,300,500,000
Total liabilities 19,713,970,097 3,278,371,787 19,034,164,167 4,191,141,148
Minority interests - 1,029,541 - 979,164
Attributable to equity
owners of the parent
company 2,862,523,004 9,846,044,978 2,749,504,811 9,807,378,045
Shares of net assets
based on
shareholding(i) 715,630,751 1,969,208,996 687,376,205 1,961,475,609
Adjustments
- Goodwill 13,325,000 - 13,325,000 -
Carrying value of equity
investment in
associates 728,955,751 1,969,208,996 700,701,205 1,961,475,609
Revenue 720,277,335 8,171,917,086 639,369,624 6,858,639,385
Net profit 341,902,454 646,576,934 301,317,539 596,418,401
Other comprehensive
income - - - (201,400)
Total comprehensive
income 341,902,454 646,576,934 301,317,539 596,217,001
Dividends received from
associates by the
Group for the current
year 57,221,066 121,582,000 42,295,033 95,281,354
(i) Share of asset is calculated according to shareholding based on the amount attributable to the parent
company in the consolidated financial statements of associates. The amount in the consolidated financial
statements of associates considers the impacts of fair value of identifiable net assets and liabilities of
associates at the time of acquisition and the unification of accounting policies.
223
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
6 Interest in other entities (Cont’d)
(2) Interests in joint ventures and associates (Cont’d)
(d) Summarised information for insignificant joint ventures and associates
2018 2017
Associates:
Aggregate carrying value of investment 3,094,385,111 2,533,151,196
Aggregate of the following items in
proportion
Net profit (i) 201,011,983 194,143,964
Other comprehensive income (i) - -
Total comprehensive income 201,011,983 194,143,964
(i) The net profit and other comprehensive income have taken into account the impacts of both the fair
value of the identifiable assets and liabilities at the time of acquisition and the unification of
accounting policies.
7 Segment information
The reportable segments of the Group are the business units that provide different products or
service, or operate in the different areas. Different businesses or areas require different
technologies and marketing strategies, the Group, therefore, separately manages the production
and operation of each reportable segment and evaluates their operating results respectively, in
order to make decisions about resources to be allocated to these segments and to assess their
performance.
The Group possesses 9 reportable segments, in charge of power generating and selling in
different regions in Guangdong Province.
Inter-segment transfer prices are measured by reference to selling prices to third parties.
The assets are allocated based on the operations of the segment and the physical location of the
asset. The liabilities are allocated based on the operations of the segment. Expenses indirectly
attributable to each segment are allocated to the segments based on the proportion of each
segment’s revenue.
For the purposes of assessing segment performance and distributing resources among segments,
the Group’s management regularly reviews assets, liabilities, income, expenses and business
performance attributable to each reportable segment on the following bases:
Segment assets include all tangible assets, intangible assets, other long-term assets and current
assets like accounts receivable, with the exception of deferred tax assets and other unallocated
corporate assets. Segment liabilities include payables and advances, bank borrowings and interest
payable, long-term and short-term debentures and dividends payable attributable to the individual
segments, but exclude deferred tax liabilities.
Segment financial performance represents operating income (including trading revenues from
external customers and inter-segment), deducting expenses, depreciation, amortisation and
impairment losses attributable to the individual segments, and interest income and expense from
cash balances and borrowings directly attributable to one of the segments. The calculation of
pricing among inter-segments is determined with reference to similar terms for external parties.
224
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
7 Segment information (Cont’d)
(a) Segment information as at and for the year ended 31 December 2018 is as follows:
Maoming Zhanjiang Zhongyue Huizhou Natural
The Company Jinghai Power Pinghai Power Red Bay Power Zhenneng Electric Energy Gas Others Elimination Total
Revenue from external
customers 2,284,823,995 4,871,729,888 3,409,291,625 4,089,089,204 1,545,331,653 1,993,542,506 1,542,497,777 2,180,616,027 5,491,591,503 - 27,408,514,178
Inter-segment revenue 3,075,605 - - - 7,296,674 4,091,690 1,271,552 592,709 71,875,490 (88,203,720) -
Cost of sales from
main operations (2,132,196,128) (4,384,258,761) (2,587,950,472) (3,528,626,139) (1,569,909,568) (1,746,397,799) (1,561,288,213) (1,743,066,440) (5,070,081,609) 87,360,774 (24,236,414,355)
Interest income 6,208,285 1,135,898 2,892,161 1,478,243 1,365,958 24,094,462 4,583,619 961,770 20,751,410 - 63,471,806
Interest expenses (206,465,168) (213,894,860) (129,287,358) (131,609,629) (74,849,514) - (135,978,016) (22,353,471) (440,806,283) 44,738,808 (1,310,505,491)
Investment income
from associates and
joint ventures 484,016,449 - - - - - - - 6,366,187 (2,179,174) 488,203,462
Asset impairment
losses (154,226,974) - - - (466,128) (1,851,181) - (25,324,987) (68,719,281) (1,101,246) (251,689,797)
Depreciation and
amortisation (123,267,737) (619,218,749) (383,999,531) (474,114,339) (192,599,652) (142,148,483) (294,131,700) (287,104,648) (944,316,077) 25,424,330 (3,435,476,586)
Total profit 1,181,419,218 156,165,659 603,353,600 308,745,939 (128,604,361) 268,457,570 (187,820,258) 346,706,972 (267,214,852) (1,036,011,817) 1,245,197,670
Income tax expenses (5,383,646) (37,699,295) (156,263,316) (78,409,493) 30,026,771 (34,344,958) 49,806,751 (87,794,268) (33,374,020) 18,335,241 (335,100,233)
Net profit 1,176,035,572 118,466,364 447,090,284 230,336,446 (98,577,590) 234,112,612 (138,013,507) 258,912,704 (300,588,872) (1,017,676,576) 910,097,437
Total assets 29,267,345,052 9,198,927,667 5,717,822,858 6,702,910,737 3,032,630,588 4,447,726,762 4,386,995,844 4,188,347,804 27,967,600,618 (21,580,645,624) 73,329,662,306
Total liabilities 5,554,859,651 (5,689,635,976) 3,658,164,592 3,400,896,997 1,722,201,775 359,921,290 3,487,568,624 2,211,095,612 29,696,219,014 (2,589,450,920) 41,811,840,659
Non-cash expenses
other than
depreciation and
amortisation - - - - - - - - - - -
Long-term equity
investments in
associates and joint
ventures 6,340,869,567 - - - - - - - 60,774,048 (6,508,861) 6,395,134,754
Addition of non-current
assets (i) (214,606,469) (524,416,986) (371,144,104) (396,943,951) 12,153,820 (108,600,024) (166,751,401) 616,712,362 1,470,735,090 419,521,941 736,660,278
(i) Non-current assets are excluding financial assets, long-term equity investments and deferred tax assets.
225
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
7 Segment information (Cont’d)
(b) Segment information as at and for the year ended 31 December 2017 is as follows:
Maoming Zhanjiang Zhongyue Huizhou Natural
The Company Jinghai Power Pinghai Power Red Bay Power Zhenneng Electric Energy Gas Others Elimination Total
Revenue from external
customers 2,117,444,166 4,811,801,719 3,392,086,464 3,916,842,705 1,606,408,261 1,938,695,991 1,289,553,459 1,727,670,061 5,843,289,231 - 26,643,792,057
Inter-segment revenue 55,725 - - - - 5,476,923 - 189,442 105,726,117 (111,448,207) -
Cost of sales from
main operations (2,014,615,189) (4,159,809,344) (2,594,540,505) (3,344,808,620) (1,609,917,306) (1,700,604,512) (1,353,391,795) (1,382,065,573) (5,244,068,216) 125,885,351 (23,277,935,709)
Interest income 4,215,500 1,301,144 4,647,642 2,223,345 1,085,577 21,691,173 5,932,507 1,043,048 23,013,450 - 65,153,386
Interest expenses (199,610,835) (217,463,086) (130,480,952) (141,256,534) (72,192,499) - (130,885,418) (24,633,056) (382,700,760) 39,128,388 (1,260,094,752)
Investment income
from associates and
joint ventures 430,233,196 - - - - - - - 6,174,446 - 436,407,642
Asset impairment
losses (673,578,111) - - (438,532) - (15,137,474) (12,990,036) - (92,177,648) 648,567,427 (145,754,374)
Depreciation and
amortisation (126,140,089) (683,130,808) (388,880,201) (539,874,860) (203,959,542) (155,323,006) (280,559,563) (236,575,168) (971,157,375) 19,041,857 (3,566,558,755)
Total profit 644,885,699 305,415,844 595,737,707 318,743,687 (126,843,762) 221,664,415 (251,416,610) 278,104,155 (75,614,981) (356,465,679) 1,554,210,475
Income tax expenses 51,661,211 (72,285,435) (159,069,385) (80,481,353) 32,510,738 (57,672,274) 28,865,939 (69,615,424) (86,670,748) (3,732,585) (416,489,316)
Net profit 696,546,910 233,130,409 436,668,322 238,262,334 (94,333,024) 163,992,141 (222,550,671) 208,488,731 (162,285,729) (360,198,264) 1,137,721,159
-
Total assets 27,497,912,825 9,739,834,483 5,884,492,642 7,175,730,378 3,078,550,795 4,409,944,758 4,946,405,691 3,399,189,354 26,351,807,529 (21,476,453,132) 71,007,415,323
-
Total liabilities 4,954,412,031 6,139,191,788 3,850,025,641 3,849,232,599 2,102,558,428 367,366,512 3,908,964,964 1,647,806,708 17,863,335,579 (3,378,338,940) 41,304,555,310
Non-cash expenses
other than
depreciation and
amortisation - - - - - - - - - - -
Long-term equity
investments in
associates and joint
ventures 5,738,255,738 - - - - - - - 62,750,674 - 5,801,006,412
-
Addition of non-current
assets (i) (242,705,204) (338,555,488) (343,277,481) (380,351,943) (100,252,081) (19,709,710) (422,727,415) 606,161,826 297,184,387 876,337,749 (67,895,360)
(i) Non-current assets are excluding financial assets, long-term equity investments and deferred tax assets.
