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粤电力B:2021年年度报告(英文版)2022-04-22  

                        Guangdong Electric Power Development Co., Ltd.

             2021 Annual Report




                  April 2022
                                                            Guangdong Electric Power Development Co., Ltd. 2021 Annual 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:

  The name of director who did not                                                             The name of director who was
                                     Position of absent director           Reason
    attend the meeting in person                                                                       authorized

             Li Fangje                        Director                 Due to business                 Li Baobing

           Mao Qinghan                        Director                 Due to business                  Wang Jin

           Yin Zhongyu                 Independent 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's main business is the investment, construction and operation management of electric power
projects and new energy projects. Please refer to the section "XI. Outlook of the Company's Future Development"
in Section III Management Discussion & Analysis for possible risks and countermeasures of the Company's future
development.

The Company Will not distribute cash dividend or bonus shares, neither capitalizing of common reserves.




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                                                        Guangdong Electric Power Development Co., Ltd. 2021 Annual Report




                                          Table of Contents




I.Important Notice, Table of contents and Definitions

II. Company Profile & Financial Highlights.

III. Management Discussion & Analysis

IV. Corporate Governance

V. Environmental & Social Responsibility

VI. Important Events

VII. Change of share capital and shareholding of Principal Shareholders

VIII. Situation of the Preferred Shares

IX. Corporate Bond

X. Financial Report




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                                                           Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


                                          Documents available for inspection

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 China Securities Daily, Shanghai
Securities News, Securities Times, Securities Daily and Hong Kong Commercial Daily(overseas newspaper for
English 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).




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                                                Guangdong Electric Power Development Co., Ltd. 2021 Annual Report




                                             Definition

           Terms to be defined   Refers to                                 Definition

 Guangdong Energy Group          Refers to   Guangdong Energy Group Co., Ltd.

 Sha A Power plant               Refers to   Guangdong Electric Power Development Co., Ltd. Sha A Power plant

 Tumu Branch                     Refers to   Guangdong Electric Power Development Co., Ltd.Tumushuke Branch

 Qinghai Branch                  Refers to   Guangdong Electric Power Development Co., Ltd. Qinghai Branch

 Zhanjiang Electric Power        Refers to   Zhanjiang Electric Power Co., Ltd.

 Yuejia Company                  Refers to   Guangdong Yuejia Electric Power Co., Ltd.

 Yuejiang Company                Refers to   Guangdong Shaoguan Yuejiang Power Generation Co., Ltd.

 Zhenneng Company                Refers to   Maoming Zhenneng Thermal Power Co., Ltd.

 Jinghai Company                 Refers to   Guangdong Yudean Jinghai Power Co., Ltd.

 Humen Power Company             Refers to   Guangdong Yudean Humen Power Co., Ltd.

 Anxin Company                   Refers to   Guangdong Yudean Anxin Electric Inspection & Installation Co., Ltd

 Zhanjiang Zhongyue              Refers to   Zhanjiang Zhongyue Energy Co., Ltd.

 Bohe Company                    Refers to   Guangdong Yudean Energy Co., Ltd.

 Huadu Company                   Refers to   Guangdong Huadu Natural Gas Thermal Power Co., Ltd.

 Dapu Power Plant                Refers to   Guangdong Dapu Power Generation Co., Ltd.

 Wind Power Company              Refers to   Guangdong Wind Power Co., Ltd.

 Guangqian Company               Refers to   Shenzhen Guangqian Electric Power Co., Ltd.

 Electric Power Sales Company    Refers to   Guangdong Yudean Electric Power Sales Co., Ltd.

 Huizhou Natural Gas Company     Refers to   Guangdong Huizhou Natural Gas Power Co., Ltd.

 Red Bay Company                 Refers to   Guangdong Red Bay Power Co., Ltd.

 Pinghai Power Plant             Refers to   Guangdong Huizhou Pinghai Power Co., Ltd.

 Lincang Company                 Refers to   Lincang Yudean Energy Co., Ltd.

 Yongan Company                  Refers to   Guangdong Yudean Yongan Natural Gas Thermal Power Co., Ltd.

 Binhaiwan Energy Company        Refers to   Guangdong Yudean Binhaiwan Energy Co., Ltd.

 Dayawan Energy                  Refers to   Guangdong Yudean Dayawan Integrated Energy Co., Ltd.

 Qiming Energy                   Refers to   Guangdong Yudean Qiming Energy Co., Ltd.

 Huaguoquan Company              Refers to   Shenzhen Huaguoquan Electric Industry Service Co., Ltd.

 Dananhai Company                Refers to   Guangdong Yudean Dananhai Intelligence Energy Co., Ltd.

 Yudean Baihua                   Refers to   Guangdong Yudean Baihua Integrated Energy Co., Ltd.

 Bijie Energy                    Refers to   Guangdong Bijie New Energy Co., Ltd.

 Shaoguan Energy                 Refers to   Guangdong Shaoguan Yuedianli New Energy Co., Ltd.


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                                                     Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


 Henan Energy                         Refers to   Henan Yudean New Energy Co., Ltd.

 Sha C Company                        Refers to   Guangdong Shajiao( plant C) Power Generation Co., Ltd.

 Yuehua Power Generation              Refers to   Guangdong Yuehua Power Generation Co., Ltd.

 Yunhe Power Generation               Refers to   Guangdong Yudean Yunhe Power Generation Co., Ltd.

 Tumu Thermal Power                   Refers to   Tumushuke Thermal Power Co.,Ltd.

 Shibeishan Wind Power                Refers to   Guangdong Yudean Shibeishan Wind Energy Development Co., Ltd.

 Dianbai Wind Power Company           Refers to   Guangdong Yudean Dianbai Wind Power Co., Ltd.

 Huilai Wind Power Company            Refers to   Huilai Wind Power Generation 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.

 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.

 Pingdian Integrated Energy Company   Refers to   Huizhou Pingdian Integrated Energy Co., Ltd.

 Zhuhai Wind Power Company            Refers to   Guangdong Yudean Zhuhai Offshore Wind Power Co., Ltd.

 Zhanjiang Wind Power Company         Refers to   Guangdong Yudean Zhanjiang Wind Power Generation Co., Ltd.

 Qujie Wind Power Company             Refers to   Guangdong Yudean Qujie Wind Power Generation Co., Ltd.

 Leizhou Wind Power Company           Refers to   Guangdong Yudean Leizhou Wind Power Generation Co., Ltd.

 Tongdao Wind Power Company           Refers to   Tongdao Yuexin Wind Power Generation Co., Ltd.

 Yudean Fuel Company                  Refers to   Guangdong Power Industry Fuel Co., Ltd.

 Yudean Insurance Captive Company     Refers to   Guangdong Yudean Property Insurance Captive Co., Ltd.

 Shanxi Energy Company                Refers to   Shanxi Yudean Energy Co., Ltd.

 Yudean Shipping Company              Refers to   Guangdong Yudean Shipping Co., Ltd.

 Yudean Western Investment Company    Refers to   Guangdong Yudeann Holdings Western Investment Co., Ltd.

 Energy Group Finance Company         Refers to   Guangdong Energy Group Finance Co., Ltd.

 Energy Financial Leasing Company     Refers to   Guangdong Energy Financial Leasing 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.



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                                                  Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


 Shenzhen Energy                    Refers to   Shenzhen Energy Group Co., Ltd.

 Shenergy Company                   Refers to   Shenergy Company Limited

 Environmental Protection Company   Refers to   Guangdong Yudean Environmental Protection Co., Ltd.




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                                                         Guangdong Electric Power Development Co., Ltd. 2021 Annual Report



II. Company Profile & Financial Highlights.

1.Company Profile


 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(

 English name (If any)        GUANGDONG ELECTRIC POWER DEVELOPMENT CO.,LTD

 English abbreviation (If
                              GED
 any)

 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
                              510630
 Registered Address

 Historical change of the
 company's registered         No
 address

 Office Address               33-36/F, South Tower, Yudean Plaza, No.2   Tianhe Road East, Guangzhou,Guangdong Province

 Postal code of the office
                              510630
 address

 Internet Web Site            http://www.ged.com.cn

 E-mail                       ged@ged.com.cn


2. Contact person and contact manner

                                                      Board secretary                  Securities affairs Representative

 Name                                    Liu Wei                                   Qin Xiao

                                         35/F, South Tower, Yudean Plaza, No.2     22/F, South Tower, Yudean Plaza, No.2
 Contact address                         Tianhe Road East,                         Tianhe Road East,
                                         Guangzhou,Guangdong Province              Guangzhou,Guangdong Province

 Tel                                     (020)87570251                             020)87570251

 Fax                                     (020)85138084                             (020)85138084

 E-mail                                  liuw@ged.com.cn                           qinxiao@ged.com.cn




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                                                               Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


3. Information disclosure and placed


                                                       China Securities Daily, Shanghai Securities News, Securities Times,
Newspapers selected by the Company for information
                                                           Securities Dailyand Hong Kong Commercial Daily(overseas newspaper
disclosure
                                                           for English version) ,Juchao Website(http://www.cninfo.com.cn)

Internet website designated by CSRC for publishing
                                                       http://www.szse.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


4.Changes i n Registration


 Organization Code                           91440000617419493W

                                             On August 25,2021, The Company's main business consists of " investment,
                                             construction and operation management of power projects, production and sales of
                                             power, technical consulting and services in the power industry, leasing of terminal
                                             facilities, general cargo warehousing, loading and unloading, and transportation
                                             services. (Projects subject to approval according to law, Business activities can only be
 Changes in principal business activities
                                             carried out after being approved by the relevant departments)” is changed to “investmen
 since listing (if any)
                                             t, construction and operation management of power projects and new energy projects; pr
                                             oduction and sales of electric power; technical consulting and services in the power indu
                                             stry; leasing of terminal facilities; general cargo storage, loading and unloading ,shipme
                                             nt service. (Projects subject to approval according to law, Business activities can only
                                             be carried out after being approved by the relevant departments)" .

 Changes is the controlling shareholder in
                                             No change
 the past (is any)


5. 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
                                      Chen Junjun, Li Xiaolei
 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




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                                                              Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


6.Summary of Accounting data and Financial index

Whether it has retroactive adjustment or re-statement on previous accounting data
√Yes □ No
Retroactive adjustment or restatement of causes
 Merger of enterprises under the same control

                                                                                           Changes of
                                                                                           this period
                                                                   2020                    over same                     2019
                                         2021                                               period of
                                                                                          Last year(%)

                                                                              After           After
                                                      Before adjustment                                    Before adjustment After adjustment
                                                                          adjustment       adjustment

 Operating income(Yuan)            44,167,223,887      28,329,065,391 33,602,895,865          31.44%       29,360,155,150     35,832,090,286

 Net profit attributable to the
 shareholders of the listed          -3,147,754,234       1,746,280,132 2,053,909,956         -253.26%        1,146,767,033      1,038,130,240
 company(Yuan)

 Net profit after deducting of
 non-recurring gain/loss
                                     -2,905,313,714       1,530,448,193 1,551,209,648         -287.29%        1,069,396,196      1,150,486,132
 attributable to the shareholders
 of listed company(Yuan)

 Cash flow generated by
                                        -40,304,011       6,280,781,169 7,754,798,636         -100.52%         8,272,683,112     9,475,552,022
 business operation, net(Yuan)

 Basic earning per
                                            -0.5995              0.3326          0.3912       -253.25%               0.2184            0.1977
 share(Yuan/Share)

 Diluted gains per
                                            -0.5995              0.3326          0.3912       -253.25%               0.2184            0.1977
 share(Yuan/Share)

 Weighted average ROE(%)                   -10.72%                6.54%          6.95%         -17.67%                4.77%             3.11%

                                                                                            Changed
                                                                End of 2020               over last year              End of 2019
                                     End of 2021                                             (%)

                                                                              After           After
                                                      Before adjustment                                    Before adjustment After adjustment
                                                                          adjustment       adjustment

 Gross assets(Yuan)               114,271,451,479      85,970,818,168 99,479,773,162          14.87%       75,472,027,123     88,690,163,330

 Net assets attributable to
 shareholders of the listed          23,185,079,805      27,369,995,422 31,820,079,621         -27.14%       26,178,241,077     33,392,176,103
 company(Yuan)

The lower of the company’s net profit before and after the deduction of non-recurring gains and losses in the last
three fiscal years is negative, and the auditor's report of the previous year shows that the Company’s going
concern ability is uncertain.

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                                                      Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


□ Yes √No
The lower of the net profit before and after the deduction of the non-recurring gains and losses is negative.
√ Yes □ No
               Items                     2021                         2020                           Remark

                                                                                         Including electricity sales
                                                                                         income, steam income, labor
                                                                                         service income and a few
 Operating income (Yuan)                   44,167,223,887               33,602,895,865
                                                                                         other business income
                                                                                         unrelated to the main
                                                                                         business.

                                                                                         It mainly refers to the income
                                                                                         from the beginning of the
                                                                                         period to the combination date
 Operating income deduction                                                              of the subsidiaries of the
                                            4,784,789,933                5,817,935,297
 amount (Yuan)                                                                           business combination under
                                                                                         the same control and other
                                                                                         business income unrelated to
                                                                                         the main business

                                                                                         Including electricity sales
 Amount of operating income
                                           39,382,433,954               27,784,960,568   income, steam income and
 after deduction (Yuan)
                                                                                         labor service income


7.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
During the reporting period, there is no difference between net profit and net assets in the financial reports
disclosed in accordance with international accounting standards and those disclosed in accordance with Chinese
accounting standards.

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


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                                                                Guangdong Electric Power Development Co., Ltd. 2021 Annual Report




8.Main Financial Index by Quarters

                                                                                                                              In RMB

                                                             First quarter    Second quarter      Third quarter       Fourth quarter

 Operating income                                            8,846,102,827    11,180,158,938      12,320,101,729      11,820,860,393

 Net profit attributable to the shareholders of the            -45,317,768       202,270,769        -256,348,664      -3,048,358,571
 listed company

 Net profit after deducting of non-recurring gain/loss         -75,788,974       187,572,768        -707,662,412      -2,314,970,584
 attributable to the shareholders of listed company

 Net Cash flow generated by business operation                 697,961,911     2,715,988,228         763,374,449      -4,217,628,600

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
In November this year, under the same control, the Company merged Shajiao C Company, Yuehua Power
Generation Company and Yunhe Company, and restated the figures of the previous year and this year. As a result,
the above financial indicators are different from those in the disclosed quarterly reports and semi-annual reports.

9.Items and amount of non-current gains and losses

√Applicable □Not applicable
                                                                                                                              In RMB

                                               Amount           Amount        Amount
                   Items                                                                                      Notes
                                                (2021)           (2020)        (2019)

                                                                                            This year, Shajiao C Company sold
 Non-current asset disposal                                                                 Mingyuan assets, Bohe Coal and Electricity
 gain/loss(including the write-off part for                                                 stripped the wharf assets, and Yunhe
                                                82,842,178     340,976,361     20,503,424
 which assets impairment provision is                                                       Company sold Yundian Energy, which
 made)                                                                                      along with Yuejia company Liquidation all
                                                                                            increased the project income.

 Government subsidy recognized in
 current gain and loss(excluding those
                                                                                            It refers to various government funds
 closely related to the Company’s              37,606,578      30,457,198     33,284,069
                                                                                            received by branches and subsidies.
 business and granted under the state’s
 policies)

 Gain equal to the amount by which
 investment costs for the Company to
 acquire subsidiaries, associates and joint
                                                                  9,784,791
 ventures are lower than the Company’s
 enjoyable fair value of identifiable net
 assets of investees when making


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                                                               Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


 investments

 Net gain and loss of the subsidiary
                                                                                            This year, three newly controlled
 under the common control and
                                                                                            companies, Yunhe, Yuehua and Shajiao C,
 produced from enterprise consolidation       -658,714,842    559,324,501    -92,777,150
                                                                                            increased their net losses from the
 from the beginning of the period to the
                                                                                            beginning to the merger date
 consolidation date

 Switch back of provision for
 depreciation of account receivable
                                                                              48,647,647
 which was singly taken depreciation
 test.

 According to tax, accounting and other
 laws, regulations, the requirements of
 the current Gain/loss for a one-time                                          -4,449,214
 adjustment of the impact of the current
 Gain/loss;

                                                                                            It is mainly the loss of asset retirement,
 Net amount of non-operating income
                                               16,979,172      36,323,955       5,674,806 claim settlement and compensation income
 and expense except the aforesaid items
                                                                                            of branches and subsidiaries

 Less :Influenced amount of income tax                          5,001,523

    Income tax impact                          55,885,342     106,635,578     26,385,663

    Influenced amount of minor
                                              -252,056,993    372,532,443     96,853,811
 shareholders’ equity (after tax)

 Total                                        -242,440,520    502,700,308   -112,355,892                          --

Details of other profit and loss items that meet the non-recurring profit and loss definition
□ Applicable√ Not applicable
None
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
√ Applicable □ Not applicable
 Items                               Amount involved(RMB)      Reason

                                                               According to the VAT refund policy, the company and its controlled subsi
 Value-added tax will be
                                                 28,991,960    diaries are in compliance with relevant regulations and continue to enjoy
 refunded immediately
                                                               the VAT refund immediately.

                                                               Comply with national policies and regulations, and continue to occur.
 Carbon emission quota used
                                                               Meanwhile, this year, the Company's coal-fired on-grid electricity
 to fulfill the emission                       -135,013,051
                                                               consumption increased greatly year on year, and the free carbon emission
 reduction obligation
                                                               quota was insufficient, so it was necessary to purchase additional quota.


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                                                      Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


                                     III. Management Discussion & Analysis

I. Industry information of the Company during the reporting period

In 2021, due to the complicated and unstable global pandemic, China's economic development faced triple pressures
of demand contraction, supply shock and expected weakening, which had not been witnessed for many years, the
external environment became more complicated, severe and uncertain, the energy and power industry was faced
with the arduous test of balancing multiple objectives of ensuring supply, adjusting structure and stabilizing growth,
and company`s business development faced severe and complicated risk challenges.

In terms of power demand, according to the statistics of the national power industry in 2021 released by the National
Energy Administration, the electricity consumption of the whole society in China in 2021 was 8.31 trillion kWh,
with a year-on-year increase of 10.3%. The substantial increase in electricity consumption was mainly influenced by
factors such as the sustained recovery and development of the domestic economy, the low base in the same period of
the previous period, and the rapid growth of foreign trade exports. Including, the electricity consumption of the
primary industry was 102.3 billion kWh, with a year-on-year increase of 16.4%; The electricity consumption of the
secondary industry was 5.61 trillion kWh, with a year-on-year increase of 9.1%; The electricity consumption of the
tertiary industry was 1.42 trillion kWh, with a year-on-year increase of 17.8%; The domestic electricity
consumption of urban and rural residents was 1.17 trillion kWh, with a year-on-year increase of 7.3%.

In terms of power supply side, with the in-depth promotion of emission peak and carbon neutrality, China has
comprehensively promoted the large-scale and high-quality development of wind power and solar power generation,
accelerated the growth rate of new energy installed capacity, and continuously increased the proportion of total
installed capacity of power generation in China. By the end of 2021, the installed capacity of wind power in China
was 328 million kilowatts, with a year-on-year increase of 16.6%; The installed capacity of solar power generation
was 306 million kilowatts, with a year-on-year increase of 20.9%; The installed capacity of coal was 1.11 billion
kilowatts, with a year-on-year increase of 2.8%. In addition, the wind power generated 652.6 billion kWh, with a
year-on-year increase of 40.5%; The solar energy generated 325.9 billion kWh, with a year-on-year increase of
25.1%; The coal-fired power generation was 5.03 trillion kWh, with a year-on-year increase of 8.6%, accounting for
60.0% of full power generation, with a year-on-year decrease of 0.7%. Considering the installed capacity and power
generation, coal-fired power is still the most important power supply in China at present, and it is also the basic
power supply to ensure the safe and stable power supply in China.

In 2021, due to safety inspection, environmental protection supervision, limited quota of imported coal and other
factors, the supply and demand of coal were out of balance, and the coal supply continued to be tight, which led to
the price of thermal coal hitting record highs. Thermal power enterprises as a whole were affected by the rising fuel
cost, and their operating performance continued to be under pressure. Relevant national authorities have
successively issued policies to ease the operating pressure of power generation enterprises, ensure the coal supply
and stabilize the coal price. On October 11, 2021, the National Development and Reform Commission issued the
Notice on Further Deepening the Marketization Reform of On-grid Electricity Price of Coal-fired Power Generation,
according to which the floating range of coal-fired power generation market transaction price changed from no more
than 10% by increase and 15% by decrease to no more than 20% by both increase and decrease, and the trading price
of high-efficiency enterprise market was not subject to the restriction of 20%. In addition, the National
Development and Reform Commission has issued a series of policies, such as the Notice on Further Improving the


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                                                      Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


Price Formation Mechanism of Coal Market, to strengthen the coal supply guarantee and reasonable price
intervention, and to improve the price transmission mechanism of electricity market.

II.Main Business the Company is Engaged in During the Report Period

The Company shall comply with the disclosure requirements of power-related industries in the Guideline No.3 for
Self-regulation of Listed Companies of Shenzhen Stock Exchange-Industry Information Disclosure.
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 the end of the reporting period,
the company has controllable installed capacity of 29.9426 million kilowatts, including holding installed capacity
of 28.2292 million kilowatts and equity participation installed capacity of 1.7134 million kilowatts. Including: The
holding installed capacity for coal-fired power generation was 20.55 million kilowatts, accounting for 72.8%; the
holding installed capacity for gas and electricity of 5.472 million kilowatts, accounting for 19.4%;and renewable
energy generation like wind power and hydropower of 2.2072 million kilowatts, accounting for 7.8%。.In addition,
the company is entrusted with managing the installed capacity of 8.854 million kilowatts . The above controllable
installed capacity and entrusted management installed capacity totaled 38,796,600 kilowatts.

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 104.951 billion kilowatt-hours
,an increase of 32.49% YOY; average price stated in the consolidated statements is 465.70 Yuan/ thousands
kilowatt-hours(tax included ,the same below ), an increase of 18.43 yuan/ thousands kilowatt-hours or an increast
of 4.12% YOY;the total operating income was RMB 44,167.22million, an increase of RMB 10,564.33 million or an
increase of 31.44% 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 38,663.70 million yuan, which accounted for 82.59% of the main
business costs; Affected by the sharp increase of power generation and coal price, the fuel cost increased by RMB
19,370,110 year on year. an increase of 100.4% .

During the reporting period, due to the stable and positive economic growth and other factors, the demand for social
electricity in Guangdong Province increased at a higher speed than expected, and the power supply continued to be
tight. The Company made every effort to ensure the safe production and stable supply of electricity, and the on-grid
electricity increased by 32.49% year on year. However, due to the high price of coal and gas, the on-grid electricity
price seriously dropped away from the power generation cost, and the power plant suffers a large loss. The gross

- 14 -
                                                      Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


profit margin of the Company's main business and the net profit attributable to its parent company decreased year on
year, and the net profit attributable to its parent company was RMB -3,147.75 million, with a year-on-year decrease
of 253.26%.

Main Production and Operation Information
                      Items                       This reporting period                 Same period last year

 Total installed capacity ('0,000 kW)                                 2,822.92                                  2604.8

 Installed capacity of units that are newly put                           218.12                                 220.4
 into production ('0,000 kW)

 Planned installed capacity of approved                                    778.8                                 706.1
 projects ('0,000 kW)

 Planned installed capacity of projects under                              684.8                                 566.1
 construction ('0,000 kW)

 Power generation ('00,000,000 kWh)                                   1,107.03                                  835.66

 On-grid electricity or electricity sales                             1,049.51                                  792.12
 ('00,000,000 kWh)

 Average on-grid price or selling price (RMB/                               0.47                                  0.45
 '00,000,000 kWh , including tax)

 Average power consumption rate of power                                  5.23%                                 5.28%
 plant (%)

 Power plant utilization hours (h)                                         4,219                                 3,332

(1)Operation Information of thermal power
                      Items                       This reporting period                 Same period last year

 Total installed capacity ('0,000 kW)                                     2602.2                                2520.2

 Installed capacity of units that are newly put                              82                                   200
 into production ('0,000 kW)

 Planned installed capacity of approved                                    664.8                                 435.5
 projects ('0,000 kW)

 Planned installed capacity of projects under                              570.8                                 435.5
 construction ('0,000 kW)

 Power generation ('00,000,000 kWh)                                   1077.46                                   810.76

 On-grid electricity or electricity sales                             1021.45                                   768.25
 ('00,000,000 kWh)

 Average on-grid price or selling price (RMB/                              0.459                                 0.442
 '00,000,000 kWh , including tax)

 Average power consumption rate of power                                    5.23                                  5.24
 plant (%)

 Power plant utilization hours (h)                                         4606                                  3679



- 15 -
                                                      Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


(2)Operation Information of wind power
                      Items                       This reporting period                 Same period last year

 Total installed capacity ('0,000 kW)                                     197.04                                60.92

 Installed capacity of units that are newly put                           136.12                                 20.4
 into production ('0,000 kW)

 Planned installed capacity of approved                                       0                                 270.6
 projects ('0,000 kW)

 Planned installed capacity of projects under                               104                                 130.6
 construction ('0,000 kW)

 Power generation ('00,000,000 kWh)                                        18.32                                12.79

 On-grid electricity or electricity sales                                  17.42                                12.27
 ('00,000,000 kWh)

 Average on-grid price or selling price (RMB/                              0.682                                0.657
 '00,000,000 kWh , including tax)

 Average power consumption rate of power                                    4.61                                 4.33
 plant (%)

 Power plant utilization hours (h)                                         2044                                 2033

(3)Operation Information of water power
                      Items                       This reporting period                 Same period last year

 Total installed capacity ('0,000 kW)                                      13.28                                13.28

 Installed capacity of units that are newly put                               0                                    0
 into production ('0,000 kW)

 Planned installed capacity of approved                                       0                                    0
 projects ('0,000 kW)

 Planned installed capacity of projects under                                 0                                    0
 construction ('0,000 kW)

 Power generation ('00,000,000 kWh)                                         3.44                                 4.80

 On-grid electricity or electricity sales                                   3.39                                 4.72
 ('00,000,000 kWh)

 Average on-grid price or selling price (RMB/                              0.210                                0.169
 '00,000,000 kWh , including tax)

 Average power consumption rate of power                                    1.44                                 1.81
 plant (%)

 Power plant utilization hours (h)                                         2589                                 3617

(4)Operation Information of Biomass business
                      Items                       This reporting period                 Same period last year

 Total installed capacity ('0,000 kW)                                        10                                   10


- 16 -
                                                      Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


 Installed capacity of units that are newly put                              0                                     0
 into production ('0,000 kW)

 Planned installed capacity of approved                                      0                                     0
 projects ('0,000 kW)

 Planned installed capacity of projects under                                0                                     0
 construction ('0,000 kW)

 Power generation ('00,000,000 kWh)                                        7.89                                  7.31

 On-grid electricity or electricity sales                                  7.25                                  6.88
 ('00,000,000 kWh)

 Average on-grid price or selling price (RMB/                             0.745                                 0.743
 '00,000,000 kWh , including tax)

 Average power consumption rate of power                                   8.11                                  5.88
 plant (%)

 Power plant utilization hours (h)                                        7890                                  7313



(5)Operation Information of photovoltaic business
                      Items                       This reporting period                 Same period last year

 Total installed capacity ('0,000 kW)                                       0.4                                   0.4

 Installed capacity of units that are newly put                              0                                     0
 into production ('0,000 kW)

 Planned installed capacity of approved                               260.428                                     30
 projects ('0,000 kW)

 Planned installed capacity of projects under                               22                                     0
 construction ('0,000 kW)

1. The total installed capacity is the holding installed capacity; 2. In 2021, under the same control, the Company
combined Yuehua Power Generation Company, Shajiao C Company and Yunhe Power Generation Company, so the
data of total installed capacity in the same period last year are restated. 3. During the reporting period, the
Company's photovoltaic power generation was only used in the factory.
Electricity sales business of the Company
√ Applicable □ Not applicable
Guangdong Yudean Electric Power Sales Co., Ltd. ("Sales Company"), a wholly-owned subsidiary of the Company,
founded in July 2015, is the first power sales company in Guangdong Province, and its power sales qualification
code is SD01. Based on the business of purchasing and selling electricity, the company focuses on improving
electricity efficiency, provides customers with services such as demand response strategy, energy saving renovation,
energy consumption strategy consultation, contracted energy management, power energy storage, etc., and carries
out comprehensive energy service projects (smart energy management, carbon asset management, energy
trusteeship, energy audit, etc.) in vertical (industry) fields, large group enterprises and large parks.
In 2021, the electricity consumption of the Power Marketing Company was 45.302 billion kWh, with a year-on-year
decrease of 8.01%, in which the electricity of the holding subsidiary of the agency company is 14.823 billion kWh,
accounting for 14.12% of the Company's on-grid electricity.
- 17 -
                                                        Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


Reasons for the significant changes in the relevant data
□ Applicable √Not applicable
Related new energy power generation business
In 2021, guided by the "3060" double-carbon strategic goal, the Company adhered to the clean, low-carbon, safe
and efficient energy development strategy, and continuously optimized the power supply structure and asset
structure. By the end of the reporting period, the Company had put into operation a total of 22 new energy power
generation projects with a holding installed capacity of 1,974,400 kilowatts; There was 4 new energy projects under
construction, with a holding installed capacity of 1.26 million kilowatts. In addition, the Company has signed
cooperation framework agreements with Tumushuke City of the third division of Xinjiang Production and
Construction Corps, Dafang County, Hezhou City, Gangcha County and other local governments and in the future, it
will make full use of the existing resource advantages of local solar energy and wind energy, and cooperate in the
development of centralized and decentralized photovoltaic power generation and wind power projects, industrial
integration, carbon neutrality, etc., which is conducive to changing resource advantages into industrial advantages
and economic advantages, promoting the development of green energy and green economy, and promoting the clean
and low-carbon transformation of the Company's energy.

1. As of December 31, 2021, the new energy power generation projects controlled by the Company that have been
put into production are as follows:

                                                      Installed capacity ( '0,000
         Project type            Project name                                         Shareholding ratio
                                                              kilowatts)


         Wind Power      Zhanjiang Xuwen Yangqian                4.95                        70%

         Wind Power       Zhanjiang Xuwen Yongshi                4.95                        70%

         Wind Power       Jieyang Huilai Shibeishan              10.0                        70%

         Wind Power       Jieyang Huilai Haiwanshi               1.4                         90%

                           Maoming Dianbai Hot                   4.95                       100%
         Wind Power
                                   Water

                             Zhanjiang Leizhou                   4.95                        94%
         Wind Power
                                 Hongxinlou

                             Zhanjiang Xuwen                     4.95                       100%
         Wind Power
                                 Shibanling

         Wind Power        Zhanjiang Xuwen Qujie                 4.95                       100%

                           Wailuo I offshore wind                19.8                       100%
         Wind Power
                                   power

                           Xuwen Wutushan Wind                   4.95                        51%
         Wind Power
                                   Power

                          Xuwen Dengjiaolou Wind                 4.95                        51%
         Wind Power
                                   Power

         Wind Power          Pingyuan Maoping                    4.8                        100%




- 18 -
                                                             Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


                              Zhuhai Jinwan offshore                  30                          85.91%
          Wind Power
                                   Wind power

                            Zhanjiang Xuwen Wailuo II                 20                           100%
          Wind Power
                               Offshore Wind Power

                             Zhanjiang Xuwen Xinliao                20.35                          100%
          Wind Power
                               offshore wind power

                             Yangjiang Shapa offshore                 30                          91.41%
          Wind Power
                                   wind power

          Wind Power             Guangxi Wuxuan                        5                           100%

          Wind Power         Hunan Xupu Taiyangshan                    5                           100%

          Wind Power        Hunan Tongdao Dagaoshan                    5                           100%

                            Decentralized Wind Power                 1.08                           65%
          Wind Power
                              in Shanwei Power Plant

          Wind Power         Nanxiong Zhuan village                  4.99                          100%

                             Photovoltaic in Zhanjiang                0.4                           51%
         Biomass Power
                                  Biomass Plant

              Total                                                 197.44


2. As of December 31, 2021, the new energy power generation projects under construction of the Company are as
follows:

                                                       Installed capacity                         Planned production
         Project type          Project name                                  Shareholding ratio
                                                       ('0,000 kilowatts)                                time

         Wind Power          Pingyuan Sishui                   4                   100%               June 2022

         Wind Power      Yangjiang Qingzhou I                 40                   100%             December 2023

         Wind Power      Yangjiang Qingzhou II                60                   100%             December 2024

         Photovoltaic    Zhanjiang Potou Qiantang             22                   100%             December 2022

            Total                                             126


III.Analysis On core Competitiveness

1. The largest listed company of power in Guangdong
The Company's main power generation assets are located in Guangdong Province, with a total asset size of more
than 114.271 billion. It is the largest listed company of power in Guangdong Province. It is the only listed company
with over 100 billion assets controlled by state-owned holdings in Guangdong province. As of December 31,2021,
The company's controllable installed capacity and entrusted managed installed capacity totaled 38.7966 million
kilowatts , accounting for 24.4% of the total installed capacity of Guangdong Province.


2. Strong background and resource advantages


- 19 -
                                                       Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


Guangdong Energy Group, the controlling shareholder of the company, as a provincial key energy enterprise, has
been actively supporting listed companies to become better and stronger by using the advantages of its resources,
technology and asset scale. As the only listed company and main force of Guangdong Energy Group, the company
has always been subordinated to serving the overall situation of the reform and development of Guangdong
Province and Guangdong Yudean Group. It has deeply cultivated the main power industry, actively played the
value discovery function and resource allocation function of the capital market, and assisted the reform and
development of Guangdong Province's energy resources.


3. Comprehensive advantages of main business
During the 14th five-year period, Guided by the national energy development strategy, the Company is
implementing the "1+2+3+X" strategy - to build a first-class green and low-carbon power listed company,
coordinate safety and development, optimize and strengthen coal, gas and biomass power generation services, and
vigorously develop new energy, energy storage, hydrogen energy and land park development. The Company has
abundant project reserves and broad development prospects; With clear main business, reasonable structure,
outstanding industrial position and market share, it has strong comprehensive strength and broad development
prospects.
4. Competitive advantage in electricity market
The company's generator set has high parameters, large capacity, high operation efficiency, low coal consumption,
stable operation, superior environmental protection performance and strong market competitive advantage. In
2021, the company completed a total of 84.261 billion kilowatt-hours of electricity in the market, and the scale of
electricity sales continued to rank first in the province, with electricity sales prices superior to the province's
average. The company gives full play to its three advantages of scale, brand and service. With its marketing
service network all over the province and its technical accumulation and comprehensive resources in the power
industry, the company provides auxiliary value-added services such as peak regulation, frequency modulation and
backup for the power grid, and provides high-quality value-added services such as comprehensive energy saving
and power consumption consultation for users, thus realizing the transformation from a power generation
enterprise to an energy comprehensive service enterprise.
5. Advantage of financial resources
As of December 31,2021, the company's total assets were 114.571 billion yuan, net assets were 32.746 billion
yuan, net assets attributable to the parent were 23.185 billion yuan,; Net cash inflow from operating activities was
89 million yuan, net cash outflow from investment activities was 10.263 billion yuan, and net cash outflow from
financing activities was 8.981 billion yuan. At present, the Company's total assets reach 100 billion, and the cash
flow of its stock business is abundant, which provides a good support for the Company's sustainable development.
The Company has a good asset-liability ratio and rich financing channels, and it can make full use of internal and
external financial resources, thus providing a strong financial guarantee for its production and operation, key project
construction and the rapid development of new energy industry.
6. Regional development advantages
As the main energy source in Guangdong Province, the company shoulders the important task of helping
Guangdong Province to build a clean, low-carbon, safe and efficient modern energy system. The company will
actively integrate into the construction of Guangdong-Hong Kong-Macao Greater Bay Area, Shenzhen's advanced
demonstration zone and the development of Guangdong's "one core, one belt and one area". It will steadily push
forward the construction of key energy projects and the development of new energy resources in the province and
actively seek to expand into regions with better resource conditions and higher power demand, Help the "3060"


- 20 -
                                                      Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


target to be implemented.

IV.Main business analysis

Ⅰ.General
In 2021, thanks to the sustained and steady recovery of China's economy, the demand for electricity in the whole
society of Guangdong Province increased at a higher speed than expected, reaching 786.663 billion kWh, a
year-on-year increase of 13.58%. In 2021, Guangdong received 189.385 billion kWh of electricity from the west
part of China, with a year-on-year decrease of 7.97%; In terms of installed capacity, the newly put-into-operation
nuclear power and thermal power units in the province had a capacity of 5.79 million kilowatts, and the newly added
installed capacity of unified regulation accounted for 3.65% of the unified regulation capacity. Affected by factors
such as the reduction of power transmission from the west, the shortage of steam turbine caused by the high price of
natural gas, and the synchronous increase of peak shaving demand caused by the substantial increase of renewable
energy in Guangdong Province, the utilization hours of coal-fired power generation in Guangdong Province have
increased significantly. During the reporting period, the power consumption of the Company's coal-fired units was
85.519 billion kWh, with a year-on-year increase of 51.43%; The electricity consumption of the steam turbines was
16.627 billion kWh, with a year-on-year increase of 42.27%; The wind power on-grid electricity consumption was
1.742 billion kWh, with a year-on-year increase of 41.97%.

In 2021, the Company's market-oriented transaction scale continued to expand, and the discount rate was further
increased. The average on-grid electricity price of the consolidated statement was RMB 465.70/thousand kWh
(including tax, the same below), with a year-on-year decrease of RMB 2.08/thousand kWh, or 0.44%. As the price
of coal and gas continues to rise, the on-grid electricity price is greatly dropped away from the cost of power
generation fuel, resulting in a loss in the Company's power generation business. By the end of 2021, according to the
consolidated statements, the total assets of the Company were RMB 114.271 billion, with a year-on-year increase of
14.87%; The equity attributable to shareholders of the parent company was RMB 23.185 billion, with a
year-on-year decrease of 27.14%. According to the consolidated statements, the Company's revenue was RMB
44.167 billion, with a year-on-year increase of 31.44%; The net profit attributable to shareholders of the parent
company was RMB -3.148 billion, with a year-on-year decrease of 253.26%; And the earnings per share was RMB
-0.6 (compared to RMB 0.39 in the same period last year). The total liabilities of the Company according to the
consolidated statements were 81.526 billion, and the asset-liability ratio was 71.34%.

In 2021, the Company actively implemented the decision-making and deployment of the national strategic
objectives of emission peak and carbon neutrality, closely focused on the clean, low-carbon, safe and efficient
energy development strategy, comprehensively promoted the Company's "1+2+3+X" strategic layout, and
continuously optimized the power supply structure and asset structure. In 2021, all new energy projects such as
Zhuhai Jinwan, Yangjiang Shaba, Wailuo Phase II and Xinliao Offshore Wind Power were officially put into
production. Meanwhile, the Company actively promoted Yongan Thermal Power, Dongguan Ningzhou Gas Power,
Pingyuan Sishui Wind Power, Zhanjiang Potou Photovoltaic, Yangjiang Qingzhou Offshore Wind Power and other
projects to accelerate the pace of green and low-carbon transformation. By the end of 2021, the Company had a
controllable installed capacity of 29,942,600 kilowatts, with a year-on-year increase of 28.66%, of which the
proportion of clean energy increased to 27.2%. In the future, the Company will continue to adhere to the concept of
green development, continuously promote the optimization and adjustment of the power supply structure, actively
integrate into the construction of Guangdong-Hong Kong-Macao Greater Bay Area and the Shenzhen pilot
demonstration zone and the development of "one core, one belt and one area" in Guangdong, and make due
contributions to accelerating the construction of a clean, low-carbon, safe and efficient energy system and achieving

- 21 -
                                                        Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


the goal of emission peak and carbon neutrality.

2. Revenue and cost

(1)Component of Business Income

                                                                                                               In RMB
                                    2021                                     2020
                                                                                                     Increase /decrease
                         Amount            Proportion             Amount             Proportion

 Total operating
                       44,167,223,887        100%               33,602,895,865         100%               31.44%
 revenue

 On Industry

 Electric power ,
 Steam sales and       43,574,329,958       98.66%              33,115,496,875        98.55%              31.58%
 labor income

 Other                    592,893,929       1.34%                  487,398,990         1.45%              21.64%

 On products

 Sales Electric
                       43,278,023,920       97.99%              32,810,398,651        97.64%              31.90%
 Power

 Steam income             167,971,843       0.38%                  138,114,070         0.41%              21.62%

 Labor income             128,334,195       0.29%                  166,984,154         0.50%              -23.15%

 Comprehensive
 utilization of fly       495,095,811       1.12%                  380,944,621         1.13%              29.97%
 ash

 Lease revenue             48,557,619        0.11%                  44,103,472         0.13%              10.10%

 Other                     49,240,499        0.11%                  62,350,897         0.19%              -21.03%

 Area

 Guangdong             44,042,541,802       99.72%              33,530,640,110        99.78%              31.35%

 Yunnan                    64,581,623       0.15%                   72,255,755         0.22%              -10.62%

 Xingjiang                 60,100,462       0.14%

 Sub-sale model

 Direct selling        44,167,223,887        100%               33,602,895,865         100%               31.44%

(2)Situation of Industry, Product and District Occupying the Company’s Business Income and Operating Profit
with Profit over 10%
√ Applicable □Not applicable
The Company shall comply with the disclosure requirements of power-related industries in the Guideline No.3 for
Self-regulation of Listed Companies of Shenzhen Stock Exchange-Industry Information Disclosure.
                                                                                                                In RMB


- 22 -
                                                              Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


                                                                                 Increase/decrease Increase/decrease
                                                                                                                            Increase/decrease of
                                                                                 of revenue in the     of business cost
                                                                  Gross profit                                              gross profit rate over
                                Turnover         Operation cost                   same period of        over the same
                                                                    rate(%)                                                  the same period of
                                                                                     the previous          period of
                                                                                                                            the previous year (%)
                                                                                       year(%)         previous year (%)

 On products

 Electricity sales income    43,278,023,920 46,541,774,902            -7.54%                31.90%                     7%                -27.14%

 Of which:

  Coal-fired power
                             35,283,584,475 39,459,402,833           -11.84%                     44%             92.84%                  -28.33%
 generation

  Gas power generation        6,373,234,192       6,083,234,210        4.55%                -9.33%               17.72%                  -21.93%

  Wind Power generation       1,078,426,815        570,951,289        47.06%                42.68%               73.98%                   -9.52%

  Biomass power generation      478,196,815        372,045,928        22.20%                 5.84%                 3.50%                   1.76%

 Hydropower generation              64,581,623       56,140,642       13.07%               -10.53%                -8.95%                  -1.50%

 Area

 Guangdong                   44,042,541,802 46,665,941,467            -5.96%                31.35%               75.55%                  -26.68%

Reasons for great changes in related financial indicators
√ Applicable □ Not applicable
As the overall epidemic prevention and control and economic and social development in Guangdong Province continued to show
results, combined with the influence of factors such as reduction of power transmission from the west and frequent hot weather,
the electricity consumption of the whole society in Guangdong Province showed a historically high increase, and the power
supply situation was tight. The Company actively implemented the requirements of the special meeting on ensuring power
supply in Guangdong Province, and successfully completed the power protection tasks of several important nodes, resulting in a
large year-on-year increase in electricity consumption and electricity sales revenue.

(3)Whether the Company’s Physical Sales Income Exceeded Service Income

√ Yes    □ No
    Classification           Items                   Unit                     2021                     2020                  Changes

 Electric power,       Sales volume          '00,000,000 kWh                     1,049.51                     792.12                32.49%
 thermal production
                       Production            '00,000,000 kWh                     1,107.03                     835.66                32.47%
 and supply

Explanation for a year-on –year change of over 30%
√ Applicable □ Not applicable
In 2021, due to the stable and positive economic growth and other factors, the electricity demand of the whole
society in Guangdong Province increased at a higher speed than expected, and the electricity supply continued to be
tight. The Company made every effort to ensure the safe production and stable supply of electricity, and the
electricity generation capacity and the on-grid electricity according to the consolidated statements increased greatly
year on year.




- 23 -
                                                             Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


 (4) Performance of the major sales contract, major procurement contract signed by the Company till end of the
Period

√ Applicable □Not applicable
Implementation of Signed Major Sales Contracts as of this Reporting Period
√ Applicable □Not applicable
                                                                                                                                In     '0,000RMB

                                                                          Amount fulfilled                     Whether       Description        of      the
 Contract                                Total contract Total fulfilled                         Amount to
                Counterparty                                              during          the                  fulfilled     failure    to    fulfill   the
 object                                  amount         amount                                  be fulfilled
                                                                          reporting period                     properly      contract properly

 Quantity of CHINA SOUTHERN
                                                                               4,297,109.71                    Yes
 electricity    POWER GRID

Implementation of Signed Major Purchase Contracts as of this Reporting Period
□ Applicable √Not applicable

(5)Component of business cost

Industry classification
                                                                                                                                             In RMB

                                                            2021                                        2020

                                                                 Proportion        in                          Proportion in           Increase/De
          Industry             Items
                                                  Amount         the    operating          Amount              the operating             crease
                                                                 costs (%)                                     costs (%)

 Electric power,
 thermal production       Fuel cost           38,663,701,630           82.59%           19,293,583,315            72.41%                100.40%
 and supply

 Electric power,
                          Depreciation
 thermal production                            4,100,777,693           8.76%            3,784,024,124             14.20%                 8.37%
                          expense
 and supply

 Electric power,
 thermal production       Labor cost           1,812,303,566           3.87%            1,621,796,477                6.09%               11.75%
 and supply

 Electric power,
 thermal production       Other                2,238,017,793           4.78%            1,945,478,686                7.30%              15.04%
 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 82.59% of total cost.,
Mainly affected by the continuous increase in fuel prices, due to the fuel costs risen sharply year on year.

 (6)Whether Changes Occurred in Consolidation Scope in the Report Period

√Yes □No


- 24 -
                                                                 Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


                                                 New investment amount Paid-in capital at the end Proportion           Acquired
               Name                    Nature
                                                   in this period (Yuan)          of period(Yuan)           (%)
Guangdong Shajiao (Plant C)                                                                                        Business merger
                                      Electric
Power Generation Co., ltd.                                 1,559,120,782               2,500,000,000    51%         under the same
                                       Power
                                                                                                                        control
Guangdong Yudean Yunhe Power                                                                                       Business merger
                                      Electric
Generation Co., Ltd                                        1,066,562,327                 755,733,258    90%         under the same
                                       Power
                                                                                                                        control
Tumushuke Thermal Power Co.,                                                                                      Business merger not
                                      Electric
Ltd.                                                         800,000,000               1,006,523,900   79.48%       under the same
                                       Power
                                                                                                                        control
Guangdong Yuehua Power                                                                                             Business merger
                                      Electric
Generation Co., Ltd.                                         541,247,838               1,004,714,000    51%         under the same
                                       Power
                                                                                                                        control
Guangdong Yudean Dananhai             Electric
                                                              15,000,000                  15,000,000    100%           Invested
Intelligence Energy Co., Ltd.          Power
Guangdong Yudean Bijie New            Electric
                                                                 5,000,000                 5,000,000    100%           Invested
Energy Co., Ltd.                       Power
Guangdong Yudean Baihua               Electric
                                                                 3,000,000                 3,000,000    100%           Invested
Integrated Energy Co., Ltd.            Power


(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 sales customers

 Total sales amount to top 5 customers (Yuan)                                                                       43,545,115,382

 Proportion of sales to top 5 customers in the annual sales(%)                                                              98.60%

 Proportion of the sales volume to the top five customers in the total sales to
                                                                                                                               0.87%
 the related parties in the year

Information of the Company’s top 5 customers
     No                             Name                                      Amount(RMB)                       Proportion

 1          GPGC                                                                           42,971,097,121                   97.29%

            Guangdong Yudean Environmental Protection Co.,
 2                                                                                            378,769,439                      0.86%
            Ltd

 3          Zhuhai Bingxing Construction Materials Co., Ltd                                    79,138,402                      0.18%

 4          Yunnan Power Grid Co., Ltd.                                                        64,581,623                      0.15%

 5          State Grid Xinjiang Electric Power Co., Ltd.                                       51,528,797                      0.12%

 Total                                --                                                   43,545,115,382                   98.60%


- 25 -
                                                              Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


Other explanation :
√Applicable □Not applicable
Guangdong Yudean Environmental Protection Co., Ltd. is a wholly-owned subsidiary of Guangdong Electric Power
Industrial Fuel Co., Ltd., a joint venture company of the Company. Therefore, Guangdong Yudean Environmental
Protection Co., Ltd. is related to the Company.
Principal suppliers

 Total purchase of top 5 Suppliers(Yuan)                                                                            40,109,894,524

 Percentage of total purchase of top 5 suppliers In total annual purchase(%)                                                  89.66%

 Proportion of purchase amount from the top 5 suppliers in the total                                                          75.63%

 purchase amount from the related parties in the year

Information about the top 5 suppliers
     No                                  Name                                     Amount(Yuan)                   Proportion

 1              Guangdong Energy Group Co., Ltd                                           33,831,983,322                      75.63%

 2              Guangdong Zhujiang Investment Electric Fuel Co., Ltd.                      2,010,234,422                        4.49%

 3              Guangdong Dapeng ING Co., Ltd                                              1,786,609,453                        3.99%

 4              Jiangsu Longyuan Zhenhua Marine Engineering Co., Ltd.                      1,491,067,326                        3.33%

 5              Harbin Electric Corporation                                                 990,000,000                         2.21%

 Total                                        --                                          40,109,894,524                      89.66%

Other explanation :
√ Applicable □Not applicable
Guangdong Energy Group Co., Ltd. (hereinafter referred to as "Energy Group") is the controlling shareholder of the
Company, and has an associated relationship with the Company. The amount of related suppliers between the
Company and Energy Group listed here covers all related transactions between the Company and Energy Group and
its subsidiaries.

3.Expenses

                                                                                                                                In RMB

                                                                           Increase/Dec
                                              2021           2020                                             Notes
                                                                               rease(%)

              Sale expenses                                                               Mainly due to the company's added full-time
                                                                                          sales staff and increased business costs
                                              65,407,040     58,905,940        11.04%
                                                                                          caused by the deepening of electricity
                                                                                          market.

         Administration expenses        1,101,123,287      1,019,221,183        8.04%

           Financial expenses                                                             It is mainly affected by the expense of
                                                                                          interest of units newly put into production
                                        1,371,365,945      1,240,992,920       10.51%
                                                                                          and the increase of capital demand for new
                                                                                          projects.

- 26 -
                                                                      Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


                                                                                                  It was mainly due to the company's
                                                                                                  collection and recognition of R&D expenses
 R & Development expenses                     584,714,979        324,923,064         79.95%       in accordance with the new standards this
                                                                                                  year, and the substantial increase in R&D
                                                                                                  investment of subordinate units.


4.R& D Expenses

√ Applicable □Not applicable




                                                                                                                                 Expected impact on the
  Name of main R&D                                                        Project
                                        Project purpose                                        Goal to be achieved              future development of the
           project                                                        progress
                                                                                                                                         Company

                                                                                      To design a coal type adaptive control
                            The adaptability of the coordinated                      function based on standard coal, which
                            control system, the amount of coal, the                  is suitable for the coordinated control It ensures the Company to
 Study on adaptability
                            matching of primary air and secondary                    system of circulating fluidized bed       implement the strategy of
 of DCS coordinated
                            air with the steam turbine are studied                   unit. The sliding pressure control        coal diversification, and
 control     system    to                                                Completed
                            when the 300MW fluidized bed unit                        principle is deeply studied, and the      DCS can quickly adapt to the
 multiple coal types
                            burns a number of coals with different                   control function is optimized. While      combustion regulation of
 for burning
                            calorific values and ash contents so as to               ensuring the unit efficiency, the         different coal types
                            realize the stable and rapid load change                 frequency of manual intervention by
                                                                                     operators is reduced.

 R&D of stable and
                            Reduce powder pipe blockage and                          Improve the boiler combustion             Improve unit safety and
 efficient boiler                                                        Completed
                            uneven distribution                                      economy                                   economy
 pulverizing system

 Research and
                            Study the zero discharge treatment
 application of zero                                                                 Realize the recycling of production
                            process and application of waste based                                                             Improve the recycling level
 discharge of                                                                        and domestic water in island power
                            on the composition analysis of industrial Completed                                                of production and domestic
 wastewater in                                                                       plants, and build green environmental
                            wastewater of gas-steam combined cycle                                                             water in power plants
 gas-steam combined                                                                  protection
                            unit
 cycle power plant

                            The Project is based on the feasibility
                                                                                     Strengthen the start-up mode of the       Realize the isolated island
 Feasibility Study on study of Mitsubishi M701F single-shaft
                                                                                     unit, realize the isolated island         operation ability of power
 Black Start of             gas-steam combined cycle unit, which
                                                                                     operation capability of the power         plant, and improve the
 Single-shaft M701F can recover the system operation                     Completed
                                                                                     plant, and improve the power plant        power plant production and
 Combined Cycle Gas independently when the system is not
                                                                                     production and the safe operation         safe operation ability of
 Unit                       powered by power grid in case of
                                                                                     capability of the power grid.             power grid
                            large-scale outage in power grid.

 Research and               Energy storage system is a third-party                   The 20MW/9.953MWh grid-level              Improve the FM
                                                                         Completed
 application of energy auxiliary service provider for                                energy storage system based on            performance of the unit,



- 27 -
                                                                     Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


 storage frequency        Guangdong FM market access, which is                      lithium iron phosphate cell is built on increase the FM mileage and
 modulation (FM) of characterized by quick adjustment and                           the side of #3 and #4 generator sets,   compensation income, and
 Unit 3 and Unit 4 in accurate response, and can greatly                            and the energy storage system adopts meanwhile reduce
 Shanwei Power Plant improve the FM performance of the unit,                        the "one-for-two" mode, which is used equipment wear, reduce coal
                          increase the bid winning probability, FM                  for the combined units to participate in consumption, increase
                          mileage and revenue of the unit.                          AGC FM of power grid.                   operation safety, etc., so as
                                                                                                                            to strive for the priority of
                                                                                                                            generating electricity on grid
                                                                                                                            in the electricity market.

                          Analyze the problems still existing in the
 Research and             drainage system of the whole plant,
 application of deep      further optimize the water flow so as to
 water saving             realize the cascade utilization of
 technology and           wastewater, and solidify the terminal                     Achieve zero discharge of wastewater Reduce environmental
                                                                        Completed
 terminal wastewater wastewater, so as to eventually realize                        in the whole plant                      hazards.
 solidification           the zero discharge of wastewater in the
 technology in            whole plant and completely eliminate
 thermal power plant the hidden dangers of environmental
                          protection.

                          Through advanced control technologies
                          (MPC adaptive, ADRC active
                          disturbance rejection, IFC internal
                          feedback, self-learning control, etc.), the
                          automatic control of the reheat flue gas
 Research and
                          temperature, denitration and ammonia
 application of
                          injection control of a unit (temporarily                                                          Improve the stability and
 advanced control                                                                   Improve the thermal automation level
                          No.4 unit) is optimized, and the reheater                                                         reliability of the unit control
 technology in                                                          Completed of the corresponding control system of
                          desuperheating water and ammonia                                                                  system, save energy and
 ultra-low emission                                                                 the unit.
                          injection amount are reduced by                                                                   reduce emissions.
 control and energy
                          accurately controlling the reheat steam
 saving of units
                          temperature and NOx concentration, so
                          as to achieve the effect of energy saving
                          and consumption reduction of the unit,
                          and ensure the maximum economic
                          benefit of the unit.

 Research and
 application of control
                                                                                    Cooperate with the research institute   Improve the company's
 technology for
                          Cooperate with group research institute In                to carry out fuel cell research and     research ability and promote
 210KW
                          to develop fuel cell research.                operation implement the application of              the company's new energy
 high-temperature
                                                                                    technology.                             development business.
 fuel cell power
 generation system

 Research on              Through the application of new                Completed By improving the construction             Make the electric


- 28 -
                                                                     Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


 high-voltage             waterproof and anticorrosive materials                       technology, improve the service life of precipitator system run
 insulation               and processes, the service life of the top                   the top plate of the electric precipitator safely and stably, and the
 technology of            plate and the waterproof and moisture                        and the rain-proof and moisture-proof environmental protection
 electric precipitator    proof performance of the whole structure                     performance of the whole structure.         indexes meet the
 for generator sets       of the electric precipitator can be                          Improve the internal environment of         requirements.
                          prolonged, the internal environment of                       the electric precipitator, avoid the
                          the electric precipitator can be further                     breakdown of high-voltage insulators
                          improved, the insulation performance of                      due to the degradation of insulation
                          high-voltage insulators can be prevented                     performance, and improve the overall
                          from decreasing or even being broken                         safety, reliability and stability of the
                          down, and the safety, reliability and                        electric precipitator system.
                          stability of the electric precipitator
                          system can be effectively improved.

 Research and
                                                                                                                                   The realization of highly
 application of                                                                        Realize "one-key start-stop" at the
                          Realize automatic control of unit start                                                                  intelligent control of the unit
 one-key start-stop of                                                                 thermal system level, which is the first
                          and stop, reduce manpower input and              In                                                      provides important technical
 intelligent control                                                                   time in China to adopt the strategy of
                          achieve energy saving and emission               operation                                               support for the subsequent
 system for gas-steam                                                                  "self-intelligent and automatic
                          reduction                                                                                                construction of smart power
 combined cycle                                                                        equipment" as the basic logic.
                                                                                                                                   plants.
 cogeneration unit



Company's research and development personnel situation
                                                    2021                                   2020                         Increase /decrease

    Number of Research and
         Development persons                                       1,097                                1,027                                6.82%
              (persons)

   Proportion of Research and
                                                                11.65%                                11.08%                                 0.57%
         Development persons

 Academic structure of R&D
                                                    ——                                   ——                                   ——
 personnel

 Bachelor                                                           755                                   717                                5.30%

 Master                                                             104                                    83                                25.30%

 Doctor                                                                2                                     0

 Age composition of R&D
                                                    ——                                   ——                                   ——
 personnel

 Under 30 years old                                                  84                                    81                                3.70%

 30-40 years old                                                    371                                   337                                10.09%

 Over 40 years old                                                  620                                   582                                6.53%

The Company's R & D investment situation
                                                    2021                                   2020                         Increase /decrease

- 29 -
                                                               Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


    Amount of Research and
    Development Investment                            584,714,979                    324,923,064                      79.95%
                (Yuan)

   Proportion of Research and
  Development Investment of                                1.32%                          0.97%                        0.35%
          Operation Revenue

    Amount of Research and
    Development Investment                             27,538,100                     24,918,912                      10.51%
         Capitalization (Yuan)

  Proportion of Capitalization
   Research and Development
                                                           4.71%                          7.67%                        -2.96%
  Investment of Research and
    Development Investment

Reasons and influence of significant changes in R&D personnel composition of the Company
□ Applicable √Not applicable
The Reason of the Prominent Change in Total Amount of Research and Development Input Occupying the
Business Income Year on Year
□ Applicable √Not applicable
Reasons for the drastic change of capitalization rate of R&D investment and its rationality explanation
□ Applicable √Not applicable

5.Cash Flow

                                                                                                                        In RMB

                                 Items                                 2021                2020          Increase/Decrease(%)

 Subtotal of cash inflow received from operation activities         48,771,834,057      37,258,352,141                30.90%

 Subtotal of cash outflow received from operation activities        48,812,138,068      29,503,553,505                65.44%

 Net cash flow arising from operating activities                       -40,304,011       7,754,798,636              -100.52%

 Subtotal of cash inflow received from investing activities          2,210,405,687        897,824,041                146.20%

 Subtotal of cash outflow for investment activities                 11,341,567,109       9,334,014,914                21.51%

 Net cash flow arising from investment activities                   -9,131,161,422      -8,436,190,873                 7.48%

 Subtotal cash inflow received from financing activities            39,504,863,355      25,608,186,337                54.27%

 Subtotal cash outflow for financing activities                     31,715,363,283      23,868,583,548                32.87%

 Net cash flow arising from financing activities                     7,789,500,072       1,739,602,789               347.77%

 Net increase in cash and cash equivalents                          -1,381,965,670       1,058,210,525              -230.59%

Notes to the year-on-year change of the relevant data
√Applicable □ Not applicable
 (1) Cash inflow from operating activities increased by 30.9%, mainly due to the year-on-year increase in on-grid
electricity this year.
 (2) Cash outflow from operating activities increased by 65.44%, mainly due to the increase in fuel cost caused by

- 30 -
                                                           Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


the increase in on-grid electricity and the increase in coal and gas prices this year.
 (3) Net cash flow from operating activities decreased by 100.52%, mainly due to the fact that the revenue growth
this year was much lower than the cost growth.
(4) Cash inflow from investment activities increased by 146.20%, mainly due to the sale of wharf assets by Bohe
Company this year.
 (5) Cash outflow from investment activities increased by 21.51%, mainly due to the year-on-year increase in fixed
assets and intangible assets purchased and built by infrastructure units such as provincial wind power and marina
bay energy companies.
 (6) Cash inflow from fund-raising activities increased by 54.27%, mainly due to the fact that more cash was
received for obtaining loans caused by ensuring the completion of the power supply guarantee task and development
this year.
 (7) Net cash flow from financing activities increased by 347.77%, mainly due to the increase of cash inflow from
financing activities.
 (8) Net increase of cash and cash equivalents decreased by 230.59%, mainly due to the large cash outflow from
operating activities this year.
Reasons for the significant difference between the net cash flow generated by the Company's operating activities
during the reporting period and the net profit of this year
□ Applicable √Not applicable

V. Analysis of Non-core Business

□Applicable √Not applicable

VI. Condition of Asset and Liabilities

1.Condition of Asset Causing Significant Change
                                                                                                                        In RMB
                                  End of 2021                   End of 2020

                                            Proportion                     Proportion        Proportion          Notes to the
                             Amount         in the total    Amount         in the total   increase/decrease   significant change
                                            assets(%)                      assets(%)

 Monetary fund              8,105,320,953         7.09%    9,438,414,350         9.49%               -2.40%

 Accounts receivable        7,030,685,357         6.15%    5,287,149,592         5.31%                0.84%

 Contract assets                4,754,820            0%       3,342,276          0.01%               -0.01%

 Inventories                2,998,894,539         2.62%    1,683,995,018         1.69%                0.93%

 Investment real estate      378,796,932          0.33%     131,191,258          0.13%                0.20%

 Long-term equity
                            8,072,208,350         7.06%    7,297,733,122         7.34%               -0.28%
 investment

 Fixed assets              56,943,126,256       49.83% 51,695,843,548          51.97%                -2.14%

 Construction in process    8,634,727,069         7.56%    8,341,336,277         8.38%               -0.82%

 Use right assets           5,256,124,979         4.60%    3,710,066,727         3.73%                0.87%


- 31 -
                                                                  Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


 Short-term loans            12,360,296,429            10.82%    7,916,440,888         7.96%                  2.86%

 Contract liabilities                 5,864,811         0.01%        8,424,399         0.01%                    0%

 Long-term borrowing         28,940,577,856            25.33% 21,922,680,540           22.04%                 3.29%

 Lease liabilities            4,728,167,142             4.14%    3,303,235,225         3.32%                  0.82%

Overseas assets account for a relatively high proportion.
□ Applicable √ Not applicable
2.Asset and Liabilities Measured by Fair Value
√Applicable □ Not applicable
                                                                                                                                 In RMB

                                       Gain/Loss on                       Impairment Purchased        Sold
                                                        Cumulative fair
                                         fair value                       provisions   amount in    amount in
                        Opening                          value change                                             Other
         Items                         change in the                        in the        the          the                    Closing amount
                        amount                           recorded into                                           changes
                                         reporting                         reporting    reporting   reporting
                                                            equity
                                          period                            period       period      period

 Financial assets

 Other equity
 Instrument          3,548,888,015      -246,859,333      2,291,866,066                                         -70,000,000     3,232,028,682
 Investment

 Subtotal of
                     3,548,888,015      -246,859,333      2,291,866,066                                         -70,000,000     3,232,028,682
 financial assets

 Total               3,548,888,015      -246,859,333      2,291,866,066                                         -70,000,000     3,232,028,682

 Financial
                                  0                                                                                                            0
 Liability

Other changes
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

Asset pledge situation
 On December 31, 2021, individual subsidiaries of the Group pledged the right to impose electricity charges to
banks to obtain long-term loans of RMB 6,002,119,898,of which: the balance of long-term loans due within one
year was 386,056,214 yuan (as of December 31, 2020: 4,193,207,913 yuan). including: the long-term borrowings
due within one year amounted to RMB 298,558,767.




- 32 -
                                                                                                                            Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


VII. Investment situation

1. General
√ Applicable □ Not applicable


                   Investment of the period                                   Investment of same period of last year                                       Scale of change

                                              4,542,474,730.60                                                   2,337,157,612                                                            138.46%

2.Condition of Acquiring Significant Share Right Investment during the Report Period
√Applicable □ Not applicable
                                                                                                                                                                                           In RMB

                                                                                                                                                          Whether
                                                                                                                Progress
Name of the                                               Share                                                                             Gain or Less to           Date of
               Main      Investment     Investment                  Capital             Investment Product      up         to
Company                                                  Proporti             Partner                                           Anticipated or the Current Involve Disclosure(      Disclosure Index(if any)
              Business       Way          Amount                    Source                Horizon    Type       Balance
Invested                                                  on %                                                                   Income     Investment    in          if any)
                                                                                                                Sheet Date
                                                                                                                                                          Lawsuit

                                                                                                                                                                    January
                                                                                                                                                                    26,2019,N
                                                                                                                                                                    ovember       Published in
                                                                                                                                                                    29,
Guangdong     Wind                                                                                                                                                                China Securities Daily,
                                                                                                                                                                    2019, April
Wind Power Power         Capital                                    Self                             Electric   In normal                                                         Securities Times   and
                                         1,828,810,000     100%               No        Long-term                                             196,412,857 No        11,
Generation    Generati increase                                     Funds                            Power      operation                                                         http//.www.cninfo.com.cn(An
                                                                                                                                                                    2020,
Co., Ltd.     on                                                                                                                                                                  nouncement No.:2019-40,
                                                                                                                                                                    August 28,
                                                                                                                                                                              2019-59,2018-45,2019-05,20
                                                                                                                                                                    2020,Dece 19-58,2020-13.
                                                                                                                                                                    mber 5,
                                                                                                                                                                    2020


- 33 -
                                                                                                                 Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


                                                                  Guangdo
Guangdong                                                                                                                                                        AnnouncementNo.:2021-64
                                                                  ng
Shajiao
                                                                  Energy
(Plant C)     Thermal                                     Self                            Electric   In normal                                        October 8, Published in
                        Purchase     658,475,586    51%           Group       Long-term                                          -273,438,892 No
Power         power                                       Funds                           Power      operation                                        2021       China Securities Daily,
                                                                  (Share
Generation                                                                                                                                                       Securities Times    and
                                                                  Proportio
Co., Ltd.                                                                                                                                                        http//.www.cninfo.com.cn
                                                                  n:49%)

                                                                  Yunfu
                                                                  Yunda
                                                                                                                                                                 AnnouncementNo.:2021-64
Guangdong                                                         Investme
Yudean                                                            nt                                                                                             Published in
              Thermal                                     Self                            Electric   In normal                                        October
Yunhe Power             Purchase     354,276,477    90%           Holdings Long-term                                             -102,742,252 No
              power                                       Funds                           Power      operation                                        8,2021     China Securities Daily,
Generation                                                        Co., Ltd.
                                                                                                                                                                 Securities Times    and
Co., Ltd..                                                        (Share
                                                                                                                                                                 http//.www.cninfo.com.cn
                                                                  Proportio
                                                                  n:10%)

                                                                  Xinjiang
                                                                  Jintai
                                                                  Electric
Tumushuke                                                                                                                                                        Published in
                                                                  Power
Thermal       Thermal                                     Self                            Electric   In normal                                        November
                        Purchase     800,000,000 79.48%           Co., Ltd. Long-term                                            -182,091,355 No                 China Securities Daily,
Power Co.,    power                                       Funds                           Power      operation                                        9,2021
                                                                  (Share                                                                                        Securities Times    and
Ltd.
                                                                  Proportio                                                                                      http//.www.cninfo.com.cn

                                                                  n:
                                                                  20.52%)

Guangdong                                                         China                                                                                          AnnouncementNo.:2021-64
              Thermal                                     Self                            Electric   In normal                                        October
Yuehua                  Purchase   229,412,667.60   51%           Huaneng Long-term                                              -189,201,075 No
              power                                       Funds                           Power      operation                                        8,2021
Power                                                             Group                                                                                          Published in


- 34 -
                                                                                                                 Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


Generation                                                     Co., Ltd.                                                                                         China Securities Daily,
Co., Ltd.                                                      (Share                                                                                           Securities Times    and
                                                               Proportio                                                                                         http//.www.cninfo.com.cn
                                                               n:49%)

                                                               Guangdo
                                                                                                                                                                 AnnouncementNo.:2020-69
Guangdong                                                      ng
Electric                                                       Energy
                Coal    Capital                        Self                                          In normal                                        December Published in
Power                              180,000,000   50%           Group        Long-term   Coal sales                                115,205,500 No
                sales   increase                       Funds                                         operation                                        25,2020    China Securities Daily,
Industry Fuel                                                  (Share
                                                                                                                                                                 Securities Times    and
Co., Ltd.                                                      Proportio
                                                                                                                                                                 http//.www.cninfo.com.cn
                                                               n:50%)

                                                               Guangdo
Gudngdong                                                      ng
                                                                                                                                                                 AnnouncementNo.:2017-14
Yudean                                                         Guokun
Huadu                                                          New                                                                                               Published in
                Cogener Capital                        Self                             Electric     In normal                                        April
Natural Gas                        136,500,000   65%           Energy       Long-term                                              -5,727,287 No
                ation   increase                       Funds                            Power        operation                                        26,2017    China Securities Daily,
Thermal                                                        Co., Ltd.
                                                                                                                                                                 Securities Times    and
power Co.,                                                     (Share
                                                                                                                                                                 http//.www.cninfo.com.cn
Ltd.                                                           Proportio
                                                               n:35%)

                                                               Huizhou
Guangdong                                                      Dayawan                                                                                           AnnouncementNo.:2021-34
Yudean                                                         Petrifacti
Dananhai        Cogener Capital                        Self                             Electric     In normal                                        May        Published in
                                                               on
                                   128,000,000   80%                        Long-term                                              -5,508,146 No
Intelligence    ation   increase                       Funds   Industry                 Power        operation                                        21,2021    China Securities Daily,
Energy Co.,                                                    Zone                                                                                              Securities Times    and
Ltd.                                                           Investme                                                                                          http//.www.cninfo.com.cn
                                                               nt Co.,


- 35 -
                                                                                                              Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


                                                             Ltd.
                                                             (Share
                                                             Proportio
                                                             n:20%)

                                                             Zhaoqin
                                                             g
Guangdong                                                    Hejiang
                                                                                                                                                              AnnouncementNo.:2016-07
Yudean                                                       Electric
Yongan                                                       Power                                                                                            Published in
              Cogener Capital                        Self                            Electric     In normal                                        March
Natural Gas                      90,000,000   90%            Develop Long-term                                                  -6,740,613 No
              ation   increase                       Funds                           Power        operation                                        26,2016    China Securities Daily,
Thermal                                                      ment
                                                                                                                                                              Securities Times    and
power Co.,                                                   Co., ltd.
                                                                                                                                                              http//.www.cninfo.com.cn
Ltd.                                                         (Share
                                                             Proportio
                                                             n:10%)

                                                             Guangdo
                                                                                                                                                              Announcement No.:2021-23
                                                             ng
Shanxi
                                                             Energy                                                                                           Published in
Yudean        Coal    Capital                        Self                                         In normal                                        April
                                 64,000,000   40%            Group       Long-term   Coal sales                                480,044,857 No
Energy Co.,   sales   increase                       Funds                                        operation                                        28,2021    China Securities Daily,
                                                             (Share
Ltd.                                                                                                                                                          Securities Times    and
                                                             Proportio
                                                                                                                                                              http//.www.cninfo.com.cn
                                                             n:60%)

                                                                                                                                                              AnnouncementNo.:2020-13
Guangdong
Yudean                                                                                                                                                        Published in
              Cogener Capital                        Self                            Electric     In normal                                        April
Binhaiwan                        50,000,000   100%           No          Long-term                                             -10,928,770 No
              ation   increase                       Funds                           Power        operation                                        10,2020    China Securities Daily,
Energy Co.,
                                                                                                                                                              Securities Times    and
Ltd.
                                                                                                                                                              http//.www.cninfo.com.cn

- 36 -
                                                                                                                      Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


Guangdong                                                                                                                                                                AnnouncementNo.:2021-01
Yudean
                         New                                                                                                                                             Published in
Dananhai       Cogener                                           Self                          Electric   In normal                                          January
                         establishme        15,000,000    100%           No        Long-term                                              -495,320 No
Intelligence   ation                                             Funds                         Power      operation                                          29,2021     China Securities Daily,
                         nt
Energy Co.,                                                                                                                                                              Securities Times    and
Ltd.                                                                                                                                                                     http//.www.cninfo.com.cn

Guangdong      Solar
                         New
Yudean Bijie power                                               Self                          Electric   In normal
                         establishme         5,000,000    100%           No        Long-term                                               -93,023 No
New Energy generati                                              Funds                         Power      operation
                         nt
Co., Ltd.      on

Guangdong                                                                                                                                                                AnnouncementNo.:2021-36
Yudean
                         New                                                                                                                                             Published in
Baihua         Cogener                                           Self                          Electric   In normal                                          June
                         establishme         3,000,000    100%           No        Long-term                                               -18,072 No
Intelligence   ation                                             Funds                         Power      operation                                          10,2021     China Securities Daily,
                         nt
Energy Co.,                                                                                                                                                              Securities Times    and
Ltd.                                                                                                                                                                     http//.www.cninfo.com.cn

Total               --         --      4,542,474,730.60   --        --        --       --          --         --                  0     14,678,409      --          --                  --




- 37 -
                                                                                                                           Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


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                                                    Sale                       Book value
                                                                                                          Cumulative    Purchase                     Gain/loss
                                         Initial         Mode          of balance at the Changes     in                                 amount                     balance at the
 Security    Security        Stock                                                                        fair value    amount in                     of the                        Accounting       Source of the
                                         investment      accounting       beginning of fair value of                                    in the                      end of the
 category      code      Abbreviation:                                                                    changes in     the this                    reporting                         items             shares
                                         cost            measurement      the reporting the this period                                  this                        reporting
                                                                                                            equity       period                       period
                                                                             period                                                     period                        period

Domestic                                                                                                                                                                            Other equity
                        Shenzhen
and foreign 000027                          15,890,628 FVM                  92,080,800     30,391,200     106,581,372                                               122,472,000 instrument         Self funds
                        Energy
stocks                                                                                                                                                                              Investment

Domestic                                                                                                                                                                            Other equity
and foreign 600642      Shenergy           235,837,988 FVM                 289,878,345    119,394,337     173,434,694                                               409,272,682 instrument         Self funds
stocks                                                                                                                                                                              Investment

Domestic                                                                                                                                                                            Other equity
and foreign 831039      NEEQ                    3,600,000 FVM               11,628,000       4,356,000     12,384,000                                                15,984,000 instrument         Self funds
stocks                                                                                                                                                                              Investment

Total                                      255,328,616          --         393,587,145    154,141,537     292,400,066               0            0             0    547,728,682          --                --

Disclosure date for the notice of
                                         October 31,2019
approval by the Board (If any)

Disclosure date for the notice of
approval by shareholders’ Meeting (If
any)

- 38 -
                                                                                                                                Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


(2)Investment in Derivatives
□ Applicable √ Not applicable
The Company had no investment in derivatives in the reporting period.

5.Application of the raised capital

□ Applicable √ Not applicable
The Company had no application of the raised capital in the reporting period.

VIII. Sales of major assets and equity

1.Situation of Significant Asset Sale

√ Applicable □ Not applicable
                                           Net profit
                                           contribut
                                                                        Ratio        of
                                           ed by this                                                                                  Whether      Whether        Whether it is
                                                                        net profit                                     Relationshi
                                           asset     to                                                                                all    the   all      the   implemented
                                                                        contribut                                      p with the
                                           the listed                                                      Whether                     property     creditor's     as planned, if
                                                          Impact of     ed by the                                      counterpart
                                           company                                         Pricing         it is a                     rights of    rights         not,          the
             Sold    Dat    Transaction                   the sale on   sale         of                                y
Counterpar                                 from the                                        principle       related                     the assets   and debts      reasons    and      Disclosu   Disclosure
             asset   e of   price (RMB                    the           assets to                                      (applicable
ty                                         beginning                                       for     asset   party                       involved     involved       measures            re date    index
             s       sale   '0,000)                       Company       the        total                               to    related
                                           of      this                                    sales           transacti                   have         have           taken by the
                                                          (Note 3)      net profit                                     party
                                           period to                                                       on                          been         been           Company
                                                                        of          the                                transaction
                                           the     date                                                                                transferre   transferre     shall         be
                                                                        listed                                         s)
                                           of      sale                                                                                d            d              elaborated.
                                                                        company
                                           (RMB
                                           '0,000)

Guangdong    Bohe    Aug       280,032.7         5,888    This asset           -           According       Yes         The             NO           NO             Yes                 August     Announcement

- 39 -
                                                                   Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


Electric    Coal   ust    sale does       to             Company                                               14,2021   on Related
Power       Whar   31,2   not affect      evaluation     is a                                                            Party
Industry    f      021    the             results of     subsidiary                                                      Transactions of
Fuel Co.,                 Company's       state-owne     with a                                                          Guangdong
Ltd.                      business        d assets       67.39%                                                          Yudean Bohe
                          continuity      filed by the   shareholdin                                                     Energy Co., Ltd.
                          and             competent      g by                                                            Selling Terminal
                          manageme        authority      Guangdong                                                       Assets
                          nt stability,                  Energy                                                          (2021-53) was
                          and                            Group Co.,                                                      published in
                          increases                      Ltd., and                                                       China Securities
                          the                            thus is                                                         Journal,
                          Company's                      company`s                                                       Securities Times
                          current net                    related                                                         and CNINF
                          profit by                      party.
                          about
                          RMB
                          58.88
                          million.




