The First Quarterly Report 2019 Guangdong Electric Power Development Co., Ltd. The First Quarterly Report 2019 April 2019 1 The First Quarterly Report 2019 1 Important notes The Board of Directors,the Supervisory Committee, the directors, the supervisors, and executives of the Company guarantee that there are no significant omissions, fictitious or misleading statements carried in the Quarterly Report and we will accept individual and joint responsibilities for the truthfulness, accuracy and completeness of the Quarterly Report. All of the directors presented the board meeting at which this Quarterly Report was examined. Mr. Wang Jin, Person in charge of the Company, Mr.Liu Wei , Person in charge of accounting works, Mr.Meng Fei ,CFO as well as person in charge of accounting institution represent and warrant the financial and accounting report in the first quarterly report is true and complete. 2 The First Quarterly Report 2019 II. Basic information about the company I. Main financial data and indices Indicate by tick mark whether the Company needs to retroactively restate any of its accounting data. □ Yes √ No Changes of this period over This period Same period of last year same period of last year(%) Operating revenue(Yuan) 5,589,715,802 5,812,535,688 -3.83% Net profit attributable to the shareholders 109,518,462 5,745,879 1806.03% of the listed company(Yuan) Net profit after deducting of non-recurring gain/loss attributable to the shareholders of 109,805,200 4,330,364 2435.70% listed company(Yuan) Net cash generated from /used in operating 1,805,095,658 1,540,043,756 17.21% activities(Yuan) Basic earning per share(Yuan/Share) 0.0209 0.0011 1,800 % Diluted gains per share(Yuan/Share) 0.0209 0.0011 1,800 % Weighted average return on equity 0.34% 0.02% 0.32% (%) Changes of this period-end End of this period End of last period over same period-end of last year(%) Total assets(Yuan) 72,032,603,693 73,329,662,306 -1.77% Net assets attributable to the shareholders 24,380,493,152 24,227,302,288 0.63% of the listed company(Yuan) Items and amount of non-current gains and losses √ Applicable □ Not applicable In RMB Amount (Year-beginning to Items Notes the end of the report period.) Non-current asset disposal gain/loss(including the write-off part -524,607 for which assets impairment provision is made) Govemment subsidy recognized in current gain and loss(excluding those closely related to the Company’s business 926,644 and granted under the state’s policies) Other non-operating income and expenditure except for the -1,496,304 aforementioned items Less: Amount of influence of income tax -275,893 Influenced amount of minor shareholders’ equity (after tax) -531,636 Total -286,738 -- 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 3 The First Quarterly Report 2019 for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as recurring gains and losses, it is necessary to explain the reason. □ Applicable√ Not applicable None of Non-recurring gain /loss items recorgnized as recurring gain /loss/items as defined by the information disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period. 4 The First Quarterly Report 2019 II. Total number of shareholders at the period-end and shareholdings of top 10 shareholders 1. About Total Common Shareholders, Total Preference Shareholders with the Voting Power Recovered and the Shares Held by Top Ten Common Shareholders In shares Total preference shareholders with Total number of common 99,561 the voting power recovered at the 0 shareholders at the period-end end of the reporting period(if any) Shares held by the top 10 shareholders Amount of Pledging or freezing Share Properties of tradable shares Shareholder name proportion Quantity shareholder with Conditional Status of Quantity % the shares held State-owned legal Guangdong Energy Group Co., Ltd. 67.39% 3,538,005,285 1,893,342,621 person State-owned legal China Securities Finance Co., Ltd. 2.84% 148,862,420 person Shenzhen Guangfa Electric Power State-owned legal 2.22% 116,693,602 Investment Co., Ltd. person Guangdong Electric Power State-owned legal 1.80% 94,367,341 Development Corporation person Domestic Natural Li Zhuo 0.60% 31,606,103 person Domestic National Social Security Fund 103 Non-State owned 0.44% 22,994,982 portfolio legal person Domestic Natural Zheng Jianxiang 0.43% 22,625,098 person Domestic Harbin Hali Industry Co., Ltd. Non-State owned 0.40% 20,942,645 legal person CHINA INT'L CAPITAL CORP Overseas Legal 0.29% 15,316,066 HONG KONG SECURITIES LTD person Domestic Harbin Daoli District Charity Non-State owned 0.26% 13,722,893 Foundation legal person Shares held by the Top 10 Shareholders of Non-restricted shares Share type Shareholders’ Names Number of the non-restricted shares held Share type Quantity 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 116,693,602 RMB Common shares 116,693,602 Investment Co., Ltd. Guangdong Electric Power 94,367,341 RMB Common shares 94,367,341 Development Corporation Li Zhuo 31,606,103 RMB Common shares 31,606,103 National Social Security Fund 103 22,994,982 RMB Common shares 22,994,982 portfolio Zheng Jianxiang 22,625,098 Foreign shares placed 22,625,098 5 The First Quarterly Report 2019 