226
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
7 Segment information (Cont’d)
(c) Geographical information
The Group’s operating income derives from the development and operation of electric plants in
China and all assets are within China.
(d) Major customers
In 2018, the revenue from GPGC and its subsidiaries was RMB 26,949,774,763 (2017: RMB
26,250,079,293), which took up 98.33% of the Group’s operating income (2017: 98.52%).
8 Related parties and related party transactions
(1) General information of the parent company
(a) General information of the parent company
Place of registration Nature of business
Operation and management of power generation
enterprises, capital management of electricity assets,
GEGC Guangzhou construction of power plant and sales of electricity
Ultimate holding party of the Company is State-owned Assets Supervision And Administration
Commission of the People's Government of Guangdong Province.
(b) Registered capital and changes in registered capital of the parent company
31 December Increase in the Decrease in the 31 December
2017 current year current year 2018
GEGC 23,000,000,000 - - 23,000,000,000
(c) The percentages of shareholding and voting rights in the Company held by the parent company
31 December 2018 31 December 2017
Shareholding Shareholding
(%) Voting rights (%) (%) Voting rights (%)
GEGC 67.39% 67.39% 67.39% 67.39%
(2) Information of subsidiaries
The general information and other related information of the subsidiaries are set out in Note 6(1)(a).
227
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(3) Information of joint ventures and associates
Apart from material joint ventures and associates disclosed in Note VI, other joint ventures and
associates that involved in related party transactions with the Company are listed as follows:
Name of entity Relationship with the Group
Yudean Shipping Associate
(4) Information of other related parties
Relationship with the Group
Maoming Thermal Controlled by GEGC
Shaoguan Electric Power Plant Controlled by GEGC
Guangdong Yudean Shajiao C Power Plant (“Shajiao C”) Controlled by GEGC
Guangdong Zhuhai Jinwan Power Co., Ltd. (“Zhuhai Jinwan
Electric”) Controlled by GEGC
Guangdong Yudean Property Management Co., Ltd.
(“Yudean PM”) Controlled by GEGC
Guangdong Yudean Information Technology Co., Ltd.
(“Yudean Technology”) Controlled by GEGC
Guangdong Yudean Property Investment Co., Ltd. (“Yudean
PI”) Controlled by GEGC
Zhuhai Grand Power Energy Development Co., Ltd. (“Zhuhai
Grand Power”) Controlled by GEGC
Yudean Environmental Controlled by GEGC
Shenzhen Tianxin Controlled by GEGC
Guangzhou Huangpu Power Engineering Co., Ltd.
(“Huangpu Power Engineering”) Controlled by GEGC
Guangzhou Huangpu Yuehua Power Plant Human
Resources Co., Ltd. (“Huangpu Yuehua Human
Resources”) Controlled by GEGC
Inner Mongolia Yudean Menghua New Energy Co., Ltd.
(“Menghua New Energy”) Controlled by GEGC
Guangdong Yuehua Power Co., Ltd. (“Yuehua Power”) Controlled by GEGC
Guangdong Yudean Yunhe Power Co., Ltd. (“Yunhe Power”) Controlled by GEGC
Guangdong Yuelong Power Generation Co., Ltd. (“Yuelong
Power”) Controlled by GEGC
Guangdong Yudean Zhongshan Thermal Power Plant
(“Zhongshan Thermal”) Controlled by GEGC
Guangdong Port of Yangjiang Harbour Service Co., Ltd.
(“Port of Yangjiang”) Controlled by GEGC
Guangzhou Development District Yudean New Energy Co.,
Ltd. (“Yudean New Energy”) Controlled by GEGC
Guangdong Guanghe Power Co., Ltd. (“Guanghe Power”) Controlled by GEGC
Guangdong Xinhui Power Generation Co., Ltd. (“Xinhui
Power”) Controlled by GEGC
Guangdong Yudean Natural Gas Co., Ltd. (“Yudean Natural
Gas”) Controlled by GEGC
Guangdong Yudean Fengshuba Power Generation Co., Ltd.
(“Fengshuba Power”) Controlled by GEGC
Guangdong Yudean Changhu Power Generation Co., Ltd.
(“Changhu Power”) Controlled by GEGC
228
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(4) Information of other related parties (Cont’d)
Relationship with the Group
Guangdong Yudean Qingxi Power Generation Co., Ltd. (“Qingxi
Power”) Controlled by GEGC
Guangdong Yudean Liuxihe Power Generation Co., Ltd.
(“Liuxihe Power”) Controlled by GEGC
Guangdong Province Zhuhai Power Generation Co., Ltd.
(“Zhuhai Electric”) Controlled by GEGC
Guangdong Yudean Xinfengjiang Power Generation Co., Ltd.
(“Xinfengjiang Power”) Controlled by GEGC
Guangdong Yudean Zhanjiang Biomass Power Generation Co.,
Ltd. (“Zhanjiang Biomass”) Controlled by GEGC
Guizhou Yueqian Electric Co., Ltd. (“Yueqian Electric”) Controlled by GEGC
Guangdong Yudean Changtan Power Generation Co., Ltd.
(“Changtan Power”) Controlled by GEGC
Guangdong Yudean Ship Management Co., Ltd. (“Yudean Ship”) Controlled by GEGC
Guangzhou Yudean Huizhou New Energy Co., Ltd. (“Huizhou
New Energy”) Controlled by GEGC
Yudean Leasing Controlled by GEGC
Guangdong Yudean Nanshui Power Generation Co., Ltd.