- 40 -
                                                                   Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


   2.Sales of major equity

   □ Applicable √ Not applicable

   IX. Analysis of the Main Share Holding Companies and Share Participating Companies

   √ Applicable □ Not applicable
   Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company
                                                                                                                                 In RMB

                  Company      Sectors         Registered
Company Name                                                     Total assets   Net assets       Turnover          Operating profit Net Profit
                  type         engaged in      capital

                               Power
                               generation
Bohe Energy
                  Subsidiary   and power         6,200,891,390     9,502,337,223 4,134,623,594     2,782,274,837         26,050,041    -20,922,634
Company
                               station
                               construction.

                               Power
Zhanjiang                      generation
Electric Power    Subsidiary   and power         2,875,440,000     3,917,310,215 3,704,967,935     2,244,415,610        373,119,711 -304,090,266
Company                        station
                               construction.

                               Power
Jinghai Power                  generation
Generation        Subsidiary   and power         2,919,272,000     8,355,804,109 2,982,926,166     6,657,485,630     -2,640,674,340   -509,356,177
Company                        station
                               construction.

                               Power
Red Bay Power                  generation
Generation        Subsidiary   and power         2,749,750,000     6,462,999,626 2,720,782,057     5,009,175,976       609,255,573 -488,495,726
Company                        station
                               construction.

                               Power
                               generation
Huizhou Natural
                  Subsidiary   and power         1,499,347,500     3,269,713,548 1,975,522,903     3,639,314,264       -117,742,041     84,762,958
Gas Company
                               station
                               construction.

                               Power
Pinghai Power                  generation
Generation        Subsidiary   and power         1,370,000,000     4,999,248,013 1,890,993,411     4,877,581,551         30,763,423     30,499,657
Company                        station
                               construction.

Shajiao C         Subsidiary   Power             2,500,000,000     6,916,322,968 2,986,022,873     1,999,829,883       -652,537,414   -568,004,644



   - 41 -
                                                                   Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


Company                           generation
                                  and power
                                  station
                                  construction.

                                  Power
Maoming                           generation
Thermal power Subsidiary          and power        1,437,985,100   2,799,651,949   814,047,099    2,072,867,826   -535,823,992   -534,404,739
Plant                             station
                                  construction.

                                  Power
                                  generation
Zhongyue
                   Subsidiary     and power        1,454,300,000   3,536,197,372   492,625,956    2,024,912,205   -454,273,396   -469,617,490
Energy Company
                                  station
                                  construction.

                                  Power
Shaoguan                          generation
Yuejiang           Subsidiary     and power        1,564,055,690   5,526,129,604   -168,796,245   3,170,945,774   -862,937,835   -879,443,743
Company                           station
                                  construction.

                                  Power
Dapu Power                        generation
Generation         Subsidiary     and power        1,040,000,000   4,146,587,931   346,910,021    2,498,375,991   -512,302,579   -526,539,763
Company                           station
                                  construction.

                                  Power
Guangdong
                                  generation
Wind Power
                   Subsidiary     and power        3,513,202,870 28,103,342,894 6,807,899,651     1,080,046,636    171,931,312   224,225,625
Generation
                                  station
Company
                                  construction.

                                  Investment in
                                  electric
Shanxi Yudean      Shareholding power,
                                                   1,160,000,000   6,627,921,355 5,978,182,597     100,199,753    1,200,176,191 1,200,222,313
Energy             Company        mining, new
                                  energy and
                                  other projects

                                  Provide
Energy Financial
                   Shareholding financial
Leasing                                            2,000,000,000   7,913,153,817 2,128,409,423     259,494,775     119,312,905    89,599,668
                   Company        leasing
Company
                                  services

Energy Group                      Provide
                   Shareholding
Finance                           Finance          3,000,000,000 24,792,312,677 4,131,339,145      752,537,763     459,334,806   364,396,202
                   Company
Company                           services


   - 42 -
                                                                   Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


                                 Power
                                 generation
Taishan Power    Shareholding
                                 and power        4,669,500,000    7,844,207,002 7,363,770,542      6,349,201,814      746,088,411       544,447,583
Generation       Company
                                 station
                                 construction

   Acquirement and disposal of subsidiaries in the Reporting period
   √ Applicable □ Not applicable
                                           Way of acquiring and disposing of subsidiary Impact on the whole producing operation and
 Company name
                                           corporations within the reporting period     performance

                                                                                        During the reporting period, the Great South China Sea
 Guangdong Yudean Dananhai
                                           Invested                                     Smart Energy Project was in the preliminary stage, and
 Intelligence Energy Co., Ltd.
                                                                                        the construction was not commenced.

                                                                                        During the reporting period, Baihua Integrated Energy
 Guangdong Yudean Baihua Integrated
                                           Invested                                     Project was in the preliminary stage, and the
 Energy Co., Ltd.
                                                                                        construction was not commenced.

                                                                                        During the reporting period, Bijie New Energy Project
 Guangdong Yudean Bijie New Energy
                                           Invested                                     was in the preliminary stage, and the construction was
 Co., Ltd.
                                                                                        not commenced.

                                                                                        During the reporting period, Tumushuke Project had
                                                                                        suffered a net loss of RMB 39,677,914, with a net asset
 Tumushuke Company                         Business merger not under the same control
                                                                                        of RMB 770,988,573 from the date of purchase to the
                                                                                        end of the year.

                                                                                        During the reporting period, Shajiao ( Plant C) Power
 Shajiao(Plant C) Power Generation                                                      Generation Project Suffered a net loss of RMB
                                           Business merger under the same control
 Company                                                                                568,004,644 this year, with a net asset of RMB
                                                                                        2,986,022,873 .

                                                                                        During the reporting period, Yunhe Power Generation
 Guangdong Yudean Yunhe Power
                                           Business merger under the same control       Project Suffered a net loss of RMB113,761,370 this
 Generation Co.,Ltd.
                                                                                        year, with a net asset of RMB 1,167,270,828.

                                                                                        During the reporting period, Yuehua Power Generation
 Guangdong Yuehua Power Generation
                                           Business merger under the same control       Project Suffered a net loss of RMB 366,848,863 this
 Co., Ltd.
                                                                                        year, with a net asset of RMB 981,909,386.

   Note
   1. During the reporting period, due to the high price of coal and gas, the cost of power generation increased
   substantially, and the Company's thermal power suffered a loss compared with the same period of last year;
   2. In 2021, the Company's Zhuhai, Pingyuan, Xinliao and Wailuo Phase II projects were put into operation, and the
   wind power revenue increased year on year. However, the Company's wind power profit was basically the same as
   that of the previous year due to the year-on-year increase in depreciation and period expenses;
   3. Investment income from affiliated companies of the Company increased year on year, mainly due to the rising
   coal price, and investment income from Shanxi Energy and Fuel Company increased greatly year on year.


   - 43 -
                                                      Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


X.Structured vehicle controlled by the Company

□ Applicable √ Not applicable

XI. Prospect for future development of the Company

(I)The Development Trend of the Industry

Currently, China's power generation industry continues to present a diversified competition pattern. The main
generator sets of the Company are mainly in Guangdong Province, where there are many other power producers,
which are greatly affected by the power transmission from west to east. China's power supply structure is mainly
featured by thermal power generation. In recent years, with the proposal of "double carbon" goal and the deepening
of power supply reform, new and renewable energy sources such as wind power, photovoltaic power, nuclear power,
hydropower and biomass power generation have developed rapidly, and thermal power has gradually changed from
the main power source to the basic power source of peak regulation and frequency modulation. In 2021, the Central
Economic Work Conference proposed that the gradual withdrawal of traditional energy shall be based on the safe
and reliable substitution of new energy, and established in the basic national conditions of coal as the mainstay,
focusing on the clean and efficient utilization of coal, and promoting the optimal combination of coal and new
energy. With the further promotion of energy-saving and consumption-reducing transformation, flexibility
transformation and heating transformation of coal-fired units in the future, coal-fired generating units with large
capacity, high parameters and advanced energy saving will still be important power support. In addition, the clean
and efficient gas generator set is conducive to enhancing the peak-shaving capacity and safety reliability of the new
power system with new energy as the main body, and to building a clean, low-carbon, safe and efficient energy
system, with certain development space. To sum up, in the future, the thermal power industry will mainly rely on
developing coal power with large capacity, high parameters, advanced energy-saving, and accelerating the
development of gas power to optimize the power supply structure, promote the quality improvement and efficiency
increase by enhancing the technical R&D strength, strive for high electricity quantity and price by active marketing,
and reduce the cost by refined management; Meanwhile, the Company will actively grasp the development trend of
accelerating energy transformation under the goal of "emission peak" and "carbon neutrality", actively expand the
resources of new energy projects through multiple forms such as self-construction and acquisition, fully promote the
leap-forward development of new energy, and promote the clean and low-carbon transformation of the Company's
energy.

 (II) Corporate development strategy

In the future, it will focus on energy production and supply, with consideration of comprehensive energy services,
centered by the goals of carbon peaking and carbon neutralization. Based on Guangdong and targeted at the whole
country, it will implement the "1+2+3+X" strategy- to build a first-class green low-carbon power listed company,
coordinate safety and development, optimize and strengthen the coal power, gas power and biomass power
generation business, and vigorously develop new energy, energy storage, hydrogen energy and land park
development. It will fully promote the leap-forward development of new energy; Grasp the window phase of
thermal power development and accelerate the development and construction of key projects; Explore the
distribution of multi-energy joint supply project of "integration of source network, load and storage", promote the
integrated development of "integration of wind, light and fire hydrogen storage", and build an ecological and
civilized power generation enterprise.

(III) Production and operation plans

- 44 -
                                                       Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


In 2022, the company's consolidated statement has a budget target value of 109.212 billion kilowatt hours of
on-grid electricity, which is 4.06% higher than the actual on-grid power in 2021; The budgetary target value of the
main business revenue is RMB 50.889 billion, and an increase of 137 million yuan compared to the actual amount
of main business operating revenue of RMB 44.167 billion; The annual planned investment budget of the parent
company is RMB 6.473 billion, with an increase of RMB 5.209 billion compared with the actual investment of
RMB 4.542 billion in 2021.
(Note: The above operating plan does not represent the company's profit forecast for 2021, 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.)

(IV)Possible risks and countermeasures

1. Competition in electricity market is increasingly fierce. With the acceleration of the construction of the national
unified electricity market, all industrial and commercial users entering the electricity market, the cancellation of the
base electricity of coal-fired power plants, and the continuous settlement and trial operation of the electricity spot
market throughout the year, cross-regional multi-competition will not only create a broader market space for the
Company, but also bring a sharp increase in the number of market entities, an expansion of the floating range of coal
electricity prices, a continuous increase in the market transaction scale, and a more diversified trading mode, which
will further increase the competition intensity of power enterprises.
Countermeasures:First, fully expand the market. Strengthen the management of power generation process, optimize
the operation mode of units, ensure that all kinds of power contracts of thermal power units are implemented in
place, and new energy units are frequently and fully generated, and strive to achieve the Company's annual power
target. Second, strengthen the research and judgment of the electricity market, dynamically optimize the market
competition strategy, continuously improve and strengthen the construction of the electricity marketing system,
strive for the electricity price of market-oriented transactions to be higher than the market average level, further
improve the cooperative operation mechanism of the spot electricity market, and scientifically formulate trading
strategies. Third, focus on cost control. Firmly adhere to the principle of "frugality", strictly control general
management expenses and unproductive expenses, strive to control power generation costs and operating costs, and
improve the Company's market competitiveness.
2. Fuel prices are hovering at a high level. Affected by safety inspection, environmental protection supervision,
limited import quotas and other factors, the fuel supply continues to be tight, resulting in fuel prices hitting record
highs, plus geopolitical uncertainties and other factors, therefore, the uncertainty in the future trend of fuel prices
increases, and the Company's operating performance may continue to be under pressure.
Countermeasures : First, continuously follow up the dynamic situation of the Company's coal supply and
consumption, strengthen cooperation with fuel companies, establish an analysis model of fuel supply and
consumption and an inventory structure model, scientifically optimize power generation and fuel procurement
strategies, control fuel procurement costs, reduce fuel capital occupation, and form an inventory strategy that takes
into account both supply guarantee tasks and economic benefits. Second, solidly promote new achievements in
benchmarking world-class work. By benchmarking the implementation plan and work list through dynamically
updating, learn from the valuable practical experience of industry and business benchmarking, promote the
improvement of management innovation, and promote the Company's cost reduction and efficiency increase with
more refined and advanced management.
3. The work safety situation is complicated. Some thermal power units in the Company have been running for many
years, and the aging problem of the unit is prominent. Some contractors' safety management is not in place, on-site
operators' safety awareness is insufficient, and illegal operations sometimes occur.


- 45 -
                                                            Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


Countermeasures:First, thoroughly implement the responsibility system for work safety, organize personnel at all
levels to sign the responsibility form for work safety, decompose and implement all work safety objectives level by
level. Second, strengthen the equipment O&M management, earnestly well ensure the inspection and defect
elimination of equipment points, strengthen the analysis and investigation of hidden defects, eliminate common
hidden dangers of power plant equipment, and properly guarantee the closed-loop rectification of safety inspection.
Third, strengthen the safety education and training of all employees and contractors, popularize the new Work Safety
Law in an all-round way, enhance employees' safety awareness, and meanwhile, strengthen emergency rescue and
fire drills, and strive to prevent and resolve the risk of heavy casualties and property losses.
4. The structural adjustment of power supply has been strengthened. With the gradual implementation of China's
dual-carbon goal, energy production and consumption are accelerating the transition to green and low-carbon, a new
power system with new energy as the core is accelerating, and thermal power will gradually change from the main
power source to the basic power source. By the end of 2021, the installed capacity of the Company's coal-fired
power accounted for 72.8%, which is a high proportion; The Company's main power generation assets are located in
Guangdong Province, and the competition among power units inside the province is intensifying. The newly
installed nuclear power and the growth of renewable energy will further squeeze the on-grid power of thermal power
units, plus the influence by factors such as "West-to-East Power Transmission", accelerated electricity market
reform and carbon emission, as a result, the Company needs to vigorously promote the investment and construction
of new energy projects, continuously optimize and adjust the power supply structure, and accelerate the clean and
low-carbon energy transformation.
Countermeasures; First, the Company will actively increase investment in new energy projects and accelerate the
progress of new energy projects according to the national double-carbon goal and the relevant requirements of new
energy development planning. Third, deeply explore the distributed energy supply of cold, heat, electricity and gas,
as well as the infrastructure construction such as electricity exchange, charging piles and energy storage as well as
the development and utilization of hydrogen energy. Fourthly, continuously optimize the management of carbon
assets, make full use of internal and external resources, utilize the advantages of group operations, strengthen the
management of carbon emission data and management of carbon asset operation, enhance internal coordination,
promote energy conservation and carbon reduction, and realize the increment and profit of carbon assets.

XII.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
                                                                                   Main contents discussed
                                          Way of       Types of       Visitors
 Reception time   Place of reception                                                   and information                   Basic index
                                         reception      visitors      received
                                                                                          provided

                                                                                      Please refer to the    For details, please refer to the "Re
                                                                   Haitong
                                                                                   investor activity record cord Form of Investor Relations A
                   Meeting room on                                 securities,
                                                                                    form for details of the ctivities of Guangdong Electric Po
 March 4,2021     the 36th floor of the Field research Organization Southern
                                                                                       discussion. No        wer Development Co., Ltd."disclo
                       Company                                     Media Asset
                                                                                   information is provided sed by the interactive platform (2
                                                                   Management
                                                                                      by the Company         021001)

 April 20,2021      The panoramic          Other         Other     Investors who      Please refer to the    For details, please refer to the "Re



- 46 -
                                                        Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


                  network                                        participated in investor activity record cord Form of Investor Relations A
                                                                 the Company's form for details of the ctivities of Guangdong Electric Po
                                                                 performance         discussion. No      wer Development Co., Ltd."disclo
                                                                 briefing        information is provided sed by the interactive platform (
                                                                 through the        by the Company       2021002)
                                                                 panoramic
                                                                 network
                                                                 platform

                                                                                   Please refer to the   For details, please refer to the "Re
                                                                 First State     investor activity record cord Form of Investor Relations A
              Meeting room on
 September                                                       Cinda Fund      form for details of the ctivities of Guangdong Electric Po
             the 36th floor of the Field research Organization
 14,2021                                                         Management          discussion. No      wer Development Co., Ltd."disclo
                  Company
                                                                 Co.,Ltd         information is provided sed by the interactive platform (
                                                                                    by the Company       2021003)

                                                                                   Please refer to the   For details, please refer to the "Re
                                                                                 investor activity record cord Form of Investor Relations A
              Meeting room on                                    Industrial
 November                                                                        form for details of the ctivities of Guangdong Electric Po
             the 35th floor of the Field research Organization Securities,
 3,2021                                                                              discussion. No      wer Development Co., Ltd."disclo
                  Company                                        Boshi Fund
                                                                                 information is provided sed by the interactive platform (
                                                                                    by the Company       2021004)

                                                                                   Please refer to the   For details, please refer to the "Re
                                                                                 investor activity record cord Form of Investor Relations A
              Meeting room on
 November                                                        Boshi Fund,     form for details of the ctivities of Guangdong Electric Po
             the 35th floor of the Field research Organization
 9,2021                                                          Southern Fund       discussion. No      wer Development Co., Ltd."disclo
                  Company
                                                                                 information is provided sed by the interactive platform (
                                                                                    by the Company       2021005)

                                                                                   Please refer to the   For details, please refer to the "Re
                                                                                 investor activity record cord Form of Investor Relations A
              Meeting room on
 November                                                        Chasing         form for details of the ctivities of Guangdong Electric Po
             the 36th floor of the Field research Organization
 24,2021                                                         Securities          discussion. No      wer Development Co., Ltd."disclo
                  Company
                                                                                 information is provided sed by the interactive platform (
                                                                                    by the Company       2021006)

                                                                                   Please refer to the   For details, please refer to the "Re
                                                                                 investor activity record cord Form of Investor Relations A
              Meeting room on                                    Shenwan
 November                                                                        form for details of the ctivities of Guangdong Electric Po
             the 35th floor of the Field research Organization Hongyuan
 14,2021                                                                             discussion. No      wer Development Co., Ltd."disclo
                  Company                                        Securities
                                                                                 information is provided sed by the interactive platform (
                                                                                    by the Company       2021007)

                                                                 Haitong           Please refer to the   For details, please refer to the "Re
              Meeting room on
 December                                                        Securities,     investor activity record cord Form of Investor Relations A
             the 35th, 36th floor Field research Organization
 30,2021                                                         Maxwealth       form for details of the ctivities of Guangdong Electric Po
              of the Company
                                                                 Fund                discussion. No      wer Development Co., Ltd."disclo



- 47 -
         Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


               Management     information is provided sed by the interactive platform (
               Co., Ltd.,        by the Company       2021008)
               Shenzhen
               black stone
               Asset
               Management
               Limited




- 48 -
                                                     Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


                                           IV. Corporate Governance

I. General situation

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.


In 2021, the Company implemented the Guidelines for Corporate Governance of Listed Companies and the relevant
requirements of China Securities Regulatory Commission on improving the quality of listed companies, and
earnestly achieved a steady and prudent management, abided by laws and regulations, highlighted and refined its
main business, respected investors, and constantly improved the corporate governance level and the development
quality of listed companies. The Board of Directors organized 8 on-site meetings and 8 communication meetings,
and completed the examination and approval of 84 proposals of the Board of Directors, including regular reports,
internal control evaluation, comprehensive risk management, profit distribution plan, major investment and
financing, major related party transactions, etc., all of which were passed and effectively implemented. The Board
of Directors also convened 7 general meeting of shareholders, and all 31 proposals submitted at the general meeting
of shareholders were passed and effectively implemented. The Company successfully completed the preparation
and disclosure of regular reports and temporary announcements, and issued 160 announcements throughout the year.
The information disclosure has been assessed as "A" by Shenzhen Stock Exchange for eight consecutive years.
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

- 49 -
                                                               Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


   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

                  Types of                       Property of
                                 Name of the                                                                                 Time Schedule of
                 relationship                        the
Problem Types                    Controlling                          Problems and Causes             Countermeasures             Works and
                 with listed                     Controlling
                                 Shareholders                                                                               Follow-up Program
                 companies                      Shareholders

                                                               Energy          Group           was   On January 3, 2018, Our company will
                                                               established                when       the company           actively fulfill the
                                                               Guangdong             Provincial      disclosed             trusteeship             and
                                                               Government took the lead              Announcement on       responsibilities
                                                               in the implementation of              Controlling           according       to      the
                                                               the “plant and network               Shareholders'         “Equity        Custody
                                                               separation” power system             Commitment to         Agreement”             and
                                                               reform in China, and was              Perform Related       participate      in     the
                                                               separated       and       formed      Matters (public       management              and
                                                               from                Guangdong         notice No.:           decision-making and
                                                               Provincial Power Group                2018-01); on          inspection              and
                                                               Corporation.        It    is the      January 13, 2018,     supervision of the
                                                               largest and most powerful             the company           custody target. The
                                                               power               generation        disclosed             company                 will
                                                               enterprise in Guangdong               Announcement of       cooperate              with
                                Guangdong
Horizontal      Controlling                     Local          Province. Yudean Power                Related               Energy      Group         to
                                Energy Group
competitions    shareholder                     SASAC          is the only listed company            Transactions on the   push      forward       the
                                Co., Ltd.
                                                               under the Energy Group                "Equity Custody       defect rectification of
                                                               and is engaged in power               Agreement" signed     the           underlying
                                                               production business. At               with Guangdong        assets,     study       the
                                                               present,     Energy       Group       Energy Group Co.,     rectification           and
                                                               still has some remaining              Ltd. (public notice   solution        to      the
                                                               power generation assets               No.: 2018-04). In     defects and obstacles
                                                               that     have       not     been      order to avoid        in the relevant assets
                                                               included in Yudean Power              competition in the    that do not meet the
                                                               temporarily. Considering              same industry and     listing      conditions,
                                                               the     situation     of these        to fulfill the        promote          relevant
                                                               power generation assets,              relevant horizontal   rectification         work
                                                               it is temporarily not in              competition           from the aspects of
                                                               line     with    the      listing     commitments,          improving            project
                                                               conditions,      and       it    is   Energy Group has      approval or approval
                                                               difficult to solve these              signed the Entrusted procedures,

   - 50 -
                                                       Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


                                                       problems in the short          Management             clarifying land and
                                                       term. Therefore, there is a    Agreement with the property ownership,
                                                       certain     degree        of   company, and all       enhancing             asset
                                                       horizontal competition.        the shareholders'      profitability,         and
                                                                                      rights other than the implementing           legal
                                                                                      ownership, income, compliance.                For
                                                                                      and disposal rights    custody assets that
                                                                                      of the company that meet         the       listing
                                                                                      temporarily fails to   conditions       in     the
                                                                                      meet the listing       future, Energy Group
                                                                                      conditions in the      will, in accordance
                                                                                      company's custody      with     the      unified
                                                                                      area of the Energy     deployment of the
                                                                                      Group are escrowed Guangdong
                                                                                      to our company.        Provincial            Party
                                                                                                             Committee and the
                                                                                                             provincial
                                                                                                             government and the
                                                                                                             overall requirements
                                                                                                             for the reform of
                                                                                                             state-owned
                                                                                                             enterprises, actively
                                                                                                             create conditions for
                                                                                                             the     injection      into
                                                                                                             listed companies in
                                                                                                             accordance with the
                                                                                                             status of the assets
                                                                                                             under            custody,
                                                                                                             combined              with
                                                                                                             enterprise
                                                                                                             restructuring,
                                                                                                             structural adjustment
                                                                                                             arrangements,
                                                                                                             electricity       market
                                                                                                             and capital market
                                                                                                             conditions.



IV. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period

1.Annual General Meeting


                                      Investor
         Sessions      Type                               Meeting Date           Disclosure date             Disclosure index
                                 participation ratio



- 51 -
                                                     Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


                                                                                             Announcement of Resolution of
                                                                                             the first Provisional
                                                                                             shareholders’ general meeting in
 The first provisional Provisional
                                                                                             2021,Announcement
 shareholders’ General shareholders’      72.57%    February 25,2021    February 26,2021
                                                                                             No.:2021-09,
 meeting in 2021          General Meeting
                                                                                             Published in China Securities D
                                                                                             aily, Securities Times and http//.
                                                                                             www.cninfo.com.cn

                                                                                             Announcement of Resolution of
                                                                                             2020 shareholders’ general
                                                                                             meeting ,Announcement
 2020 Shareholders’      Annual General
                                            72.58%      May 20,2021         May 21,2021      No.:2021-33.
 general meeting          Meeting
                                                                                             Published in China Securities D
                                                                                             aily, Securities Times and http//.
                                                                                             www.cninfo.com.cn

                                                                                             Announcement of Resolution of
                                                                                             the Second Provisional
 The Second                                                                                  shareholders’ general meeting in
                          Provisional
 provisional                                                                                 2021,Announcement
                          shareholders’    72.60%     August 2,2021        August 3,2021
 shareholders’ General                                                                      No.:2021-48,
                          General Meeting
 meeting in 2021                                                                             Published in China Securities D
                                                                                             aily, Securities Times and http//.
                                                                                             www.cninfo.com.cn

                                                                                             Announcement of Resolution of
                                                                                             the Third Provisional
                                                                                             shareholders’ general meeting in
 The Third provisional Provisional
                                                                                             2021,Announcement
 shareholders’ General shareholders’      73.25%     August 30,2021      August 31,2021
                                                                                             No.:2021-59
 meeting in 2021          General Meeting
                                                                                             Published in China Securities D
                                                                                             aily, Securities Times and http//.
                                                                                             www.cninfo.com.cn

                                                                                             Announcement of Resolution of
                                                                                             the Fourth Provisional
 The Fourth                                                                                  shareholders’ general meeting in
                          Provisional
 provisional                                                                                 2021,Announcement
                          shareholders’    73.72%    October 25,2021      October 26,2021
 shareholders’ General                                                                      No.:2021-73
                          General Meeting
 meeting in 2021                                                                             Published in China Securities D
                                                                                             aily, Securities Times and http//.
                                                                                             www.cninfo.com.cn

                                                                                             Announcement of Resolution of
 The Fifth provisional Provisional
                                                                                             the Fifth Provisional
 shareholders’ General shareholders’      72.62%   November 25,2021     November 26,2021
                                                                                             shareholders’ general meeting in
 meeting in 2021          General Meeting
                                                                                             2021,Announcement

- 52 -
                                                                         Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


                                                                                                                       No.:2021-89
                                                                                                                       Published in China Securities D
                                                                                                                       aily, Securities Times and http//.
                                                                                                                       www.cninfo.com.cn

                                                                                                                       Announcement of Resolution of
                                                                                                                       the Sixth Provisional
                                                                                                                       shareholders’ general meeting in
           The Sixth provisional Provisional
                                                                                                                       2021,Announcement
           shareholders’ General shareholders’           72.74%         December 29,2021        December 30,2021
                                                                                                                       No.:2021-94
           meeting in 2021          General Meeting
                                                                                                                       Published in China Securities D
                                                                                                                       aily, Securities Times and http//.
                                                                                                                       www.cninfo.com.cn


         2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore

         □ Applicable √Not applicable

         V. Information about Directors, Supervisors and Senior Executives



                                                                                    Shares    Amount of    Amount of Other
                                                                                                                                   Number of       Reasons for
                                                                         Expiry     held at     shares        shares       chan
                               Office                    Starting date                                                            shares held at   increase or
  Name            Positions               Sex      Age                   date of     the      increased at decreased at ges(s
                                status                    of tenure                                                               the end of the decrease of
                                                                         tenure    year-beg the reporting the reporting hares
                                                                                                                                  period(shares)     shares
                                                                                   in(share) period(share) period(share)    )

                   Board                                   August        August
Wang Jin                      In office Male       58
                  chairman                                 2,2021        1,2024

                                                           August        August
Wang Jin          Director    In office Male       58
                                                           2,2021        1,2024

  Zheng      Vice     Board                                August        August
                              In office Male       53
 Yunpeng          chairman                                 2,2021        1,2024

  Zheng                                                    August        August
                  Director    In office Male       53
 Yunpeng                                                   2,2021        1,2024

  Zheng           General                                  August        August
                              In office Male       53
 Yunpeng          Manager                                  2,2021        1,2024

                                                           August        August
Li Fangji         Director    In office Male       54
                                                           2,2021        1,2024

                                                           August        August
Li Baobing        Director    In office Male       47
                                                           2,2021        1,2024

  Chen                                                     August        August
                  Director    In office Male       46
 Yanzhi                                                    2,2021        1,2024


         - 53 -
                                                                   Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


   Mao                                                 August     August
                  Director    In office   Male   47
 Qinghan                                               2,2021     1,2024

  Shen       Independent                               August     August
                              In office Female   54
 Hongtao           director                            2,2021     1,2024

             Independent                               August     August
 Wang Xi                      In office Male     51
                   director                            2,2021     1,2024

   Ma        Independent                               August     August
                              In office Male     57
 Xiaoqian          director                            2,2021     1,2024

   Yin       Independent                               August     August
                              In office Male     52
 Zhongyu           director                            2,2021     1,2024

             Chairman of                               August     August
  Zhou       the                                       2,2021     1,2024
                              In office Male     49
 Zhijian Supervisory
             Committee

             Employee                                  August     August
Li Ruiming                    In office Male     58
             supervisor                                2,2021     1,2024

                                                       August     August
 Shi Yan      Supervisor In office Female        44
                                                       2,2021     1,2024

             Employee                                  August     August
 Li Qing                      In office Male     44
             supervisor                                2,2021     1,2024

             Independent                               August     August
Sha Qilin                     In office Male     61
                   director                            2,2021     1,2024

Tang                                                   August     August
              Deputy GM In office         Male   59
Yongguang                                              2,2021     1,2024

   Guo                                                 August     August
              Deputy GM In office         Male   47
Yongxiong                                              2,2021     1,2024

             Deputy GM,                                August     August
 Liu Wei Finance              In office Male     42    2,2021     1,2024
             manager

             Board                                     August     August
 Liu Wei                      In office Male     42
             secretary                                 2,2021     1,2024

                              Dimissio                September   August
Rao Subo          Director                Male   57
                              n                        18,2017    2,2021

   Wen                        Dimissio                September   August
                  Director                Male   53                         2,830                                    2,830
  Lianhe                      n                        18,2017    2,2021

                              Dimissio                September September
 Chen Ze          Director                Male   52
                              n                        18,2017    23,2021

                              Dimissio                February    August
Yan Ming          Director                Male   50
                              n                        21,2019    2,2021


         - 54 -
                                                                           Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


                Employee Dimissio                               AAugust    August
Liang Peilu                               Male        57
                supervisor n                                     2,2019    2,2021

               Independent Dimissio                                        August
Sha Qilin                                 Male        60    May 20,2014
                    director   n                                           2,2021

               Chairman of
  Zhang               the      Dimissio                          August    August
                                          Male        60
  Dewei        Supervisory n                                    14,2012    2,2021
                Committee

   Zhu         Independent Dimissio                                        August
                                          Male        64    May 20,2014
 Weiping        Supervisor n                                               2,2021

   Jiang       Independent Dimissio                                        August
                                          Male        53    May 20,2014
  Jinsou        Supervisor n                                               2,2021

                Employee Dimissio                               December   August
Hu Jinpei                                 Male        58
                supervisor n                                    23,2020    2,2021

   Total               --          --      --         --            --       --        2,830         0           0          0    2,830         --


           1.Basic situation

           Indicate whether any director, supervisor or senior management resigned before the expiry of their tenure during
           the Reporting Period
           □ Yes √ No

           Changes of directors, supervisors and senior executives

           √ Applicable □ Not applicable


                    Name                            Positions                              Types                     Date          Reason

               Rao Subo                             Director                      Left for term expiration     August 2,2021

              Wen Lianhe                            Director                      Left for term expiration     August 2,2021

                Chen Ze                             Director                            Dimission            September 23,2021   Job change

               Yan Ming                             Director                      Left for term expiration     August 2,2021

              Liang Peilu                       Employee director                 Left for term expiration     August 2,2021

               Sha Qilin                    Independent director                  Left for term expiration     August 2,2021

             Zhang Dewei           Chairman of the Supervisory Committee          Left for term expiration     August 2,2021

              Zhu Weiping                 Independent Supervisor                  Left for term expiration     August 2,2021

              Jiang Jinsuo                Independent Supervisor                  Left for term expiration     August 2,2021

               Hu Jinpei                   Employee supervisor                          Dimission              August 2,2021     Job change




           - 55 -
                                                     Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


2.Posts holding

Work Experience in the past five years of Directors, supervisors and senior Executives in Current office

Mr. Wang Jin, 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
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 Energy Group Co., Ltd., and concurrently
served as director of Guangdong Electric Power Development 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 Energy Group Co.,
Ltd., Minister of Strategy Development Department of Guangdong Energy Group Co., Ltd., Secretary of the Party
Branch and General Manager of Branch Company of Guangdong Yudean 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. Li Fangji, born in November 1967, is a senior engineer. He holds a bachelor degree from Beijing Institute of
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 Energy
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.,Minister of strategy Development Dept and party
branch secretary of Energy Group.

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 Minister of Finance Department and Secretary of the Party Branch of
Guangdong Energy Group Co., Ltd.,He served as Assistant to General Manager of Budget and Finance
Department and Director of Asset Management Department of Guangzhou Lingnan International Enterprise
Group Co., Ltd., Manager of Investment Department and Deputy General Manager of Guangdong Yudean Finance
Co., Ltd., and had concurrently served as General Manager of Shenzhen Tianxin Insurance Brokers Co., Ltd.and
Vice Minister,Minister and Secretary of the Party Branch of Finance Department of Guangdong Energy Group
Co., Ltd.

Mr. Mao Qinghan, born in October 1974. Bachelor Degree of Engineering from Hunan University, Master Degree
of Engineering from South China University of Technology. Engineer He is currently the Assistant General


- 56 -
                                                     Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


Manager of Guangzhou Development Group Co., Ltd., the Party Secretary and Executive Director (Legal
Representative) of Guangzhou Development Electric Power Group Co., Ltd. He used to be the Secretary and
Director of the Party General Branch of Xicun Thermal Power Plant of Guangzhou Power Plant, the Deputy
General Manager of Guangzhou Power Plant, the Secretary of the Party General Branch of Guangzhou Power
Plant Co., Ltd., the Secretary and General Manager of the Party General Branch of Guangzhou Wanglong Thermal
Power Co., Ltd., the Safety Director of Guangzhou Development Group Co., Ltd. and the General Manager of
Safety, Health and Environmental Management Department, and the Party Secretary and General Manager of
Guangzhou Development Electric Power Group Co., Ltd.

Mr. Chen Yanzhi, born in July 1975, graduated from Guangdong University of Technology with a bachelor's degree,
Senior Political Engineer. He is currently the Deputy Secretary of the Party Committee and Chairman of the Trade
Union of Guangdong Electric Power Development Co., Ltd. He used to be the Assistant Engineer of the Technical
Improvement Company of Guangdong Electric Power Industry Bureau, the special person in charge of the Labor
and Wage Division, the special person in charge of the personnel of Tianshengqiao First-class Hydropower
Development Co., Ltd., the special person in charge of the Human Resources Department and the Manager and
Deputy Head of the Personnel Division of Guangdong Yudean Group Co., Ltd.

Ms. Shen Hongtao, born in August 1967, PhD of management of Xiamen University, professor, doctoral
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,
She is also an Independent directors of Guangzhou Grandbuy Co ., Ltd., Guangzhou Yuexiu Financial Holdings
Group Co., Ltd., Rongjie Co., Ltd., Guangdong Electric Power Development Co., Ltd., and Guangxi Dongcheng
Hotel Management Group 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, born in April 1970, PhD of economics of Sun Yat-sen University, professor, doctoral supervisor,
Specially-appointed Professor of Pearl-river Scholar. Currently, he serves as professor of Lingnan College of
Yat-sen University and Director of Institute of Economic Research of Yat-sen University, He is also an
independent director of Guangdong Electric Power Development Co.,Ltd., Guangzhou Yuexiu Financial Holdings
Group Co., Ltd., Zhuhai Rural Commercial Bank,Cnfinance Holdings Limited and BYHEALTH Co., Ltd. and
External director of Guangzhou Public Transport Group Co., Ltd..

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 deputy director of teaching
guiding committee of energy and power professional of high education of the Ministry of Education, 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, 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,General Manager of M & A Dept of Great Wall Securities.

Mr. Zhou Zhijian, was born in October 1972, with bachelor of Economics from Zhongnan University of Finance
and Economics and Master of Business Administration from Jinan University, and he is senior accountant. He is

- 57 -
                                                    Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


currently the Chief Auditor, General Manager and Secretary of the Party Branch of the Audit Department of
Guangdong Energy Group Co., Ltd. He served as Manager of the Asset Operation Division of the Strategic
Development Department of Guangdong Yudean Asset Management Co., Ltd, Deputy Minister of the Finance
Department of Guangdong Yudean Asset Management Co., Ltd, Deputy Minister and Minister of the Finance
Department of Guangdong Yudean Group Co., Ltd, and Deputy Secretary and General Manager of the General
Party Branch of Guangdong Energy Group Finance Co., Ltd.
Ms. Shi Yan, born in December 1977, Master graduate from Sun Yat-sen University, Senior accountant. Currently,
she is the manager of the comprehensive branch of the Finance Department of Guangdong Energy Group Co., Ltd.
Previously, she was the special manager, director and general manager of the Cost Accounting Division of the
Finance Department of Guangdong Energy Group Co., Ltd.

Mr. Sha Qilin, currently a partner of Guangdong Nanguo Desai Law Firm, and a warehousing expert of external
directors of enterprises supervised by Guangzhou SASAC; Member of the Ministry of Justice's "National Talent
Pool of 1,000 Lawyers Handling Foreign-related Maters" and Guangdong Province's Foreign-related Leading
Talent Pool; Arbitrator of Hainan International Arbitration Court and Zhaoqing Arbitration Commission; Member
of Foreign-related Legal Professional Committee of Guangzhou Lawyers Association, and concurrently an
Independent Director of Guangdong Electric Power Development Co., Ltd. He used to be a major administrative
decision-making expert of Guangzhou Municipal People's Government (financial group) and 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.

Mr. Li Ruiming, born in December 1963. Bachelor degree from Guangdong Administration College, Master of
Power Engineering from Zhejiang University, Professor-level Senior Engineer. He is currently the Deputy Secretary
of the Party Committee and Secretary of Committee for Discipline Inspection of Guangdong Electric Power
Development Co., Ltd. He used to be Operation Workshop Director and Branch Secretary, Assistant to Plant
Manager and Director of Coal Water Slurry Project Office of Maoming Thermal Power Plant, Deputy Secretary of
Party Committee, Secretary of Committee for Discipline Inspection, Chairman of Trade Union of Maoming
Thermal Power Plant, Plant Manager, Secretary of Party Committee, Secretary of Committee for Discipline
Inspection and Chairman of Trade Union of Maoming Thermal Power Plant, Head of Preparatory Group of Bohe
Coal and Electricity Company, Plant Manager and Secretary of Party Committee of Yunfu Power Plant, General
Manager and Secretary of Party Committee of Yunhe Power Plant, Secretary of Party Committee, Secretary of Party
Committee, Secretary of Committee for Discipline Inspection and Chairman of Trade Union of Shajiao C Power
Plant.

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.

Mr. Tang Yongguang, born in December 1962. Bachelor of Engineering, Chongqing University. Senior engineer.
He is currently the Deputy General Manager of Guangdong Electric Power Development Co., Ltd. He used to be a
boiler technician in Huangpu power plant, a senior engineer in the biotechnology department of Guangdong
power industry bureau, a manager of the safety supervision division of the biotechnology safety supervision
department of Guangdong Energy Group Co., Ltd., a member of the party committee and deputy manager of
Shaoguan power plant, a member of the party committee and deputy manager of Shajiao C power plant, a deputy
director of the biotechnology safety supervision department of Guangdong Energy Group Co., Ltd., and a deputy
director of the safety supervision and Production Technology department of Guangdong Energy Group Co., Ltd.

- 58 -
                                                               Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


Mr. Guo Yongxiong, born in January 1974, Bachelor of Engineering from Hehai University, Master of
Engineering from South China University of Technology, is Senior Engineer. Currently, he is deputy general
manager of Guangdong Electric Power Development Co., Ltd. He used to be in charge for the production
preparation department of Zhuhai Guangzhu Power Generation Co., Ltd, specially in charge of Engineering
Department for steam turbines of Guangdong Zhuhai Power Generation Co., Ltd as a loaned staff borrowed by
Zhuhai Power Plant, and used to be team leader and planning supervisor of Zhuhai Power Plant Maintenance
Department, Engineer of Zhuhai Guangzhu Power Generation Co., Ltd, Planning Director of Planning and
Contract Department and Planning Director of Zhuhai Power Plant Unit 3 and 4 Extension Office, Deputy
Manager of Planning and Contract Department and Planning Director of Jinwan Power Generation Company,
Manager of Human Resources Department, Manager of Equipment Department, Party Committee Member, Chief
Engineer of Guangdong Zhuhai Jinwan Power Generation Co., Ltd, and served as Deputy General Manager of
Guangdong Red Bay Power Generation Co., Ltd.

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 and Manager.

Office taking in shareholder companies
√Applicable □Not applicable


  Names of the                                                                                           Expiry date   Does he /she receive
                                                         Titles engaged in the         Sharing date of
   persons in          Names of the shareholders                                                          of office remuneration or allowance
                                                               shareholders              office term
         office                                                                                             term       from the shareholder

    Li Fangji     Guangdong Energy Group Co., Ltd. Vice chief engineer             April 1,2018                                Yes

                                                     General Manager of
                                                     Operating Management
    Li Fangji     Guangdong Energy Group Co., Ltd.                                 February 1,2021                             Yes
                                                     Dept and Secretary of Party
                                                     Branch

                                                     Minister of Finance and
   Li Baobing Guangdong Energy Group Co., Ltd.                                     September 1,2019                            Yes
                                                     secretary of Party Branch

                                                     General Manager of the
                                                     Audit Department, secretary
  Zhou Zhijian Guangdong Energy Group Co., Ltd.                                    January 11,2021                             Yes
                                                     of Party Branch, General
                                                     Auditor

     Shi Yan      Guangdong Energy Group Co., Ltd. Deputy GM of Finance Dept June 1,2020                                       Yes

                  Guangzhou Development Group
 Mao Qinghan                                         Assistant general manager     July 1,2021                                 No
                  Co., Ltd.

                                                     Where there are more than one post, the starting time of appointment shall be the
 Notes to post-holding in shareholder’s unit
                                                     starting time of the main post.

Offices taken in other organizations


- 59 -
                                                           Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


 √Applicable □Not applicable
                                                                                                     End date    Drawing remuneration
                                                                              Start date of office
   Name                        Other unit                         Title                              of office   and allowance from of
                                                                                     term
                                                                                                       term         other unit(Y/N)

            Guangdong Energy Maoming Thermal Power
Wang Jin                                                    Board chairman    April 1,2019                                No
            Plant Co., Ltd.

Wang Jin    Guangdong Red Bay Power Generation Co., Ltd. Board chairman       December 1,2020                             No

            Guangdong Yudean Jinghai Power Generation
Wang Jin                                                    Board chairman    December 1,2021                             No
            Co., Ltd.

            Guangdong Huizhou Natural Gas Power
Wang Jin                                                    Board chairman    May 1,2021                                  No
            Generation Co., Ltd.

Wang Jin    Guizhou Yueqian Electric Power Co., Ltd.        Board chairman    March 1,2021                                No

            Zhuhai Special Economic Zone Guangzhu Power
Wang Jin                                                    Board chairman    July 1,2020                                 No
            Generation Co., Ltd.

            Guangdong Huizhou Pinghai Power Generation
Wang Jin                                                    Board chairman    April 1,2021                                No
            Co., Ltd.

            Guangdong Zhuhai Jinwan Power Generation
Wang Jin                                                    Board chairman    July 1,2020                                 No
            Co., Ltd.

Zheng       Guangdong Yudean Huadu Natural Gas Thermal
                                                            Board chairman    June 1,2021                                 No
Yunpeng     Power Co., Ltd.

Zheng
            Guangdong Yudean Bohe Coal Power Co.,Ltd.       Board chairman    June 1,2021                                 No
Yunpeng

Zheng
            Guangdong Yudean Binhaiwan Energy Co., Ltd.     Executive director June 1,2019                                No
Yunpeng

Zheng       Guangdong Yudean Dayawan Integrated Energy
                                                            Board chairman    February 1,2020                             No
Yunpeng     Co., Ltd

Zheng       Guangdong Yudean Dananhai Intelligent Energy
                                                            Executive director January 1,2021                             No
Yunpeng     Co., Ltd.

Zheng       Guangdong Yudean Baihua Integrated Energy
                                                            Executive director February 1,2021                            No
Yunpeng     Co., Ltd

Zheng
            Guangdong Yudean Qiming Energy Co., Ltd.        Executive director April 1,2021                               No
Yunpeng

Li Baobing CSPG Energy Co., Ltd.                            Supervisor        June 1,2018                                 No

Li Baobing Guangdong Yudean Finance Lease Co., Ltd.         Board chairman    September 1,2020                            No

Li Baobing Guangdong Energy Group Finance Co., Ltd.         Director          April 1,2020                                No

                                                            Vice Board
Chen Yanzhi Shanxi Yudean Energy Co., Ltd.                                    April 1,2021                                No
                                                            chairman

Chen Yanzhi Guangdong Yudean Shipping Co., Ltd.             Director          April 1,2021                                No


 - 60 -
                                                            Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


                                                             Chairman of the
Zhou Zhijian Yangjiang Nuclear Power Co., Ltd.               Supervisory          February 1,2020                     No
                                                             Committee

                                                             Executive director
                                                             (legal
    Mao      Guangzhou Development Electric Power
                                                             representative),    December 1,2017                     Yes
  Qinghan    Enterprise Co., Ltd.
                                                             secretary of the
                                                             party committee

                                                             Executive
                                                             director,Genearl
    Mao      Guangzhou Development Electric Power
                                                             Manager(legal       April 1,2018                        No
  Qinghan    Enterprise Co., Ltd.
                                                             representative)



                                                             Executive
                                                             director, Geneal
    Mao
             Guangzhou Guangneng Investment Co., Ltd.        Manager(legal       April 1,2018                        No
  Qinghan
                                                             representative)



   Shen
             Accounting dept , Jinan University              Professor            April 1,2012                        Yes
  Hongtao

   Shen      Guangzhou Yuexiu Finance Holding Group Co.,     Independent
                                                                                  November 1,2017                     Yes
  Hongtao     Ltd.                                           Director

   Shen                                                      Independent
             Guangzhou Store Co., Ltd.                                            September 1,2016                    Yes
  Hongtao                                                    Director

   Shen                                                      Independent
             Rongjie Co., Ltd.                                                    October 1,2017                      Yes
  Hongtao                                                    Director

   Shen      Guangxi Dongcheng Hotel Management Group        Independent
                                                                                  June 1,2021                         Yes
  Hongtao    Co., Ltd.                                       Director

  Wang Xi    Lingnan College, Sun Yat-sen University         Professor            July 1,2006                         Yes

                                                             Independent
  Wang Xi    Cnfinance Holdings Limited                                           March 1,2019                        Yes
                                                             Director

                                                             Independent
  Wang Xi    BYHEALTH CO., lTD.                                                   September 1,2020                    Yes
                                                             Director

             Guangzhou Yuexiu Finance Holding Group Co.,     Independent
  Wang xI                                                                         January 1,2019                      Yes
             Ltd.                                            Director

                                                             Independent
  Wang Xi    Zhuhai Rural Commercial Bank Co., Ltd.                               July 1,2014                         Yes
                                                             Director

  Wang Xi    Guangzhou Public Traffic Group Co., Ltd.        External director    August 1,2018                       Yes

Ma Xiaoqian Provincial Key Laboratory, School of Electric    Director             July 1,2014                         Yes



 - 61 -
                                                                Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


               Power, South China University of Technology

               Guangzhou Environmental protection Investment
Ma Xiaoqian                                                      External director   September 1,2016                     Yes
               Group Co., Ltd.

                                                                 Independent
Ma Xiaoqian Guangzhou Development Group Co., Ltd.                                    June 1,2016                          Yes
                                                                 Director

                                                                 Independent
Ma Xiaoqian Guangzhou Hengyun Enterprise Group Co., Ltd.                             March 1,2021                         Yes
                                                                 Director

                                                                 Independent
Ma Xiaoqian Guangzhou Steel Gas Energy Co., Ltd                                      July 1,2021                          Yes
                                                                 Director

                                                                 Assistant
Yin Zhongyu LC Securities                                                            September 1,2019                     Yes
                                                                 president

Sha Qilin      Guangdong Nanguo Desai Law firm                   A lawyer, Partner March 1,2007                           Yes

               Taishan Nuclear power Industry Investment Co.,
Zhou Zhijian                                                     Supervisor          February 1,2021                      No
               Ltd.

Zhou Zhijian Guangdong Energy Group Finance Co., Ltd.            Director            January 1,2020                       No

                                                                 Chairman of the
               Guangdong Electric Power Development
  Shi Yan                                                        Supervisory         February 1,2021                      No
               Corporation
                                                                 Committee

  Shi Yan      Guangdong Energy Group Guizhou Co., Ltd.          Director            August 1,2020                        No

                                                                 Chairman of the
  Li Qing      Guangdong Yudean Bohe Coal Power Co.,Ltd.         Supervisory         June 1,2021                          No
                                                                 Committee

                                                                 Chairman of the
               Guangdong Yudean Yongan Natural Gas thermal
  Li Qing                                                        Supervisory         March 1,2022                         No
               Power Co., Ltd.
                                                                 Committee

                                                                 Convenor of the
  Li Qing      Yunnan Nengtou Weixin Energy Co., Ltd.            Board of            March 1,2019                         No
                                                                 Supervisors

                                                                 Chairman of the
  Li Qing      Shenzhen Guangqian Electric Power Co., Ltd.       Supervisory         December 1,2018                      No
                                                                 Committee

                                                                 Chairman of the
  Li Qing      Zhanjiang Zhongyue Energy Co., Ltd.               Supervisory         August 1,2019                        No
                                                                 Committee

               Guangdong Yudean Baihua Integrated Energy
  Li Qing                                                        Supervisor          February 1,2021                      No
               Co., Ltd

                                                                 Convenor of the
  Li Qing      Guangdong Yudean Shipping Co., Ltd.               Board of            April 1,2021                         No
                                                                 Supervisors


 - 62 -
                                                           Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


 Li Qing    Guangdong Energy Finance lease Co., Ltd.        Supervisor        November 1,2020                        No

  Tang
            Guangdong Electric Industry Fuel Co., Ltd.      Director          March 1,2020                           No
Yongguang

  Tang
            Zhanjiang Electric Power Co., Ltd.              Director          December 1,2021                        No
Yongguang

  Tang
            Zhanjiang Zhongyue Energy Co., Ltd.             Board chairman    December 1,2019                        No
Yongguang

  Tang                                                      Vice Board
            Guangdong Red Way Power Generation Co., Ltd.                      December 1,2020                        No
Yongguang                                                   chairman

  Tang      Guangdong Shaoguan Yuejiang Power Generation Vice Board
                                                                              April 1,2021                           No
Yongguang Co., ltd.                                         chairman

  Tang      Guangdong Yudean Xinhui Power Generation
                                                            Board chairman    December 1,2021                        No
Yongguang Co., Ltd.

  Tang      Guangdong Yudean Huaqing Coal Gas Union
                                                            Board chairman    July 1,2020                            No
Yongguang cycle Power Generation Co., Ltd.

   Guo      Guoneng Yudean Taishan Power Generation Co.,
                                                            Director          December 1,2021                        No
Yongxiong Ltd.

   Guo
            Guangdong Yuelong Power Generation Co., Ltd. Board chairman       January 1,2022                         No
Yongxiong

   Guo      Guangdong Yudean Yongan Natural Gas thermal
                                                            Board chairman    March 1,2022                           No
Yongxiong Power Co., Ltd.

 Liu Wei    Guangdong Wind Power Generation Co., Ltd.       Director          December 1,2017                        No

 Liu Wei    Guangdong Yudean Finance Co., Ltd.              Director          April 1,2019                           No

            Guangdong Yudean Electric Power Sales Co.,
 Liu Wei                                                    Director          April 1,2020                           No
            Ltd.

 Liu Wei    Shenzhen Capital Group Co., Ltd.                Supervisor        October 1,2019                         No

                                                            Vice Board
 Liu Wei    Guangdong Yuejia Electric Power Co., Ltd.                         March 1,2019                           No
                                                            chairman

            Guangzhou Zhujiang Natural Gas Power            Vice Board
 Liu Wei                                                                      July 1,2020                            No
            Generation Co., Ltd.                            chairman

 Liu Wei    Guangdong Energy Finance lease Co., Ltd.        Director          November 1,2020                        No

            Guangdong Yudean Zhongshan Thermal Power
 Liu Wei                                                    Board chairman    April 1,2021                           No
            Plant Co., Ltd.

 Liu Wei    Tumushuke Thermal Power Co.,Ltd.                Director          December 1,2021                        No

            Guangdong Yudean Humen Power Generation
 Liu Wei                                                    Director          April 1,2021                           No
            Co., Ltd.

                                                            Vice Board
 Liu Wei    Yunnan Nengtou Weixin Energy Co., Ltd.                            April 1,2021                           No
                                                            chairman


- 63 -
                                                      Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


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

3. 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 b
efore tax was total RMB 7.7595 million .
Remuneration to directors, supervisors and senior executives in the reporting period
                                                                                                        In RMB10,000

                                                                                                       Remuneration
                                                                                          Total           actually
                                                                                       remuneration    receives at the
          Name        Positions         Sex             Age          Office status
                                                                                      received from      end of the
                                                                                     the shareholder     reporting
                                                                                                           period

                        Board
     Wang Jin                          Male              58            In office          94.93             No
                      chairman

                      Director,
  Zheng Yunpeng        General         Male              53            In office          91.42             No
                      Manager

     Li Fangji        Director         Male              54            In office            0               Yes

    Li Baobing        Director         Male              47            In office            0               Yes

   Chen Yanzhi        Director         Male              46            In office          82.04             No

   Mao Qinghan        Director         Male              47            In office            0               Yes

                    Independent
   Shen Hongtao                       Female             54            In office          10.16             No
                       director

                    Independent
         Wang Xi                       Male              51            In office           9.09             No
                       director

                    Independent
   Ma Xiaoqian                         Male              57            In office          10.22             No
                       director

                   Independent
   Yin Zhongyu                         Male              52            In office           8.54             No
                   director



- 64 -
                                              Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


                    Chairman of
   Zhou Zhijian    the Supervisory   Male        49            In office            0               Yes
                     Committee

                     Employee
    Li Ruiming                       Male        58            In office          87.32             No
                     supervisor

         Shi Yan     Supervisor      Female      44            In office            0               Yes

                     Employee
  Li Qing                            Male        44            In office          42.79             No
                     supervisor

                    Independent
     Sha Qilin                       Male        61            In office          7.32              No
                     supervisor

          Tang
                    Deputy GM        Male        59            In office          83.73             No
    Yongguang

  Guo Yongxiong     Deputy GM        Male        47            In office          43.68             No

                   Deputy General
                   manager,
         Liu Wei   Finance           Male        42            In office          84.47             No
                   Manager,
                   Board secretary

     Rao Subo         Director       Male        57           Dimission             0               Yes

    Wen Lianhe        Director       Male        53           Dimission             0               Yes

         Chen Ze      Director       Male        52           Dimission             0               Yes

     Yan Ming         Director       Male        50           Dimission             0               Yes

                     Employee
    Liang Peilu                      Male        57           Dimission           87.37             No
                      Director

                    Chairman of
   Zhang Dewei     the Supervisory   Male        60           Dimission             0               Yes
                     Committee

                   Independent
   Zhu Weiping                       Male        64           Dimission            2.5              No
                   Supervisor

                   Independent
    Jiang Jinsuo                     Male        53           Dimission           2.14              No
                   Supervisor

                     Employee
     Hu Jinpei                       Male        58           Dimission           28.23             No
                     supervisor

          Total          --            --        --               --             775.95              --




- 65 -
                                                            Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


VI. Performance of directors' duties during the reporting period

1. Information of the board meetings during the reporting period


                   Session                  Convening date     Disclosure date                  Meeting resolution

                                                                                 AnnouncementNo.::2021-01,Published in
 The 19th meeting of the Ninth Board of
                                            January 28,2021 January 29,2021
 Directors                                                                       China Securities Daily, Securities Times   and
                                                                                 http//.www.cninfo.com.cn

                                                                                 AnnouncementNo.::2021-10,Published in
 The 20th meeting of the Ninth Board of
                                            April 8,2021      April 10,2021
 Directors                                                                       China Securities Daily, Securities Times   and
                                                                                 http//.www.cninfo.com.cn

                                                                                 AnnouncementNo.::2021-23,Published in
 The First Meeting of the Ninth Board of
                                            April 27,2021     April 28,2021
 Directors by Correspondence of 2021                                             China Securities Daily, Securities Times   and
                                                                                 http//.www.cninfo.com.cn

                                                                                 AnnouncementNo.::2021-34,Published in
 The Second Meeting of the Ninth Board of
                                            May 20,2021       May 21,2021
 Directors by Correspondence of 2021                                             China Securities Daily, Securities Times   and
                                                                                 http//.www.cninfo.com.cn

                                                                                 AnnouncementNo.::2021-36,Published in
 The Third Meeting of the Ninth Board of
                                            June 8,2021       June 10,2021
 Directors by Correspondence of 2021                                             China Securities Daily, Securities Times   and
                                                                                 http//.www.cninfo.com.cn

                                                                                 AnnouncementNo.::2021-43,Published in
 The 21st meeting of the Ninth Board of
                                            July 16,2021      July 17,2021
 Directors                                                                       China Securities Daily, Securities Times   and
                                                                                 http//.www.cninfo.com.cn

                                                                                 AnnouncementNo.::2021-49,Published in
 The 1st meeting of the Tenth Board of
                                            August 2,2021     August 3,2021
 Directors                                                                       China Securities Daily, Securities Times   and
                                                                                 http//.www.cninfo.com.cn

                                                                                 AnnouncementNo.::2021-52,Published in
 The 1st Meeting of the Tenth Board of
                                            August 13,2021 August 14,2021
 Directors by Correspondence of 2021                                             China Securities Daily, Securities Times   and
                                                                                 http//.www.cninfo.com.cn

                                                                                 AnnouncementNo.::2021-56,Published in
 The 2nd meeting of the Tenth Board of
                                            August 26,2021 August 28,2021
 Directors                                                                       China Securities Daily, Securities Times   and
                                                                                 http//.www.cninfo.com.cn

                                                                                 AnnouncementNo.::2021-61,Published in
 The 2nd Meeting of the Tenth Board of      September         September
 Directors by Correspondence of 2021        14,2021           15,2021            China Securities Daily, Securities Times   and
                                                                                 http//.www.cninfo.com.cn


- 66 -
                                                                   Guangdong Electric Power Development Co., Ltd. 2021 Annual Report



                                                                                            AnnouncementNo.::2021-63,Published in
 The 3rd meeting of the Tenth Board of            September
                                                                      October 8,2021
 Directors                                        30,2021                                   China Securities Daily, Securities Times   and
                                                                                            http//.www.cninfo.com.cn

                                                                                            AnnouncementNo.::2021-74,Published in
 The 3rd Meeting of the Tenth Board of
                                                  October 28,2021 October 30,2021
 Directors by Correspondence of 2021                                                        China Securities Daily, Securities Times   and
                                                                                            http//.www.cninfo.com.cn

                                                                                            AnnouncementNo.::2021-77,Published in
 The 4th meeting of the Tenth Board of            November            November
 Directors                                        8,2021              9,2021                China Securities Daily, Securities Times   and
                                                                                            http//.www.cninfo.com.cn

                                                                                            AnnouncementNo.::2021-81,Published in
 The 4th Meeting of the Tenth Board of            November            November
 Directors by Correspondence of 2021              19,2021             20,2021               China Securities Daily, Securities Times   and
                                                                                            http//.www.cninfo.com.cn

                                                                                            AnnouncementNo.::2021-91,Published in
 The 5th Meeting of the Tenth Board of            December            December
 Directors by Correspondence of 2021              13,2021             14,2021               China Securities Daily, Securities Times   and
                                                                                            http//.www.cninfo.com.cn

                                                                                            AnnouncementNo.::2021-95,Published in
 The5th meeting of the Tenth Board of             December            December
 Directors                                        29,2021             30,2021               China Securities Daily, Securities Times   and
                                                                                            http//.www.cninfo.com.cn


2. Attendance of directors at the board meetings and the general meeting of shareholders


                      Attendance of directors at the board meetings and the general meeting of shareholders

                     Number of                             Number of
                                                                                                               Whether to
                       board         Number of               board         Number of
                                                                                               Number of        attend the      General
                      meetings           board             meetings             board
         Name of                                                                                 board            board       meetings of
                      attended          meetings        attended by        meetings
         director                                                                               meetings       meeting in     shareholders
                     during the      attended in           means of       attended by
                                                                                              absent from      person twice     attended
                     reporting           person        communicati             proxy
                                                                                                                 in a row
                       period                                 on

 Wang Jin                       16                 8                  8                 0                  0       No                      7

 Zheng Yunpeng                  16                 8                  8                 0                  0       No                      7

 Li Fangji                      16                 5                  8                 3                  0       No                      7

 Li Baobing                     16                 6                  8                 2                  0       No                      7

 Chen Yanzhi                    10                 5                  5                 0                  0       No                      5

 Mao Qinghan                    16                 4                  8                 4                  0       No                      7

 Shen Hongtao                   16                 6                  8                 2                  0       No                      7


- 67 -
                                                            Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


 Wang Xi                         16              8               8             0            0       No                       7

 Ma Xiaoqian                     16              8               8             0            0       No                       7

 Yin Zhongyu                     16              7               8             1            0       No                       7

 Rao Subo                        6               2               3             1            0       No                       2

 Wen Lianhe                      6               1               3             2            0       No                       2

 Chen Ze                         10              3               5             2            0       No                       4

 Yan Ming                        6               0               3             3            0       No                       2

 Liang Peilu                     6               1               3             2            0       No                       2

 Sha Qilin                       6               3               3             0            0       No                       2

Explanation of failure to attend the board meeting in person twice in a row
Not applicable。

3. Directors' objections to related matters of the Company

Whether the director raises any objection to the relevant matters of the Company
□ Yes √ No
During the reporting period, the directors did not raise any objection to the relevant matters of the Company.

4. Other descriptions of directors' performance of duties

Whether the directors' suggestions on the Company have been adopted
√ Yes □No
The director's statement on whether the relevant suggestions of the Company have been adopted or not
In 2021, the directors of the Company faithfully and diligently performed their corresponding duties in strict
accordance with the Company Law, Securities Law, Listing Rules for Stocks of Shenzhen Stock Exchange and other
relevant laws and regulations, as well as the Articles of Association and the Rules of Procedure of the Board of
Directors, paid close attention to the Company's standardized operation, production and management, carefully
reviewed the reports and related documents submitted by the Company, actively attended the Company's board
meetings, special committee meetings and general meeting of shareholders, carefully considered all proposals,
made professional, independent, objective and fair judgments, and put forward constructive opinions and
suggestions on the Company's development strategy, corporate governance and business decisions, which played an
important role in the Company's scientific decision-making and steady development. During the reporting period,
the Company's directors performed their duties diligently, honestly and faithfully, ensured scientific, timely and
efficient decision-making through continuous supervision and promotion of the implementation of the resolutions
of the Board of Directors, and earnestly protected the overall interests of the Company and the legitimate rights and
interests of minority shareholders.

VII. Situation of special committees under the Board of Directors during the reporting period


                                      Number                                       Put forward       Other
                                                                                                                 Details of
   Committee        Member              of                           Meeting        important      information
                                                Convening date                                                   objections
         name      information        meeting                        content       opinions and      of duty
                                                                                                                  (if any)
                                         s                                         suggestions    performance


- 68 -
                                                            Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


                                convene
                                  d

                                                                                    The            Audit
                                                                                    Committee
                                                                                    worked in strict
                                                                                    accordance      with
                                                                                    the        Company
                                                                                    Law,             the
                                                                                    regulatory rules of
                                                                                    China Securities
                                                                                    Regulatory
                                                                 1. It reviewed
                                                                                    Commission, the
                                                                 the     Proposal
                                                                                    Articles           of
                                                                 on the 2020
                                                                                    Association      and
                                          January 28,2021        Financial
                                                                                    other       relevant
                                                                 Final
                                                                                    regulations,
                                                                 Accounts Work
                                                                                    performed         its
                                                                 Plan.
                                                                                    duties     diligently
                                                                                    and
                                                                                    conscientiously,
                                                                                    and unanimously
 Audit          Sha Qilin,
                                                                                    passed            all
 Committee of   Shen Hongtao,
                                                                                    proposals
 the Ninth      Wang Xi, Ma           2
                                                                                    according to the
 Board of       Xiaoqian, Yin
                                                                                    actual situation of
 Directors      Zhongyu
                                                                                    the Company.

                                                                 1. It reviewed The                Audit
                                                                 the accounting Committee
                                                                 statements and worked in strict
                                                                 notes in the accordance            with
                                                                 2020      Annual the          Company
                                                                 Report and the Law,                 the
                                                                 2020               regulatory rules of
                                                                 Financial          China Securities
                                                                 Report; 2. It Regulatory
                                          March 25,2021
                                                                 reviewed     the Commission, the
                                                                 Proposal      on Articles             of
                                                                 the         2020 Association        and
                                                                 Annual             other       relevant
                                                                 Internal           regulations,
                                                                 Control            performed         its
                                                                 Evaluation         duties     diligently
                                                                 Report; 3. It and
                                                                 reviewed     the conscientiously,

- 69 -
                                                   Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


                                                        Proposal     on and unanimously
                                                        2021 Internal passed               all
                                                        Control            proposals
                                                        Self-evaluatio     according to the
                                                        n Work Plan; actual situation of
                                                        4. It reviewed the Company.
                                                        the    Proposal
                                                        on          2020
                                                        Annual      Risk
                                                        Management
                                                        Report; 5. It
                                                        reviewed     the
                                                        Proposal     on
                                                        Provision for
                                                        Impairment of
                                                        Assets; 6. It
                                                        reviewed     the
                                                        Proposal     on
                                                        Write-off     of
                                                        Assets; 7. It
                                                        reviewed     the
                                                        Proposal     on
                                                        Changes       of
                                                        Accounting
                                                        Policies; 8. It
                                                        reviewed     the
                                                        Proposal     on
                                                        Hiring       the
                                                        Company's
                                                        Annual
                                                        Auditing
                                                        Organization.

                                                        1. It reviewed The       Audit    and
                                                        the    Proposal Compliance
                                                        on        <2021 Committee
 Audit and                                              Semi-annual        worked in strict
 Compliance     Shen Hongtao,                           Financial          accordance    with
 Committee of   Li Baobing,                             Report>; 2. It the            Company
                                3 August 20,2021
 the Tenth      Wang Xi, Yin                            reviewed     the Law,             the
 Board of       Zhongyu                                 financial          regulatory rules of
 Directors                                              statements and China Securities
                                                        notes in the Regulatory
                                                        2021               Commission, the
                                                        Semi-annual        Articles        of


- 70 -
                       Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


                            Report.              Association      and
                                                 other       relevant
                                                 regulations,
                                                 performed         its
                                                 duties     diligently
                                                 and
                                                 conscientiously,
                                                 and unanimously
                                                 passed            all
                                                 proposals
                                                 according to the
                                                 actual situation of
                                                 the Company.

                                                 The      Audit   and
                            1. It reviewed
                                                 Compliance
                            the     Proposal
                                                 Committee
                            on ; 2. It
                                                 Law,              the
                            reviewed       the
                                                 regulatory rules of
                            financial
                                                 China Securities
                            statements      in
                                                 Regulatory
                            the         Third
                                                 Commission, the
                            Quarter
                                                 Articles           of
                            Report          in
         October 21,2021                         Association      and
                            2021;     3.    It
                                                 other       relevant
                            reviewed       the
                                                 regulations,
                            Proposal       on
                                                 performed         its
                            Amending the
                                                 duties     diligently
                            .
                                                 the Company.

                            1. It reviewed The            Audit   and
                            the     Proposal Compliance
                            on the Work Committee
         December 29,2021
                            Plan            of worked in strict
                            Financial            accordance       with
                            Final                the        Company

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                                                   Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


                                                        Accounts        in Law,               the
                                                        2021;     2.    It regulatory rules of
                                                        reviewed       the China Securities
                                                        Proposal       on Regulatory
                                                        ; 3. and
                                                        It reviewed the conscientiously,
                                                        2021      Annual and unanimously
                                                        Audit Report.        passed            all
                                                                             proposals
                                                                             according to the
                                                                             actual situation of
                                                                             the Company.

                                                                             The          Budget
                                                                             Committee
                                                                             worked in strict
                                                                             accordance      with
                                                                             the        Company
                                                                             Law,             the
                                                                             regulatory rules of
                                                                             China Securities
                                                        1. It reviewed
                                                                             Regulatory
                Wang Jin, Rao                           the Company's
                                                                             Commission, the
 Budget         Subo, Wen                               2020      Budget
                                                                             Articles           of
 Committee of   Lianhe, Zheng                           Implementatio
                                                                             Association      and
 the Ninth      Yunpeng, Li      1 March 25,2021        n Report; 2. It
                                                                             other       relevant
 Board of       Baobing, Liang                          reviewed       the
                                                                             regulations,
 Directors      Peilu, Shen                             Company's
                                                                             performed         its
                Hongtao                                 2021      Budget
                                                                             duties     diligently
                                                        Report.
                                                                             and
                                                                             conscientiously,
                                                                             and unanimously
                                                                             passed            all
                                                                             proposals
                                                                             according to the
                                                                             actual situation of
                                                                             the Company.



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                                                    Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


                                                                          The Nomination
                                                                          Committee
                                                                          worked in strict
                                                                          accordance      with
                                                                          the        Company
                                                                          Law,             the
                                                                          regulatory rules of
                                                         1. It reviewed China Securities
                                                         the   Proposal Regulatory
                                                         on               Commission, the
                                                         Recommendin Articles                of
                                                         g           Guo Association       and
                                    April 20,2021
                                                         Yongxiong as other           relevant
                                                         the     Deputy regulations,
                                                         General          performed         its
                                                         Manager       of duties     diligently
                                                         the Company.     and
                                                                          conscientiously,
                                                                          and unanimously
                Sha Qilin,                                                passed            all
 Nomination
                Zheng                                                     proposals
 Committee of
                Yunpeng,                                                  according to the
 the Ninth                      2
                Yanming, Ma                                               actual situation of
 Board of
                Xiaoqian, Yin                                             the Company.
 Directors
                Zhongyu                                  1. It reviewed The Nomination
                                                         the   Proposal Committee
                                                         on               worked in strict
                                                         Recommendin accordance           with
                                                         g Candidates the            Company
                                                         for              Law,             the
                                                         Non-independ regulatory rules of
                                                         ent   Directors China Securities
                                                         of the Tenth Regulatory
                                                         Board         of Commission, the
                                    July 6,2021
                                                         Directors; 2. It Articles           of
                                                         reviewed     the Association      and
                                                         Proposal      on other       relevant
                                                         Recommendin regulations,
                                                         g Candidates performed             its
                                                         for              duties     diligently
                                                         Independent      and
                                                         Directors     of conscientiously,
                                                         the         Tenth and unanimously
                                                         Board         of passed            all


- 73 -
                                                    Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


                                                         Directors; 3. It proposals
                                                         reviewed       the according to the
                                                         Proposal       on actual situation of
                                                         Recommendin the Company.
                                                         g     the    Tenth
                                                         Management
                                                         Team          and
                                                         Other       Senior
                                                         Managers.

                                                         1. It reviewed
                                                         the     Proposal The
                                                         on  and Regulatory
 and            Wang Xi, Li
                                                         Its Supporting Commission, the
 Assessment     Fangji, Mao
                                                         System; 2. It Articles                of
 Committee of   Qinghan, Ma         1 December 29,2021
                                                         reviewed       the Association      and
 the Tenth      Xiaoqian, Yin
                                                         .


VIII.The working status of the board of supervisors

The board of supervisors finds out whether the company has risks during the monitoring activities during the repo
rting period
□ Yes √ No
The Supervisory Committee has no objection to the supervision matters during the reporting period.

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                                                               Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


IX. Particulars about employees.

1.Number of staff, professional structure and educational background


 Number of in-service staff of the parent company(person)                                                               908

 Number of in-service staff of the main subsidiaries(person)                                                          7,833

 Total number of the in-service staff(person)                                                                         8,741

 Total number of staff receiving remuneration in the current
                                                                                                                        8,764
 period(person)

 The number of the parent company and the main subsidiary’s
                                                                                                                        3,151
 retired staffs who need to bear the cost(person)

                                                           Professional

                Classified according by Professions                               Number of persons(person)

                            Production                                                                                  4,987
                              Sales                                                                                       150

                            Technical                                                                                   1,890

                            Financial                                                                                     230

                          Administrative                                                                                1,484

 Total                                                                                                                  8,741

                                                               Education

          Classified according by education background                            Number of persons(person)

 Doctor                                                                                                                     2

 Master                                                                                                                   249

 Universities                                                                                                           4,230

 Colleges                                                                                                               2,493

 Technical secondary school                                                                                               402

 High school and Below                                                                                                  1,365

 Total                                                                                                                  8,741

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


- 75 -
                                                       Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


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

X. Specification of profit distribution and capitalizing of common reserves

Formulation, implementation or adjustment of the profit distribution policy, especially the cash dividend policy
during the reporting period
□ Applicable √Not applicable
During the reporting period, the Company made a profit and the profit available to shareholders of the parent
company was positive, but no cash dividend distribution plan was put forward.
□ Applicable √ Not applicable
Profit distribution and capitalization of capital reserve during the reporting period
□ Applicable √Not applicable
The Company Will not distribute cash dividend or bonus shares, neither capitalizing of common reserves.




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                                                      Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


XI. Implementation Situation of Stock Incentive Plan of the Company, Employee Stock Ownership Plan or
Other Employee Incentive Measures
□Applicable √ Not applicable
None

XII. Construction and implementation of internal control system during the reporting period

1. Construction and implementation of internal control
(I) Organization setup and operation
     The Company has established a perfect organizational structure system, and its corporate governance structure,
internal organization design and operation mechanism meet the requirements of modern enterprise system. The
Board of Directors of the Company shall bear the ultimate responsibility for the evaluation of internal control; The
Audit and Compliance Committee shall be responsible for organizing, leading and supervising the internal control
evaluation, reviewing the internal control evaluation report, and examining and approving the rectification opinions
of major and important defects in internal control. The management of the Company is responsible for organizing
the implementation of the internal control evaluation, proposing the business or matters that should be focused on in
the internal control evaluation, and examining and approving the internal control evaluation plan and the internal
control evaluation report.
     As the centralized department of internal control management, the Board Affairs Department of the Company is
responsible for organizing the internal control self-inspection, testing and evaluation in the Company, proposing
rectification schemes and specific rectification plans for the design and operation defects found, supervising the
completion of rectification, and cooperating with the internal audit department and external auditors to carry out
internal control evaluation at the enterprise level.
     The Board of Directors, the Audit and Compliance Committee, the management and functional departments of
the Company earnestly perform their duties of internal control and management. Every year, the Company conducts
a comprehensive self-evaluation on the effectiveness of the internal control system, timely corrects the internal
control defects, continuously optimizes the internal control system, and effectively improves the Company's
management level and risk prevention ability.
(II) Establishment and implementation of internal control system
    According to the Basic Standards for Internal Control of Enterprises and its supporting guidelines, Guideline
No.1 for Self-discipline Supervision of Listed Companies of Shenzhen Stock Exchange -Standardized Operation of
Listed Companies on Main Board, Listing Rules for Stocks of Shenzhen Stock Exchange and relevant laws and
regulations, combined with the actual situation of the Company, from the perspective of business management,
function management and post management, the Company formulates basic management systems including
financial accounting system, procurement system, asset management system, engineering project management
system, human resource management system, administrative management system, internal audit system, guarantee
management system, related party transaction system, investment and financing management system, and
subsidiary management system, to make decisions and management on major issues of the Company.
(III) Overall evaluation
    In 2021, the Company conscientiously implemented the national and industry laws and regulations, the latest
supervision standards and the regulatory standards and normative requirements of state-owned assets, constantly
improved the compliance of the standard system, and well ensured revising, improving and upgrading the internal
control system; strictly implemented the "three important and one major" system, standardized major
decision-making behaviors, effectively prevented decision-making risks, enhanced scientific decision-making and
avoided decision-making mistakes; carried out in-depth internal control self-evaluation, continuously strengthened
the rectification of internal control defects, formed an effective internal control management closed loop of
"control-evaluation-improvement-control", continuously and dynamically improved the internal control
management system, and ensured that the Company maintained effective internal control in all major aspects
according to the requirements of the enterprise internal control standard system and relevant regulations, and no
factors that affect the evaluation conclusion of internal control effectiveness would occur.