in domestic exchange Harbin Hali Industry Co., Ltd. 20,942,645 RMB Common shares 20,942,645 CHINA INT'L CAPITAL CORP Foreign shares placed 15,316,066 15,316,066 HONG KONG SECURITIES LTD in domestic exchange Harbin Daoli District Charity 13,722,893 RMB Common shares 13,722,893 Foundation 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 or concerted action of the above companies have relationships; whether the other shareholders have relationships or shareholders unanimous acting was unknown. The Fifth largest shareholder Li Zhuo holds98,780 A shares of the Company through stock account with credit transaction and guarantee and holds 31,507,323 A shares through ordinary stock account, hold 31,606,103 shares of the Company's stock totally; Note to the top 10 common The Eighth largest shareholder Harbin Hali Industry Co., Ltd. holds 20,942,645 A shares of stockholders involved in margin the Company through stock account with credit transaction; financing & securities lending (If any) The Tenth largest shareholder Harbin Daoli District Charity Foundation holds72,287 A shares of the Company through stock account with credit transaction and guarantee and holds 13,650,606 A shares through ordinary stock account, hold 13,722,893 shares of the Company's stock totally. Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period. □ Yes √ No The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy –back agreement dealing in reporting period. 2.Total number of preferred shareholders and shareholding of top 10 preferred shareholders by the end of the report period □ Applicable √Not applicable 6 The First Quarterly Report 2019 III. Significant Events I. Particular about large-margin change of main accounting statement item and financial index and its reason. √ Applicable □ Not applicable In the first quarter of 2019, the electricity consumption of the whole society in Guangdong Province was 128.93 billion kilowatt hours, with a year-on-year increase of 3.8%, and the growth rate slowed down somewhat. Affected by the year-on-year growth of 33.6% in XD and 25.7% in Nuclear Power, the coal-fired power generation unit in the province witnessed a sharp year-on-year drop of nearly 22% in on-grid energy and 18.50% in on-grid energy. In the first quarter of 2019, the company completed13.721 billion kilowatt-hours in combined on-grid energy, with a year-on-year decrease of 10.10%; The average on-grid energy price in the consolidated statement was 464.80 yuan/kWh (inclusive of tax, the same below), with a year-on-year of 25.47 yuan/kWh; The cost of power generation fuel was 3400.7693 million yuan, with a year-on-year decrease of 513.6758 million yuan and 13.12%. Affected by the decline in coal prices and the decrease of the profit margin of market electricity, the company's gross profit of power generation increased year on year. In the first quarter of 2019, the net profit attributable to the shareholders of the parent company reached 109.52 million yuan, with a year-on-year increase of 1806.03%. II. The progress of significant events and influence, as well as the analysis and explanation on resolving proposal. √ Applicable □ Not applicable 1. With the approval of the seventh meeting of the Ninth Board of Directors of the Company on January 25, 2019, the Company adjusts the depreciation period of fixed assets in Shajiao Power Plant A from January 1, 2019. Net profit attributable to the parent company is expected to decrease by about 174 million yuan in 2019 and 49 million yuan annually from 2020 to 2023, and the owner's equity attributable to the parent company is expected to decrease by about 174 million yuan in 2019 and 49 million yuan annually from 2020 to 2023. 2. In order to further promote the large-scale development of the company's offshore wind power in Guangdong Province and the southeast coast, the seventh meeting of the ninth Board of Directors of the Company deliberated on January 25, 2019 and agreed that the Company should invest in Zhuhai Jinwan Offshore Wind Power Project (300,000 kilowatts), with a total dynamic investment of 5643.17 million yuan, of which 1,128.634 million yuan is capital, accounting for 20% of the total dynamic investment of the project. 3. The Company's 2019 daily related party transactions are approved and implemented by the 2019 first Provisional shareholders' General meeting held on February 21, 2019. 4. During the reporting period, Mr. Zhou Xi'an, the former director of the company, ceased to hold the post of director of the company due to job changes. After the election of the first Provisional shareholders' General meeting in 2019 held on February 21, 2019, Mr. Yan Ming served as a director of the Company. 5. During the reporting period, Guangdong Yudean Group Co., Ltd., the controlling shareholder of the Company, changed its name to "Guangdong Energy Group Co., Ltd." on February 18, 2019. It does not involve changes in equity, the controlling shareholder, and nor does it affect the company's business activities. Neither the controlling 7 The First Quarterly Report 2019 shareholder nor the actual controller of the company has changed. 