(“Nanshui Power”) Controlled by GEGC
Yudean Property Self-Insurance Controlled by GEGC
(5) Related party transactions
(a) Purchase and sales of goods, and rendering and receiving of services
Purchase of goods and receiving of services:
Pricing policy of
Type of related party related party
Related parties transaction transaction 2018 2017
Industry fuel Purchase of fuel Agreement price14,352,059,858 14,389,960,951
Yudean Natural Gas Purchase of fuel Agreement price 497,452,121 260,827,167
Yudean Environmental Purchase of materials Agreement price 148,417,712 118,654,832
Receipt of property
Yudean PM services Agreement price 31,653,612 31,553,554
Yudean Shipping Receipt of tug services Agreement price 23,213,805 24,720,000
Yudean Property Receipt of insurance
Self-Insurance services Agreement price 19,958,353 -
Huangpu Power Receipt of maintenance
Engineering and repair services Agreement price 16,989,393 11,533,589
Port of Yangjiang Receipt of tug services Agreement price 9,247,217 8,029,908
Huangpu Yuehua Receipt of human resource
Human Resources outsourcing services Agreement price 5,828,481 14,570,164
Receipt of management
Yudean Technology services Agreement price 3,906,107 2,864,767
Receipt of management
Yudean PI services Agreement price 40,541 -
Maoming Thermal Purchase of materials Agreement price - 2,724,380
Receipt of distribution
Yunhe Power services Agreement price - 1,548,428
Receipt of distribution
Zhuhai Jinwan Electric services Agreement price - 206,533
15,108,767,200 14,867,194,273
229
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for 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 services (Cont’d)
Sales of goods or rendering of services:
Pricing policy of
Type of related party related party
Related parties transaction transaction 2018 2017
Yudean Revenue from sales of
Environmental by-products Agreement price 189,652,273 158,181,213
Provision of maintenance
Shajiao C and repair services Agreement price 30,485,136 33,858,057
Provision of maintenance
Yunhe Power and repair services Agreement price 8,368,980 8,377,100
Yunhe Power Income from transferring coal Agreement price 8,194,149 14,676,471
Zhuhai Jinwan Provision of maintenance
Electric and repair services Agreement price 2,934,438 126,904
GEGC Provision of custody services Agreement price 2,070,690 -
Provision of maintenance
Yudean New Energy and repair services Agreement price 923,603 651,395
Xinhui Power Provision of training services Agreement price 526,038 1,456,767
Zhongshan Thermal Provision of training services Agreement price 435,144 -
Provision of maintenance
Huizhou New Energy and repair services Agreement price 235,983 -
Yuelong Power Provision of training services Agreement price 32,004 -
Yuehua Power Provision of training services Agreement price 20,246 2,175,049
Zhuhai Electric Provision of training services Agreement price 14,528 -
Fengshuba Power Provision of training services Agreement price 14,528 -
Liuxihe Power Provision of training services Agreement price 14,528 -
Zhanjiang Biomass Provision of training services Agreement price 14,528 -
Changtan Power Provision of training services Agreement price 14,528 -
Yueqian Power Provision of training services Agreement price 14,528 -
Yunhe Power Provision of training services Agreement price 14,528 -
Shajiao C Provision of training services Agreement price 12,547 -
Zhuhai Jinwan
Electric Provision of training services Agreement price 12,302 -
Yudean Ship Provision of training services Agreement price 11,887 -
Xinfengjiang Power Provision of training services Agreement price 10,896 -
Changhu Power Provision of training services Agreement price 7,264 -
Nanshui Power Provision of training services Agreement price 3,632 -
Qingxi Power Provision of training services Agreement price 3,632 -
Zhuhai Jinwan Electricity income from
Electric deviation assessment Agreement price - 4,208,214
Electricity income from
Yunhe Power deviation assessment Agreement price - 3,205,702
Electricity income from
Guanghe Power deviation assessment Agreement price - 1,868,165
Electricity income from
Yuelong Power deviation assessment Agreement price - 788,661
Menghua New Provision of consulting
Energy services Agreement price - 308,871
Electricity income from
Yuehua Power deviation assessment Agreement price - 129,932
244,042,540 230,012,501
230
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(5) Related party transactions (Cont’d)
(b) Purchase of electric power
Related parties 2018 2017
Guanghe Power 127,274,483 25,568,631
Zhuhai Jinwan
Electric 121,802,871 55,868,421
Yunhe Power 38,780,195 37,018,286
Yuehua Power 26,059,755 1,318,520
Yuelong Power 11,951,043 8,427,938
325,868,347 128,201,796
The amount for purchase of electric power is determined by the difference of decrease in current
feed-in tariff and purchased quantity of electricity agreed by companies selling electric power and
power plants from related parties.
(c) Leases
The Group as the lessee:
Leasing payment Leasing payment
Type of the leased recognised in recognised in
Name of lessor assets 2018 2017
Yudean PI Housing rental 8,145,254 8,293,375
Yudean PI Billboard rental 776,478 760,686
Maoming Thermal Land rental - 1,043,884
Maoming Thermal Housing rental - 148,005
Yuehua Power Housing rental - 25,826
8,921,732 10,271,776
The Group as the lessor:
Leasing income Leasing income
Type of the leased recognised in recognised in
Name of lessee assets 2018 2017
Housing
Yudean PM rental 192,000 -
Housing
Yudean Shipping rental 39,077 -
Shajiao C Housing rental - 195,524
231,077 195,524
231
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(5) Related party transactions (Cont’d)
(d) Guarantee
The Group as the guaranteed party:
Guaranteed Whether the guarantee
Guarantor amount Starting date Maturity date has been fulfilled or not
GEGC 1,500,000,000 14/08/2013 13/08/2022 No
(e) Lending among related parties
(i) According to the 2018 Framework Agreement on Financial Services between the Company and
Yudean Finance, Yudean Finance is committed to offering the Group a credit line of less than RMB
17,000,000,000 in 2018. In 2018, the Group borrowed a total of RMB 8,688,316,390 (2016: RMB
8,468,213,230) from Yudean Finance based on actual capital requirement. The Group paid an
interest of RMB 352,108,769 (2017: RMB 297,702,035) for such borrowings (Note 8(5)(i)).
(ii) In 2018, the net amount of the Group’s deposits in Yudean Finance increased by RMB
825,817,906 (2017: a net decrease of RMB 646,703,288). Interest due from Yudean Finance
amounted to RMB 60,293,273 (2017: RMB 60,170,777). In light of the frequent deposits and
withdrawals, the Group only disclosed the amount of net change in deposits.
(iii) As disclosed in Note 4(23)(a), according to the three-party agreement signed among the Group,
Yudean Finance and Industry Fuel, the amount of the notes issued to Industry Fuel by the Group
and discounted with Yudean Finance represents the amount payable to Yudean Finance. Given
the frequent transactions, only the net change of the balance of commercial acceptance notes
discounted with Yudean Finance as at 31 December is disclosed. As at 31 December 2018, the net
amount of Yudean Finance’s discounting of acceptance notes issued by the Group to Industry Fuel
increased by RMB 423,161,107. In 2018, the discounting interest charged by Yudean Finance and
borne by the Group which was included in the discounting interest expenses in the year amounted
to RMB 13,243,370.
(iv) Based on the Framework Agreement on Financial Lease between the Company and Yudean
Leasing, Yudean Leasing is committed to offering the Group a credit line of less than RMB 500
million, which is reusable during the one-year agreement period. As at 31 December 2018, the
balance of Bohe Coal’s long-term payables of finance lease through leaseback was RMB
906,981,377 (2017: Nil), and its interest expenses recorded in construction in progress was RMB
25,860,877 (2017: Nil); the balance of Qujie Wind Power’s long-term payables of finance lease was
RMB 240,830,581 (2017: Nil), and the interest payable on the lease amounted to RMB 2,167,970
(2017: Nil) while the interest expenses recorded in construction in progress amounted to RMB
2,469,636 (2017: Nil).
232
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(5) Related party transactions (Cont’d)
(e) Lending among related parties (Cont’d)
(v) Transactions between the Company and its subsidiaries
As at 31 December 2018 and 31 December 2017, the balance of non-secured loans borrowed by
the Company from its subsidiaries was RMB 1,100,000,000, with no change in this year (2017: net
increase of RMB 800,000,000), and the annual interest rate was 3.92% (2017: 3.92%). An interest
expense of RMB 40,457,667 (2017: RMB 37,916,159) was recognised. The balance of borrowings
at the end of 2018 was RMB 1,100,000,000 (2017: RMB 1,100,000,000). The Company only
discloses the net change in loan of capital with its subsidiaries due to the frequent transaction of
funds.
In 2018, the net increase in non-secured loans provided by the Company to its subsidiaries was
RMB 240,000,000 (2017: net decrease of RMB 33,540,000) with an annual interest rate from
4.75% to 5.23% (2017: 4.75% to 4.99%). An interest income of RMB 18,545,516 (2017: RMB
17,784,373) was recognised. The balance of borrowings at the end of 2018 was RMB 641,460,000
(2017: RMB 401,460,000). The Company only discloses the net change in loan of capital with its
subsidiaries due to the frequent transaction of funds.
(f) Payment by related parties on behalf of the Group
2018 2017
Shaoguan Electric Power Plant - 613,807
(g) Allocation of common expenses
The Company’s branches Shajiao A and Shajiao C agreed to share common expenses based on
their agreed allocation percentage. In 2018, the common expenses received by the Group from
Shajiao C was RMB 4,516,707 (2017: RMB 2,642,602).
(h) Interest income
2018 2017
Interest on deposits paid by Yudean Finance 60,293,273 60,170,777
233
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(5) Related party transactions (Cont’d)
(i) Interest expenses
2018 2017
Interest on borrowings paid to Yudean
Finance 352,108,769 297,702,035
Notes discounting interest paid to Yudean
Finance 13,243,370 13,638,031
Finance lease interest paid to Yudean
Leasing 28,330,513 -
393,682,652 311,340,066
In 2018, the loans provided by Yudean Finance to the Group carry an annual interest rate from
3.92% to 4.66% (2017: from 3.92% to 4.53%).