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                                                              Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


2.Details of major internal control defects found during the reporting period

□ Yes √ No

XIII. Management and control of the Company's subsidiaries during the reporting period

                                                                         Problems        Measures
                                                      Integration                                        Solution        Subsequent
 Company name              Integration plan                           encountered in     taken for
                                                       progress                                          progress     planned solution
                                                                        integration       solution
Tumushuke     Realized the holding of
                                                         Merge
Thermal Power Tumushuke Thermal Power Co.,                                  No         Not applicable Not applicable Not applicable
                                                       completed
Co., Ltd.     Ltd. through capital increase.
Guangdong          Acquired 51% equity of
Shajiao ( Plant C) Guangdong Shajiao ( Plant C)          Merge
                                                                            No         Not applicable Not applicable Not applicable
Power Generation Power Generation Co., Ltd. in         completed
Co., Ltd.          cash.
Guangdong          Acquired 90% equity of
Yudean    Yunhe    Guangdong Yudean Yunhe                Merge
                                                                            No         Not applicable Not applicable Not applicable
Power Generation   Power Generation Co., Ltd. in       completed
Co., Ltd.          cash.
Guangdong
                Acquired 51% equity of
Yuehua    Power                                          Merge
                Guangdong Yuehua Power                                      No         Not applicable Not applicable Not applicable
Generation Co.,                                        completed
                Generation Co., Ltd. in cash.
Ltd.


XIV.Internal control self-evaluation report or internal control audit report

1.Self-evaluation report on internal control
 Disclosure date of appraisal report on
                                              April 22,2022
 internal control
 Disclosure index of appraisal report on      Juchao Website:(http://www.cninfo.com.cn), Self-evaluation report of internal
 internal control                             control in 2021
 The ratio of the total assets of units
 included in the scope of evaluation
 accounting for the total assets on the                                                                                         86%
 company's consolidated financial
 statements
 The ratio of the operating income of
 units included in the scope of evaluation
 accounting for the operating income on                                                                                      89.33%
 the company's consolidated financial
 statements
                                                  Standards of Defects Evaluation
                   Category                                Financial Report                           Non-financial Report
                                              Qualitative criteria of evaluation towards     Qualitative criteria of evaluation
                                              inner control deficiency of financial report   towards inner control deficiency of
                                              made by company are as follows: Ⅰ, the        non-financial report made by company
                                              inner control of financial report should be    are as follows: ①           significant
                                              considered as “significant deficiency” if    deficiency means one or more
                                              the following circumstances (including but     combinations of control deficiency
                                              not limited to) occurred: ① the               which may result in seriously deviating
 Qualitative criteria
                                              ineffective environmental control; ②          from control goals. ②           serious
                                              irregularities appearing between company       deficiency means one or more
                                              directors, supervisors and senior              combinations of control deficiency
                                              executives; ③ serious mistakes in the         whose severity and financial result are
                                              financial statements of the current period     less than those of significant
                                              found by external audit but not the inner      deficiency with possibility of deviating
                                              control in the process of operating; ④        company from its control goals. ③

- 78 -
                                                             Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


                                            ineffective supervision of inner control         common deficiency means other
                                            from directorate and inner audit                 control deficiencies apart from
                                            institution. Ⅱ, the inner control of            significant and serious deficiencies.
                                            financial report should be considered as
                                            “serious deficiency” if the following
                                            circumstances occurred: ① accounting
                                            policy chosen and applied is not based on
                                            the GAAP; ② anti-irregularity procedure
                                            and control measures are not established;
                                            ③ very few relative control measures are
                                            established or implemented in terms of the
                                            accounting treatment related to
                                            unconventional or special transaction; ④
                                            one or more deficiencies exist in the
                                            control process of final financial report
                                            and the authenticity, accuracy and integrity
                                            of establishment can not be assured
                                            reasonably. Ⅲ common deficiency
                                            means, apart from the above “significant
                                            deficiency” and “serious deficiency”, other
                                            deficiencies exist in the inner control
                                            process.
                                            A quantitative criterion regards operating
                                            receipt and gross value of assets as its yard
                                            stick. ① inner control deficiency may
                                            lead to loss related to profit statement,
                                            which is measured by operating receipt.
                                            The amount of misstatement in financial
                                            report resulted from the control deficiency
                                            or its combination is less than 0.5 percent
                                            of the operating receipt, which could be
                                            considered as the common deficiency.
                                            That would be considered as serious
                                            deficiency if the amount of misstatement
                                            in financial report resulted from the
                                            control deficiency or its combination is         ①the significant deficiency means that
                                            more than 0.5 percent but less than 1            the direct property loss is between 50
                                            percent of the operating receipt. And that       million yuan .(2) the significant
 Quantitative standard                      would be regarded as significant                 deficiency means hat the direct
                                            deficiency if that is more than 1 percent of     property loss is between 30 million
                                            the operating receipt. ② inner control          yuan (including 30 million yuan) ; the
                                            deficiency may lead to loss related to           serious deficiency means that the
                                            assets management, which is measured by          direct property loss is between 30
                                            total assets. The amount of misstatement         million.
                                            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
                                                                                                                                  0
 financial reporting (a)
 Number of important defects in financial
                                                                                                                                  0
 reporting(a)


- 79 -
                                                              Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


 Number of important defects in non
                                                                                                                                 0
 financial reporting(a)

2. 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 2021 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 22,2022
 internal control (full-text)
 Internal audit report’s opinion     Juchao Website: (http://www.cninfo.com.cn)2021 Audit report of internal control
 Type of audit report on internal
                                      Unqualified auditor’s report
 control
 Whether there is significant
                                      No
  defect in 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. 2021 Annual Report




XV. Rectification of self-examination problems in special governance actions of listed companies

During the reporting period, according to the spirit of the Notice on Launching Special Actions for Corporate
Governance of Listed Companies (ZJHGG [2020] No.69) issued by China Securities Regulatory Commission and
other documents, the Company completed the special self-examination in an all-round way according to the list of
special self-examination for corporate governance of listed companies. Through this self-examination, it is
considered that the corporate governance of the Company as a whole conforms to the requirements of the Company
Law, the Corporate Governance Standards for Listed Companies and other laws and regulations, and the corporate
governance structure is relatively complete, with a clear division of labor and standardized operation.
The existing problems and rectification of the Company are as follows:

1. The Board of Directors of the Company has not been changed.
Rectification: The Ninth Board of Directors of the Company expired on September 18, 2020. In view of the fact that
the nomination of candidates for the new Board of Directors had not been completed, and considering the stable
operation of the Board of Directors and the normal development of the Company's business activities during the
COVID-19, the change of the Board of Directors of the Company was postponed. The Board of Directors and the
Board of Supervisors of the Company have been re-elected on August 2, 2021.

2. The meeting of the Board of Supervisors was not recorded in writing.
Rectification: Since 2021, the Company has made written minutes of all on-site meetings of the Board of
Supervisors.

3. The number of times that individual directors have not attended the board meeting in person for twelve
consecutive months exceeded half of the total number of board meetings during the period.
Rectification: The Company has timely reported the problems found in self-examination to the directors, and further
strengthened the coordination arrangement of board meetings and other measures to improve the attendance rate of
directors in person. The attendance of Company directors at the meeting in 2021 met the relevant requirements of
the standard operation guidelines of listed companies.

4. Individual directors failed to attend the board meeting in person for two consecutive times.
Rectification: The Company has timely reported the problems found in self-examination to the directors, and further
strengthened the coordination arrangement of board meetings and other measures to improve the attendance rate of
directors in person. In 2021, the directors did not fail to attend the board meeting in person for two consecutive
times.

5. Individual independent directors have served continuously for more than six years.
Rectification: The Company has completed the general election of the Board of Directors and the Board of
Supervisors on August 2, 2021, and the continuous tenure of the new independent directors complies with relevant
regulations.

6. The on-site working time of independent directors was less than 10 working days.
Rectification: The Company has strengthened the coordination arrangement, actively planned the on-site work of
independent directors, and participated in the daily detailed management of the Company by inviting independent
directors to attend performance briefings, conducting training, going to subsidiaries for survey and other measures.
In 2021, the on-site working hours of independent directors of the Company have met the relevant requirements.

7. If the related party occupied or transferred the Company's funds, assets or other resources, causing losses or

- 81 -
                                                             Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


possible losses to the listed company, there was no accountability mechanism for relevant personnel.
Rectification: The Company has revised the Management System for Related Party Transactions of Guangdong
Electric Power Development Co., Ltd., and established the accountability mechanism for relevant personnel, which
was approved and implemented by the Fourth Extraordinary General Meeting of Shareholders in 2021 held on
October 25, 2021.

                                        V. Environmental & Social Responsibility

I. Significant environmental issues
Whether the Company or any of its subsidiaries is identified as a key polluter by the environment authorities
√ Yes □ No
               Main
                                                                              Implement
 Company       pollutant                           Emission
                                        Emission                  Emission    ed                       Verified   Excessive
 or            and         Emission                port                                     Total
                                        port                      concentrati pollutant                total      emission
 subsidiary    specific    way                     distribution                             emission
                                        number                    on          emission                 emission   condition
 name          pollutant                           condition
                                                                              standards
               name

                                                                              Emission
                                                                              Standard of
                                                                              Air
                           Concentrat
                                                                              Pollutants
 Shajiao A                 ed
                                                   Within the                 for                      Not
 power         Smoke       emission     1                         1.14                      17.84                 No
                                                   factory                    Thermal                  approved
 plant                     through
                                                                              Power
                           chimney
                                                                              Plants
                                                                              (GB13223-
                                                                              2011)

                                                                              Emission
                                                                              Standard of
                                                                              Air
                           Concentrat
                                                                              Pollutants
 Shajiao A                 ed
                                                   Within the                 for                      Not
 power         SO2         emission     1                         17.8                      278.54                No
                                                   factory                    Thermal                  approved
 plant                     through
                                                                              Power
                           chimney
                                                                              Plants
                                                                              (GB13223-
                                                                              2011)

                                                                              Emission
                           Concentrat                                         Standard of
 Shajiao A                 ed                                                 Air
                                                   Within the                                          Not
 power         NOX         emission     1                         29.62       Pollutants    463.57                No
                                                   factory                                             approved
 plant                     through                                            for
                           chimney                                            Thermal
                                                                              Power

- 82 -
                                                 Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


                                                                  Plants
                                                                  (GB13223-
                                                                  2011)

                                                                  Emission
                                                                  Standard of
                                                                  Air
 Guangdong            Concentrat
                                                                  Pollutants
 Yudean               ed
                                       Within the                 for
 Bohe         Smoke   emission     2                  2.07                      42.69     72          No
                                       factory                    Thermal
 Energy               through
                                                                  Power
 Co., Ltd.            chimney
                                                                  Plants
                                                                  (GB13223-
                                                                  2011)

                                                                  Emission
                                                                  Standard of
                                                                  Air
 Guangdong            Concentrat
                                                                  Pollutants
 Yudean               ed
                                       Within the                 for
 Bohe         SO2     emission     2                  10.2                      218.41    974         No
                                       factory                    Thermal
 Energy               through
                                                                  Power
 Co., Ltd.            chimney
                                                                  Plants
                                                                  (GB13223-
                                                                  2011)

                                                                  Emission
                                                                  Standard of
                                                                  Air
 Guangdong            Concentrat
                                                                  Pollutants
 Yudean               ed
                                       Within the                 for
 Bohe         NOX     emission     2                  33.45                     699.82    1195        No
                                       factory                    Thermal
 Energy               through
                                                                  Power
 Co., Ltd.            chimney
                                                                  Plants
                                                                  (GB13223-
                                                                  2011)

                                                                  Emission
                                                                  Standard of
 Guangdong                                                        Air
                      Concentrat
 Yudean                                                           Pollutants
                      ed
 Dapu                                  Within the                 for
              Smoke   emission     2                  1.12                      33.348    593         No
 Power                                 factory                    Thermal
                      through
 Generation                                                       Power
                      chimney
 Co., Ltd.                                                        Plants
                                                                  (GB13223-
                                                                  2011)


- 83 -
                                                 Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


                                                                  Emission
                                                                  Standard of
 Guangdong                                                        Air
                      Concentrat
 Yudean                                                           Pollutants
                      ed
 Dapu                                  Within the                 for
              SO2     emission     2                  13.47                     400.825   1447        No
 Power                                 factory                    Thermal
                      through
 Generation                                                       Power
                      chimney
 Co., Ltd.                                                        Plants
                                                                  (GB13223-
                                                                  2011)

                                                                  Emission
                                                                  Standard of
 Guangdong                                                        Air
                      Concentrat
 Yudean                                                           Pollutants
                      ed
 Dapu                                  Within the                 for
              NOX     emission     2                  36.53                     1087.3    1502        No
 Power                                 factory                    Thermal
                      through
 Generation                                                       Power
                      chimney
 Co., Ltd.                                                        Plants
                                                                  (GB13223-
                                                                  2011)

                                                                  Emission
                                                                  Standard of
                                                                  Air
 Guangdong            Concentrat
                                                                  Pollutants
 Red Bay              ed
                                       Within the                 for                     Not
 Power        Smoke   emission     4                  2.13                      98.9                  No
                                       factory                    Thermal                 approved
 General              through
                                                                  Power
 Co., ltd.            chimney
                                                                  Plants
                                                                  (GB13223-
                                                                  2011)

                                                                  Emission
                                                                  Standard of
                                                                  Air
 Guangdong            Concentrat
                                                                  Pollutants
 Red Bay              ed
                                       Within the                 for                     Not
 Power        SO2     emission     4                  9.61                      489.46                No
                                       factory                    Thermal                 approved
 General              through
                                                                  Power
 Co., ltd.            chimney
                                                                  Plants
                                                                  (GB13223-
                                                                  2011)

 Guangdong            Concentrat                                  Emission
                                       Within the                                         Not
 Red Bay      NOX     ed           4                  33.28       Standard of 1614.62                 No
                                       factory                                            approved
 Power                emission                                    Air


- 84 -
                                                 Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


 General              through                                     Pollutants
 Co., ltd.            chimney                                     for
                                                                  Thermal
                                                                  Power
                                                                  Plants
                                                                  (GB13223-
                                                                  2011)

                                                                  Emission
                                                                  Standard of
 Guangdong                                                        Air
                      Concentrat
 Yudean                                                           Pollutants
                      ed
 Jinghai                               Within the                 for
              Smoke   emission     4                  2.6                       173.11    1770        No
 Power                                 factory                    Thermal
                      through
 Generation                                                       Power
                      chimney
 Co., Ltd.                                                        Plants
                                                                  (GB13223-
                                                                  2011)

                                                                  Emission
                                                                  Standard of
 Guangdong                                                        Air
                      Concentrat
 Yudean                                                           Pollutants
                      ed
 Jinghai                               Within the                 for
              SO2     emission     4                  19.34                     1289.35   6502        No
 Power                                 factory                    Thermal
                      through
 Generation                                                       Power
                      chimney
 Co., Ltd.                                                        Plants
                                                                  (GB13223-
                                                                  2011)

                                                                  Emission
                                                                  Standard of
 Guangdong                                                        Air
                      Concentrat
 Yudean                                                           Pollutants
                      ed
 Jinghai                               Within the                 for
              NOX     emission     4                  35.87                     2392.14   4687        No
 Power                                 factory                    Thermal
                      through
 Generation                                                       Power
                      chimney
 Co., Ltd.                                                        Plants
                                                                  (GB13223-
                                                                  2011)

 Guangdong                                                        Emission
                      Concentrat
 Energy                                                           Standard of
                      ed
 Maoming                               Within the                 Air
              Smoke   emission     2                  1.53                      32.15     168.12      No
 thermal                               factory                    Pollutants
                      through
 power                                                            for
                      chimney
 plant Co.,                                                       Thermal


- 85 -
                                                 Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


 Ltd.                                                             Power
                                                                  Plants
                                                                  (GB13223-
                                                                  2011)

                                                                  Emission
                                                                  Standard of
 Guangdong
                                                                  Air
 Energy               Concentrat
                                                                  Pollutants
 Maoming              ed
                                       Within the                 for
 thermal      SO2     emission     2                  13.16                     303.19    385.51      No
                                       factory                    Thermal
 power                through
                                                                  Power
 plant Co.,           chimney
                                                                  Plants
 Ltd.
                                                                  (GB13223-
                                                                  2011)

                                                                  Emission
                                                                  Standard of
 Guangdong
                                                                  Air
 Energy               Concentrat
                                                                  Pollutants
 Maoming              ed
                                       Within the                 for
 thermal      NOX     emission     2                  25.93                     609.67    689.58      No
                                       factory                    Thermal
 power                through
                                                                  Power
 plant Co.,           chimney
                                                                  Plants
 Ltd.
                                                                  (GB13223-
                                                                  2011)

                                                                  Emission
                                                                  Standard of
 Guangdong
                                                                  Air
 Huizhou              Concentrat
                                                                  Pollutants
 Pinghai              ed
                                       Within the                 for
 Power        Smoke   emission     2                  2.48                      92.87     700         No
                                       factory                    Thermal
 Generation           through
                                                                  Power
 Plant Co.,           chimney
                                                                  Plants
 Ltd.
                                                                  (GB13223-
                                                                  2011)

                                                                  Emission
 Guangdong                                                        Standard of
 Huizhou              Concentrat                                  Air
 Pinghai              ed                                          Pollutants
                                       Within the
 Power        SO2     emission     2                  22.26       for           824.5     1670        No
                                       factory
 Generation           through                                     Thermal
 Plant Co.,           chimney                                     Power
 Ltd.                                                             Plants
                                                                  (GB13223-


- 86 -
                                                 Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


                                                                  2011)

                                                                  Emission
                                                                  Standard of
 Guangdong
                                                                  Air
 Huizhou              Concentrat
                                                                  Pollutants
 Pinghai              ed
                                       Within the                 for
 Power        NOX     emission     2                  38.7                      1375.85   2423        No
                                       factory                    Thermal
 Generation           through
                                                                  Power
 Plant Co.,           chimney
                                                                  Plants
 Ltd.
                                                                  (GB13223-
                                                                  2011)

                                                                  Emission
                                                                  Standard of
 Guangdong                                                        Air
                      Concentrat
 Shaoguan                                                         Pollutants
                      ed
 Yuejiang                              Within the                 for
              Smoke   emission     2                  1.89                      61.58     717.78      No
 Power                                 factory                    Thermal
                      through
 Generation                                                       Power
                      chimney
 Co., Ltd.                                                        Plants
                                                                  (GB13223-
                                                                  2011)

                                                                  Emission
                                                                  Standard of
 Guangdong                                                        Air
                      Concentrat
 Shaoguan                                                         Pollutants
                      ed
 Yuejiang                              Within the                 for
              SO2     emission     2                  18.66                     607.84    2303.55     No
 Power                                 factory                    Thermal
                      through
 Generation                                                       Power
                      chimney
 Co., Ltd.                                                        Plants
                                                                  (GB13223-
                                                                  2011)

                                                                  Emission
                                                                  Standard of
 Guangdong                                                        Air
                      Concentrat
 Shaoguan                                                         Pollutants
                      ed
 Yuejiang                              Within the                 for
              NOX     emission     2                  36.09                     1175.65   2809.07     No
 Power                                 factory                    Thermal
                      through
 Generation                                                       Power
                      chimney
 Co., Ltd.                                                        Plants
                                                                  (GB13223-
                                                                  2011)

 Guangdong            Concentrat       Within the                 Emission
              Smoke                1                  1.82                      19.15     360         No
 Yudean               ed               factory                    Standard of

- 87 -
                                                 Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


 Power                emission                                    Air
 Generation           through                                     Pollutants
 Co., Ltd.            chimney                                     for
                                                                  Thermal
                                                                  Power
                                                                  Plants
                                                                  (GB13223-
                                                                  2011)

                                                                  Emission
                                                                  Standard of
                                                                  Air
 Guangdong            Concentrat
                                                                  Pollutants
 Yudean               ed
                                       Within the                 for
 Power        SO2     emission     1                  9.37                      112.3     2400        No
                                       factory                    Thermal
 Generation           through
                                                                  Power
 Co., Ltd.            chimney
                                                                  Plants
                                                                  (GB13223-
                                                                  2011)

                                                                  Emission
                                                                  Standard of
                                                                  Air
 Guangdong            Concentrat
                                                                  Pollutants
 Yudean               ed
                                       Within the                 for
 Power        NOX     emission     1                  35.31                     419.93    2400        No
                                       factory                    Thermal
 Generation           through
                                                                  Power
 Co., Ltd.            chimney
                                                                  Plants
                                                                  (GB13223-
                                                                  2011)

                                                                  Emission
                                                                  Standard of
                                                                  Air
                      Concentrat
 Zhanjiang                                                        Pollutants
                      ed
 Electric                              Within the                 for
              Smoke   emission     2                  1                         28        28          No
 Power Co.,                            factory                    Thermal
                      through
 Ltd.                                                             Power
                      chimney
                                                                  Plants
                                                                  (GB13223-
                                                                  2011)

                      Concentrat                                  Emission
 Zhanjiang
                      ed                                          Standard of
 Electric                              Within the
              SO2     emission     2                  15          Air           427       427         No
 Power Co.,                            factory
                      through                                     Pollutants
 Ltd.
                      chimney                                     for


- 88 -
                                                 Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


                                                                  Thermal
                                                                  Power
                                                                  Plants
                                                                  (GB13223-
                                                                  2011)

                                                                  Emission
                                                                  Standard of
                                                                  Air
                      Concentrat
 Zhanjiang                                                        Pollutants
                      ed
 Electric                              Within the                 for
              NOX     emission     2                  35                        997       997         No
 Power Co.,                            factory                    Thermal
                      through
 Ltd.                                                             Power
                      chimney
                                                                  Plants
                                                                  (GB13223-
                                                                  2011)

                                                                  Emission
                                                                  Standard of
                                                                  Air
                      Concentrat
 Zhanjiang                                                        Pollutants
                      ed
 Zhongyue                              Within the                 for
              Smoke   emission     2                  1.2                       16        480         No
 Energy                                factory                    Thermal
                      through
 Co., Ltd.                                                        Power
                      chimney
                                                                  Plants
                                                                  (GB13223-
                                                                  2011)

                                                                  Emission
                                                                  Standard of
                                                                  Air
                      Concentrat
 Zhanjiang                                                        Pollutants
                      ed
 Zhongyue                              Within the                 for
              SO2     emission     2                  15.39                     209.32    1200        No
 Energy                                factory                    Thermal
                      through
 Co., Ltd.                                                        Power
                      chimney
                                                                  Plants
                                                                  (GB13223-
                                                                  2011)

                                                                  Emission
                                                                  Standard of
                      Concentrat
 Zhanjiang                                                        Air
                      ed
 Zhongyue                              Within the                 Pollutants
              NOX     emission     2                  25.11                     373.22    1587        No
 Energy                                factory                    for
                      through
 Co., Ltd.                                                        Thermal
                      chimney
                                                                  Power
                                                                  Plants


- 89 -
                                                         Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


                                                                          (GB13223-
                                                                          2011)

                                                                          Emission
                                                                          Standard of
                                                                          Air
 Shenzhen               Concentrat
                                                                          Pollutants
 Guangqian              ed
                                               Within the                 for
 Electric     NOX       emission     3                        11.28                     167.77    1312.5      No
                                               factory                    Thermal
 Power Co.,             through
                                                                          Power
 Ltd.                   chimney
                                                                          Plants
                                                                          (GB13223-
                                                                          2011)

                                                                          Emission
                                                                          Standard of
                                                                          Air
 Huizhou                Concentrat
                                                                          Pollutants
 Natural                ed
                                               Within the                 for
 Gas Power Smoke        emission     6                        0.28                      9.619     242.61      No
                                               factory                    Thermal
 Generation             through
                                                                          Power
 Co., Ltd.              chimney
                                                                          Plants
                                                                          (GB13223-
                                                                          2011)

                                                                          Emission
                                                                          Standard of
                                                                          Air
 Huizhou                Concentrat
                                                                          Pollutants
 Natural                ed
                                               Within the                 for
 Gas Power NOX          emission     6                        25.04                     1091      1774.98     No
                                               factory                    Thermal
 Generation             through
                                                                          Power
 Co., Ltd.              chimney
                                                                          Plants
                                                                          (GB13223-
                                                                          2011)

                                                                          Emission
                                                                          Standard of
                                                                          Air
 Guangdong              Concentrat
                                                                          Pollutants
 Yuehua                 ed
                                               Within the                 for
 Power        NOX       emission     2                        37.995                    645.456   1367.55     No
                                               factory                    Thermal
 Generation             through
                                                                          Power
 Co., Ltd.              chimney
                                                                          Plants
                                                                          (GB13223-
                                                                          2011)

Prevention and control of pollution facilities construction and operation

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                                                     Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


During the reporting period, firstly, the Company fulfilled its environmental responsibility according to laws and
regulations, established a sound environmental management system and mechanism and an emergency
management mechanism for environmental emergencies, and integrated the green and low-carbon concept into the
process of power plant design, construction and operation. All emission indicators were better than the industry
average. Secondly, it actively responded to the national call of "energy saving and emission reduction", actively
promoted energy-saving transformation such as steam turbine through-flow transformation, comprehensively
reduced energy consumption and carbon dioxide emissions, strived to fulfill the requirements of green and
low-carbon development, and contributed to the response to climate change. Thirdly, it completed the clear water
project in an all-round way. In 2021, the water consumption per unit of power generation decreased by 22%
compared with that in 2020, with significant water-saving effect.
According to the national environmental protection plan, all the power plants affiliated to the Company actively
responded to the policy documents such as the Notice on the General Division of the National Energy
Administration on Decomposition and Implementation of the Target and Task of Energy Saving and Emission
Reduction Upgrading and Renovation of Coal-fired Power, continued to implement the energy saving and emission
reduction requirements such as the Action Plan for Energy Saving and Emission Reduction Upgrading and
Renovation of Coal-fired Power (2014-2020), and actively promoted projects such as the renovation of replacing
liquid ammonia by urea, through-flow renovation and zero wastewater discharge.
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.

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%.


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                                                       Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


Administrative penalties for environmental problems during the reporting period
                                                                               Impact on the
 Company or         Reason of                                      Punishme    production and         Company's rectification
                                       Violation of regulations
 subsidiary name    punishment                                     nt result   operation of listed    measures
                                                                               companies

                                       Violation of the relevant
                                                                                                      In September 2022, the
                    Dayakou Power      provisions of the
                                                                   A fine of   Increase the risk of   environmental protection
 Lincang Yudean     Plant "put into    Management Regulations
                                                                   RMB         environmental          acceptance of Dayakou
 Energy Co., Ltd.   operation before   on Environmental
                                                                   200,000     supervision            Power Plant will
                    acceptance"        Protection of
                                                                                                      complete.
                                       Construction Projects

Other environmental information that should be disclosed

None.
Other environmental protection related information

√ Applicable □ Not applicable
In 2021, the Company added 12 new wind power projects with a total installed capacity of 1,361,200 kilowatts,
which was expected to contribute about 3,334 million kilowatt-hours of clean energy every year, saving about
1,050,500 tons of standard coal and 2,768,000 tons of carbon dioxide emissions, which was equivalent to
rebuilding 7,000 hectares of forest, and was of great significance to optimize the regional energy structure and
layout and promote the Company to build a clean, low-carbon, safe and efficient energy system. Meanwhile, the
Company actively promoted the high-quality development of coal-fired power, actively carried out energy-saving
and carbon-reducing transformation, formulated an energy-saving and efficiency-enhancing action plan, planned
the through-flow transformation of 11 steam turbines of 600,000 kilowatts or above, and strove to reduce the coal
consumption of coal-fired power units. In 2021, the feasibility study of the through-flow transformation of four
steam turbines has been completed, and the transformation is planned to be completed by the end of 2023, and
other units will be completed by the end of 2025. After the transformation, each unit is expected to save 10 g/kWh
of coal.


The Company shall comply with the disclosure requirements of power-related industries in the Guideline No.3 for
Self-regulation of Listed Companies of Shenzhen Stock Exchange-Industry Information Disclosure.
1. The Company strictly abides by the Environmental Protection Law of the People's Republic of China, Air
Pollution Prevention Law of the People's Republic of China, Water Pollution Prevention Law of the People's
Republic of China and Law of the People's Republic of China on Prevention and Control of Environmental
Pollution by Solid Waste, and the current environmental protection policies and regulations have no impact on the
Company. In 2021, the operating expenses required by the Company's thermal power plants to implement
environmental protection policies and regulations are mainly to purchase limestone and denitration materials,
totaling about RMB 325.3219 million.
2. In 2021, according to the standard, the coal consumption for comprehensive power supply of the Company's
thermal power plants is 303.31 g/kWh of coal, the sulfur dioxide emission performance value is 0.049g/kWh,
nitrogen oxide emission performance value is 0.123g/kWh, and soot emission performance value is 0.006g/kWh.
Where, the commissioning rate of desulfurization device is 100%, and the average desulfurization efficiency is


- 92 -
                                                         Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


99.15%; The average operation rate of denitration device is 99.87%, and the average denitration efficiency is
89.10%; The average operation rate of wet electric dust removal is 100%, and the average dust removal efficiency
is 99.83%.

II. Social responsibilities

         For details of the Company's social responsibility report, please refer to the Social Responsibility Report 2021
published by the Company on CNINF (http://www.cninfo.com.cn)

III. Consolidate and expand the achievements of poverty alleviation and rural revitalization

During the reporting period, the Company closely followed the spirit of Opinions of the CPC Central Committee
and the State Council on Consolidating and Expanding the Achievements of Poverty Alleviation and Limited
Linking with Rural Revitalization, thoroughly implemented the decision-making arrangements and work
requirements of the Guangdong Provincial Party Committee and Provincial Government, and actively organized
manpower, financial resources and material resources to invest in the consolidation and expansion of poverty
alleviation and rural revitalization. Its subsidiaries, such as Yuejiang Company, Maoming Power Plant, Zhanjiang
Company and Dabu Company, did a solid job in the linking poverty alleviation with rural revitalization, earnestly
implemented the Provincial Party Committee and the provincial government, and started a new journey of helping
the town and the village.

I) Counterpart assistance of Yuejiang Company on Mi Xiashui village, Quan’an Town, Nan Xiong City

Yuejiang Power Generation Company closely adhered to the work target of 2021, and worked in a solid and orderly
manner. First, consolidate the effectiveness of poverty alleviation. In 2020, 97 people from 39 households were
lifted out of poverty in Mixiashui Village, and the withdrawal rate of poverty alleviation reached 100%, on the basis
that the relatively poor villages were lifted out of poverty. In accordance with the working principle of "poverty
alleviation based on policy and responsibilities", it continued to understand and track the production and living
conditions of poverty-stricken households in Mixiashui Village, implemented the basic requirements of "one
household, one policy", and consolidated the effect of poverty alleviation. Meanwhile, it started the early warning
mechanism for the rural people with relative difficulties, timely understood and reported the production and living
conditions of the people with relative difficulties, formulated targeted assistance measures, and implemented the
assistance effectiveness. Second, well ensure the archiving of poverty alleviation files. According to the
requirements, the household files, documents, construction and other data were sorted out and improved, which
were accepted and filed by the archives in early June 2021. Third, do a good job in linking poverty alleviation with
rural revitalization. According to the requirements, it sorted out and improved the relevant ledgers of poverty
alleviation funds, poverty alleviation assets, industrial poverty alleviation and asset income, completed the
handover and ensured effective linking of poverty alleviation with rural revitalization.

II).Assistance provided by Maoming Power Plant to Xinbei Village, Shalang Town, Dianbai District, Maoming
City

In 2020, the per capita disposable income of 16 households of poverty alleviation under targeted assistance of
Maoming Power Plant was RMB 16,200, which exceeded the annual per capita disposable income standard of
RMB 8,951 for poor households with labor in poverty-stricken villages in 2020, achieving poverty alleviation. In
the first half of 2021, the annual income of the above 16 households of poverty alleviation has reached the poverty
alleviation standards, with no sign of returning to poverty, which has continuously consolidated the work

- 93 -
                                                       Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


achievements in 2020. In addition, Maoming Power Plant sent personnel to participate in the poverty relief team
in Xinbei Village and won the honor of "Guangdong Advanced Collective for Poverty Alleviation".

III). Counterpart assistance of Zhanjiang Company on Waiyuan Village, Nanxing Town, Leizhou City

Since the poverty relief team of Zhanjiang Company went to Waiyuan Village Committee for poverty relief in
May 2016, the poverty relief team has carried out five poverty relief projects for poor households, so that poor
households will have a certain stable income in the next 20 years. Currently, all the five poverty relief projects
have produced benefits, and all the benefits have been distributed to poor households.
After five years' efforts, by December 2020, the per capita income of the original poor households (78 households
of 219 people, including 34 households with labor ability of 153 people and 44 households without labor ability of
66 people) increased from RMB 3,200 in 2015 to RMB 12,818 in 2020. Now, 100% of all poor households in
Waiyuan Village Committee have reached the poverty alleviation standard, with no sign of returning to poverty.
The poverty relief team of Zhanjiang Company has left Waiyuan Village and rushed to Xilian Town, Xuwen
County to carry out rural revitalization work.

IV). Counterpart assistance of Dapu Company on Xiamu Village, Fenglang Town, Dapu County, Meizhou City

In the first half of 2021, Dapu Power Generation Company continued to send party building instructors to help
Xiamu Village, Fenglang Town, Dapu County, Meizhou City. Party building instructors played the role of "Head
Goose Project", focused on solving the hot and difficult issues such as policy propaganda for benefiting the people,
practical handling of people's livelihood, mediation of contradictions and disputes, effectively improved the
production and living conditions of poor people, and effectively boosted Xiamu Village in poverty alleviation.
They further innovated and created the characteristics of village party building, created a strong learning
atmosphere for party members, always reminded the majority of party members and cadres to devote themselves
to the construction of new countryside with full work enthusiasm, and contributed to the development of party
building to boost rural revitalization, win the tough fight of poverty alleviation and achieve the well-off goal. By
June 30, 2021, there were 67 poor households (including 41 low-income poor households, 15 poor households
with five guarantees and 11 general poor households), and 138 poor people, all of whom had been lifted out of
poverty stably.

V). Counterpart assistance of Zhanjiang Wind Power Co., Ltd. on Houhai Village, Xinliao Town, Xuwen County

Zhanjiang Wind Power Company has successfully completed the task of poverty alleviation. On June 23, at the
summary and commendation meeting of poverty alleviation in Guangdong Province, the poverty relief team of
Zhanjiang Wind Power Company in Houhai Village, Xinliao Town, Xuwen County won the advanced collective
honor of poverty alleviation in Guangdong Province. According to the relevant arrangements of government
departments for rural revitalization, Zhanjiang Wind Power Company will send two cadres to Jinhe Town, Xuwen
County in July 2021 to carry out assistance work in the town, continue to shoulder corporate social responsibility
and help rural revitalization.

VI). Yunhe Power Generation Company's assistance counterpart: Hebang Village, Fulin Town

The overall work of poverty alleviation in Hebang Village was successfully handed over on May 25, 2021 (8
important handover accounts), which indicated that after the Company won a major victory in helping Hebang
Village resolutely win poverty alleviation battle at the end of last year, the "eight-owned" indicators of poverty
alleviation households in the whole village were further improved, industrial employment was stable, and the
income dividends of poverty alleviation projects were steadily increased. In 2021, all indicators rose steadily, and all


- 94 -
                                                      Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


29 poverty alleviation households in the whole village achieved stable poverty alleviation, obtaining the final
overall victory in the fight against poverty.

VII). Zhanjiang Electric Power Company took measures to help rural revitalization

In 2021, Zhanjiang Electric Power Company raised a total of RMB 740,000 of rural revitalization assistance funds,
and purchased assistance products totaling RMB 398,000 on Guangdong Province Consumer Assistance Public
Service Platform (online) and in Zhanjiang Leizhou Shuxiang Planting and Breeding Professional Cooperative
(offline). Focusing on the four aspects of industrial prosperity, ecological livability, rural civilization and life
affluence, the first stage of rural revitalization was carried out and completed, including the appearance renovation
(renovation of the overall facade style, roads and lighting system, construction of rain and sewage separation
system), construction of public cultural facilities (renovation of the party-masses service center, cultural building
and fitness square), etc.




- 95 -
                                                      Guangdong Electric Power Development Co., Ltd. 2021 Annual Report




                                               VI. Important Events




I. 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.
□ Applicable √Not applicable

There is no commitment that has not been fulfilled by actual controller, shareholders, related parties, acquirers of
the Company

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

 II. Particulars about the non-operating occupation of funds by the controlling shareholder

□ Applicable √ Not applicable
No such cases in the reporting period.

III. Illegal provision of guarantees for external parties

□ Applicable √ Not applicable
No such cases in the reporting period.

IV. Explanation of the Board of Directors on the latest "Non-standard Audit Report"

□ Applicable √ Not applicable

V. Notes for “non-standard audit report” of CPAs firm during the Reporting Period by board of directors
and supervisory board

□ 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
On December 14, 2018, the Ministry of Finance issued a notice on the revision and issuance of Accounting
Standards for Business Enterprises No.21-Leasing (hereinafter referred to as "New Leasing Standards"), which
would come into effect on January 1, 2019 for enterprises listed at home and abroad and those listed overseas and
using international financial reporting standards or accounting standards for business enterprises to prepare
financial statement, and on January 1, 2021 for other enterprises that implement accounting standards for business

- 96 -
                                                      Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


enterprises.
On May 26, 2021, the Ministry of Finance issued the Notice on Adjusting the Scope of Application of the
 (No.9 [2021] of the Ministry of Finance)
(hereinafter referred to as the "Regulations on Rent Concessions of the COVID-19"), which would come into effect
on May 26, 2021, and the applicable scope of rent concession related to the COVID-19, which was allowed to adopt
simplified method in Accounting Treatment Regulations for Rent Concessions Related to the COVID-19, was
adjusted from "concession only for rent payable before June 30, 2021" to "concession only for rent payable before
June 30, 2022", while other applicable conditions remain unchanged.
On January 26, 2021, the Ministry of Finance issued the Notice on Printing and Distributing the  (CK [2021] No.1) and the Question and Answer on the
Implementation of Accounting Standards for Business Enterprises
According to the regulations, the Company implemented the above-mentioned new leasing standards, COVID-19
rent concession regulations and enterprise regulations. Except for the new leasing standards, other standards, notices
and implementation Q&As had no significant impact on the financial statements of the Group and the Company.

VII.Explain change of the consolidation scope as compared with the financial reporting of last year.

√ Applicable □ Not applicable

            Name        Main           Registered    Nature     New investment      Paid-in capital at Proportion       Acquired
                        business           address               amount in this        the end of         (%)
                        place                                    period (Yuan)       period(Yuan)
Guangdong               GuangzhouG GuangzhouGuang                                                                    Business merger
                                                     Electric
Shajiao(Plant C) Power uangdong     dong                           1,559,120,782       2,500,000,000     51%         under the same
                                                     Power
Generation Co., ltd.                                                                                                     control
Guangdong Yudean        Yunfu       Yunfu                                                                            Business merger
                                                     Electric
Yunhe Power Generation Guangdong Guangdong                         1,066,562,327         755,733,258     90%         under the same
                                                     Power
Co., Ltd.                                                                                                                control
Tumushuke Thermal                   Tumushuke                                                                        Business merger
                        Tumushuke                    Electric
Power Co., Ltd.                     Xinjiang                         800,000,000       1,006,523,900    79.48%      not under the same
                        Xinjiang                     Power
                                                                                                                         control
Guangdong Yuehua        GuangzhouG GuangzhouGuang                                                                    Business merger
                                                     Electric
Power Generation Co.,   uangdong    dong                             541,247,838       1,004,714,000     51%         under the same
                                                     Power
Ltd                                                                                                                      control
Guangdong Yudean        Jieyang     Jieyang
                                                     Electric
Dahanhai Intelligence   Guangdong Guangdong                           15,000,000          15,000,000     100%           Invested
                                                     Power
Energy Co., Ltd.
Guangdong Yudean Bijie Bijie        Bijie Guizhou    Electric
                                                                        5,000,000          5,000,000     100%           Invested
New Energy Co., Ltd.    Guizhou                      Power
Guangdong Yudean        Huizhou     Huizhou
                                                     Electric
Baihua Integrated       Guangdong Guangdong                             3,000,000          3,000,000     100%           Invested
                                                     Power
Energy Co., Ltd.




- 97 -
                                                           Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


VIII. Engagement/Disengagement of CPAs

CPAs currently engaged
                                                                PWC Certified Public Accountants (special general
 Name of the domestic CPAs
                                                                partnership)

 Remuneration for domestic accounting firm (RMB 0',000)                                                             556.5

 Successive years of the domestic CPAs offering auditing
                                                                6
 services

 Name of CPA                                                    Chen Junjun, Li Xiaolei

 Continuous years of audit services of certified public
                                                                Chen Junjun 5 years, Li Xiaolei 1 year
 accountants of domestic public accounting firms

Has the CPAs been changed in the current period
 □ Yes √ No
Description of the CPAs, financial advisers or sponsors engaged for internal control auditing
√ Applicable □Not applicable

In the report year, the Company engaged PWC Certified Public Accountants (special general partnership)as the
certified public accountants and internal control audit body in 2021. The audit remuneration was RMB 5.565
million
IX. Situation of Facing Listing Suspension and Listing Termination after the Disclosure of the Yearly
Report
□Applicable √ Not applicable

X. Relevant Matters of Bankruptcy Reorganization

□Applicable √ Not applicable
No such cases in the reporting period.

XI. Matters of Important Lawsuit and Arbitration

□Applicable √ Not applicable
No such cases in the reporting period.

XII. Situation of Punishment and Rectification

□Applicable √ Not applicable
No such cases in the reporting period.

XIII. Credit Condition of the Company and its Controlling Shareholders and Actual Controllers

□Applicable √ Not applicable

XIV. Material related transactions

1. Related transactions in connection with daily operation

√ Applicable □ Not applicable
Please refer to "7. Other significant related party transactions" for the related transactions related to the daily
operation of the Company during the reporting period.

- 98 -
                                                                      Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


2. Related-party transactions arising from asset acquisition or sale

√ Applicable □ Not applicable
Please refer to "7. Other significant related transactions" for the related transactions of the acquisition and sale of
assets or equity of the Company during the reporting period

3. Related party transactions of joint outbound investment

□Applicable √ Not applicable
No such cases in the reporting period.

4. Credits and liabilities with related parties

□Applicable √ Not applicable
No such cases in the reporting period.

5. Transactions with related finance company, especially one that is controlled by the Company

√ Applicable □Not applicable
          Deposit business
 Related party      Relationship        Maximum             Deposit            Beginning     The amount of this period
                                       daily deposit      interest rate    balance(RM                          Total amount
                                                                                            Total deposit                           Ending
                                       limit(RMB             range             B '0,000)                       is withdrawn
                                                                                              amount                              balance(RM
                                           '0,000)                                                               for this
                                                                                               (RMB                                B '0,000)
                                                                                                               period(RMB
                                                                                               '0,000)
                                                                                                                 '0,000)

 Guangdong          Controlled
 Energy             by
 Group              Guangdong
                                           1,100,000      0.35%                   839,406     10,226,767        10,418,691            647,482
 Finance Co.,       Energy
 Ltd.               Group      Co.,
                    Ltd.

Loan business
    Related party           Relationship                                         Beginnin        The amount of this period
                                                                                     g
                                                                                                                   Total repayment
                                                 Loan             Loant                     Total loan amount                                  Ending
                                                                                 balance(
                                                                                                                    amount of the
                                              limit(RMB        interest rate                  of the current                            balance(RMB
                                                                                   RMB
                                                                                                                        current
                                                '0,000)           range                       period(RMB                                       '0,000)
                                                                                  '0,000)
                                                                                                                    period(RMB
                                                                                                 '0,000)
                                                                                                                        '0,000)

 Guangdong                 Controlled by
 Energy Group              Guangdong
                                             3,300,000        2.7%-4.41%         871,684    1,149,138              1,086,405            934,417
 Finance Co., Ltd.         Energy Group
                           Co., Ltd.

Credit extension or other financial services




- 99 -
                                                        Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


            Related party                    Relationship          Business type     Total amount(RMB        Actual amount
                                                                                           '0,000)        incurred(RMB '0,000)

 Guangdong Communications Group       Controlled by the same
                                                                 Credit extension             3,300,000                934,417
 Finance Co., Ltd                     parent company

6. Transactions between the financial company controlled by the Company and related parties

□ Applicable √Not applicable
There is no deposit, loan, credit or other financial business between the financial company controlled by the
Company and related parties.

7. Other significant related-party transactions

√ Applicable □Not applicable
(1)2021 daily related transactions were carried out after examination and approval by 2021 first 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) On January 28, 2021, the 19th meeting of the Ninth Board of Directors of the Company reviewed and approved
the Proposal on Daily Related Party Transactions between the Company and Guangdong Energy Group Co., Ltd. in
2021, the Proposal on Signing the  between the Company and
Guangdong Yudean Finance Co., Ltd., the Proposal on Signing the  between the Company and Guangdong Yudean Financial Leasing Co., Ltd., the Proposal on Signing
the  between Guangdong
Yudean Property Insurance Co., Ltd. The above related party transactions were reviewed and approved at the
Company's first extraordinary general meeting of shareholders in 2021.

(3) In order to smoothly promote the construction of wind power projects and ease the financial pressure, the Ninth
Board of Directors of the Company reviewed and approved the Proposal on Introducing Investors from Indirect
Subsidiaries at its first communication meeting in 2021 on April 27, 2021, and agreed to introduce Zhuhai Special
Economic Zone Electric Power Development Group Co., Ltd. and Guangdong Energy Group Co., Ltd. as investors
of Guangdong Yudean Zhuhai Offshore Wind Power Co., Ltd. by way of capital increase and share expansion, of
which Zhuhai Electric Power invested RMB 89.187 million, holding 20% equity of Zhuhai Wind Power Company,
and Guangdong Energy Group invested RMB 25,500,300, holding 5.7184% equity of Zhuhai Wind Power
Company. After the capital increase and share expansion, the share ratio of Zhuhai Wind Power Company held by
Guangdong Wind Power Company decreased to 74.2816%, and the final share ratio of each shareholder shall be
subject to the results of asset appraisal and filing; It is agreed to implement the capital increase of special funds for
promoting economic development in 2018 by the State-owned Assets Supervision and Administration Commission
of Guangdong Province in the form of capital increase and share expansion, and introduce Guangdong Energy
Group as the shareholder of Guangdong Yudean Yangjiang Offshore Wind Power Co., Ltd., with Guangdong
Energy Group contributing RMB 58,105,300, and holding 10.9594% of the shares of Yangjiang Wind Power
Company. After the capital increase and share expansion, the shareholding ratio of Yangjiang Wind Power
Company held by Guangdong Wind Power Company decreased to 89.0406%, and the final shareholding ratio of
each shareholder shall be subject to the results of asset appraisal and filing.

(4) In order to smoothly promote the development and construction of new energy projects and ease the financial
pressure of Shanxi Yudean Energy Co., Ltd., the Ninth Board of Directors of the Company reviewed and approved
the Proposal on Capital Increase to Shanxi Yudean Energy Co., Ltd. at its first communication meeting in 2021 on

- 100 -
                                                     Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


April 27, 2021, and agreed that the Company and Guangdong Energy Group Co., Ltd. would simultaneously
increase a total capital of RMB 160 million to Shanxi Energy Company according to the equity ratio, which would
be used for Shanxi Energy Company to invest in Jilin Qian'an Phase I 50MW Wind Power Project and Hebei
Pingshan 100MW Photovoltaic Project, in which the Company would increase the capital of RMB 64 million
according to the 40% equity ratio.

(5) In order to guarantee the project construction funds and reduce the financing cost, the Ninth Board of Directors
of the Company reviewed and approved the Proposal on Some Subsidiaries Applying for Entrusted Loans to
Guangdong Energy Group Corporation at its third communication meeting in 2021 on June 8, 2021, and agreed that
the wholly-owned subsidiaries of the Company, Guangdong Yudean Qujie Wind Power Co., Ltd. and Guangdong
Yudean Marina Bay Energy Co., Ltd., would apply for entrusted loans to Guangdong Energy Group, with the loan
amount of Qujie Wind Power Company not exceeding RMB 1 billion and that of Marina Bay Company not
exceeding RMB 1 billion; the loan term should not exceed 15 years; and the interest rate should be determined
according to the same interest rate of green bonds issued by Guangdong Energy Group in the current period. The
above-mentioned related party transactions are implemented after being reviewed and approved by the Company's
second extraordinary general meeting of shareholders in 2021.

(6) In order to meet the project approval requirements of Bohe Energy Company, the Ninth Board of Directors of the
Company reviewed and approved the Proposal on Some Subsidiaries Applying for Entrusted Loans to Guangdong
Energy Group Corporation at its third communication meeting in 2021 on June 8, 2021, and agreed that Bohe
Energy Company would purchase the shutdown capacity of Guangdong Yuehua Power Generation Co., Ltd. and
Guangdong Yudean Yunhe Power Generation Co., Ltd., the holding subsidiary of Guangdong Energy Group Co.,
Ltd., with the shutdown capacity of 660,000 kilowatts and 250,000 kilowatts, respectively, according to the
alternative shutdown capacity of Bohe Power Plant project approval document, with a transfer unit price of no more
than RMB 400/kilowatt, and the total tax-included prices of the corresponding transfer agreement of no more than
RMB 264 million and RMB 100 million respectively. The above-mentioned related party transactions are
implemented after being reviewed and approved by the Company's second extraordinary general meeting of
shareholders in 2021.

(7) In order to implement the arrangement of special governance of provincial key loss-making subsidiaries by the
State-owned Assets Supervision and Administration Commission of Guangdong Province, optimize Bohe's asset
structure, and promote the high-quality development of Bohe Energy Company, the Tenth Board of Directors of the
Company reviewed and approved the Proposal on Selling Wharf Assets of Guangdong Yudean Bohe Energy Co., Ltd.
at its first communication meeting in 2021 on August 13, 2021, and agreed that Bohe Energy Company would sell
the wharf assets which was included in this appraisal to Guangdong Electric Power Industry Fuel Co., Ltd. at a
transaction price of RMB 2,798,423,900. The above-mentioned related party transactions are implemented after
being reviewed and approved by the Company's third extraordinary general meeting of shareholders in 2021.

(8) On September 28, 2021, the Tenth Board of Directors of the Company reviewed and approved the Proposal on
Adjusting the Forecast of Daily Related Transactions between the Company and Guangdong Energy Group Co., Ltd.
at its third meeting in 2021, and agreed that the Company and its holding subsidiaries and the controlling
shareholder of the Company, Guangdong Energy Group Co., Ltd. and its subsidiaries and related parties would
continue to have daily related transactions such as fuel material procurement, labor/service acceptance, lease,
labor/service provision, commodity sales and public expense sharing in 2021, with the expected amount adjusted
from RMB 18,185.3 million to RMB 30,936.8 million. The above-mentioned related party transactions are
implemented after being reviewed and approved by the Company's fourth extraordinary general meeting of
shareholders in 2021.

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                                                            Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


(9) In order to further promote the concentration of the core business assets of Guangdong Energy Group Co., Ltd.
to listed companies and actively fulfill the commitment to avoid and solve horizontal competition, the Tenth Board
of Directors of the Company reviewed and approved the Proposal on Acquisition of the Equity of Shajiao (C Plant)
Power Generation Co., Ltd. and other Companies in Guangdong Province at its third meeting on September 28,
2021, and agreed that Guangdong Electric Power would acquire 51% equity of Guangdong Shajiao (C Plant) Power
Generation Co., Ltd., 90% equity of Guangdong Yudean Yunhe Power Generation Co., Ltd. and 51% equity of
Guangdong Yuehua Power Generation Co., Ltd. held by Guangdong Energy Group in cash, at a total transaction
price of RMB 4,139,927,700. The above-mentioned related party transactions are implemented after being reviewed
and approved by the Company's fourth extraordinary general meeting of shareholders in 2021.

(10) With the approval of the Fourth Extraordinary General Meeting of Shareholders in 2021 held on October 25,
2021, it was agreed that the Company would acquire 51% equity of Guangdong Shajiao (C Plant) Power Generation
Co., Ltd., 90% equity of Guangdong Yudean Yunhe Power Generation Co., Ltd. and 51% equity of Guangdong
Yuehua Power Generation Co., Ltd. (hereinafter collectively referred to as the "target companies") by cash. In order
to ensure the continuous and stable operation of the power generation assets of the target companies, the Tenth
Board of Directors of the Company reviewed and approved the Proposal on the Acquisition of Assets Involving
New Related Party Transactions at its fourth meeting on November 8, 2021, and agreed to add new subsidiaries of
listed companies to purchase fuel materials from Guangdong Energy Group, its subsidiaries and related parties,
deposit and loan from financial companies, and conduct entrusted operation and other related transactions after the
acquisition of assets. The above-mentioned related party transactions are implemented after being reviewed and
approved by the Company's fifth extraordinary general meeting of shareholders in 2021.

Website for temporary disclosure of the connected transaction
               Announcement                             Date of disclosure                  Website for disclosure



 Estimates announcement of the Daily
                                                 January 29,2021                 http//www.cninfo.com.cn.
 Related Party Transactions of 2021



 Announcement of Related Transactions on
 Signing of the Financial Services
 Framework Agreement, Framework
 Agreement on Financing Leasing                  January 29,2021                 http//www.cninfo.com.cn.
 Cooperation and Framework Agreement on
 Cooperation in Insurance and Risk
 Management Services

 Announcement on Related Transactions of
                                                 April 28,2021                   http//www.cninfo.com.cn.
 Indirect Investors Introduced by Subsidiaries

  Announcement on Related Transactions of

  Capital Increase to Shanxi Yudean Energy       April 28,2021                   http//www.cninfo.com.cn.

  Co., Ltd.


    Announcement on Related Transaction of       June 10,2021                    http//www.cninfo.com.cn.


- 102 -
                                                           Guangdong Electric Power Development Co., Ltd. 2021 Annual Report



    Some Subsidiaries Applying Entrusted

    Loans from Guangdong Energy Group


  Announcement on related transaction

  concerning the acquisition of capacity

  indicators for small thermal power units of   June 10,2021                    http//www.cninfo.com.cn.

  Huangpu Power Plant and Yunfu Power

  Plant

  Announcement on the related transaction of


  the sale of terminal assets by Guangdong
                                                August 14,2021                  http//www.cninfo.com.cn.

  Yudean Bohe Energy Co., Ltd.




 Estimates announcement of the Adjustment
                                                October 8,2021                  http//www.cninfo.com.cn.
 Daily Related Party Transactions of 2021



 Announcement of related transaction for the
 acquisition of shares of Guangdong Shajiao
                                                October 8,2021                  http//www.cninfo.com.cn.
 ( Plant C) Power Generation Co., Ltd and
 other companies

  Announcement on New Related Transactions
                                                November 9,2021                 http//www.cninfo.com.cn.
 Involved in Assets Acquisition



XV. Significant contracts and execution

1.Entrustments, contracting and leasing

(1)Entrustment

√ Applicable □ Not applicable
Statement of Trusteeship Situation :
According to the statement of Guangdong Energy Group on fulfilling relevant matters, and to avoid the horizontal
competition and fulfill the relevant commitment of the horizontal competition, the Company signed Stock
Trusteeship Agreement with Guangdong Energy Group, wherein the shareholder's rights within the trusteeship
range, except the ownership, right of earning and right of disposition, will be trusted to the Company, The custody
fee collected from each company directly holding the first-class target of Guangdong Energy Group is RMB
100,000/year; The custody fee collected from each company indirectly holding the secondary target is RMB
50,000/year. published by the Company in China Securities Daily, Securities Times and http://www.cninfo.com.cn

- 103 -
                                                    Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


on January 13, 2018(Announcement No.2018-04). the custody fee actually collected by the Company was RMB
2,284,200.
Gains/losses to the Company from projects that reached over 10% in total profit of the Company in reporting
period
□Applicable √ Not applicable
No gains or losses to the Company from projects that reached over 10% in total profit of the Company in
reporting period

(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 Yudean Property
Company and Yangjiang Port , and the rental fee incurred this year was 3,673,203.
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.




- 104 -
                                                                                                                     Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


2.Significant Guarantees

√Applicable □ Not applicable
                                                                                                                                                                            In RMB 10,000
                                             Guarantee of the Company for the controlling subsidiaries (Exclude controlled subsidiaries)

                    Relevant
                                                   Date of                                                                                                                        Guarantee
                    disclosure
                                                  happening            Actual                                                                                     Complete            for
  Name of the      date/No. of   Amount of                                                                Guaranty(If   Counter-guarantee       Guarantee
                                                   (Date of           mount of           Guarantee type                                                      implementation       associated
   Company               the     Guarantee                                                                   any)             (If any)          term
                                                   signing            guarantee                                                                                    or not           parties
                   guaranteed
                                                  agreement)                                                                                                                      (Yes or no)
                     amount

                                                                                                                         Yunnan Baoshan
Yunnan                                                                                                                   Binglangjiang
Baoshan                                                                                                                  Hydropower
                                                                                        Guaranteeing
Binlangjiang       December                     November                                                                 Development Co.,
                                       4,350                                      580   of joint                                                15 years     No                  No
Hydroelectricity   19,2007                      30,2007                                                                  Ltd. provides joint
                                                                                        liabilities.
Development                                                                                                              and          several
Co., Ltd.                                                                                                                liability guarantee
                                                                                                                         counter-guarantee.

                                                                                                                         Yunnan Baoshan
Yunnan                                                                                                                   Binglangjiang
Baoshan                                                                                                                  Hydropower
                                                                                        Guaranteeing
Binlangjiang       May                                                                                                   Development Co.,
                                       9,367    June 22,2009                 3,567      of joint                                                18 years     No                  No
Hydroelectricity   27,2009                                                                                               Ltd. provides joint
                                                                                        liabilities.
Development                                                                                                              and          several
Co., Ltd.                                                                                                                liability guarantee
                                                                                                                         counter-guarantee.


- 105 -
                                                                                                                    Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


                                                                                                                        Guangdong
                                                                                                                        Yudean Yangjiang
                                                                                                                        Offshore wind
Guangdong                                                                              Guaranteeing
                    October                      November                                                               power    Co., Ltd.
Energy Group                           200,000                             164,989     of joint                                              23.9 years   No               No
                    29,2020                      19,2020                                                                provides joint and
Co., Ltd.                                                                              liabilities.
                                                                                                                        several liability
                                                                                                                        guarantee
                                                                                                                        counter-guarantee

Xinjiang Jintai                                                                        Guaranteeing
                                                 December
Electric Power                           3,775                               1,257     of joint                                              3 years      No               No
                                                 11,2021
Co., Ltd.                                                                              liabilities.

   Total amount of approved                                        Total actually amount of external
external guarantee in the report                               0        guarantee in the report                                                                                 132,055
            period(A1)                                                           period(A2)

   Total amount of approved                                        Total actually amount of external
external guarantee at the end of                      425,459      guarantee at the end of the report                                                                           170,393
     the report period(A3)                                                       period(A4)

                                                                    Guarantee of the company for its subsidiaries

                     Relevant
                                                    Date of                                                                                                                Guarantee
                     disclosure
                                                  happening             Actual                                                                                 Complete         for
  Name of the       date/No. of    Amount of                                                             Guaranty(If   Counter-guarantee     Guarantee
                                                   (Date of           mount of          Guarantee type                                                    implementation   associated
   Company                the      Guarantee                                                                any)           (If any)          term
                                                    signing           guarantee                                                                                 or not       parties
                    guaranteed
                                                  agreement)                                                                                                               (Yes or no)
                         amount

Zhanjiang Wind
                    April                        October                               Guaranteeing
Power                                   18,572                               5,082                                                           18 years     No               No
                    29,2009                      9,2010                                of joint
Generation Co.,
- 106 -
                                                                                                                               Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


Ltd.                                                                                           liabilities.

       Total of guarantee for
                                                                           Total of actual guarantee for
  subsidiaries approved in the                                         0                                                                                                                    -756
                                                                           subsidiaries in the period (B2)
            period(B1)

Total of guarantee for
                                                                           Total of actual guarantee for
subsidiaries approved at                                      141,536                                                                                                                      5,082
                                                                           subsidiaries at period-end(B4)
period-end(B3)

                                                                      Guarantee of the subsidiaries for the controlling subsidiaries

                       Relevant
                                                           Date of                                                                                                                    Guarantee
                      disclosure
                                                          happening             Actual                                                                                 Complete          for
  Name of the         date/No. of     Amount of                                                  Guarantee        Guaranty(If     Counter-guarantee   Guarantee
                                                           (Date of            mount of                                                                             implementation    associated
   Company                the           Guarantee                                                    type             any)            (If any)         term
                                                           signing            guarantee                                                                                 or not         parties
                      guaranteed
                                                         agreement)                                                                                                                  (Yes 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 the
                                                                       0   actually incurred in the reporting                                                                           131,299
reporting period(A1+B1+C1)
                                                                           period(A2+B2+C2)

Total guarantee quota already approved at                                  Total balance of the actual

  the end of the reporting period                             566,995      guarantee at the end of the                                                                                  175,475

  (A3+B3+C3)                                                             reporting period(A4+B4+C4)
The proportion of the total amount of actually guarantee in the net
                                                                                                                                                                                          7.62%
assets of the Company (that is A4+B4+C4)%

Including:

Amount of guarantees provided for shareholders, the actual                                                                                                                              164,989

- 107 -
                                                                                                                         Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


controller and their related parties (D)

Amount of debt guarantees provided directly or indirectly for
                                                                                                                                                                                           4,147
entities with a liability-to-asset ratio over 70% (E)

Proportion of total amount of guarantee in net assets of the company
                                                                                                                                                                                               0
exceed 50%(F)

Total amount of the three kinds of guarantees above (D+E+F)                                                                                                                             169,136

Explanations on possibly bearing joint and several liquidating
responsibilities for undue guarantees ( If any)

As for the joint liability guarantee of Xinjiang Jintai Electric Power Co., Ltd. undertaken by the Company due to the acquisition of Tumushuke City Thermal Power Company, the actual date is the
date when Tumushuke City Thermal Power Company completes the industrial and commercial change registration.




- 108 -
                                                                 Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


3. Finance management on commission

(1)Situation of Entrusted Finance

□ Applicable √ Not applicable
No any Entrusted Finance for the Company in the reporting period..

(2)Situation of Entrusted Loans

□ Applicable √ Not applicable
No any Entrusted loans for the Company in the reporting period..

4. Other significant contract

□ Applicable √ Not applicable
No other significant contracts for the Company in reporting period.

XVI. Explanation on other significant events

√ Applicable □Not applicable
                       Summary of important matters                                         Name                    Date of          Website for
                                                                                                                   disclosure        disclosure

In order to increase the Company's proportion of clean energy and further Announcement on the                    July 17,2021
optimize the power supply structure, the 21th meeting of the Ninth board        investment and construction of
of directors agreed that the Company will invest in the construction of the the integrated energy station                        http//www.cninfo.co
integrated energy station project in Huizhou Dayawan Petrochemical              project in Huizhou Dayawan                       m.cn.
District as a shareholder. The total investment of the project is 3.82 billion Petrochemical Zone
yuan, and the capital is set at 764 million yuan.

In order to actively integrate into the construction of Guangdong-Hong          Announcement on                  August 3,2021
Kong-Macao Greater Bay Area and grasp the new opportunities of                  Participating in Initiating
financial development, On August 2,2021,the First meeting of the Tenth          the Establishment of
Board of Directors agrees that the Company will participate in the              Provincial Futures
                                                                                                                                 http//www.cninfo.co
establishment of Guangdong Utrust Futures Co., Ltd. with its own capital Companies
                                                                                                                                 m.cn.
of RMB 400 million and according to the equity ratio of 20% (finally
subject to industrial and commercial registration, hereinafter referred to as
"provincial futures company"), and sign the sponsor agreement and articles
of association of the provincial futures company;

  In order to accelerate the Company's new energy project investment and Announcement of                         September
development, the Second Meeting of the Tenth Board of Directors by              Resolutions of the Second        15,2021
Correspondence agreed to establish the Tumshuk Branch Company and th Meeting of the Tenth Board                                  http//www.cninfo.co
e Qinghai Branch Company of Guangdong Electric Power Development C of Directors by                                               m.cn.
o., Ltd for the overall promotion of the new energy resource development Correspondence of 2021
and investment project management in Xinjiang and Qinghai.

According to the Notice on Increasing the On-grid Electricity Price for         Announcement on                  October         http//www.cninfo.co


- 109 -
                                                                   Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


   Natural Gas Power Generation in Guangdong Province issued by                     Adjustment of On-grid        22,2021    m.cn.
   Guangdong Development and Reform Commission (YFGJG [2021]                        Electricity Price of Gas
   No.400), the on-grid electricity price of Qianwan LNG Power Plant and            Power Plant
   Huizhou LNG Phase I natural gas generator set controlled by the Company
   remained unchanged, and the on-grid electricity price of Huizhou LNG
   Phase II natural gas generator set uniformly increased by RMB 0.05
   (including VAT) per kilowatt hour from October 1, 2021 on the current
   basis, and the adjusted on-grid electricity price was RMB 0.6550 (including
   tax).
     In order to speed up the large-scale development of the Company's              Announcement on              November
new energy power generation projects, increase the installed roportion of           Investment in Construction 9,2021
   clean energy and optimize the power supply structure,,Upon the                  of Guangdong Yangjiang
   deliberation at the Fourth Meeting of the Tenth Board of Directors of the        Qingzhou I and Qingzhou II
   Company on November 8, Guangdong Wind Power Co., Ltd., a                         (1 million kW) Offshore
   wholly-owned subsidiary of the Company, was approved as a shareholder to Wind Power Project
   invest in the construction of Yudean Yangjiang Qingzhou I and Qingzhou II
   offshore wind farms, with a total construction scale of 1 million kilowatts, a
   dynamic total investment of RMB 17,107,250,000, and a capital of RMB
                                                                                                                            http//www.cninfo.co
   3,421,450,000 according to 20% of the dynamic total investment (the total
                                                                                                                            m.cn.
   investment and capital amount shall be subject to the approved change
   document finally),Guangdong Energy Qingzhou Offshore Wind Power
   Co., Ltd. (hereinafter referred to as "Qingzhou Wind Power Company"),
   which is wholly-owned by Guangdong Wind Power Company, is the
   investment subject of the project, responsible for the investment,
   construction and operation of the project. The capital required for the
   project will be increased by the Company in batches to Guangdong Wind
   Power Company according to the actual construction progress and capital
   needs of the project.

           In order to support the deepening of Guangdong's assistance to           Announcement of              November
   Xinjiang, help the reform of state-funded and state-owned enterprises in         Resolutions of the Fourth    9,2021
   Tumushuk City, the Third Division of Xinjiang Production and                     Meeting of the Tenth Board
   Construction Corps, and promote the multi-energy complementary and               of Directors
   integrated development of Guangdong Power in Xinjiang, the Board of                                                      http//www.cninfo.co
   Directors of the Company agreed that the Company would participate in                                                    m.cn.
   the capital increase project of Tumushuk Thermal Power Co., Ltd.
   (hereinafter referred to as "Tumushuk Thermal Power Company") by way
   of public quotation, with a quotation amount of no higher than RMB 800
   million, and a corresponding shareholding ratio of 79.50%.

   In order to further promote the scale and professional development of            Announcement on Capital      December
   Guangdong Wind Power Co., Ltd. (hereinafter referred to as "Guangdong Increase of Guangdong                   31,2021
                                                                                                                            http//www.cninfo.co
   Wind Power Company"), a wholly-owned subsidiary of the Company,                  Wind Power Generation
                                                                                                                            m.cn.
   strengthen the synergy and agglomeration effect of resources, and enhance Co., Ltd. by Holding Equity
   the comprehensive strength and market competitiveness of the Company's of Wind Power Company


   - 110 -
                                                              Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


wind power business, upon the deliberation at the Fifth Meeting of the Tenth
Board of Directors of the Company on December 29, it was agreed that the
Company would increase the capital of Guangdong Wind Power Company
with 70% equity of Guangdong Yudean Zhanjiang Wind Power Co., Ltd.,
81.79% equity of Guangdong Yudean Leizhou Wind Power Co., Ltd., 100%
equity of Guangdong Yudean Qujie Wind Power Co., Ltd., 100% equity of
Tongdao Yuexin Wind Power Co., Ltd. and 10% equity of Southern
Offshore Wind Power Joint Development Co., Ltd., with a total capital
increase of RMB 3,218,446,900.




XIV. Significant event of subsidiary of the Company

□ Applicable √Not applicable




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                                                             Guangdong Electric Power Development Co., Ltd. 2021 Annual Report



                 VII. Change of share capital and shareholding of Principal Shareholders
I. Changes in share capital
1. Changes in share capital
                                                                                                                       In shares
                                    Before the change                 Increase/decrease(+,-)                  After the Change

                                   Amount        Proportio                     Capitaliz
                                                    n        Share             ation of
                                                                      Bonus                                                   Proporti
                                                             allotm            common      Other   Subtotal     Quantity
                                                                      shares                                                    on
                                                              ent              reserve
                                                                                 fund

 I. Share with conditional
                                 1,897,970,125     36.15%                                            -4,008 1,897,966,117     36.15%
 subscription

    1. State-owned shares

 2. State-owned legal person
                                 1,893,342,621     36.06%                                                     1,893,342,621   36.06%
 shares

 3.Other domestic shares            4,627,504       0.09%                                            -4,008      4,623,496      0.09%

 Of which:Domestic legal
                                    4,620,666       0.09%                                                        4,620,666      0.09%
 person shares

 Domestic natural person
                                        6,838           0%                                           -4,008          2,830          0%
 shares

    4.Foreign shares

    Of which:Foreign legal
 person shares

 Foreign natural person
 shares

 II. Shares with unconditional
                                 3,352,313,861     63.85%                                             4,008 3,352,317,869     63.85%
 subscription

 1.Common shares in RMB          2,553,905,861     48.64%                                             4,008 2,553,909,869     48.64%

 2.Foreign shares in domestic
                                  798,408,000      15.21%                                                      798,408,000    15.21%
 market

    3.Foreign shares in
 foreign market

    4.Other

 III. Total of capital shares    5,250,283,986      100%                                                      5,250,283,986

Reasons for share changed
√ Applicable □ Not applicable
On February 10, 2021, the lock-up period of 4,716 restricted shares held by Mr. Lin Weifeng, a former employee
supervisor of the company, expired and such shares became unrestricted shares;On August 2, 2021, Mr. Wen

- 112 -
                                                             Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


Lianhe, the director of the Company, ceased to serve as the director of the Company due to the expiration of his term
of office, nor did he hold other positions in the Company or its holding subsidiaries. As of the disclosure date of the
resignation announcement, Mr. Wen Lianhe holded 2,830 shares of the Company. According to the relevant
regulations of the Listing Rules for Stocks of Shenzhen Stock Exchange, the directors of listed companies are not
allowed to transfer their shares within six months after resignation. Therefore, the lock-up ratio of 2,830 shares held
by Mr. Wen Lianhe has increased from 75% to 100%, and the restricted shares have increased by 708 shares. In
summary, the number of restricted shares of the Company decreased by 4,008 shares.
Approval of Change of Shares
□Applicable √Not applicable
Ownership transfer of share changes
□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 RMB

                                       Number of           Number of
                   Number of                                                   Number of restricted
                                       restricted shares   restricted shares                          Reasons for sales    Release date of
 Shareholder       restricted shares                                           shares at the end of
                                       in increased this released in this                             restriction          sales restriction
                   at the beginning                                            the period
                                       period              period

                                                                                                      Change of employee
 Lin Weifeng             4,716                  0                4,716                      0                              February 10,2021
                                                                                                      supervisor

 Wen Lianhe              2,122                  708                 0                  2,830          Change of director   February 2,2022

 Total                   6,838                  708              4,716                 2,830          --                   --


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




- 113 -
                                                                 Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


3.About the existing employees’ shares

□Applicable √Not applicable

Ⅲ.Shareholders and actual controlling shareholder

1. Number of shareholders and shareholding

                                                                                                                                   In Shares

 Total number of
                                    Total shareholders at                                                   Total preferred shareholders at
 common                                                               The total number of preferre
                                    the end of the month                                                    the end of the month from the
 shareholders at the      87,039                              94,304 d shareholders voting rights (     0                                      0
                                    from the date of                                                        date of disclosing the annual
 end of the                                                           if any)(See Notes 8)
                                    disclosing                                                              report(if any)(See Notes 8)
 reporting period

                              Particulars about shares held above 5% by shareholders or top ten shareholders

                                         Proporti                                                                           Number of share
                                          on of        Number of     Changes in      Amount of         Amount of            pledged/frozen
          Shareholders     Nature of
                                          shares    shares held at   reporting        restricted       un-restricted
                          shareholder                                                                                     State of
                                           held        period -end     period        shares held       shares held                      Amount
                                                                                                                           share
                                         (%)

                          State-owne
 Guangdong Energy
                          d legal        67.39% 3,538,005,285                    0   1,893,342,621     1,644,662,664
 Group Co., Ltd.
                          person

 Guangzhou                State-owne
 Development Group        d legal         2.22%        116,693,602               0                 0    116,693,602
 Co., Ltd.                person

 Guangdong Electric       State-owne
 Power Development        d legal         1.80%         94,367,341               0                 0        94,367,341
 Corporation              person

                          State-owne
 China Securities
                          d legal         0.99%         52,027,145 -78,855,757                     0        52,027,145
  Finance Co., Ltd.
                          person

 ICBC-First Seafront     Domestic
 fund New Economy         Non-State
 flexible allocation of   owned           0.85%         44,717,918 44,717,918                      0        44,717,918
 hybrid securities        legal
 investment fund          person

                          Domestic
 Zheng Jianxiang          Natural         0.49%         25,514,900      710,014                    0        25,514,900
                          person

 Ningbo Bank-Boshi       Domestic        0.36%         18,915,500 18,915,500                      0        18,915,500



- 114 -
                                                             Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


 Growth advantage          Non-State
 hybrid securities         owned
 investment fund           legal
                           person

 Agricultural bank of      Domestic
 China-Boshi Yulon        Non-State
 flexible allocation of    owned         0.31%       16,055,400 16,055,400                    0        16,055,400
 hybrid securities         legal
 investment fund           person

 VANGUARD TOTAL
                           Overseas
 INTERNATIONAL
                           Legal         0.30%       15,855,512             0                 0        15,855,512
 STOCK INDEX
                           person
 FUND

 CHINA
 INTERNATIONAL
                           Overseas
 CAPITAL
                           Legal         0.29%       15,216,066             0                 0        15,216,066
 CORPORATION
                           person
 HONG KONG
 SECURITIES LTD

 Strategy investors or general legal
 person becomes top 10 shareholders
                                        Not applicable
 due to rights issued (if applicable)
 (See Notes 3)

 Explanation on associated              The Third largest shareholder Guangdong Electric Power Development Corporation is the
 relationship among the aforesaid       wholly-owned subsidiaries of the largest shareholder Energy Group. These two companies have
 shareholders                           relationships; whether the other shareholders have relationships or unanimous acting was unknown

 Above shareholders entrusting or
 entrusted with voting rights, or       Not applicable
 waiving voting rights

 Top 10 shareholders including the
 special account for repurchase (if     Not applicable
 any) (see note 10)

                                         Shareholding of top 10 shareholders of unrestricted shares

                                                           Quantity of unrestricted shares                     Share type
                 Name of the shareholder                   held at the end of the reporting
                                                                                                      Share type            Quantity
                                                                       period

 Guangdong Energy Group Co., Ltd.                                            1,644,662,664 RMB Common shares                1,644,662,664

 Guangzhou Development Group Co., Ltd.                                          116,693,602 RMB Common shares                116,693,602

 Guangdong Electric Power Development Corporation                               94,367,341 RMB Common shares                  94,367,341

 China Securities Finance Co., Ltd.                                             52,027,145 RMB Common shares                  52,027,145



- 115 -
                                                                Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


 ICBC-First Seafront fund New Economy flexible
                                                                                   44,717,918 RMB Common shares                       44,717,918
 allocation of hybrid securities investment fund

                                                                                                Foreign shares placed in
 Zheng Jianxiang                                                                   25,514,900                                         25,514,900
                                                                                                domestic exchange

 Ningbo Bank-Boshi Growth advantage hybrid
                                                                                   18,915,500 RMB Common shares                       18,915,500
 securities investment fund

 Agricultural bank of China-Boshi Yulon flexible
                                                                                   16,055,400 RMB Common shares                       16,055,400
 allocation of hybrid securities investment fund

 VANGUARD TOTAL INTERNATIONAL STOCK                                                             Foreign shares placed in
                                                                                   15,855,512                                         15,855,512
 INDEX FUND                                                                                     domestic exchange

 CHINA INTERNATIONAL CAPITAL                                                                    Foreign shares placed in
                                                                                   15,216,066                                         15,216,066
 CORPORATION HONG KONG SECURITIES LTD                                                           domestic exchange

 Explanation on associated relationship or consistent
                                                             The Third largest shareholder Guangdong Electric Power Development
 action among the top 10 shareholders of non-restricted
                                                             Corporation is the wholly-owned subsidiaries of the largest shareholder Energy
 negotiable shares and that between the top 10
                                                             Group. These two companies have relationships; whether the other shareholders
 shareholders of non-restricted negotiable shares and top
                                                             have relationships or unanimous acting was unknown.
 10 shareholders

 Explanation on shareholders participating in the margin
                                                             Not applicable
 trading business(if any )(See Notes 4)

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/Leade                            Organization code               Principal business activities
             shareholder                                    incorporation
                                            r

                                                                                                     Management and sales of the electricity
                                                                                                     investment construction operation
                                                                                                     management,electricity power(Thermal
                                                                                                     Power),
 Guangdong Energy Group
                                Li Zhuoxian             August 3,2001         91440000730486022G The industry of transportation resources
 Co., Ltd.
                                                                                                     environmental protection,new source of energy
                                                                                                     electricity investment; investment planning and
                                                                                                     consulting ; information consulting service;
                                                                                                     sales of production materials.