6. During the reporting period, the company bonds - "12 Yudean Bonds", completed the annual interest payment for 2019 on March 18, 2019. Announcement Date of disclosure Website for disclosure Announcement of Resolutions of the 7th Meeting January 26,2019 http//www.cninfo.com.cn. of the Ninth Board of Directors Announcement of the adjustment of depreciation January 26,2019 http//www.cninfo.com.cn. period of fixed assets in Shajiao A Power plant Estimates announcement of the Daily Related January 26,2019 http//www.cninfo.com.cn. Party Transactions of2019 Announcement on Change of Controlling February 18,2019 http//www.cninfo.com.cn. Shareholder Name Announcement of Resolutions of the First February 22,2019 http//www.cninfo.com.cn. provisional shareholders' general meeting of 2019 Announcement of Guangdong Electric Power Development Co., Ltd. Concerning Payment of March 12,2019 http//www.cninfo.com.cn. Corporate “12 Yudean Bonds” Interest of 2019 Progress in the implementation of share repurchase □ Applicable √ Not applicable Progress in the implementation of the reduction of the repurchased shares by means of centralized bidding □ Applicable √ Not applicable III. Commitments finished in implementation by the Company, shareholders, actual controller, acquirer, directors, supervisors, senior executives or other related parties in the reporting period and commitments unfinished in implementation at the end of the reporting period □ Applicable √Not applicable No such cases in the reporting period. IV.Prediction of Business performance for January- June 2019 Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the warning of its material change compared with the corresponding period of the last year and explanation of reason. □ Applicable √ Not applicable V. Securities investment √ Applicable □Not applicable Security Security Stock Initial Mode Book value Changes in Cumulative Purchas Sale Gain/loss Book value Account Source of category code Abbreviation: investment of balance at fair value of fair value e amount of the balance at ing the shares 8 The First Quarterly Report 2019 cost accoun the the this changes in amount in the reporting the end of items ting beginning of period equity in the this period the measur the reporting this period reporting ement period period period Domestic Fair and Shenzhen value Other 000027 15,890,628 66,150,000 15,624,000 65,883,372 81,774,000 Own-Funds foreign Energy measur assets stocks ement Domestic Fair and value Other 600642 Shenergy 235,837,988 270,997,380 41,093,865 76,253,257 312,091,245 Own-Funds foreign measur assets stocks ement Domestic Fair and value Other 831039 NEEQ 3,600,000 3,618,000 1,512,000 1,530,000 5,130,000 Own-Funds foreign measur assets stocks ement Domestic Fair Transact Yes and value ional 002952 Optoelectroni 7,038 0 4,109 7,038 11,147 Own-Funds foreign measur financial cs stocks ement assets Domestic Fair Transact Merit and value ional 300766 Interactive 6,462 0 7,163 6,462 13,625 Own-Funds foreign measur financial Network stocks ement assets 143,666,62 Total 255,342,116 -- 340,765,380 58,241,137 13,500 0 0 399,020,017 -- -- 9 Disclosure date for the notice of October 31,2018 approval by the Board (If any) Disclosure date for the notice of approval by shareholders’ Meeting (If any) VI. Investment in derivatives □ Applicable √Not applicable There is no derivative investment during the report period. VII. The registration form of acceptance of investigation, communication and interview in the report period for future reference √ Applicable □Not applicable Reception time Way of reception Types of visitors Basic index Details can be found in the Record Chart of the Investor Relation Activity disclosed on Juchao February 20,2019 Onsite investigation Organization website(www.cninfo.com.cn) on 22 February 2019. VIII. External guarantee get out of line □ Applicable √Not applicable No such cases in the reporting period. IX. Controlling shareholder and its related parties occupying non-business capital of the listed company □ Applicable √Not applicable 9 The First Quarterly Report 2019 No such cases in the reporting period. IV. Financial Statement I. Financial statement 1. Consolidated balance sheet Prepared by: Guangdong Electric Power Development Co., Ltd. March 31, 2019 In RMB Items March 31,2019 December 31,2018 Current asset: Monetary fund 4,945,898,685 5,574,382,892 Settlement provision Outgoing call loan Transactional financial assets Financial assets measured at fair value with variations accounted into current 24,772 income account Derivative financial assets Notes receivable & account receivable 2,565,480,167 3,358,331,949 Including: Notes receivable Account receivable 2,565,480,167 3,358,331,949 Prepayments 724,215,151 906,261,046 Insurance receivable Reinsurance receivable Provisions of Reinsurance contracts receivable Other account receivable 232,809,569 222,976,826 Including:Interest receivable 22,205,621 18,856,570 Dividend receivable Repurchasing of financial assets Inventories 1,923,545,977 1,481,817,270 Contract assets Assets held for sales Non-current asset due within 1 year 88,553 Other current asset 505,757,909 617,853,476 Total of current assets 10,897,820,783 12,161,623,459 Non-current assets: Loans and payment on other’s