(j) Purchas of assets from related parties
2018 2017
Shaoguan Electric Power Plant 167,735,823 -
In 2018, the Company’s subsidiary Yuejiang Power acquired certain land, buildings and power
generation equipments at RMB 167,735,823 from Shaoguan Electric Power Plant. The carrying
amount of the acquired fixed assets and land use right is RMB 25,824,023 and RMB 141,911,800
respectively.
(k) Joint investment
As at 31 December 2018, subsidiaries, joint ventures and associates jointly invested by the Group
and GEGC were listed below:
Percentage of equity attributable to GEGC
Maoming Zhenneng 30.12%
Bohe Coal 33.00%
Yudean Finance 65.00%
Industry fuel 50.00%
Shanxi Yudean Energy 60.00%
Yudean Property Self-Insurance 51.00%
Western Investment 35.00%
(l) Remuneration of key management
2018 2017
Remuneration of key management 5,411,185 3,859,328
234
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(6) Receivables from and payables to related parties
Receivables from related parties
31 December 2018 31 December 2017
Ending Provision for Ending Provision for
balance bad debts balance bad debts
Cash at bank
and on
hand Yudean Finance 4,978,118,712 - 4,152,300,806 -
Notes and
accounts
receivables Shajiao C 10,466,023 - 13,185,631 -
Yunhe Power 2,817,688 - 2,526,785 -
Yudean New
Energy 1,062,659 - 762,132 -
Huizhou New
Energy 273,740 - - -
Yuelong Power 18,000 - 15,550 -
Zhuhai Jinwan
Electric - - 4,923,611 -
Guanghe Power - - 35,177 -
14,638,110 - 21,448,886 -
Other Yudean
receivables Environmental 54,456,181 - 136,540,065 -
Yudean Finance 18,856,569 - 14,923,771
GEGC 2,070,690 - 65,767 -
Shajiao C 1,663,292 - 253,097 -
Yudean PI 1,267,802 - 1,274,519 -
Xinhui Power 549,900 -
Yudean PM 543,732 - 413,282 -
Menghua New
Energy - - 241,844 -
79,408,166 - 153,712,345 -
Advances to
suppliers Industry fuel 547,209,560 - 589,294,868 -
235
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(6) Receivables from and payables to related parties (Cont’d)
Payables to related parties (Cont’d)
31 December 2018 31 December 2017
Notes payable
and accounts
payable Industry fuel 1,449,619,847 1,531,185,052
Yudean Finance 653,161,107 230,000,000
Yudean Environmental 34,526,337 62,871,339
Huangpu Yuehua Human
Resources 286,313 566,250
Maoming Thermal - 89,461,265
Huangpu Power
Engineering - 3,335,568
Yunhe Power - 1,006,553
Zhuhai Jinwan Electric - 218,925
Yudean Technology - 68,000
Zhuhai Grand Power - 37,183
Yuelong Power - 34,071
2,137,593,604 1,918,784,206
31 December 2018 31 December 2017
Other
payables Yuehua Power 58,000,000 -
Yudean Finance 13,356,633 10,451,874
Yudean PM 7,730,098 5,300,494
Yudean Shipping 5,312,830 4,280,000
Huangpu Power Engineering 4,818,353 2,451,285
Yudean Leasing 2,167,970 -
Huangpu Yuehua Human
Resources 1,622,290 1,701,219
Yudean Environmental 1,414,106 631,264
Yudean Technology 1,130,960 1,028,740
Yudean Property
Self-Insurance 400,000 -
Shenzhen Tianxin 70,000 70,000
Shaoguan Electric Power
Plant - 11,024,853
Maoming Thermal - 7,187,525
Yudean PI - 1,360,639
96,023,240 45,487,893
236
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(6) Receivables from and payables to related parties (Cont’d)
Payables to related parties (Cont’d)
31 December 2018 31 December 2017
Short-term
borrowings Yudean Finance 5,042,000,000 5,637,000,000
Current portion of
non-current
liabilities Yudean Finance 143,919,490 191,763,707
Long-term
borrowings Yudean Finance 2,833,766,371 2,533,388,877
Long-term
payables Yudean Leasing 1,147,811,958 -
Part of information on short-term borrowings and long-term borrowings obtained from related
parties is disclosed in Notes 4(19), 4(25) and 4(27); details on notes payable discounted by
Yudean Finance is disclosed in Note 4(20)(a); details on long-term payables provided by Yudean
Leasing is disclosed in Note 4(29)(a). Except for the aforesaid borrowings, notes payable and
long-term payables, other receivables from and payables to related parties are interest-free and
unsecured current accounts that will be paid off when needed.
237
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
8 Related parties and related party transactions (Cont’d)
(7) Commitments in relation to related parties
Leases
31 December 2018 31 December 2017
- Lessee
Yudean PI 18,622,911 8,264,642
Maoming Thermal - 23,920,348
18,622,911 32,184,990
(8) Investment commitments
As at 31 December 2018, the Group did not make any investment commitments with related
parties.
9 Contingencies
(1) As at 31 December 2018, the Company provided joint guarantee for bank borrowings amounting to
RMB 98,310,000 for Yunnan Baoshan Binlangjiang Hydroelectricity Development Co Ltd., of which
the liability relief procedure is being handled.
(2) As at 31 December 2018, the Company provided joint guarantee for bank borrowings from
European Investment Bank amounting to RMB 74,798,535 for Zhanjiang Wind Power (Note
4(27)(a)(v)); and the Company provided joint guarantee for bank borrowings amounting to RMB
44,000,000 (Note 4(27)(c)) for Yuejiang Power, based on the percentage of equity owned in
Yuejiang Power.
(3) Pinghai Power failed to complete settlement with one of its engineering contractors due to the
dispute of settlement regarding construction contracts. On 22 October 2018, the contractor filed a
lawsuit in the local municipal people's court, urging Pinghai Power to make payment for the
additional construction expenses of RMB 165,978,408 arising from modification of scope of
contract and the interest of RMB 72,478,979 arising from delay in payment. On 8 January 2019,
the contractor also filed a lawsuit in the local people's court at the county level, urging Pinghai
Power to make payment for the additional construction expenses of RMB 12,080,481 arising from
modification of scope of contract and the interest of RMB 5,554,311 arising from delay in payment.
On 1 April 2019, Pinghai Power had received subpoena from the local municipal people’s court,
and the lawsuit is expected for hearing on 14 May 2019. As at the issuance date of the report,
according to the suggestion of legal adviser, since the lawsuits were still pending for hearing,
management of the Group could not estimate the litigation result, thus no construction expenses
and interest related to the lawsuits were presented in the financial statements for the year ended
31 December 2018.
238
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
10 Commitments
(1) Capital commitments
Capital expenditures contracted for by the Group but are not yet necessary to be recognised on the
balance sheet as at the balance sheet date are as follows:
31 December 2018 31 December 2017
Buildings and power generation equipment 8,351,174,768 4,974,441,491
The above capital commitments will be primarily used for the construction of new electric plants and
the purchase of new generator units.
(2) Operating lease commitments
The future minimum lease payments due under the signed irrevocable operating leases contracts
are summarised as follows:
31 December 2018 31 December 2017
Within 1 year 16,483,957 8,721,054
1 to 2 years 12,699,701 6,569,416
2 to 3 years 2,235,203 4,000,026
Over 3 years 8,375,246 30,360,476
39,794,107 49,650,972
(3) Implementation of prior commitments
(a) The Eighth Session of the Board approved the Proposal of Joint Establishment of Guangdong
Yudean Property Self-Insurance Co., Ltd. during its 9th meeting on 12 November 2015. In order to
enhance the Company’s capability of managing quantitative risks and insurance, the board agreed
to establish Guangdong Yudean Property Self-Insurance Co., Ltd. with Yudean, the controlling
shareholders, in which the Company contributed RMB147,000,000 and accounted for 49% of the
equity. The Ninth Session of the Board approved the Proposal of Increasing Capital for Guangdong
Yudean Property Self-Insurance Co., Ltd. during its 3rd meeting on 26 April 2018. In order to
further enhance Yudean Property Self-Insurance’s capability for providing insurance services and
improve risk resistance capacity, the Company agreed to increase a capital of RMB 98,000,000 for
Yudean Property Self-Insurance at an equity proportion of 49%. As at 31 December 2018, the
Company had injected RMB 98,000,000, and the accumulated injection of capital fund was RMB
245,000,000.