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                                                                   Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


 The equity of the controlling
 shareholder in other domestic
 and foreign listed companies       Unknown
 held or partly held by it in the
 report period

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          representativ
                                                    Date of establishment      Organization code             Principal business activities
          shareholder                e/person in
                                       charge

 State-owned Assets                                                                                  As the special institution directly
 supervision and                                                                                     subordinate to Guangdong Provincial
 administration Commission                                                                           People's Government, performed the
                                    Li Cheng        June 26,2004             114400007583361658
 of Guangdong                                                                                        obligation of provincial state-asset
 Provincial People’s                                                                                contributor entrusted by the provincial
 Government                                                                                          government.

 Equity of other
 domestic/foreign listed
 company with share
 controlling and share              Unknown
 participation 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




- 117 -
                                                    Guangdong Electric Power Development Co., Ltd. 2021 Annual Report




The actual controller controls the company by means of trust or managing the assets in other way

□Applicable √Not applicable

4.The cumulative number of shares pledged by the controlling shareholder or the largest shareholder of the
company and its person acting in concert accounts for 80% of the number of shares held by the company

□Applicable √Not applicable

 5.Particulars about other legal person shareholders with over 10% share held

□Applicable √Not applicable

6.Situation of Share Limitation Reduction of Controlling Shareholders, Actual Controllers, Restructuring Party
and Other Commitment Subjects

□Applicable √Not applicable

IV. Specific implementation of share repurchase during the reporting period

Progress in implementation of share repurchase
□ Applicable √Not applicable
Implementation progress of reducing repurchased shares by centralized bidding
□ Applicable √Not applicable




- 118 -
                                                   Guangdong Electric Power Development Co., Ltd. 2021 Annual Report



                                VIII. Situation of the Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares in the reporting period.




- 119 -
                                                                                                                  Guangdong Electric Power Development Co., Ltd. 2021 Annual Report



                                                                              IX. Corporate Bond

√ Applicable □ Not applicable

I. Enterprise bond

□ Applicable √ Not applicable
No such cases in the reporting period.

II. Corporate bond

√ Applicable □ Not applicable

1). Basic information of corporate bonds

                                                                                                                                                                                    In RMB

                                                    Bond short                                                               Bond balance Interest
                    Bond name                                    Bond code      Issue day       Value date      Due day                                      Servicing way                   Trading
                                                      name                                                                   (RMB '0,000)   rate

                                                                                                                                                     Using simple interest rate on
                                                                                                                                                     a yearly basis, regardless of
Public Issuance of Corporate Bonds to Qualified                                                                                                      compound interest. Due
Investors in 2020 (Phase I) of Guandong Electric                                                                                                     payments once a year,            Shenzhen Stock
                                                   20 Yudean 01 149113.SZ    April 29,2020     April 29,2020 April 29,2025   1,500,000,000 2.45%
Power Development Co.,Ltd.                                                                                                                           maturing debt at a time. In      Exchange
                                                                                                                                                     the final phase, interest is
                                                                                                                                                     paid together with the
                                                                                                                                                     principal redemption.

Public Issuance of Corporate Bonds to Qualified                                                January       January                                 Using simple interest rate on Shenzhen Stock
                                                   21 Yudean 01 149369.SZ    January 27,2021                                 1,000,000,000 3.57%
Investors in 2021 (Phase I) of Guandong Electric                                               27,2021       27,2024                                 a yearly basis, regardless of    Exchange


- 120 -
                                                                                                                  Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


Power Development Co.,Ltd.                                                                                                                         compound interest. Due
                                                                                                                                                   payments once a year,
                                                                                                                                                   maturing debt at a time. In
                                                                                                                                                   the final phase, interest is
                                                                                                                                                   paid together with the
                                                                                                                                                   principal redemption.

                                                                                                                                                   Using simple interest rate on
                                                                                                                                                   a yearly basis, regardless of
Public Issuance of Corporate Bonds to Qualified                                                                                                    compound interest. Due
Investors in 2021 (Phase II) of Guandong Electric                                                                                                  payments once a year,           Shenzhen Stock
                                                     21Yudean 02   149418.SZ   April 28,2021   April 28,2021 April 28,2026   1,500,000,000 3.50%
Power Development Co.,Ltd.                                                                                                                         maturing debt at a time. In     Exchange
                                                                                                                                                   the final phase, interest is
                                                                                                                                                   paid together with the
                                                                                                                                                   principal redemption.

                                                                                                                                                   Using simple interest rate on
                                                                                                                                                   a yearly basis, regardless of
                                                                                                                                                   compound interest. Due
Public Issuance of Corporate Bonds to Professional
                                                                               November        November      November                              payments once a year,           Shenzhen Stock
Investors in 2021 (Phase I) of Guandong Electric     21Yedean 03   149711.SZ                                                 800,000,000   3.41%
                                                                               24,2021         24,2021       24,2026                               maturing debt at a time. In     Exchange
Power Development Co.,Ltd.
                                                                                                                                                   the final phase, interest is
                                                                                                                                                   paid together with the
                                                                                                                                                   principal redemption.

                                                                                                                                                   Using simple interest rate on
                                                                                                                                                   a yearly basis, regardless of
Public Issuance of Corporate Bonds to Professional
                                                                                                                                                   compound interest. Due          Shanghai Stock
Investors in 2021 (Phase I) of Guandong Huizhou      21Pinghai 01 188197.SH June 4,2021        June 4,2021   June 4,2023     200,000,000   3.57%
                                                                                                                                                   payments once a year,           exchange
Ping Power Generation Co.,Ltd.
                                                                                                                                                   maturing debt at a time. In
                                                                                                                                                   the final phase, interest is


- 121 -
                                                                                                                         Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


                                                                                                                                                          paid together with the
                                                                                                                                                          principal redemption.

During the reporting period, interest payment situation of the company bonds(If 20 Yudean 01, 21 Yudean 01 and 21 Yudean 02 are bonds for qualified investors, 21 Yudean 03 and 21 Pinghai 01 are bonds
any)                                                                              for professional investors.

Applicable trading mechanism                                                       Bidding, quotation, inquiry and agreement transaction.

Whether there are risks and countermeasures for terminating listing transactions
                                                                                   No
(If any)




- 122 -
                                                                    Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


Overdue and unpaid bonds
□ Applicable √ Not applicable

2). Trigger and implementation of option clauses and investor protection clauses of the issuer or investor

□ Applicable √ Not applicable

3).Information of intermediary agency


     Name of bond              Name of                                             Name of signing Contact person of
                                                         Office Address                                                       Tel
          project       intermediary agency                                           accountant    intermediary agency

                        China Securities Co.,
                        Ltd. (lead principal    2/F, Block B, Kaiheng Center,
                        underwriter/bookkee No.2 Chaoyangmennei Street,            Not applicable   Liu Renshuo           010-86451370
                        ping                    Dongcheng District, Beijing
                        manager/trustee)

                        CITIC Securities        22/F, CITIC Securities Building,
                        Co., Ltd. (joint lead No.48 Liangmaqiao Road,              Not applicable   Song Yilan            010-60836755
 Public Issuance of     underwriter)            Chaoyang District, Beijing
 Corporate Bonds to
                                                23/F, R&F Center, No.10
 Qualified Investors
                        Beijing Zhong Lun       Huaxia Road, Zhujiang New
 in 2020 (Phase I) of                                                              Not applicable   Ling Qinghua          020-28261689
                        Law Firm                Town, Tianhe District,
 Guandong Electric
                                                Guangzhou
 Power Development
 Co.,Ltd.                                                                          Wang Bin, Li
                        PricewaterhouseCoo 18/F, PricewaterhouseCoopers
                                                                                   Yanhua(2019);
                        pers Zhongtian          Center, No.10 Zhujiang West
                                                                                   Wang Bin, Guo
                        Certified Public        Road, Zhujiang New Town,                            Wang Bin              020-38192000
                                                                                   Biyu(2018);
                        Accountants (Special Tianhe District, Guangzhou,
                                                                                   Wang Bin, Chen
                        General Partnership) China
                                                                                   Junjun(2017)

                        China Cheng Xin         Building 6, Yinhe SOHO, No.2
                        International Credit Nanzhugan Hutong, Dongcheng Not applicable             Fang Zibin            010-66428877
                        Rating Co. Ltd.         District, Beijing

                        China Securities Co.,

 Public Issuance of     Ltd. (lead principal    2/F, Block B, Kaiheng Center,

 Corporate Bonds to     underwriter/bookkee No.2 Chaoyangmennei Street,            Not applicable   Liu Renshuo           010-86451370

 Qualified Investors    ping                    Dongcheng District, Beijing

 in 2021 (Phase I) of manager/trustee)
 Guandong Electric      CITIC Securities        22/F, CITIC Securities Building,
 Power Development Co., Ltd. (joint lead No.48 Liangmaqiao Road,                   Not applicable   Song Yilan            010-60836755
 Co.,Ltd.               underwriter)            Chaoyang District, Beijing

                        Beijing Zhong Lun       23/F, R&F Center, No.10
                                                                                   Not applicable   Liang Qinghua         020-28261689
                        Law Firm                Huaxia Road, Zhujiang New

- 123 -
                                                                  Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


                                              Town, Tianhe District,
                                              Guangzhou

                                                                                 Wamg Bin, Li
                      PricewaterhouseCoo 18/F, PricewaterhouseCoopers
                                                                                 Yanhua(2019);
                      pers Zhongtian          Center, No.10 Zhujiang West
                                                                                 Wang Bin, Guo
                      Certified Public        Road, Zhujiang New Town,                            Wang Bin           020-38192000
                                                                                 Biyu(2018);
                      Accountants (Special Tianhe District, Guangzhou,
                                                                                 Wang Bin, Chen
                      General Partnership) China
                                                                                 Junjun(2017)

                      China Cheng Xin         Building 6, Yinhe SOHO, No.2
                      International Credit Nanzhugan Hutong, Dongcheng Not applicable             Fang Zibin         010-66428877
                      Rating Co. Ltd.         District, Beijing

                      China Securities Co.,
                      Ltd. (lead principal    2/F, Block B, Kaiheng Center,
                      underwriter/bookkee No.2 Chaoyangmennei Street,            Not applicable   Liu Renshuo        010-86451370
                      ping                    Dongcheng District, Beijing
                      manager/trustee)

                      CITIC Securities        22/F, CITIC Securities Building,
                      Co., Ltd. (joint lead No.48 Liangmaqiao Road,              Not applicable   Song Yilan         010-60836755
 Public Issuance of
                      underwriter)            Chaoyang District, Beijing
 Corporate Bonds to
 Professional                                 23/F, R&F Center, No.10
 Investors in 2021    Beijing Zhong Lun       Huaxia Road, Zhujiang New
                                                                                 Not applicable   Liang Qinghua      020-28261689
 (Phase II) of        Law Firm                Town, Tianhe District,
 Guandong Electric                            Guangzhou
 Power Development PricewaterhouseCoo 18/F, PricewaterhouseCoopers               Wng Bin, Li
 Co.,Ltd.          pers Zhongtian     Center, No.10 Zhujiang West                Yanhua
                      Certified Public        Road, Zhujiang New Town,           (2019-2020); Wang Bin            020-38192000
                      Accountants (Special Tianhe District, Guangzhou,           Wang Bin, Guo
                      General Partnership) China                                 Biyu(2018)

                      China Cheng Xin         Building 6, Yinhe SOHO, No.2
                      International Credit Nanzhugan Hutong, Dongcheng Not applicable             Fang Zibin         010-66428877
                      Rating Co. Ltd.         District, Beijing

                      China Securities Co.,
 Public Issuance of   Ltd. (principal         2/F, Block B, Kaiheng Center,
 Corporate Bonds to   underwriter/bookkee No.2 Chaoyangmennei Street,            Not applicable   Liu Renshuo        010-86451370
 Professional         ping                    Dongcheng District, Beijing
 Investors in 2021    manager/trustee)
 (Phase I) of                                 29/F, 10/F and 11/F (01-04
 Guandong Electric                            units), Chow Tai Fook Finance
 Power Development ETR Law Firm               Centre, NO.6 Zhujiang Dong         Not applicable   Wang Xing          020-37181333
 Co.,Ltd.                                     Road, Tianhe District
                                              Guangzhou City, Guangdong



- 124 -
                                                                   Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


                                               Province

                       PricewaterhouseCoo 18/F, PricewaterhouseCoopers            Wang Bin, Li
                       pers Zhongtian          Center, No.10 Zhujiang West        Yanhua
                       Certified Public        Road, Zhujiang New Town,           (2019-2020); Chin Junjun               020-38192645
                       Accountants (Special Tianhe District, Guangzhou,           Wang Bin, Guo
                       General Partnership) China                                 Biyu(2018)

                       China Cheng Xin         Building 5, Yinhe SOHO, No.2
                       International Credit Nanzhugan Hutong, Dongcheng Not applicable                Sheng Lei             010-66428877
                       Rating Co. Ltd.         District, Beijing

                                               North Block, Times Square
                                               Excellence (Phase II), No.8
                       CITIC Securities
                                               Zhongxin Third Road, Futian        Not applicable      Jian Qiongwen         13539997160
                       Co., Ltd
                                               District, Shenzhen City,
                                               Guangdong Province
 Public Issuance of
                       Zhongxi Certified       11/F, Block A, Xincheng Culture
 Corporate Bonds to
                       Public Accountants      Building, No.11                    Wei Shuzhen,
 Professional                                                                                         Fan Fengwei           18520643032
                       (Special General        Chongwenmenwai Street,             Fan Fengwei
 Investors in 2021
                       Partnership)            Beijing
 (Phase I) of
                       Shanghai Brilliance
 Guandong Huizhou                              14/F, Huasheng Building,
                       Credit Rating &
 Ping Power                                    No.398, Hankou Road,               Not applicable      Yu Liping             13641825613
                       Investors Service
 Generation Co.,Ltd.                           Shanghai
                       Co., Ltd.

                                               7/F, Block D, Qiaofufang
                       Beijing Dentons Law Grassland, No.9 Dongdaqiao
                                                                                  Not applicable      Lv Sihui              13692899924
                       Offices, LLP            Road, Chaoyang District,
                                               Beijing

Whether the above agency changes during the reporting period
□ Yes √No

4). Use of raised funds

                                                                                                                                   In RMB

                                                                                                       Rectification of Whether it is consistent with
                                                                                Operation of special
                                   Total amount                        Unused                            illegal use of    the purpose, use plan and
      Name of bond project                           Used amount                 account for raised
                                   of raised funds                     amount                           raised funds (if other agreements stipulated
                                                                                   funds (if any)
                                                                                                             any)               in the prospectus

 Public Issuance of Corporate
 Bonds to Qualified Investors in                                                The special
 2020 (Phase I) of Guandong        1,500,000,000 1,500,000,000 0                fund-raising account No                   Yes
 Electric Power Development                                                     operates properly
 Co.,Ltd.



- 125 -
                                                            Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


 Public Issuance of Corporate
 Bonds to Qualified Investors in                                         The special
 2021 (Phase I) of Guandong        1,000,000,000 1,000,000,000 0         fund-raising account No            Yes
 Electric Power Development                                              operates properly
 Co.,Ltd.

 Public Issuance of Corporate
 Bonds to Professional                                                   The special
 Investors in 2021 (Phase II) of 1,500,000,000 1,500,000,000 0           fund-raising account No            Yes
 Guandong Electric Power                                                 operates properly
 Development Co.,Ltd.

 Public Issuance of Corporate
 Bonds to Professional                                                   The special
 Investors in 2021 (Phase I) of     800,000,000   800,000,000 0          fund-raising account No            Yes
 Guandong Electric Power                                                 operates properly
 Development Co.,Ltd.

 Public Issuance of Corporate
 Bonds to Professional                                                   The special
 Investors in 2021 (Phase I) of     200,000,000   200,000,000 0          fund-raising account No            Yes
 Guandong Huizhou Ping                                                   operates properly
 Power Generation Co.,Ltd.

The raised funds are used for construction projects
□ Applicable √ Not applicable
During the reporting period, the Company changed the use of funds raised from the above bonds
□ Applicable √ Not applicable

5).Adjustment of credit rating results during the reporting period

□ Applicable √ Not applicable

6) The implementation and changes of guarantee, debt repayment plan and other debt repayment guarantee
measures during the reporting period and their impact on the rights and interests of bond investors

√ Applicable □ Not applicable
(1). Credit enhancement mechanism: 20 Yudean 01, 21 Yudean 01, 21 Yudean 02, 21 Yudean 03 and 21 Pinghai
Company 01 bonds are not guaranteed.
(2). Debt repayment plan and other debt repayment guarantee measures: 20 Yudean 01, 21 Yudean 01, 21 Yudean 02,
21 Yudean 03 and 21 Pinghai 01 debt repayment plans and other debt repayment guarantee measures have not
changed during the reporting period, and the payment of their principal and interest will be handled by the bond
registration institution and relevant institutions. The specific matters of payment will be elaborated in the
announcement disclosed by the issuer in the media specified by China Securities Regulatory Commission,
Shenzhen Stock Exchange, Shanghai Stock Exchange and China Securities Industry Association in accordance with
relevant regulations.



- 126 -
                                                                                                          Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


III. Debt financing instruments of non-financial enterprises

√ Applicable □ Not applicable

1. Debt financing instruments of non-financial enterprises

                                                                                                                                                                        In RMB

                                                                                                                                Interest
          Bond name           Bond short name      Bond code      Issue day     Value date      Due day        Bond balance                     Servicing way          Trading
                                                                                                                                 rate

                                                                                                                                           Using simple interest
                                                                                                                                           rate on a yearly basis,
                                                                                                                                           regardless of
                                                                                                                                           compound interest.
2021 MTN (Phase I) of
                                                                                                                                           Due payments once a         Interbank
Guangdong Electric Power    21Yudean Fa MTN001   102101339.IB   July 19,2021   July 21,2021   July 21,2024      1,200,000,000   3.17%
                                                                                                                                           year, maturing debt at a    market
Development     Co., Ltd.
                                                                                                                                           time. In the final phase,
                                                                                                                                           interest is paid together
                                                                                                                                           with the principal
                                                                                                                                           redemption.

                                                                                                                                           Using simple interest
                                                                                                                                           rate on a yearly basis,
                                                                                                                                           regardless of
                                                                                                                                           compound interest.
2021 MTN (Phase II) of
                                                                November       November       November                                     Due payments once a         Interbank
Guangdong Electric Power    21Yudean Fa MTN002   102102318.IB                                                   2,200,000,000   3.13%
                                                                15,2021        17,2021        17,2024                                      year, maturing debt at a    market
Development     Co., Ltd.
                                                                                                                                           time. In the final phase,
                                                                                                                                           interest is paid together
                                                                                                                                           with the principal
                                                                                                                                           redemption.

- 127 -
                                                                                                                            Guangdong Electric Power Development Co., Ltd. 2021 Annual Report


Guangdong Electric Power
Development       Co., Ltd.
                                                                         August, 23,      August, 24,        February                                          One time repayment of       Interbank
Co., Ltd.2021 second          21Yudean Fa SCP000         012280516.IB                                                          1,000,000,000.00     2.21%
                                                                         2021             2021               18,2022                                           principal and interest.     market
phase Ultra-short term
financing bills

Guangdong Electric Power
Development       Co., Ltd.
                                                                         February         February           August                                            One time repayment of       Interbank
Co., Ltd.2022 first phase     22Yudean Fa SCP001         012280516.IB                                                             1,200,000,000     2.01%
                                                                         14,2022          15,2022            12,2022                                           principal and interest.     market
Ultra-short term financing
bills

2021 MTN (Phase I) of                                                                                                                                          Annual interest
                              21 Ping Power                              October, 15,     October, 15,       October, 15,                                                                  Interbank
Guandong Huizhou Ping                                    102102049.IB                                                            300,000,000.00     3.72%      payment, one-time
                              MTN001                                     2021             2021               2024                                                                          market
Power Generation Co.,Ltd                                                                                                                                       principal repayment

During the reporting period, interest payment situation of the company
                                                                         No
bonds(If any)

                                                                         Circulation and transfer in the national inter-bank bond market, its listing and circ ulation will be carried out in
Applicable trading mechanism
                                                                         accordance with the relevant regulations promulgate d by the National Interbank Funding Center

Whether there are risks and countermeasures fo r terminating listing
                                                                         No
transactions(If any)




- 128 -
Overdue and unpaid bonds
□ Applicable √ Not applicable
2. Trigger and implementation of option clauses and investor protection clauses of the issuer or
investor
□ Applicable √ Not applicable
3.Information of intermediary agency

                         Name of                                                 Contact person of
    Name of bond                                               Name of signing
                       intermediary        Office Address                          intermediary            Tel
      project                                                    accountant
                          agency                                                      agency
                    Industry
                    Bank(lead            No.154, Hudong
                                                                                 Zhao Xinle, Liu     010-89926570、
                    principal            Road, Fuzhou,        Not applicable
                                                                                 Jingyi              020-38160153
                    underwriter/bookk    Fujian
                    eeping manager
                                         No. 55,
                    ICBC(joint lead      Fuxingmennei,
                                                              Not applicable     Sheng Xue           010-66106736
                    underwriter)         Street , Xicheng
                                         District , Beijing
                                         31,33, 36 and
                                         37/F, SK Building,
   2021 MTN
                    Beijing Zhong Lun    A6,
   (Phase I) of                                               Not Applicable     Liang Qinghua       020-28262689
                    Law Firm             Jianguomenwai
   Guangdong
                                         Street , Chaoyang
   Electric Power
                                         District, Beijing
   Development
   Co., Ltd.                             11/F,
                    PricewaterhouseC     PricewaterhouseC     Wang Bin, Li
                    oopers Zhongtian     oopers, No.2,        Yanhua
                    Certified Public     Enterprist
                                                              (2019-2020);    Wang Bin            021-23238888
                    Accountants          Building, No.202,
                                                              Wang Bin, Guo
                    (Special General     Hubin Road,
                    Partnership)         Huangpu District     Biyu(2018)
                                         Shanghai
                    Shanghai             14/f, Huasheng
                    Brilliance Credit    Building , No.398
                                                              Not applicable     Zhang Jie           18600048666
                    Rating & Investors   Hankou Road,
                    Service Co., Ltd.    Shanghai
                    Industry Bank
                                         No.154, Hudong
                    (lead principal                                              Zhao Xinle, Ye      010-89926570、
                                         Road,                Not applicable
                    underwriter/bookk                                            Huishan             020-38160153
                                         Fuzhou ,Fujian
                    eeping manager
                                         No. 55,
                    ICBC(joint lead      Fuxingmennei,
                                                              Not applicable     Sheng Xue           010-66106736
                    underwriter)         Street , Xicheng
                                         District , Beijing
   2021 MTN                              31,33, 36 and
   (Phase II) of                         37/F, SK Building,
   Guangdong        Beijing Zhong Lun    A6,
   Electric Power                                             Not Applicable     Liang Qinghua       020-28262689
                    Law Firm             Jianguomenwai
   Development                           Street , Chaoyang
   Co., Ltd.                             District, Beijing
                                         11/F,
                    PricewaterhouseC     PricewaterhouseC     Wang Bin , Li
                    oopers Zhongtian     oopers, No.2,        Yanhua
                    Certified Public     Enterprist
                                                              (2019-2020);    Wang Bin            021-23238888
                    Accountants          Building, No.202,
                                                              Wang Bin, Guo
                    (Special General     Hubin Road,
                    Partnership)         Huangpu District     Biyu(2018)
                                         Shanghai
                                            Guangdong Electric Power Development Co., Ltd. 2021 Annual Report



                        China CITIC Bank
                                             1 Building, No.10
                        Co., Ltd(lead
                                             Guanghua Road,
                        principal                                  Not applicable          Shen Xiangze         010-66635910
                                             Changyang
                        underwriter/bookk
                                             District , Beijing
                        eeping manager
                                             No.22,
                                             Jianguomenmei
                        Huaxia Bank(joint
                                             Street ,              Not applicable          Li Bailu             010-85237515
                        lead underwriter)
                                             Dongcheng
   Guangdong                                 District , Beijing
   Electric Power
   Development                               31,33, 36 and
   Co., Ltd.2022                             37/F, SK Building,
   first phase          Beijing Zhong Lun    A6,
                                                                   Not Applicable          Liang Qinghua        020-28262689
   Ultra-short term     Law Firm             Jianguomenwai
   financing bills                           Street , Chaoyang
                                             District, Beijing
                                             11/F,
                        PricewaterhouseC     PricewaterhouseC      Wang Bin,Li
                        oopers Zhongtian     oopers, No.2,         Yanhua
                        Certified Public     Enterprise
                                                                   (2019-2020);         Wang Bin             021-23238888
                        Accountants          Building, No.202,
                                                                   Wang Bin, Guo
                        (Special General     Hubin Road,
                        Partnership)         Huangpu District      Biyu(2018)
                                             Shanghai
Whether the above agency changes during the reporting period
□ Yes √No

4. Use of raised funds
                                                                                                           In RMB
                                                                                                                      Whether it is
                                                                                                                    consistent with
                                                                              Operation of       Rectification of     the purpose,
  Name of bond        Total amount of                                       special account       illegal use of      use plan and
                                        Used amount       Unused amount
    project            raised funds                                         for raised funds     raised funds (if         other
                                                                                 (if any)              any)            agreements
                                                                                                                    stipulated in the
                                                                                                                       prospectus
 2021 MTN
                                                                            The special
 (Phase I) of
                                                                            fund-raising
 Guangdong
                       1,200,000,000    1,200,000,000                  0    account              No                 Yes
 Electric Power
                                                                            operates
 Development
                                                                            properly
 Co., Ltd.
 2021 MTN
 (Phase II) of
 Guangdong
                       2,200,000,000    2,000,000,000         200,000,000   Not applicable       No                 Yes
 Electric Power
 Development
 Co., Ltd.
 Guangdong
 Electric Power
 Development
 Co., Ltd. Co.,
 Ltd.2021              1,000,000,000    1,000,000,000                  0    Not applicable       No                 Yes
 second phase
 Ultra-short
 term financing
 bills
 Guangdong
 Electric Power        1,200,000,000    1,200,000,000                  0    Not applicable       No                 Yes
 Development
 Co., Ltd.2022


- 130 -
                                          Guangdong Electric Power Development Co., Ltd. 2021 Annual Report



 first phase
 Ultra-short
 term financing
 bills
 2021 MTN
 (Phase I) of
 Guandong
 Huizhou Ping          300,000,000        300,000,000                   0   Not applicable     No                 Yes
 Power
 Generation
 Co.,Ltd
The raised funds are used for construction projects
√ Applicable □Not applicable
2Yudeanfa MTN001 raised RMB 1.2 billion, of which RMB 375 million was used to replace the
increased capital of its holding subsidiaries, that is, it was finally used to replace the paid-in capital
of key construction projects. RMB 250 million is used to replace the increased capital of
Guangdong Yudean Marina Bay Energy Co., Ltd., and finally used for the capital of the alternative
power supply project at Ningzhou plant site in Dongguan; RMB 125 million is used to replace the
increased capital of Guangdong Yudean Qujie Wind Power Generation Co., Ltd., and finally used
for the capital of phase II of Guangdong Yudean Zhanjiang Wailuo Offshore Wind Power Project. In
the main building installation project of the alternative power supply project at Ningzhou plant site
in Dongguan, the first concrete of the main plant foundation was poured in September 2021. The
construction of the project is progressing as planned. It is expected that the first unit will be put into
operation in March 2023, and the second and third units will be put into operation in June and
September of the same year. The Phase II of Guangdong Yudean Zhanjiang Wailuo Offshore Wind
Power Project was put into operation in December 2021, and the project was in good operation.
From January to February 2022, it achieved an operating income of RMB 66.0778 million and an
operating profit of RMB 27.3119 million.
During the reporting period, the Company changed the use of funds raised from the above bonds
□ Applicable √ Not applicable
5.Adjustment of credit rating results during the reporting period
□ Applicable √ Not applicable
6 The implementation and changes of guarantee, debt repayment plan and other debt repayment
guarantee measures during the reporting period and their impact on the rights and interests of bond
investors
√ Applicable □Not applicable
   1). 21Yudeanfa MTN001, 21Yudeanfa MTN002, 21Yudeanfa SCP002, 22Yudeanfa SCP001 and
21PingPower MTN001 are not guaranteed.
   2). The debt repayment plan of the above-mentioned debt financing instruments and other debt
repayment guarantee measures of the Company have not changed during the reporting period.

IV. Convertible bond

□ Applicable √ Not applicable
No such cases in the reporting period.

V. The loss within the scope of consolidated statements in the reporting period exceeded
10% of the net assets at the end of the previous year

√ Applicable □ Not applicable
                                                                                     Influence on the company's
                   Loss situation                          Reasons for loss
                                                                                       operation and solvency
 During the reporting period, the net profit within   Affected by the continuous     With assets of 100 billion
 the scope of the company's consolidated statement    rise in coal and gas prices,   yuan and strong solvency,


- 131 -
                                            Guangdong Electric Power Development Co., Ltd. 2021 Annual Report



 was RMB -4,472,695,268, which accounted for            company's power                  company has abundant
 10.25% of the net assets at the end of the previous    generation business              financing channels and
 year.                                                  suffered substantial losses.     sufficient credit, and can
                                                                                         make full use of internal and
                                                                                         external financial resources
                                                                                         to ensure capital needs.


VI.Overdue interest-bearing debts except bonds at the end of the reporting period

□ Applicable √ Not applicable

VII.Whether there are any violations of rules and regulations during the reporting period

□ Yes √ No

VIII. Main accounting data and financial indicators of the Company in recent two years by
the end of the reporting period

                                                                                                       In RMB10,000
                                                                    At the end of the           At the end of      At the same time
                              Items
                                                                    reporting period              last year         rate of change
 Current ratio                                                                          0.61               0.66              -7.58%
 Debt ratio                                                                        71.34%              56.14%                15.20%
 Quick ratio                                                                             0.5               0.57             -12.28%
                                                                                               Amount of last      At the same time
                                                                 Amount of this period
                                                                                                 period             rate of change
 Net profit after deducting non-recurring profit and loss                     -397,819.78           232,444.14             -271.15%
 EBITDA total debt ratio                                                               0.72%           16.83%               -16.11%
 Time interest earned ratio                                                            -2.23               3.49            -163.90%
 Cash interest guarantee times                                                         -0.02               4.94            -100.40%
 EBITDATime interest earned ratio                                                       0.35               5.98             -94.15%
 Repayment of debt (%)                                                           100.00%              100.00%                 0.00%
 Payment of interest (%)                                                         100.00%              100.00%                 0.00%




- 132 -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

FINANCIAL STATEMENTS AND
AUDITOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021

[English translation for reference only. Should there be any inconsistency between the
Chinese and English versions, the Chinese version shall prevail.]
 Guangdong Electric Power Development Co., Ltd.

 Financial Statements and Auditor's Report
 For the Year Ended 31 December 2021
 [English translation for reference only]



 Content                                                           Page

 Auditor’s Report                                                 135 - 142

 Financial statements for the year ended 31 December 2021

      Consolidated and company balance sheets                      143 - 146

      Consolidated and company income statements                   147 - 149

      Consolidated and company cash flow statements                150 - 152

      Consolidated statement of changes in shareholders’ equity   153 - 154

      Company statement of changes in shareholders’ equity        155 - 156

      Notes to the financial statements                            157 - 329

 Supplementary information to the financial statements             330 - 331




- 134 -
                              [English Translation for Reference Only]


                                         Auditor’s Report


                                                                PwC ZT Shen Zi (2022) No. 10033
                                                                                    (Page 1 of 7)

To the shareholders of Guangdong Electric Power Development Co., Ltd.,

Opinion

What we have audited

We have audited the accompanying financial statements of Guangdong Electric Power
Development Co., Ltd. (hereinafter “Guangdong Electric Power”), which comprise:

          the consolidated and company balance sheets as at 31 December 2021;
          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 shareholders’ 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
2021, and their financial performance and cash flows for the year then ended in accordance with
the requirements of 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 Matter

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.

Key audit matters identified in our audit are summarised as follows:
     Impairment of power related fixed assets




- 135 -
          Recognition of deferred tax assets related to deductible losses




- 136 -
                                                                     PwC ZT Shen Zi (2022) No. 10033
                                                                                        (Page 2 of 7)

Key Audit Matter (Cont’d)

Key Audit Matter                                      How our audit addressed the Key Audit Matter
(1) Impairment of power related fixed assets          Our audit procedures for the impairment of
                                                      power related fixed assets mainly include:
Refer to Note 2(27)(b)(i) and Note 4(12)(a)(vi) to
the financial statements.                                 We understood and evaluated the internal
                                                          control relevant to the impairment test of fixed
Certain subsidiaries of Guangdong Electric                assets and tested the operating effectiveness of
Power have been experiencing continuous                   key control;
operating losses in recent years. Taking into
account possible future risks, such as the                We involved internal valuers to review and
instability of electricity demand, the unstable           analyse the appropriateness of the method
price of coal used in power generation, the               applied by management for the impairment test;
macro-economy and other risk factors,
management       continuously    assesses   the           Based on our understanding of the businesses of
impairment of the fixed assets of the above               the subsidiaries as well as the industry in which
subsidiaries.                                             they operate, we compared with and analysed the
                                                          assumptions adopted by management, including
                                                          the discount rate, the growth rate of the
As at 31 December 2021, management conducted
                                                          estimated on-grid price, the growth rate of the
impairment tests for the fixed assets of the              estimated electricity sale, and the growth rate of
aforesaid subsidiaries, and made a provision for          the estimated price of coal used in power
impairment at the excess of the carrying amount           generation; we evaluated the reasonableness of
of asset groups of generator units over their             the assumptions on fair value less costs to sell
recoverable amount. The recoverable amount of             and the present value of the future cash flows
the asset groups was the higher of the fair value,        expected to be derived from them:
less costs to sell, of the asset groups and the
present value of the future cash flows expected to    -   For the discount rate, we involved internal
be derived from them. The calculations of the             valuers to evaluate the appropriateness in
present value of the future cash flows expected to        combination with industry situation;
be derived from them involve management’s
significant judgements, including the discount        -   For the growth rate of the estimated on-grid
rate, the growth rate of the estimated on-grid            electricity price and the growth rate of the
                                                          estimated price of coal used in power generation,
electricity price, the growth rate of the estimated
                                                          we compared historical growth rates and industry
electricity sale and the growth rate of the               data, and considered market trend;
estimated price of coal used in power generation.
                                                      -   For the growth rate of the estimated electricity
                                                          sale, we have compared         historical data,
                                                          approved budgets and business plans, and
                                                          checked    the    corresponding      supporting
                                                          documents;




- 137 -
                                                                      PwC ZT Shen Zi (2022) No. 10033
                                                                                         (Page 3 of 7)

Key Audit Matter (Cont’d)

Key Audit Matter (Cont’d)                             How our audit addressed the Key Audit Matter
                                                       (Cont’d)
(i) Impairment of power related fixed assets           Our audit procedures for the impairment of
(Cont’d)                                              power related fixed assets (Cont’d):

As the carrying amounts of fixed assets with              We checked the input data and formulas used in
indication of impairment are significant to the           the calculation of the present value of future cash
consolidated financial statements of Guangdong            flows expected to be derived from them, and
Electric Power, and the impairment test of asset          evaluated the mathematic accuracy;
groups of generator units involves management’s
significant estimates and judgements, impairment
                                                          We conducted sensitivity analysis on the discount
of power related fixed assets is identified as a key
                                                          rate and other key assumptions applied by
audit matter.
                                                          management, and evaluated how the changes in
                                                          key assumptions (individually or in aggregate)
                                                          will give rise to different results to further
                                                          evaluate if there’s any indication of management
                                                          bias in selecting parameters of key assumptions.

                                                       Based on the results of the aforesaid work, we found
                                                       that management's judgements and estimates on the
                                                       impairment of fixed assets are supported by
                                                       appropriate evidence.

(ii) Recognition of deferred tax assets related to     Our audit procedures for the recognition of
deductible losses                                      deferred tax assets related to deductible losses
                                                       mainly include:
Refer to Note 2(27)(b)(iii) and Note 4(18) to the
financial statements.                                     We obtained management's calculation sheet for
                                                          the financial forecast in future periods, checked
As at 31 December 2021, Guangdong Electric                the input data and formulas used in the
Power recognised the corresponding deferred tax           calculation, and evaluated the mathematic
assets for the deductible losses incurred by              accuracy;
individual subsidiaries at a total of RMB
758,900,259.
                                                          We obtained supporting documents such as the
                                                          income tax settlement report, tax returns and
According to the financial forecast of the aforesaid
                                                          accounting records of the aforesaid subsidiaries,
subsidiaries in future periods, management
                                                          and reviewed for the existence of deductible losses
recognises deferred tax assets within the limits of
                                                          and the accuracy of the amount and period;
which the aforesaid subsidiaries are likely to
obtain future taxable income to offset the
deductible losses. The financial forecast of the          Based on our understanding of the businesses of
aforesaid subsidiaries in future periods involves         the aforesaid subsidiaries and the industry in
significant management judgements, including              which they operate, and combined with industry
estimated electricity sale, estimated on-grid             development trend and historical operating
electricity price, estimated price of coal used in        performance, we evaluated the key assumptions
power generation and other operating expenses.            used by management to calculate the expected
                                                          taxable income for future periods, including the
                                                          reasonableness of assumptions on estimated
                                                          electricity sale, estimated on-grid electricity price,
                                                          estimated fuel price, and other operating
                                                          expenses;




  - 138 -
                                                                            PwC ZT Shen Zi (2022) No. 10033
                                                                                               (Page 4 of 7)

Key Audit Matter (Cont’d)

Key Audit Matter (Cont’d)                                   How our audit addressed the Key Audit Matter
                                                             (Cont’d)
(ii) Recognition of deferred tax assets related to           Our audit procedures for the recognition of
deductible losses (Cont’d)                                  deferred tax assets related to deductible losses
                                                             mainly include (Cont’d):
As the deferred tax assets related to deductible losses
are significant to the consolidated financial statements        We compared the taxable income estimated by
of Guangdong Electric Power, and the financial                  management last year with the actual taxable
forecast for future periods involves management’s              income for the current year to access the
significant estimates and judgements, the recognition           historical accuracy of management’s forecast;
of the deferred tax assets related to deductible losses is
identified as a key audit matter.
                                                                We reviewed whether the deferred tax assets were
                                                                recognised within the limits of which the taxable
                                                                income was likely to be obtained in the future to
                                                                offset deductible losses and deductible temporary
                                                                differences.

                                                             Based on the results of the above work, we found that
                                                             management's estimates regarding the recognition of
                                                             deferred tax assets related to deductible losses were
                                                             supported by appropriate evidence.




- 139 -
                                                                   PwC ZT Shen Zi (2022) No. 10033
                                                                                       (Page 5 of 7)

Other Information

Management of Guangdong Electric Power is responsible for the other information. The other
information comprises all of the information included in 2021 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 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.




- 140 -
                                                                       PwC ZT Shen Zi (2022) No. 10033
                                                                                           (Page 6 of 7)

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 (including the disclosures), structure and content of the
          financial statements, 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.




- 141 -
                                                                 PwC ZT Shen Zi (2022) No. 10033
                                                                                     (Page 7 of 7)

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
                                                                      ______________________
                                                                                      Chen Junjun
                                                                               (Engagement Partner)
Shanghai, the People’s Republic of China
20 April 2022
                                                     Signing CPA

                                                                      ______________________
                                                                                Li Xiaolei




- 142 -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

                ASSETS                              Note    31 December 2021    31 December 2020
                                                                                       (Restated)

Current assets
  Cash at bank and on hand                          4(1)        8,105,320,953       9,438,414,350
  Notes receivables                                                   165,603                   -
  Accounts receivables                              4(2)        7,030,685,357       5,287,149,592
  Advances to suppliers                             4(3)          892,771,238         784,843,451
  Other receivables                                 4(4)        2,429,475,558         518,641,769
  Inventories                                       4(5)        2,998,894,539       1,683,995,018
  Contract assets                                   4(6)            4,754,820           3,342,276
  Current portion of non-current
     assets                                         4(7)                    -          49,785,734
  Other current assets                              4(8)        1,417,985,608         676,347,330
Total current assets                                           22,880,053,676      18,442,519,520

Non-current assets
  Long-term equity investments                      4(9)        8,072,208,350       7,297,733,122
  Investments in other equity
     instruments                                    4(10)       3,232,028,682       3,548,888,015
  Investment properties                             4(11)         378,796,932         131,191,258
  Fixed assets                                      4(12)      56,943,126,256      54,492,626,175
  Construction in progress                          4(13)       8,634,727,069       9,254,620,377
  Right-of-use assets                               4(14)       5,256,124,979                  —
  Intangible assets                                 4(15)       2,658,726,346       2,516,305,612
  Goodwill                                          4(16)         139,983,037           2,449,886
  Long-term prepaid expenses                        4(17)          30,335,301          28,344,969
  Deferred tax assets                               4(18)       1,235,089,217         504,657,706
  Other non-current assets                          4(19)       4,810,251,634       3,260,436,522
Total non-current assets                                       91,391,397,803      81,037,253,642

TOTAL ASSETS                                                  114,271,451,479      99,479,773,162




- 143 -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

CONSOLIDATED BALANCE SHEET (CONT’D)
AS AT 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
        LIABILITIES AND
     SHAREHOLDERS’ EQUITY                          Note    31 December 2021        31 December 2020
                                                                                           (Restated)

Current liabilities
  Short-term borrowings                             4(21)      12,360,296,429            7,916,440,888
  Notes payables                                    4(22)       1,908,780,000            1,252,292,546
  Accounts payables                                 4(23)       6,626,567,064            3,400,384,808
  Contract liabilities                              4(24)           5,864,811                8,424,399
  Employee benefits payable                         4(25)         422,013,230              360,196,774
  Taxes payable                                     4(26)         502,303,075              580,900,006
  Other payables                                    4(27)      10,569,763,778            7,814,572,869
  Current portion of non-current
     liabilities                                    4(28)       3,697,619,753           3,322,121,935
  Other current liabilities                         4(29)       1,658,449,006           3,217,523,576
Total current liabilities                                      37,751,657,146          27,872,857,801

Non-current liabilities
  Long-term borrowings                              4(30)      28,940,577,856          21,922,680,540
  Debentures payable                                4(31)       8,693,083,422           1,499,542,911
  Lease liabilities                                 4(32)       4,728,167,142                      —
  Long-term payables                                4(33)         121,779,223           3,266,131,306
  Deferred income                                   4(34)         163,611,515             171,652,762
  Long-term employee benefits
     payable                                        4(35)         415,480,262             278,637,302
  Deferred tax liabilities                          4(18)         635,754,761             638,572,671
  Other non-current liabilities                     4(36)          75,469,729             200,970,029
Total non-current liabilities                                  43,773,923,910          27,978,187,521

Total liabilities                                              81,525,581,056          55,851,045,322

Shareholders' equity
  Share capital                                     4(37)           5,250,283,986        5,250,283,986
  Capital surplus                                   4(38)           4,295,429,055        8,014,211,278
  Other comprehensive income                        4(39)           1,750,011,571        1,957,175,481
  Surplus reserve                                   4(40)           8,903,515,135        8,515,360,638
  Undistributed profits                             4(41)           2,985,840,058        8,083,048,238
  Total equity attributable to
     shareholders of the Company                               23,185,079,805          31,820,079,621
  Minority interests                                            9,560,790,618          11,808,648,219

Total shareholders’ equity                                    32,745,870,423          43,628,727,840

TOTAL LIABILITIES AND
  SHAREHOLDERS’ EQUITY                                       114,271,451,479          99,479,773,162


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




- 144 -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

                ASSETS                              Note    31 December 2021    31 December 2020

Current assets
  Cash at bank and on hand                                        708,028,634        338,045,631
  Accounts receivables                              15(1)         192,707,778        173,029,247
  Advances to suppliers                                            26,368,250         26,680,500
  Other receivables                                 15(2)         415,990,566        328,224,857
  Inventories                                                     216,808,997        118,530,205
  Other current assets                                             21,453,621          1,209,217
Total current assets                                            1,581,357,846        985,719,657

Non-current assets
  Long-term receivables                                           627,000,000         467,000,000
  Long-term equity investments                      15(3)      36,539,978,077      28,453,042,855
  Investments in other equity
     instruments                                                3,231,228,683       3,548,088,015
  Investment properties                                             5,754,247           6,389,845
  Fixed assets                                                    436,327,041         559,635,880
  Construction in progress                                          1,201,126             200,574
  Right-of-use assets                                               8,125,410                  —
  Intangible assets                                                80,670,784          81,954,649
  Other non-current assets                                        136,500,000         208,353,879
Total non-current assets                                       41,066,785,368      33,324,665,697

TOTAL ASSETS                                                   42,648,143,214      34,310,385,354




- 145 -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

COMPANY BALANCE SHEET (CONT’D)
AS AT 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

      TOTAL LIABILITIES AND
        OWNERS’ EQUITY                             Note    31 December 2021       31 December 2020

Current liabilities
  Short-term borrowings                                          2,442,508,111          1,902,013,125
  Accounts payables                                                214,080,378            136,723,162
  Contract liabilities                                               1,083,950              6,343,773
  Employee benefits payable                                        105,045,040             93,479,997
  Taxes payable                                                      8,288,884             28,112,055
  Other payables                                                 2,535,329,957             40,872,386
  Current portion of non-current
     liabilities                                                   125,174,953            836,189,634
  Other current liabilities                                      1,030,040,123          3,217,281,173
Total current liabilities                                        6,461,551,396          6,261,015,305

Non-current liabilities
  Debentures payable                                             8,193,949,060          1,499,542,911
  Lease liabilities                                                  4,251,838                     —
  Deferred income                                                   19,992,404             29,988,606
  Long-term employee benefits
     payable                                                        68,648,773             56,805,513
  Deferred tax liabilities                                         562,112,354            621,507,946
Total non-current liabilities                                    8,848,954,429          2,207,844,976

Total liabilities                                               15,310,505,825          8,468,860,281

Shareholders' equity
  Share capital                                                  5,250,283,986          5,250,283,986
  Capital surplus                                                4,834,039,575          5,405,326,643
  Other comprehensive income                                     1,764,421,309          1,946,305,595
  Surplus reserve                                                8,903,515,135          8,515,360,638
  Undistributed profits                                          6,585,377,384          4,724,248,211

Total shareholders’ equity                                     27,337,637,389        25,841,525,073

TOTAL LIABILITIES AND
  SHAREHOLDERS’ EQUITY                                         42,648,143,214        34,310,385,354


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




- 146 -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
                            Item                           Note                2021               2020
                                                                                             (Restated)

Revenue                                                    4(42)     44,167,223,887      33,602,895,865
Less: Cost of sale                                         4(42)   (46,814,800,682)    (26,644,882,602)
      Taxes and surcharges                                 4(43)      (293,980,076)       (305,713,780)
      Selling expenses                                     4(44)        (65,407,040)        (58,905,940)
      General and administrative expenses                  4(45)    (1,101,123,287)     (1,019,221,183)
      Research and development expenses                    4(46)      (584,714,979)       (324,923,064)
      Financial expenses                                   4(47)    (1,371,365,945)     (1,240,992,920)
        Including: Interest expenses                                  1,499,997,783       1,280,509,064
                   Interest income                                      133,800,923         133,361,021
Add: Other income                                          4(51)          72,653,517          55,721,750
      Investment income                                    4(52)        834,004,341         354,858,460
        Including: Share of profit of associates and
                      joint ventures                                   741,825,985          289,336,338
      Credit impairment (loss)/reversal                    4(50)       (21,767,857)              27,827
      Asset impairment losses                              4(49)       (29,330,461)       (501,980,141)
      Gains on disposals of assets                         4(53)       184,589,025          340,951,037

Operating (loss)/profit                                             (5,024,019,557)      4,257,835,309
Add: Non-operating income                                  4(54)        139,092,875        104,562,458
Less: Non-operating expenses                               4(55)      (171,458,731)      (114,974,255)

Total (loss)/profit                                                 (5,056,385,413)       4,247,423,512
Less: Income tax expenses                                  4(56)        583,690,145     (1,047,749,330)

Net (loss)/profit                                                   (4,472,695,268)      3,199,674,182
       Including: Net (loss)/profit of the acquiree in a
                    business combination under
                    common control before the
                    combination date                       5(3)       (658,714,842)        559,324,501




- 147 -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

CONSOLIDATED INCOME STATEMENT (CONT’D)
FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

                           Item                            Note                  2021                2020
                                                                                                (Restated)

   Classified by continuity of operations
     Net (loss)/profit from continuing operations                      (4,472,695,268)      3,199,674,182
     Net profit from discontinued operations                                         -                  -

   Classified by ownership of the equity
     Net (loss)/profit attributable to shareholders of
        the Company                                                    (3,147,754,234)      2,053,909,956
     Minority interests                                                (1,324,941,034)      1,145,764,226

Other comprehensive income, net of tax                                  (222,990,915)         281,309,856
  Attributable to shareholders of the Company             4(39)         (206,788,258)         281,309,856
    Other comprehensive income that will not be
        reclassified to profit or loss
          Changes arising from remeasurement of
             defined benefit plans                                       (37,296,993)                      -
          Share of other comprehensive income of
             the investee accounted for using
             equity method that will not be
             reclassified to profit or loss                                15,609,735          29,726,146
          Changes in fair value of investments in
             other equity instruments                                   (184,768,848)         251,985,062
    Other comprehensive income that will be
        reclassified to profit or loss
          Share of other comprehensive income of
             the investee accounted for using
             equity method that will be reclassified
             to profit or loss                                              (332,152)           (401,352)
    Attributable to minority interests                                   (16,202,657)                   -

Total comprehensive income                                             (4,695,686,183)      3,480,984,038

   Attributable to shareholders of the Company                         (3,354,542,492)      2,335,219,812
   Attributable to minority interests                                  (1,341,143,691)      1,145,764,226

Earnings per share
  Basic earnings per share (RMB Yuan)                     4(57)                 (0.60)               0.39
  Diluted earnings per share (RMB Yuan)                   4(57)                 (0.60)               0.39


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




- 148 -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

COMPANY INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

                         Item                          Note                    2021                2020

Revenue                                                15(4)           1,593,822,545       1,221,597,027
Less: Cost of sale                                     15(4)         (1,911,951,135)     (1,161,627,038)
      Taxes and surcharges                                                (7,710,134)        (14,120,096)
      Selling expenses                                                    (2,842,664)         (2,949,082)
      General and administrative expenses                              (145,466,208)       (149,616,128)
      Research and development expenses                                  (20,455,799)         (9,814,665)
      Financial expenses                                               (264,631,340)       (212,937,750)
        Including: Interest expenses                                     267,141,416         217,096,206
                   Interest income                                          6,119,603           5,070,493
Add: Other income                                                          10,117,324          10,079,699
      Investment income                                15(5)           3,419,054,733       1,576,864,127
        Including: Share of profit of associates
                      and joint ventures                                697,838,523         230,001,917
      Credit impairment reversal/(loss)                15(6)                  58,102            (37,463)
      Asset impairment losses                          15(7)            (29,321,084)      (162,336,342)
      Gains on disposals of assets                                                 -            157,963

Operating profit                                                      2,640,674,340       1,095,260,252
Add: Non-operating income                                               242,648,802          23,324,983
Less: Non-operating expenses                                             (2,738,153)         (5,196,433)

Total profit                                                          2,880,584,989       1,113,388,802
Less: Income tax expenses                                                (2,319,241)         (4,375,956)

Net profit                                                            2,878,265,748       1,109,012,846

   Classified by continuity of operations
     Net profit from continuing operations                            2,878,265,748       1,109,012,846
     Net profit from discontinued operations                                      -                   -

Other comprehensive income, net of tax                                (181,508,634)         270,162,551
       Other comprehensive income that will not
         be reclassified to profit or loss
         Changes arising from remeasurement of
            defined benefit plans                                        (9,126,313)                    -
         Share of other comprehensive income of
            the investee accounted for using
            equity method that will not be
            reclassified to profit or loss                               12,718,679          18,578,841
         Changes in fair value of investments in
            other equity instruments                                  (184,768,848)         251,985,062
       Other comprehensive income that will be
         reclassified to profit or loss
         Share of other comprehensive income of
            the investee accounted for using
            equity method that will be reclassified
            to profit or loss                                              (332,152)           (401,352)

Total comprehensive income                                            2,696,757,114       1,379,175,397


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




- 149 -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

                      Item                           Note                 2021              2020
                                                                                       (Restated)

Cash flows from operating activities
  Cash received from sale of goods or
     rendering of services                                      48,379,830,401     36,882,332,064
  Refund of taxes and surcharges                                   119,312,074        126,032,892
  Cash received relating to other
     operating activities                           4(58)(a)       272,691,582        249,987,185
  Sub-total of cash inflows                                     48,771,834,057     37,258,352,141

   Cash paid for goods and services                            (43,630,281,266)   (23,538,607,827)
   Cash paid to and on behalf of
     employees                                                  (2,571,733,835)    (2,252,105,494)
   Payments of taxes and surcharges                             (1,699,308,834)    (2,864,098,094)
   Cash paid relating to other operating
     activities                                     4(58)(b)      (910,814,133)      (848,742,090)
   Sub-total of cash outflows                                  (48,812,138,068)   (29,503,553,505)
   Net cash flows (used in)/from
     operating activities                           4(59)(a)       (40,304,011)     7,754,798,636

Cash flows from investing activities
  Cash received from returns on
     investments                                                   388,877,407        526,863,991
  Net cash received from disposals of
     fixed assets, intangible assets and
     other long-term assets                                      1,656,570,070        337,225,431
  Net cash received from disposals of
     subsidiaries and other business
     units                                                           2,479,531                   -
  Cash received relating to other
     investing activities                           4(58)(c)       162,478,679         33,734,619
  Sub-total of cash inflows                                      2,210,405,687        897,824,041

   Cash paid to acquire fixed assets,
     intangible assets and other
     long-term assets                                          (10,732,326,573)    (8,346,080,783)
   Cash paid to acquire investments                               (343,850,820)      (796,075,842)
   Net cash paid to acquire subsidiaries
     and other business units                       4(59)(b)       (76,574,154)       (40,880,216)
   Cash paid relating to other investing
     activities                                     4(58)(d)      (188,815,562)      (150,978,073)
   Sub-total of cash outflows                                  (11,341,567,109)    (9,334,014,914)
   Net cash flows used in investing
     activities                                                 (9,131,161,422)    (8,436,190,873)




- 150 -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

CONSOLIDATED CASH FLOW STATEMENT (CONT'D)
FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
                     Item                            Note                  2021                  2020
                                                                                            (Restated)

Cash flows from financing activities
  Cash received from capital
     contributions                                                  131,187,000              4,400,000
  Including: Cash received from capital
                contributions by minority
                shareholders of
                subsidiaries                                       131,187,000               4,400,000
  Cash received from borrowings                                 32,180,925,115          24,104,314,639
  Cash received from issuance of
     debentures                                                  7,192,751,240           1,499,471,698
  Sub-total of cash inflows                                     39,504,863,355          25,608,186,337

   Cash repayments of borrowings                               (25,537,837,322)        (20,646,826,624)
   Cash payments for distribution of
      dividends, profits or interest
      expenses                                                  (4,635,028,385)         (3,017,438,398)
   Including: Dividends or profits paid to
                 minority shareholders by
                 subsidiaries                                   (1,548,524,814)          (553,064,594)
   Cash paid relating to other financing
      activities                                    4(58)(e)    (1,542,497,576)           (204,318,526)
   Sub-total of cash outflows                                  (31,715,363,283)        (23,868,583,548)
   Net cash flows from financing
      activities                                                   7,789,500,072         1,739,602,789

Effect of foreign exchange rate
  changes on cash and cash
  equivalents                                                              (309)                   (27)

Net (decrease)/increase in cash and
 cash equivalents                                   4(59)(a)    (1,381,965,670)          1,058,210,525
  Add: Cash and cash equivalents at
           the beginning of the year                               9,405,082,609         8,346,872,084

Cash and cash equivalents at the end
 of the year                                        4(59)(c)       8,023,116,939         9,405,082,609


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




- 151 -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

COMPANY CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
                            Item                                           2021                    2020

Cash flows from operating activities
  Cash received from sale of goods or rendering of
     services                                                      1,751,398,147          1,418,456,795
  Cash received relating to other operating activities                33,327,861             37,621,882
  Sub-total of cash inflows                                        1,784,726,008          1,456,078,677

   Cash paid for goods and services                            (1,815,409,475)             (920,870,342)
   Cash paid to and on behalf of employees                       (318,336,325)             (314,966,765)
   Payments of taxes and surcharges                               (38,149,853)              (81,690,906)
   Cash paid relating to other operating activities               (57,513,608)              (68,583,529)
   Sub-total of cash outflows                                  (2,229,409,261)           (1,386,111,542)
   Net cash flows (used in)/from operating activities            (444,683,253)                69,967,135

Cash flows from investing activities
  Cash received from disposals of investments                        240,000,000             66,460,000
  Cash received from returns on investments                        2,005,221,164          1,761,030,730
  Net cash received from disposals of fixed assets,
     intangible assets and other long-term assets                      1,539,098              2,420,190
  Sub-total of cash inflows                                        2,246,760,262          1,829,910,920

   Cash paid to acquire fixed assets, intangible assets
     and other long-term assets                                   (25,572,026)              (20,279,906)
   Cash paid to acquire investments                            (2,771,449,351)           (2,654,476,711)
   Net cash paid to acquire the subsidiary                     (2,042,164,731)              (49,680,900)
   Sub-total of cash outflows                                  (4,839,186,108)           (2,724,437,517)
   Net cash flows used in investing activities                 (2,592,425,846)             (894,526,597)

Cash flows from financing activities
  Cash received from borrowings                                 4,838,375,167             7,098,860,667
  Cash received from issuance of debentures                     6,699,600,000             1,499,471,698
  Sub-total of cash inflows                                    11,537,975,167             8,598,332,365

   Cash repayments of borrowings                               (7,300,000,001)           (6,840,306,500)
   Cash payments for distribution of dividends, profits or
     interest expenses                                           (824,679,178)             (819,130,127)
   Cash paid relating to other financing activities                 (6,524,929)                (794,907)
   Sub-total of cash outflows                                  (8,131,204,108)           (7,660,231,534)
   Net cash flows from financing activities                      3,406,771,059               938,100,831

Effect of foreign exchange rate changes on cash
  and cash equivalents                                                     (309)                    (27)

Net increase in cash and cash equivalents                           369,661,651             113,541,342
   Add: Cash and cash equivalents at the beginning of
           the year                                                 338,045,631             224,504,289

Cash and cash equivalents at the end of the year                    707,707,282             338,045,631


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




- 152 -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

                                         Note                            Attributable to shareholders of the Company
                                                                                                Other                                                                  Total
                                                                                       comprehensive            Surplus    Undistributed           Minority    shareholders’
                                                    Share capital   Capital surplus           income            reserve           profits         interests           equity


Balance at 1 January 2021                           5,250,283,986    8,014,211,278     1,957,175,481      8,515,360,638    8,083,048,238    11,808,648,219    43,628,727,840

Movements for the year ended 31
   December 2021
Total comprehensive income

     Net loss                                                   -                 -                -                  -   (3,147,754,234)   (1,324,941,034)   (4,472,695,268)
     Other comprehensive income           4(39)                 -                 -    (206,788,258)                  -                 -      (16,202,657)     (222,990,915)
     Total comprehensive income for
      the year                                                  -                 -    (206,788,258)                  -   (3,147,754,234)   (1,341,143,691)   (4,695,686,183)
Capital contribution and withdrawal by
   shareholders
     Capital contribution by equity
      owners                                                    -                -                 -                  -                 -      249,001,517       249,001,517
     Others                                                     -       19,435,795                 -                  -                 -      392,809,387       412,245,182
Business combinations involving
   enterprises under common control      5(3)(b)                -   (3,743,601,641)                -                  -                 -                 -   (3,743,601,641)
Profit distribution
  Appropriation to surplus reserve        4(40)                 -                 -                -       388,154,497     (388,154,497)                  -                 -

  Distribution to shareholders           4(41)(b)               -                 -                -                  -   (1,560,317,476)   (1,548,524,814)   (3,108,842,290)
Share of interests in associates in
   proportion to the shareholding         4(38)                 -        5,383,623                 -                  -                 -                 -        5,383,623
Transfer within shareholders' equity
  Transfer of other comprehensive
     income to retained earnings                                -                 -        (375,652)                  -           375,652                 -                 -
Others                                                          -                 -                -                  -       (1,357,625)                 -       (1,357,625)

Balance at 31 December 2021                         5,250,283,986    4,295,429,055     1,750,011,571      8,903,515,135    2,985,840,058     9,560,790,618    32,745,870,423




- 153 -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (CONT’D)
FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

                                         Note                            Attributable to shareholders of the Company
                                                                                                Other                                                                Total
                                                                                       comprehensive            Surplus   Undistributed          Minority    shareholders’
                                                    Share capital   Capital surplus           income            reserve          profits        interests           equity

Balance at 31 December 2019                         5,250,283,986    5,096,918,174     1,676,143,044      8,245,767,593   5,909,128,280     8,011,444,289   34,189,685,366
    Business combinations involving
     enterprises under common
     control                                                    -    3,098,073,346         (277,419)                  -   1,050,513,006     3,182,157,171    7,330,466,104
Balance at 1 January 2020                           5,250,283,986    8,194,991,520     1,675,865,625      8,245,767,593   6,959,641,286    11,193,601,460   41,520,151,470

Movements for the year ended 31
   December 2020
Total comprehensive income
     Net profit                                                 -                 -                -                  -   2,053,909,956     1,145,764,226    3,199,674,182
     Other comprehensive income          4(39)                  -                 -      281,309,856                  -               -                 -      281,309,856
     Total comprehensive income for
      the year                                                  -                 -      281,309,856                  -   2,053,909,956     1,145,764,226    3,480,984,038
Capital contribution and withdrawal by
   shareholders
     Others                                                     -       13,874,018                 -                  -                -      22,347,127        36,221,145
Profit distribution
  Appropriation to surplus reserve       4(40)                  -                 -                -       269,593,045    (269,593,045)                 -                 -
  Distribution to shareholders                                  -                 -                -                 -    (660,909,959)     (553,064,594)   (1,213,974,553)
Share of interests in associates in
  proportion to the shareholding         4(38)                  -     (194,654,260)                -                  -                -                -    (194,654,260)

Balance at 31 December 2020                         5,250,283,986    8,014,211,278     1,957,175,481      8,515,360,638   8,083,048,238    11,808,648,219   43,628,727,840



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




- 154 -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

COMPANY STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

                                                                                              Other                                                    Total
                                                                                      comprehensive                       Undistributed        shareholders’
                                          Note      Share capital   Capital surplus         income      Surplus reserve          profits              equity

Balance at 1 January 2021                           5,250,283,986    5,405,326,643     1,946,305,595      8,515,360,638   4,724,248,211        25,841,525,073

Movements for the year ended 31
   December 2021
Total comprehensive income
     Net profit                                                 -                 -                -                  -   2,878,265,748         2,878,265,748
     Other comprehensive income                                 -                 -    (181,508,634)                  -               -         (181,508,634)
     Total comprehensive income for
      the year                                                  -                 -     (181,508,634)                 -   2,878,265,748    -    2,696,757,114
Capital contribution and withdrawal by
   shareholders
       Capital withdrawal by
shareholders                                                    -     (576,670,691)                 -                 -                -        (576,670,691)
Profit distribution                                                                                                                                         -
     Appropriation to surplus reserve     4(40)                 -                 -                 -      388,154,497    (388,154,497)                     -
     Distribution to shareholders        4(41)(b)               -                 -                 -                -    (630,034,078)         (630,034,078)
Share of interests in associates in
   proportion to the shareholding         4(38)                 -        5,383,623                  -                 -                -            5,383,623
Transfer within shareholders' equity
     Transfer of other comprehensive
     income to retained earnings                                -                 -         (375,652)                 -         375,652                    -
Others                                                          -                 -                 -                 -         676,348              676,348

Balance at 31 December 2021                         5,250,283,986    4,834,039,575     1,764,421,309      8,903,515,135   6,585,377,384        27,337,637,389




- 155 -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

COMPANY STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (CONT’D)
FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]

                                                                                                        Other                                               Total
                                                                                                comprehensive                      Undistributed    shareholders’
                                                    Note      Share capital   Capital surplus         income     Surplus reserve          profits          equity

Balance at 1 January 2020                                     5,250,283,986    5,599,980,903     1,676,143,044     8,245,767,593   4,514,862,488    25,287,038,014

Movements for the year ended 31 December
   2020
Total comprehensive income
     Net profit                                                           -                 -                -                 -   1,109,012,846     1,109,012,846
     Other comprehensive income                                           -                 -      270,162,551                 -               -       270,162,551
  Total comprehensive income for the year                                 -                 -      270,162,551                 -   1,109,012,846     1,379,175,397
Profit distribution
     Appropriation to surplus reserve               4(40)                 -                 -                -      269,593,045    (269,593,045)                 -
     Distribution to shareholders                                         -                 -                -                -    (630,034,078)     (630,034,078)
Share of interests in associates in proportion to
  the shareholding                                  4(38)                 -     (194,654,260)                -                 -                -    (194,654,260)

Balance at 31 December 2020                                   5,250,283,986    5,405,326,643     1,946,305,595     8,515,360,638   4,724,248,211    25,841,525,073



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




- 156 -
    GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

    NOTES TO THE FINANCIAL STATEMENTS
    FOR THE YEAR ENDED 31 DECEMBER 2021
    (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”) 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 2021, the total share capital of the Company was
    RMB 5,250,283,986 with par value of RMB 1 per share.

    On 8 October 2021, the Tenth Session of the Board approved the Proposal on the Acquisition of
    Equity Interests in Guangdong Province Sha C Company Generation Corporation and Other
    Companies during its 3rd meeting. In order to deepen the reform of mixed ownership of
    state-owned enterprises, enhance the Company’s market competitiveness and anti-risk ability,
    promote the gradual resolution of horizontal competition issues, promote the capital operation and
    market value management of listed companies, comply with the requirements of building a new
    power system, and speed up the implementation of Guangdong Electric Power's "14th five-year
    Plan" development strategy, the Board of Directors agreed that the Company acquired 51% equity
    interests of Guangdong Province Sha C Company Generation Corporation ("Sha C Company"),
    90% equity interests of Guangdong Yudean Yunhe Power Co., Ltd. ("Yunhe Power") and 51%
    equity interests of Guangdong Yuehua Power Co., Ltd. ("Yuehua Power") in cash. This equity
    acquisition was reviewed and approved at the Company's 2021 Fourth Extraordinary General
    Meeting on 25 October 2021, and the above-mentioned equities acquired had been completed on
    30 November 2021. Since Sha C Company, Yunhe Power and Yuehua Power and the Company
    are controlled by the same ultimate controlling party GEGC before the merger, these transactions
    are business combinations involving enterprises under common control.

    The Company and its subsidiaries (collectively referred to as “the Group”) are principally engaged
    in the businesses of developing and operating electric power projects in Guangdong Province,
    Yunnan Province, Hunan Province and Guangxi Zhuang Autonomous Region of the PRC. For the
    information of the Company’s major subsidiaries included in the consolidation scope in the current
    year, please refer to Note 6(1).

    These financial statements were authorised for issue by the Company's Board of Directors on 20
    April 2022.

2   Summary of significant accounting policies and accounting estimates
    The Group determines specific accounting policies and accounting estimates based on the
    characteristics of production and operation, which are mainly reflected in the measurement of
    expected credit losses (“ECL”) of receivables and contract assets (Note 2(9)), costing of inventory
    (Note 2(10)), investment properties, depreciation of fixed asset and right-of-use assets and
    amortisation of intangible assets (Notes 2(12), 2(13), 2(25) and 2(16)), impairment of long-term
    assets (Note 2(18)), timing of revenue recognition (Note 2(22)), deferred tax assets and deferred
    tax liabilities (Note 2(24)), etc.

    Details of the Group’s critical judgements, critical accounting estimates and key assumptions used
    in determining significant accounting policies are set forth in Note 2(27).




    - 157 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (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

      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 (hereinafter
      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.

      According to the treatment principle of business combinations involving enterprises under common
      control, the consolidated financial statements in the financial statements are those consolidated
      financial statements for the year ended 31 December 2021 prepared on a recurring basis pursuant
      to the equity structure which has been existed after the completion of the transaction from 1
      January 2020. Please refer to Note 5(3) for details on the business combinations involving
      enterprises under common control.

      As at 31 December 2021, the Group’s net current liabilities amounted to RMB 14,872 million,
      capital commitments amounted to RMB 23,519 million, and investment commitments amounted to
      RMB 1,200 million, among which the amount expected to be settled within one year was RMB
      10,749 million for capital commitments and investment commitments. Therefore, the Group is to
      some extent exposed to liquidity risk. The reasons for net current liabilities were that a portion of
      the Group’s capital expenditure was backed by short-term borrowings and the abnormal
      fluctuations of coal prices in 2021.

      As the main energy supply enterprise in Guangdong province, the Group undertakes the social
      responsibilities of power supply to external parties. In response to decisions and arrangements
      issued by the National Development and Reform Commission of the People’s Republic of China
      ("NDRC") for state-owned power generation enterprises on "ensuring adequate supply and
      stabilising market prices” and "generating power as much as possible", the Group continues to
      generate power to ensure supply on peak demand and makes contributions to the stability of
      society and people's livelihood. In 2021, due to the abnormal fluctuations of coal prices affecting
      the business operation of the Group, some subsidiaries failed to meet the requirements of gearing
      ratio indicators stipulated in some borrowing contracts. The event resulted in the failure of the
      subsidiaries to perform certain agreed terms of the relevant borrowing agreements, and could
      trigger cross-default clauses in the borrowing contracts with certain other banks and other financial
      institutions (together "non-compliance matters"). Due to such non-compliance matters, related
      banks and other financial institutions have the right to require such subsidiaries to repay all the
      principal and interest of relevant borrowings in advance. The balance of principal and interest of
      such borrowings as at 31 December 2021 amounted to RMB 3,569 million, among them, the
      amount of bank loans that failed to meet the asset-liability ratio indicators specified in the
      above-mentioned contracts was RMB 2,219 million, and the amount of bank loans that might
      trigger the cross-default clause in the loan contract was RMB 1,350 million. The bank loan contract
      mentioned above with a maturity date after 31 December 2022 as agreed in the original contract of
      RMB 1,332 million (reclassified as current portion of non-current liabilities).

      In view of the above, the Board of Directors of the Company has carefully considered the Group's
      future working capital, operating conditions and available financing sources when assessing the
      Group's ability to continue as a going concern. The Group has formulated the following plans and
      measures to reduce pressure of working capital and improve its financial position:




      - 158 -
        GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

        NOTES TO THE FINANCIAL STATEMENTS
        FOR THE YEAR ENDED 31 DECEMBER 2021
        (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)

(i)     Related subsidiaries within the Group had actively communicated with relevant banks and other
        financial institutions to explain and clarify the reasons for such non-compliance matters, and
        obtained written exemptions for the non-compliance matters from most banks in March 2022 with
        a corresponding bank loan amount of RMB 1,879 million. The management of the relevant
        subsidiaries of the Group maintained timely and smooth communication with the relevant banks on
        the Company's financial position, and the banks agreed to continue to maintain credit cooperation
        with the relevant subsidiaries. As at the date on which the financial statements were authorised for
        issue, related banks did not require these subsidiaries to repay relevant borrowings immediately.
        Management believes that these subsidiaries will not be required to prepay the borrowings early.
        Based on the good long-term business relationship with major cooperative banks and financial
        institutions, the Group will maintain active communication with relevant banks and believes that it
        can continue to obtain necessary credit lines from related banks and financial institutions and
        renew existing borrowings when necessary. As at the date on which the financial statements were
        authorised for issue, the Group had renewed the borrowings or obtained new borrowings, totalling
        about RMB 4,631 million in 2022.

(ii)    The Group maintains good relations of long-term cooperation with financial institutions (including
        the Company’s associate Guangdong Energy Group Finance Co., Ltd. (“Energy Group Finance
        Company”) and Guangdong Energy Finance Leasing Company (“Energy Finance Leasing
        Company”)) in order to obtain sufficient financing credit lines. As at 31 December 2021, the
        Group’s available credit line and approved debt issurance from financial institutions amounted to
        approximately RMB 36,078 million, with RMB 16,829 million from Energy Group Finance
        Company, RMB 4,957 million from Energy Finance Leasing Company, RMB 13,692 million from
        other commercial banks, and RMB 600 million of quota of medium-term notes financing obtained
        after the registration in the Interbank Market in China. Among the Group’s available credit line
        from financial institutions, approximately RMB 12,200 million is due before 31 December 2022.
        Management has communicated with the financial institutions and hence expected the credit line
        due before 31 December 2022 to renew the term for another 12 months.

(iii)   The Group will actively seek more favourable long-term electricity price and will continue to
        procure fuel through Guangdong Electric Power Industry Fuel Co., Ltd. (“Industry Fuel”), a
        50%-owned joint venture by the Company, to give full play to its advantages in scale and seek to
        effectively reduce coal procurement costs. Management believes that based on the actual trend
        of coal and electricity prices as at the issue date of the financial statements and the expected
        gradual implementation of relevant national regulatory policies, the coal procurement
        situation is expected to improve to a certain extent and the Group's cash flows from operating
        activities in 2022 are expected to improve significantly as compared to 2021.

        The Board of Directors of the Company has reviewed the Group's cash flow forecasting prepared
        by management covering a period of not less than 12 months from 31 December 2021. The cash
        flow forecasting is based on management's judgements and assumptions regarding a number of
        future events and is subject to the successful completion of a series of plans and measures
        planned and being implemented by the Group, including: (1) The Group will continuously monitor
        the financial indicators of its subsidiaries and improve the operation and financing structure of its
        subsidiaries through various measures, including but not limited to providing financing support and
        capital injection, so that the subsidiaries within the Group can continue to meet the requirements
        of the borrowing agreements in foreseeable future; (2) the Group can continue to meet the
        conditions of existing bank financing and obtain necessary borrowing renewals and new
        borrowings, including financing from Energy Group Finance Company and Energy Finance
        Leasing Company, and it can successfully conduct external financing by issuing corporate bonds,
        medium-term notes, and ultra-short-term financing bonds when necessary; (3) The Group will
        obtain more favourable long-term electricity price and effective adoption to lower fuel procurement
        costs; and (4) the Group’s generator units under construction, especially new energy projects,
        have been put into operation in recent years. It is expected that the Group can obtain stable cash
        inflows from future business activities and various measures for improving operational cash flows
        can be implemented smoothly. Taking into full consideration of the above measures being
        implemented or planned by the Group, management believes that the Group can obtain
        sufficient funds to pay its operating expenses, capital commitment within one year and repay its
        matured debt obligations within the next 12 months from 31 December 2021. Therefore,
        management believes that it is appropriate to prepare these financial statements on a going
        - 159 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]
      concern basis.

2     Summary of significant accounting policies and accounting estimates

(2)   Statement of compliance with the Accounting Standards for Business Enterprises

      The financial statements of the Group and the Company for the year ended 31 December 2021 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 Group and the Company as
      at 31 December 2021 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 Company’s 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 Group in a business combination are
      measured at the carrying amount. If the acquiree is acquired from a third party by the ultimate
      controlling party in a prior year, the consideration paid and net assets obtained by the Group are
      measured based on the carrying amounts of the acquiree’s assets and liabilities (including the
      goodwill arising from the acquisition of the acquiree by the ultimate controlling party) presented in
      the consolidated financial statements of the ultimate controlling party. The difference between the
      carrying amount of the net assets obtained from the combination and the carrying amount of the
      consideration paid for the combination is treated as an adjustment to capital surplus (share
      premium). If the capital surplus (share premium) is not sufficient to absorb the difference, the
      remaining balance is adjusted against retained earnings. Costs directly attributable to the
      combination are included in profit or loss in the period in which they are incurred. Transaction costs
      associated with the issue of equity or debt securities for the business combination are included in
      the initially recognised amounts of the equity or debt securities.