behalf disbursed Debt investment Available for sale of financial assets 1,565,806,331 10 The First Quarterly Report 2019 Other investment on bonds Expired investment in possess Long-term receivable 90,346,689 89,762,071 Long term share equity investment 6,486,651,915 6,395,134,754 Other equity instruments investment 1,702,198,436 Other non-current financial assets Property investment 10,454,314 10,810,722 Fixed assets 40,960,626,800 41,157,594,848 Construction in progress 7,743,182,239 7,740,754,343 Production physical assets Oil & gas assets Use right assets Intangible assets 1,851,918,885 1,863,588,771 Development expenses 1,598,931 Goodwill 2,449,886 2,449,886 Long-germ expenses to be amortized 21,292,158 22,089,179 Deferred income tax asset 463,491,803 448,431,684 Other non-current asset 1,800,570,854 1,871,616,258 Total of non-current assets 61,134,782,910 61,168,038,847 Total of assets 72,032,603,693 73,329,662,306 Current liabilities Short-term loans 6,596,000,000 7,526,000,000 Loan from Central Bank Borrowing funds Transactional financial liabilities Financial liabilities measured at fair value with variations accounted into current income account Derivative financial liabilities Notes payable & account payable 2,995,916,859 3,137,761,522 Advance receipts 390,631 343,894 Selling of repurchased financial assets Deposit taking and interbank deposit Entrusted trading of securities Entrusted selling of securities Employees’ wage payable 206,798,763 235,741,179 Tax payable 276,836,872 397,001,706 Other account payable 4,160,534,744 4,152,518,495 Including:Interest payable 113,293,153 59,316,076 Dividend payable 9,703,930 9,703,930 Fees and commissions payable Reinsurance fee payable 11 The First Quarterly Report 2019 Contract Liabilities Liabilities held for sales Non-current liability due within 1 year 2,106,713,038 2,779,347,654 Other current liability 1,061,680,873 1,107,904,110 Total of current liability 17,404,871,780 19,336,618,560 Non-current liabilities: Reserve fund for insurance contracts Long-term loan 19,362,245,623 18,802,292,664 Bond payable 838,534,277 838,326,742 Including:preferred stock Sustainable debt Lease liability Long-term payable 2,265,441,142 2,311,513,249 Long-term remuneration payable to staff 115,599,287 122,913,388 Expected liabilities Deferred income 132,460,704 133,043,646 Deferred income tax liability 123,759,927 100,726,841 Other non-current liabilities 116,405,569 166,405,569 Total non-current liabilities 22,954,446,529 22,475,222,099 Total of liability 40,359,318,309 41,811,840,659 Owners’ equity Share capital 5,250,283,986 5,250,283,986 Other equity instruments Including:preferred stock Sustainable debt Capital reserves 5,102,846,886 5,102,846,886 Less:Shares in stock Other comprehensive income 593,682,531 550,010,133 Special reserve Surplus reserves 7,834,155,143 7,834,155,143 Common risk provision Retained profit 5,599,524,606 5,490,006,140 Total of owner’s equity belong to the 24,380,493,152 24,227,302,288 parent company Minority shareholders’ equity 7,292,792,232 7,290,519,359 Total of owners’ equity 31,673,285,384 31,517,821,647 Total of liabilities and owners’ equity 72,032,603,693 73,329,662,306 Legal Representative: Wang Jin Person in charge of accounting:Liu Wei Accounting Dept Leader: Meng Fei 2.Parent Company Balance Sheet In RMB 12 The First Quarterly Report 2019 Items March 31, 2019 December 31, 2018 Current asset: Monetary fund 628,153,315 385,577,463 Transactional financial assets Financial assets measured at fair value with variations accounted into current 24,772 income account Derivative financial assets Notes receivable & account receivable 150,914,726 264,537,475 Including:Notes receivable Account receivable 150,914,726 264,537,475 Prepayments 45,800,060 44,826,500 Other account receivable 74,778,266 375,296,228 Including:Interest receivable 2,406,105 1,121,522 Dividend receivable 447,956 Inventories 169,862,583 187,058,140 Contract assets Assets held for sales Non-current asset due within 1 year Other current asset 199,679 199,679 Total of current assets 1,069,733,401 1,257,495,485 Non-current assets: Debt investment Available for sale of financial assets 1,565,806,331 Other investment on bonds Expired investment in possess Long-term receivable 306,460,000 306,460,000 Long term share equity investment 24,827,909,466 24,699,820,321 Other equity instruments investment 1,702,198,436 Other non-current financial assets Property investment 7,502,142 7,661,041 Fixed assets 910,525,491 978,022,437 Construction in progress 11,971,503 9,394,075 Production physical assets Oil & gas assets Use right assets Intangible assets 86,086,080 86,681,362 Development expenses Goodwill Long-germ expenses to be amortized Deferred income tax asset Other non-current asset 356,004,000 356,004,000 13 The First Quarterly Report 2019 Total of non-current assets 28,208,657,118 28,009,849,567 Total of assets 29,278,390,519 29,267,345,052 Current liabilities Short-term loans 1,500,000,000 1,500,000,000 Transactional financial liabilities Financial liabilities measured at fair value with variations accounted into current income account Derivative financial liabilities Notes payable & account payable 