(b) The Ninth Session of the Board approved the Proposal of Establishment of Zhuhai Jinwan Offshore
Wind Power Co., Ltd. during its 3rd meeting on 26 April 2018. In order to accelerate the subsequent
work for Zhuhai Jinwan offshore wind power project, the Board gave permission to its wholly-owned
subsidiary Guangdong Wind Power for the establishment of Zhuhai Wind Power. Guangdong Wind
Power should be responsible for the investment, development and construction of Zhuhai Jinwan
offshore wind power project. The capital for Phase I amounts to RMB 65,000,000. As at 31
December 2018, the Company had injected capital of RMB 65,000,000 to Zhuhai Wind Power.
239
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
10 Commitments (Cont’d)
(3) Implementation of prior commitments (Cont’d)
(c) The Ninth Session of the Board approved the Proposal of Investment in Construction of Zhanjiang
Wailuo Offshore Wind Power Project (Phase I) during its 1st communication meeting on 23 March
2018. In order to actively implement the energy development plans made by the State and
Guangdong Province, greatly develop clean energy and accelerate the optimisation of electric
generator structure, the Board gave permission to its wholly-owned subsidiary Qujie Wind Power
for the construction of Zhanjiang Wailuo Offshore Wind Power Project (Phase I). The installation
capacity of the project reached at 198MW, and the total investments hit RMB 3,739,450,000. The
capital fund was recorded as RMB 747,890,000 at a proportion of 20%. Based on the progress of
project construction and capital demand, the Company would increase capital for Qujie Wind
Power if necessary. As at 31 December 2018, the Company had injected capital fund of RMB
500,000,000 to Qujie Wind Power.
(d) The Ninth Session of the Board approved the Proposal of Launching the Preliminary Work of
Zhanjiang Wailuo Offshore Wind Power Project (Phase II) during its 1st communication meeting
on 23 March 2018. In order to give full play to the regional resource information and personnel
advantages gained in the construction of Zhanjiang Wailuo Offshore Wind Power Project (Phase I)
and seize the opportunities to accelerate the offshore wind power, the Board agreed to launch the
preliminary work of Zhanjiang Wailuo Offshore Wind Power Project (Phase II) with a planned total
installation capacity of 200 MW. The Company’s wholly-owned subsidiary Qujie Wind Power
should be responsible for the detailed preliminary work. Expenses for the preliminary work were
controlled to RMB 48,000,000, which would be settled via capital increase to Qujie Wind Power by
the Company. As at 31 December 2018, the Company had injected capital fund of RMB
48,000,000 to Qujie Wind Power.
(e) The Eighth Session of the Board approved the Proposal of Establishment of Yudean Yangjiang
Offshore Wind Power Co., Ltd. during its 6th meeting on 27 April 2015. The Board gave permission
to 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 registered capital for Phase I amounted to
RMB 55,000,000, which would be settled via capital increase to Guangdong Wind Power by the
Company. In order to step up for the scale development of the Company’s new energy power
generation, improve the proportion of clean energy installation, and optimise the structure of power
source, the Board agreed on the investment in and construction for Shapa Project by Yangjiang
Wind Power with a dynamic total investment of RMB 5,963,270,000. The capital fund was
calculated as RMB 1,192,660,000 at a proportion of 20%. Deducting the preliminarily registered
capital of RMB 55,000,000, the Company still requires a capital increase of RMB 1,137,660,000.
As at 31 December 2018, the Company had injected RMB 300,000,000, and the accumulated
injection of capital fund was RMB 355,000,000.
(f) The Ninth Session of the Board approved the Proposal of Increasing Capital for Guangdong
Province Wind Power Generation Co., Ltd. during its 5th meeting on 29 August 2018. Huilai Wind
Power proposed to carry out technical transformation to Haiwan Shifeng Power Plant, for which
Guangdong Wind Power proposed to increase a capital of RMB 39,000,000. To meet the capital
requirement of technical transformation, the Board agreed to increase the capital by RMB
39,000,000 for the technical transformation project at Haiwan Shifeng Wind Plant. As at 31
December 2018, the Company had not injected capital fund to Guangdong Wind Power.
(g) The Ninth Session of the Board approved the Proposal on Involvement in Capital and Share
Increase of Shenzhen Capital Group Co., Ltd. during its 2nd communication meeting on 19
September 2018. In order to meet the requirement of SCG’s strategic development, the Company
was allowed to increase capital of RMB 213,034,000 to SCG at an equity proportion of 3.673%
under the written approval of State-owned Assets Supervision and Administration Commission of
the People's Government of Shenzhen Municipal. An amount of RMB 65,135,200 has been
injected in 2018, and the remaining RMB 147,898,800 would be injected within 2020. As at 31
December 2018, the Company had injected RMB 65,135,200.
240
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
10 Commitments (Cont’d)
(3) Implementation of prior commitments (Cont’d)
(h) The Seventh Session of the Board approved the Proposal of Investment in Phase II Thermal Power
Cogeneration Project of Huizhou LNG Electric during its 14th meeting in April 2013. According to
the proposal, the Board permits the Company to invest in Phase II Thermal Power Cogeneration
Project of Huizhou LNG Electric with the contribution ratio 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 42,670,000 and RMB 52,330,000 respectively in
September and December 2017. As at 31 December 2018, the Company had injected RMB
103,578,300, and the accumulated injection of capital fund was RMB 198,668,300.
11 Events after the balance sheet date
(1) As stated in Note 4(11)(a)(iv), the Company expected that the estimated useful life of relevant fixed
assets would be significantly affected according to the current shoutdown scheme of Shajiao A.
According to the Proposal on Adjustment for the Depreciation Periods for Fixed Assets of Shajiao A
approved by the Ninth Session of the Board during its 7th meeting on 25 January 2019, adjustments
were made to the depreciation periods of related fixed assets: 2&3# generator units would be
depreciated over their remaining useful life of one year, while the power generating equipment and
the accessory equipment for production and management of 4&5# generator units would be
depreciated over their remaining useful lives of 5 years, and the buildings would all be depreciated
over their remaining useful lives of 5 years. As at 31 December 2018, the carrying amount of
Shajiao A’s long-term assets related to the generator units under the accelerated depreciation was
RMB 668,744,890. Due to such matter, management of the Company expected that the net profit
and owners’ equity for the year ended 31 December 2019 would decrease by RMB 173,571,346.
(2) According to the resolution at the Board of Directors’ meeting dated on 11 April 2019, the Board
suggested the Group appropriating 10% and 25% of net profit, amounting to RMB 117,603,557 and
RMB 294,008,893 to the statutory surplus reserves and the discretionary surplus reserve,
respectively (2017: the Group appropriated RMB 69,654,691 of statutory surplus reserves and RMB
174,136,728 of discretionary surplus reserve). Meanwhile, the Board also suggested the Group
distributing cash dividends of RMB 315,017,039 to its shareholders at RMB 0.6 per 10 shares
(2017: the Group distributed cash dividends of RMB 420,022,719 to the shareholders at RMB 0.8
per 10 shares). The proposal is still pending for the approval of the shareholders’ meeting. The cash
dividends proposed after the balance sheet date have not been recognised as liabilities at the
balance sheet date.
12 Financial risk
The Group's activities expose it to a variety of financial risks: market risk (primarily including foreign
exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Group's overall risk
management programme focuses on the unpredictability of financial markets and seeks to minimise
potential adverse effects on the Group's financial performance.
(1) Market risk
(a) Foreign exchange risk
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 take proper
measures to mitigate the foreign exchange risk. During 2018 and 2017, the Group did not enter into
any forward exchange contracts or currency swap contracts.
241
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
12 Financial risk (Cont’d)
(1) Market risk (Cont’d)
(a) Foreign exchange risk (Cont’d)
As at 31 December 2018 and 31 December 2017, the financial assets and the financial liabilities
denominated in foreign currencies were expressed in RMB as follows:
31 December 2018
USD EUR HKD Total
Financial assets
denominated in
foreign currency -
Cash at bank and on
hand 1,304 - 11,288 12,592
Financial liabilities
denominated in
foreign currency -
Long-term borrowings 68,270,542 3,537,220 - 71,807,762
Current portion of
non-current liabilities 6,527,993 2,469,081 - 8,997,074
74,798,535 6,006,301 - 80,804,836
31 December 2017
USD EUR HKD Total
Financial assets
denominated in
foreign currency -
Cash at bank and on
hand 1,241 - 10,767 12,008
Financial liabilities
denominated in
foreign currency -
Long-term borrowings 67,525,556 5,971,857 - 73,497,413
Current portion of
non-current liabilities 10,062,668 2,454,923 - 12,517,591
77,588,224 8,426,780 - 86,015,004
As at 31 December 2018, if the RMB had strengthened/weakened by 10% against the USD while
all other variables had been held constant, the Group's net profit for the year would have been
approximately RMB 5,609,792 (31 December 2017: approximately RMB 5,819,024) higher/lower
for various financial assets and liabilities denominated in USD.