(b)   Business combinations involving enterprises not under common control

      The cost of combination and identifiable net assets obtained by the Group in a business
      combination are measured at fair value at the acquisition date. Where the cost of the combination
      exceeds the Group’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 Group’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.




      - 160 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (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 or loss attributable to minority interests
      and total comprehensive income attributable to minority interests, and presented separately in the
      consolidated financial statements under shareholders’ equity, net profit and total comprehensive
      income respectively. When the amount of loss for the current period attributable to the minority
      shareholders of a subsidiary exceeds the minority shareholders’ portion of the opening balance of
      owners’ equity of the subsidiary, the excess is allocated against the balance of minority interests.
      Unrealised profits and losses resulting from the sale of assets by the Company to its subsidiaries
      are fully eliminated against net profit attributable to owners of the parent. Unrealised profits and
      losses resulting from the sale of assets by a subsidiary to the Company are eliminated and
      allocated between net profit attributable to owners of the parent and net profit attributable 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
      attributable 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.




      - 161 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]
2     Summary of significant accounting policies and accounting estimates (Cont’d)

(9)   Financial instruments

      A financial instrument is any contract that gives rise to a financial asset of one entity and a financial
      liability or equity instrument of another entity. A financial asset or a financial liability is recognised
      when the Group becomes a party to the contractual provisions of the instrument.

(a)   Financial assets

(i)   Classification and measurement

      Based on the Group’s business model for managing the financial assets and the contractual cash
      flow characteristics of the financial assets, financial assets are classified as: (1) financial assets at
      amortised cost; (2) financial assets at fair value through other comprehensive income; (3) financial
      assets at fair value through profit or loss.

      At initial recognition, the financial assets are measured at fair value. Transaction costs that are
      incremental and directly attributable to the acquisition of the financial assets are included in the
      initially recognised amounts, except for the financial assets at fair value through profit or loss, the
      related transaction costs of which are expensed in profit or loss for the current period. Accounts
      receivables arising from sale of products or rendering of services (excluding or without regard to
      significant financing components) are initially recognised at the consideration that is entitled to be
      received by the Group as expected.

      Debt instruments

      The debt instruments held by the Group refer to the instruments that meet the definition of financial
      liabilities from the perspective of the issuer, and are measured in the following categories:

      Measured at amortised cost:

      The objective of the Group’s business model is to hold the financial assets to collect the
      contractual cash flows, and the contractual cash flow characteristics are consistent with a basic
      lending arrangement, which gives rise on specified dates to the contractual cash flows that are
      solely payments of principal and interest on the principal amount outstanding. The interest income
      of such financial assets is recognised using the effective interest method. Such financial assets
      mainly comprise cash at bank and on hand, notes receivables, accounts receivables, other
      receivables, and long-term receivables, etc. Long-term receivables that are due within one year
      (inclusive) as from the balance sheet date are included in the current portion of non-current assets.

      Equity instruments

      Investments in equity instruments, over which the Group has no control, joint control or significant
      influence, are measured at fair value through profit or loss under financial assets held for trading.

      In addition, at initial recognition, a portion of certain investments in equity instruments not held for
      trading are designated as financial assets at fair value through other comprehensive income under
      other investments in equity instruments. The relevant dividend income of such financial assets is
      recognised in profit or loss for the current period.




      - 162 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
2      Summary of significant accounting policies and accounting estimates (Cont’d)

(9)    Financial instruments (Cont’d)

(a)    Financial assets (Cont’d)

(ii)   Impairment

       The Group recognises the loss provision on the basis of the ECL for financial assets and contract
       assets measured at amortised cost.

       Giving consideration to reasonable and supportable information that is available without undue
       cost or effort at the balance sheet date on past events, current conditions and forecasts of future
       economic conditions weighted by the probability of default, the Group recognises the ECL as the
       probability-weighted amount of the present value of the difference between the cash flows
       receivable from the contract and the cash flows expected to collect.

       At each balance sheet date, the ECL of financial instruments at different stages is measured
       respectively. 12-month ECL is recognised for financial instruments in Stage 1 which don’t have a
       significant increase in credit risk since initial recognition; lifetime ECL is recognised for financial
       instruments in Stage 2 which have had a significant increase in credit risk since initial recognition
       but are not deemed to be credit-impaired; and lifetime ECL is recognised for financial instruments
       in Stage 3 that are credit-impaired.

       For the financial instruments with low credit risk as at the balance sheet date, the Group assumes
       there is no significant increase in credit risk since initial recognition. The Group determines them
       as the financial instruments in Stage 1 and recognises the 12-month ECL.

       For the financial instruments in Stage 1 and Stage 2, the interest income is calculated by applying
       the effective interest rate to the book balance (before net of ECL provision). For the financial
       instrument in Stage 3, the interest income is calculated by applying the effective interest rate to the
       amortised cost (net of ECL provision).

       For accounts receivables and contract assets arising from sale of goods and rendering of services
       in the ordinary course of operating activities, the Group recognises the lifetime ECL regardless of
       whether there exists a significant financing component.

       In case the ECL of an individually assessed financial asset cannot be evaluated with reasonable
       cost, the Group classifies the receivables into certain groups on the basis of shared risk
       characteristics, and calculates the ECL for each group respectively. Basis for determining groups
       and method for provision are as follows:

       Group 1 of notes receivables                        Commercial notes receivable

       Group 1 of accounts receivables                     Receivables from sale of electricity
       Group 2 of accounts receivables                     Receivables from related parties
       Group 3 of accounts receivables                     Receivables from sale of steam and others

       Group 1 of contract assets                          Receivables from related parties
       Group 2 of contract assets                          Other contract assets

                                                           Receivables from business units, reserves
       Group 1 of other receivables                          receivable and other receivables




       - 163 -
        GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

        NOTES TO THE FINANCIAL STATEMENTS
        FOR THE YEAR ENDED 31 DECEMBER 2021
        (All amounts in RMB Yuan unless otherwise stated)
        [English translation for reference only]
2       Summary of significant accounting policies and accounting estimates (Cont’d)

(9)     Financial instruments (Cont’d)

(a)     Financial assets (Cont’d)

(ii)    Impairment (Cont’d)

        For accounts receivables that are classified into groups, the Group prepares a comparison table of
        the overdue days of receivables and the lifetime ECL rate, and calculates ECL with reference to
        the historical credit loss experience, the current situation and the forecast of future economic
        conditions. For other receivables that are classified into groups, the Group calculates the ECL with
        reference to historical credit loss experience, current conditions and forecasts of future economic
        conditions, and based on the exposure at default and the 12-month or lifetime ECL rates.

        The Group recognises the loss provision made or reversed into profit or loss for the current period.

(iii)   Derecognition

        A financial asset is derecognised when one of the following criteria is satisfied: (i) the contractual
        rights to receive the cash flows from the financial asset are expired, (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.

        When a financial asset is derecognised, the difference between the carrying amount and the
        consideration received as well as the cumulative changes in fair value that are previously
        recognised directly in other comprehensive income is recognised in profit or loss for the current
        period, except for those measured at fair value through other comprehensive income, the
        difference aforementioned is recognised in retained earnings instead.

(b)     Financial liabilities

        Financial liabilities are classified as financial liabilities at amortised cost and financial liabilities at
        fair value through profit or loss at initial recognition.

        Financial liabilities of the Group mainly comprise financial liabilities at amortised cost, including
        notes payables, accounts payables, other payables, borrowings and debentures payable, etc.
        Such financial liabilities are initially recognised at fair value, net of transaction costs incurred, and
        subsequently measured using the effective interest method. Financial liabilities with maturities of
        no more than one year (inclusive) are presented as current liabilities, and those with maturities of
        over one year but due within one year (inclusive) as from the balance sheet date are presented as
        current portion of non-current liabilities; and others are presented as non-current liabilities.




        - 164 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
2      Summary of significant accounting policies and accounting estimates (Cont’d)

(9)    Financial instruments (Cont’d)

(b)    Financial liabilities (Cont’d)

       A financial liability is derecognised or partly derecognised when the underlying present obligation is
       discharged or partly discharged. The difference between the carrying amount of the derecognised
       part of the financial liability and the consideration paid is recognised in profit or loss for the current
       period.

(c)    Determination of fair value of financial instruments

       The fair value of a financial instrument that is traded in an active market is determined at the
       quoted price in the active market. The fair value of a financial instrument that is not traded in an
       active market is determined by using a valuation technique. In valuation, the Group adopts
       valuation techniques applicable in the current situation and supported by adequate available data
       and other information, selects inputs with the same characteristics as those of assets or liabilities
       considered in relevant transactions of assets or liabilities by market participants, and gives priority
       to the use of relevant observable inputs. When relevant observable inputs are not available or
       feasible, unobservable inputs are adopted.

(10)   Inventories

(a)    Classification

       Inventories mainly comprise fuel and spare parts, and are measured at the lower of cost and net
       realisable value.

(b)    Valuation of inventories

       Cost of fuel is calculated using the weighted average method. Spare parts are amortised in full
       amount when issued for use.

(c)    Basis for determining net realisable values of inventories and method for making provision for
       decline in the value of inventories

       Provision for decline in the value of inventories is determined at the excess amount of the carrying
       amount of the inventories over their net realisable value. Net realisable value is determined based
       on the estimated selling price in the ordinary course of business, less the estimated costs
       necessary to make the sale and related taxes.

(d)    The Group adopts the perpetual inventory system.

(e)    Amortisation methods of low-value consumables

       Low value consumables are amortised in full amount.




       - 165 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
2      Summary of significant accounting policies and accounting estimates (Cont’d)

(11)   Long-term equity investments

       Long-term equity investments comprise the Company’s long-term equity investments in its
       subsidiaries, and the Group’s long-term equity investments in its joint ventures and associates.

       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 an
       investee over which the Group has significant influence on its financial and operating policy
       decisions.

       Investments in subsidiaries are presented in the Company’s financial statements using the cost
       method, and are adjusted to the equity method when preparing the consolidated financial
       statements. Investments in joint ventures and associates are accounted for using the equity
       method.

(a)    Determination of investment cost

       For long-term equity investments acquired through a business combination involving enterprises
       under common control, the investment cost shall be the absorbing party’s share of the carrying
       amount of owners’ equity of the party being absorbed in the consolidated financial statements of
       the ultimate controlling party at the combination date; for long-term equity investments acquired
       through a business combination involving enterprises not under common control, the investment
       cost shall be the combination cost.

       For long-term equity investments acquired not through a business combination: for long-term
       equity investments acquired by payment in cash, the initial investment cost shall be the purchase
       price actually paid; for long-term equity investments acquired by issuing equity securities, the initial
       investment cost shall be the fair value of the equity securities issued.

(b)    Subsequent measurement and recognition of profit or loss

       Long-term equity investments accounted for using the cost method are measured at initial
       investment cost. Cash dividend or profit distribution declared by the investees is recognised as
       investment income in profit or loss for the current period.

       For long-term equity investments accounted for using the equity method, where the initial
       investment cost exceeds the Group’s share of the fair value of the investee’s identifiable net assets
       at the time of acquisition, the investment is initially measured at that cost; where the initial
       investment cost is less than the Group’s share of the fair value of the investee’s identifiable net
       assets at the time of acquisition, the difference is included in profit or loss for the current period and
       the cost of the long-term equity investment is adjusted upwards accordingly.

       For long-term equity investments accounted for using the equity method, the Group recognises the
       investment income according to its share of net profit or loss of the investee. The Group does not
       recognise further losses when the carrying amount of the long-term equity investment together with
       any long-term interests that, in substance, form part of the Group’s net investment in the investee
       is 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 changes in
       the investee’s owners’ 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 amount 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 investee. 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.


       - 166 -
           GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

           NOTES TO THE FINANCIAL STATEMENTS
           FOR THE YEAR ENDED 31 DECEMBER 2021
           (All amounts in RMB Yuan unless otherwise stated)
           [English translation for reference only]
2          Summary of significant accounting policies and accounting estimates (Cont’d)

(11)       Long-term equity investments (Cont’d)

(c)        Basis for determining existence of control, joint control or significant influence over investees

           Control is the power over investees that can bring variable returns through involvement in related
           activities of investees and the ability to influence the returns by using such power over investees.

           Joint control is the agreed sharing of control over an arrangement, and the decision of activities
           relating to such arrangement requires the unanimous consent of the Group and other parties
           sharing control.

           Significant influence is the power to participate in making the decisions on financial and operating
           policies of the investee, but is not control or joint control over making those policies.

(d)        Impairment of long-term equity investments

           The carrying amounts of long-term equity investments in subsidiaries, joint ventures and
           associates are reduced to the recoverable amounts when the recoverable amounts are below their
           carrying amounts (Note 2(18)).

    (12)   Investment properties

           Investment properties, including land use rights that have already been leased out and buildings
           that are held for the purpose of leasing, are measured initially at cost. Subsequent expenditures
           incurred in relation to an investment property are included in the cost of the investment property
           when it is probable that the associated economic benefits will flow to the Group and their costs can
           be reliably measured; otherwise, the expenditures are recognised in profit or loss for the period in
           which they are incurred.

           The Group adopts the cost model for subsequent measurement of investment properties.
           Buildings and land use rights are depreciated or amortised to their estimated net residual values
           over their estimated useful lives. The estimated useful lives, the net residual values that are
           expressed as a percentage of cost and the annual depreciation (amortisation) rates of investment
           properties are as follows:

                                              Estimated useful         Estimated net        Annual depreciation
                                                         lives        residual values       (amortisation) rates

           Buildings                             20 to 40 years             0% to 5%            2.38% to 4.75%
           Land use rights                             60 years                   0%                     1.67%

           The investment property’s estimated useful life, estimated net residual value and depreciation
           (amortisation) method applied are reviewed and adjusted as appropriate at each year-end.

           When an investment property is transferred to owner-occupied property, it is reclassified to fixed
           asset and intangible assets with the carrying amounts determined at the carrying amounts of the
           investment property at the date of the transfer.




           - 167 -
        GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

        NOTES TO THE FINANCIAL STATEMENTS
        FOR THE YEAR ENDED 31 DECEMBER 2021
        (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)   Investment properties (Cont’d)

        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 sale, 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.

        The carrying amount of an investment property is reduced to the recoverable amount if the
        recoverable amount is below the carrying amount (Note 2(18)).

(13)    Fixed assets

(a)     Recognition and initial measurement of fixed assets

        Fixed assets comprise buildings, power generation equipment, motor vehicles, and other
        equipment.

        Fixed assets are recognised when it is probable that the related economic benefits will flow into the
        Group and the costs can be reliably measured. Fixed assets purchased or constructed by the Group
        are initially measured at cost at the time of acquisition. The fixed assets contributed by the State
        shareholders at the reorganisation of the Company into a corporation entity are recognised based
        on the evaluated amounts 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 for fixed assets

        Fixed assets are depreciated using the straight-line method to allocate the cost of the assets to their
        estimated net residual values over their estimated useful lives. For the fixed assets that have been
        provided for impairment loss, the related depreciation charge is prospectively determined based
        upon the adjusted carrying amounts over their remaining useful lives.

        The estimated useful lives, the estimated net residual values expressed as a percentage of cost and
        the annual depreciation rates of fixed assets are as follows:

                                           Estimated useful        Estimated net         Annual depreciation
                                                      lives       residual values                      rates

        Buildings                            10 to 50 years             0% to 5%              1.90% to 9.50%
        Power generation
          equipment                            5 to 35 years            0% to 5%            2.71% 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.




        - 168 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
2      Summary of significant accounting policies and accounting estimates (Cont’d)

(13)   Fixed assets (Cont’d)

(c)    The carrying amounts of fixed assets are reduced to the recoverable amounts when the recoverable
       amounts are below their carrying amounts (Note 2(18)).

(d)    Disposals of fixed assets

       A fixed asset is derecognised on disposal or when no future economic benefits are expected from its
       use or disposal. The amount of proceeds from disposals on sale, transfer, retirement or damage of a
       fixed asset net of its carrying amount and related taxes and expenses is recognised in profit or loss
       for the current period.

(14)   Construction in progress

       Construction in progress is measured at actual cost. Actual cost comprises construction costs,
       installation costs, borrowing costs that are eligible for capitalisation and other costs necessary to
       bring the construction in progress ready for its intended use. Construction in progress is transferred
       to fixed assets when the asset is ready for its intended use, and depreciation is charged starting
       from the following month. The carrying amount of construction in progress is reduced to the
       recoverable amount when the recoverable amount is below its carrying amount (Note 2(18)).

(15)   Borrowing costs

       The borrowing costs that are directly attributable to acquisition and construction of an asset that
       needs a substantially long period of time for its intended use commence to be capitalised and
       recorded as part of the cost of the asset when expenditures for the asset and borrowing costs have
       been incurred, and the activities relating to the acquisition and construction that are necessary to
       prepare the asset for its intended use have commenced. The capitalisation of borrowing costs
       ceases when the asset under acquisition or construction becomes ready for its intended use and the
       borrowing costs incurred thereafter are recognised in profit or loss for the current period.
       Capitalisation of borrowing costs is suspended during periods in which the acquisition or
       construction of an asset is interrupted abnormally and the interruption lasts for more than 3 months,
       until the acquisition or construction is resumed.

       For special borrowings for the acquisition and construction of qualifying assets, the capitalised
       amount of the special borrowings is determined by the interest expenses incurred in the period less
       interest income of the unused borrowings deposited at bank or investment income from temporary
       investment.




       - 169 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
2      Summary of significant accounting policies and accounting estimates (Cont’d)

(15)   Borrowing costs (Cont'd)

       The capitalised amount of general borrowings intended to be used for the acquisition and
       construction of qualifying assets is determined by the weighted average of the excess of
       accumulated capital expenditure over capital expenditure of the special borrowings multiplied by
       the weighted average effective interest rate of the utilised general borrowings. The effective interest
       rate is the rate at which the future cash flows of the borrowings over the expected lifetime or a
       shorter applicable period are discounted into the initial recognised amount of the borrowings.

(16)   Intangible assets

       Intangible assets include land use rights, sea use rights and software, and are measured at cost.
       The intangible assets contributed by the state-owned shareholders upon the reorganisation of the
       Group into a corporation and favorable contract are recognised based on the evaluated amounts
       as approved by the state-owned assets administration department.

(a)    Land use rights and sea use rights

       Land use rights are amortised on the straight-line basis over their approved use period of 20 to 70
       years. If the acquisition costs of the land use rights and the buildings located thereon cannot be
       reasonably allocated between the land use rights and the buildings, all of the acquisition costs are
       recognised as fixed assets. Allotted land with undetermined useful lives is not amortised.

       Sea use rights are amortised on the straight-line basis over their approved use period of 50 years.

(b)    Other intangible assets

       Intangible assets other than land use rights and sea use rights are amortised on a
       straight-line-basis over the expected useful lives of 2 to 60 years.

(c)    Periodical review of useful life and amortisation method

       For an intangible asset with a finite useful life, review of its useful life and amortisation method is
       performed at each year-end, with adjustment made as appropriate.




       - 170 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
2      Summary of significant accounting policies and accounting estimates (Cont’d)

(16)   Intangible assets (Cont’d)

(d)    Research and development

       The expenditure on an internal research and development project is classified into expenditure on
       the research phase and expenditure on the development phase based on its nature and whether
       there is material uncertainty that the research and development activities can form an intangible
       asset at the end of the project.

       Expenditure on the research phase is recognised in profit or loss in the period in which it is
       incurred. Expenditure on the development phase is capitalised only if all of the following conditions
       are satisfied:

            management intends to complete the intangible asset, and use or sell it;
            it can be demonstrated how the intangible asset will generate economic benefits: products with
            the application of intangible assets or the intangible assets themselves can prove to have
            market value, intangible assets for internal use application can prove to be of usefulness;
            there are adequate technical, financial and other resources to complete the development and
            the ability to use or sell the intangible asset;
            it is technically feasible to complete the intangible asset so that it will be available for use or
            sale;
            the expenditure attributable to the intangible asset during its development phase can be
            reliably measured.

       Other development expenditures that do not meet the conditions above are recognised in profit or
       loss in the period in which they are incurred. Development costs previously recognised as
       expenses are not recognised as an asset in a subsequent period. Capitalised expenditure on the
       development phase is presented as development costs in the balance sheet and transferred to
       intangible assets at the date that the asset is ready for its intended use.

(e)    Impairment of intangible assets

       The carrying amount of intangible assets is reduced to the recoverable amount when the
       recoverable amount is below the carrying amount (Note 2(18)).

(17)   Long-term prepaid expenses

       Long-term prepaid expenses include the expenditure for improvements to right-of-use assets, 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.




       - 171 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
2      Summary of significant accounting policies and accounting estimates (Cont’d)

(18)   Impairment of long-term assets

       Fixed assets, construction in progress, right-of-use assets, 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 the assets 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 of an asset is the higher of the fair value less costs to
       sell and the present value of the future cash flows expected to be derived from it. 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 amount of goodwill is allocated to the related asset groups or groups of asset
       groups which are expected to benefit from the synergies of the business combination. If the result
       of the test indicates that the recoverable amount of an asset group or a group of asset groups,
       including the allocated goodwill, is lower than its carrying amount, the corresponding impairment
       loss is recognised. The impairment loss is first deducted from the carrying amount of goodwill that
       is allocated to the asset group or group of asset groups, and then deducted from the carrying
       amounts of other assets within the asset group or group of asset groups in proportion to the
       carrying amounts of assets other than goodwill.

       Once the above asset impairment loss is recognised, it will not be reversed for the value recovered
       in the subsequent periods.

(19)   Employee benefits

       Employee benefits refer to all forms of consideration or compensation given by the Group in
       exchange for service rendered by employees or for termination of employment relationship, which
       include short-term employee benefits, post-employment benefits, termination benefits and other
       long-term employee benefits.

(a)    Short-term employee benefits

       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 and short-term paid
       absences, 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; non-planned expenses provided to retired employees fall under defined benefit
       plans.
       - 172 -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]




- 173 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
2      Summary of significant accounting policies and accounting estimates (Cont’d)

(19)   Employee benefits (Cont'd)

(b)    Post-employment benefits (Cont'd)


       Basic pensions

       The Group’s employees participate in the basic pension plan set up and administered by local
       authorities of Ministry of Human Resource and Social Security. Monthly payments of premiums on
       the basic pensions are calculated according to the bases and percentage prescribed by the
       relevant local authorities. When employees retire, the relevant local authorities are obliged to pay
       the basic pensions to them.


       Supplementary pensions


       The Group purchases supplementary pensions for employees, and pays insurance premium
       according to the policies of the parent company, GEGC.


       The amounts based on the above calculations are recognised as liabilities in the accounting period
       in which the service has been rendered by the employees, with a corresponding charge to the profit
       or loss for the current period or the cost of relevant assets.


       Defined benefit plan


       For defined benefit plan, the Group uses the projected unit credit method and includes the
       obligation of the defined benefit plan in the accounting period in which the service has been
       rendered by the employees, with a corresponding charge to the profit or loss for the period. The
       cost of employee benefits arising from defined benefit plans are classified into the following parts:


       —   service cost (including current service cost as well as gains and losses on curtailments and
            settlements);
       —   net interest expenses on net liabilities of the defined benefit plan (including interest expenses
            for obligations of the defined benefit plan); and
       —   Changes arising from remeasurement on net liabilities of defined benefit plans


       Service cost and net interest expenses on net liabilities of defined benefit plans are included in
       profit or loss for the current period. Changes arising from remeasurement on net liabilities of
       defined benefit plans (including actuarial gains or losses) are included in other comprehensive
       income.




       - 174 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
2      Summary of significant accounting policies and accounting estimates (Cont’d)

(19)   Employee benefits (Cont'd)

(c)    Termination benefits

       The Group provides compensation for terminating the employment relationship with employees
       before the end of the employment contracts or as an offer to encourage employees to accept
       voluntary redundancy before the end of the employment contracts. The Group recognises a
       liability arising from compensation for termination of the employment relationship with employees,
       with a corresponding charge to profit or loss for the current period at the earlier of the following
       dates: 1) when the Group cannot unilaterally withdraw an employment termination plan or a
       curtailment proposal; 2) when the Group recognises costs or expenses for a restructuring that
       involves the payment of termination benefits.

       Early retirement benefits

       The Group offers early retirement benefits to those employees who accept early retirement
       arrangements. The early retirement benefits refer to the salaries and social security contributions to
       be paid to and for the employees who accept voluntary retirement before the normal retirement
       date prescribed by the State, as approved by 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 employee benefits payable.

(20)   Dividend distribution


       Cash dividends are recognised as liabilities in the period in which the dividends are approved by
       the shareholders’ meeting.

(21)   Provisions


       Provisions for product warranties and onerous contracts, etc. are recognised when the Group has a
       present obligation, it is probable that an outflow of economic benefits will be required to settle the
       obligation, and the amount of the obligation can be measured reliably.

       A provision is initially measured at the best estimate of the expenditure required to settle the
       related present obligation. Factors surrounding a contingency, such as the risks, uncertainties and
       the time value of money, are taken into account as a whole in reaching the best estimate of a
       provision. Where the effect of the time value of money is material, the best estimate is determined
       by discounting the related future cash outflows. The increase in the discounted amount of the
       provision arising from passage of time is recognised as interest expense.

       The carrying amount of provisions is reviewed at each balance sheet date and adjusted to reflect
       the current best estimate.

       Loss provision for financial guarantee contracts which are recognised on the basis of ECL are
       presented as provisions.


       - 175 -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
The provisions expected to be settled within one year since the balance sheet date are classified
as current liabilities.




- 176 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
2      Summary of significant accounting policies and accounting estimates (Cont’d)

(22)   Revenue recognition

       The Group recognises revenue at the amount of the consideration which the Group expects to be
       entitled to receive when the customer obtains control over relevant goods or services.

(a)    Revenue from sale of electricity and heat energy

       Revenue is recognised when electricity and heat energy are supplied to grid companies or
       customers, and they obtain control over electricity.

(b)    Revenue from sale of by-products

       Revenue from the sale of goods is recognised when the Group transfers by-products (such as coal
       ash) produced by electricity generations to the designated delivery place pursuant to the contract
       or agreement, the resource utilisation enterprise confirms receipt and obtains control over the
       by-products.

(c)    Provision of electric power transaction service

       For the electric power transaction service provided by the Group to external parties, upon the
       receipt of the service, revenue is recognised based on the difference between the purchase price
       and the selling price of electricity.

(d)    Rendering of services

       The Group provides maintenance services to external parties. The related revenue is recognised
       based on the stage of completion within a certain period, which is determined based on proportion
       of costs incurred to date to the estimated total costs. On the balance sheet date, the Group
       re-estimates the stage of completion to reflect the actual status of contract fulfilment.

       When the Group recognises revenue based on the stage of completion, the amount with
       unconditional collection right obtained by the Group is recognised as accounts receivables, and
       the rest is recognised as contract assets. Meanwhile, loss provisions for accounts receivables and
       contract assets are recognised on the basis of ECL (Note 2(9)). If the contract price received or
       receivable exceeds the amount for the completed service, the excess portion will be recognised as
       contract liabilities. Contract assets and contract liabilities under the same contract are presented
       on a net basis.

       Contract costs include contract fulfilment costs and contract acquisition costs. Costs incurred for
       provision of maintenance services are recognised as contract fulfilment costs, which is recognised
       as the cost of sale of main operations based on the stage of completion when recognising revenue.




       - 177 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
2      Summary of significant accounting policies and accounting estimates (Cont’d)

(23)   Government grants

       Government grants refer to the monetary or non-monetary assets obtained by the Group from the
       government, including tax return and financial subsidy, etc.

       Government grants are recognised when the grants can be received and the Group can comply
       with all attached conditions. If a government grant is a monetary asset, it will be measured at the
       amount received or receivable. If a government grant is a non-monetary asset, it will be measured
       at its fair value. If it is unable to obtain its fair value reliably, it will be measured at its nominal
       amount.

       Government grants related to assets refer to government grants which are obtained by the Group
       for the purposes of purchase, construction or acquisition of the long-term assets. Government
       grants related to income refer to the government grants other than those related to assets.

       Government grants related to assets are recorded as deferred income and recognised in profit or
       loss on a reasonable and systemic basis over the useful lives of the assets.

       Government grants related to daily operation that compensate future costs, expenses or losses are
       recorded as deferred income and recognised in profit or loss in reporting the related costs,
       expenses or losses; government grants related to income that compensate incurred costs,
       expenses or losses are recognised in profit or loss directly in the current period. For other
       government grants related to income that compensate the future costs, expenses or losses are
       recorded as deferred income and deducted against related costs in reporting the related costs,
       expenses or losses; government grants related to income that compensate the incurred costs,
       expenses or losses are deducted against related costs.

       The Group applies the presentation method consistently to the similar government grants in the
       financial statements.

       Government grants that are related to ordinary activities are included in operating profit, otherwise,
       they are recorded in non-operating income or expenses.




       - 178 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
2      Summary of significant accounting policies and accounting estimates (Cont’d)

(24)   Deferred tax assets and deferred tax liabilities

       Deferred tax assets and deferred tax liabilities are calculated and recognised based on the
       differences arising between the tax bases of assets and liabilities and their carrying amounts
       (temporary differences). Deferred tax asset is recognised for the deductible losses that can be
       carried forward to subsequent years for deduction of the taxable profit in accordance with the tax
       laws. No deferred tax liability is recognised for a temporary difference arising from the initial
       recognition of goodwill. No deferred tax asset or deferred tax liability is recognised for a temporary
       difference arising 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 differences, and it is probable that the temporary differences will not be
       reversed 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 taxpayer within the Group and the
          same taxation authority; and,
          that taxpayer within the Group has a legally enforceable right to offset current tax assets
          against current tax liabilities.




       - 179 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
2      Summary of significant accounting policies and accounting estimates (Cont’d)

(25)   Leases

       A contract is, or contains, a lease if the contract conveys the right to control the use of an identified
       asset for a period of time in exchange for consideration.

       The Group as the lessee

       At the lease commencement date, the Group recognises the right-of-use asset and measures the
       lease liability at the present value of the lease payments that are not paid at that date. Lease
       payments include fixed payments, the exercise price of a purchase option or termination penalty if
       the lessee is reasonably certain to exercise that option etc. Variable lease payments in proportion
       to sales are excluded from lease payments and recognised in profit or loss as incurred. Lease
       liabilities that are due within one year (inclusive) as from the balance sheet date are included in
       the current portion of non-current liabilities.

       Right-of-use assets of the Group comprise leased buildings, machinery and equipment, motor
       vehicles, etc. Right-of-use assets are measured initially at cost which comprises the amount of the
       initial measurement of lease liabilities, any lease payments made at or before the commencement
       date and any initial direct costs, less any lease incentives received. If there is reasonable certainty
       that the Group will obtain ownership of the underlying asset by the end of the lease term, the asset
       is depreciated over its remaining useful life; otherwise, the asset is depreciated over the shorter of
       the lease term and its remaining useful life. The carrying amount of the right-of-use asset is
       reduced to the recoverable amount when the recoverable amount is below the carrying amount.

       For short-term leases with a term of 12 months or less and leases of an individual asset (when
       new) of low value, the Group chooses to include the lease payments in the cost of the underlying
       assets or in the profit or loss for the current period on a straight-line basis over the lease term,
       instead of recognising right-of-use assets and lease liabilities.

       The Group accounts for a lease modification as a separate lease if both: (1) the modification
       increases the scope of the lease by adding the right to use one or more underlying assets; (2) the
       consideration for the lease increases by an amount commensurate with the stand-alone price for
       the increase in scope and any appropriate adjustments to that stand-alone price to reflect the
       circumstances of the contract.

       For a lease modification that is not accounted for as a separate lease, the Group redetermines the
       lease term at the effective date of the lease modification, and remeasures the lease liability by
       discounting the revised lease payments using a revised discount rate, except that the contract
       changes directly resulting from COVID-19 are accounted for by applying the practical expedient.
       For a lease modification which decreases the scope of the lease or shortens the lease term, the
       Group decreases the carrying amount of the right-of-use asset, and recognises in profit or loss
       any gain or loss relating to the partial or full termination of the lease. For other lease modifications
       which lead to the remeasurement of lease liabilities, the Group correspondingly adjusts the
       carrying amount of the right-of-use asset.




       - 180 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
2      Summary of significant accounting policies and accounting estimates (Cont’d)

(25)   Leases (Cont'd)

       The Group as the lessor

       A lease is classified as a finance lease if it transfers substantially all the risks and rewards
       incidental to ownership of an underlying asset. An operating lease is a lease other than a finance
       lease.

(a)    Operating leases

       Where the Group leases out self-owned buildings under operating leases, rental income therefrom
       is recognised on a straight-line basis over the lease term. Variable rental that is linked to a certain
       percentage of sales is recognised in rental income as incurred.

       For the rent concessions as a direct result of COVID-19 and for the period ended 30 June 2022
       only, the Group applies the practical expedient to account for the concessions as variable lease
       payments and record the concessions in profit or loss during the waiving period.

       Except that the above contract changes directly resulting from COVID-19 are accounted for by
       applying the practical expedient, for a lease modification, the Group accounts for it as a new lease
       from the effective date of the modification, and considers any lease payments received in advance
       and receivable relating to the lease before modification as receivables of the new lease.

(26)   Segment information

       The Group identifies operating segments based on the internal organisation structure,
       management requirements and internal reporting system, and discloses segment information of
       reportable segments which is determined on the basis of operating segments.

       An operating segment is a component of the Group that satisfies all of the following conditions: (a)
       the component is able to earn revenue and incur expenses from its ordinary activities; (b) 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 (c) 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.




       - 181 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
2      Summary of significant accounting policies and accounting estimates (Cont’d)

(27)   Critical accounting estimates and judgements

       The Group continually evaluates the critical accounting estimates and key judgements applied
       based on historical experience and other factors, including expectations of future events that are
       believed to be reasonable under the circumstances.

(a)    Critical judgements in applying the accounting policies

(i)    Classification of financial assets

       Significant judgements made by the Group in the classification of financial assets include analysis
       on business models and contractual cash flow characteristics.

       The Group determines the business model for financial asset management at the level of different
       groups, and factors to be considered include the methods of evaluation on financial asset
       performance and reporting of financial asset performance to key management personnel, risks
       affecting financial asset performance and management methods for such risks, the ways in which
       related business management personnel are remunerated, etc.

       When assessing whether contractual cash flow characteristics of financial assets are consistent
       with basic lending arrangement, key judgements made by the Group include: the possibility of
       changes in timing or amount of the principal during the duration due to reasons such as early
       repayment; whether interest only include time value of money, credit risks, other basic lending
       risks and considerations for costs and profits. For example, whether the amount of prepayment
       only reflects the principal outstanding and the interest based on the principal outstanding, as well
       as the reasonable compensation due to the early termination of the contract.

(ii)   Determination of significant increase in credit risk

       Judgement of the Group for significant increase in credit risk is mainly based on whether one or
       more of the following indicators changed significantly: business environment of the debtor,
       internal and external credit rating, significant changes in actual or expected operating results,
       significant decrease in value of collateral or credit rate of guarantor, etc.

       Judgement of the Group on the occurred credit impairment is mainly based on whether it meets
       one or more of the following conditions: the debtor is suffering significant financial difficulties,
       engaged in other debt restructuring, or it is probable that the debtor will enter bankruptcy, etc.




       - 182 -
        GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

        NOTES TO THE FINANCIAL STATEMENTS
        FOR THE YEAR ENDED 31 DECEMBER 2021
        (All amounts in RMB Yuan unless otherwise stated)
        [English translation for reference only]

2       Summary of significant accounting policies and accounting estimates (Cont’d)

(27)    Critical accounting estimates and judgements (Cont’d)

(a)     Critical judgements in applying the accounting policies (Cont’d)

(iii)   Timing of revenue recognition

        With regard to sale of electricity to grid companies, the Group supplies electricity to grid
        companies in accordance with the contract. Thereafter, the grid companies have the right to sell
        electricity and the discretion in pricing, and take the risks of any price fluctuation or loss of the
        products. The Group believes that the grid companies obtain control over electric power upon the
        receiving of the electric power. Therefore, revenue is recognised upon the receiving of the electric
        power of grid companies.

(b)     Critical accounting estimates and key assumptions

        The critical accounting estimates and key assumptions that have a significant risk of causing a
        material adjustment to the carrying amounts of assets and liabilities within the next accounting
        year are outlined below:

(i)     Accounting estimates on impairment of fixed assets

        As described in Note 2(18), fixed assets, construction in progress, right-of-use assets, intangible
        assets with finite useful lives, investment properties that are measured at cost and long-term
        equity investments in subsidiaries, joint ventures and associates are tested for impairment if there
        is any indication that an asset may be impaired at the balance sheet date. If the result of the
        impairment test indicates that the recoverable amount of an asset is less than its carrying amount,
        a provision for impairment and an asset impairment loss are recognised for the amount by which
        the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the
        higher of an asset’s fair value less costs to sell and the present value of the future cash flows
        expected to be derived from the asset. These calculations require use of accounting estimates.

        When assessing whether the above assets are impaired, management mainly evaluates and
        analyses: (i) whether events affecting asset impairment occurred; (ii) whether the present value of
        expected cash flows arising from the continuing use or disposals of the asset is lower than its
        carrying amount; and (iii) whether the significant assumptions used in the calculation of the
        present value of the estimated cash flows are appropriate.

        Relevant assumptions adopted by the Group to determine impairment, e.g. changes in
        assumptions on discount rate, growth rate and gross margins used to calculate the present value
        of future cash flows, may have material impact on the present value used in the impairment test,
        and cause impairment in the above-mentioned long-term assets of the Group.




        - 183 -
        GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

        NOTES TO THE FINANCIAL STATEMENTS
        FOR THE YEAR ENDED 31 DECEMBER 2021
        (All amounts in RMB Yuan unless otherwise stated)
        [English translation for reference only]

2       Summary of significant accounting policies and accounting estimates (Cont’d)

(27)    Critical accounting estimates and judgements (Cont’d)

(b)     Critical accounting estimates and key assumptions (Cont’d)

(ii)    Measurement of ECL

        The Group calculates ECL through exposure at default and ECL rates, and determines the ECL
        rates based on probability of default and loss given default. In determining the ECL rates, the
        Group uses data such as internal historical credit loss experience, etc., and adjusts historical data
        based on current conditions and forward-looking information.

        When considering forward-looking information, the Group considered different macroeconomic
        scenarios. Significant macroeconomic assumptions and parameters related to the estimation of
        ECL include the risk of economic downturn, external market environment, technological
        environment, changes in customer conditions, Gross Domestic Product (“GDP”) and Consumer
        Price Index (“CPI”), etc. The Group regularly monitors and reviews assumptions and parameters
        related to the calculation of ECL. In 2021, the Group considered the uncertainty caused by
        COVID-19, and relevant assumptions and parameters were updated.

(iii)   Income taxes and deferred 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 tax in
        each of these jurisdictions. Where the final tax outcomes of these matters are different from the
        amounts that were initially recorded, such differences will impact the income tax and deferred
        income tax provisions in the period in which such determination is made.

        As stated in Note 3(2), some subsidiaries of the Group are high-tech enterprises. The high-tech
        enterprise certificate is effective for three years. Upon expiration, application for high-tech
        enterprise identification should be submitted again to the relevant government authorities. Based
        on the historical experience of reassessment for high-tech enterprise upon expiration and the
        actual condition of the subsidiaries, the Group considers that the subsidiaries are able to obtain the
        qualification for high-tech enterprises in future years, and therefore a preferential tax rate of 15% is
        used to calculate the corresponding deferred income tax. If some subsidiaries cannot obtain the
        qualification for high-tech enterprise upon expiration, then the subsidiaries are subject to a
        statutory tax rate of 25% for the calculation of the income tax, which further influences the
        recognised deferred tax assets, deferred tax liabilities and income tax expenses.




        - 184 -
        GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

        NOTES TO THE FINANCIAL STATEMENTS
        FOR THE YEAR ENDED 31 DECEMBER 2021
        (All amounts in RMB Yuan unless otherwise stated)
        [English translation for reference only]

2       Summary of significant accounting policies and accounting estimates (Cont’d)

(27)    Critical accounting estimates and judgements (Cont’d)

(b)     Critical accounting estimates and key assumptions (Cont’d)

(iii)   Income taxes and deferred income taxes (Cont’d)

        A deferred tax asset is recognised for the carryforward of unused deductible losses to the extent
        that it is probable that future taxable profits will be available against which the deductible losses
        can be utilised. Future taxable profits include taxable profits that can be achieved through normal
        operations and the increase in taxable profits due to the reversal of taxable temporary differences
        arising from previous period in future period. The Group needs to apply estimates and judgements
        in determining the timing and amount of future taxable profits. If there is any difference between
        the actual and the estimates, adjustment may be made to the carrying amount of deferred tax
        assets.

(28)    Significant changes in accounting policies

        The Ministry of Finance released the revised CAS 21 - Lease (hereinafter “new lease standard”) in
        2018, and released the Notice on Adjusting the Application Scope of the Provisions on the
        Accounting Treatment Regarding COVID-19-Related Rent Concessions (Cai Kuai [2021] No. 9),
        the Circular on Issuing Interpretation No. 14 of Accounting Standards for Business Enterprises
        (Cai Kuai [2021] No. 1) and Q&A on Implementation of Accounting Standards for Business
        Enterprises in 2021. The financial statements for the year ended 31 December 2021 have been
        prepared in accordance with the above standard, circular and Q&A. Other than the new lease
        standard, other standard, circular and Q&A have no significant impact on the Group and the
        Company’s financial statements. The impacts of the new lease standard on the financial
        statements of the Group and the Company are as follows:

(a)     Leases

        The Group and the Company initially adopted the new lease standard on 1 January 2021.
        According to new lease standard, the Group and the Company choose not to reassess the
        contracts that have already existed prior to the date of initial application. The Group and the
        Company recognised the cumulative effect of the standard as an adjustment to the opening
        balance of retained earnings in 2021 and relevant line items in the financial statements. The
        comparatives for the year ended 31 December 2020 were not restated.




         - 185 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
2      Summary of significant accounting policies and accounting estimates (Cont’d)

(28)   Significant changes in accounting policies (Cont’d)

(a)    Leases (Cont'd)

                                                                 The amounts affected
(i)    The line items affected                                      1 January 2021
                                                                The Group                      The Company

       Right-of-use assets                                      22,656,355                                   -
       Lease liabilities                                        14,558,389                                   -
       Current portion of non-current
       liabilities                                               8,097,966                                   -

       For the operating lease contracts that have already existed prior to the initial application of the new
       lease standard, the Group and the Company adopt different transition approaches based on the
       remaining lease term:

       For leases with a remaining term of more than 12 months, the Group and the Company recognised
       lease liabilities based on the remaining lease payments and the discount of incremental borrowing
       rate on 1 January 2021, and recognised right-of-use assets at an amount equal to that of lease
       liabilities and made necessary adjustments based on prepaid rentals. The Group and the
       Company adopt the practical expedient to evaluate whether assets are impaired or not at the date
       of initial application. The adoption of the practical expedient has no significant impact on the
       financial statements since there are no onerous contracts for leases at the date of initial
       application.

       The Group and the Company apply the practical expedient for leases with a remaining lease term
       of 12 months or less, under which the right-of-use assets and lease liabilities are not recognised.
       There is no significant impact on the financial statements.

       The Group and the Company apply the practical expedient for operating lease contracts of
       low-value assets existing prior to the initial application of the new lease standard, under which the
       right-of-use assets and lease liabilities are not recognised. There is no significant impact on the
       financial statements.

       In applying the new lease standard, except for prepaid rentals and lease deposit expenditures
       relating to the short-term leases and low-value asset leases which are still recorded in cash
       outflows from operating activities using practical expedient according to the new lease standard,
       other prepaid rentals and lease deposit expenditures are recorded in cash outflows from financing
       activities.




        - 186 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

2      Summary of significant accounting policies and accounting estimates (Cont’d)

(28)   Significant changes in accounting policies (Cont’d)

(a)    Leases (Cont’d)

                                                                    The amounts affected
(i)    The line items affected (Cont’d)                              1 January 2021
                                                           The Group                     The Company

       Right-of-use assets                                      3,710,066,727                                     -
       Fixed assets                                           (2,796,782,627)                                     -
       Construction in progress                                 (913,284,100)                                     -
       Long-term payables                                     (3,241,171,306)                                     -
       Lease liabilities                                        3,303,235,225                                     -
       Other payables                                             (62,063,919)                                    -

       In applying the new lease standard, the Group and the Company reclassified fixed assets and
       construction in progress held under finance leases from “fixed assets and construction in progress”
       to “right-of-use assets”, and finance lease payables from “long-term payables” to “lease liabilities”.

       For the rent concessions as a direct result of COVID-19, agreed with lessees and for the period
       ended 30 June 2022 only, the Group and the Company have applied the practical expedient in the
       above circular for the preparation of the financial statements for the year ended 31 December 2021
       (Note 4(42), Note 15(4)), and there is no significant impact on the financial statements.

       As at 1 January 2021, the Group and the Company adopted the same discount rate for lease
       contracts with similar characteristics to account for lease liabilities. The weighted average of
       incremental borrowing rates adopted was 4.65%.

(ii)   As at 1 January 2021, the Group and the Company reconciled the outstanding minimum operating
       lease payments disclosed under the old lease standard to lease liabilities under the new lease
       standard as follows:

                                                                                    The Group      The Company

       Future minimum operating lease payments disclosed as at 31
          December 2020                                                             67,078,206                    -
       Present value of the above minimum operating lease payments
          discounted using the incremental borrowing rate                           62,047,034                    -
       Add: Finance lease payables as at 31 December 2020                        3,303,235,225                    -
       Less: Present value of payments for leases with a term of 12
                months or less                                                    (39,390,679)                    -
       Lease liabilities recognised as at 1 January 2021 (including
          current portion of non-current liabilities) (Note 2(28)(a)(i))         3,325,891,580                    -




       - 187 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (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              Taxable value-added amount (Tax payable          5%, 6%, 9% and 13%
         (“VAT”) (a)                is calculated using the taxable sale
                                      amount multiplied by the applicable tax
                                      rate less deductible input VAT of the
                                      current period)
                                    Revenue from hydropower sales                                       3%
      City maintenance and          Amount of VAT paid                                            5% to 7%
        construction tax
      Educational surcharge         Amount of VAT paid                                               3%
      Educational surcharge         Amount of VAT paid                                               2%
      Enterprise income tax         Taxable income                                  12.5%, 15%, 20% and
                                                                                                    25%
      Property tax                  Real estate’s rental income or the residual           12% and 1.2%
                                      value from original value less the
                                      deducting proportion
       Environmental                Calculated and paid based on the pollution         Calculated and paid
         protection tax (b)           equivalent values or the discharge of                    based on the
                                      taxable pollutants multiplied by the          applicable tax amounts
                                      applicable tax amounts                          of different pollutants

(a)   Pursuant to the Announcement on Relevant Policies for Deepening the Value-added Tax Reform
      (Cai Shui Haiguan [2019] No. 39) jointly issued by the Ministry of Finance, the State Taxation
      Administration and the General Administration of Customs and relevant regulations, the Group’s
      revenue from sale of electricity, sale of by-products, maintenance and repair services, etc. and
      revenue arising from sale of heat energy is subject to VAT at the rate of 13% and 9% from 1 April
      2019. The Group’s revenue from entrusted loan business among companies and training service is
      subject to VAT at the rate of 6%. The operating leases of the real estates under simplified taxation
      method is subject to VAT at a rate of 5%.

      Pursuant to Notice on the Policy of Streamlining and Combination of Value-added Tax Levy Rates
      jointly issued by the Ministry of Finance and the State Taxation Administration, revenue from sale
      of electricity generated from small hydropower units at the county level or below is subject to VAT
      at the rate of 3%. Three small hydropower plants of Lincang Yudean Energy Co., Ltd. (“Lincang
      Energy”), a subsidiary of the Group, are subject to VAT at the rate of 3%.

      Pursuant to the provisions including the Circular on Enterprise Income Tax Policy concerning
      Deductions for Equipment and Appliances (Cai Shui [2018] No. 54) and the Announcement on
      Extending the Implementation Period of Certain Preferential Tax Policies (Cai Shui [2021] No. 6)
      issued by the State Taxation Administration, during the period from 1 January 2018 to 31
      December 2023, the cost of equipment with the original cost less than RMB 5,000,000 newly
      purchased by Guangdong Yudean Power Sales Co., Ltd. (“Power Sales”), a subsidiary of the
      Group, can be fully deducted against taxable profit in the next month after the asset is put into use,
      instead of being depreciated annually for tax filing.




      - 188 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]
3     Taxation (Cont’d)

(1)   The main categories and rates of taxes applicable to the Group are set out below (Cont’d):

(b)   According to the Environmental Protection Tax Law of the People’s Republic of China, the Group
      has applied the environmental protection tax since 1 January 2018. The taxation objects include air
      pollutants, water pollutants, solid waste and noise. Taxation is based on the amount of pollutants’
      emissions.

(2)   Tax preference

(a)   Pursuant to the approval documents (Cai Shui [2008] No. 46 and Guo Shui Fa [2009] No. 80),
      Guangdong Yudean Dianbai Wind Power Co., Ltd. (“Dianbai Wind Power”), Guangdong Yudean
      Leizhou Wind Power Co., Ltd. (“Leizhou Wind Power”), Guangdong Guangye Nanhua New Energy
      Co., Ltd. (“Nanhua New Energy”), Guangdong Yudean Pingyuan Wind Power Co., Ltd. (“Pingyuan
      Wind Power”), Guangdong Yudean Zhuhai Offshore Wind Power Co., Ltd. (“Zhuhai Wind Power”),
      Hunan Xupu Yuefeng New Energy Co., Ltd. (“Xupu Yuefeng”), Guangxi Wuxuan Yuefeng New
      Energy Co., Ltd. (“Wuxuan Yuefeng”), Guangdong Yudean Yangjiang Offshore Wind Power Co.,
      Ltd. (“Yangjiang Wind Power”), and Shaoguan Nanxiong Yuefeng New Energy Co., Ltd.
      (“Nanxiong New Energy”)are exempted from enterprise income tax in the first three years counting
      from the year when revenue from production and operations is recorded for the first time, and can
      enjoy half rate reduction in the following three years. Dianbai Wind Power posted profits for the first
      time in 2016, Leizhou Wind Power posted profits for the first time in 2017, Nanhua New Energy
      posted profits for the first time in 2019, Pingyuan Wind Power and Zhuhai Wind Power posted
      profits for the first time in 2020, Xupu Yuefeng, Wuxuan Yuefeng, Yangjiang Wind Power and
      Nanxiong New Energy posted profits for the first time in 2021. Therefore, the applicable income tax
      rate of Dianbai Wind Power and Leizhou Wind Power in 2021 was 12.5% (2020: 12.5%), the
      applicable income tax rate of Nanhua New Energy, Pingyuan Wind Power, Zhuhai Wind Power,
      Xupu Yuefeng, Wuxuan Yuefeng, Yangjiang Wind Power and Nanxiong New Energy in 2021 was
      0% (2020: 0%, 0%, 0%, 25%, 25%, 25% and 25%, respectively).

      Pursuant to the Supplementary Notice on Issues Concerning the Preferential Enterprise Income
      Tax Policies for Public Infrastructure Projects (Cai Shui [2014] No. 55), enterprises invest and
      operate public infrastructure projects in compliance with the List of Public Infrastructure Projects
      Enjoying Enterprise Income Tax Preferential, those which adopt one-off approval and are subject
      to construction in batches (such as terminals, berths, airport terminals, runways, sections,
      generator units, etc.) are subject to income tax calculated in units of each batch and enjoy the tax
      preferential policy of “three-year exemptions and three-year halves” when the following conditions
      are satisfied: (i) different batches are space-independent; (ii) each batch has its own revenue
      function; (iii) they are accounted for in units of each batch and are subject to income tax
      individually, while the period expenses are allocated rationally. In 2021, the Group’s subsidiary
      Guangdong Yudean Qujie Wind Power Co., Ltd. (“Qujie Wind Power”) met the above conditions.
      Therefore, Qujie Youhao wind power project (the first time for which profits were posted was 2017),
      Xuwen Shibanling wind power project (the first time for which profits were posted was 2016), Qujie
      Wailuo offshore wind power project (Phase I) (the first time for which profits were posted was
      2019), Qujie Wailuo offshore wind power project (Phase II) (the first time for which profits were
      posted was 2021) and Xinliao offshore wind power project (the first time for which profits were
      posted was 2021) of Qujie Wind Power System are entitled to the tax preferential policy of
      “three-year exemptions and three-year halves” respectively according to each wind power project.

      In addition, 50% of VAT levied on the sale of electricity generated by Guangdong Yudean
      Shibeishan Wind Power Co., Ltd. (“Shibeishan Wind Power”), Guangdong Yudean Zhanjiang Wind
      Power Generation Co., Ltd. (“Zhanjiang Wind Power”), Guangdong Yudean Xuwen Wind Power
      Electricity Co., Ltd. (“Xuwen Wind Power”), Dianbai Wind Power, Huilai Wind Power Co., Ltd.
      (“Huilai Wind Power”) and Guangdong Yueneng Wind Power Co., Ltd. (“Yueneng 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).

3     Taxation (Cont’d)
      - 189 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

(2)   Tax preference (Cont’d)

(b)   In 2020, Zhanjiang Electric Co., Ltd. (“Zhanjiang Electric”), a subsidiary of the Group, was granted
      a High-tech Enterprise Certificate (Certificate No. GR202044010003) by the Department of
      Science and Technology of Guangdong Province, Department of Finance of Guangdong Province
      and Guangdong Provincial Office of the State Taxation Bureau on 9 December 2020. The
      certificate is valid for three years. Under Article 28 of the Enterprise Income Tax Law of the
      People’s Republic of China, the enterprise income tax rate applicable to Zhanjiang Electric for the
      year of 2021 is 15%.

(c)   In accordance with regulations of the Notice on Implementing the Inclusive Tax Deduction and
      Exemption Policies for Micro and Small Enterprises (Cai Shui [2019] No. 13) and Announcement of
      the State Taxation Administration on Matters Concerning the Implementation of Preferential
      Income Tax Policies Supporting the Development of Small Low-Profit Enterprises and Individual
      Industrial and Commercial Households (STA Announcement [2021] No. 8), for a small enterprise
      with low profits, for the part of the annual taxable income not exceeding RMB 1,000,000, the
      amount of taxable income is reduced to 12.5% of income and is subject to the enterprise income at
      the tax rate of 20%; for the part between RMB 1,000,000 and RMB 3,000,000, the amount of
      taxable income is reduced to 50% of income and is subject to the enterprise income at the tax rate
      of 20%. The aforementioned small low-profit enterprise engages in industries not restricted or
      prohibited by the state and concurrently meet the three conditions, that is, the annual taxable
      amount is not more than RMB 3,000,000, the number of its employees is not more than 300, and
      their total assets do not exceed RMB 50,000,000. In 2021, Shenzhen Huaguoquan Electric Power
      Service Co., Ltd. (“Huaguoquan Company”) and Zhanjiang Wanhaowei New Energy Co., Ltd.
      (“Wanhaowei New Energy”) were eligible for small low-profit enterprises. Therefore, in 2021, the
      applicable income tax rate of Huaguoquan Company and Wanhaowei New Energy was 20%
      (2020: 20% for Huaguoquan Company).

(d)   Pursuant to Notice on Issues Concerning the Implementation of the Preferential Catalogue of
      Enterprise Income Tax for Integrated Utilisation of Resources (Cai Shui [2008] No. 47), since 1
      January 2008, enterprises use the resources listed in the Preferential Catalogue of Enterprise
      Income Tax for Integrated Utilisation of Resources (2008 Edition) as the main raw materials to
      produce products in the above catalogue that meet national or industry related standards, and the
      income from above products is reduced to 90% of the total income of the enterprises for the year.
      The Group’s subsidiaries Zhanjiang Electric and Guangdong Huizhou Pinghai Power Plant Co.,
      Ltd. (“Pinghai Power Plant”) use coal ash to produce commercial coal ash, which meets the
      above-mentioned preferential tax conditions for integrated utilisation of resources. The Group’s
      subsidiaries Zhanjiang Electric and Guangdong Huizhou Pinghai Power Plant Co., Ltd. (“Pinghai
      Power Plant”) use coal ash to produce commercial coal ash, which meets the above-mentioned
      preferential tax conditions for integrated utilisation of resources. Therefore, in 2021, revenue from
      sale of coal ash from Zhanjiang Electric and Ping Hai Power Plant was reduced to 90% of the total
      income for the year.




      - 190 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (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 2021      31 December 2020
                                                                                        (Restated)

      Cash on hand                                                    83,108                 83,607
      Cash at bank                                             1,554,213,074          1,017,529,851
      Deposits with Energy Group Finance
         Company (b)                                          6,468,820,757           8,387,469,151
      Other cash balances (c)                                    42,670,394              33,331,741
      Interest receivable                                        39,533,620                       -
                                                               8,105,320,953          9,438,414,350

(a)   As at 31 December 2021, the Group had no offshore deposit (31 December 2020: Nil).

(b)   Deposits with Energy Group Finance Company refer to the deposits placed in Energy Group
      Finance Company (Note 8(6)). Energy Group Finance Company is a financial institution
      established with the approval of the People’s Bank of China. Both the Company and Energy Group
      Finance Company are controlled by GEGC.

(c)   As at 31 December 2021, other cash balances of RMB 42,670,394 (31 December 2020: RMB
      33,331,741) mainly represented deposits for ecological protection and performance guarantees,
      among which other cash balances placed in Energy Group Finance Company was RMB 6,000,000
      (31 December 2020: RMB 6,592,681)(Note 8(5)(e)(ii)).

(2)   Accounts receivables

                                                          31 December 2021       31 December 2020
                                                                                        (Restated)

      Accounts receivables                                    7,030,948,863           5,287,441,906
      Less: Provision for bad debts                               (263,506)               (292,314)
                                                              7,030,685,357           5,287,149,592

(a)   The ageing of accounts receivables is analysed as follows:

                                                          31 December 2021       31 December 2020
                                                                                        (Restated)

      Within 1 year                                           6,602,371,992           5,075,526,193
      1 to 2 years                                              306,931,561             207,388,302
      2 to 3 years                                              119,940,421               4,497,411
      Over 3 years                                                1,704,889                  30,000
                                                              7,030,948,863           5,287,441,906




      - 191 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]
4     Notes to the consolidated financial statements (Cont’d)

(2)   Accounts receivables (Cont’d)

(b)   As at 31 December 2021, the five largest accounts receivables aggregated by debtors are analysed
      as follows:

                                                                       Provision for
                                                          Balance        bad debts        % of total balance

      Total balance of the five largest
       accounts receivable                           6,674,878,822                 -                94.94%

(c)   Provision for bad debts

      For accounts receivables, the Group recognises the lifetime ECL regardless of whether there exists
      a significant financing component.

      From 31 December 2021, the Group’s recognition standards and accrual methods for provision for
      bad debts of accounts receivable are detailed in Note 2(9).

      As at 31 December 2021, provision for bad debts made on a collective basis for accounts
      receivables is analysed as follows:

      Group 1- Receivables from sale of electricity

      As at 31 December 2021, the Group’s receivables from sale of electricity amounted to RMB
      6,974,790,832 (31 December 2020: RMB 5,233,433,241), which mainly comprised receivables from
      China Southern Power Grid Co., Ltd. and its subsidiaries (collectively referred to as “China Southern
      Power Grid”). Considering the favourable credit history of China Southern Power Grid Co., Ltd., the
      Group held that there was no significant credit risk arising from receivables from sale of electricity.
      Since the possibility of material losses due to the default by China Southern Power Grid Co., Ltd.
      was extremely low, the ECL for the receivables from sale of electricity was 0% (31 December 2020:
      0%).

      Group 2 – Receivables from related parties

      As at 31 December 2021, the Group’s receivables from related parties amounted to RMB
      32,237,080 (31 December 2020: RMB 28,110,387), and the historical loss rate was extremely low.
      Therefore, The Group held that there was no significant credit risk arising from receivables from
      related parties. Since the possibility of material losses due to the default by China Southern Power
      Grid Co., Ltd. was extremely low, the ECL for the receivables from related parties was 0% (31
      December 2020: 0%).




      - 192 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]
4     Notes to the consolidated financial statements (Cont’d)

(2)   Accounts receivables (Cont’d)

(c)   Provision for bad debts (Cont’d)

      Group 3 - Receivables from sale of steam and others

                                    31 December 2021                     31 December 2020 (Restated)
                                Book                                      Book
                              balance      Provision for bad debts      balance       Provision for bad debts
                                              Lifetime                                  Lifetime
                              Amount        ECL rates      Amount       Amount        ECL rates       Amount


      Within 1 year       23,836,136              0.97%   (231,175)   25,837,975          1.00%     (258,380)
      1 to 2 years            35,568             10.00%     (3,557)       25,790         10.00%       (2,580)
      2 to 3 years            29,247             30.00%     (8,774)        4,513         30.00%       (1,354)
      Over 3 years            20,000            100.00%    (20,000)       30,000        100.00%      (30,000)
                          23,920,951                      (263,506)   25,898,278                    (292,314)

(d)   In 2021, the amount of provision for bad debts of accounts receivables was RMB 263,506 (2020:
      RMB 292,314), and the amount of reversed provision for bad debts of accounts receivables in the
      current year was RMB 292,314 (2020: RMB 155,421), with corresponding book balance of RMB
      23,920,951 (2020: RMB 25,898,278). There was no provision for bad debts of accounts receivables
      written off (2020: Nil).

(e)   As at 31 December 2021, the right to collect electric charges of the Group’s certain subsidiaries,
      were pledged to banks to obtain long-term borrowings of RMB 6,002,119,898, including current
      portion of long-term borrowings of RMB 386,056,214 (31 December 2020: long-term borrowings of
      RMB 4,193,207,913, including current portion of long-term borrowings of RMB 298,558,767).




      - 193 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]
4     Notes to the consolidated financial statements (Cont’d)

(3)   Advances to suppliers

                                                           31 December 2021             31 December 2020
                                                                                               (Restated)

      Advances to suppliers                                     892,886,238                   785,646,468
      Less: Provision for impairment                              (115,000)                     (803,017)
                                                                892,771,238                   784,843,451

(a)   The ageing of advances to suppliers is analysed as follows:

                                       31 December 2021                   31 December 2020 (Restated)
                                       Amount % of total balance              Amount    % of total balance

      Within 1 year              890,361,044              99.72%          781,775,219              99.51%
      1 to 2 years                 1,256,263               0.14%            2,226,260               0.28%
      2 to 3 years                    563,276               0.06%             894,606               0.11%
      Over 3 years                    705,655               0.08%             750,383               0.10%
                                  892,886,238             100.00%         785,646,468             100.00%

      As at 31 December 2021, advances to suppliers with ageing over one year amounted to RMB
      2,525,194 (31 December 2020: RMB 3,871,249), mainly including prepayments for spare parts
      and materials.

(b)   Provision for impairment accrued in the current year

                                                                          2021                       2020
                                                                                                (Restated)

      Opening balance                                                 (803,017)                (1,052,822)
      Write-off in the current year                                     688,017                          -
      Reversal in current year                                                -                    249,805
      Ending balance                                                  (115,000)                  (803,017)

(c)   As at 31 December 2021, the five largest advances to suppliers aggregated by debtors are
      analysed as follows:

                                                                        Amount           % of total balance

      Total amount of advances to five largest
        debtors                                                     778,271,276                    87.16%




      - 194 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]
4     Notes to the consolidated financial statements (Cont’d)

(4)   Other receivables

                                                          31 December 2021       31 December 2020
                                                                                        (Restated)

      Receivables from disposals of terminal
         assets and other related parties (Note
         8(5)(i))                                            1,732,123,164                       -
      Land withdrawal receivable                               302,530,718             166,917,613
      Receivables from business units                          127,046,011              18,954,769
      Supplementary medical insurance fund
         receivable                                                98,784,664           96,056,921
      Receivables from sale of by-products                         95,418,898           92,958,555
      Land deposits receivable                                     23,446,000           23,446,000
      Compensation receivable for electricity
         charges during the demolition and
         construction period                                       15,824,336           11,881,442
      Dividends receivable                                          5,633,417           31,500,000
      Government grants receivable                                  3,646,053              795,316
      Petty cash receivable                                         2,646,600            4,321,532
      Interest receivable                                                   -           44,988,586
      Prepaid fuel receivable                                               -          195,747,000
      Others                                                       60,123,674           43,470,363
                                                                2,467,223,535          731,038,097

      Less: Provision for bad debts                               (37,747,977)       (212,396,328)
                                                                2,429,475,558          518,641,769

(a)   The ageing of other receivables is analysed as follows:

                                                          31 December 2021       31 December 2020
                                                                                        (Restated)

      Within 1 year                                           2,226,475,458           432,013,325
      1 to 2 years                                              168,657,304            16,820,975
      2 to 3 years                                                5,694,340            47,961,014
      Over 3 years                                               66,396,433           234,242,783
                                                              2,467,223,535           731,038,097




      - 195 -
          GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

          NOTES TO THE FINANCIAL STATEMENTS
          FOR THE YEAR ENDED 31 DECEMBER 2021
          (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)   Loss provision and changes in book balance

                                                                          Stage 1                                                 Stage 3
                                             12-month ECL (group)        12-month ECL (individual)        Sub-total    Lifetime ECL (credit impaired)             Total
                                                         Provision for                 Provision for   Provision for                     Provision for    Provision for
                                          Book balance      bad debts    Book balance     bad debts      bad debts     Book balance          bad debts      bad debts

           31 December 2020
              (Restated)                    71,541,340    (10,969,221)    458,069,650              -   (10,969,221)     201,427,107     (201,427,107)    (212,396,328)
               Increase in the
              current year                 118,307,986     (7,964,510)   1,853,949,953             -    (7,964,510)      14,524,157      (14,524,157)     (22,488,667)
               Reversal in the
              current year                 (54,151,642)       692,002                -             -       692,002                 -                 -        692,002
               Write-off in the
              current year                   (110,232)         110,232               -             -        110,232    (196,334,784)     196,334,784      196,445,016
           31 December 2021                135,587,452    (18,131,497)   2,312,019,603             -   (18,131,497)       19,616,480     (19,616,480)     (37,747,977)




- 196 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (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)   Loss provision and changes in book balance (Cont’d)

      As at 31 December 2021 and 31 December 2020, the Group did not have other receivables at Stage
      2. Other receivables at Stage 1 and Stage 3 are analysed as follows:

(i)   As at 31 December 2021, other receivables for which the related provision for bad debts was provided
      on the individual basis are analysed as follows:

                                                      12-month    Provision for
                                 Book balance         ECL rates     bad debts                                        Reason
      Stage 1
                                                                                      The counterparty is a related party,
                                                                                           with a historical loss rate of 0% ;
        Receivables from                                                                         therefore, the risk of ECL is
          related parties       1,817,008,915             0.00%               -                                 extremely low.
        Land withdrawal                                                            The counterparty is a government unit
          receivable              288,756,218             0.00%               -     and the risk of ECL is extremely low.
                                                                                    The counterparty is Taikang Pension
                                                                                               Co., Ltd. Guangdong Branch
                                                                                       (“Taikang Pension”), which mainly
                                                                                         provides custody services for the
        Supplementary                                                                      Group’s supplementary medical
          medical                                                                      insurance fund. The historical loss
          insurance fund                                                                  rate is 0%, and the risk of ECL is
          receivable                98,784,664            0.00%               -                                 extremely low.
                                                                                        The amount has the performance
        Receivables from                                                                guarantee issued by bank with an
          business units            58,920,000            0.00%               -                     extremely low risk of ECL.
        Land deposits                                                              The counterparty is a government unit
          receivable                23,446,000            0.00%               -     and the risk of ECL is extremely low.
        Compensation                                                              The demolition and construction project
          receivable for                                                                      is initiated by the state-owned
          electricity                                                                              industrial park, which pays
          charges during                                                                compensation expenses, and the
          the demolition                                                                         risk of ECL is extremely low
          and construction
          period                    15,824,336            0.00%               -
                                                                                The counterparty has good credit, with
        Dividends                                                                  a historical loss rate of 0%, and the
           receivable                5,633,417            0.00%               -           risk of ECL is extremely low.
        Government grants                                                       The counterparty is a government unit
           receivable               3,646,053             0.00%               -  and the risk of ECL is extremely low.
                                2,312,019,603                                 -

                                         Book        Lifetime     Provision for
                                       balance      ECL rates       bad debts                      Reason
      Stage 3
        Receivables from                                                           Unrecoverable by estimation since the
          business units            13,889,589       100.00%      (13,889,589)         counterparty is financially difficult.
                                                                                   Unrecoverable by estimation since the
        Others                       5,726,891       100.00%       (5,726,891)         counterparty is financially difficult.
                                    19,616,480                    (19,616,480)




      - 197 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (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)   Loss provision and changes in book balance (Cont’d)

(i)   As at 31 December 2020, other restated receivables for which the related provision for bad debts was
      provided on the individual basis are analysed as follows:

                                                                  Provision
                                         Book         12-month      for bad
                                       balance         ECL rate       debts                                          Reason
      Stage 1
         Land withdrawal                                                        The counterparty is a government unit and
          receivable              166,917,613             0.00%            -                the risk of ECL is extremely low.
                                                                                 The counterparty is a related party, with a
          Receivables from                                                         historical loss rate of 0% ; therefore, the
           related parties        127,472,358             0.00%            -                     risk of ECL is extremely low.
                                                                               The counterparty is Taikang Pension, which
                                                                                   mainly provides custody services for the
          Supplementary                                                                      Group’s supplementary medical
           medical insurance                                                      insurance fund. The historical loss rate is
           fund receivable          96,056,921            0.00%            -     0%, and the risk of ECL is extremely low.
                                                                                   The counterparty has good credit, with a
         Dividends                                                                 historical loss rate of 0%, and the risk of
      receivable                    31,500,000            0.00%            -                             ECL is extremely low.
         Land deposits                                                          The counterparty is a government unit and
           receivable               23,446,000            0.00%            -                the risk of ECL is extremely low.
         Compensation                                                            The demolition and construction project is
           receivable for                                                                initiated by the government-owned
           electricity charges                                                   industrial park, which pays compensation
           during the                                                                       expenses, and the risk of ECL is
           demolition and                                                                                        extremely low
           construction period      11,881,442            0.00%            -
         Government grants                                                      The counterparty is a government unit and
           receivable                 795,316             0.00%            -             the risk of ECL is extremely low.
                                  458,069,650                              -

                                         Book        Lifetime      Provision for
                                       balance      ECL rates        bad debts                                       Reason
      Stage 3
         Receivables from                                                       Unrecoverable by estimation due to the
          business units             2,394,279       100.00%        (2,394,279)    counterparty is in financial difficulty.
         Petty cash                                                                Unrecoverable by estimation due to
          receivable                    34,676       100.00%           (34,676)           resignation of the employee
         Prepaid coal                                                              Unrecoverable by estimation due to
          receivables             195,747,000        100.00%      (195,747,000)                      long-term pending
                                                                                 Unrecoverable by estimation since the
          Others                     3,251,152       100.00%        (3,251,152)      counterparty is financially difficult.

                                  201,427,107                     (201,427,107)




      - 198 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (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)    Loss provision and changes in book balance (Cont’d)

(ii)   As at 31 December 2021 and 31 December 2020, other receivables for which the related provision for
       bad debts was provided on the collective basis are all within stage 1, which are analysed as follows:

                                                                            31 December 2021
                                                           Book balance               Loss provision
                                                                Amount              Amount        Provision ratio

       Group 1
          Within 1 year                                     112,414,194              (909,472)                   0.81%
          1 to 2 years                                        6,183,553              (807,222)                  13.05%
          2 to 3 years                                          860,422              (288,519)                  33.53%
          Over 3 years                                       16,129,283           (16,126,284)                  99.98%
                                                            135,587,452           (18,131,497)                  13.37%

                                                                     31 December 2020 (Restated)
                                                           Book balance             Loss provision
                                                                Amount             Amount        Provision ratio

       Group 1
          Within 1 year                                      56,546,038              (565,460)                    1.00%
          1 to 2 years                                        4,468,849              (479,148)                   10.72%
          2 to 3 years                                          944,454              (342,614)                   36.28%
          Over 3 years                                        9,581,999            (9,581,999)                  100.00%
                                                             71,541,340           (10,969,221)                   15.33%

(c)    The amount of provision for bad debts of other receivables in the current year was RMB 22,488,667
       (2020: RMB 2,316,369), and the amount of reversed provision for bad debts of other receivables in the
       current year was RMB 692,002 (2020: RMB 1,594,751), with corresponding book balance of RMB
       54,151,642 (2020: RMB 212,396,328).

       The balance of other receivables that were written off in the current year was RMB 196,445,016, and
       the provision for bad debts was RMB 196,445,016, of which significant other receivables were
       analysed as follows:

                                                                                                                  Arising from
                                                                                                Procedures       related-party
                                        Nature of other      Amount of        Reasons for     performed for       transactions
                                           receivables       written-off        written-off       written-off            or not

                                                                       Transfer to Energy
                                           Prepaid fuel                    Group without Written off with
        GEGC                                   payable     195,747,000     compensation         approval                  Yes
        Shanwei Great Forest                  Accident                     The company
           Culture Communication         compensation                            declared Written off with
           Co., Ltd.                        receivable         587,784        bankruptcy        approval                   No




       - 199 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (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)   As at 31 December 2021, the five largest other receivables aggregated by debtors are analysed as follows:

                                                                                                    % of total    Provision for
                                                          Nature        Balance      Ageing          balance        bad debts

      Guangdong Electric Power             Receivables from
        Industry Fuel Co., Ltd.         disposals of terminal                       Within 1
        (“Industry Fuel”)                            assets 1,602,258,185            year           64.95%                  -
      Meixian District People’s
        Government of Meizhou                Land withdrawal
        City                                      receivable        146,885,400 1 to 2 years           5.95%                  -
      Guangdong Energy Financial            Current accounts                        Within 1
        Leasing Co., Ltd.                         receivable        129,864,979         year           5.26%                  -
      People’s Government of
        Yamen Town, Xinhui                 Land withdrawal                          Within 1
        District, Jiangmen City                  receivable         109,094,018        year            4.42%                  -
                                     Supplementary medical
                                            insurance fund                          Within 4
      Taikang Pension                            receivable           98,784,664      years            4.00%                  -
                                                                   2,086,887,246                      84.58%                  -

(e)   As at 31 December 2021, the Group’s government grants recognised at amounts receivable are the
      reimbursement for the immediate refund of VAT.

(5)   Inventories

(a)   Inventories are summarised by categories as follows:

                                 31 December 2021                                    31 December 2020 (Restated)
                                    Provision for                                            Provision for
                                   decline in the                                           decline in the
                                         value of                                                 value of
                    Book balance     inventories Carrying amount             Book balance     inventories Carrying amount

      Fuel          2,189,710,739                 -       2,189,710,739       938,456,934        (219,427)        938,237,507
      Spare
        parts         817,710,542    (34,044,608)           783,665,934       783,592,186      (55,066,705)        728,525,481
      Others           25,517,866               -            25,517,866        17,232,030                 -         17,232,030
                    3,032,939,147    (34,044,608)         2,998,894,539     1,739,281,150      (55,286,132)      1,683,995,018




      - 200 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]
4     Notes to the consolidated financial statements (Cont’d)

(5)   Inventories (Cont’d)

(b)   Provision for decline in the value of inventories is analysed as follows:

                                          31 December 2020              Written off in
                                                 (Restated)             current year       31 December 2021

      Spare parts                                 (55,066,705)           21,022,097              (34,044,608)
      Fuel                                           (219,427)              219,427                         -
                                                  (55,286,132)           21,241,524              (34,044,608)

(c)   Provision for decline in the value of inventories is as follows:

                                   Specific basis for determining net realisable value     Reason for write-off

                                    The carrying amount is higher than the amount of
                                    net realisable value of the disposal proceeds less
      Spare parts and fuel                                                 costs to sell   Disposal/use/scrap

(6)   Contract assets

                                                           31 December 2021                31 December 2020
                                                                                                  (Restated)

      Contract assets                                               4,776,709                       3,354,788
      Less: Provision for impairment of
              contract assets                                         (21,889)                        (12,512)
                                                                    4,754,820                       3,342,276




      - 201 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

 4    Notes to the consolidated financial statements (Cont’d)

(7)   Current portion of non-current assets

                                                          31 December 2021        31 December 2020
                                                                                         (Restated)

      Less: Current portion of finance lease
             deposit                                                       -             49,785,734

      As at 31 December 2021, there was no current portion of non-current assets (As at 31 December
      2020, current portion of non-current assets represented the present value of the deposit of RMB
      50,000,000 paid for sales and leaseback of fixed assets).