137,347,906 223,827,319 Advance receipts Contract Liabilities Employees’ wage payable 47,074,276 53,346,100 Tax payable 23,030,958 48,590,195 Other account payable 113,289,250 98,528,954 Including:Interest payable 32,317,102 15,787,356 Dividend payable 9,703,930 9,703,930 Liabilities held for sales Non-current liability due within 1 year Other current liability 1,105,927,562 1,107,904,110 Total of current liability 2,926,669,952 3,032,196,678 Non-current liabilities: Long-term loan 1,500,000,000 1,500,000,000 Bond payable 838,534,277 838,326,742 Including:preferred stock Sustainable debt Lease liability Long-term payable 3,056,898 4,340,898 Long-term remuneration payable to staff 31,801,833 32,170,769 Expected liabilities Deferred income 48,362,943 48,362,943 Deferred income tax liability 114,021,905 99,461,621 Other non-current liabilities Total non-current liabilities 2,535,777,856 2,522,662,973 Total of liability 5,462,447,808 5,554,859,651 Owners’ equity Share capital 5,250,283,986 5,250,283,986 Other equity instruments Including:preferred stock Sustainable debt Capital reserves 5,605,794,601 5,605,794,601 Less:Shares in stock 14 The First Quarterly Report 2019 Other comprehensive income 593,682,531 550,010,133 Special reserve Surplus reserves 7,834,155,143 7,834,155,143 Retained profit 4,532,026,450 4,472,241,538 Total of owners’ equity 23,815,942,711 23,712,485,401 Total of liabilities and owners’ equity 29,278,390,519 29,267,345,052 3.Consolidated Income statement In RMB Items Report period Same period of the previous year I. Income from the key business 5,589,715,802 5,812,535,688 Including:Business income 5,589,715,802 5,812,535,688 Interest income Insurance fee earned Fee and commission received II. Total business cost 5,448,292,472 5,861,825,692 Including:Business cost 4,937,475,435 5,380,318,561 Interest expense Fee and commission paid Insurance discharge payment Net claim amount paid Net amount of withdrawal of insurance contract reserve Insurance policy dividend paid Reinsurance expenses Business tax and surcharge 41,001,643 34,361,198 Sales expense 6,295,103 4,817,203 Administrative expense 132,305,459 133,858,509 R & D costs 77,830 525,312 Financial expenses 331,137,001 307,944,909 Including:Interest expense 345,801,584 320,957,717 Interest income 16,268,357 14,820,083 Asset impairment loss Credit impairment loss Add:Other income 36,893,397 2,894,673 Investment gain(“-”for loss) 91,517,161 116,815,302 Including: investment gains from affiliates 91,517,161 116,815,302 Gains from currency exchange Net exposure hedging income Changing income of fair value 8,454 Income on disposal of assets 30,809 15 The First Quarterly Report 2019 III. Operational profit(“-”for loss) 269,842,342 70,450,780 Add :Non-operational income 987,834 3,679,083 Less: Non-operating expense 2,688,294 1,189,871 IV. Total profit(“-”for loss) 268,141,882 72,939,992 Less:Income tax expenses 75,526,858 9,063,824 V. Net profit 192,615,024 63,876,168 (I) Classification by business continuity 1.Net continuing operating profit 192,615,024 63,876,168 2.Termination of operating net profit (II) Classification by ownership Net profit attributable to the owners of parent 109,518,462 5,745,879 company Minority shareholders’ equity 83,096,562 58,130,289 VI. Net after-tax of other comprehensive income 43,672,399 -6,648,919 Net of profit of other comprehensive income attri 43,672,399 -6,648,919 butable to owners of the parent company. (I)Other comprehensive income items that will not be reclassified into gains/losses in the 43,672,399 subsequent accounting period 1.Re-measurement of defined benefit plans of ch anges in net debt or net assets 2.Other comprehensive income under the equity method investee can not be reclassified into profi t or loss. 3. Changes in the fair value of investments in 43,672,399 other equity instruments 4. Changes in the fair value of the company’s credit risks 5.Other (II) Other comprehensive income that will be reclassi -6,648,919 fied into profit or loss. 1.Other comprehensive income under the equity method investee can be reclassified into profit or loss. 2. Changes in the fair value of investments in other debt obligations 3.Gains and losses from changes in fair value ava -6,648,919 ilable for sale financial assets 4. Other comprehensive income arising from the reclassification of financial assets 5.Held-to-maturity investments reclassified to ga ins and losses of available for sale financial asset s 16 The First Quarterly Report 2019 6. Allowance for credit impairments in investments in other debt obligations 7. Reserve for cash flow hedges 8. Translation differences in currency financial stat ements 9.Other Net of profit of other comprehensive income attri butable to Minority shareholders’ equity VII. Total comprehensive income 236,287,423 57,227,249 Total comprehensive income attributable to the 234,920,763 -903,040 owner of the parent company Total comprehensive income attributable 1,366,660 58,130,289 minority shareholders VIII. Earnings per share (I)Basic earnings per share 0.0209 0.0011 (II)Diluted earnings per share 0.0209 0.0011 The current business combination under common control, the net profits of the combined party