As at 31 December 2018, if the RMB had strengthened/weakened by 10% against the EUR while
all other variables had been held constant, the Group’s net profit for the year would have been
approximately RMB 450,472 (31 December 2017: RMB 632,009) higher/lower for various financial
liabilities denominated in EUR whose recording currency is RMB.
As at 31 December 2018, if the RMB had strengthened/weakened by 10% against the HKD while
all other variables had been held constant, the Group’s net profit for the year would have been
approximately RMB 847 (31 December 2017: RMB 808) lower/higher for various financial assets
denominated in HKD.
242
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
12 Financial risk (Cont’d)
(1) Market risk (Cont’d)
(b) Interest rate risk
The Group’s interest rate risk mainly arises from long-term interest bearing borrowings including
long-term borrowings, debentures payable and long-term payables. Financial liabilities issued at
floating rates expose the Group to cash flow interest rate risk. Financial liabilities issued at fixed
rates expose the Group to fair value interest rate risk. The Group determines the relative
proportions of its fixed rate and floating rate contracts depending on the prevailing market
conditions. As at 31 December 2018, the Group’s long-term interest bearing borrowings were
mainly floating rate contracts denominated in RMB amounting to RMB 20,933,523,320 (31
December 2017: RMB 21,013,983,110).
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 position. The Group determines the
proportions of its fixed rate and floating rate contracts depending on the prevailing market
conditions, and performs periodic reviews and monitors to maintain appropriate combinations of
fixed and floating rates. In 2018 and 2017, the Group did not hedge the interest rate risk with
derivative financial instruments.
As at 31 December 2018, if interest rates on the floating rate borrowings had risen/fallen by 10
basis points while all other variables had been held constant, the Group’s net profit would have
decreased/increased by approximately RMB 17,884,606 (31 December 2017: rise/fall by 10 basis
points, approximately RMB 18,043,307).
243
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
12 Financial risk (Cont’d)
(2) Credit risk
Credit risk is managed on the grouping basis. Credit risk mainly arises from cash at bank, notes
and accounts receivables, other receivables etc.
The Group expects that there is no significant credit risk associated with cash at bank since they
are deposited at Yudean Finance, state-owned banks and other medium or large size listed banks.
Management does not expect that there will be any significant losses from non-performance by
these counterparties.
In addition, the Company has policies to limit the credit exposure on notes and accounts
receivables and other receivables. The Group assesses the credit quality of and sets credit limits
on its customers by taking into account their financial position, the availability of guarantee from
third parties, their credit history and other factors such as current market conditions. The credit
history of the customers is regularly monitored by the Group. In respect of customers with a poor
credit history, the Group will use written payment reminders, or shorten or cancel credit periods, to
ensure the overall credit risk of the Group is limited to a controllable extent.
As at the balance sheet date, the Group had no significant collateral or other credit enhancements
held as a result of the debtor's mortgage.
(3) Liquidity risk
Cash flow forecasting is performed by each subsidiary of the Group and aggregated by 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 dates
below at their undiscounted contractual cash flows:
31 December 2018
Carrying
amount on
Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total balance sheet
Short-term borrowings 7,772,410,040 - - - 7,772,410,040 7,526,000,000
Notes and accounts
payables 3,137,761,522 - - - 3,137,761,522 3,137,761,522
Other payables 4,152,518,495 - - - 4,152,518,495 4,152,518,495
Other current liabilities 1,109,288,333 - - - 1,109,288,333 1,107,904,110
Long-term borrowings
and long-term
borrowings due
within one year 2,633,767,677 3,625,442,537 5,606,077,351 14,610,174,917 26,475,462,482 20,548,090,036
Debentures payable
and debentures
payable due within
one year 758,015,172 76,621,672 833,520,000 - 1,668,156,844 1,536,994,298
Long-term payables
and long-term
payables due within
one year (excluding
payables for specific
projects) 431,974,174 412,579,372 1,515,835,861 636,898,250 2,995,037,657 2,556,113,382
19,995,735,413 4,114,643,581 7,953,183,212 15,247,073,167 47,310,635,373 40,565,381,843
244
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
12 Financial risk (Cont’d)
(3) Liquidity risk (Cont’d)
31 December 2017
Carrying
amount on
Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total balance sheet
Short-term
borrowings 9,539,414,580 - - - 9,539,414,580 9,270,000,000
Notes and
accounts
payables 2,516,639,061 - - - 2,516,639,061 2,516,639,061
Other payables 4,016,769,705 - - - 4,016,769,705 4,016,769,705
Long-term
borrowings and
long-term
borrowings due
within one year 2,336,337,873 2,698,035,335 7,228,027,270 15,219,780,032 27,482,180,510 20,911,221,812
Debentures
payable and
debentures
payable due
within one year 1,234,393,699 21,700,000 743,400,000 - 1,999,493,699 1,896,103,687
Long-term
payables and
long-term
payables due
within one year
(excluding
payables for
specific projects) 406,242,457 376,429,119 752,323,464 457,267,963 1,992,263,003 1,917,516,182
20,049,797,375 3,096,164,454 8,723,750,734 15,677,047,995 47,546,760,558 40,528,250,447
The Group’s available financing credit lines under agreement with the financial institutions as at
balance sheet date are as follows:
31 December 2018 31 December 2017
Available financing credit lines under
agreement with the financing
institutions 20,635,056,100 17,931,865,295
13 Fair value estimates
The level in which fair value measurement is categorised is determined by the level of the fair value
hierarchy of the lowest level input that is significant to the entire fair value measurement:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly or indirectly.
Level 3: Unobservable inputs for the asset or liability.
245
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
13 Fair value estimates (Cont’d)
(1) Assets measured at fair value on a recurring basis
As at 31 December 2018, the assets measured at fair value on a recurring basis by the above three
levels are analysed below:
Level 1 Level 2 Level 3 Total
Available-for-sale financial
assets -
Available-for-sale equity
instruments 340,765,380 - 799,040,951 1,139,806,331
As at 31 December 2017, the assets measured at fair value on a recurring basis by the above three
levels are analysed below:
Level 1 Level 2 Level 3 Total
Available-for-sale financial
assets -
Available-for-sale equity
instruments 408,992,985 - - 408,992,985
The Group takes the date on which events causing the transfers between the levels take place as
the timing specific for recognising the transfers. There is no transfer between Level 1 and Level 2
for the current year.
The fair value of financial instruments traded in an active market is determined at the quoted market
price; and the fair value of those not traded in an active market is determined by the Group using
valuation technique. The valuation models used mainly comprise discounted cash flow model and
market comparable corporate model. The inputs of the valuation technique mainly include risk-free
interest rate, benchmark rate, exchange rate, credit spread, liquidity premium, EBITDA multiplier,
liquidity discount, etc.
(2) Assets and liabilities not measured at fair value but for which the fair value is disclosed
Financial assets and liabilities measured at amortised cost mainly include receivables,
available-for-sale financial assets, short-term borrowings, payables, long-term borrowings,
debentures payable and long-term payables.
The carrying amount of the financial assets and liabilities not measured at fair value is a reasonable
approximation of their fair value.
14 Capital management
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 ‘owners’ equity’ as shown in the consolidated balance
sheet. The Group is not subject to external mandatory capital requirements, and monitors capital on
the basis of gearing ratio.
As at 31 December 2018 and 31 December 2017, the Group’s gearing ratios were as follows:
31 December 2018 31 December 2017
Gearing ratio 57.02% 58.17%
246
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
15 Notes to the Company’s financial statements
(1) Notes and accounts receivables
31 December 2018 31 December 2017
Accounts receivable (a) 264,537,475 195,462,150
(a) Accounts receivable
31 December 2018 31 December 2017
Accounts receivable 264,564,281 195,462,150
Less: Provision for bad debts (26,806) -
264,537,475 195,462,150
(i) The ageing of the accounts receivable is analysed as follows:
31 December 2018 31 December 2017
Within 1 year 264,564,281 195,462,150
As at 31 December 2018 and 31 December 2017, the Company had no accounts receivable
overdue but unimpaired.