(8)   Other current assets

                                                          31 December 2021       31 December 2020
                                                                                        (Restated)

      Input VAT to be deducted                                1,238,295,329             671,309,935
      Prepayment of income tax                                  174,867,263               4,298,155
      Others                                                     4,823,016                  739,240
                                                              1,417,985,608             676,347,330

(9)   Long-term equity investments

                                                          31 December 2021       31 December 2020
                                                                                        (Restated)

      Joint ventures (a)                                       654,820,514              531,313,393
      Associates (b)                                         7,513,715,690            6,862,747,583
                                                              8,168,536,204           7,394,060,976

      Less: Provision for impairment of long-term
              equity investments                                (96,327,854)            (96,327,854)
                                                              8,072,208,350           7,297,733,122




      - 202 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (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 in the current year
                                                                             Share of net Share of other
                                                                              profit/(loss) comprehensive         Cash                                     Ending balance of
                                    31 December 2020           Increase in   under equity     income (Note   dividends                                          provision for
                                           (Restated)      investments (i)        method            4(39))     declared   Others (ii)   31 December 2021     impairment loss

       Industry Fuel                       531,313,393       180,000,000     115,205,500       7,900,250 (29,649,898) (159,298,731)          645,470,514                    -
       Zhanjiang Yuexin
          Distributed Energy and
          Technique Co., Ltd.
          (“Yuexin Energy”)                        -         9,350,000               -               -            -             -            9,350,000                    -
                                           531,313,393       189,350,000     115,205,500       7,900,250 (29,649,898) (159,298,731)          654,820,514                    -

       Please refer to Note 6(2) for related information of interest in joint ventures.

(i)    As at 21 December 2020, pursuant to the Proposal on Capital Increase in Guangdong Power Industry Fuel Co., Ltd. approved by the Board of Directors, the
       Company was permitted to make a capital increase of RMB 180,000,000 to Industry Fuel at its original proportion of shareholding, which had been invested
       as at 25 June 2021.

(ii)   In 2021, for the purpose of optimising asset structure and promoting high-quality development, Guangdong Yudean Bohe Energy Co., Ltd. (“Bohe Energy),
       a subsidiary of the Group, disposed of terminal assets to Industry Fuel with the transaction price of RMB 2,800,327,000 (excluding tax). The transaction is a
       downstream transaction, therefore, the long-term equity investments in Industry Fuel are adjusted according to share of unrealised internal gains or losses
       based on the shareholding. See Note 4(13)(a)(i) for information concerning this transaction.




       - 203 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (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 in the current year
                                                                                     Share of net    Share of other     Share of
                                         31 December                                  profit/(loss) comprehensive          other    Cash dividends                 Ending balance
                                                 2020      Increase in Decrease in   under equity     income (Note changes in             or profits   31 December of provision for
                                            (Restated)    investments investments         method             4(39))    equity (v)         declared            2021 impairment loss

      Shanxi Yudean Energy Co.,
        Ltd. (“Shanxi Yudean
        Energy”) (i)                    1,819,132,396    64,000,000             -   480,044,857                   -            -                  -   2,363,177,253              -
      Guangdong Guohua Yudean
        Taishan Electric Co., Ltd.
        (“Taishan Electric”)           1,889,026,588              -            -    (3,409,558)                  -            -    (101,148,944)     1,784,468,086              -
      Energy Group Finance
        Company                          1,635,580,660              -            -   145,758,481         7,709,485              -    (122,273,962)     1,666,774,664              -
      Guangdong Energy Financial
        Leasing Co., Ltd. (“Energy
        Financial Leasing
        Company”)                        522,483,539               -            -    22,399,917                   -            -     (12,576,669)      532,306,787               -
      GEG Property&Casualty
        Captive Insurance Co., Ltd.
        (“GEG Property Insurance”)      268,468,953               -            -     9,569,443                   -            -       (1,505,619)     276,532,777               -
      Guangdong Yudean Shipping
        Co., Ltd. (“Yudean
        Shipping”)                       241,738,113               -            -     7,347,225          (330,519)    (799,924)                   -    247,954,895               -
      South Sea Wind Electricity
        Development Co., Ltd.
        (“South Sea Wind
        Electricity”) (ii)                          - 161,552,820               -     6,259,387                   -            -                  -    167,812,207               -
      Guizhou Yueqian Power Co.,
        Ltd. (“Yueqian Power”) (iii)               - 144,018,912               -     11,125,044           (1,633)    6,183,547                 -       161,325,870              -
      Weixin Yuntou                        175,592,218           -               -   (36,782,167)                 -            -                 -       138,810,051   (96,327,854)
      Sub-total for next page            6,552,022,467 369,571,732               -   642,312,629         7,377,333     5,383,623     (237,505,194)     7,339,162,590   (96,327,854)




      - 204 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (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 (Cont’d)

                                                                                           Movements in the current year
                                                                                                                                                                                     Ending
                                                                                           Share of net      Share of other      Share of                                         balance of
                                          31 December                                       profit/(loss)   comprehensive           other    Cash dividends                     provision for
                                                  2020       Increase in     Decrease in   under equity       income (Note     changes in          or profits                    impairment
                                             (Restated)     investments      investments        method               4(39))     equity (v)         declared 31 December 2021            loss
      Huaneng Shantou Wind Power
        Co., Ltd. (“Huaneng Shantou
        Wind Power”)                          55,092,902              -               -      4,722,806                    -             -      (5,633,417)       54,182,291                -
      Yunfu Power Plant (B Power
        Plant) Co., Ltd. (“Yunfu B”) (iv)             -    31,256,379                -   (21,660,094)                    -             -                -        9,596,285    (20,819,280)
      Guangdong Yuedian Stock West
        Investment Co., Ltd. (“West
        Investment”) (iii)                   144,018,912             -    (144,018,912)             -                   -             -                  -                -               -
      Others                                   15,285,448             -                -     1,245,144                   -             -        (2,083,922)       14,446,670               -
      Total                                 6,766,419,729   400,828,111    (144,018,912)   626,620,485           7,377,333     5,383,623      (245,222,533)    7,417,387,836   (117,147,134)


      Please refer to Note 6(2) for related information of equity in associates.




      - 205 -
        GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

        NOTES TO THE FINANCIAL STATEMENTS
        FOR THE YEAR ENDED 31 DECEMBER 2021
        (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 (Cont’d)

(i)     As at 27 April 2021, the Company and GEGC increased a capital of RMB 160,000,000 to Shanxi
        Yudean Energy in proportion of the shareholding, for the investment in Jilin Qian’an Phase I 50MW
        Wind Power Project and Hebei Pingshan 100MW Photovoltaic Project, among which the Company
        contributed RMB 64,000,000 at the shareholding proportion of 40%.

(ii)    As at 14 January 2021, Guangdong Wind Power Generation Co Ltd. (“Guangdong Wind Power”)
        acquired 10% equity of South Sea Wind Electricity at a consideration of RMB 70,500,820, which
        was originally held by Guangzhou Environment Protection Investment Group Co., Ltd. (formerly
        known as Guangdong Guangye Group Co., Ltd.). The Group held 20% equity of South Sea Wind
        Electricity, and participated in and influenced the company’s financial and operating policy
        decisions, which had significant impact on South Sea Wind Electricity and changed the investment
        in other equity instruments previously held by the Company to long-term equity investments at the
        consolidated level. On 26 September 2021, the Company and Guangdong Wind Power increased
        their capital by RMB 10,000,000 in the same proportion to South Sea Wind Electricity.

(iii)   As at 28 July 2021, Yueqian Power merged West Investment, (Western Investment was originally
        an associate in which the Company held 26% of its equity). After the merger, the Company's
        shareholding in Yueqian Power was reduced to 13% due to the capital increase by other
        shareholders. The Company is still able to participate in the activities and influence its financial and
        operating policy decisions, and can have significant impact on Yueqian Power.

(iv)    As at 26 May 2021, Sha C Company, a subsidiary of the Company, accepted 15% equity of Yunfu
        B held by Guangdong Electric Power Development Co., Ltd. at no cost, with the corresponding
        original cost of RMB 52,075,659, provision for impairment of RMB 20,819,280 and carrying amount
        of RMB 31,256,379, and was able to have significant impact on its operating decisions and
        economic activities. The long-term equity investments were accounted for using the equity method.

(v)     In 2021, other changes in equity from long-term equity investments in associates were changes in
        capital surplus of RMB 5,383,623 (2020: changes in capital surplus of RMB 5,343,382).

(10)    Investments in other equity instruments

                                                                                             Cash dividends in
                                              31 December 2021       31 December 2020         the current year
                                                                            (Restated)

        Investments in equity
          instrument not held for
          trading
             - Equity of listed
               companies                              547,728,682            393,587,145            20,020,230
             - Equity of unlisted
               companies                           2,684,300,000           3,155,300,870            67,711,178
                                                   3,232,028,682           3,548,888,015            87,731,408




        - 206 -
           GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

           NOTES TO THE FINANCIAL STATEMENTS
           FOR THE YEAR ENDED 31 DECEMBER 2021
           (All amounts in RMB Yuan unless otherwise stated)
           [English translation for reference only]

    4      Notes to the consolidated financial statements (Cont’d)

    (10)   Investments in other equity instruments (Cont’d)

           Including:

                                                                                                                                                % of
                                                                          31 December 2020    Movements in the                         shareholding    Cash dividends in
                                                                                 (Restated)       current year   31 December 2021        in investee    the current year

           Investments in other equity instruments - cost
              - Shenzhen Energy Corporation (“Shenzhen Energy”) (a)           15,890,628                   -          15,890,628           0.32%            3,931,200
              - Shanghai Shenergy Co., Ltd. (“Shanghai Shenergy”) (b)        235,837,988                   -         235,837,988           1.13%           15,549,030
              - GMG International Tendering Co., Ltd. (“GMG
                  Tendering”) (c)                                               3,600,000                   -           3,600,000           1.17%              540,000
              - Shenzhen Capital Group Co., Ltd. (“SCG”) (d)                 328,034,000                   -         328,034,000           3.67%           25,711,178
              - Sunshine Insurance (e)                                         356,000,000                   -         356,000,000           3.38%           42,000,000
              - South Sea Wind Electricity (f)                                  70,000,000        (70,000,000)                   -                -                   -
              - Gaozhou Yawu Hydropower Co., Ltd. (“Yawu
                  Hydropower”)                                                     800,000                  -             800,000          25.00%                    -
                                                                              1,010,162,616       (70,000,000)         940,162,616                           87,731,408

           Investments in other equity instruments - accumulated
                  changes in fair value
              - Shenzhen Energy (a)                                              76,190,172        30,391,200          106,581,372
              - Shanghai Shenergy (b)                                            54,040,357       119,394,337          173,434,694
              - GMG Tendering (c)                                                 8,028,000         4,356,000           12,384,000
              - SCG (d)                                                         719,966,000       (18,000,000)         701,966,000
              - Sunshine Insurance (e)                                        1,680,000,000      (382,500,000)       1,297,500,000
              - South Sea Wind Electricity (f)                                      500,870          (500,870)                   -
                                                                              2,538,725,399      (246,859,333)       2,291,866,066


           Total                                                              3,548,888,015      (316,859,333)       3,232,028,682

           The Group holds the voting rights of the above investees. However, the voting rights held by the Group is only related to the administrative management of
           those investees, and the Group does not participate in or influence the financial and operating decisions of the above investees in any ways. Therefore, the
           Group has no significant influence on the above investees, and accordingly they are accounted for as investments in other equity instruments.

- 207 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(10)   Investments in other equity instruments (Cont’d)

(a)    As at 31 December 2021, the Company held 15,120,000 tradable A shares in Shenzhen Energy
       with fair value of RMB 122,472,000, 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, gains on
       fair value amounted to RMB 30,391,200 (2020: RMB 13,834,800), and other comprehensive
       income was adjusted upwards accordingly.

(b)    As at 31 December 2021, the Company held 55,532,250 tradable A shares in Shanghai Shenergy
       with fair value of RMB 409,272,682, 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, gains on
       fair value amounted to RMB 119,394,337 (2020: Losses of RMB 32,764,028), and other
       comprehensive income was adjusted upwards accordingly.

(c)    As at 31 December 2021, the Company held 1,800,000 shares of GMG International Tendering
       Co., Ltd. listed at the National Equities Exchange and Quotations system with fair value of RMB
       15,984,000, and the investment cost was RMB 3,600,000. The investment was stated at fair value
       with reference to the market price. During the year, gains on fair value amounted to RMB
       4,356,000 (2020: RMB 4,446,000), and other comprehensive income was adjusted upwards
       accordingly.

(d)    As at 31 December 2021, the fair value of the equity that the Company held in SCG amounted to
       RMB 1,030,000,000, and the investment cost was RMB 328,034,000. During the year, losses on
       fair value amounted to RMB 18,000,000 (2020: Gains of RMB 82,263,440), and other
       comprehensive income was adjusted downwards accordingly.

(e)    As at 31 December 2021, the fair value of the equity that the Company held in Sunshine Insurance
       amounted to RMB 1,653,500,000, and the investment cost was RMB 356,000,000. During the
       year, losses on fair value amounted to RMB 382,500,000 (2020: Gains of RMB 268,000,000), and
       other comprehensive income was adjusted downwards accordingly.

(f)    In 2021, the proportion of equity that the Group held in South Sea Wind Electricity was increased.
       Thus, the Group had significant impact on South Sea Wind Electricity, and the corresponding
       investments were reclassified into long-term investments for subsequent measurement under the
       equity method from investments in other equity instruments. Please refer to Note 4(9)(b)(ii).




       - 208 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
4      Notes to the consolidated financial statements (Cont’d)

(11)   Investment properties

                                                           Buildings       Land use rights               Total

       Cost
         - Opening balance
             (Restated)                               154,786,873              46,042,801         200,829,674
         - Transfer from fixed
             assets                                   353,943,904                       -         353,943,904
         - Ending balance                             508,730,777              46,042,801         554,773,578

       Accumulated depreciation
          - Opening balance
              (Restated)                              (59,400,045)           (10,238,371)         (69,638,416)
          - Transfer from fixed
              assets in the current
              year                                    (96,357,361)                       -        (96,357,361)
          - Increase in the current
              year (a)                                (9,077,210)               (903,659)          (9,980,869)
          - Ending balance                          (164,834,616)            (11,142,030)        (175,976,646)

       Carrying amount
         - Ending balance                             343,896,161              34,900,771         378,796,932
         - Opening balance
              (Restated)                               95,386,828              35,804,430         131,191,258

(a)    In 2021, depreciation charged to investment properties amounted to RMB 9,980,869 (2020: RMB
       5,949,030) among which depreciation expenses charged to cost of sale, and general and
       administrative expenses were RMB 9,345,271 and RMB 635,598 (2020: RMB 5,179,214 and RMB
       769,816) respectively.

(b)    As at 31 December 2021, the Group had obtained land use right certificates for all of its lands,
       except for lands with carrying amount of RMB 849,072 that were under approval procedures for
       land use. After consulting the Group’s legal consultant, management believed that there were no
       substantial legal obstacles in obtaining the certificates and no material adverse impact on the
       normal operation of the Group would incur.

(12)   Fixed assets

                                                                   31 December 2021          31 December 2020
                                                                                                    (Restated)

       Fixed assets (a)                                                56,845,149,633           54,407,836,423
       Disposals of fixed assets (b)                                       97,976,623               84,789,752
                                                                       56,943,126,256           54,492,626,175




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       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(12)   Fixed assets (Cont’d)

(a)    Fixed assets

                                                                  Buildings   Power generation equipment    Motor vehicles   Other equipment               Total
                                                                   Self-use                      Self-use         Self-use           Self-use
       Cost
       31 December 2020 (Restated)                          28,947,058,491                85,030,884,920    1,244,779,422      1,445,419,497    116,668,142,330
       Changes in accounting policies (Note 2(28)(a))                    -                (3,889,828,294)               -                        (3,889,828,294)
       1 January 2021                                       28,947,058,491                81,141,056,626    1,244,779,422      1,445,419,497    112,778,314,036
       Increase in the current year
            Purchase                                            30,412,013                    45,409,029       28,866,400         48,340,582        153,028,024
            Transfers from construction in progress (ii)     3,274,405,597                 6,137,970,869          338,354         32,332,660      9,445,047,480
            Transfers from right-of-use assets                           -                 1,000,000,000                -                  -      1,000,000,000
            Donations received                                           -                        46,860          220,005                  -            266,865
            Business combinations involving
             enterprises not under common control
             (Note 5)                                          508,480,599                 2,291,464,170        1,773,297          2,475,051      2,804,193,117
       Decrease in the current year
            Disposal and scrap (iii)                        (1,836,712,000)                (967,649,047)    (612,740,961)       (49,191,253)    (3,466,293,261)
            Reclassification to other current assets (iv)       (4,416,584)                            -                -                  -        (4,416,584)
            Transfer to investment properties                 (353,943,904)                            -                -                  -      (353,943,904)
            Decrease in disposals of subsidiaries in the
             current year                                                -                             -       (800,665)          (1,658,310)        (2,458,975)
            Others - Bohe capacity offset (v)                (103,522,789)                 (477,609,287)               -                    -     (581,132,076)
       31 December 2021                                     30,461,761,423                89,170,689,220     662,435,852       1,477,718,227    121,772,604,722




       - 210 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
4      Notes to the consolidated financial statements (Cont’d)

(12)   Fixed assets (Cont’d)

(a)    Fixed assets

                                                                  Buildings   Power generation equipment    Motor vehicles   Other equipment               Total
                                                                   Self-use                      Self-use         Self-use           Self-use
       Accumulated depreciation
       31 December 2020 (Restated)                         (11,401,241,163)             (48,106,419,592)    (495,324,531)    (1,037,460,071)    (61,040,445,357)
       Changes in accounting policies (Note 2(28)(a))                     -                1,093,045,667                -                  -       1,093,045,667
       1 January 2021                                      (11,401,241,163)             (47,013,373,925)    (495,324,531)    (1,037,460,071)    (59,947,399,690)
       Increase in the current year
            Provision (i)                                    (694,666,739)                (3,210,784,299)    (42,640,700)       (70,370,445)     (4,018,462,183)
            Transfers from right-of-use assets                           -                  (725,006,706)               -                  -       (725,006,706)
       Decrease in the current year
            Disposal and scrap (iii)                            62,011,601                   671,545,725       59,863,455         41,348,680        834,769,461
            Transfer to investment properties                   96,357,361                             -                -                  -         96,357,361
            Decrease in disposals of subsidiaries in the
             current year                                                 -                            -         560,354           1,626,205           2,186,559
       31 December 2021                                    (11,937,538,940)             (50,277,619,205)    (477,541,422)    (1,064,855,631)    (63,757,555,198)




       - 211 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
4      Notes to the consolidated financial statements (Cont’d)

(12)   Fixed assets (Cont’d)

(a)    Fixed assets

                                                                              Power generation
                                                                  Buildings         equipment    Motor vehicles   Other equipment              Total
                                                                   Self-use           Self-use         Self-use           Self-use
       Provision for impairment
       31 December 2020 (Restated)                          (207,861,077)      (1,011,301,322)       (422,918)          (275,233)    (1,219,860,550)
       Changes in accounting policies (Note 2(28)(a))                   -                    -               -                  -                  -
       1 January 2021                                       (207,861,077)      (1,011,301,322)       (422,918)          (275,233)    (1,219,860,550)
       Increase in the current year
            Provision (vi)                                   (29,321,084)                    -                -                  -     (29,321,084)
       Decrease in the current year
            Disposal and scrap (iii)                              654,594           78,627,149               -                  -         79,281,743
       31 December 2021                                     (236,527,567)        (932,674,173)       (422,918)          (275,233)    (1,169,899,891)

       Carrying amount
       31 December 2021                                    18,287,694,916      37,960,395,842     184,471,512         412,587,363    56,845,149,633
       31 December 2020 (Restated)                         17,337,956,251      35,913,164,006     749,031,973         407,684,193    54,407,836,423




       - 212 -
        GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

        NOTES TO THE FINANCIAL STATEMENTS
        FOR THE YEAR ENDED 31 DECEMBER 2021
        (All amounts in RMB Yuan unless otherwise stated)
        [English translation for reference only]

4       Notes to the consolidated financial statements (Cont’d)

(12)    Fixed assets (Cont’d)

(a)     Fixed assets (Cont’d)

        As at 31 December 2020 and 31 December 2021, no power generation equipment or buildings were
        pledged as collateral for long-term borrowings.

(i)     In 2021, depreciation of fixed assets charged into cost of sale, general and administrative expenses,
        construction in progress, research and development expenses and selling expenses are set out as
        follows:

                                                                           2021                       2020
                                                                                                 (Restated)

        Cost of sale                                             3,912,557,499               3,765,330,261
        General and administrative expenses                         63,638,815                  60,760,761
        Research and development expenses                           36,944,538                  12,701,560
        Construction in progress                                     4,583,607                   6,584,299
        Selling expenses                                               737,724                     749,453
                                                                 4,018,462,183               3,846,126,334

(ii)    The costs of fixed assets transferred from construction in progress in the current year amounted to
        RMB 9,445,047,480 (2020: RMB 14,882,218,996) (Note 4(13)(a)(i)).

(iii)   The fixed assets disposed of during the year were mainly those of terminals of Bohe Energy, the net
        fixed assets of terminals were RMB 2,365,468,792 (Note 4(13)(a)(i)), and the others were disposals
        of used equipment.




        - 213 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
4      Notes to the consolidated financial statements (Cont’d)

(12)   Fixed assets (Cont’d)

(a)    Fixed assets (Cont’d)

(iv)   The generator units of Guangdong Yuejia Electric Co., Ltd. (“Yuejia Electric”) were shut down in
       2010 and 2016. In 2020, pursuant to Guangdong Province’s work arrangement for restructuring
       “zombie companies”, Yuejia Electric, a subsidiary of the Group decided to dispose corresponding
       assets after shutting down of generator units. In 2021, buildings of Yuejia Electric with the carrying
       amount of RMB 4,416,584 were transferred to other current assets.

(v)    In 2020, Bohe Energy’s generator units were temporarily transferred to fixed assets,
       corresponding to the estimated capacity as a result of “using large generator units and shutting
       down small generator units”. In 2021, Bohe Energy signed capacity transfer agreements with
       Guangdong Electric Power Development Co., Ltd., Shajiao A Power Plant (“Shajiao A Power
       Plant”), Yuehua Power and Yunhe Power respectively, and fixed assets arising from such capacity
       transfer were offset at the consolidated level.

(vi)   Impairment of fixed assets

       In 2021, movements of provision for impairment of fixed assets were as follows:

                                                              31 December     Increase in
                                                                      2020    the current   Decrease in the   31 December
                                                                 (Restated)         year       current year          2021

       Yuehua Power (Note 1)                                   539,689,836              -        (925,881)     538,763,955
       Lincang Energy (Note 2)                                 200,601,657              -                -     200,601,657
       Bohe Energy (Note 3)                                    208,000,000              -                -     208,000,000
       Guangdong Red Bay Power Generation Co., Ltd. (“Red
          Bay Power”)                                          48,597,529              -       (3,547,982)     45,049,547
       Guangdong Shaoguan Yuejiang Electric Power Co., Ltd.
          (“Yuejiang Power”)                                  40,954,755              -       (1,356,395)     39,598,360
       Guangdong Energy Maoming Thermal Power Station
          Co., Ltd. (“Maoming Thermal”)                       29,751,684              -                 -     29,751,684
       Guangdong Yudean Jinghai Power Co., Ltd. (“Jinghai
          Power”)                                              22,228,873             -                 -      22,228,873
       Shajiao A Power Plant (Note 4)                           21,335,571    29,321,084                 -      50,656,655
       Zhanjiang Electric                                       18,822,875             -                 -      18,822,875
       Yunhe Power (Note 5)                                     81,438,657             -      (71,050,220)      10,388,437
       Zhanjiang Zhongyue Energy Co., Ltd. (“Zhongyue
          Energy”)                                              5,208,543              -       (2,401,265)      2,807,278
       Guangdong Huizhou Natural Gas Power Co., Ltd.
          (“Huizhou Natural Gas”)                               3,230,570            -                 -        3,230,570
                                                              1,219,860,550   29,321,084      (79,281,743)    1,169,899,891




       - 214 -
        GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

        NOTES TO THE FINANCIAL STATEMENTS
        FOR THE YEAR ENDED 31 DECEMBER 2021
        (All amounts in RMB Yuan unless otherwise stated)
        [English translation for reference only]
4       Notes to the consolidated financial statements (Cont’d)

(12)    Fixed assets (Cont’d)

(a)     Fixed assets (Cont’d)

(vi)    Impairment of fixed assets (Cont’d)

        Impairment of related asset groups of certain subsidiaries that have suffered continuous operating
        loss in recent years

        In 2021 and previous years, certain subsidiaries of the Group were affected by sharp fluctuations in
        price of coal for power generation, the marketisation of the electricity industry and other factors, and
        there was continuous operating loss and indications of impairment, and the accumulated provision
        for impairment at the excess of the carrying amount and the present value of the estimated future
        cash flows of fixed assets in previous years was made. Taking into consideration risks that may
        exist in the future, such as the instability of electricity demand and price of coal for power
        generation, macro economy and other factors, the Group continuously assessed the impairment of
        the above-mentioned subsidiaries’ power generation asset groups (mainly including fixed assets) in
        2021.

Note 1 Yuehua Power shut down 5# generator unit at the end of 2019 and 6# generator unit at the end of
       November 2020. The Group tested the recoverable amount of the asset groups of 5# and 6#
       generator units that had been shut down, and made provision for impairment accordingly. At the
       end of 2019, a provision for impairment of the related asset group of 5# generator unit amounting to
       RMB 317,686,700 and a provision for impairment of the related asset group of 6# generator unit
       amounting to RMB 251,426,700 were made. As at 31 December 2021, the balance of provision for
       impairment was RMB 538,763,955.

Note 2 Due to the fierce competition in the hydroelectric power market in Yunnan Province, Lincang
       Energy, a subsidiary of the Group, suffered from continuous operating loss. In previous years, the
       Group had made a provision of RMB 200,601,657 for the impairment of fixed assets for the relevant
       asset groups of generator units of Lincang Energy. In 2021, the Group continuously assessed the
       impairment of the asset groups of generator units of Lincang Energy and found no further provision
       for impairment was required.

Note 3 In 2020, Bohe Energy obtained approval from Guangdong Provincial Development and Reform
       Committee. As the alternative capacity of some generator units could not be approved,
       management expected that the alternative capacity of these units would not be available for
       subsequent project construction or sale. Therefore, a provision of RMB 208,000,000 for impairment
       of fixed assets was made to the capitalised acquisition cost of the alternative capacity of these
       generator units. In 2021, the Group continuously assessed the impairment of the asset groups of
       generator units of Bohe Energy and found no further provision for impairment was required.

Note 4 Shajiao A Power Plant 1# to 3# generator have been shut down in previous years, generator 4# and
       5# are expected to be shut down before the end of 2023. In previous years, the Group carried out
       accelerated depreciation for 1# to 5# generator, and made provision for impairment of power
       generation equipment related to 1# to 3#, among which the depreciation amount corresponding to
       the equipment that has been scrapped has been approved. Transfer out, as at December 31, 2020,
       the balance of provision for impairment of fixed assets was RMB 21,335,571. In 2021, the Group
       conducted another impairment test on the houses and buildings corresponding to 1#, 2# and 3#
       generator of Shajiao A Power Plant and made provision for impairment of RMB 29,321,084.




        - 215 -
        GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

        NOTES TO THE FINANCIAL STATEMENTS
        FOR THE YEAR ENDED 31 DECEMBER 2021
        (All amounts in RMB Yuan unless otherwise stated)
        [English translation for reference only]
4       Notes to the consolidated financial statements (Cont’d)

(12)    Fixed assets (Cont’d)

(a)    Fixed assets (Cont’d)

(vi)    Accounting estimates on impairment of fixed assets (Cont’d)

Note 5 Yunhe Power’s 1# and 2# generator units have been shut down on 31 January 2018. The Group
       made provision for impairment on the related asset for scrap and retirement of 1# and 2# generator
       units that had been shut down. As at 31 December 2020, the balance of provision for impairment
       totalled RMB 81,438,657. In 2021, Yunhe Power partly disposed of the related assets of generator
       units that had been shut down, the accumulated provision for impairment on such disposals
       amounted to RMB 71,050,220. As at 31 December 2021 the balance of provision for impairment
       amounted to RMB 10,388,437.




        - 216 -
        GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

        NOTES TO THE FINANCIAL STATEMENTS
        FOR THE YEAR ENDED 31 DECEMBER 2021
        (All amounts in RMB Yuan unless otherwise stated)
        [English translation for reference only]
4       Notes to the consolidated financial statements (Cont’d)

(12)    Fixed assets (Cont’d)

(a)     Fixed assets (Cont’d)

(vii)   Fixed assets with pending certificates of ownership:

                                                                          Reasons for not obtaining certificates
                                                     Carrying amount                              of ownership

        Buildings                                       1,152,699,367           Awaiting government approval

        As at 31 December 2021, after consulting the Group’s legal consultant, management believed that
        there were no substantial legal obstacles in obtaining the certificates and no material adverse
        impact on normal operation of the Group would occur.

(b)     Fixed assets pending for disposal

                                                                31 December 2021            31 December 2020
                                                                                                   (Restated)

        Parts of power generation equipment                             93,602,122                  79,810,172
        Other equipment                                                  4,374,501                   4,979,580
                                                                        97,976,623                  84,789,752

(13)    Construction in progress

                                                                31 December 2021            31 December 2020
                                                                                                   (Restated)

        Construction in progress (a)                                8,631,720,339                9,250,959,940
        Construction materials                                          3,006,730                    3,660,437
                                                                    8,634,727,069                9,254,620,377




        - 217 -
          GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

          NOTES TO THE FINANCIAL STATEMENTS
          FOR THE YEAR ENDED 31 DECEMBER 2021
          (All amounts in RMB Yuan unless otherwise stated)
          [English translation for reference only]

   4      Notes to the consolidated financial statements (Cont’d)

   (13)   Construction in progress (Cont’d)

   (a)    Construction in progress

                                                                           31 December 2021                             31 December 2020 (Restated)
                                                                               Provision for        Carrying                   Provision for
                                                              Book balance      impairment           amount    Book balance     impairment      Carrying amount

          Yangjiang Shapa offshore wind power
            project                                           4,383,633,467               -    4,383,633,467   1,451,718,258               -      1,451,718,258
          Huadu thermal and power
            cogeneration project                              1,054,889,800               -    1,054,889,800    496,904,393                -       496,904,393
          Wuxuan Hequn Plant Project                            401,681,032               -      401,681,032    175,838,002                -       175,838,002
          Xupu Wind Power Plant Project                         387,948,275               -      387,948,275    104,382,440                -       104,382,440
          Hunan Tongdao Dagaoshan wind
            power plant project                                310,381,142                -     310,381,142     114,806,165                -       114,806,165
          Shajiao Ningzhou gas power project                   253,652,368                -     253,652,368      89,785,770                -        89,785,770
          Nanxiong Zhu’an Village Project                     202,119,872                -     202,119,872         943,396                -           943,396
          Zhaoqing Dinghu Natural Gas
            Thermal Power Cogeneration
            Project                                            120,337,569                -     120,337,569      28,883,921                -        28,883,921
          Zhuhai Jinwan Electric offshore wind
            power project                                       46,919,720                -      46,919,720    3,432,128,854               -      3,432,128,854
          Pingyuan maoping project                                       -                -               -      338,524,935               -        338,524,935
          Bohe Coal integration project                                  -                -               -       97,519,981               -         97,519,981
          Qujie Wailuo offshore wind power
            project (Phase II)                                            -               -                -    896,786,215                -       896,786,215
          Xinliao offshore wind power project                             -               -                -    772,822,903                -       772,822,903
          Other infrastructure construction
            projects                                           885,091,077    (272,760,362)     612,330,715     557,899,512    (283,142,471)       274,757,041
          Other technology improvement
            projects                                           866,456,689      (8,630,310)     857,826,379     983,787,976      (8,630,310)       975,157,666



- 218 -
          GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

          NOTES TO THE FINANCIAL STATEMENTS
          FOR THE YEAR ENDED 31 DECEMBER 2021
          (All amounts in RMB Yuan unless otherwise stated)
          [English translation for reference only]

                                                              8,913,111,011   (281,390,672)   8,631,720,339   9,542,732,721 -   (291,772,781) -   9,250,959,940




- 219 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(13)   Construction in progress (Cont’d)

(a)    Construction in progress (Cont’d)

(i)    Movements of major construction in progress
                                                                                                                    Transfer to fixed
                                                                 Changes in                                            assets in the                                     Proportion of                 Accumulated                Including: Capitalisation
                                               31 December       accounting                     Increase in the   current year (Note           Other     31 December investment to the     Project        capitalised Capitalised borrowing         rate of    Source of
       Project name                Budget    2020 (Restated)        policies   1 January 2021      current year          4(12)(a)(ii))   movements (i)          2021       budget (%)    progress    borrowing costs     costs for the year borrowing cost         fund
       Yangjiang Shapa                                                                                                                                                                                                                                        Borrowings
         offshore wind                                                                                                                                                                                                                                          and own
         power project       5,963,270,000    1,451,718,258    (149,876,657)   1,301,841,601     3,116,100,930                       -    (34,309,064)   4,383,633,467         86.56%     98.20%        156,062,173           114,826,313           3.79%          funds
       Huadu thermal
         and power                                                                                                                                                                                                                                             Borrowing
         cogeneration                                                                                                                                                                                                                                           and own
         project             3,593,160,000      496,904,393                -     496,904,393      557,985,407                        -               -   1,054,889,800         29.85%     29.85%         38,456,114             25,245,103          3.83%          funds
                                                                                                                                                                                                                                                              Borrowings
       Wuxuan Hequn                                                                                                                                                                                                                                             and own
         Plant Project        482,580,000       175,838,002                -     175,838,002      238,028,412                        -    (12,185,382)    401,681,032          83.24%     99.50%         12,018,832              7,916,442          4.13%          funds
                                                                                                                                                                                                                                                              Borrowings
       Xupu Wind Power                                                                                                                                                                                                                                          and own
         Plant Project        464,185,841       104,382,440                -     104,382,440      298,617,430                        -    (15,051,595)    387,948,275          85.47%     78.00%         12,289,713              9,631,511          4.27%          funds
       Hunan Tongdao
         Dagaoshan                                                                                                                                                                                                                                            Borrowings
         wind power                                                                                                                                                                                                                                             and own
         plant project        531,740,000       114,806,165     (42,240,044)      72,566,121      248,056,264                        -    (10,241,243)    310,381,142          83.96%     95.00%          9,716,266              9,534,264          4.29%          funds
       Shajiao Ningzhou                                                                                                                                                                                                                                       Borrowings
         gas power                                                                                                                                                                                                                                              and own
         project             5,927,600,000       89,785,770                -      89,785,770      163,866,598                        -               -    253,652,368          20.84%     22.88%          7,651,592              9,620,967          2.95%          funds
                                                                                                                                                                                                                                                              Borrowings
       Nanxiong Zhu’an                                                                                                                                                                                                                                         and own
          Village Project     451,810,000           943,396                -         943,396      205,353,888                        -     (4,177,412)    202,119,872          67.57%     85.00%          2,719,293              3,870,628          4.05%          funds
       Zhaoqing Dinghu
          Natural Gas
          Thermal
          Power                                                                                                                                                                                                                                               Borrowings
          Cogeneration                                                                                                                                                                                                                                          and own
          Project            2,998,180,000       28,883,921                -      28,883,921       91,453,648                        -               -    120,337,569           4.54%      4.69%          4,710,321              4,586,627          3.23%          funds
       Zhuhai Jinwan
          Electric                                                                                                                                                                                                                                            Borrowings
          offshore wind                                                                                                                                                                                                                                         and own
          power project      5,643,170,000    3,432,128,854    (285,812,172)   3,146,316,682      953,358,203       (3,883,470,204)      (169,284,961)     46,919,720          72.47%     72.47%        120,150,149             50,676,995          4.16%          funds
       Pingyuan                                                                                                                                                                                                                                               Borrowings
          maoping                                                                                                                                                                                                                                               and own
          project             450,818,900       338,524,935                -     338,524,935       36,263,186         (361,379,200)       (13,408,921)               -         93.94%     93.94%          5,799,060                       -               -        funds
       Bohe Coal                                                                                                                                                                                                                                              Borrowings
          integration                                                                                                                                                                                                                                           and own
          project           11,037,075,900       97,519,981                -      97,519,981       93,063,743                        -   (190,583,724)               -         82.25%     99.80%        467,317,923                594,543          4.26%          funds
       Qujie Wailuo
          offshore wind                                                                                                                                                                                                                                       Borrowings
          power project                                                                                                                                                                                                                                         and own
          (Phase II)         3,789,120,000      896,786,215     (15,707,965)     881,078,250     1,689,200,452      (2,559,260,596)       (11,018,106)               -         81.48%     96.54%         62,826,480             45,889,751          4.14%          funds
       Xinliao offshore                                                                                                                                                                                                                                       Borrowings
          wind power                                                                                                                                                                                                                                            and own
          project            3,698,880,000      772,822,903    (419,647,262)     353,175,641     1,345,587,745      (1,686,163,227)       (12,600,159)               -         93.65%     95.85%         62,349,895             45,687,739          3.88%          funds
       Other
          infrastructure                                                                                                                                                                                                                                      Borrowings
          construction                                                                                                                                                                                                                                          and own
          projects                    N/A       274,757,041                -     274,757,041      448,584,094         (111,010,420)                  -    612,330,715                                    20,104,896              7,079,097          3.84%          funds
       Other technology                                                                                                                                                                                                                                       Borrowings
          improvement                                                                                                                                                                                                                                           and own
          projects                    N/A       975,157,666                -     975,157,666       743,668,529      (843,763,833)         (17,235,983)     857,826,379                                    1,335,162                     -                 -        funds
                                              9,250,959,940    (913,284,100)   8,337,675,840    10,229,188,529    (9,445,047,480)        (490,096,550)   8,631,720,339                                  983,507,869           335,159,980


         - 220 -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]




 - 221 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
4      Notes to the consolidated financial statements (Cont’d)

(13)   Construction in progress (Cont’d)

(a)    Construction in progress (Cont’d)

(i)    Movements of major construction in progress (Cont’d)

       Other movements of construction in progress for the year mainly include net income from trial operation of RMB 282,276,843, terminal projects disposed of
       by Bohe Energy with a carrying amount of RMB 190,583,724, and construction in progress of RMB 17,235,983 that was completed and transferred to
       intangible assets. The increase in construction in progress in the current year includes an increase of RMB 16,306,469 in business combinations involving
       entities not under common control.

       In 2021, in order to optimise the Company's asset structure and promote high-quality development, Bohe Energy, a subsidiary of the Group, disposed of
       the terminal assets to Industry Fuel at a transaction price of RMB 2,800,327,000 (excluding tax). Among them, net value of disposed fixed assets amounted
       to RMB 2,365,468,792, net intangible assets amounted to RMB 35,500,795 and net construction in progress mounted to RMB 190,583,724. As at 31
       December 2021, book balance of receivables from disposals of terminal assets of Bohe Energy amounted to RMB 1,602,258,185, and RMB 1,600,910,823
       was recovered in March 2022. The remaining unrecovered amount is the property insurance taken out on behalf of the policyholder, which is expected to
       be recovered in 2022.

(ii)   As at 31 December 2020, construction in progress included part of power generation equipment arising from finance leases. As at 1 January 2021, in
       applying the new lease standard, power generation equipment with carrying amount of RMB 913,284,100 was transferred from construction in progress to
       right-of-use assets.




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        GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

        NOTES TO THE FINANCIAL STATEMENTS
        FOR THE YEAR ENDED 31 DECEMBER 2021
        (All amounts in RMB Yuan unless otherwise stated)
        [English translation for reference only]
4       Notes to the consolidated financial statements (Cont’d)

(13)    Construction in progress (Cont’d)

(a)     Construction in progress (Cont’d)

(iii)   Provision for impairment of construction in progress

                                                            31 December
                                                                    2020    Decrease in the   31 December
                                Item                           (Restated)      current year          2021                Reason for provision

         Humen Electric 2*1000MW project (Note 1)           (137,373,040)                 -   (137,373,040)         Stoppage of construction
         Impairment of upfront expenses for 5# and 6#                                                         Impairment of upfront expenses
           generator units of Jinghai                        (55,389,093)                 -    (55,389,093)       for construction in progress
         Impairment of upfront expenses for                                                                   Impairment of upfront expenses
           Guangdong Wind Power project                      (50,166,211)        7,027,980     (43,138,231)       for construction in progress
         Impairment of upfront expenses for 5# and 6#                                                         Impairment of upfront expenses
           generator units of Red Bay                        (26,446,447)                 -    (26,446,447)       for construction in progress
                                                                                                              Impairment of upfront expenses
         Others                                              (22,397,990)        3,354,129     (19,043,861)       for construction in progress
                                                            (291,772,781)       10,382,109    (281,390,672)




         - 223 -
           GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

           NOTES TO THE FINANCIAL STATEMENTS
           FOR THE YEAR ENDED 31 DECEMBER 2021
           (All amounts in RMB Yuan unless otherwise stated)
           [English translation for reference only]

4          Notes to the consolidated financial statements (Cont’d)

 (14)      Right-of-use assets

                                                                    Machinery and             Motor
                                                   Buildings           equipment            vehicles                 Total

           Cost
           31 December 2020                                —                  —                —                     —
           Changes in accounting
             policies                            19,797,657         4,805,366,820           604,275          4,825,768,752
           1 January 2021                        19,797,657         4,805,366,820           604,275          4,825,768,752
           Increase in the current year
              New lease contracts                39,928,531         1,995,183,162         7,830,270          2,042,941,963
           Decrease in the current
             year

             Transfer to fixed assets                     -        (1,000,000,000)                -         (1,000,000,000)
           31 December 2021                      59,726,188          5,800,549,982        8,434,545           5,868,710,715

           Accumulated depreciation
           31 December 2020                                —                  —                —                     —
           Changes in accounting
            policies                                           -   (1,093,045,670)                 -        (1,093,045,670)

           1 January 2021                                      -   (1,093,045,670)                 -        (1,093,045,670)
           Increase in the current year
              Provision (a)                    (17,358,410)         (225,035,196)        (2,153,166)         (244,546,772)
           Decrease in the current
             year
              Transfer to fixed assets                    -           725,006,706                  -           725,006,706
           31 December 2021                    (17,358,410)         (593,074,160)        (2,153,166)         (612,585,736)

           Carrying amount
           31 December 2021                      42,367,778         5,207,475,822         6,281,379          5,256,124,979
           31 December 2020                              —                    —                —                     —

(a)        In 2021, depreciation charged to right-of-use assets was RMB 244,546,772, among which
           depreciation expenses charged to cost of sale, general and administrative expenses, selling
           expenses and construction in progress were RMB 165,463,009, RMB 11,428,272, RMB 2,747,235
           and RMB 64,908,256 respectively.

(b)        Right-of-use assets arising from significant finance lease

                                                       Increase in the Depreciation in Transfer to fixed      31 December
                                    1 January 2021        current year the current year          assets              2021

           Qujie Wind Power       1,111,138,796 1,411,660,210             (75,533,519)                  - 2,447,265,487
           Bohe Energy              989,315,557             -             (47,721,709)                  -   941,593,848
           Yuejiang Power           757,452,862             -             (48,117,354)                  -   709,335,508
           Yangjiang Wind Power     149,876,657   330,164,858             (18,148,605)                  -   461,892,910
           Zhuhai Wind Power        285,812,173   168,470,916             (11,241,440)                  -   443,041,649
           Guangdong Xinhui
              Power Generation
              Co., Ltd. (“Xinhui
              Power”)               95,991,769             -             (13,899,799)                  -       82,091,970
           Tongdao Company           42,240,044    25,344,027              (4,053,231)                  -       63,530,840
           Nanxiong New Energy                -    58,886,462              (1,899,510)                  -       56,986,952
           Jinghai Power            278,238,869             -              (3,245,575)      (274,993,294)                -




      - 224 -
     GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

     NOTES TO THE FINANCIAL STATEMENTS
     FOR THE YEAR ENDED 31 DECEMBER 2021
     (All amounts in RMB Yuan unless otherwise stated)
     [English translation for reference only]

                               3,710,066,727     1,994,526,473   (223,860,742)   (274,993,294) 5,205,739,164




- 225 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4                                      Notes to the consolidated financial statements (Cont’d)

(15)   Intangible assets
                                                   Use rights of the
                                            associated projects for                                                                           Non-patent
                                            electricity transmission                                                        Favorable     technology and
                                                and transformation     Land use rights    Sea use rights       Software      contract             others             Total

       Cost
       31 December 2020 (Restated)                    260,331,315        2,894,539,357       129,906,544     182,597,453              -       38,656,100     3,506,030,769
       Increase in the current year
            Purchase                                               -       174,876,591                  -     15,116,764              -          612,549       190,605,904
          Transfer from construction in
            progress (Note 4(13)(a)(i))                            -                  -                 -     17,001,433              -          234,550        17,235,983
          Business combinations involving
            enterprises not under common
            control                                                -        65,084,734                  -               -   52,211,380                  -      117,296,114
       Decrease in the current year
            Disposal (d)                                        -          (68,076,209)      (40,649,765)      (663,051)             -                 -     (109,389,025)
       31 December 2021                               260,331,315        3,066,424,473         89,256,779    214,052,599    52,211,380        39,503,199     3,721,779,745

       Accumulated amortisation
       31 December 2020 (Restated)                   (260,331,315)        (493,937,866)      (28,180,513)   (122,805,324)             -      (27,967,766)    (933,222,784)
       Increase in the current year
            Provision (a)                                          -       (61,319,563)       (2,132,440)    (15,575,382)   (3,085,641)       (1,463,852)     (83,576,878)
       Decrease in the current year
            Disposal (d)                                         -            4,783,456         5,148,970         316,210                               -        10,248,636
       31 December 2021                              (260,331,315)        (550,473,973)      (25,163,983)   (138,064,496)   (3,085,641)      (29,431,618)   (1,006,551,026)

       Provision for impairment
       31 December 2020 (Restated)                                 -       (56,502,373)                 -               -             -                 -     (56,502,373)
       Decrease in the current year                                -                  -                 -               -             -                 -                -
       31 December 2021                                            -       (56,502,373)                 -               -             -                 -     (56,502,373)

       Carrying amount
       31 December 2021                                            -     2,459,448,127        64,092,796      75,988,103    49,125,739        10,071,581     2,658,726,346
       31 December 2020 (Restated)                                 -     2,344,099,118       101,726,031      59,792,129             -        10,688,334     2,516,305,612




       - 226 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(15)   Intangible assets (Cont’d)

(a)    In 2021, amortisation charged to intangible assets was RMB 83,576,878, with cost of sale of RMB
       4,225,762, general and administrative expenses of RMB 71,354,033, construction in progress of
       RMB 7,581,319 and research and development expenses of RMB 415,764 respectively (In 2020,
       amortisation charged to intangible assets was RMB 74,722,057, with cost of sale of RMB 8,451,
       general and administrative expenses of RMB 68,960,533 and construction in progress of RMB
       4,750,588 and research and development expenses of RMB 1,002,485 respectively).

(b)    As at 31 December 2021, the Group had obtained land use right certificates for all of its lands,
       except for lands with carrying amount of RMB 40,485,578 (31 December 2020: RMB 50,904,322)
       that were under approval procedures for land use. After consulting the Group’s legal consultant,
       management believed that there were no substantial legal obstacles in obtaining the certificates
       and no material adverse impact on the normal operation of the Group would incur.

(c)    In 2021, the Group’s expenditures on research and development amounting to RMB 584,714,979
       (2020: RMB 324,923,064) were all recognised as research and development expenses in the
       current period (Note 4(46)). As at 31 December 2021, there were no intangible assets arising from
       internal research and development of the Group.

(d)    In 2021, the disposals of intangible assets of the Group mainly represented the disposal of the sea
       use rights of Bohe Energy, a subsidiary of the Group (Note 4(13)(a)(i)), with a net asset value of
       RMB 35,500,795, and the disposals of land use rights of the Group's subsidiaries, Lincang Energy,
       Yunhe Power and Xinhui Power, with the net asset value of RMB 63,292,753.




       - 227 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
4      Notes to the consolidated financial statements (Cont’d)

(16)   Goodwill

                                                               31 December 2021                31 December 2020
                                                                                                      (Restated)

       Goodwill -
           Tumxuk Thermal Power Co., Ltd.
           (“Tumxuk”) (Note 5(2)(b))                               119,488,672                                -
           Guangdong Yueneng Datang New
           Energy Co., Ltd. (“Datang New
           Energy”) (Note 5(2)(b))                                   11,885,484                              -
           Nanhua New Energy (Note 5(2)(b))                            6,158,995                              -
           Others                                                     27,486,780                     27,486,780
                                                                       165,019,931                     27,486,780
       Less: Provision for impairment -
            Others                                                    (25,036,894)                   (25,036,894)

                                                                       139,983,037                      2,449,886

(17)   Long-term prepaid expenses

                                           31 December                       Amortisation in
                                                   2020    Increase in the      the current         31 December
                                              (Restated)      current year             year                2021

       Improvements to right-of-use
         assets                              8,539,500         2,281,783       (2,856,162)            7,965,121
       Others                               19,805,469         5,538,905       (2,974,194)           22,370,180
                                            28,344,969         7,820,688       (5,830,356)           30,335,301




       - 228 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
4      Notes to the consolidated financial statements (Cont’d)

(18)   Deferred tax assets and deferred tax liabilities

(a)    Deferred tax assets before offsetting
                                                    31 December 2021                      31 December 2020 (Restated)
                                                 Deductible                                  Deductible
                                                 temporary                                   temporary
                                           differences and                             differences and
                                             deductible tax        Deferred tax          deductible tax
                                                     losses             assets                  losses   Deferred tax assets

       Deductible losses                    3,189,847,440           758,900,259          890,827,344             220,317,509
       Provision for asset
          impairment                          444,961,087           109,842,258          557,781,064             139,220,906
       Net income from trial
          operation included in
          construction in progress            504,079,323           113,559,371          234,870,149              54,608,985
       Unrealised profits from
         intra-group transactions             685,896,928           171,474,232          148,814,504              37,203,626
       Employee benefits payable              305,163,061            73,089,625          183,785,307              45,946,326
       Government grants                       95,459,260            23,306,593          112,677,436              28,169,359
       Depreciation of fixed assets            74,881,083            18,720,271           74,700,511              18,675,127
       Amortisation of intangible
         assets                                 4,028,407              1,007,101            4,526,232             1,131,558
                                            5,304,316,589          1,269,899,710        2,207,982,547           545,273,396

       Including:
       Expected to be recovered
          within 1 year (inclusive)                                 115,084,638                                  100,137,637
       Expected to be recovered
          after 1 year                                             1,154,815,072                                 445,135,759
                                                                   1,269,899,710                                 545,273,396

(b)    Deferred tax liabilities before offsetting
                                                    31 December 2021                     31 December 2020 (Restated)
                                        Taxable temporary          Deferred tax     Taxable temporary         Deferred tax
                                               differences            liabilities          differences            liabilities

       Changes in fair value of
          investments in other equity
          instruments included in
          other comprehensive
          income                          (2,291,866,066)          (572,966,517)      (2,538,725,399)          (634,681,350)
       Net expenses in trial
          operation included in
          construction in progress           (89,727,430)           (22,431,857)         (96,051,849)           (24,012,962)
       Revaluation reserve of
          business combinations
          involving enterprises not
          under common control              (272,521,240)           (68,130,309)         (56,290,560)           (14,072,640)
       Amortisation of land use
          rights                             (15,685,439)            (3,921,360)         (16,068,632)            (4,017,158)
       Interest receivable                   (10,071,856)            (2,517,964)          (6,620,900)            (1,655,226)
       Depreciation of fixed assets           (2,388,981)              (597,247)          (2,996,100)              (749,025)
                                          (2,682,261,012)          (670,565,254)      (2,716,753,440)          (679,188,361)

       Including:
       Expected to be recovered
          within 1 year (inclusive)                                 (10,368,799)                                 (9,629,576)
       Expected to be recovered
          after 1 year                                             (660,196,455)                               (669,558,785)
                                                                   (670,565,254)                               (679,188,361)




       - 229 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
4      Notes to the consolidated financial statements (Cont’d)

(18)   Deferred tax assets and deferred tax liabilities (Cont’d)

(c)    Deductible temporary differences and deductible losses that are not recognised as deferred tax
       assets are analysed as follows:

                                                                31 December 2021            31 December 2020
                                                                                                   (Restated)

       Deductible temporary differences                            1,839,401,194               1,726,741,514
       Deductible losses                                           5,808,689,992               2,100,666,365
                                                                   7,648,091,186               3,827,407,879

(d)    Deductible tax losses that are not recognised as deferred tax assets will be expired in following
       years:

                                                                31 December 2021            31 December 2020
                                                                                                   (Restated)

       2021                                                                     -                134,978,486
       2022                                                           679,470,193                628,529,972
       2023                                                           810,630,290                670,390,708
       2024                                                           173,024,661                153,029,742
       2025                                                          598,674,880                 513,737,457
       2026                                                        3,546,889,968                           -
                                                                   5,808,689,992               2,100,666,365

       Management believed that as at the maturity date for the above deductible losses, the relevant
       subject of tax payment has no sufficient taxable profits to deduct the above deductible losses;
       therefore, no related deferred tax asset was recognised.

(e)    The net balances of deferred tax assets and deferred tax liabilities after offsetting are as follows:

                                             31 December 2021                31 December 2020 (Restated)
                                            Offsetting Balance after            Offsetting   Balance after
                                              amount       offsetting             amount         offsetting

       Deferred tax assets              (34,810,493)       1,235,089,217     (40,615,690)         504,657,706
       Deferred tax liabilities           34,810,493       (635,754,761)       40,615,690       (638,572,671)




       - 230 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
4      Notes to the consolidated financial statements (Cont’d)

(19)   Other non-current assets

                                                           31 December 2021             31 December 2020
                                                                                               (Restated)

       Input VAT to be deducted                                2,207,784,437                  886,324,321
       Construction and equipment expenses prepaid             2,098,565,376                1,835,340,954
       Unrealised losses on sales and leaseback (a)              196,168,230                  209,580,144
       Prepayment for land use rights                            166,211,424                  133,755,587
       Deposits prepaid for equity acquisition (b)                80,000,000                   80,000,000
       Prepayments for purchase of buildings (c)                  58,318,764                            -
       Prepayment for equity acquisition                                   -                  113,381,000
       Others                                                      3,203,403                    2,054,516
                                                               4,810,251,634                3,260,436,522

(a)    Unrealised losses on sales and leaseback are the difference between the selling price of the
       power generation equipment and its carrying amount, and was depreciated based on the
       depreciation progress of the leaseback power generation equipment. In 2021, the unrealised
       losses on sales and leaseback, which were amortised in depreciation expenses in cost of sale,
       amounted to RMB 13,411,914 (2020: RMB: 13,577,182).

(b)    In July 2020, the Group’s subsidiary Guangdong Wind Power and Beijing Guangdun New Energy
       Technology Co., Ltd. (“Guangdun New Energy”) signed the Equity Acquisition Framework
       Agreement of Dacheng County Dun‘An New Energy Co., Ltd. The agreement stipulated that if the
       Ziya River wind power plant project of Dacheng County Dun‘An New Energy Co., Ltd. (“Dun’An
       New Energy”) (a wholly-owned subsidiary of Guangdun New Energy) was put into operation
       before 31 December 2022, Guangdong Wind Power acquired 100% equity of Dun’An New Energy
       from Guangdun New Energy. In December 2020, Guangdong Wind Power paid the equity
       acquisition deposit of RMB 80,000,000 in accordance with the agreement. Due to the uncertainty
       of pre-conditions regarding the acquisition of underlying equity and the fact that the deposit is
       recoverable after the actual closing date of the equity acquisition and does not constitute a part of
       the acquisition, the deposit is included in other non-current assets.

(c)    In July 2021, the Group’s subsidiary Guangdong Yudean Yongan Natural Gas Thermal Power
       Co., Ltd. (“Yongan Natural Gas”) signed a contract with Zhaoqing Jingyue Technology
       Development Co., Ltd to purchase or sell commercial housing. As at 31 December 2021, Yongan
       Natural Gas prepaid a total of RMB 58,318,764 for 67 units of commercial housing. Due to
       outstanding final payment, the ownership of the commercial housing has not yet been transferred
       to Yongan Natural Gas, which were included in other non-current assets




       - 231 -
                  GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

                  NOTES TO THE FINANCIAL STATEMENTS
                  FOR THE YEAR ENDED 31 DECEMBER 2021
                  (All amounts in RMB Yuan unless otherwise stated)
                  [English translation for reference only]

          4       Notes to the consolidated financial statements (Cont’d)

          (20)    Provision for asset impairment and losses

                                                       31 December      Increase in the   Reversal in the   Write-off/Charge-off in
                                                     2020 (Restated)       current year     current year          the current year        Others       31 December 2021

           Provision for bad debts of accounts
             receivables                                    (292,314)        (263,506)          292,314                           -                -           (263,506)
           Including: Provision for bad debts on a
                         collective basis                   (292,314)        (263,506)          292,314                           -                -           (263,506)
           Provision for bad debts of other
             receivables                               (212,396,328)      (22,488,667)          692,002               196,445,016                  -        (37,747,977)
              Sub-total                                (212,688,642)      (22,752,173)          984,316               196,445,016                  -        (38,011,483)

           Provision for impairment of advances to
             suppliers                                      (803,017)                 -                 -                 688,017                  -           (115,000)
           Provision for decline in the value of
              inventories                               (55,286,132)                  -                 -              21,241,524                  -        (34,044,608)
           Provision for impairment of contract
              assets                                         (12,512)          (9,377)                  -                         -                -            (21,889)
           Provision for impairment of long-term
              equity investments                        (96,327,854)                  -                 -                         -   (20,819,280)         (117,147,134)

           Provision for impairment of fixed assets (1,219,860,550)       (29,321,084)                  -              79,281,743                  -     (1,169,899,891)
           Provision for impairment of construction
              in progress                             (291,772,781)                   -                 -              10,382,109                  -       (281,390,672)
           Provision for impairment of intangible
              assets                                   (56,502,373)                  -                  -                       -                -          (56,502,373)
           Provision for impairment of goodwill        (25,036,894)                  -                  -                       -                -          (25,036,894)
               Sub-total                            (1,745,602,113)       (29,330,461)                  -             111,593,393     (20,819,280)       (1,684,158,461)

                                                     (1,958,290,755)      (52,082,634)          984,316               308,038,409     (20,819,280)       (1,722,169,944)




- 232 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(21)   Short-term borrowings

                                                           31 December 2021        31 December 2020
                                                                                          (Restated)

       Principal
            Credit loan                                      12,052,146,729             7,908,670,202

           Guaranteed loan                                      297,000,000                         -
       Sub-total                                             12,349,146,729             7,908,670,202

       Interest
            Credit loan                                          10,801,804                 7,770,686

            Guaranteed loan                                         347,896                         -
                                                             12,360,296,429             7,916,440,888

(a)    As at 31 December 2021, the annual interest rates of the short-term borrowings ranged from
       2.77% to 3.85% (31 December 2020: 2.85% to 4.35%).

(b)    As at 31 December 2021, the principal of short-term credit loan provided by related party Energy
       Group Finance Company amounted to RMB 4,977,136,729 (31 December 2020: RMB
       4,683,000,000) (Note 8(6)). Interest payable of short-term borrowings to Energy Group Finance
       Company amounted to RMB 3,142,408 (31 December 2020: RMB 5,026,812).

(c)    As at 31 December 2021, bank borrowings of RMB 297,000,000 (31 December 2020: Nil) were
       guaranteed by Xinjiang Jintai Electric Power Co., Ltd., a minority shareholder of the subsidiary
       Tumxuk.

(22)   Notes payables

                                                             31 December 2021      31 December 2020
                                                                                          (Restated)

       Bank acceptance notes                                     1,728,780,000          1,132,292,546
       Trade acceptance notes                                      180,000,000            120,000,000
                                                                 1,908,780,000          1,252,292,546




       - 233 -
           GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

           NOTES TO THE FINANCIAL STATEMENTS
           FOR THE YEAR ENDED 31 DECEMBER 2021
           (All amounts in RMB Yuan unless otherwise stated)
           [English translation for reference only]
4          Notes to the consolidated financial statements (Cont’d)

(23)       Accounts payables

                                                               31 December 2021       31 December 2020
                                                                                             (Restated)

           Fuel payable                                           4,847,384,749            2,308,693,597
           Contracted operation expenses payable                  1,101,296,490              472,060,383
           Materials and spare parts payable                        501,756,882              423,527,246
           Repair expenses payable                                   99,748,099               59,172,241
           Management fees payable for frequency
             modulation and energy storage                               319,986              11,686,819
           Settlement payable for power transactions                           -              41,580,819
           Others                                                     76,060,858              83,663,703
                                                                   6,626,567,064           3,400,384,808

(a)        As at 31 December 2021, accounts payables with ageing over one year amounted RMB 51,399,876
           (31 December 2020: RMB 43,388,226), mainly including unsettled fuel payable and materials
           payable.

    (24)    Contract liabilities

                                                               31 December 2021       31 December 2020
                                                                                             (Restated)

            Advances for services                                     5,146,636                7,812,895
            Advances from others                                        718,175                  611,504
                                                                      5,864,811                8,424,399

           As disclosed in Note 5(2), due to business combinations involving enterprises not under common
           control in the current year, the amount of contract liabilities increased by RMB 829,227.




           - 234 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
4      Notes to the consolidated financial statements (Cont’d)

(25)   Employee benefits payable

                                                                  31 December 2021             31 December 2020
                                                                                                      (Restated)

       Short-term employee benefits payable (a)                          348,069,102                 307,441,374
       Defined contribution plans payable (b)                              3,092,268                   3,087,318
       Early retirement benefits payable (c)                              62,450,865                  40,365,508
       Defined benefit plans payable (c)                                   8,400,995                   9,302,574
                                                                         422,013,230                 360,196,774

(a)    Short-term employee benefits

                                        31 December
                                                2020           Increase in the   Decrease in the    31 December
                                           (Restated)             current year      current year           2021

       Wages and salaries,
         bonus, allowances and
         subsidies                          1,298,726          1,671,548,869     (1,661,703,785)      11,143,810
       Staff welfare                        4,914,137            168,058,490       (167,936,983)       5,035,644
       Social security
         contributions                   160,202,319             143,910,740      (119,706,336)      184,406,723
       Including: Medical
                    insurance            160,202,319             134,610,710      (110,406,426)      184,406,603
                  Work injury
                    insurance                          -           1,941,286         (1,941,166)            120
                  Maternity
                    insurance                          -           7,358,744        (7,358,744)                -
       Housing funds                                   -         170,202,395      (170,197,595)            4,800
       Labour union funds and
          employee education
          funds                          132,237,912              65,375,465       (57,216,730)      140,396,647
       Other short-term employee
         benefits                           8,788,280             96,899,782       (98,606,584)        7,081,478

                                         307,441,374           2,315,995,741     (2,275,368,013)     348,069,102

(b)    Defined contribution plans

                                         31 December
                                                 2020          Increase in the    Decrease in the   31 December
                                            (Restated)            current year       current year          2021

       Basic pensions                                      -     196,652,187       (196,647,387)          4,800
       Unemployment insurance                              -       4,804,446         (4,804,296)            150
       Enterprise annuity
        contribution                         3,087,318           123,889,703       (123,889,703)      3,087,318
                                             3,087,318           325,346,336       (325,341,386)      3,092,268

(c)    The remuneration for internal retirement and the expenses for retirees that are expected to be paid
       within one year from the date of the balance sheet are listed as the internal retirement benefits
       payable and the defined benefit plan payable, respectively. Please refer to Note 4(35)(a) and (b) for
       details.



       - 235 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
4      Notes to the consolidated financial statements (Cont’d)

(26)   Taxes payable

                                                           31 December 2021             31 December 2020
                                                                                               (Restated)

       Unpaid VAT                                               145,874,436                   358,082,465
       Enterprise income tax payable                             91,420,743                   180,605,179
       Land VAT payable                                          80,216,700                             -
       Property tax payable                                      77,307,640                        78,426
       Individual income tax payable                             29,777,458                    24,712,909
       Land use tax payable                                      21,588,871                             -
       City maintenance and construction tax
          payable                                                16,340,357                      4,788,360
       Educational surcharge payable                             12,684,138                      3,952,049
       Pollution discharge fee payable and
          environmental protection tax payable                    8,946,714                     2,579,765
       Water resource fee payable                                 3,837,196                     4,690,504
       Others                                                    14,308,822                     1,410,349
                                                                502,303,075                   580,900,006

(27)   Other payables

                                                           31 December 2021             31 December 2020
                                                                                               (Restated)

       Construction and equipment expenses
         payable                                               7,210,562,333                 6,370,252,994
       Payables for equity acquisition (b)                     2,501,436,910                             -
       Project warranty payable                                  228,942,252                   286,507,782
       Generator unit capacity payable (c)                       219,849,057                   830,188,680
       Carbon emission allowances                                103,819,285                    38,901,591
       State Oceanic Administration penalty
         payable                                                 11,531,700                     11,531,700
       Dividends payable to non-tradable owners of
         the Company (d)                                           9,771,322                     9,771,322
       Penalty payable                                             8,604,039                     7,855,013
       Others                                                    275,246,880                   259,563,787
                                                              10,569,763,778                 7,814,572,869

(a)    As at 31 December 2021, other payables of RMB 2,564,331,490 (31 December 2020: RMB
       2,645,582,922) aged over one year mainly represented (i) construction and equipment expenses
       payable and 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.




       - 236 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
4      Notes to the consolidated financial statements (Cont’d)

(27)   Other payables (Cont’d)

(b)    In 2021, Company acquired 51% equity of Sha C Company, 90% equity of Yunhe Power and 51%
       equity of Yuehua Power in cash, with the transaction price of RMB 3,743,601,641. As at 31
       December 2021, there were payables for equity acquisition of RMB 2,501,436,910 that had not
       been paid yet. Under the equity acquisition agreement, the remaining payment for equity acquisition
       will be paid in 2022.

(c)    As at 31 December 2021, 1# and 2# generator units of Bohe Energy had been completed and were
       temporarily transferred to fixed assets. Generator unit capacity payable by Bohe Energy was
       estimated to be RMB 219,849,057 based on the capacity index of thermal power generator units.

(d)    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.




       - 237 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
4      Notes to the consolidated financial statements (Cont’d)

(28)   Current portion of non-current liabilities

                                                              31 December 2021    31 December 2020
                                                                                         (Restated)

       Principal
          Current portion of long-term borrowings (Note
            4(30))                                                2,647,033,789       1,482,779,404
          Current portion of long-term payables (Note
            4(33))                                                            -        262,936,379
          Current portion of debentures payable (Note
            4(31))                                                            -       1,498,700,741
          Current portion of lease liabilities (Note 4(32))         870,864,067                  —
       Sub-total                                                  3,517,897,856       3,244,416,524

       Interest
          Current portion of long-term borrowings                   58,195,726           31,472,412
          Current portion of long-term payables                              -              566,666
          Current portion of debentures payable                    121,526,171           45,666,333
       Sub-total                                                   179,721,897           77,705,411

                                                                  3,697,619,753       3,322,121,935




       - 238 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(29)   Other current liabilities

                                                                                                                                     31 December 2021                      31 December 2020
                                                                                                                                                                                  (Restated)

       Short-term debentures payable                                                                                                       1,007,871,233                         3,216,900,546
       Output VAT to be written off                                                                                                          650,577,773                               623,030
                                                                                                                                           1,658,449,006                         3,217,523,576

       Related information of short-term debentures payable is as follows:
                                                                                                   31 December                                         Amortisation of
                                                             Issuance   Maturity       Issuance            2020     Issued in the   Interest at face     discounts or Repayments for 31 December
                                              Par value          date    period          amount       (Restated)     current year             value          premium        the year        2021

       Second batch of super short-term
          financing notes issued by
          Guangdong Electric Power                                          172
          Development Co., Ltd., 2020     1,600,000,000    10/08/2020      days 1,600,000,000      1,611,440,000                -        2,131,507                 - (1,613,571,507)             -
       Third batch of super short-term
          financing notes issued by
          Guangdong Electric Power                                          178
          Development Co., Ltd., 2020     1,600,000,000    10/11/2020      days 1,600,000,000      1,605,460,546                -      13,656,166                  - (1,619,116,712)             -
       First batch of super short-term
          financing notes issued by
          Guangdong Electric Power                                          178
          Development Co., Ltd., 2021      800,000,000     25/01/2021      days     800,000,000                -    800,000,000        10,338,630                  -   (810,338,630)             -
       Second batch of super short-term
          financing notes issued by
          Guangdong Electric Power                                          178
          Development Co., Ltd., 2021     1,000,000,000    23/08/2021      days 1,000,000,000                  -   1,000,000,000         7,871,233                 -               - 1,007,871,233

                                          5,000,000,000                            5,000,000,000   3,216,900,546   1,800,000,000       33,997,536                  - (4,043,026,849) 1,007,871,233

       In 2021, the interest rate of super-short term financing notes issued by the Company was from 1.80% to 2.21% (2020: 1.80% to 2.45%).




       - 239 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(30)   Long-term borrowings

                                                           31 December 2021    31 December 2020
                                                                                      (Restated)

       Principal
         Pledged loan (a)                                     6,002,119,898        4,193,207,913
         Guaranteed loan (b)                                  1,726,100,000           77,500,000
         Credit loan                                         23,859,391,747       19,134,752,031
       Sub-total                                             31,587,611,645       23,405,459,944

       Interest
          Pledged loan                                            5,296,939            5,273,499
          Guaranteed loan                                         5,916,028              429,160
          Credit loan                                            46,982,759           25,769,753
       Sub-total                                                 58,195,726           31,472,412
                                                             31,645,807,371       23,436,932,356

       Less: Current portion of long-term
              borrowings (Note 4(28))

       Principal
         Pledged loan                                          (386,056,214)       (298,558,767)
         Guaranteed loan                                       (126,400,000)         (1,400,000)
         Credit loan                                         (2,134,577,575)     (1,182,820,637)
       Sub-total                                             (2,647,033,789)     (1,482,779,404)

       Interest
         Pledged loan                                            (5,296,939)         (5,273,499)
         Guaranteed loan                                         (5,916,028)           (429,160)
         Credit loan                                            (46,982,759)        (25,769,753)
       Sub-total                                                (58,195,726)        (31,472,412)
                                                             (2,705,229,515)     (1,514,251,816)

       Total                                                 28,940,577,856       21,922,680,540




       - 240 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
4      Notes to the consolidated financial statements (Cont’d)

(30)   Long-term borrowings (Cont’d)

(a)    Pledged loan

       As at 31 December 2021, the charge right for electricity was treated as pledge for long-term
       pledged loan for some subsidiaries:

(b)    Guaranteed loan

       As at 31 December 2021, the balance of the Group’s subsidiary Xuwen Wind Power’s long-term
       borrowings from Energy Group Finance Company was RMB 7,100,000, including current portion of
       long-term borrowings of RMB 1,400,000, which was secured by Zhanjiang Wind Power (2020: RMB
       8,500,000, including current portion of long-term borrowings amounting to RMB 1,400,000). The
       annual interest rate of the loan is 4.26% (2020: 4.26%), and the maturity date is 28 November 2031.

       As at 31 December 2021, the balance of the Group’s subsidiary Qujie Wind Power’s long-term
       borrowings from China Clean Development Mechanism Fund was RMB 69,000,000 (2020:
       69,000,000), which was guaranteed by Energy Group Finance Company. The annual interest rate
       of the loan is 3.26% (2020: 3.46%), and the maturity date is 7 May 2025.

       As at 31 December 2021, the Group’s subsidiary Tumxuk, obtained guaranteed borrowings of RMB
       1,500,000,000 (31 December 2020: Nil) from Shanghai Pudong Development Bank Co., Ltd.
       Kashgar Branch, China Guangfa Bank Kashgar Branch and Bank of Urumqi Kashgar Branch,
       including current portion of long-term borrowings amounting to RMB 125,000,000 (guaranteed by
       the long-term borrowings guarantor, the Third Division of Xinjiang Production and Construction
       Corps), with the annual interest rate of 4.90% (2020: Nil) and the maturity date of 27 June 2032.

(c)    As at 31 December 2021, the annual interest rate of long-term borrowings ranged from 0.80% to
       4.90% (31 December 2020: 1.30% to 4.41%).




       - 241 -
             GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

             NOTES TO THE FINANCIAL STATEMENTS
             FOR THE YEAR ENDED 31 DECEMBER 2021
             (All amounts in RMB Yuan unless otherwise stated)
             [English translation for reference only]

      4      Notes to the consolidated financial statements (Cont’d)

      (31)   Debentures payable

                                                                                                                              Transferred to
                                                                 31 December                             Amortisation of   current portion of
                                                                        2020     Issued in the current     discounts or         non-current
                                                                    (Restated)                   year          premium              liabilities   31 December 2021

             21 Pinghai Bond 01 (a)                                          -           200,000,000           (78,516)                       -         199,921,484
             21 Pinghai Power MTN001 (b)                                     -           300,000,000          (787,122)                       -         299,212,878
             20 Yudean Bond 01 (c)                               1,499,542,911                     -            105,661                       -       1,499,648,572
             21 Yudean Bond 01 (d)                                           -         1,000,000,000           (75,472)                       -         999,924,528
             21 Yudean Bond 02 (e)                                           -         1,500,000,000          (144,340)                       -       1,499,855,660
             21 Yudean Bond 03 (f)                                           -           800,000,000          (364,780)                       -         799,635,220
             21 Yudean Faneng MTN001 (g)                                     -         1,200,000,000        (1,703,142)                       -       1,198,296,858
             21 Yudean Faneng MTN002 (h)                                     -         2,200,000,000        (3,411,778)                       -       2,196,588,222
                                                                 1,499,542,911         7,200,000,000        (6,459,489)                       -       8,693,083,422

      (a)    As approved by CSRC Circular SFC License [2020] No. 1771, the Group’s subsidiary Pinghai Power issued 2-year book-entry corporate
             debentures in real-name system with face value of RMB 200,000,000 (“21 Pinghai Bond 01”) to the public on 4 June 2021. The Group altogether
             raised RMB 199,880,000 after deducting an issue expense of RMB 120,000. The loan is subject to an annual interest rate of 3.57% starting from 4
             June 2021 and should be payable annually on simple interest. As at 31 December 2021, debentures payable were measured at amortised cost
             using effective interest method, with the effective interest rate of 3.60%.




- 242 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(31)   Debentures payable (Cont’d)

(b)    The Group’s subsidiary Pinghai Power’s application for registration of middle-term notes has been
       accepted by the National Association of Financial Market Institutional Investors at its 118th
       meeting in 2020. The registered amount of RMB 800,000,000 would be valid for 2 years starting
       from 23 November 2020. On 15 October 2021, Pinghai Power issued 3-year middle-term notes
       with face value of RMB 300,000,000 in the interbank market (“21 Pinghai Power MTN001”). The
       Group altogether raised RMB 299,100,000 after deducting an issue expense of RMB 900,000. The
       loan is subject to an annual interest rate of 3.72% starting from 15 October 2021 and should be
       payable annually on simple interest. As at 31 December 2021, debentures payable were
       measured at amortised cost using effective interest method, with the effective interest rate of
       3.83%.

(c)    As approved by CSRC Circular SFC License [2019] No. 2477, the Company issued 5-year
       book-entry corporate debentures in real-name system with face value of RMB 1,500,000,000 (“20
       Yudean Bond 01”) to the public on 29 April 2020. The Company altogether raised RMB
       1,499,471,698 after deducting an issue expense of RMB 528,302. The loan is subject to an annual
       interest rate of 2.45% starting from 29 April 2020 and should be payable annually on simple
       interest. As at 31 December 2021, debentures payable were measured at amortised cost using
       effective interest method, with the effective interest rate of 2.46%.

(d)    As approved by CSRC Circular SFC License [2019] No. 2477, the Company issued 3-year
       book-entry corporate debentures in real-name system with face value of RMB 1,000,000,000 (“21
       Yudean Bond 01”) to the public on 27 January 2021. The Company altogether raised RMB
       999,848,386 after deducting an issue expense of RMB 151,614. The loan is subject to an annual
       interest rate of 3.57% starting from 27 January 2021 and should be payable annually on simple
       interest. As at 31 December 2021, debentures payable were measured at amortised cost using
       effective interest method, with the effective interest rate of 3.58%.

(e)    As approved by CSRC Circular SFC License [2019] No. 2477, the Company issued 5-year
       book-entry corporate debentures in real-name system with face value of RMB 1,500,000,000 (“21
       Yudean Bond 02”) to the public on 28 April 2021. The Company altogether raised RMB
       1,499,791,783 after deducting an issue expense of RMB 208,217. The loan is subject to an annual
       interest rate of 3.50% starting from 28 April 2021 and should be payable annually on simple
       interest. As at 31 December 2021, debentures payable were measured at amortised cost using
       effective interest method, with the effective interest rate of 3.50%.

(f)    As approved by CSRC Circular SFC License [2021] No. 3142, the Company issued 5-year
       book-entry corporate debentures in real-name system with face value of RMB 800,000,000 (“21
       Yudean Bond 03”) to the public on 24 November 2021. The Company altogether raised RMB
       799,565,033 after deducting an issue expense of RMB 434,967. The loan is subject to an annual
       interest rate of 3.41% starting from 24 November 2021 and should be payable annually on simple
       interest. As at 31 December 2021, debentures payable were measured at amortised cost using
       effective interest method, with the effective interest rate of 3.42%.