before achieved ne t profit of RMB 0.00, last period the combined party realized RMB0.00. Legal Representative: Wang Jin Person in charge of accounting:Liu Wei Accounting Dept Leader: Meng Fei 4. Income statement of the Parent Company In RMB Items Report period Same period of the previous year I. Revenue 393,185,298 465,311,491 Including:Business cost 424,777,175 449,858,137 Business tax and surcharge 2,653,793 1,821,322 Sales expense 350,336 437,911 Administrative expense 16,792,181 18,828,427 R & D costs Financial expenses 50,152,227 47,457,181 Including:Interest expenses 50,952,925 48,844,389 Interest income 1,394,554 1,865,511 Asset impairment loss Credit impairment loss Add:Other income Investment gain(“-”for loss) 161,309,228 195,076,685 Including: investment gains from 89,089,146 114,290,630 affiliates Net exposure hedging income Changing income of fair value 8,454 Income on disposal of assets -32,933 17 The First Quarterly Report 2019 II. Operational profit(“-”for loss) 59,777,267 141,952,265 Add :Non-operational income 7,642 27,610 Less:Non -operational expenses 592,734 III. Total profit(“-”for loss) 59,784,909 141,387,141 Less:Income tax expenses -12,227,011 IV. Net profit 59,784,909 153,614,152 1.Net continuing operating profit 59,784,909 153,614,152 2.Termination of operating net profit V. Net after-tax of other comprehensive 43,672,399 -6,648,919 income (I)Other comprehensive income items that will not be reclassified into 43,672,399 gains/losses in the subsequent accounting period 1.Re-measurement of defined benefit pl ans of changes in net debt or net assets 2.Other comprehensive income under th e equity method investee can not be recl assified into profit or loss. 3. Changes in the fair value of 43,672,399 investments in other equity instruments 4. Changes in the fair value of the company’s credit risks 5.Other (II) Other comprehensive income that will b -6,648,919 e reclassified into profit or loss. 1.Other comprehensive income under th e equity method investee can be reclassi fied into profit or loss. 2. Changes in the fair value of investments in other debt obligations 3. Gains and losses from changes in fair v -6,648,919 alue available for sale financial assets 4. Other comprehensive income arising from the reclassification of financial assets 5.Held-to-maturity investments reclassif ied to gains and losses of available for s ale financial assets 6. Allowance for credit impairments in investments in other debt obligations 7. Reserve for cash flow hedges 8. Translation differences in currency fina ncial statements 9.Other 18 The First Quarterly Report 2019 VI. Total comprehensive income 103,457,308 146,965,233 VII. Earnings per share (I)Basic earnings per share (II)Diluted earnings per share 5. Consolidated Cash flow statement In RMB Items Report period Same period of the previous year I. Cash flows from operating activities Cash received from sales of goods or 7,198,521,146 6,909,344,782 rending of services Net increase of customer deposits and capital kept for brother company Net increase of loans from central bank Net increase of inter-bank loans from other financial bodies Cash received against original insurance contract Net cash received from reinsurance business Net increase of client deposit and investment Net increase of amount from disposal financial assets that measured by fair value and with variation reckoned into current gains/losses Cash received from interest, commission charge and commission Net increase of inter-bank fund received Net increase of repurchasing business Net cash received by agent in securities trading Tax returned 4,664,390 4,180,540 Other cash received from business 433,730,029 102,634,309 operation Sub-total of cash inflow 7,636,915,565 7,016,159,631 Cash paid for purchasing of 4,805,190,930 4,669,079,682 merchandise and services Net increase of client trade and advance Net increase of savings in central bank and brother company Cash paid for original contract claim Net increase in financial assets held for trading purposes 19 The First Quarterly Report 2019 Net increase for Outgoing call loan Cash paid for interest, processing fee and commission Cash paid for policy dividend Cash paid to staffs or paid for staffs 413,894,277 376,566,617 Taxes paid 460,397,105 309,033,731 Other cash paid for business activities 152,337,595 121,435,845 Sub-total of cash outflow from 5,831,819,907 5,476,115,875 business activities Net cash generated from /used in 1,805,095,658 1,540,043,756 operating activities II. Cash flow generated by investing Cash received from investment retrieving Cash received as investment gains 121,345 Net cash retrieved from disposal of fixed assets, intangible assets, and 592,258 10,100 other long-term assets Net cash received from disposal of subsidiaries or other operational units Other investment-related cash received Sub-total of cash inflow due to 713,603 10,100 investment activities Cash paid for construction of fixed assets, intangible assets and other 745,025,118 657,061,177 long-term assets Cash paid as investment 78,692,039 Net increase of loan against pledge Net cash received from subsidiaries and other operational units Other cash paid for investment