(ii) Accounts receivable are analysed by categories as follows:
31 December 2018 31 December 2017
Ending balance Provision for bad debts Ending balance Provision for bad debts
% of % of
total Percentage total Percentage
Amount balance Amount (%) Amount balance Amount (%)
With amounts that are
individually significant
and that the related
provision for bad debts
is provided on the
individual basis - - - - - - - -
Provision for bad debts on
the grouping basis
Low-risk grouping 261,883,617 98.99% - - 195,462,150 100.00% - -
Ageing analysis
grouping 2,680,664 1.01% (26,806) 1.00% - - - -
With amounts that are not
individually significant
but that the related
provision for bad debts
is provided on the
individual basis - - - - - - - -
100.00
264,564,281 % (26,806) 0.01% 195,462,150 100.00% - -
(iii) As at 31 December 2018, the five largest accounts receivable by debtors were summarised and
analysed as follows:
Provision for bad
Ending balance debts Percentage
Total balance of the five largest accounts
receivable 264,537,475 (26,806) 0.01%
247
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
15 Notes to the Company’s financial statements (Cont’d)
(2) Other receivables
31 December 2018 31 December 2017
Entrusted loans receivable 335,000,000 -
Supplementary medical insurance fund
receivable 22,113,731 -
Receivables from sales of by-products 6,954,775 22,394,109
Petty cash receivable 2,607,574 901,951
Interest receivable 1,121,522 1,698,504
Dividends receivable 447,956 17,536,791
Others 7,166,030 4,688,244
Less: Provision for bad debts (115,360) -
375,296,228 47,219,599
(a) The ageing of other receivables is analysed below:
31 December 2018 31 December 2017
Within 1 year 373,852,955 46,515,768
1 to 2 years 960,869 18,403
2 to 3 years - 35,176
Over 3 years 597,764 650,252
375,411,588 47,219,599
As at 31 December of 2018 and 31 December 2017, the Company were clear of significant overdue
amount of other receivables with no provision for impairment.
(b) The ageing of other receivables is analysed below:
31 December 2018 31 December 2017
Ending balance Provision for bad debts Ending balance Provision for bad debts
% of
% of total Percent total Percent
Amount balance Amount age Amount balance Amount age
With amounts that are
individually
significant and that
the related
provision for bad
debts is provided
on the individual
basis - - - - - - - -
Provision for bad
debts on the
grouping basis
Low-risk
grouping 370,766,778 98.76% - - 47,219,599 100.00% - -
Ageing analysis
grouping 4,644,810 1.24% (115,360) 2.48% - - - -
With amounts that are
not individually
significant but that
the related
provision for bad
debts is provided
on the individual
basis - - - - - - - -
375,411,588 100.00% (115,360) 0.03% 47,219,599 100.00% - -
248
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
15 Notes to the Company’s financial statements (Cont’d)
(2) Other receivables (Cont'd)
(c) As at 31 December 2018, the five largest other receivables by debtors were analysed as follows:
% of total
other Provision for
Nature Balance Ageing receivables bad debts
Entrusted loans Within 1
Bohe Coal receivable 300,000,000 year 79.91% -
Entrusted loans Within 1
Lincang Energy receivable 35,000,000 year 9.32% -
Supplementary
medical
insurance fund Within 1
Taikang Pension receivable 22,113,731 year 5.89% -
Guangdong Yudean Receivables
Environmental from sales of Within 1
Protection Co., Ltd. by-products 6,954,775 year 1.85% -
Service fee Within 1
GEGC receivable 2,070,690 year 0.55% -
366,139,196 97.52% -
(3) Long-term equity investments
31 December 2018 31 December 2017
Subsidiaries (a) 19,610,774,833 18,770,291,604
Joint ventures (b) 602,584,896 605,678,402
Associates (c) 5,763,295,357 5,132,577,336
Less: Long-term equity investments - provision
for impairment of subsidiary (a) (1,251,824,079) (1,138,134,640)
Long-term equity investments - provision
for impairment of joint venture (c) (25,010,686)
24,699,820,321 23,370,412,702
249
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[]English translation for reference only
15 Notes to the Company’s financial statements (Cont’d)
(3) Long-term equity investments (Cont’d)
(a) Subsidiaries
Movements for the current year
Ending balance Declared cash
31 December Increase in Decrease in Provision for of provision for dividends during
2017 investment investment impairment Others 31 December 2018 impairment loss the year
Zhanjiang Electric 2,185,334,400 - - - - 2,185,334,400 - 138,852,690
Yuejia Electric 176,095,071 - (176,095,071) - - - (455,584,267) -
Maoming Zhenneng 687,458,978 - - - - 687,458,978 - -
Jinghai Power 1,930,395,668 - - - - 1,930,395,668 - 136,381,289
Zhanjiang Wind
Power 242,277,000 - - - - 242,277,000 - -
Zhongyue Energy 963,000,000 - - - - 963,000,000 (187,248,115) -
Humen Electric 3,192,416 - - - - 3,192,416 (86,807,584) -
Anxin Inspection 20,000,000 - - - - 20,000,000 - 447,956
Bohe Coal 2,229,000,000 - - - - 2,229,000,000 - -
Pinghai Power 720,311,347 - - - - 720,311,347 - 189,854,558
Red Bay Power 2,220,023,386 - - - - 2,220,023,386 - 139,383,465
Huizhou Natural Gas 1,072,506,646 103,578,300 - - - 1,176,084,946 - 125,718,705
Guangqian Electric 1,353,153,223 - - - - 1,353,153,223 - 217,306,670
Yuejiang Power 745,200,000 - - - - 745,200,000 (408,494,674) -
Huadu Natural Gas 186,550,000 - - - - 186,550,000 - -
Dabu Electric 1,000,000,000 - - - - 1,000,000,000 - -
Sub-total 15,734,498,135 103,578,300 (176,095,071) - - 15,661,981,364 (1,138,134,640) 947,945,333
250
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[]English translation for reference only
15 Notes to the Company’s financial statements (Cont’d)
(3) Long-term equity investments (Cont’d)
(a) Subsidiaries (Cont'd)
Movements for the current year
Ending balance of Declared cash
Increase in Decrease in Provision for provision for dividends during
31 December 2017 investment investment impairment Others 31 December 2018 impairment loss the year
Guangdong Wind
Power 827,419,390 365,000,000 - - - 1,192,419,390 - -
Leizhou Wind Power 80,800,000 - - - - 80,800,000 - -
Qujie Wind Power 231,750,000 548,000,000 - - - 779,750,000 - -
Power Sales 230,000,000 - - - - 230,000,000 - 5,309,037
Lincang Energy 427,689,439 - - (113,689,439) - 314,000,000 (113,689,439) -
Yongan Natural Gas 90,000,000 - - - - 90,000,000 - -
Tongdao Company 10,000,000 - - - - 10,000,000 - -
Sub-total 1,897,658,829 913,000,000 - (113,689,439) - 2,696,969,390 (113,689,439) 5,309,037
Total 17,632,156,964 1,016,578,300 (176,095,071) (113,689,439) - 18,358,950,754 (1,251,824,079) 953,254,370
Relevant information of the Company’s subsidiaries is set out in Note 6.
Lincang Energy has suffered from continued operating losses. Management of the Company made provision for impairment of long-term equity investment
amounting to RMB 113,689,439 after assessing the recoverable amount of this long-term equity investment on the basis of equity shares in Lincang Energy.
Zhongyue Energy and Yuejiang Power have suffered from continued operating losses. As at 31 December 2018, management of the Company respectively
made provision for impairment of long-term equity investment amounting to RMB 187,248,115 and RMB 408,494,674 (31 December 2017: RMB
187,248,115 and RMB 408,494,674) after assessing the recoverable amounts of this long-term equity investment.
251
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[]English translation for reference only
15 Notes to the Company’s financial statements (Cont’d)
(3) Long-term equity investments (Cont’d)
(a) Subsidiaries (Cont'd)
In anticipation of the four generator units of Yuejia Electric to be shut down successively around 2016, the Company’s management has provided for an
impairment amounting to RMB 455,584,267 on the difference between the Company’s entitlement in Yuejia Electric’s equity and its investment costs in
Yuejia Electric in 2009, 2011 and 2013 after assessing the recoverable amounts of this long-term equity investment. In 2018, the Company received a
capital of RMB 187,920,000 withdrew by Yuejia Electric. The difference between the withdrawn amount and the carrying amount of long-term equity
investment, amounting to RMB 11,824,929, was recorded in investment income. After the completion of capital withdrawal, the carrying amount of the
Company’s long-term equity investment in Yuejia Electric has been adjusted to RMB 0.