       - 243 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
4      Notes to the consolidated financial statements (Cont’d)

(31)   Debentures payable (Cont’d)

(g)    The Company’s application for registration of middle-term notes has been accepted by the
       National Association of Financial Market Institutional Investors at its 51st meeting in 2021. The
       registered amount of RMB 4,000,000,000 would be valid for 2 years starting from 29 June 2021.
       On 21 July 2021, the Company issued 3-year middle-term notes with face value of RMB
       1,200,000,000 in the interbank market. The Company altogether raised RMB 1,197,948,000 after
       deducting an issue expense of RMB 2,052,000, which should be paid in three years. As at 31
       December 2021, the issue expense of RMB 684,000 was paid. The loan is subject to an annual
       interest rate of 3.17% starting from 21 July 2021 and should be payable annually on simple
       interest. As at 31 December 2021, debentures payable were measured at amortised cost using
       effective interest method, with the effective interest rate of 3.23%.

(h)    The Company’s application for registration of middle-term notes has been accepted by the
       National Association of Financial Market Institutional Investors at its 51st meeting in 2021. The
       registered amount of RMB 4,000,000,000 would be valid for 2 years starting from 29 June 2021.
       On 17 November 2021, the Company issued 3-year middle-term notes with face value of RMB
       2,200,000,000 in the interbank market. The Company altogether raised RMB 2,196,238,000 after
       deducting an issue expense of RMB 3,762,000, which should be paid in three years. As at 31
       December 2021, the issue expense of RMB 684,000 was paid. The loan is subject to an annual
       interest rate of 3.13% starting from 21 July 2021 and should be payable annually on simple
       interest. As at 31 December 2021, debentures payable were measured at amortised cost using
       effective interest method, with the effective interest rate of 3.19%.

(32)   Lease liabilities

                                                           31 December 2021          31 December 2020

       Lease liabilities                                      5,599,031,209                          —
       Less: Current portion of non-current
                liabilities (Note 4(28))                      (870,864,067)                          —
                                                              4,728,167,142                          —

(a)    As at 31 December 2021, future cash outflows to which the Group was potentially exposed that
       were not included in the lease liabilities comprised the future minimum lease payments of
       short-term leases and low-value asset leases adopting the practical expedient according to the
       new lease standard of RMB 3,339,680 and RMB 102,983 respectively, which should be paid within
       one year.




       - 244 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
4      Notes to the consolidated financial statements (Cont’d)

(33)   Long-term payables

(a)    Long-term payables

                                                                31 December 2021           31 December 2020
                                                                                                  (Restated)

       Payables for desulphurisation project (i)                       96,819,223                          -
       Finance lease payable (ii)                                              —              3,414,107,685
       Payables for share repurchase                                             -                90,000,000
       Others                                                          24,960,000                 24,960,000

       Less: Current portion of long-term payables                              -              (262,936,379)
                                                                      121,779,223              3,266,131,306

(i)    The payables represent the amounts payable by Tumxuk to Beijing SPC Environment Protection
       Tech Co., Ltd. for the desulphurisation project, which are expected to be repaid starting from 2028
       and will be fully repaid by 2032.

(ii)   The Group’s minimum finance lease payments are as follows:

       Minimum finance lease payments                           31 December 2021           31 December 2020
                                                                                                  (Restated)

       Within 1 year (inclusive)                                                —               291,301,448
       1 to 2 years (inclusive)                                                 —               637,145,043
       2 to 3 years (inclusive)                                                 —               611,312,052
       Over 3 years                                                             —             2,783,275,275
       Sub-total                                                                               4,323,033,818

       Less: Unrecognised finance charge                                        —             (908,926,133)
                                                                                —             3,414,107,685

(34)   Deferred income

                                       31 December         Increase in the   Decrease in the    31 December
                                               2020           current year      current year           2021
                                          (Restated)

       Government grants (a)            171,652,762           19,853,335       (27,894,582)      163,611,515




       - 245 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(34)   Deferred income (Cont’d)

(a)    Government grants

                                                                       31 December                         Recognised in
                                                                               2020    Increase in the    other income in   31 December    Asset related/
       Government grants                                                  (Restated)      current year   the current year          2021   Income related

       Compensation for relocation and renovation of Shajiao A
         Zhenkou pump house                                              16,684,075                  -       (5,561,358)     11,122,717    Asset related
       Special funds for 1-3# generators’ desulfurisation project       16,410,766                  -       (1,303,568)     15,107,198    Asset related
       Special financial funds for energy conservation                   13,790,787                  -       (1,383,567)     12,407,220    Asset related
       Tax refund for PRC-made equipment                                 10,332,936                  -       (2,296,208)      8,036,728    Asset related
       Environmental grants for SCR denitration project                   9,324,143                  -       (1,764,615)      7,559,528    Asset related
       Provincial special funds for enterprises’ technology
         improvement                                                      8,674,936        2,030,000         (2,997,831)      7,707,105    Asset related
       Comprehensive technology upgrading for the energy saving of
         1&2# generator units turbine by Zhongyue Energy                  7,692,307                  -         (769,230)      6,923,077    Asset related
       Second incentives for comprehensive and typical demonstration
         projects under financial policies of energy saving               6,750,000                  -         (450,000)      6,300,000    Asset related
       Development and competitiveness funds from SASAC                   6,666,666                  -         (666,666)      6,000,000    Asset related
       Post rewarding subsidies for ultra-low emissions of 1&2#
         generators                                                       5,645,957                  -         (633,191)      5,012,766    Asset related
       Grants for energy saving and consumption reduction of 6#
         generator flow reconstruction                                    5,176,911                  -         (478,188)      4,698,723    Asset related
       Grants for comprehensive technical transformation project for
         generator transformation and upgrading                           4,726,801                  -         (526,385)      4,200,416    Asset related
       Special treasury bond-based government grants for                                                                                   Asset related
         desulfurisation projects                                                -        12,133,335            (54,166)     12,079,169
       Others                                                           59,776,477         5,690,000         (9,009,609)     56,456,868    Asset related
                                                                       171,652,762        19,853,335        (27,894,582)    163,611,515




       - 246 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)


(35)   Long-term employee benefits payable

                                                           31 December 2021         31 December 2020
                                                                                           (Restated)

       Early retirement benefits payable (a)                      343,077,437              217,030,425
       Defined benefit plans payable (b)                          100,097,967                55,569,446
       Other long-term employee benefits payable (c)                55,536,676               63,920,439
       Less: Payable within one year                              (83,231,818)             (57,883,008)
                                                                  415,480,262              278,637,302


       The employee benefits payable within one year are included in the employee benefits payable
       (Note 4(25)).


(a)    According to the Group’s regulations for early retirement of employees, the employees whose
       early retirement requests are approved by the Group could have early retirement before statutory
       retirement age. Employees can obtain salary on a monthly basis by a certain ratio of the original
       salary until they reach the statutory retirement age. Management expects the termination benefits
       to be paid in the future are determined by the present value of cash flow, when accrued the above
       termination benefits. As at 31 December 2021, the Group calculated the expected expense for
       each employee eligible for early retirement in each year before the statutory retirement age in
       accordance with the related regulations for early retirement and estimated the present value of
       future termination benefits by treasury bond interest rate of 3.57% (2020: 3.97%) of the same
       period. As at 31 December 2021, the Group accrued termination benefits of RMB 343,077,437 (31
       December 2020: RMB 217,030,425) and recognised them in long-term employee benefits
       payable. The actual termination benefits due within one year totalling RMB 62,450,865 (31
       December 2020: RMB 40,365,508) were recognised in employee benefits payable.

(b)    In accordance with the FAQ on Social Management of Retired Employees in State-owned
       Enterprises (Guo Zi Ting Fa Gai Ge [2020] No. 36) issued by the State-owned Assets Supervision
       and Administration Commission of the State Council, the Group made a one-time provision for the
       existing retirement pensions paid to retired employees, and the retirement pensions are paid on a
       monthly basis. The Group’s retirement pensions mainly include retirement subsidies, military
       transfer subsidies and living allowances for retired primary and secondary school teachers. The
       expected present values of cash flows that shall be paid for retirement pensions during the
       expected remaining life of the retired employees are recognised as long-term employee benefits
       payable and recorded in profit or loss for the current period. As at 31 December 2021, the Group
       calculated the expected expense for each year up to the expected remaining life based on certain
       proportion of the retired employee’s retirement pensions of the year, and estimated the present
       value of cash expenses for future retirement pensions by treasury bond interest rate of 3.57% of
       the same period. As at 31 December 2021, the Group accrued defined benefit plans of RMB
       100,097,967 and recognised them in long-term employee benefits payable (31 December 2020:
       RMB 55,569,446). The actual defined benefit plans due within one year totalling RMB 8,400,995
       are recognised in employee benefits payable (31 December 2020: RMB 9,302,574).




       - 247 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
4      Notes to the consolidated financial statements (Cont’d)


(35)   Long-term employee benefits payable (Cont’d)


(b)    (Cont’d)


       Movements in net liability of defined benefit plans:


                                                                         2021                      2020


       Balance at 31 December 2020 (restated)                       55,569,446                          -
       Cost of the defined benefit plan included in
         profit or loss for the current period
       - Service costs for the current period                                -               58,459,711
       Cost of the defined benefit plan included in
         other comprehensive income
       - Actuarial loss                                             53,499,650                          -
       Other changes
       - Benefits paid                                              (8,971,129)              (2,890,265)
       Balance at 31 December 2021                                 100,097,967               55,569,446


       As at 31 December 2021 and 31 December 2020, significant actuarial assumptions for the
       determination of the present value of the obligations of the defined benefit plan were as follows:

                                                              31 December 2021       31 December 2020

       Discount rates                                                   3.57%                    3.97%
       Growth rates on military transfer subsidies                  2% to 12%                2% to 12%
       Estimated average lives                                              75                       73

       The sensitivity analysis below has been carried out based on reasonably possible changes of the
       respective assumptions occurring at the end of the reporting period, while all other assumptions
       are held constant:

       If the discount rate decreases by 0.5%, the present value of the Group’s net liabilities of the
       defined benefit plan would increase by RMB 3,796,456.

       The sensitivity analysis presented above may not reflect the actual changes in the obligations of
       the defined benefit plan because it is unlikely that changes in one assumption would occur in
       isolation of one another as some of the assumptions may be correlated.




       - 248 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
4      Notes to the consolidated financial statements (Cont’d)

(35)   Long-term employee benefits payable (Cont’d)

(c)    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
       current period. As at 31 December 2021, the balance of the Group’s other long-term employee
       benefits payable was mainly the additional payment of medical insurance made for retired
       employees. The Group calculated the expected expenses for each year from the end of current
       year to regulated contribution years based on certain proportion of the retired employee’s salary of
       the year, and estimated the present value of cash expenses made by retired employees for
       medical insurance in the future, with a treasury bond interest rate of 3.57% (2020: 3.97%) as
       discount rate. As at 31 December 2021, the Group accrued other long-term employee benefits
       payable of RMB 55,536,676 (31 December 2020: RMB 63,920,439), with actual payment of other
       long-term employee benefits payable due within one year of RMB 12,379,958 (31 December
       2020: RMB 8,214,926) recognised in employee benefits payable.

(d)    Long-term employee benefits payable included in profit or loss for the current period in 2021 and
       2020 were as follows:

                                                                         2021                        2020
                                                                                                (Restated)

       General and administrative expenses                       188,816,127                  182,201,690

(36)   Other non-current liabilities

                                                           31 December 2021            31 December 2020
                                                                                              (Restated)

       Capital injection (a)                                       74,499,700                 200,000,000
       Housing working fund                                           970,029                     970,029
                                                                   75,469,729                 200,970,029

(a)    In 2018, the Group’s subsidiaries Yangjiang Wind Power and Qujie Wind Power respectively
       received capital injection of RMB 100,000,000 and RMB 50,000,000 from GEGC. The capital will
       be used for Yangjiang Shapa offshore wind power plant project and Qujie Wailuo offshore wind
       power plant project. As at 31 December 2021, Yangjiang Wind Power had completed the
       registration for changes of business license, therefore, the capital increase previously recognised
       in other non-current liabilities was converted to paid-in capital in the current year. As Qujie Wind
       Power’s registration for changes of business license had not been completed, the capital increase
       was recognised in other non-current liabilities.

       In 2019, the Group’s subsidiary Zhuhai Wind Power received a capital injection of RMB 50,000,000
       from GEGC. The capital will be used for Zhuhai Jinwan Electric offshore wind power project. As at
       31 December 2021, the equity share corresponding to the capital injection amounting to RMB
       25,500,300 completed the registration for changes of business license, and the equity share
       corresponding to the balance of RMB 24,499,700 had not completed the registration for changes of
       business license as at 31 December 2021, so it was recognised in other non-current liabilities.




       - 249 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(37)   Share capital
                                                                                              Movements in the current year
                                                   31 December     Issuance of                        Housing fund
                                                          2020     new shares    Bonus shares transferred to shares           Others   Sub-total   31 December 2021

       Shares subject to trading restriction
         - Shares held by domestic
              state-owned legal person             1,893,342,621             -              -                     -                -           -      1,893,342,621
         - Other domestic shares
           Including: Shares held by domestic
                        non-state-owned legal
                        person                         4,620,666             -              -                     -                -           -          4,620,666
                      Shares held by domestic
                         natural person                    5,659             -              -                     -                -           -              5,659

       Shares not subject to trading restriction
         - RMB-dominated ordinary shares           2,553,907,040             -              -                     -                -           -      2,553,907,040
         - Domestically-listed foreign shares        798,408,000             -              -                     -                -           -        798,408,000

                                                   5,250,283,986             -              -                     -                -           -      5,250,283,986

                                                                                              Movements in the current year
                                                   31 December     Issuance of                        Housing fund
                                                          2019     new shares    Bonus shares transferred to shares           Others   Sub-total   31 December 2020

       Shares subject to trading restriction
         - Shares held by domestic
              state-owned legal person             1,893,342,621             -              -                     -                -           -      1,893,342,621
         - Other domestic shares
           Including: Shares held by domestic
                        non-state-owned legal
                        person                        4,620,666              -              -                     -                -           -          4,620,666
                      Shares held by domestic
                         natural person                    5,659             -              -                     -                -           -              5,659

       Shares not subject to trading restriction
         - RMB-dominated ordinary shares           2,553,907,040             -              -                     -                -           -      2,553,907,040
         - Domestically-listed foreign shares        798,408,000             -              -                     -                -           -        798,408,000

                                                   5,250,283,986             -              -                     -                -           -      5,250,283,986



       - 250 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(38)   Capital surplus

                                               31 December
                                                       2020    Increase in the   Decrease in the   31 December
                                                  (Restated)      current year      current year          2021

       Capital premium (a)
                                              7,734,477,748       19,435,795     (3,743,601,641)   4,010,311,902
       Revaluation reserve                      119,593,718                -                   -     119,593,718
       Investment from GEGC                     395,000,000                -                   -     395,000,000
       Share of interests in the investee
          in proportion to the
          shareholding (b)                     (179,682,776)       5,383,623                   -   (174,299,153)
       Transfer of capital surplus
          recognised under the previous
          accounting system                       20,474,592                 -                 -      20,474,592
       Others                                   (75,652,004)                 -                 -    (75,652,004)

                                              8,014,211,278       24,819,418     (3,743,601,641)   4,295,429,055

                                                                                                   31 December
                                             1 January 2020    Increase in the   Decrease in the           2020
                                                  (Restated)      current year      current year      (Restated)

       Capital premium (a)                    7,720,603,730       13,874,018                   -   7,734,477,748
       Revaluation reserve                      119,593,718                -                   -     119,593,718
       Investment from GEGC                     395,000,000                -                   -     395,000,000
       Share of interests in the investee
          in proportion to the
          shareholding (b)                        14,971,484                 -    (194,654,260)    (179,682,776)
       Transfer of capital surplus
          recognised under the previous
          accounting system                       20,474,592               -                  -        20,474,592
       Others                                   (75,652,004)               -                  -      (75,652,004)
                                              8,194,991,520       13,874,018      (194,654,260)    8,014,211,278

(a)    The amounts of share capital premium as at 1 January 2020 and for the year ended 31 December
       2020 have been restated as a result of business combinations involving enterprises under
       common control. The cash consideration for business combination under the same control this
       year was RMB 3,743,601,641 to offset the share premium (Note 5(3)(b)).

(b)    In 2021, capital surplus of associates calculated based on proportion of equity acquired increased
       by RMB 5,383,623 (Note 4(9)(b)).




       - 251 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4        Notes to the consolidated financial statements (Cont’d)

(39)     Other comprehensive income

                                                                           Other comprehensive income in the balance sheet                     Other comprehensive income in the income statement for the year ended 31 December 2021
                                                                                  Attributable to Transfer of other                                                                                                        Attributable to
                                                                                       the parent   comprehensive                                                                                Attributable to the              minority
                                                              31 December 2020    company after           income to                                                           Less: Income    parent company after     shareholders after
                                                                     (Restated)               tax retained earnings   31 December 2021          Amount incurred before tax    tax expenses                       tax                   tax

       Other comprehensive income that will not be
         reclassified to profit or loss
         Share of other comprehensive income of the
            investee accounted for using equity method
            that will not be reclassified to profit or loss          53,589,732       15,609,735                    -          69,199,467                       15,609,735                  -             15,609,735                       -
         Changes in fair value of investments in other
            equity instruments                                    1,903,766,633     (184,768,848)            (375,652)       1,718,622,133                    (246,358,463)       61,589,615            (184,768,848)                      -
         Changes arising from remeasurement of
            defined benefit plans                                                     (37,296,993)                  -          (37,296,993)                    (53,499,650)                 -             (37,296,993)           (16,202,657)
       Other comprehensive income that will be
         reclassified to profit or loss
         Share of other comprehensive income of the
            investee accounted for using equity method
            that will be reclassified to profit or loss                (180,884)        (332,152)                   -             (513,036)                       (332,152)                -                (332,152)                     -
                                                                  1,957,175,481     (206,788,258)            (375,652)       1,750,011,571                    (284,580,530)       61,589,615            (206,788,258)           (16,202,657)


                                                                                                                                                Other comprehensive income in the income statement for the year ended 31 December 2020
                                                                           Other comprehensive income in the balance sheet                                                            (Restated)
                                                                                                                                                     Amount                                    Attributable to the
                                                                     1 January 2020 Attributable to the parent           31 December 2020     incurred before                               parent company after     Attributable to minority
                                                                          (Restated)       company after tax                    (Restated)                tax Less: Income tax expenses                        tax   shareholders after tax

       Other comprehensive income that will not be
         reclassified to profit or loss
         Share of other comprehensive income of the
            investee accounted for using equity method
            that will not be reclassified to profit or loss              23,863,586                  29,726,146                 53,589,732       29,726,146                             -              29,726,146                           -
         Changes in fair value of investments in other
            equity instruments                                        1,651,781,571                251,985,062               1,903,766,633      335,980,082                  (83,995,020)             251,985,062                           -
         Changes arising from remeasurement of
            defined benefit plans
       Other comprehensive income that will be
         reclassified to profit or loss                                     220,468                  (401,352)                  (180,884)         (401,352)                             -               (401,352)                           -
         Share of other comprehensive income of the
            investee accounted for using equity method
            that will be reclassified to profit or loss               1,675,865,625             281,309,856                1,957,175,481      365,304,876                    (83,995,020)            281,309,856                            -




       - 252 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

4      Notes to the consolidated financial statements (Cont’d)

(40)   Surplus reserve

                                       31 December
                                               2020        Increase in the   Decrease in the    31 December
                                          (Restated)          current year      current year           2021

       Statutory surplus
         reserve                      2,905,992,585          110,901,285                   -    3,016,893,870
       Discretionary surplus
         reserve                      5,609,368,053          277,253,212                   -    5,886,621,265
                                      8,515,360,638          388,154,497                   -    8,903,515,135

                                                                                                31 December
                                       31 December         Increase in the   Decrease in the            2020
                                              2019            current year      current year       (Restated)

       Statutory surplus
         reserve                      2,828,966,001           77,026,584                   -    2,905,992,585
       Discretionary surplus
         reserve                      5,416,801,592          192,566,461                   -    5,609,368,053
                                      8,245,767,593          269,593,045                   -    8,515,360,638

       In accordance with the Company Law of the People's Republic of China and the Company’s
       Articles of Association, the Company should appropriate 10% of net profit for the year to the
       statutory surplus reserve, and the Company can cease appropriation when the statutory surplus
       reserve accumulates to more than 50% of the registered capital. The Company appropriates for
       the discretionary surplus reserve after the shareholders’ meeting approves the proposal from the
       Board of Directors. The surplus reserve can be used to make up for the loss or increase the share
       capital after approval from the appropriate authorities.

       According to the resolution at the shareholders’ meeting dated 20 May 2021, the Company
       appropriated 10% of net profit for 2020, amounting to RMB 110,901,285 (2020: 10% of net profit
       for 2019, amounting to RMB 77,026,584) to the statutory surplus reserve. Meanwhile, the
       Company appropriated 25% of net profit for 2020, amounting to RMB 277,253,212 (2020: 25% of
       net profit for 2019, amounting to RMB 192,566,461) to the discretionary surplus reserve.

(41)   Undistributed profits

                                                                             2021                       2020
                                                                                                   (Restated)

       Undistributed profits at the beginning of the year
          (before adjustment)                                       8,083,048,238              5,909,128,280
       Adjustments (a)                                                          -              1,050,513,006
       Undistributed profits at the beginning of the year
          (After adjustment)                                        8,083,048,238              6,959,641,286
       Add: Net profit attributable to equity owners of
                the Company                                       (3,147,754,234)              2,053,909,956
       Less: Appropriation to statutory surplus reserve
                 (Note 4(40))                                       (110,901,285)                (77,026,584)
            Appropriation to discretionary surplus
               reserve (Note 4(40))                                 (277,253,212)               (192,566,461)
            Dividends payable on ordinary shares (b)                (630,034,078)              (630,034,078)
            Allocated to GEGC (c)                                   (930,283,398)                (30,875,881)
            Others                                                      (981,973)                           -
       Undistributed profits at the end of the year (d)             2,985,840,058              8,083,048,238


       - 253 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
4      Notes to the consolidated financial statements (Cont’d)

(41)   Undistributed profits (Cont’d)

(a)    Undistributed profits at the beginning of 2020 were adjusted by RMB 1,050,513,006 due to
       business combinations involving enterprises under common control (Note 5(3))

(b)    In accordance with the resolution at the shareholders’ meeting dated 20 May 2021, the Company
       proposed a cash dividend to the shareholders at RMB 1.2 per 10 shares, amounting to RMB
       630,034,078 calculated by 5,250,283,986 issued shares.

(c)    As the business combination under common control was completed in the current year , the
       dividends allocated by the purchased subsidiary to GEGC in 2020 and 2021 were deemed to have
       been distributed by the Company to GEGC while preparing the consolidated financial statements.

(d)    Undistributed profits at the end of the year

       The surplus reserve attributable to the parent company appropriated by subsidiaries of the
       Company this year was RMB 72,643,464 (2020: RMB 212,059,261).

       As at 31 December 2021, the undistributed profits attributable to the parent company included an
       appropriation of RMB 3,408,046,692 (31 December 2020: RMB 3,335,403,228) to surplus reserve
       made by the Company’s subsidiaries.

(42)   Revenue and cost of sale

                                                                     2021                        2020
                                                                                            (Restated)

       Revenue from main operations                        43,574,329,958              33,115,496,875
       Revenue from other operations                          592,893,929                 487,398,990
                                                           44,167,223,887              33,602,895,865

                                                                     2021                        2020
                                                                                            (Restated)

       Cost of sale from main operations                   46,785,405,079              26,604,918,768
       Cost of sale from other operations                      29,395,603                  39,963,834
                                                           46,814,800,682              26,644,882,602




       - 254 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
4      Notes to the consolidated financial statements (Cont’d)

(42)   Revenue and cost of sale (Cont’d)

(a)    Revenue and cost of sale from main operations

                                                      2021                           2020 (Restated)
                                                              Cost of sale                       Cost of sale
                                     Revenue from              from main      Revenue from         from main
                                    main operations            operations    main operations      operations

       Revenue from sale of
         electricity                43,278,023,920         46,541,774,902    32,810,398,651    26,378,492,790
       Revenue from steam              167,971,843            137,147,673       138,114,070        88,112,939
       Rendering of services           128,334,195            106,482,504       166,984,154       138,313,039

                                    43,574,329,958         46,785,405,079    33,115,496,875    26,604,918,768

(b)    Revenue and cost of sale from other operations

                                                      2021                             2020 (Restated)
                                                              Cost of sale                         Cost of sale
                                     Revenue from              from other      Revenue from          from other
                                   other operations            operations    other operations       operations

       Revenue from
         integrated utilisation
         of coal ash                   495,095,811             7,603,191        380,944,621          5,312,072
       Rental income                    48,557,619            14,560,409         44,103,472         14,416,439
       Others                           49,240,499             7,232,003         62,350,897         20,235,323
                                       592,893,929            29,395,603        487,398,990         39,963,834

(i)    Due to the impact of COVID-19, the Group exempted the lessee from paying the rent of RMB
       611,459 for 2021, and the Group has deducted the above rental waivers against the rental income
       for the current period (2020: RMB 612,511).




       - 255 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
4      Notes to the consolidated financial statements (Cont’d)

(42)   Revenue and cost of sale (Cont’d)

(c)    The Group's revenue was broken down as follows:

                                                                                 2021
                                       Sale of electricity,
                                         steam and coal
                                                      ash        Services         Rent            Others           Total
       Revenue from main operations
       Including: Recognised at a
                    point in time        43,445,995,763         3,099,971               -              -   43,449,095,734
                  Recognised over a
                    period of time                        -   125,234,224               -              -     125,234,224
       Revenue from other operations
       Including: Recognised at a
                    point in time           495,095,811                 -               -     46,929,178     542,024,989
                  Recognised over a
                    period of time                    -                 -            -         2,311,321        2,311,321
                  Rental income                       -                 -   48,557,619                 -       48,557,619
                                         43,941,091,574       128,334,195   48,557,619        49,240,499   44,167,223,887

                                                                            2020 (Restated)
                                       Sale of electricity,
                                         steam and coal
                                                      ash        Services         Rent            Others            Total
       Revenue from main operations
       Including: Recognised at a
                    point in time        32,948,512,721         2,513,942               -              -   32,951,026,663
                  Recognised over a
                    period of time                        -   164,470,212               -              -     164,470,212
       Revenue from other operations
       Including: Recognised at a
                    point in time           380,944,621                 -               -     46,210,540     427,155,161
                  Recognised over a
                    period of time                    -                 -            -        16,140,357       16,140,357
                  Rental income                       -                 -   44,103,472                 -       44,103,472
                                         33,329,457,342       166,984,154   44,103,472        62,350,897   33,602,895,865


       As at 31 December 2021, the amount of revenue corresponding to the performance obligation of the
       Company that has been contracted but not yet performed or not fulfilled was RMB 156,344,108, of
       which, RMB 78,657,513 was expected to be recognised in 2022.




       - 256 -
           GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

           NOTES TO THE FINANCIAL STATEMENTS
           FOR THE YEAR ENDED 31 DECEMBER 2021
           (All amounts in RMB Yuan unless otherwise stated)
           [English translation for reference only]
4          Notes to the consolidated financial statements (Cont’d)

(43)       Taxes and surcharges

                                                                     2021               2020      Tax base
                                                                                   (Restated)

           Property tax                                         96,327,360       100,842,584        Note 3
           City maintenance and construction tax                62,927,128        74,668,696        Note 3
           Educational surcharge                                49,811,245        58,614,386        Note 3
           Stamp tax                                            36,790,843        23,929,618
           Land use tax                                         26,564,472        31,260,674
           Environmental protection tax                         21,251,165        16,000,214        Note 3
           Others                                                  307,863           397,608
                                                               293,980,076       305,713,780

    (44)   Selling expenses

                                                                                  2021                2020
                                                                                                 (Restated)

           Employee benefits                                                 41,365,789         38,913,145
           Labour insurance                                                   8,106,497          4,525,639
           Depreciation expenses                                              3,484,959            749,453
           Entertainment expenses                                             2,921,288          2,976,858
           Travelling expense                                                 1,431,025          1,230,016
           Others                                                            8,097,482          10,510,829
                                                                             65,407,040         58,905,940




           - 257 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
4      Notes to the consolidated financial statements (Cont’d)

(45)   General and administrative expenses

                                                                   2021            2020
                                                                              (Restated)

       Employee benefits                                    576,664,439     536,860,998
       Labour insurance                                      93,526,218      55,599,905
       Depreciation expenses                                 75,702,685      61,396,359
       Amortisation of intangible assets                     71,354,033      68,960,533
       Fire safety expenses                                  43,910,145      51,511,199
       Agency fee                                            41,705,254      33,745,096
       Property management expenses                          38,807,702      39,876,110
       Office expenses                                       30,729,609      30,232,545
       Afforestation fee                                     11,640,359      11,477,775
       Labour costs                                          10,690,272       7,024,436
       Traffic expenses                                       9,687,185       9,766,115
       Rental expenses                                        9,419,598      16,585,150
       Travelling expense                                     7,928,361       6,155,135
       Maintenance cost                                       7,593,392      11,122,501
       Entertainment expenses                                 5,888,643       5,163,230
       Insurance expenses                                     5,281,139       4,737,667
       Others                                                60,594,253      69,006,429
                                                           1,101,123,287   1,019,221,183

(46)   Research and development expenses

                                                                   2021            2020
                                                                              (Restated)

       Material expenses                                    332,438,285     141,597,462
       Employee benefits                                    176,230,301     145,944,187
       Depreciation and amortisation expenses                37,360,302      13,704,045
       Outsourced research and development expenses          26,650,129      16,354,380
       Others                                                12,035,962       7,322,990
                                                            584,714,979     324,923,064




       - 258 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
4      Notes to the consolidated financial statements (Cont’d)

(47)   Financial expenses

                                                                        2021              2020
                                                                                     (Restated)

       Interest costs                                        1,652,673,654       1,571,131,677
       Add: Interest costs on lease liabilities                182,484,109                  —
       Less: Amounts capitalised on qualifying assets        (335,159,980)       (290,622,613)
       Subtotal of interest expenses                         1,499,997,783       1,280,509,064
       Amortisation of unrecognised finance charge                       -          78,469,584
       Amortisation of discounts or premium of
           debentures payable                                     2,202,952          2,146,686
       Less: Interest income                                 (133,800,923)       (133,361,021)
       Exchange (gains)/losses - net                            (1,001,673)          8,915,164
       Bank charges and others                                    3,967,806          4,313,443
                                                             1,371,365,945       1,240,992,920

(48)   Expenses by nature

       The cost of sale, selling expenses, general and administrative expenses and research and
       development expenses in the income statement are listed as follows by nature:

                                                                        2021              2020
                                                                                     (Restated)

       Consumed fuel, low value consumables, etc.           39,049,240,468      19,493,837,449
       Depreciation and amortisation expenses                4,117,983,744       3,932,774,644
       Employee benefits                                     2,718,887,082       2,410,664,787
       Depreciation on right of use asset                      179,638,516                  —
       Repair charges                                        1,252,557,733       1,130,964,309
       Transaction costs                                      165,684,575         122,092,933
       Insurance expenses                                         147,982,370      141,768,708
       Utility fees                                                88,367,556       48,548,917
       Management fees for frequency modulation and
           energy storage                                          82,235,157       34,652,460
       Fire safety expenses                                        55,247,715       62,221,721
       Outsourcing fees for maintenance projects                   51,215,122       81,469,112
       Sewage and sanitary charges                                 44,062,837       44,590,992
       Property management expenses                                39,830,708       40,375,624
       Tug service fees                                            35,804,563       25,174,339
       Traffic expenses                                            34,093,659       31,264,761
       Rental expenses                                             17,146,349       26,605,972
       Office expenses                                             16,907,998       15,837,622
       Others                                                     469,159,836     405,088,439
                                                            48,566,045,988      28,047,932,789




       - 259 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
4      Notes to the consolidated financial statements (Cont’d)

(48)   Expenses by nature (Cont’d)

(i)    The Group directly recognise the daily maintenance and repair expenses of fixed assets that do
       not meet the criteria of capitalisation as the cost of sale, and included the costs related to the
       research and development department, the administrative department and the sale department in
       research and development expenses, general and administrative expenses and selling expenses,
       respectively.

(ii)   As disclosed in Note 2(25), the Group directly recognises the lease payments of short-term leases
       and low value leases in profit or loss. In 2021, the amount was RMB 17,146,349.

(49)   Asset impairment losses

                                                                       2021                       2020
                                                                                             (Restated)

       Impairment losses on fixed assets (Note
         4(12)(a)(vi))                                           29,321,084                398,880,127
       Impairment losses on contract assets                           9,377                     12,512
       Impairment losses on construction in progress
         (Note 4(13)(a)(iii))                                               -                87,243,667
       Losses on decline in the value of inventories                        -                16,093,640
       Reversal of impairment of advances to
         suppliers (Note 4(3)(b))                                         -                  (249,805)
                                                                 29,330,461                501,980,141

(50)   Credit impairment loss/(reversal)

                                                                       2021                        2020
                                                                                              (Restated)

       Losses on bad debts of other receivables (Note
         4(4)(b))                                                21,796,665                     760,848
       Reversal of bad debts of accounts receivables
         (Note 4(2)(c))                                             (28,808)                   (788,675)
                                                                 21,767,857                     (27,827)




       - 260 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
4      Notes to the consolidated financial statements (Cont’d)

(51)   Other income

                                                                                                Asset related/ Income
                                                                     2021              2020                     related
                                                                                  (Restated)

       Revenue from VAT refund upon collection                 28,991,960        15,157,053            Income related
       Enterprise economic contribution rewards for
          Nansha headquarters                                   9,049,900                   -          Income related
       Compensation for relocation and renovation of
          Shajiao A Zhenkou pump house                          5,561,358         5,561,358              Asset related
       Provincial special funds for enterprises’
          technology improvement                                2,997,831                 -              Asset related
       Tax refund for PRC-made equipment                        2,296,208         2,296,208              Asset related
       Subsidies for employment stabilisation provided
          by unemployment insurance                             2,058,912         4,613,679            Income related
       Environmental grants for SCR denitration project         1,764,615         1,764,615              Asset related
       Incentives for energy efficiency of power plant by
          Dongguan                                              1,647,687         1,647,687              Asset related
       Other government grants related to assets               13,626,883        13,172,293              Asset related
       Other government grants related to income                4,658,163        11,508,857            Income related
                                                               72,653,517        55,721,750

(52)   Investment income

                                                                                  2021                          2020
                                                                                                           (Restated)

       Investment income from long-term equity investments
          under equity method                                               741,825,985                  289,336,338
       Dividend income earned during the holding period of
          investments in other equity instruments (Note
          4(10))                                                             87,731,408                   65,160,836
       Others                                                                 4,446,948                      361,286
                                                                            834,004,341                  354,858,460

       There was no significant restriction on remittance of investment income of the Group.

(53)   Gains on disposals of assets

                                                                                                Amount recognised in
                                                                                                non-recurring profit or
                                                                   2021             2020                 loss in 2021
                                                                               (Restated)

       Gains on disposals of other current
          assets                                             12,814,168      340,936,718                   12,814,168
       Gains on disposals of intangible assets               84,060,264          157,963                   84,060,264
       Gains/(losses) on disposals of fixed
          assets                                             90,856,371        (143,644)                   90,856,371
       Losses on disposals of construction in
          progress                                           (3,141,778)               -                  (3,141,778)
                                                            184,589,025      340,951,037                 184,589,025

       In 2021, the Group's gains on disposals of assets were mainly generated from the disposals of
       terminal assets by Bohe Energy (Note 4(13)(a)(i)) and the disposals of land use rights by some
       subsidiaries.



       - 261 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
4      Notes to the consolidated financial statements (Cont’d)

(54)   Non-operating income

                                                                                         Amount recognised
                                                                                             in non-recurring
                                                                2021           2020     profit or loss in 2021
                                                                          (Restated)

       Claims and compensation income                       6,505,940      7,055,408               6,505,940
       Gains on scrapping of non-current
         assets                                            95,182,637     41,773,417              95,182,637
       Compensation for electricity charges
         during the demolition and
         construction period                               18,040,851     11,315,659              18,040,851
       Income from penalties and fines                      8,005,031      6,287,786               8,005,031
       Negative goodwill gains from business
         combination involving enterprises
         not under common control                                   -      1,235,720                         -
       Negative goodwill gains from
         associates                                              -         8,549,071                      -
       Others                                           11,358,416        28,345,397             11,358,416
                                                       139,092,875       104,562,458            139,092,875

(55)   Non-operating expenses

                                                                                          Amount recognised
                                                                                        in non-recurring profit
                                                                 2021           2020           or loss in 2021
                                                                           (Restated)

       Carbon emission quota used to fulfil
         the emission reduction obligation (a)             135,013,051    60,360,191                             -
       Losses on scrapping of non-current
         assets                                             25,804,195    24,622,721              25,804,195
       Penalties and overdue fines                           5,859,197     5,387,634               5,859,197
       Losses on scrapping of waste
         materials                                           1,750,259    22,555,949               1,750,259
       Others                                                3,032,029     2,047,760               3,032,029
                                                           171,458,731   114,974,255              36,445,680

(a)    In accordance with the Interim Provisions on the Accounting Treatment Regarding Carbon
       Emissions Right Trading and the Interim Measures for the Administration of Trading of Carbon
       Emission Rights (Cai Kuai [2019] No. 22), companies within the Group that were identified as key
       emission units recognised the purchase of carbon emission quotas used in 2021 as
       non-operating expenses on an accrual basis, and included relate provision for carbon emission
       quota payable in other payables.




       - 262 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
4      Notes to the consolidated financial statements (Cont’d)

(56)   Income tax expenses

                                                                        2021                     2020
                                                                                            (Restated)

       Current income tax calculated based on tax law
         and related regulations                                  144,706,929           1,010,188,783
       Deferred income tax                                      (728,397,074)              37,560,547
                                                                (583,690,145)           1,047,749,330

       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:

                                                                         2021                    2020
                                                                                            (Restated)

       Total (loss)/profit                                   (5,056,385,413)           4,247,423,512
       Income tax calculated at applicable tax rates         (1,264,096,353)           1,061,855,878
       Effect of preferential tax rates of subsidiaries         (72,481,567)             (55,527,648)
       Effect of change in the tax rates                           4,530,204                        -
       Income not subject to tax                               (210,513,261)             (88,971,108)
       Costs, expenses and losses not deductible for tax
           purposes                                                53,274,007             48,634,979
       Deductible losses for which no deferred tax asset
           was recognised                                         894,027,860            124,560,996
       Transfer-out of deductible losses for which
           deferred tax asset was recognised                       12,702,380             31,862,492
       Deductible temporary differences for which no
           deferred tax asset was recognised                       36,259,625             70,114,810
       Utilisation of previously unrecognised deductible
           losses                                                 (9,829,508)            (13,142,124)
       Utilisation of previously unrecognised deductible
          temporary differences                                 (12,792,715)            (134,299,614)
       Others                                                   (14,770,817)                2,660,669
       Income tax expenses                                      (583,690,145)           1,047,749,330




       - 263 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
4      Notes to the consolidated financial statements (Cont’d)

(57)   Earnings per share

(a)    Basic earnings per share

       Basic earnings per share are calculated by dividing consolidated net profit attributable to ordinary
       shareholders of the parent company by the weighted average number of ordinary shares
       outstanding:

                                                                             2021                   2020
                                                                                               (Restated)

       Consolidated net (loss)/profit attributable to ordinary
          shareholders of the parent company                      (3,147,754,234)          2,053,909,956
       Weighted average number of outstanding ordinary
          shares of the Company                                    5,250,283,986           5,250,283,986
       Basic earnings per share                                            (0.60)                   0.39
       Including:
       - Basic earnings per share from continuing operations:               (0.60)                    0.39
       - Basic earnings per share for discontinued operations:                   -                       -

(b)    Diluted earnings per share

       Diluted earnings per share is calculated by dividing net profit attributable to ordinary shareholders
       of the parent company adjusted based on the dilutive potential ordinary shares by the adjusted
       weighted average number of ordinary shares outstanding. In 2021, there were no dilutive potential
       ordinary shares (2020: Nil), and hence diluted earnings per share is equal to basic earnings per
       share.




       - 264 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
4      Notes to the consolidated financial statements (Cont’d)

(58)   Notes to the cash flow statement

(a)    Cash received relating to other operating activities

                                                                    2021           2020
                                                                              (Restated)

       Interest income                                        139,255,889   131,620,617
       Rental income                                           48,557,619    44,103,472
       Government grants                                       23,486,977    31,076,682
       Claims and compensation income                          14,510,971    11,998,940
       Others                                                  46,880,126    31,187,474
                                                              272,691,582   249,987,185

(b)    Cash paid relating to other operating activities

                                                                    2021           2020
                                                                              (Restated)

       Insurance expenses                                     153,146,648   176,913,371
       Utility fees                                            92,086,938    48,548,917
       Carbon emission quota                                   70,390,672    25,205,993
       Fire safety expenses                                    55,247,715    60,765,361
       Sewage and sanitary charges                             44,087,589    46,217,879
       Property management expenses                            43,911,232    39,876,110
       Agency fee                                              41,705,254    32,380,217
       Research and development expenses                       38,686,091    21,450,578
       Office expenses                                         35,524,383    32,992,404
       Traffic expenses                                        34,651,955    30,533,858
       Travelling expenses                                     17,201,473    11,652,957
       Rental expenses                                         17,146,349    26,605,972
       Administrative penalties and overdue fines               5,859,197    21,446,366
       Expenses relating to supply of water, power
          and heat and property management                              -    31,001,152
       Others                                                 261,168,637   243,150,955
                                                              910,814,133   848,742,090




       - 265 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
4      Notes to the consolidated financial statements (Cont’d)

(58)   Notes to the cash flow statement (Cont’d)

(c)    Cash received relating to other investing activities

                                                                           2021                   2020
                                                                                             (Restated)

       Net income from trial operation                             162,478,679              18,734,619
       Advances from compensations for demolition                            -              15,000,000
                                                                   162,478,679              33,734,619

(d)    Cash paid relating to other investing activities

                                                                           2021                   2020
                                                                                             (Restated)

       Advances for business units                                 188,784,979                       -
       Deposits for ecological protection                               30,583              10,043,160
       Deposits prepaid for equity acquisition                                 -            80,000,000
       Net expense on trial operation                                          -            53,844,513
       Deposits for rehabilitation                                           -               7,090,400
                                                                   188,815,562             150,978,073

(e)    Cash paid relating to other financing activities

                                                                           2021                   2020
                                                                                             (Restated)

       Consideration paid for business combinations
         involving enterprises under common control (i)           1,242,164,731                      -
       Repayments of lease liabilities                              300,181,939                    —
       Agency fee for debenture issuance                                150,906             3,376,906
       Cash paid for finance leases                                           -           200,941,620
                                                                  1,542,497,576           204,318,526

       In 2021, total cash outflows for leases paid by the Group amounted to RMB 317,328,288, except for
       the repayments of lease liabilities classified as cash paid relating to financing activities, the
       remaining was classified as cash paid relating to operating activities.




       - 266 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
4      Notes to the consolidated financial statements (Cont’d)

(58)   Notes to the cash flow statement (Cont’d)

(e)    Cash paid relating to other financing activities (Cont’d)

(i)    Subsidiaries acquired from business combinations involving enterprises under common control

                                                                                               2021

       Cash and cash equivalents paid in the current year for
          business combinations incurred in the current year
       Including: Sha C Company                                                         658,475,586
                 Yunhe Power                                                            354,276,477
                 Yuehua Power                                                           229,412,668
       Net cash paid to acquire the subsidiary                                        1,242,164,731

       Considerations for acquisition of subsidiaries in 2021

       Sha C Company                                                                  1,934,041,438
       Yunhe Power                                                                    1,139,513,152
       Yuehua Power                                                                     670,047,051
                                                                                      3,743,601,641

       Net assets of subsidiaries acquired in 2021 at the acquisition date

                                      Sha C Company                  Yunhe Power      Yuehua Power

       Current assets                   3,506,977,846                574,880,620        709,151,957
       Non-current
         assets                         3,677,033,014               1,493,654,787     2,849,206,154
       Current liabilities            (2,635,470,885)               (856,838,128)     (757,297,111)
       Non-current
         liabilities                  (1,451,075,088)                 (10,208,620)   (1,738,748,674)
                                        3,097,464,887               1,201,488,659      1,062,312,326




       - 267 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
4      Notes to the consolidated financial statements (Cont’d)

(59)   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

                                                                          2021             2020
                                                                                      (Restated)

       Net (loss)/profit                                      (4,472,695,268)     3,199,674,182
       Add: Losses on provision for asset impairment                29,330,461      501,980,141
             Provision for credit impairment loss                   21,767,857           (27,827)
             Depreciation of right-of-use assets                  179,638,516                  —
             Depreciation of fixed assets                       4,027,290,490     3,853,119,217
             Depreciation of investment properties                   9,980,869         5,752,279
             Amortisation of intangible assets                      75,995,559        69,971,469
             Amortisation of long-term prepaid expenses              4,716,826         3,931,679
             Amortisation of deferred income                      (27,894,582)      (23,457,161)
             Gains on disposals of fixed assets, intangible
                 assets and other long-term assets              (184,589,025)     (340,951,037)
             (Gains)/Losses on scrapping of non-current
                 assets                                          (69,378,442)       (17,150,696)
             Financial expenses                                1,501,349,968      1,368,397,560
             Investment income                                 (834,004,341)      (354,858,460)
             (Increase)/Decrease in deferred income
                 taxes                                          (728,397,074)          37,560,547
             (Increase)/Decrease in inventories               (1,283,963,976)        407,267,712
             Increase in operating receivables                (1,558,636,449)    (1,361,129,581)
             Increase in operating payables                     3,278,492,670        418,911,293
             Decrease in restricted cash                           (9,308,070)       (14,192,681)
       Net cash flows (used in)/from operating activities         (40,304,011)     7,754,798,636




       - 268 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
4      Notes to the consolidated financial statements (Cont’d)

(59)   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

                                                                        2021                    2020
                                                                                           (Restated)

       Right-of-use assets increased in the current
         period                                               2,042,941,963                        —
       Inventory procurement payment made by
         acceptance notes                                     1,680,000,000            1,051,992,546
       Equity investments increased in the current
         period                                                 245,776,161                        -
       Project payment made by acceptance notes                 228,780,000               40,300,000
       Long-term assets held under finance lease                          -            1,124,236,124
                                                              4,197,498,124            2,216,528,670

       Net increase/(decrease) in cash and cash equivalents

                                                                        2021                    2020
                                                                                           (Restated)

       Cash at the end of the year                           8,023,116,939              9,405,082,609
       Less: Cash at the beginning of the year             (9,405,082,609)            (8,346,872,084)
       Net (decrease)/increase in cash and cash
         equivalents                                       (1,381,965,670)              1,058,210,525




       - 269 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
4      Notes to the consolidated financial statements (Cont’d)

(59)   Supplementary information to the cash flow statement (Cont’d)

(b)    Acquisition of the subsidiaries

(i)    Subsidiaries acquired from business combinations involving enterprises not under common control

                                                                        2021                     2020

       Cash and cash equivalents paid in the
          current year for business combinations
          incurred in the current year                          941,858,100                49,680,900
       Including: Nanhua New Energy (Note 1)                              -                         -
                  Datang New Energy (Note 1)                    141,858,100                         -
                  Tumxuk                                        800,000,000                         -
                  Huaguoquan Company                                      -                49,680,900
       Less: Cash and cash equivalents held by
                 subsidiaries at the acquisition date         (865,283,946)                (8,800,684)
       Including: Nanhua New Energy                                 (61,762)                         -
                  Datang New Energy                            (20,018,966)                          -
                  Tumxuk                                      (845,203,218)                          -
                  Huaguoquan Company                                       -               (8,800,684)
       Net cash paid to acquire the subsidiaries                 76,574,154                40,880,216

Note 1 In 2020, Guangdong Wind Power, a subsidiary of the Group, entered into an equity transfer
       agreement with Guangdong Guangye Investment Group Co., Ltd. (“Guangye Investment”) to
       acquire 51% equity in Nanhua New Energy and 51% equity in Datang New Energy held by
       Guangye Investment for a consideration of RMB 93,381,000 and RMB 161,858,100
       respectively, of which Guangdong Wind Power has paid in full the purchase price of RMB
       93,381,000 for the equity in Nanhua New Energy and part of the purchase price of RMB
       20,000,000 for the equity in Datang New Energy during the year. In 2020, this portion of the
       equity acquisition was included in cash paid for investments.




       - 270 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
4      Notes to the consolidated financial statements (Cont’d)

(59)   Supplementary information to the cash flow statement (Cont’d)

(b)    Acquisition of the subsidiaries (Cont'd)

(i)    Subsidiaries acquired from business combinations involving enterprises not under common control
       (Cont'd)

       Considerations for acquisition of subsidiaries in 2021

       Nanhua New Energy                                                                   93,381,000
       Datang New Energy                                                                  161,858,100
       Tumxuk                                                                             800,000,000
                                                                                        1,055,239,100

       Net assets of subsidiaries acquired in 2021 at the acquisition date

                                   Nanhua New Energy            Datang New Energy             Tumxuk

       Current assets                         31,144,274                 72,878,225     1,089,368,167
       Non-current assets                    437,935,585                388,676,246     2,145,324,482
       Current liabilities                  (51,957,363)               (30,648,956)     (754,355,828)
       Non-current liabilities             (246,098,958)              (162,988,627)   (1,624,132,331)
                                             171,023,538                267,916,888       856,204,490




       - 271 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
4      Notes to the consolidated financial statements (Cont’d)

(59)   Supplementary information to the cash flow statement (Cont’d)

(c)    Cash and cash equivalents

                                                               31 December 2021               31 December 2020
                                                                                                     (Restated)

       Cash at bank and on hand                                     8,105,320,953                 9,438,414,350
       Less: Restricted cash at bank                                  (42,670,394)                  (33,331,741)
       Less: Interest receivable                                     (39,533,620)                              -
       Cash and cash equivalents at the end of the
         year (i)                                                   8,023,116,939                 9,405,082,609

(i)    Cash and cash equivalents at the end of the year

                                                               31 December 2021               31 December 2020
                                                                                                     (Restated)

       Cash on hand                                                        83,108                        83,607
       Cash at bank that can be readily drawn on
         demand                                                     8,023,033,831                 9,404,999,002
                                                                    8,023,116,939                 9,405,082,609

(60)   Monetary items denominated in foreign currency

                                                                          31 December 2021
                                                     Balance in foreign
                                                            currencies       Exchange rate       Balance in RMB

       Cash at bank and on hand -
         USD                                                    34,618               6.3757             220,713
         HKD                                                       724               0.8176                 592
                                                                                                        221,305

       Long-term borrowings -
          USD                                               6,980,673                6.3757          44,506,676

       Current portion of non-current
          liabilities -
         USD                                                1,026,085                6.3757           6,542,011




       - 272 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]
5     Changes of consolidation scope

(1)   Subsidiaries established during the year:

                                            Major business       Place of     Business         Registered
      Subsidiaries                                 location   registration      nature            capital     Shareholding (%)            Acquisition method
                                                                                                              Direct   Indirect

      Guangdong Yudean Dananhai
        Smart Energy Co., Ltd.                                                Electricity
        (“Dananhai Company”)                     Jieyang       Jieyang     generation RMB 5,000,000       100.00%           -                   Investment
      Guangdong Yudean Baihua
        Integrated Energy Co., Ltd.                                           Electricity
        (“Baihua Company”)                      Huizhou        Huizhou     generation RMB 5,000,000       100.00%           -                   Investment
      Guangdong Energy Qingzhou
        Offshore Wind Power Co., Ltd.
        (“Qingzhou Offshore Wind                                             Electricity        RMB
        Power”)                                 Yangjiang     Yangjiang     generation   185,000,000             - 100.00%                       Investment
                                                                              Electricity
      Wanhaowei New Energy                       Zhanjiang     Zhanjiang     generation RMB 5,000,000             - 100.00%                       Investment
      Zhanjiang Wanchuang Hengwei
        New Energy Co., Ltd.
        (“Wanchuang Hengwei New                                              Electricity
        Energy”)                                Zhanjiang     Zhanjiang     generation RMB 1,000,000             - 100.00%                       Investment
      Guangdong Yuedian Bijie New
        Energy Co. Ltd. (“Bijie New                                          Electricity
        Energy”)                                     Bijie          Bijie   generation RMB 5,000,000       100.00%           -
                                                                                                                                       Business combinations
                                                                              Electricity           RMB                              involving enterprises not
      Nanhua New Energy                          Zhanjiang     Zhanjiang     generation      135,234,900          -   51.00%           under common control
                                                                                                                                       Business combinations
                                                                              Electricity           RMB                              involving enterprises not
      Datang New Energy                        Guangzhou      Guangzhou      generation      145,938,900          -   51.00%           under common control
                                                                                                                                       Business combinations
                                                                              Electricity           RMB                              involving enterprises not
      Yueneng Wind Power                         Zhanjiang     Zhanjiang     generation      130,000,000          -   51.00%           under common control
                                                                                                                                       Business combinations
                                                                              Electricity            RMB                             involving enterprises not
      Tumxuk                                       Tumxuk        Tumxuk      generation     1,006,523,900   79.48%            -        under common control
                                                                                                                                       Business combinations
                                                                              Electricity            RMB                          involving enterprises under
      Sha C Company                            Guangzhou      Guangzhou      generation     2,500,000,000   51.00%            -               common control
                                                                                                                                       Business combinations
      Guangdong Guanghe Power Co.,                                            Electricity            RMB                          involving enterprises under
        Ltd. (“Guanghe Power”)               Guangzhou      Guangzhou      generation     2,240,816,893         -   51.00%                  common control
      Guangdong Yudean Zhanjiang
        Biomass Power Generation Co.,                                                                                                 Business combinations
        Ltd. (“Biomass Power                                                 Electricity           RMB                           involving enterprises under
        Generation”)                            Zhanjiang     Zhanjiang     generation      621,040,000          -   51.00%                 common control
                                                                                                                                      Business combinations
                                                                              Electricity           RMB                           involving enterprises under
      Xinhui Power                               Jiangmen      Jiangmen      generation      613,902,062          -   45.90%                 common control
      Guangdong Yudean Huaqing Gas                                                                                                    Business combinations
         Joint Cycle Power Generation                                         Electricity           RMB                           involving enterprises under
         Co., Ltd. (“Huaqing Power”)           Jiangmen      Jiangmen      generation       10,000,000          -   33.15%                 common control
                                                                                                                                      Business combinations
                                                                              Electricity           RMB                           involving enterprises under
      Yunhe Power                                    Yunfu         Yunfu     generation      755,733,258    90.00%            -              common control
                                                                                                                                      Business combinations
      Yunfu Yundian Energy Co., Ltd.                                          Electricity           RMB                           involving enterprises under
        (“Yundian Energy”)                         Yunfu         Yunfu     generation       40,000,000          -   56.25%                 common control
                                                                                                                                      Business combinations
                                                                              Electricity            RMB                          involving enterprises under
      Yuehua Power                             Guangzhou      Guangzhou      generation     1,004,714,000   51.00%            -              common control
      Guangdong Yudean Yuehua                                                                                                         Business combinations
        Integrated Energy Co., Ltd.                                           Electricity           RMB                           involving enterprises under
        (“Yuehua Integrated Energy”)         Guangzhou      Guangzhou      generation       60,000,000          -   51.00%                 common control
      Guangzhou Huangpu Guangdian
        Petroleum Store & Transport Co.,                                                                                              Business combinations
        Ltd. (“Guangdian Petroleum Store                                 Storage and               RMB                           involving enterprises under
        & Transport”)                         Guangzhou      Guangzhou transportation        24,000,000          -   51.00%                 common control
      Guangzhou Huangpu Power                                                                                                         Business combinations
        Engineering Co., Ltd. (“Huangpu                                      Electricity           RMB                           involving enterprises under
        Power Engineering”)                   Guangzhou      Guangzhou      generation       13,000,000          -   51.00%                 common control
      Guangzhou Huangdian Training                                                                                                    Business combinations
        Centre Co., Ltd. (Huangdian                                                                                               involving enterprises under
        Training Centre)                       Guangzhou      Guangzhou        Training     RMB 500,000           -   51.00%                 common control
      Guangzhou Huangpu Suishen Power                                                                                                 Business combinations
        Technology Engineering Co., Ltd.                                      Electricity                                         involving enterprises under
        (“Suishen Power Engineering”)        Guangzhou      Guangzhou      generation RMB 3,000,000             -   35.70%                 common control



      - 273 -
          GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

          NOTES TO THE FINANCIAL STATEMENTS
          FOR THE YEAR ENDED 31 DECEMBER 2021
          (All amounts in RMB Yuan unless otherwise stated)
          [English translation for reference only]

   5      Changes of consolidation scope (Cont’d)

   (2)    Business combinations involving enterprises not under common control

   (a)    Business combinations involving enterprises not under common control in the current year

                                                                                                                         Revenue of the     Net (loss)/profit of         Cash flows from      Net cash flows of
                                                                                                                           acquiree from    the acquiree from      operating activities of   the acquiree from
                                                               Interest                                      Basis for    the acquisition      the acquisition     the acquiree from the        the acquisition
                                Timing of     Acquisition     acquired    Acquisition   Acquisition   determining the    date to the end    date to the end of         acquisition date to   date to the end of
          Acquiree             acquisition          cost           (%)       method           date    acquisition date        of the year           the period        the end of the year              the year

          Nanhua New           7 January                                       Equity   7 January      Completion of
             Energy                2021       93,381,000       51.00%        transfer        2021      equity delivery       42,920,265             9,730,736                38,779,601             5,457,329
          Datang New           31 March                                        Equity    31 March      Completion of
             Energy                2021      161,858,100       51.00%        transfer        2021      equity delivery       37,494,859             4,879,536                54,494,513            27,051,139
                                                                                               10
                            10 December                                       Capital   December       Completion of
          Tumxuk                   2021      800,000,000       79.48%       increase         2021     capital increase       60,100,462          (39,676,591)             (134,560,246)         (228,723,029)

          On 7 January 2021, the Company’s wholly-owned subsidiary Guangdong Wind Power acquired 51% equity in Nanhua New Energy held by Guangye Investment
          at a consideration of RMB 93,381,000. On 31 March 2021, the Company’s wholly-owned subsidiary Guangdong Wind Power acquired 51% equity in Datang
          New Energy held by Guangye Investment at a consideration of RMB 161,858,100. On 10 December 2021, the Company increased its capital to Tumxuk by RMB
          800,000,000. The transaction was agreed by the original shareholder Xinjiang Jintai Electric Power Co., Ltd. The shareholding percentage of the Company in
          Tumxuk after the capital increase is 79.48%. Those transactions are classified as business combinations involving enterprises not under common control as
          Nanhua New Energy, Datang New Energy, Tumxuk and the Company were not controlled by the same ultimate controlling party prior to combinations.




- 274 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

5      Changes of consolidation scope (Cont’d)

(2)    Business combinations involving enterprises not under common control (Cont’d)

(b)    Details of the costs of combination and goodwill recognised are as follows:

                                                   Nanhua New           Datang New
                                                       Energy               Energy               Tumxuk

       Costs of combination -

        Cash consideration                           93,381,000         161,858,100          800,000,000
        Less: Fair value of the share of
                identifiable net assets
                obtained                           (87,222,005)        (149,972,616)       (680,511,328)
        Goodwill                                      6,158,995           11,885,484         119,488,672

        The Group uses valuation techniques to determine the fair value of non-cash assets transferred
        and the fair value of liabilities incurred.

(c)    The assets and liabilities of the acquiree at the acquisition date and 31 December 2020 are as
       follows:

(i)    Nanhua New Energy

                                                                              Carrying         Carrying
                                                   Fair value at the     amount at the      amount at 31
                                                   acquisition date    acquisition date   December 2020

       Cash at bank and on hand                              61,762            61,762         10,184,412
       Accounts receivables                              15,207,374        15,207,374         18,413,871
       Advances to suppliers                                209,642           209,642          4,150,115
       Other receivables                                 10,337,282        10,337,282            191,912
       Other current assets                               5,328,214         5,328,214         32,264,103
       Fixed assets                                    407,064,244       343,239,844        343,239,844
       Other non-current assets                          30,871,341        30,871,341                  -
       Less: Other payables                            (35,199,051)      (35,199,051)       (35,585,208)
              Current portion of
                non-current liabilities               (15,000,000)       (15,000,000)       (15,000,000)
              Other current liabilities                 (1,758,312)        (1,758,312)        (1,758,312)
              Long-term borrowings                   (230,142,858)      (230,142,858)      (230,142,858)
              Deferred tax liabilities                (15,956,100)                   -                  -
       Net assets                                      171,023,538        123,155,238        125,957,879
       Less: Minority interests                       (83,801,533)
       Net assets obtained                              87,222,005




      - 275 -
        GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

        NOTES TO THE FINANCIAL STATEMENTS
        FOR THE YEAR ENDED 31 DECEMBER 2021
        (All amounts in RMB Yuan unless otherwise stated)
        [English translation for reference only]
5       Changes of consolidation scope (Cont’d)

(2)     Business combinations involving enterprises not under common control (Cont’d)

(c)     The assets and liabilities of the acquiree at the acquisition date and 31 December 2020 are as
        follows (Cont’d):

(ii)    Datang New Energy

                                                Fair value at          Carrying
                                              the acquisition     amount at the    Carrying amount at
                                                         date   acquisition date   31 December 2020

        Cash at bank and on hand                  20,018,966        20,018,966               1,640,217
        Accounts receivables                      49,853,464        49,853,464             37,247,749
        Advances to suppliers                          25,637            25,637                 22,044
        Other receivables                           2,980,158         2,980,158            26,850,142
        Fixed assets                             309,422,832       260,850,925            265,849,224
        Intangible assets                         79,253,414        24,918,879             25,163,400
        Less: Accounts payables                   (2,131,853)       (2,131,853)                      -
               Taxes payable                      (7,793,644)       (7,793,644)            (8,060,549)
               Interest payable                     (624,992)         (624,992)                      -
               Other payables                     (2,945,141)       (2,945,141)            (2,154,361)
               Current portion of
                  non-current
                  liabilities                   (16,021,139)      (16,021,139)           (167,200,821)
               Other current liabilities         (1,132,187)       (1,132,187)                       -

              Long-term borrowings             (137,262,016)     (137,262,016)                      -
              Deferred tax liabilities          (25,726,611)                 -                      -
        Net assets                               267,916,888       190,737,057            179,357,045

        Less: Minority interests               (117,944,272)
        Net assets obtained                      149,972,616




       - 276 -
         GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

         NOTES TO THE FINANCIAL STATEMENTS
         FOR THE YEAR ENDED 31 DECEMBER 2021
         (All amounts in RMB Yuan unless otherwise stated)
         [English translation for reference only]
5        Changes of consolidation scope (Cont’d)

(2)      Business combinations involving enterprises not under common control (Cont’d)

(c)      The assets and liabilities of the acquiree at the acquisition date and 31 December 2020 are as
         follows (Cont’d):

(iii)    Tumxuk

                                                                           Carrying amount      Carrying amount
                                                       Fair value at the   at the acquisition   at 31 December
                                                       acquisition date                 date               2020

         Cash at bank and on hand                          845,203,218         845,203,218            19,184,016
         Accounts receivables                               66,809,696          66,809,696            96,191,373
         Advances to suppliers                              10,591,792          10,591,792            29,081,717
         Other receivables                                  40,690,034          40,690,034          720,294,064
         Inventories                                        30,935,545          30,935,545            36,097,059
         Other current assets                               95,137,882          95,137,882          120,715,928
         Fixed assets                                    2,087,706,041       2,034,678,517        2,149,978,824
         Construction in progress                           16,306,469          16,306,469             2,394,396
         Intangible assets                                  38,042,700          30,351,123            31,035,963
         Long-term prepaid expenses                          2,438,482           2,438,482             3,411,277
         Other non-current assets                              830,790             830,790                     -
         Less: Short-term borrowings                     (326,009,263)       (326,009,263)        (352,000,000)
                Notes payables                                       -                   -          (10,000,000)
                Advances from customers                              -                   -           (1,637,750)
                Accounts payables                        (116,206,193)       (116,206,193)          (43,622,579)
                Contract liabilities                         (829,227)           (829,227)                     -
                Employee benefits payable                    (343,323)           (343,323)           (4,053,616)
                Taxes payable                                (858,673)           (858,673)             (356,897)
                Other payables                           (236,638,250)       (236,638,250)        (830,811,214)
                Current portion of non-current
                   liabilities                            (73,470,899)         (73,470,899)       (120,000,000)
                Long-term borrowings                   (1,500,000,000)      (1,500,000,000)     (1,500,000,000)
                Long-term payables                        (96,819,223)         (96,819,223)        (92,000,000)
                Deferred income                           (12,133,333)         (12,133,333)        (12,729,167)
                Deferred tax liabilities                  (15,179,775)                    -                    -
                Other non-current liabilities                        -                    -             (41,500)
         Net assets                                        856,204,490          810,665,164         241,131,894
         Less: Minority interests                        (175,693,162)
         Net assets obtained                               680,511,328




        - 277 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
5       Changes of consolidation scope (Cont’d)

(2)     Business combinations involving enterprises not under common control (Cont’d)

(d)     Determination of fair value at the acquisition date

(i)     The fair value of the assets and liabilities of the underlying company at the acquisition date are
        determined by the Group using valuation techniques. The valuation method and critical
        assumptions applied are as follows:

        The valuation method used for fixed assets is the replacement cost method.     The valuation of
        an asset is based on the current replacement cost of the asset under valuation minus the value
        of each of its losses, the basic formula for which is an appraised value equals to the full
        replacement cost multiplied by the composite rate of replacement.

        Intangible assets are mainly land use rights and favorable contract, and land use rights are
        mainly assessed by the coefficient modification method of land base price: use the benchmark
        land price set by the local government to correct the coefficients of the transfer period, regional
        factors, individual factors, market transfer and other factors, so as to obtain the land use right
        price of the parcel land; favorable contract are assessed primarily by the discounted cash flow
        method. In order to calculate the present value of future cash flows, management forecasts and
        estimates wind power revenue, wind power costs, operating expenses and applicable discount
        rates in the next several years.




      - 278 -
          GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

          NOTES TO THE FINANCIAL STATEMENTS
          FOR THE YEAR ENDED 31 DECEMBER 2021
          (All amounts in RMB Yuan unless otherwise stated)
          [English translation for reference only]

   5      Changes of consolidation scope (Cont’d)

   (3)    Business combinations involving enterprises under common control

   (a)    Business combinations involving enterprises under common control in the current year


                                                                                     Basis for    Revenue of the      Net loss of the                                             Cash flows from       Net cash flows of
                                                Basis for business                determining    acquiree from 1    acquiree from 1                                           operating activities of        the acquiree
                           Interest        combinations involving                         the    January 2021 to    January 2021 to                                            the acquiree from 1        from 1 January
                          acquired     enterprises under common Combination       combination    the combination    the combination      Revenue of the     Net profit of the January 2021 to the             2021 to the
          Acquiree             (%)                          control   date               date                date               date    acquiree in 2020   acquiree in 2020      combination date       combination date

                                           Both the original parent
                                       company and the Company
                                        are ultimately controlled by         30   Completion
          Sha C                       GEGC prior and subsequent        November     of equity
             Company          51%                to the combination        2021      delivery     1,704,887,278       (283,339,552)       2,434,704,819        458,572,508             311,579,200       (1,239,743,297)
                                           Both the original parent
                                       company and the Company
                                        are ultimately controlled by         30   Completion
                                      GEGC prior and subsequent        November     of equity
          Yunhe Power         90%                to the combination        2021      delivery     1,101,375,696        (79,543,538)       1,030,042,135         60,094,163               88,048,355            9,650,228
                                           Both the original parent
                                       company and the Company
                                        are ultimately controlled by         30   Completion
                                      GEGC prior and subsequent        November     of equity
          Yuehua Power        51%                to the combination        2021      delivery     1,385,633,090       (295,831,752)       1,865,789,353         40,657,830             (31,869,794)        (151,311,605)




- 279 -
          GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

          NOTES TO THE FINANCIAL STATEMENTS
          FOR THE YEAR ENDED 31 DECEMBER 2021
          (All amounts in RMB Yuan unless otherwise stated)
          [English translation for reference only]
   5      Changes of consolidation scope (Cont’d)

   (3)    Business combinations involving enterprises under common control (Cont’d)

   (a)    Business combinations involving enterprises under common control in the current year (Cont’d)

          On 8 October 2021, the Tenth Session of the Board of Directors of the Company reviewed and approved the Proposal on the Acquisition of Equity Interests
          in Guangdong Province Sha C Company Generation Corporation and Other Companies during its 3rd meeting. The Board of Directors agreed that the
          Company acquired, in cash, 51% equity interests in Sha C Company, 90% equity interests in Yunhe Power and 51% equity interests in Yuehua Power,
          which were held by GEGC. Such equity acquisition was reviewed and approved at the Company's 2021 Fourth Extraordinary General Meeting on 25
          October 2021, and the above equity transaction was completed on 30 November 2021.


          These transactions are classified as business combinations involving enterprises under common control as Sha C Company, Yunhe Power and Yuehua
          Power and the Company are controlled by the same ultimate controlling party GEGC prior and subsequent to the combinations.