activities Sub-total of cash outflow due to 823,717,157 657,061,177 investment activities Net cash flow generated by investment -823,003,554 -657,051,077 III.Cash flow generated by financing Cash received as investment 4,000,000 Including: Cash received as investment 4,000,000 from minor shareholders Cash received as loans 2,526,712,472 2,446,395,253 Cash received from bond placing Other financing –related cash received Sub-total of cash inflow from financing 2,526,712,472 2,450,395,253 activities Cash to repay debts 3,704,558,354 3,279,948,065 Cash paid as dividend, profit, or 432,017,527 462,961,076 20 The First Quarterly Report 2019 interests Including: Dividend and profit paid by subsidiaries to minor shareholders Other cash paid for financing activities 712,667 137,119,426 Sub-total of cash outflow due to 4,137,288,548 3,880,028,567 financing activities Net cash flow generated by financing -1,610,576,076 -1,429,633,314 IV. Influence of exchange rate alternation on cash and cash -237 -446 equivalents V.Net increase of cash and cash -628,484,209 -546,641,081 equivalents Add: balance of cash and cash 5,570,382,893 4,996,580,490 equivalents at the beginning of term VI ..Balance of cash and cash 4,941,898,684 4,449,939,409 equivalents at the end of term 6. Cash Flow Statement of the Parent Company In RMB Items Amount in this period Amount in last period I.Cash flows from operating activities Cash received from sales of goods or 560,862,026 543,833,558 rending of services Tax returned Other cash received from business 9,331,847 16,238,994 operation Sub-total of cash inflow 570,193,873 560,072,552 Cash paid for purchasing of 430,841,917 557,730,970 merchandise and services Cash paid to staffs or paid for staffs 73,493,740 72,942,857 Taxes paid 26,279,908 17,395,705 Other cash paid for business activities 7,758,990 21,649,266 Sub-total of cash outflow from 538,374,555 669,718,798 business activities Net cash generated from /used in 31,819,318 -109,646,246 operating activities II. Cash flow generated by investing Cash received from investment 300,000,000 187,920,000 retrieving Cash received as investment gains 71,804,024 85,567,058 Net cash retrieved from disposal of fixed assets, intangible assets, and 589,130 10,100 other long-term assets Net cash received from disposal of subsidiaries or other operational units 21 The First Quarterly Report 2019 Other investment-related cash received Sub-total of cash inflow due to 372,393,154 273,497,158 investment activities Cash paid for construction of fixed assets, intangible assets and other 7,473,223 29,854,267 long-term assets Cash paid as investment 117,379,238 Net cash received from subsidiaries and other operational units Other cash paid for investment activities Sub-total of cash outflow due to 124,852,461 29,854,267 investment activities Net cash flow generated by investment 247,540,693 243,642,891 III. Cash flow generated by financing Cash received as investment Cash received as loans 899,700,000 1,930,000,000 Cash received from bond placing Other financing –related ash received Sub-total of cash inflow from 899,700,000 1,930,000,000 financing activities Cash to repay debts 900,000,000 2,159,693,500 Cash paid as dividend, profit, or 36,399,727 90,010,272 interests Other cash paid for financing activities 84,195 310,954 Sub-total of cash outflow due to 936,483,922 2,250,014,726 financing activities Net cash flow generated by financing -36,783,922 -320,014,726 IV. Influence of exchange rate alternation on cash and cash -237 -446 equivalents V.Net increase of cash and cash 242,575,852 -186,018,527 equivalents Add: balance of cash and cash 385,577,464 429,724,538 equivalents at the beginning of term VI ..Balance of cash and cash 628,153,316 243,706,011 equivalents at the end of term II Adjustments to the Financial Statements 1. Adjustments to the Financial Statements at the Beginning of the First Execution Year of any New Standards Governing Financial Instruments, Revenue or Leases √ Applicable □ Not applicable 22 The First Quarterly Report 2019 Consolidated balance sheet In RMB Items December 31, 2018 January 1, 2019 Adjustment Current asset: Monetary fund 5,574,382,892 5,574,382,892 Notes receivable & account 3,358,331,949 3,358,331,949 receivable Account receivable 3,358,331,949 3,358,331,949 Prepayments 906,261,046 906,261,046 Other account receivable 222,976,826 222,976,826 Including:Interest receivable 18,856,570 18,856,570 Inventories 1,481,817,270 1,481,817,270 Other current assets 617,853,476 617,853,476 Total of current assets 12,161,623,459 12,161,623,459 Non-current assets: Available-for-sale financial 1,565,806,331 Not applicable -1,565,806,331 assets Long-term receivable 89,762,071 89,762,071 Long term share equity 6,395,134,754 6,395,134,754 investment Other equity instruments Not applicable 1,565,806,331 1,565,806,331 investment Property investment 10,810,722 10,810,722 Fixed assets 41,157,594,848 41,157,594,848 Construction in progress 7,740,754,343 7,740,754,343 Intangible assets 1,863,588,771 1,863,588,771 Goodwill 2,449,886 2,449,886 Long-germ expenses to be 22,089,179 22,089,179 amortized Deferred tax assets 448,431,684 448,431,684 Other non-current asset 