The 2×1000MW Ultra Supercritical Unit Engineering Project by the Company’s holding subsidiary Humen Electric has been implemented with pre-stage
feasibility analysis, design, three supplies and one levelling and other preparations. However, influenced by national policies upon the industry, the project
has stagnated for years and signs of entire assets impairment have occurred. After the impairment test, provision for impairment loss of RMB 39,107,109
and RMB 87,911,775 has been made respectively in 2016 and 2017 for the project. After evaluating the recoverable amount of the long-term equity
investment, the Company’s management made the provision for impairment of Humen Electric amounting to RMB 86,807,584 according to the Company’s
equity proportion. As at 31 December 2018, the balance of provision for impairment of long-term investments of Humen Electric was RMB 86,807,584 (31
December 2017: RMB 86,807,584).
(b) Joint ventures
Movements for the current year
Share of net Provision
Increase Decrease profit/(loss) Share of other Other Cash dividends for Ending balance
31 December in in under equity comprehensive changes in or profits impairment 31 December of provision for
2017 investment investment method income equity declared loss Others 2018 impairment loss
Industry fuel 605,678,402 - - 72,400,480 - - (75,493,986) - - 602,584,896 -
252
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[]English translation for reference only
15 Notes to the Company’s financial statements (Cont’d)
(3) Long-term equity investments (Cont’d)
(c) Associates
Movements for the current year
Transfer from Ending
Transfer from Share of net Cash provision for balance of
available-for- profit/(loss) Share of other Other dividends or Provision impairment of provision for
31 December Increase in sale financial under equity comprehensive changes in profits for available-for-sale 31 December impairment
2017 investment assets method income equity declared impairment financial assets 2018 loss
Shanxi Yudean Energy 1,216,441,246 - - 227,748,560 - - (4,000,000) - - 1,440,189,806 -
Yudean Finance 700,701,205 - - 85,475,612 - - (57,221,066) - - 728,955,751 -
Taishan Electric 1,961,475,609 - - 129,315,387 - - (121,582,000) - - 1,969,208,996 -
Yudean Shipping 941,757,936 - - 1,822,952 - - (8,469,538) - - 935,111,350 -
Western Investment 153,696,713 - - (18,044,364) - - - - - 135,652,349 -
Jiangkeng Hydropower 5,673,426 - - 874,094 - - (852,810) - - 5,694,710 -
Yangshan Zhongxinkeng
Electric 7,509,371 - - 1,000,767 - - (701,312) - - 7,808,826 -
Yudean Property
Self-Insurance 145,321,830 98,000,000 - 14,704,347 - - - - - 258,026,177 -
Weixin Yuntou - - 313,928,778 (31,281,386) - - - - (25,010,686) 257,636,706 (25,010,686)
5,132,577,336 98,000,000 313,928,778 411,615,969 - - (192,826,726) - (25,010,686) 5,738,284,671 (25,010,686)
253
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
15 Notes to the Company’s financial statements (Cont’d)
(4) Revenue and cost of sales
2018 2017
Revenues from main operations 2,235,681,776 2,069,432,698
Revenue from other operations 52,217,824 48,067,193
2,287,899,600 2,117,499,891
2018 2017
Cost of sales from main operations 2,132,196,128 2,014,615,189
Cost of sales from other operations 1,736,758 4,520,324
2,133,932,886 2,019,135,513
(a) Revenue and cost of sale from main operations
2018 2017
Cost of sales Cost of sales
Revenues from from main Revenues from from main
main operations operations main operations operations
Revenue from sales of
electricity 2,211,867,034 2,116,516,443 2,055,641,237 2,004,239,952
Revenue from steam 23,814,742 15,679,685 13,791,461 10,375,237
2,235,681,776 2,132,196,128 2,069,432,698 2,014,615,189
(b) Revenue and cost of sales from other operations
2018 2017
Cost of sales Cost of sales
Revenue from from other Revenue from from other
other operations operations other operations operations
Sales of materials 32,148,949 498,400 25,927,045 1,555,514
Rental income 7,189,032 274,737 4,852,933 21,077
Others 12,879,843 963,621 17,287,215 2,943,733
52,217,824 1,736,758 48,067,193 4,520,324
(5) Asset impairment losses
2018 2017
Impairment losses of long-term equity
investments 113,689,439 648,567,425
Impairment losses of fixed assets 40,395,369 -
Bad debts losses 142,166 -
Impairment losses of financial assets held for
sale - 25,010,686
154,226,974 673,578,111
254
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
15 Notes to the Company’s financial statements (Cont’d)
(6) Investment income
2018 2017
Income from long-term equity investments
under cost method 965,079,299 1,030,406,322
Gains from long-term equity investments
under equity method 484,016,449 430,233,194
Investment income from available-for-sale
financial assets 49,140,042 52,319,444
Interest income from entrusted loans 18,545,516 17,688,957
Others 363,563 359,464
1,517,144,869 1,531,007,381
There is no significant restriction for remittance of return on investment for the Group.
255
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
1 Statement of non-recurring profit or loss
2018 2017
(Gains)/Losses on disposal of non-current assets (1,572,097) 4,720,404
Government grants recognised in profit or loss for the
current period (43,530,965) (41,344,595)
Administrative penalty as well as tax and overdue fine
paid after tax inspection 12,679,505 7,274,913
Non-operating income other than aforesaid items (62,976,212) (6,502,013)
(95,399,769) (35,851,291)
Effect of income tax 25,191,469 10,104,459
Effect on minority interests after taxation 7,809,260 1,020,520
(62,399,040) (24,726,312)
Basis for preparation of statement of non-recurring profit or loss
Pursuant to the Explanatory Announcement for Information Disclosure of Companies Offering
Securities to the Public No.1 - Non-recurring Profit or Loss (2008) issued by China Securities
Regulatory Commission, non-recurring profit or loss refers to profit or loss arising from transactions
and events that are not directly related to the company’s normal course of business or that are
relevant to ordinary activities, but are extraordinary and not expected to recur frequently that would
have an influence on users of financial statements making economic decisions on the financial
performance and profitability of an enterprise.
2 Return on net assets and earnings per share
Earnings per share
Weighted average Basic earnings per Diluted earnings per
return on net asset (%) share share
2018 2017 2018 2017 2018 2017
Net profit attributable
to ordinary
shareholders of the
Company 2.02% 3.16% 0.09 0.14 0.09 0.14
256
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Net profit attributable
to ordinary
shareholders of the
Company after
deducting
non-recurring profit
or losses 1.75% 3.06% 0.08 0.14 0.08 0.14
257
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
3 Differences of accounting data under Chinese and foreign accounting policies
Differences in net profit and net assets attributable to the shareholdings of the company included
in the consolidated financial statement prepared under the International Financial Reporting
Standards (IFRSs) and the China Accounting Standards (CASs) are as follows:
Net profit Net assets
2018 2017 2018 2017
Under the CASs 474,461,997 743,180,431 24,227,302,288 23,695,190,653
Items and amounts adjusted
under the IFRSs
Difference in recognition of
goodwill on business
combination under
common control (a) - - 64,623,000 64,623,000
Difference in recognition of
land use value upon
business combination (a) (630,000) (630,000) 17,600,000 18,230,000
Impact on minority interests
(b) 54,120 54,120 4,810,219 4,756,099
Under the IFRSs 473,886,117 742,604,551 24,314,335,507 23,782,799,752
(a) Difference in recognition of goodwill on business combination under common control and
difference in recognition of land use value upon business combination
Under the requirement of new CASs, goodwill arising from business combination under common
control should not be recognised and capital reserve should be adjusted accordingly; whereas
under the requirement of IFRSs, goodwill arising from business combination under common
control should be recognised and it represents the excess on acquisition costs over the share of
identifiable fair value of net asset from the acquiree on business combination. All assets obtained
from the acquiree on business combination should be measured on their fair values. The
measurement of the two standards will continue to show a difference.
(b) Impact on minority shareholders
The above mentioned difference in recognition of land use value upon business combination
exists in the Company and some holding subsidiaries, thus causing effect against minority
interests.
258
Guangdong Electric Power Development Co., Ltd. 2018Annual Report
XII. Documents for reference
1.Financial statements bearing the seal and signature of legal representative, financial controller and the person in
charge of the accounting organ;
2.Original audit report seal with accounting firms and signature and seal from CPA;
3.All original copies of official documents and notices, which were disclosed in Securities Times, China Securities
and Hong Kong Commercial Daily (Both English and Chinese version);
4. Chinese Version of the annual report
The documents mentioned above are kept in office, and are ready for reference at any time (except public holidays,
Saturday and Sunday).
The Board of Directors of Guangdong Electric Power Development Co., Ltd.
Chairman of the Board: Wang Jin
April 12, 2019
259