1,871,616,258 1,871,616,258 Total of non-current assets 61,168,038,847 61,168,038,847 Total of assets 73,329,662,306 73,329,662,306 Current liabilities Short-term loans 7,526,000,000 7,526,000,000 Notes payable & account 3,137,761,522 3,137,761,522 payable Advance payment 343,894 343,894 Employees’ wage payable 235,741,179 235,741,179 Tax payable 397,001,706 397,001,706 Other account payable 4,152,518,495 4,152,518,495 Including:Interest payable 59,316,076 59,316,076 23 The First Quarterly Report 2019 Dividend payable 9,703,930 9,703,930 Non-current liability due 2,779,347,654 2,779,347,654 within 1 year Other current liability 1,107,904,110 1,107,904,110 Total of current liability 19,336,618,560 19,336,618,560 Non-current liabilities: Long-term loan 18,802,292,664 18,802,292,664 Bond payable 838,326,742 838,326,742 Long-term payable 2,311,513,249 2,311,513,249 Deferred income 133,043,646 133,043,646 Deferred income tax liability 100,726,841 100,726,841 Other non-current liability 166,405,569 166,405,569 Total non-current liabilities 22,475,222,099 22,475,222,099 Total of liability 41,811,840,659 41,811,840,659 Owners’ equity Share capital 5,250,283,986 5,250,283,986 Capital reserves 5,102,846,886 5,102,846,886 Other comprehensive income 550,010,133 550,010,133 Surplus reserves 7,834,155,143 7,834,155,143 Retained profit 5,490,006,140 5,490,006,140 Total of owner’s equity belong to 24,227,302,288 24,227,302,288 the parent company Minority shareholders’ equity 7,290,519,359 7,290,519,359 Total of owners’ equity 31,517,821,647 31,517,821,647 Total of liabilities and owners’ 73,329,662,306 73,329,662,306 equity Adjustment statement According to the relevant requirements of the Ministry of Finance's new financial instruments standards, domestic listed enterprises will implement the accounting standards related to new financial instruments as of January 1, 2019, so the Company will adjust the "available-for-sale financial assets" to the "investment in other equity instruments" account at the beginning of this year. Parent Company Balance Sheet In RMB Items December 31, 2018 January 1, 2019 Adjustment Current asset: Monetary fund 385,577,463 385,577,463 Notes receivable & 264,537,475 264,537,475 account receivable Account receivable 264,537,475 264,537,475 Prepayments 44,826,500 44,826,500 Other account receivable 375,296,228 375,296,228 24 The First Quarterly Report 2019 Including:Interest 1,121,522 1,121,522 receivable Dividend receivable 447,956 447,956 Inventories 187,058,140 187,058,140 Other current assets 199,679 199,679 Total of current assets 1,257,495,485 1,257,495,485 Non-current assets: Available-for-sale 1,565,806,331 Not applicable -1,565,806,331 financial assets Long term receivable 306,460,000 306,460,000 Long term share equity 24,699,820,321 24,699,820,321 investment Other equity instruments Not applicable 1,565,806,331 1,565,806,331 investment Property investment 7,661,041 7,661,041 Fixed assets 978,022,437 978,022,437 Construction in progress 9,394,075 9,394,075 Intangible assets 86,681,362 86,681,362 Other non-current asset 356,004,000 356,004,000 Total of non-current assets 28,009,849,567 28,009,849,567 Total of assets 29,267,345,052 29,267,345,052 Current liabilities Short-term loans 1,500,000,000 1,500,000,000 Notes payable & Account 223,827,319 223,827,319 payable Employees’ wage payable 53,346,100 53,346,100 Tax payable 48,590,195 48,590,195 Other account payable 98,528,954 98,528,954 Including:Interest payable 15,787,356 15,787,356 Dividend payable 9,703,930 9,703,930 Other current liability 1,107,904,110 1,107,904,110 Total of current liability 3,032,196,678 3,032,196,678 Non-current liabilities: Long-term loan 1,500,000,000 1,500,000,000 Bond payable 838,326,742 838,326,742 Long-term payable 4,340,898 4,340,898 Deferred income 48,362,943 48,362,943 Deferred income tax 99,461,621 99,461,621 liability Total of Non-current 2,522,662,973 2,522,662,973 liabilities Total of liability 5,554,859,651 5,554,859,651 Owners’ equity Share capital 5,250,283,986 5,250,283,986 25 The First Quarterly Report 2019 Capital reserves 5,605,794,601 5,605,794,601 Other comprehensive 550,010,133 550,010,133 income Surplus reserves 7,834,155,143 7,834,155,143 Retained profit 4,472,241,538 4,472,241,538 Total of owners’ equity 23,712,485,401 23,712,485,401 Total of liabilities and 29,267,345,052 29,267,345,052 owners’ equity Adjustment statement According to the relevant requirements of the Ministry of Finance's new financial instruments standards, domestic listed enterprises will implement the accounting standards related to new financial instruments as of January 1, 2019, so the Company will adjust the "available-for-sale financial assets" to the "investment in other equity instruments" account at the beginning of this year. 2. Retrospective Restatement of Previous Comparative Data due to the First Execution of any New Standards Governing Financial Instruments or Leases □ Applicable √ Not applicable III. Auditor’ report Is the First Quarterly Report be audited? □ Yes √No The First Quarterly report is not audited. The Board of Directors of Guangdong Electric Power Development Co., Ltd. Chairman of the Board: Wang Jin April 30, 2019 26