- 280 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]

5      Changes of consolidation scope (Cont’d)

(3)    Business combinations involving enterprises under common control (Cont’d)

(b)    Cost of combination is listed below:

                                             Sha C         Yunhe Power     Yuehua Power           Total
                                           Company

          Cost of combination
            -Cash
            consideration            1,934,041,438         1,139,513,152    670,047,051   3,743,601,641




      - 281 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
5      Changes of consolidation scope (Cont’d)

(3)    Business combinations involving enterprises under common control (Cont’d)

(c)    The carrying amounts of assets and liabilities of the acquiree at the combination date and 31
       December 2020 are as follows:

(i)    Sha C Company

                                                           Carrying amount at
                                                              the combination       Carrying amount at
                                                                        date        31 December 2020

       Cash at bank and on hand                                 1,820,771,924           3,043,819,331
       Accounts receivables                                       832,843,405             734,136,097
       Advances to suppliers                                           624,856              2,371,354
       Other receivables                                          112,010,511               21,750,082
       Inventories                                                518,147,663             146,614,692
       Other current assets                                       222,579,487              83,079,411
       Investments in other equity instruments                    548,693,945             529,013,225
       Investment properties                                      285,872,170              34,520,200
       Fixed assets                                             2,598,131,821           3,037,738,869
       Construction in progress                                     25,543,317             17,257,466
       Right-of-use assets                                           3,094,002                      —
       Intangible assets                                            86,687,715            133,729,851
       Deferred tax assets                                          62,453,257              3,868,175
       Other non-current assets                                     66,556,787             60,496,004
       Less: Short-term borrowings                              (355,850,990)           (100,106,333)
             Advances from customers                                 (317,461)                      -
             Accounts payables                                (2,030,283,066)           (705,241,337)
             Contract liabilities                                            -              (356,553)
             Employee benefits payable                            (23,568,236)           (10,146,653)
             Taxes payable                                        (82,541,202)           (58,595,545)
             Other payables                                       (57,261,718)          (363,923,482)
             Current portion of non-current
                liabilities                                      (27,856,018)             (70,197,243)
             Other current liabilities                           (57,792,194)                        -
             Long-term borrowings                             (1,354,649,027)          (1,324,124,972)
             Lease liabilities                                   (95,545,900)                       —
             Long-term payables                                             -             (94,160,179)
             Long-term employee benefits
                payable                                            (880,161)                (955,111)
       Net assets                                              3,097,464,887            5,120,587,349
       Less: Minority interests                                (1,538,344,104)          (2,540,843,910)
       Net assets obtained                                       1,559,120,783            2,579,743,439




      - 282 -
        GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

        NOTES TO THE FINANCIAL STATEMENTS
        FOR THE YEAR ENDED 31 DECEMBER 2021
        (All amounts in RMB Yuan unless otherwise stated)
        [English translation for reference only]

5       Changes of consolidation scope (Cont’d)

(3)     Business combinations involving enterprises under common control (Cont’d)

(c)     The carrying amounts of assets and liabilities of the acquiree at the combination date and 31
        December 2020 were as follows: (Cont’d)

(ii)    Yunhe Power

                                                                    Combination        31 December
                                                                           date               2020
                                                                       Carrying            Carrying
                                                                        amount              amount

        Cash at bank and on hand                                       98,041,055         88,170,352
        Accounts receivables                                        148,252,883           99,735,691
        Advances to suppliers                                        10,300,404            3,331,840
        Other receivables                                            98,589,689             4,020,143
        Inventories                                                 209,185,255           63,520,096
        Other current assets                                         10,511,334                    -
        Investment properties                                        46,365,296           46,938,390

        Fixed assets                                              1,199,475,010       1,336,395,314
        Construction in progress                                      11,513,018          6,025,881
        Right-of-use assets                                            1,319,805                   —
        Intangible assets                                           182,119,104          200,890,509
        Deferred tax assets                                           52,862,554          23,981,225
        Less: Short-term borrowings                               (241,103,889)        (100,106,639)
               Notes payables                                     (260,000,000)        (160,000,000)
               Advances from customers                                   (95,328)                  -
               Accounts payables                                  (251,639,786)         (80,668,465)
               Contract liabilities                                    (145,522)                   -
               Employee benefits payable                            (68,133,516)        (18,821,164)
               Taxes payable                                         (6,715,914)        (18,551,449)
               Other payables                                       (13,614,387)        (84,834,711)
               Current portion of
                  non-current liabilities                              (227,323)        (69,290,075)
               Other current liabilities                            (15,162,463)                   -
               Lease liabilities                                     (1,305,354)                   —
               Deferred income                                         (877,660)           (947,115)
               Long-term employee
                  benefits payable                                   (8,025,606)         (6,549,184)
        Net assets                                                1,201,488,659       1,333,240,639
        Less: Minority interests                                    (134,926,331)       (148,102,528)
        Net assets obtained                                         1,066,562,328       1,185,138,111




       - 283 -
         GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

         NOTES TO THE FINANCIAL STATEMENTS
         FOR THE YEAR ENDED 31 DECEMBER 2021
         (All amounts in RMB Yuan unless otherwise stated)
         [English translation for reference only]
5        Changes of consolidation scope (Cont’d)

(3)      Business combinations involving enterprises under common control (Cont’d)

(c)      The carrying amounts of assets and liabilities of the acquiree at the combination date and 31
         December 2020 were as follows: (Cont’d)

(iii)    Yuehua Power

                                                                      Combination        31 December
                                                                              date                2020
                                                                   Carrying amount     Carrying amount

         Cash at bank and on hand                                      366,953,888         515,478,550
         Accounts receivables                                           52,846,692         134,580,923
         Advances to suppliers                                           2,430,174          12,268,427
         Other receivables                                             268,991,439          33,978,813
         Inventories                                                    15,033,629           7,769,568
         Contract assets                                                 2,896,135           2,067,485
         Other current assets                                                    -          46,582,283
         Investments in other equity
           instruments                                                      800,000             800,000
         Long-term equity investments                                     2,105,709           2,101,510
         Fixed assets                                                2,669,321,415       2,827,267,144
         Construction in progress                                        86,016,723          77,751,825
         Right-of-use assets                                                219,860                  —
         Intangible assets                                               38,180,697          40,059,869
         Long-term prepaid expenses                                       1,048,485           1,935,664
         Deferred tax assets                                             50,920,537          30,220,656
         Other non-current assets                                           592,728             811,428
         Less: Short-term borrowings                                   (80,000,000)        (93,800,000)
                 Advances from customers                                          -         (1,493,934)
                 Accounts payables                                   (497,813,841)         (65,155,228)
                 Contract liabilities                                   (6,213,690)                    -
                 Employee benefits payable                             (72,348,034)        (26,680,584)
                 Taxes payable                                         (25,195,339)         (4,951,932)
                 Other payables                                        (10,931,809)      (489,273,126)
                 Current portion of non-current
                   liabilities                                        (64,541,367)          (2,082,667)
                 Other current liabilities                               (253,031)                    -
                 Long-term borrowings
                                                                    (1,550,000,000)     (1,600,000,000)
                Lease liabilities                                         (223,073)                  —
                Deferred income                                        (31,828,284)        (36,058,057)
                Long-term employee benefits
                  payable                                            (156,696,556)         (52,589,265)
                Deferred tax liabilities                                     (761)                (761)
         Net assets                                                  1,062,312,326       1,361,588,591
         Less: Minority interests                                    (521,064,488)       (667,711,033)
         Net assets obtained                                           541,247,838         693,877,558




        - 284 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

6     Interests in other entities

(1)   Interests in subsidiaries

(a)   Constitution of the Group

      Subsidiaries                                                          Major business location   Place of registration     Nature of business     Shareholding (%)                           Acquisition method
                                                                                                                                                         Direct         Indirect

      Maoming Thermal (i)                                                                Maoming                Maoming       Electricity generation    46.54%                -                           Investment
      Jinghai Power                                                                        Jieyang                Jieyang     Electricity generation    65.00%                -                           Investment
      Zhanjiang Wind Power                                                               Zhanjiang              Zhanjiang     Electricity generation          -         70.00%                            Investment
      Guangdong Yudean Anxin Electric Inspection & Installation Co., Ltd.
         (“Anxin Inspection”)                                                         Dongguan                Dongguan      Electricity generation   100.00%                 -                        Investment
      Guangdong Yudean Humen Electric Co., Ltd. (“Humen Electric”)                    Dongguan                Dongguan      Electricity generation    60.00%                 -                        Investment
      Bohe Energy                                                                        Maoming                 Maoming      Electricity generation    67.00%                 -                        Investment
      Zhanjiang Yuheng Power Maintenance Installation Co., Ltd. (“Yuheng                                                                                                           Business combinations involving
         Power”) (Deregistered) (iii)                                                   Zhanjiang              Zhanjiang     Electricity generation          -         76.00%     enterprises under common control
      Xuwen Wind Power                                                                   Zhanjiang              Zhanjiang     Electricity generation          -         70.00%                          Investment
      Guangdong Yudean Huadu Natural Gas Thermal Power Co., Ltd. (“Huadu
         Natural Gas”)                                                                Guangzhou              Guangzhou       Electricity generation    65.00%                 -                          Investment
      Guangdong Yuedian Dapu Power Generation Co., Ltd. (“Dapu Power
         Generation”)                                                                   Meizhou                 Meizhou      Electricity generation   100.00%                -                          Investment
      Leizhou Wind Power                                                                  Leizhou                 Leizhou     Electricity generation          -         94.00%                           Investment
      Dianbai Wind Power                                                                 Maoming                 Maoming      Electricity generation          -        100.00%                           Investment
                                                                                                                                                                                    Business combinations involving
      Zhanjiang Electric                                                                 Zhanjiang              Zhanjiang     Electricity generation    76.00%                 -   enterprises under common control
                                                                                                                                                                                    Business combinations involving
      Yuejia Electric                                                                     Meizhou                 Meizhou     Electricity generation    58.00%                 -   enterprises under common control
                                                                                                                                                                                    Business combinations involving
      Yuejiang Power                                                                    Shaoguan                Shaoguan      Electricity generation    90.00%                 -   enterprises under common control
                                                                                                                                                                                    Business combinations involving
      Zhongyue Energy                                                                   Zhanjiang              Zhanjiang      Electricity generation    90.00%                -    enterprises under common control
      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          -         91.41%                           Investment
                                                                                                                                                                                    Business combinations involving
                                                                                  Lincang, Yunnan                                                                                     enterprises not under common
      Lincang Energy                                                                     Province                 Lincang     Electricity generation   100.00%                 -                              control
                                                                                                                                                                                    Business combinations involving
      Shenzhen Guangqian Electric Co., Ltd. (“Guangqian Electric”)                     Shenzhen               Shenzhen      Electricity generation   100.00%                 -   enterprises under common control
                                                                                                                                                                                    Business combinations involving
      Huizhou Natural Gas                                                                 Huizhou                 Huizhou     Electricity generation    67.00%                 -   enterprises under common control




       - 285 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]
6     Interests in other entities (Cont’d)

(1)   Interests in subsidiaries (Cont’d)

(a)   Constitution of the Group (Cont’d)

      Subsidiaries                                                            Major business location   Place of registration     Nature of business     Shareholding (%)                           Acquisition method
                                                                                                                                                           Direct         Indirect

                                                                                                                                                                                      Business combinations involving
      Pinghai Power (ii)                                                                    Huizhou                 Huizhou     Electricity generation    45.00%                 -   enterprises under common control
                                                                                                                                                                                      Business combinations involving
      Shibeishan Wind Power                                                                  Jieyang                Jieyang     Electricity generation          -         70.00%     enterprises under common control
                                                                                                                                                                                      Business combinations involving
      Red Bay Power                                                                         Shanwei                Shanwei      Electricity generation    65.00%                 -   enterprises under common control
                                                                                                                                                                                      Business combinations involving
                                                                                                                                                                                        enterprises not under common
      Guangdong Wind Power                                                               Guangzhou              Guangzhou       Electricity generation   100.00%                 -                              control
                                                                                     Huaihua, Hunan
      Tongdao Company                                                                      Province                 Huaihua     Electricity generation          -        100.00%                          Investment
      Pingyuan Wind Power                                                                  Meizhou                  Meizhou     Electricity generation          -        100.00%                          Investment
      Guangdong Yudean Heping Wind Power Co., Ltd. (“Heping Wind Power”)                  Heyuan                  Heyuan      Electricity generation          -        100.00%                          Investment
                                                                                                                                                                                      Business combinations involving
                                                                                                                                                                                       enterprises not under common
      Huilai Wind Power                                                                      Jieyang                Jieyang     Electricity generation          -         89.83%                               control
      Guangdong Yuejiang Hongrui Power Technology Development Co., Ltd.
          (“Hongrui Technology”)                                                        Shaoguan               Shaoguan       Electricity generation          -         90.00%                            Investment
      Yongan Natural Gas                                                                   Zhaoqing               Zhaoqing      Electricity generation    90.00%                -                           Investment
                                                                                                              Xupu County,
                                                                                     Huaihua, Hunan         Huaihua, Hunan
      Xupu Yuefeng                                                                         Province               Province      Electricity generation          -        100.00%                            Investment
                                                                                                          Wuxuan, Guangxi
                                                                                    Guangxi Zhuang      Zhuang Autonomous
      Wuxuan Yuefeng                                                             Autonomous Region                  Region      Electricity generation          -        100.00%                            Investment
      Huizhou Pingdian Comprehensive Energy Co., Ltd. (“Pingdian
          Comprehensive”)                                                                  Huizhou                 Huizhou     Electricity generation          -         45.00%                            Investment
      Zhuhai Wind Power                                                                      Zhuhai                  Zhuhai     Electricity generation          -         85.91%                            Investment
      Guangdong Yudean Zhencheng Comprehensive Energy Co., Ltd.
          (“Zhencheng Comprehensive”) (Deregistered) (iv)                                Maoming                 Maoming      Electricity generation          -         37.23%                            Investment
      Guangdong Yudean Binhai Bay Energy Co., Ltd. (“Binhai Bay Company”)               Dongguan                Dongguan      Electricity generation   100.00%                -                           Investment
      Guangdong Yuedian Daya Bay Integrated Energy Co., Ltd. (“Daya Bay
          Company”)                                                                        Huizhou                Huizhou      Electricity generation    80.00%                 -                        Investment
      Guangdong Yuedian Qiming Energy Co., Ltd. (“Qiming Company”)                       Shenzhen               Shenzhen      Electricity generation   100.00%                 -                        Investment
                                                                                                                                                                                      Business combinations involving
                                                                                                                                                                                       enterprises not under common
      Huaguoquan Company                                                                  Shenzhen                Shenzhen                     Leases    100.00%                -                              control
      Nanxiong New Energy                                                                 Shaoguan                Shaoguan      Electricity generation          -        100.00%                          Investment
      Dananhai Company                                                                      Jieyang                 Jieyang     Electricity generation   100.00%                -                         Investment
      Baihua Company                                                                       Huizhou                 Huizhou      Electricity generation   100.00%                -                         Investment




       - 286 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]
6     Interests in other entities (Cont’d)

(1)   Interests in subsidiaries (Cont’d)

(a)   Constitution of the Group (Cont’d)

      Subsidiaries                                 Major business location   Place of registration      Nature of business       Shareholding (%)                                Acquisition method
                                                                                                                                 Direct              Indirect

      Bijie New Energy                                               Bijie                  Bijie     Electricity generation   100.00%                     -                             Investment
      Qingzhou Offshore Wind Power                              Yangjiang              Yangjiang      Electricity generation          -             100.00%                              Investment
      Wanhaowei New Energy                                      Zhanjiang              Zhanjiang      Electricity generation          -             100.00%                              Investment
      Wanchuang Hengwei New Energy                              Zhanjiang              Zhanjiang      Electricity generation          -             100.00%                              Investment
                                                                                                                                                                     Business combinations involving
      Nanhua New Energy                                         Zhanjiang              Zhanjiang      Electricity generation          -              51.00%     enterprises not under common control
                                                                                                                                                                     Business combinations involving
      Datang New Energy                                       Guangzhou              Guangzhou        Electricity generation          -              51.00%     enterprises not under common control
                                                                                                                                                                     Business combinations involving
      Yueneng Wind Power                                        Zhanjiang              Zhanjiang      Electricity generation          -              51.00%     enterprises not under common control
                                                                                                                                                                     Business combinations involving
      Tumxuk                                                      Tumxuk                 Tumxuk       Electricity generation    79.48%                      -   enterprises not under common control
                                                                                                                                                                     Business combinations involving
      Sha C Company                                           Guangzhou              Guangzhou        Electricity generation    51.00%                      -       enterprises under common control
                                                                                                                                                                     Business combinations involving
      Guanghe Power                                           Guangzhou              Guangzhou        Electricity generation          -              51.00%         enterprises under common control
                                                                                                                                                                     Business combinations involving
      Biomass Power Generation                                  Zhanjiang              Zhanjiang      Electricity generation          -              51.00%         enterprises under common control
                                                                                                                                                                     Business combinations involving
      Xinhui Power (v)                                          Jiangmen               Jiangmen       Electricity generation          -              45.90%         enterprises under common control
                                                                                                                                                                     Business combinations involving
      Huaqing Power (v)                                         Jiangmen               Jiangmen       Electricity generation          -              33.15%         enterprises under common control
                                                                                                                                                                     Business combinations involving
      Yunhe Power                                                   Yunfu                  Yunfu      Electricity generation    90.00%                      -       enterprises under common control
                                                                                                                                                                     Business combinations involving
      Yundian Energy                                                Yunfu                  Yunfu      Electricity generation          -              56.25%         enterprises under common control
                                                                                                                                                                     Business combinations involving
      Yuehua Power                                            Guangzhou              Guangzhou        Electricity generation    51.00%                      -       enterprises under common control
                                                                                                                                                                     Business combinations involving
      Yuehua Integrated Energy                                Guangzhou              Guangzhou        Electricity generation          -              51.00%         enterprises under common control
                                                                                                                                                                     Business combinations involving
      Guangdian Petroleum Store & Transport                   Guangzhou              Guangzhou Storage and transportation             -              51.00%         enterprises under common control
                                                                                                                                                                     Business combinations involving
      Huangpu Power Engineering                               Guangzhou              Guangzhou        Electricity generation          -              51.00%         enterprises under common control
                                                                                                                                                                     Business combinations involving
      Huangdian Training Centre                               Guangzhou              Guangzhou                     Training           -              51.00%         enterprises under common control
                                                                                                                                                                     Business combinations involving
      Huishen Power Engineering (v)                           Guangzhou              Guangzhou        Electricity generation          -              35.70%         enterprises under common control




       - 287 -
        GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

        NOTES TO THE FINANCIAL STATEMENTS
        FOR THE YEAR ENDED 31 DECEMBER 2021
        (All amounts in RMB Yuan unless otherwise stated)
        [English translation for reference only]
6       Interests in other entities (Cont’d)

(1)     Interests in subsidiaries (Cont’d)

(a)     Constitution of the Group (Cont’d)

(i)     On 30 November 2018, Maoming Thermal merged Guangdong Energy Maoming Thermal Power Station Co., Ltd., wholly-owned by GEGC. After the merger,
        GEGC held 30.12% equity of Maoming Thermal. According to the agreement between the Company and GEGC, the delegated shareholder and director from
        GEGC maintain consensus with those of the Company while exercising the voting rights during the shareholders’ meeting and the Board of Directors’ meeting
        at Maoming Thermal. Therefore, the Company owns control power over Maoming Thermal.

(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.

(iii)   Zhanjiang Electric, a subsidiary of the Company, held a shareholders' meeting on 26 October 2021, and passed the Proposal of the Shareholders' Meeting
        on Liquidation and Cancellation of Zhanjiang Yuheng Power Maintenance Installation Co., Ltd., and decided to complete the liquidation and cancellation of
        Yuheng Power, a wholly-owned subsidiary of Zhanjiang Electric, by the end of 2021. The liquidation and cancellation of Yuheng Power will correspondingly
        change the scope of the Company's consolidated financial statements. However, it will not have a significant impact on the Company's existing business
        and operating results, and will not harm the interests of the Company and its shareholders. As at 31 December 2021, the liquidation and cancellation of
        Yuheng Power had been completed.

(iv)    On 30 June 2021, the shareholder’s meeting passed the resolution to liquidate and cancel Zhencheng Comprehensive, a subsidiary of the Company. The
        liquidation and cancellation of Zhencheng Comprehensive will correspondingly change the scope of the Company's consolidated financial statements.
        However, it will not have a significant impact on the Company's existing business and operating results, and will not harm the interests of the Company and
        its shareholders. As at 31 December 2021, the liquidation and cancellation of Zhencheng Comprehensive had been completed.

(v)     Xinhui Power and Huaqing Power are non-wholly-owned subsidiaries of Sha C Company, with shareholding ratios of 90% and 65%, respectively. Suishen
        Power Engineering is a non-wholly-owned subsidiary of Yuehua Power Generation, with shareholding ratios of 90% and 65% respectively. 70%. The
        Company indirectly controls these companies by controlling Sha C Company and Yuehua Power Generation.




         - 288 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]
6     Interests in other entities (Cont’d)

(1)   Interests in subsidiaries (Cont’d)

(b)   Subsidiaries with significant minority interests

                                                 Shareholding of minority Gains or losses attributable to   Dividends distributed to   Minority interests as at 31
      Subsidiaries                                     shareholders (%) minority shareholders in 2021 minority shareholders in 2021               December 2021

      Bohe Energy                                                33.00%                   (6,904,469)                            -                1,364,425,786
      Zhanjiang Electric                                         24.00%                  (72,981,664)                   23,197,930                  889,192,304
      Jinghai Power                                              35.00%                 (178,274,662)                  151,318,844                1,044,024,158
      Red Bay Power                                              35.00%                 (170,973,504)                   96,734,416                  952,273,720
      Huizhou Natural Gas                                        33.00%                    27,971,776                  211,037,669                  651,922,558
      Pinghai Power                                              55.00%                    16,774,811                  174,021,767                1,040,046,376
      Sha C Company                                             49.00%                 (278,322,276)                   861,242,583                1,463,151,208

(i)   Dividends distributed to minority shareholders in 2021 had all been paid off in the current year.




       - 289 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]
6     Interests in other entities (Cont’d)

(1)   Interests in subsidiaries (Cont’d)

(b)   Subsidiaries with significant minority interests (Cont'd)

      Major financial information of material non-wholly-owned subsidiaries of the Group is listed below:

                                                                   31 December 2021                                                                                            31 December 2020
                                               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

      Bohe Energy           2,609,681,761    6,892,655,462    9,502,337,223      3,008,450,314   2,359,263,315     5,367,713,629         767,050,262    9,643,376,566   10,410,426,828      3,764,791,895   2,490,088,705     6,254,880,600
      Zhanjiang Electric    2,650,321,842    1,266,988,373    3,917,310,215        183,009,639      29,332,641       212,342,280       3,046,263,179    1,262,920,735    4,309,183,914        175,539,000      21,203,440       196,742,440
      Jinghai Power         1,526,571,272    6,829,232,837    8,355,804,109      4,033,650,563   1,339,227,380     5,372,877,943       1,169,487,442    6,990,897,776    8,160,385,218      2,449,512,187   1,786,251,133     4,235,763,320
      Red Bay Power         1,409,063,788    5,053,935,838    6,462,999,626      3,167,753,333     574,464,236     3,742,217,569         972,859,321    5,062,032,390    6,034,891,711      1,796,971,724     752,258,158     2,549,229,882
      Huizhou Natural Gas     339,090,166    2,930,623,382    3,269,713,548        726,965,377     567,225,268     1,294,190,645         710,651,111    3,115,192,544    3,825,843,655        635,175,623     660,400,000     1,295,575,623
      Pinghai Power         1,588,057,850    3,411,190,163    4,999,248,013      1,230,761,702   1,877,492,900     3,108,254,602       1,254,897,337    3,768,541,657    5,023,438,994      1,570,145,027   1,276,397,000     2,846,542,027
      Sha C Company         2,916,866,925    3,999,456,043    6,916,322,968      2,657,111,340   1,273,188,755     3,930,300,095       4,031,770,967    3,816,623,790    7,848,394,757      1,308,567,146   1,419,240,262     2,727,807,408

                                                                           2021                                                                                                        2020
                                                                                  Total comprehensive          Cash flows from                                                                Total comprehensive         Cash flows from
                                        Revenue              Net (loss)/profit                income         operating activities                  Revenue              Net (loss)/profit                 income        operating activities

      Bohe Energy                  2,782,274,837               (20,922,634)              (20,922,634)                437,918,482                190,228,324              (210,939,996)              (210,939,996)                 1,028,367
      Zhanjiang Electric           2,244,415,610              (304,090,266)             (310,815,500)              (404,758,842)              1,697,051,516                198,651,363                198,651,363               380,388,728
      Jinghai Power                6,657,485,630              (509,356,177)             (509,356,177)                334,454,084              4,860,526,733                480,377,283                480,377,283             1,227,452,922
      Red Bay Power                5,009,175,976              (488,495,726)             (488,495,726)              (442,766,950)              3,655,108,574                307,093,385                307,093,385               852,369,607
      Huizhou Natural Gas          3,639,314,264                 84,762,958                84,762,958                559,716,915              3,928,517,091                710,564,542                710,564,542               964,252,990
      Pinghai Power                4,877,581,551                 30,499,657                30,499,657                344,245,399              3,243,260,761                458,659,788                458,659,788               601,318,982
      Sha C Company                1,999,829,883              (568,004,644)             (407,654,995)                 48,454,458              2,434,704,819                458,572,508                458,572,508               723,397,079




       - 290 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

6     Interests in other entities (Cont’d)

(2)   Interests in joint ventures and associates

(a)   Basic information of significant joint ventures and associates

                                      Major                                      Whether strategic
                                   business       Place of                         to the Group's
                                    location   registration Nature of business           activities   Shareholding (%)
                                                                                                         Direct        Indirect

      Joint ventures -
                                Guangzhou, Guangzhou,
        Industry Fuel           Guangdong Guangdong               Fuel trading                 Yes      50.00%                -
      Associates -
        Shanxi Yudean             Taiyuan,        Taiyuan,  Mining, power
           Energy                   Shanxi         Shanxi      generation                      Yes      40.00%                -
        Energy Group            Guangzhou,     Guangzhou,
           Finance Company      Guangdong      Guangdong         Finance                       Yes      40.00%                -
                                  Taishan,       Taishan,
         Taishan Electric       Guangdong      Guangdong Power generation                      Yes      20.00%                -
         Energy Financial       Guangzhou,     Guangzhou,
            Leasing Company     Guangdong      Guangdong   Finance leases                      Yes      25.00%                -

      The equity investments are accounted for using the equity method by the Group.

(b)   Summarised financial information of significant joint ventures

                                                                        31 December 2021                 31 December 2020
                                                                             Industry Fuel                    Industry Fuel

      Current assets                                                         8,607,437,424                    3,394,974,695
      Non-current assets                                                     3,981,342,190                      919,752,240
      Total assets                                                          12,588,779,614                    4,314,726,935

      Current liabilities                                                    9,741,803,372                    2,677,965,708
      Non-current liabilities                                                1,169,197,748                      505,894,435
      Total liabilities                                                     10,911,001,120                    3,183,860,143

      Minority interests                                                        67,010,551                       67,010,550
      Attributable to shareholders of the parent company                     1,610,767,943                    1,063,856,242

      Shares of net assets in proportion to shareholding
        (i)                                                                      805,383,972                     531,928,121
      Adjustments - Unrealised profits from intra-group
        transactions                                                         (159,913,458)                          (614,728)

      Carrying amount of equity investment in joint
        ventures                                                                 645,470,514                     531,313,393

      Revenue                                                               40,287,196,338                   17,245,296,639
      Net profit                                                               230,410,999                      148,992,812
        Including: Attributable to the parent company                          230,410,999                      148,992,812
      Other comprehensive income                                                15,800,500                                -
        Including: Attributable to the parent company                           15,800,500                                -
      Total comprehensive income                                               246,211,499                      148,992,812

      Dividends received from joint ventures by the Group
        for the current year                                                      29,649,898                      69,090,435




       - 291 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

6     Interests in other entities (Cont’d)

(2)   Interests in joint ventures and associates (Cont’d)

(b)   Summarised financial information of significant joint ventures (Cont’d)

(i)   Share of asset is calculated according to shareholding based on the amount attributable to the parent
      company in the consolidated financial statements of joint ventures. The amount in the consolidated
      financial statements of joint ventures considers the impacts of fair value of identifiable assets and
      liabilities of joint ventures at the time of acquisition and the unification of accounting policies. The assets
      involved in the transactions between the Group and joint ventures do not constitute a business.

(c)   Summarised financial information of significant associates

                                                  31 December 2021                     31 December 2020
                                                                   Energy                                  Energy
                                                                 Financial                               Financial
                                         Shanxi Yudean            Leasing      Shanxi Yudean              Leasing
                                                Energy           Company              Energy             Company

      Current assets                      1,074,073,055         632,968,295       359,511,675         913,688,722
      Non-current assets                  6,627,921,355       7,281,003,242     4,862,121,461       4,333,088,521
      Total assets                        7,701,994,410       7,913,971,537     5,221,633,136       5,246,777,243

      Current liabilities                   493,070,520       1,840,650,722       272,974,916       1,457,308,158
      Non-current liabilities             1,230,741,592       3,944,093,673       394,482,950       1,699,534,931
      Total liabilities                   1,723,812,112       5,784,744,395       667,457,866       3,156,843,089

      Minority interests                      70,239,165                  -         6,344,280                      -
      Attributable to
         shareholders of the
         parent company                   5,907,943,133       2,129,227,142     4,547,830,990       2,089,934,154
                                                      -                   -
      Share of net assets
        based on
        shareholding (i)                  2,363,177,253        532,306,787      1,819,132,396         522,483,539

      Carrying amount of equity
        investment in associates          2,363,177,253        532,306,787      1,819,132,396         522,483,539
                                                      -
      Revenue                               100,199,753        259,494,775          8,899,732           17,960,469
      Investment income                   1,229,294,936          1,540,565        506,171,897           (2,005,462)
      Net profit/(loss)                   1,200,222,015         89,599,668        487,328,469             3,904,742
         Including: Attributable
        to the parent company             1,200,112,143         89,599,668        487,322,126            3,904,742
      Other comprehensive
      income                                              -               -                   -                    -
         Including: Attributable
        to the parent company                             -               -                   -                    -
      Total comprehensive
      income                              1,200,222,015         89,599,668        487,328,469            3,904,742
                                                                                                                 -
      Dividends received from
        associates by the Group
        for the current year                              -     12,576,669         20,000,000                      -




       - 292 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
6      Interests in other entities (Cont’d)

(2)    Interests in joint ventures and associates (Cont’d)

(c)    Summarised financial information of significant associates (Cont’d)

                                                  31 December 2021                        31 December 2020
                                              Energy Group                           Energy Group
                                          Finance Company     Taishan Electric   Finance Company      Taishan Electric

       Current assets                        7,694,411,383      2,930,161,081       4,029,448,613       1,394,060,235
       Non-current assets                   17,101,010,480      9,406,287,125      16,237,010,014      10,151,763,274
       Total assets                         24,795,421,863     12,336,448,206      20,266,458,627      11,545,823,509

       Current liabilities                  20,630,423,850      3,414,107,776      16,186,047,689       2,099,513,156
       Non-current liabilities                  31,373,853                  -          24,771,788                   -
       Total liabilities                    20,661,797,703      3,414,107,776      16,210,819,477       2,099,513,156

       Minority interests                                 -                  -                   -          1,177,413
       Attributable to shareholders of
          the parent company                 4,133,624,160      8,922,340,430       4,055,639,150       9,445,132,940
                                                                            -
       Share of net assets based on
         shareholding (i) (ii)               1,653,449,664      1,784,468,086       1,622,255,660       1,889,026,588
       Adjustments
          - Goodwill                            13,325,000                   -         13,325,000                    -

       Carrying amount of equity
         investment in associates
         (ii)                                1,666,774,664      1,784,468,086       1,635,580,660       1,889,026,588

       Revenue                                 752,537,763     10,287,027,972         692,417,185       6,349,201,814
       Net profit/(loss)                       364,396,199        (17,047,790)        359,629,301         398,456,650
         Including: Attributable to the
                          parent
                          company              364,396,199        (17,047,790)        359,629,301         398,026,651
       Other comprehensive income               19,273,714                   -         74,315,364           (388,346)
         Including: Attributable to the
                         parent
                         company                19,273,714                   -         74,315,364           (271,842)
       Total comprehensive income              383,669,913        (17,047,790)        433,944,665         398,068,304

       Dividends received from
          associates by the Group
          for the current year                 122,273,962        101,148,944          73,161,903         275,880,313



(i)    Share of asset is calculated in proportion to the shareholding based on the amount
       attributable to the parent company in the consolidated financial statements of associates.
       The amount in the consolidated financial statements of associates considers the impacts of
       fair value of identifiable assets and liabilities of associates at the time of acquisition and the
       unification of accounting policies. The assets involved in the transactions between the Group
       and associates do not constitute a business.

(ii)   In 2021, the Group's shareholding in the Energy Group Finance Company increased from
       25% to 40% as a result of business combinations involving enterprises under common
       control, thus restating the shares of net assets in proportion to shareholding and the carrying
       amount of the equity investment in the associates in 2020.




         - 293 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]
6     Interests in other entities (Cont’d)

(2)   Interests in joint ventures and associates (Cont’d)

(d)   Summarised information of insignificant associates

                                                                       2021                          2020
                                                                                               (Restated)

      Joint ventures:

      Aggregated carrying amount of investments                   9,350,000                              -
      Aggregate of the following items in
        proportion
      Net loss (i)                                                          -                            -
      Other comprehensive income(i)                                         -                            -
      Total comprehensive income                                            -                            -

      Associates:

      Aggregated carrying amount of investments              1,070,661,046                  900,196,546
      Aggregate of the following items in
        proportion
      Net loss (i)                                              (18,173,212)               (204,526,900)
      Other comprehensive income(i)                                (332,152)                 (1,616,625)
      Total comprehensive income                                (18,505,364)               (206,143,525)

(i)   The net loss and other comprehensive income have taken into account the impacts of both the fair
      value of the identifiable assets and liabilities upon the acquisition of investment at the time of
      acquisition and the unification of accounting policies.

7     Segment information

      As the Group's operating income and expenses, assets and liabilities are primarily associated with
      sale of electric power and other related products, the Group's management, taking the sale of
      electric power as a whole business, periodically obtains accounting information relating to financial
      status, operating results and cash flow for assessment. Therefore, there is only the electric power
      segment in the Group.

      The Group’s revenue from main operations derives from the development and operation of electric
      plants in China and all assets are within China.

      In 2021, the revenue earned by the Group’s power plants from Southern Power Grid Company
      amounted to RMB 43,278,023,920 (2020: RMB 32,810,398,651), which took up 97.99% of the
      Group’s operating income (2020: 97.64%).




       - 294 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

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, construction of power
      GEGC                Guangzhou                                                plant and sale of electricity

      The ultimate holding party of the Company is State-owned Assets Supervision And Administration
      Commission of the People's Government of Guangdong Province.

(b)   Registered capital and changes in registered capital of the parent company

                                      31 December         Increase in the   Decrease in the      31 December
                                             2020            current year      current year             2021

      GEGC                          23,000,000,000                      -                   -   23,000,000,000

(c)   The percentage of shareholding and voting rights in the Company held by the parent company

                                            31 December 2021                        31 December 2020
                                        Shareholding   Voting rights            Shareholding   Voting rights
                                                 (%)             (%)                     (%)             (%)

      GEGC                                    67.39%             67.39%               67.39%            67.39%

(2)   Information of subsidiaries

      The general information and other related information of the subsidiaries are set out in Note
      6(1)(a).

(3)   Information of joint ventures and associates

      Apart from material joint ventures and associates disclosed in Note 6, other joint ventures and
      associates that involved in related party transactions with the Group are listed as follows:

      Name of entity                                                               Relationship with the Group

      GEG Property Insurance                                                                         Associate
      Yudean Shipping                                                                                Associate
      Yunfu B                                                                                        Associate




       - 295 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (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

                                                                             Relationship with the Group

      Guangdong Energy Group Shajiao C Power Plant (“Shajiao C”)                 Controlled by GEGC
      Guangdong Zhuhai Jinwan Power Co., Ltd. (“Zhuhai Jinwan Electric”)         Controlled by GEGC
      Guangdong Yudean Property Management Co., Ltd. (“Yudean PM”)               Controlled by GEGC
      Guangdong Yudean Information Technology Co., Ltd. (“Yudean
         Technology”)                                                             Controlled by GEGC
      Guangdong Yudean Property Investment Co., Ltd. (“Yudean PI”)               Controlled by GEGC
      Guangdong Yudean Environmental Protection Co., Ltd. (“Yudean
         Environmental”)                                                          Controlled by GEGC
      Guangdong Yudean Environmental Protection Materials Co., Ltd.
         (“Environmental Protection Materials”)                                  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 Energy Group Natural Gas Co., Ltd. (“Guangdong Energy
         Natural Gas”)                                                            Controlled by GEGC
      Zhuhai Special Economic Zone Guangzhu Power Generation Co., Ltd.
         (“Guangzhu Power”)                                                      Controlled by GEGC
      Guangdong Energy Group Co., Ltd., Zhuhai Power Plant (“Zhuhai
         Power”)                                                                  Controlled by GEGC
      Inner Mongolia Yudean Menghua New Energy Co., Ltd. (“Menghua
         New Energy”)                                                             Controlled by GEGC




       - 296 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (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

(a)   Purchase and sale of goods, and rendering and receiving of service

      Purchase of goods and receiving of services:

                                          Type of related party     Pricing policies of related
      Related parties                               transaction             party transactions             2021             2020
                                                                                                                       (Restated)

      Industry Fuel                              Purchase of fuel            Agreement price      29,734,481,375   11,393,268,770
      Guangdong Energy Natural
        Gas                                   Purchase of fuel               Agreement price       3,732,802,782    3,405,356,446
      Yudean Environmental               Purchase of materials               Agreement price         156,679,116      166,385,504
      Environmental Protection
        Materials                       Purchase of materials                Agreement price         64,389,931                 -
                                         Receipt of insurance
      GEG Property Insurance                          services               Agreement price         59,136,449       50,174,026
      Yudean Shipping                  Receipt of tug services               Agreement price         24,226,415       25,154,340
                                          Receipt of property
      Yudean PM                                       services               Agreement price         23,959,792       34,811,439
      Port of Yangjiang                Receipt of tug services               Agreement price         16,431,191        1,479,405
                                          Purchase of carbon
                                   emission quota and receipt
      Others                                       of services               Agreement price          19,876,271       23,439,370
                                                                                                  33,831,983,322   15,100,069,300

      Sale of goods and rendering of services:

                                          Type of related party     Pricing policies of related
      Related parties                               transaction             party transactions             2021             2020
                                                                                                                       (Restated)

                                        Revenue from sale of
      Yudean Environmental                         by-products               Agreement price        340,736,159      301,499,704
                                     Provision of maintenance
      Shajiao C                            and repair services               Agreement price         39,394,206       40,896,696
                                     Provision of maintenance
      Zhongshan Thermal                    and repair services               Agreement price         14,057,773         8,936,678
      Environmental Protection          Revenue from sale of
        Materials                                  by-products               Agreement price         12,305,470          391,184
                                     Provision of maintenance
      Zhuhai Power                         and repair services               Agreement price         10,799,140       14,398,394
      Others                             Provision of services               Agreement price         24,419,684       27,611,047
                                                                                                    441,712,432      393,733,703




       - 297 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (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                                                               2021            2020
                                                                                               (Restated)

      Guangzhu Power                                                         130,127,530      122,451,327
      Zhuhai Jinwan
        Electric                                                             121,954,252      117,292,035
      Zhongshan
        Thermal                                                               96,302,800       85,318,584
      Yuelong Power                                                           31,152,000       27,212,389
      Yunfu B                                                                 16,203,000       24,406,903
      Others                                                                           -          144,243
                                                                             395,739,582      376,825,481

      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

      Right-of-use assets increased in the current year with the Group as the lessee:

      Name of the                                             Type of the
       lessor                                               leased asset            2021            2020

      Energy Financial                                         Lease of
       Leasing                                            machinery and
       Company                                               equipment      4,496,403,656             —
      Others                                              Housing rental        3,673,203             —
                                                                            4,500,076,859             —

      Interest costs on lease liabilities in the current year with the Group as the lessee:

                                                                                     2021           2020

      Energy Financial
       Leasing
       Company                                                                152,418,557             —
      Others                                                                      383,203             —
                                                                              152,801,760             —




       - 298 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (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)   Guarantees

      The Group as the guarantor

                                    Guaranteed                                          Whether the guarantee
      Guaranteed party                 amount             Starting date   Maturity date has been fulfilled or not

      GEGC (i)                   1,649,894,414             03/12/2019      15/09/2043                         No

(i)   In order to perform the Loan Agreement for the Guangdong Yudean Yangjiang Shapa offshore
      wind power project signed between the People's Republic of China (“PRC”) and New Development
      Bank (“NDB”) (“Loan Agreement with NDB”) on 3 December 2019, Project Agreement signed
      between NDB and People’s Government of Guangdong Province (“provincial government”)
      (“Project Agreement with NDB”), Loan Transfer Agreement signed between the Ministry of Finance
      and the provincial government (“Loan Transfer Agreement with the Ministry of Finance”) and Loan
      Transfer Agreement signed between the Department of Finance of Guangdong Province and
      GEGC (“Loan Transfer Agreement with the Department of Finance of Guangdong Province”),
      Yangjiang Wind Power signed Loan Transfer Agreement with GEGC (Loan Transfer Agreement
      with GEGC) in 2020, specifying that GEGC shall transfer loans of RMB 2,000,000,000 (“Project
      Loan”) to Yangjiang Wind Power; meanwhile, the Company signed a joint liability guarantee
      contract with GEGC, specifying that the Company provides joint liability guarantee for all liabilities
      of Yangjiang Wind Power under the Loan Transfer Agreement with GEGC on behalf of GEGC to
      the Department of Finance of Guangdong Province from 3 December 2019 to 15 September 2043,
      and the guarantee scope includes but not limited to principal and interest. As at 31 December
      2021, Yangjiang Wind Power borrowed pledged loan of RMB 1,649,894,414 from NDB.

      The above Project Loan was transferred to the provincial government by the Ministry of Finance
      under the country’s authorisation according to the same loan conditions, then transferred to GEGC
      by the Department of Finance of Guangdong Province under the provincial government’s
      authorisation, and finally transferred to Yangjiang Wind Power by GEGC. The above Project Loan
      was actually provided in entrusted payment. The cash would not flow through the bank accounts of
      the Ministry of Finance, Department of Finance of Guangdong Province and GEGC, and Yangjiang
      Wind Power, the actual debtor of the Project Loan, directly withdrew and repaid the loan through
      its account of NDB. The Project Loan was guaranteed by the Company for GEGC, and actually the
      Company provided guarantee for the Project Loan obtained by Yangjiang Wind Power from NDB.
      Therefore, after consulting the Company’s legal adviser, management considered that joint liability
      guarantee provided by the Group for GEGC would not constitute GEGC’s occupation of the
      Group’s funds.




       - 299 -
        GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

        NOTES TO THE FINANCIAL STATEMENTS
        FOR THE YEAR ENDED 31 DECEMBER 2021
        (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

(i)     According to the 2021 Framework Agreement on Financial Services between the Company and
        Energy Group Finance Company, Energy Group Finance Company is committed to offering the
        Group a credit line of no more than RMB 33,000,000,000 in 2021. In 2021, the Group borrowed a
        total of RMB 11,491,375,497 (2020: RMB 10,180,730,830) from Energy Group Finance Company
        based on actual capital requirement. The Group paid an interest of RMB 343,902,443 (2020: RMB
        347,738,192) for such borrowings (Note 8(5)(h) for details).

(ii)    In 2021, the net decrease of the Group’s deposits in Energy Group Finance Company was RMB
        1,918,648,394 (2020: a net increase of RMB 719,000,785), and the net decrease of the Group’s
        other cash balances deposited in Energy Group Finance Company was RMB 592,681 (2020: a net
        increase of RMB 592,681). Interest due from Energy Group Finance Company amounted to RMB
        126,350,608 (2020: RMB 93,386,968) (Note 8(5)(g)). In light of the frequent deposits and
        withdrawals, the Group only disclosed the amount of net change in deposits.

(iii)   According to the three-party agreement signed among the Group, Energy Group Finance Company
        and Industry Fuel, the amount of the notes issued to Industry Fuel by the Group and discounted
        with Energy Group Finance Company represents the amount payable to Energy Group Finance
        Company. Given the frequent transactions, only the net change of the balance of commercial
        acceptance notes discounted with Energy Group Finance Company as at 31 December is
        disclosed. As at 31 December 2021, the net amount of Energy Group Finance Company’s
        discounting of acceptance notes issued by the Group to Industry Fuel increased by RMB
        37,007,454. In 2021, the discounting interest charged by Energy Group Finance Company and
        borne by the Group which was included in the discounting interest expenses in the current year
        amounted to RMB 20,074,125 (2020: RMB 29,018,674)(Note 8(5)(h)).

(iv)    Based on the Framework Agreement on Financial Lease between the Company and Energy
        Finance Leasing Company in 2021, Energy Finance Leasing Company is committed to offering the
        Group a credit line of no more than RMB 10 billion, which is reusable during the one-year
        agreement period. In 2021, the new lease liabilities incurred in the transaction between the Group
        and Energy Finance Leasing Company were RMB 1,271,198,318 (2020: RMB 1,000,444,757), and
        the finance lease payment was RMB 175,247,298 (2020: RMB 145,120,068).




         - 300 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (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)

(f)   Allocation of common expenses

      The Company’s branches Shajiao A Power Plant and Shajiao C agreed to share common
      expenses based on their agreed allocation percentage. In 2021, the common expenses received
      by the Group from Shajiao C was RMB 5,580,411 (2020: RMB 4,296,622).

(g)   Interest income

                                Type of related party
      Related parties                     transaction             2021                      2020
                                                                                       (Restated)

      Energy Group
       Finance Company            Interest on deposits      126,350,608              93,386,968

(h)   Interest costs

                                Type of related party
      Related parties                     transaction             2021                      2020
                                                                                       (Restated)

      Energy Group                         Interest on
       Finance Company                    borrowings        343,902,443             347,738,192
      Energy Group                     Notes discount
       Finance Company                        charges        20,074,125              29,018,674
                                                            363,976,568             376,756,866

      In 2021, the loans provided by Energy Group Finance Company to the Group carried an annual
      interest rate from 2.70% to 4.90% (2020: from 3.05% to 4.41%).

(i)   Interest payments

                                Type of related party
      Related parties                     transaction              2021                     2020
                                                                                       (Restated)

      Energy Financial                  Finance lease
       Leasing Company                        interest      152,418,557             122,392,935




       - 301 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (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)

 (j)   In 2021, in order to optimise the Company's asset structure and promote high-quality development,
       Bohe Energy, a subsidiary of the Group, disposed of the terminal assets to Industry Fuel at a
       transaction price of RMB 2,800,327,000 (excluding tax).

       As at 31 December 2021, receivables of terminal asset restructuring from Bohe Energy amounted
       to RMB 1,602,258,185, and RMB 1,600,910,823 had been recovered in March 2022. The
       remaining unrecovered amount is the property insurance taken out on behalf of the policyholder,
       which is expected to be recovered in 2022.

 (k)   Joint investment

       As at 31 December 2021, subsidiaries, joint ventures and associates jointly invested by the Group
       and GEGC were listed below:

                                                              Percentage of equity attributable to GEGC

       Maoming Thermal                                                                          30.12%
       Bohe Energy                                                                              33.00%
       Sha C Company                                                                            49.00%
       Guanghe Power                                                                            49.00%
       Biomass Power Generation                                                                 49.00%
       Xinhui Power                                                                             44.10%
       Huaqing Power                                                                            31.85%
       Energy Group Finance Company                                                             60.00%
       Industry Fuel                                                                            50.00%
       Shanxi Yudean Energy                                                                     60.00%
       GEG Property Insurance                                                                   51.00%
       Energy Financial Leasing Company                                                         50.00%
       Yudean Shipping                                                                          45.00%
       Yueqian Power                                                                            17.48%

(l)    Remuneration of key management

                                                                      2021                        2020
                                                                                             (Restated)

       Remuneration of key management                             5,677,057                   5,314,399




        - 302 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (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 2021    31 December 2020
                                                                                     (Restated)

      Cash at bank and on    Energy Group Finance
        hand – Cash at bank   Company                       6,468,820,757       8,387,469,151

      Cash at bank and on
        hand – Other cash        Energy Group Finance
        balances                    Company                       6,000,000          6,592,681

      Cash at bank and on
        hand – Interest          Energy Group Finance
        receivable                  Company                      39,533,620                   -

      Accounts receivables        Shajiao C                       8,500,800          8,344,661
                                  Zhuhai Power                    6,820,689          9,440,854
                                  Yudean New Energy               5,272,364          5,134,919
                                  Others                         11,643,227          5,189,953
                                                                 32,237,080         28,110,387

      Contract assets             Shajiao C                       3,132,201            331,627
                                  Others                             56,083          1,326,638
                                                                  3,188,284          1,658,265

                                                          31 December 2021    31 December 2020
                                                                                     (Restated)

      Other receivables           Industry Fuel              1,602,258,185                    -
                                  Energy Financial
                                    Leasing
                                    Company                   129,864,979                     -
                                  Yudean
                                    Environmental               76,772,719          77,122,953
                                  Others                         8,113,032          50,349,405
                                                             1,817,008,915         127,472,358

      Advances to suppliers Industry Fuel                      481,701,342         566,884,836
                            Others                               3,707,618           4,163,826
                                                               485,408,960         571,048,662

      Other non-current
        assets                    Yudean Technology                250,000             700,000

      As at 31 December 2021 and 31 December 2020, the Group made no provision for bad debts of
      receivables from related parties.




       - 303 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (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:

                                                          31 December 2021       31 December 2020
                                                                                        (Restated)

      Notes            Energy Group Finance
        payables        Company                                    866,000,000        780,000,000

      Accounts
        payables       Industry Fuel                        4,251,347,098           2,032,026,571
                       GEGC                                 1,101,296,490             472,060,383
                       Guangdong Energy Natural
                         Gas                                  390,755,352            151,765,125
                       Yudean Environmental                    35,115,820             44,446,507
                       Environmental Protection
                        Materials                                  24,316,381                   -
                       Others                                       3,511,517           3,983,376
                                                             5,806,342,658          2,704,281,962

      Contract
        liabilities    GEGC                                        2,606,132           1,419,811

      Other
        payables       GEGC                                 2,501,436,910                  5,000
                       Energy Financial Leasing
                        Company                                42,722,792                      -
                       Menghua New Energy                       5,276,682                      -
                       Others                                   6,780,239             25,101,873
                                                            2,556,216,623              25,106,873

      Lease            Energy Financial Leasing
        liabilities     Company                              3,801,408,039                     —




       - 304 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (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 2021      31 December 2020
                                                                                        (Restated)

      Short-term
         borrowings

      Energy Group
         Finance Company
           - Principal                                         4,977,136,729         4,683,000,000
           - Interest                                              3,142,408             5,026,812
                                                               4,980,279,137         4,688,026,812

      Current portion of
         non-current
         liabilities

      Energy Group
         Finance Company
           - Principal                                             191,911,238        301,049,280
           - Interest                                                6,612,663          5,090,349
      GEGC
           - Principal                                              82,000,000                  -
           - Interest                                                  368,958                  -
                                                                   280,892,859        306,139,629

      Energy Financial
         Leasing Company                                            33,630,163          11,337,912

      Long-term borrowings

      Energy Group
         Finance Company
           - Principal                                        4,175,122,351          3,732,790,825
      GEGC
           - Principal                                          268,000,000                      -
                                                              4,443,122,351          3,732,790,825

                                                           31 December 2021      31 December 2020
                                                                                        (Restated)

                               Energy Financial
      Long-term payables          Leasing Company                            -       2,643,768,496




        - 305 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (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

      The commitments in relation to related parties contracted for by the Group but not yet necessary to be
      recognised on the balance sheet as at the balance sheet date are as follows:

      Leases

                                                            31 December 2021            31 December 2020
                                                                                               (Restated)

      - As lessee
                                Yudean PI                                    —                 36,129,730
                                Yudean PM                                    —                  1,256,363
                                                                             —                 37,386,093

9     Contingencies

(1)   As at 31 December 2021, the Company provided joint guarantee for bank borrowings amounting to
      RMB 41,470,000 for Yunnan Baoshan Binlangjiang Hydroelectricity Development Co., Ltd., of which
      the liability relief procedure is being handled.

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 2021           31 December 2020
                                                                                            (Restated)

      Buildings and power generation equipment              23,518,696,981              15,365,182,246

      The above capital commitments will be primarily used for the construction of new electric plants and
      the purchase of new generator units.




       - 306 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

10    Commitments (Cont’d)

(2)   Investment commitments

(a)   The Ninth Session of the Board approved the Proposal of Capital Increase in Guangdong Province
      Wind Power Generation Co., Ltd. during its 14th meeting on 26 August 2020. The Board gave
      permission to the Company’s wholly-owned subsidiary Guangdong Wind Power for the acquisition
      of 100% equity of Dacheng County Dun‘An New Energy Co., Ltd. in the form of pre-acquisition in
      principle. The total investments in the acquisition should be no more than RMB 800,000,000. The
      deposit for the equity acquisition amounted to RMB 80,000,000, which was paid by the Company
      for Guangdong Wind Power in the form of capital injection. In 2020, the Company injected RMB
      80,000,000 to Guangdong Wind Power, and Guangdong Wind Power had paid the deposit of RMB
      80,000,000 for the equity acquisition.

(b)   The Tenth Session of the Board approved the Proposal on the Participation in the Initiation and
      Establishment of A Provincial Futures Company during its meeting on 2 August 2021. The Board
      gave permission to the Company’s participation in the initiation and establishment of Guangdong
      Utrust Futures Co., Ltd. with self-owned fund of RMB 400 million at the shareholding proportion of
      20% and signing of the Initiator Agreement and Articles of Association of the provincial futures
      company. It also agreed the Company’s first capital contribution of RMB 10 million at the
      shareholding proportion of 20% with one month after the reply on preparation of the provincial
      futures company was issued by the China Securities Regulatory Commission, and the Company’s
      contribution of the remaining capital of RMB 390 million within the term as required by the China
      Securities Regulatory Commission, which would depend on the notice from the provincial futures
      company’s preparation team or the announcement of the China Securities Regulatory
      Commission. In 2021, no capital injection was made.

11    Operating lease proceeds after the balance sheet date

      As the lessor, the Group’s undiscounted lease proceeds receivable after the balance sheet date are
      as follows:

                                                                                     31 December 2021

      Within 1 year                                                                          43,244,349
      1 to 2 years                                                                           32,229,710
      2 to 3 years                                                                           19,313,219
      3 to 4 years                                                                            7,076,799
      4 to 5 years                                                                            6,751,880
      Over 5 years                                                                            4,198,003
                                                                                            112,813,960




       - 307 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]
12    Financial instrument and risk

      The Group's activities expose it to a variety of financial risks: market risk (primarily including foreign
      exchange risk and interest rate risk), credit risk and liquidity risk. The Group's overall risk
      management programme focuses on the unpredictability of financial markets and seeks to minimise
      potential adverse effects on the Group's financial performance.

(1)   Market risk

(a)   Foreign exchange risk

      The Group’s major operational activities are carried out in Mainland China and a majority of the
      transactions are denominated in RMB. The Group is exposed to foreign exchange risk arising from
      the recognised assets and liabilities, and future transactions denominated in foreign currencies,
      primarily with respect to USD. The Group’s finance department at its headquarters is responsible for
      monitoring the amount of assets and liabilities, and transactions denominated in foreign currencies
      to minimise the foreign exchange risk. Therefore, the Group may consider taking proper measures
      to mitigate the foreign exchange risk as appropriate. During 2021 and 2020, the Group did not enter
      into any forward exchange contracts or currency swap contracts.

      As at 31 December 2021 and 31 December 2020, the carrying amounts in RMB equivalent of the
      Group’s assets and liabilities denominated in foreign currencies were summarised below:

                                                                    31 December 2021
                                                          USD            EUR             HKD               Total

      Financial assets denominated in
        foreign currency -
        Cash at bank and on hand                      220,713                -            592           221,305

      Financial liabilities denominated in
        foreign currency -
        Long-term borrowings                       44,506,676                -               -       44,506,676
        Current portion of non-current
           liabilities                              6,542,011                -               -        6,542,011
                                                   51,048,687                -               -       51,048,687

                                                                31 December 2020 (Restated)
                                                          USD            EUR             HKD               Total

      Financial assets denominated in
        foreign currency -
        Cash at bank and on hand                      225,856                -         84,676           310,532

      Financial liabilities denominated in
        foreign currency -
        Long-term borrowings                       52,012,914                -               -       52,012,914
        Current portion of non-current
           liabilities                              6,809,614        1,089,727               -        7,899,341
                                                   58,822,528        1,089,727               -       59,912,255

      As at 31 December 2021, if the RMB had strengthened/weakened by 10% against the USD while all
      other variables had been held constant, the Group’s net profit would have been approximately RMB
      3,812,098 (31 December 2020: approximately RMB 4,411,596) higher/lower for various financial
      assets and liabilities denominated in USD, whose recording currency was RMB.

      As at 31 December 2021, as the Group’s financial assets and liabilities denominated in other foreign
      currencies were not significant, the changes in exchange rate of other foreign currencies had no
      significant influence on the Group.



       - 308 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]
12    Financial instrument and risk (Cont’d)

(1)   Market risk (Cont’d)

(b)   Interest rate risk

      The Group’s interest rate risk mainly arises from interest bearing borrowings including bank
      borrowings, debentures payable and long-term payables. Financial liabilities issued at floating rates
      expose the Group to cash flow interest rate risk. Financial liabilities issued at fixed rates expose the
      Group to fair value interest rate risk. The Group determines the relative proportions of its fixed rate
      and floating rate contracts depending on the prevailing market conditions.

      The Group continuously monitors its interest rate position. Increases in interest rates will increase
      the cost of new borrowing and the interest expenses with respect to the Group’s outstanding
      floating rate borrowings, and therefore could have a material adverse effect on the Group’s financial
      performance. The Group makes adjustments timely with reference to the latest market conditions
      and may enter into interest rate swap agreements to mitigate its exposure to interest rate risk.
      During 2021 and 2020, the Group did not enter into any interest rate swap agreements.

      The Group’s interest bearing debts were mainly bank borrowings, debentures payable and
      long-term payables with fixed and floating interest rates, and the amounts of respective interest are
      as follows:

                                                            31 December 2021             31 December 2020
                                                                                                (Restated)

      Short-term borrowings
       - Fixed interest rate                                     9,242,146,729                1,904,100,000
       - Floating interest rate                                  3,107,000,000                6,004,570,202
                                                                12,349,146,729                7,908,670,202

                                                            31 December 2021             31 December 2020
                                                                                                (Restated)

      Long-term borrowings and current portion of
        long-term borrowings
        - Floating interest rate                                31,587,611,645               23,405,459,944




       - 309 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]
12    Financial instrument and risk (Cont’d)

(1)   Market risk (Cont’d)

(b)   Interest rate risk (Cont'd)

                                                           31 December 2021            31 December 2020
                                                                                              (Restated)

      Debentures payable and debentures payable
       due within one year
       - Fixed interest rate                                    8,693,083,422               2,998,243,652

                                                           31 December 2021            31 December 2020
                                                                                              (Restated)

      Long-term payables and current portion of
        long-term payables
        - Fixed interest rate                                      24,960,000                 114,960,000
        - Floating interest rate                                   96,819,223               3,414,107,685
                                                                  121,779,223               3,529,067,685

                                                           31 December 2021            31 December 2020
                                                                                              (Restated)

      Lease liabilities and current portion of lease
        liabilities
        - Fixed interest rate                                     52,036,473                             —
        - Floating interest rate                               5,546,994,736                             —
                                                                5,599,031,209                            —

      As at 31 December 2021, the Group’s fixed interest bearing borrowings amounted to RMB
      18,012,226,624 and floating interest bearing borrowings amounted to RMB 40,338,425,604 (31
      December 2020: fixed interest bearing borrowings of RMB 5,017,303,652, floating rate bearing
      borrowings of RMB 32,824,137,831).

      As at 31 December 2021, if interest rates on the floating rate borrowings had risen/fallen by 10 basis
      points while all other variables had been held constant, the Group’s interest costs would have
      increased/decreased by approximately RMB 40,345,191 (31 December 2020: approximately RMB
      32,824,138).




       - 310 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]
12    Financial instrument and risk (Cont’d)

(2)   Credit risk

      Credit risk of the Group mainly arises from cash at bank and on hand, accounts receivables,
      contract assets, other receivables, long-term receivables, etc. The carrying amount of the Group’s
      financial assets reflects its maximum credit exposure on the balance sheet date.

      The Group expects that there is no significant credit risk associated with cash at bank and on hand
      since they are deposited at Energy Group Finance Company, state-owned banks and other
      medium or large size listed banks with good reputation and high credit rating. The Group does not
      expect that there will be significant losses from non-performance by the counterparty.

      In addition, the Group has policies to limit the credit exposure on accounts receivables, contract
      assets, other receivables and long-term receivables. The Group assesses the credit quality of and
      sets credit limits on its customers by taking into account their financial position, the availability of
      guarantee from third parties, their credit history and other factors such as current market
      conditions. The credit history of the customers is regularly monitored by the Group. In respect of
      customers with a poor credit history, the Group will use written payment reminders, or shorten or
      cancel credit periods, to ensure the overall credit risk of the Group is limited to a controllable
      extent.

      As at 31 December 2021, the Group had no significant collateral or other credit enhancements
      held as a result of the debtor's mortgage (31 December 2020: Nil).




       - 311 -
            GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

            NOTES TO THE FINANCIAL STATEMENTS
            FOR THE YEAR ENDED 31 DECEMBER 2021
            (All amounts in RMB Yuan unless otherwise stated)
            [English translation for reference only]

      12    Financial instrument and risk (Cont’d)

      (3)   Liquidity risk

            Cash flow forecasting is performed by each subsidiary of the Group and aggregated by the Group’s finance department in its headquarters. The Group’s
            finance department at its headquarters monitors rolling forecasts of the Group's short-term and long-term liquidity requirements to ensure it has sufficient
            cash and securities that are readily convertible to cash to meet operational needs, while maintaining sufficient headroom on its undrawn committed
            borrowing facilities from major financial institutions so that the Group does not breach borrowing limits or covenants on any of its borrowing facilities to
            meet the short-term and long-term liquidity requirements.

            The financial liabilities of the Group at the balance sheet date are analysed by their maturity date below at their undiscounted contractual cash flows:

                                                                                            31 December 2021
                                                                                                                                                     Carrying amount
                                                           Within 1 year     1 to 2 years        2 to 5 years      Over 5 years                Total on balance sheet

            Short-term borrowings                       12,562,159,932                  -                   -                   -   12,562,159,932     12,360,296,429
            Notes payables                               1,908,780,000                  -                   -                   -    1,908,780,000      1,908,780,000
            Accounts payables                            6,626,567,064                  -                   -                   -    6,626,567,064      6,626,567,064
            Other payables                              10,569,763,778                  -                   -                   -   10,569,763,778     10,569,763,778
            Other current liabilities                    1,981,058,957                  -                   -                   -    1,981,058,957      1,658,449,006
            Current portion of non-current
               liabilities                               4,045,277,512                 -                   -                  -      4,045,277,512      3,697,619,753
            Long-term borrowings                         1,255,490,613     2,864,007,167       9,130,610,877     24,125,559,315     37,375,667,972     28,940,577,856
            Debentures payable                             259,130,000       459,051,484       8,954,652,878                  -      9,672,834,362      8,693,083,422
            Lease liabilities                                        -       581,556,623       1,310,762,376      3,969,525,034      5,861,844,033      4,728,167,142
            Long-term payables (excluding
               payables for specific projects)                       -                 -                   -         96,819,223         96,819,223         96,819,223
                                                        39,208,227,856     3,904,615,274      19,396,026,131     28,191,903,572     90,700,772,833     79,280,123,673




- 312 -
            GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

            NOTES TO THE FINANCIAL STATEMENTS
            FOR THE YEAR ENDED 31 DECEMBER 2021
            (All amounts in RMB Yuan unless otherwise stated)
            [English translation for reference only]

      12    Financial instrument and risk (Cont’d)

      (3)   Liquidity risk (Cont’d)

                                                                                     31 December 2020 (Restated)
                                                                                                                                                     Carrying amount
                                                           Within 1 year     1 to 2 years      2 to 5 years         Over 5 years               Total on balance sheet

            Short-term borrowings                        7,965,109,917                  -                 -                     -     7,965,109,917      7,916,440,888
            Notes payables                               1,252,292,546                  -                 -                     -     1,252,292,546      1,252,292,546
            Accounts payables                            3,400,384,808                  -                 -                     -     3,400,384,808      3,400,384,808
            Other payables                               7,814,572,869                  -                 -                     -     7,814,572,869      7,814,572,869
            Other current liabilities                    3,233,432,752                  -                 -                     -     3,233,432,752      3,217,523,576
            Current portion of non-current
              liabilities                                3,623,068,929                 -                 -                    -      3,623,068,929       3,322,121,935
            Long-term borrowings                           916,888,015     2,305,767,192     6,894,083,716       17,765,369,269     27,882,108,192      21,922,680,540
            Debentures payable                              36,750,000        36,750,000     1,587,791,667                    -      1,661,291,667       1,499,542,911
            Long-term payables (excluding
              payables for specific projects)                        -       638,514,120     1,401,964,107        1,361,383,052      3,401,861,279       3,241,171,306
                                                        28,242,499,836     2,981,031,312     9,883,839,490       19,126,752,321     60,234,122,959      53,586,731,379

            The Group’s available financing credit lines under agreement with the financial institutions as at balance sheet date are as follows:

                                                                                                              31 December 2021                       31 December 2020
                                                                                                                                                            (Restated)

            Available financing credit lines under agreement with the financing
             institutions                                                                                       36,078,452,111                         49,672,680,096




- 313 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

12    Financial instrument and risk (Cont’d)

(3)   Liquidity risk (Cont’d)

      As stated in Note 2(1) to the financial statements, as at 31 December 2021, certain subsidiaries of
      the Group had non-compliance matters. Due to such non-compliance matters, relevant banks and
      other financial institutions have the right to require such subsidiaries to repay all the principal and
      interest of relevant borrowings in advance. The balance of the principal and interest of such borrowings
      as at 31 December 2021 amounted to RMB 3,568,583,282, including the principal and interest of the
      short-term borrowing of RMB 2,020,441,166, the principal and interest of non-current liabilities due
      within one year of RMB 216,102,245 and the principal of the long-term borrowings with original
      contractual maturity dates after 31 December 2022 and lease liabilities of RMB 1,332,039,871. The
      long-term borrowing and lease liabilities of RMB 1,332,039,871 have been presented in the financial
      statements for the current year as the current portion of non-current liabilities. As at the issue date of
      these financial statements, these subsidiaries had obtained the exemptions of most banks from
      non-compliance matters.

13    Fair value estimates

      The level in which fair value measurement is categorised is determined by the level of the fair value
      hierarchy of the lowest level input that is significant to the entire fair value measurement:

      Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

      Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or
      liability, either directly or indirectly.

      Level 3: Unobservable inputs for the asset or liability.

(1)   Assets measured at fair value on a non-recurring basis

      As at 31 December 2021, the assets measured at fair value on a recurring basis by the above three
      levels were analysed below:

                                                          Level 1    Level 2           Level 3             Total

      Investments in other equity
         instruments -
         Other equity instruments                 547,728,682               -   2,684,300,000      3,232,028,682

      As at 31 December 2020, the assets measured at fair value on a recurring basis by the above three
      levels were analysed below:

                                                          Level 1    Level 2           Level 3             Total

      Investments in other equity
         instruments -
         Other equity instruments                 393,587,145               -   3,155,300,870      3,548,888,015




       - 314 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (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 (Cont’d)

      The Group takes the date on which events causing the transfers between the levels take place as the
      timing specific for recognising the transfers. There is no transfer among Level 1, Level 2 and Level 3 for
      the current year.

      The fair value of financial instruments traded in an active market is determined at the quoted market
      price; and the fair value of those not traded in an active market is determined by the Group using
      valuation techniques. The Group adopt such valuation models as cash flow discounting model and
      comparable company in the market to evaluate the fair value of the other equity instrument of Level 3
      financial assets. The Group adopts average price to book value ratio (PB) and discounts for lack of
      marketability (DLOM) as major unobservable inputs for SCG, adopts average price to earnings ratio
      (PE), PB and DLOM as major unobservable inputs for Sunshine Insurance.

      The changes in Level 3 financial assets are analysed below:

                                                                                             Gains
                                                                                      recognised in
                                                                    Decrease in               other
                                                    31 December      the current    comprehensive           31 December
                                                            2020           year            income                  2021
                                                       (Restated)

      Investments in other equity
         instruments -
           Other equity instruments                3,155,300,870    (70,500,870)     (400,500,000)         2,684,300,000

(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 accounts receivables, other
      receivables, long-term receivables, short-term borrowings, payables, lease liabilities, long-term
      borrowings, debentures payable and long-term payables.

      The carrying amount of the financial assets and liabilities not measured at fair value is a reasonable
      approximation of their fair value.

14    Capital management

      The Group’s capital management policies aim to safeguard the Group’s ability to continue as a going
      concern in order to provide returns for shareholders and benefits for other stakeholders, and to maintain
      an optimal capital structure to reduce the cost of capital.

      The Group's total capital is calculated as ‘shareholders’ equity’ as shown in the consolidated balance
      sheet. The Group is not subject to external mandatory capital requirements, and monitors capital on the
      basis of gearing ratio.

      As at 31 December 2021 and 31 December 2020, the Group's gearing ratio was as follows:

                                                                31 December 2021                      31 December 2020
                                                                                                             (Restated)

      Gearing ratio                                                        71.34%                               56.14%




       - 315 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]

15    Notes to the Company’s financial statements

(1)   Accounts receivables

                                                              31 December 2021             31 December 2020

      Accounts receivables                                          192,707,778                 173,029,247
      Less: Provision for bad debts                                           -                           -
                                                                    192,707,778                 173,029,247

(a)   The ageing of accounts receivables is analysed as follows:

                                                              31 December 2021             31 December 2020

      Within 1 year                                                 192,707,778                 173,029,247

(b)   As at 31 December 2021, the five largest amounts of accounts receivables aggregated by debtors
      were summarised and analysed as follows:

                                                                        Provision for bad
                                                             Balance                debts % of total balance

      Total balance of the five largest
        accounts receivables                              192,707,778                  -              100%

(c)   Provision for bad debts

      For accounts receivables, the Company recognises the lifetime ECL regardless of whether there
      exists a significant financing component.

      From 1 January 2020, the Company’s recognition standards and accrual methods for provision for
      bad debts of accounts receivables are detailed in Note 2(9).

(i)   As at 31 December 2021, provision for bad debts made on a collective basis for accounts
      receivables was analysed as follows:

      Group 1

      As at 31 December 2021, the Company’s receivables from sale of electricity amounted to RMB
      192,707,778, which mainly comprised receivables from Southern Power Grid Company.
      Considering the favourable credit history of Southern Power Grid Company, the Company held that
      there was no significant credit risk arising from receivables from sale of electricity. Since the
      possibility of material losses due to the default by Southern Power Grid Company was extremely
      low, the ECL for the receivables from sale of electricity was 0%.

      As at 31 December 2021, there was no accounts receivables categorised in Group 2 and 3.




       - 316 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (All amounts in RMB Yuan unless otherwise stated)
       [English translation for reference only]
15     Notes to the Company’s financial statements (Cont’d)

(1)    Accounts receivables (Cont’d)

(c)    Provision for bad debts (Cont'd)

(ii)   In 2021, the Company did not make any provision for bad debts of accounts receivables (2020:
       Nil), and there was no provision for bad debts of accounts receivables written off in the current year
       (2020: Nil).

(2)    Other receivables

                                                            31 December 2021              31 December 2020

       Capacity receivable                                         252,000,000                            -
       Entrusted loans receivable                                  100,000,000                  240,000,000
       Supplementary medical insurance fund
          receivable                                                39,346,861                   34,393,478
       Receivables from sale of by-products                         13,723,340                    9,318,678
       Advances receivable                                           2,250,884                    3,136,509
       Interest receivable                                             887,856                    1,038,206
       Dividends receivable                                                  -                   31,500,000
       Others                                                        7,933,062                    9,047,525
                                                                   416,142,003                  328,434,396

       Less: Provision for bad debts                                  (151,437)                   (209,539)
                                                                   415,990,566                  328,224,857

(a)    The ageing of other receivables is analysed as follows:

                                                            31 December 2021              31 December 2020

       Within 1 year                                               412,826,194                   309,724,263
       1 to 2 years                                                  1,889,053                     1,846,749
       2 to 3 years                                                    229,312                    16,743,677
       Over 3 years                                                  1,197,444                       119,707
                                                                   416,142,003                   328,434,396




        - 317 -
          GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

          NOTES TO THE FINANCIAL STATEMENTS
          FOR THE YEAR ENDED 31 DECEMBER 2021
          (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)

   (b)    Loss provision and changes in book balance

                                                                           Stage 1                                            Stage 3
                                                                                                                       Lifetime ECL (credit
                                              12-month ECL (group)        12-month ECL (individual)      Sub-total           impaired)            Total
                                                            Provision                     Provision                                 Provision    Provision
                                                   Book       for bad             Book       for bad   Provision for       Book        for bad     for bad
                                                balance         debts          balance         debts     bad debts      balance          debts       debts

          31 December 2020                     5,180,504      (209,539)     323,253,892            -     (209,539)             -             -   (209,539)
            Increase in the
              current year                     3,057,850      (129,968)     378,161,461            -     (129,968)             -             -   (129,968)
            Reversal in the
              current year                   (5,679,762)        188,070   (287,831,942)            -       188,070             -             -     188,070
          31 December 2021                     2,558,592      (151,437)     413,583,411            -     (151,437)             -             -   (151,437)




- 318 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (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)

(b)   Loss provision and changes in book balance (Cont’d)

      As at 31 December 2021 and 31 December 2020, the Company did not have other receivables in
      Stage 2 or Stage 3. Other receivables at Stage 1 were analysed below:

(i)   As at 31 December 2021, other receivables at Stage 1 with provision for bad debts on individual basis
      were analysed as follows:

                                                                  Provision
                                        Book          12-month      for bad
                                      balance         ECL rates       debts                                       Reason

                                                                                     The counterparty is the Company’s
                                                                                 subsidiary with a historical loss rate of
      Entrusted loans                                                                   0%; therefore, the risk of ECL is
        receivable               100,000,000              0.00%           -                                extremely low.
                                                                                  The counterparty is Taikang Pension,
                                                                                which provides custody services to the
      Supplementary medical                                                         Company’s supplementary medical
        insurance fund                                                             insurance fund; therefore, the risk of
        receivable                39,346,861              0.00%           -                         ECL is extremely low.
                                                                              The counterparty is a related party, with a
      Receivables from                                                         historical loss rate of 0% ; therefore, the
        related parties          274,236,550              0.00%           -                 risk of ECL is extremely low.
                                 413,583,411                              -

      As at 31 December 2020, other receivables at Stage 1 with provision for bad debts on individual basis
      were analysed as follows:

                                                                  Provision
                                        Book         12-month       for bad
                                      balance        ECL rates        debts                                       Reason

                                                                                      The counterparty is the Company’s
                                                                                  subsidiary with a historical loss rate of
      Entrusted loans                                                                    0%; therefore, the risk of ECL is
        receivable               240,000,000              0.00%           -                                  extremely low.
                                                                                   The counterparty is Taikang Pension,
                                                                                  which provides custody services to the
      Supplementary medical                                                          Company’s supplementary medical
        insurance fund                                                        insurance fund; therefore, the risk of ECL
        receivable                34,393,478              0.00%           -                               is extremely low.
                                                                               The counterparty has good credit, with a
                                                                                 historical loss rate of 0%; therefore, the
      Dividends receivable        31,500,000              0.00%           -                   risk of ECL is extremely low.
                                                                              The counterparty is a related party, with a
      Receivables from                                                          historical loss rate of 0% ; therefore, the
        related parties           17,360,414              0.00%           -                   risk of ECL is extremely low.
                                 323,253,892                              -




       - 319 -
       GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

       NOTES TO THE FINANCIAL STATEMENTS
       FOR THE YEAR ENDED 31 DECEMBER 2021
       (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)

(b)    Loss provision and changes in book balance (Cont’d)

(ii)   As at 31 December 2021, other receivables at Stage 1 with provision for bad debts on the collective
       basis were are analysed as follows:

                                                                       31 December 2021
                                                    Book balance                    Loss provision
                                                             Amount               Amount         Provision ratio

       Group 1
         Within 1 year                                     2,029,378               (16,388)              0.81%
         1 to 2 years                                        437,961               (43,796)             10.00%
         Over 3 years                                         91,253               (91,253)            100.00%
                                                           2,558,592              (151,437)              5.92%

       As at 31 December 2020, other receivables at Stage 1 with provision for bad debts on the collective
       basis were are analysed as follows:

                                                                       31 December 2020
                                                    Book balance                    Loss provision
                                                             Amount               Amount         Provision ratio

       Group 1
         Within 1 year                                     4,827,746               (48,276)              1.00%
         1 to 2 years                                        141,798               (14,180)             10.00%
         2 to 3 years                                         91,253               (27,376)             30.00%
         Over 3 years                                        119,707              (119,707)            100.00%
                                                           5,180,504              (209,539)              4.04%




        - 320 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (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)   In 2021, the amount of provision for bad debts of other receivables was RMB 129,968 (2020: RMB
      87,720), and the amount of reversed provision for bad debts of other receivables in the current year was
      RMB 188,070 (2020: RMB 29,346), with corresponding book balance of RMB 5,679,762 (2020: RMB
      2,934,574). There was no provision for bad debts of other receivables written off (2020: Nil).

(d)   As at 31 December 2021, the five largest amounts of other receivables aggregated by debtors were
      analysed as follows:

                                                                                              % of total   Provision for
                                                     Nature      Balance         Ageing        balance       bad debts

                                                                                Within 1
      Bohe Energy                Capacity receivable          252,000,000          year        60.56%                  -
                                    Entrusted loans                             Within 1
      Yuejiang Power                      receivable           50,000,000          year        12.02%                  -
                                    Entrusted loans                             Within 1
      Lincang Energy                      receivable           50,000,000          year        12.02%                  -
                             Supplementary medical                              Within 3
      Taikang Pension      insurance fund receivable           39,346,861         years          9.46%                 -
                            Receivables from sale of                            Within 1
      Yudean Environmental              by-products            13,723,340          year         3.30%                  -
                                                              405,070,201                      97.34%                  -

(3)   Long-term equity investments

                                                                     31 December 2021             31 December 2020

      Subsidiaries (a)                                                      30,519,715,049             23,169,002,222
      Joint ventures (b)                                                       804,769,245                531,313,393
      Associates (c)                                                         6,659,945,716              6,197,179,173

      Less: Long-term equity investments - provision for
              impairment of subsidiary (a)                              (1,348,124,079)               (1,348,124,079)
            Long-term equity investments - provision for
               impairment of associates (c)                                    (96,327,854)               (96,327,854)
                                                                            36,539,978,077             28,453,042,855




       - 321 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (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

                                                                                       Provision                      Ending balance            Declared cash
                                31 December            Increase in    Decrease in             for    31 December       of provision for   dividends during the
                                       2020           investments     investments    impairment             2021     impairment loss                      year

      Zhanjiang
         Electric              2,185,334,400                     -               -              -    2,185,334,400                 -              73,460,111
      Yuejia Electric                      -                     -               -              -                -     (455,584,267)                       -
      Maoming
      Thermal                    687,458,978                     -               -              -      687,458,978                    -                    -
      Jinghai Power            1,930,395,668                     -               -              -    1,930,395,668                    -          281,020,711
      Zhanjiang Wind
         Power                   242,277,000                     -   (242,277,000)              -                -                    -           26,630,068
      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                 -               6,761,650
      Bohe Energy              3,167,000,000                     -               -              -    3,167,000,000                 -                       -
      Pinghai Power              720,311,347                     -               -              -      720,311,347                 -             142,381,445
      Red Bay Power            2,220,023,386                     -               -              -    2,220,023,386                 -             179,649,630
      Huizhou Natural
         Gas                   1,205,199,446                     -               -              -    1,205,199,446                    -          428,470,419
      Guangqian
         Electric              1,353,153,223                    -                -              -    1,353,153,223                 -             292,698,656
      Yuejiang Power             892,850,119          208,353,880                -              -    1,101,203,999     (408,494,674)                       -
      Huadu Natural
         Gas                     186,550,000                     -               -              -      186,550,000                    -                      -
      Dapu Electric            1,040,000,000                     -               -              -    1,040,000,000                    -                      -
      Sub-total for next
         page                16,816,745,983           208,353,880    (242,277,000)              -   16,782,822,863   (1,138,134,640)           1,431,072,690


      - 322 -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]




- 323 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (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)

                                                                                                                                Ending balance of
                                                             Increase in      Decrease in    Provision for                           provision for   Declared cash dividends
                              31 December 2020              investments       investments     impairment     31 December 2021     impairment loss             during the year

      Subtotal brought
          forward                16,816,745,983            208,353,880      (242,277,000)                -     16,782,822,863    (1,138,134,640)              1,431,072,690
      Guangdong Wind
          Power                   2,325,301,260           4,547,255,000                  -               -      6,872,556,260                  -                          -
      Leizhou Wind Power             80,800,000              11,141,250       (91,941,250)               -                  -                  -                  7,346,827
      Qujie Wind Power            1,279,750,000             600,000,000    (1,879,750,000)               -                  -                  -                174,150,270
      Power Sales                   230,000,000                       -                  -               -        230,000,000                  -                 19,820,688
      Lincang Energy                281,000,000                       -                  -               -        281,000,000      (209,989,439)                          -
      Yongan Natural Gas             90,000,000              90,000,000                  -               -        180,000,000                  -                          -
      Tongdao Company                60,000,000              40,000,000      (100,000,000)               -                  -                  -                          -
      Binhai Bay Company            570,000,000              50,000,000                  -               -        620,000,000                  -                          -
      Daya Bay Company               17,600,000             128,000,000                  -               -        145,600,000                  -                          -
      Qiming                         20,000,000                       -                  -               -         20,000,000                  -                          -
      Huaguoquan
          Company                    49,680,900                       -                  -               -         49,680,900                  -                          -
      Dananhai Company                        -              15,000,000                  -               -         15,000,000                  -                          -
      Baihua Company                          -               3,000,000                  -               -          3,000,000                  -                          -
      Sha C Company                           -           1,559,120,782                  -               -      1,559,120,782                  -                          -
      Yunhe Power                             -           1,066,562,327                  -               -      1,066,562,327                  -                          -
      Yuehua Power                            -             541,247,838                  -               -        541,247,838                  -                          -
      Bijie New Energy                        -               5,000,000                  -               -          5,000,000                  -                          -
      Tumxuk                                  -             800,000,000                  -               -        800,000,000                  -                          -
      Total                      21,820,878,143           9,664,681,077    (2,313,968,250)               -     29,171,590,970    (1,348,124,079)              1,632,390,475


      Relevant information of the Company’s subsidiaries is set out in Note 6.




      - 324 -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (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)

(b)   Joint ventures

                                                                         Movements for the current year
                                                                              Share of net   Share of other                                                      Ending balance of
                                                     Increase in        profit/(loss) under comprehensive            Cash dividends                                   provision for
                         31 December 2020           investments            equity method            income                 declared      31 December 2021          impairment loss

      Industry Fuel            531,313,393         180,000,000               115,205,500               7,900,250        (29,649,898)             804,769,245                        -

(c)   Associates

                                                                                   Movements for the current year
                                                                                                                                                                              Ending
                                                                                   Share of net                                                                            balance of
                                                                                    profit/(loss) Share of other    Share of other                                       provision for
                               31 December          Increase in     Decrease in    under equity comprehensive         changes in       Cash dividends    31 December      impairment
                                      2020         investments      investments         method          income              equity           declared           2021             loss


      Taishan Electric        1,889,026,588                   -                -    (3,409,558)                -                 -      (101,148,944)    1,784,468,086               -

      Shanxi Yudean Energy 1,819,132,396            64,000,000                 -   480,044,857                 -                 -                  -    2,363,177,253               -
      Energy Group Finance
        Company                1,027,206,662                  -                -    91,099,049        4,818,429                 -        (76,421,226)    1,046,702,914              -
      Yudean Shipping            241,738,113                  -                -     7,347,225        (330,519)         (799,924)                   -      247,954,895              -
      GEG Property Insurance 268,468,953                      -                -     9,569,443                -                 -         (1,505,619)      276,532,777              -
      Western Investment         144,018,912                  -    (144,018,912)              -               -                 -                   -                -              -
      Weixin Yuntou              175,592,218                  -                -   (36,782,167)                -                 -                   -     138,810,051   (96,327,854)
      Energy Financial Leasing
        Company                  522,483,539                -                  -    22,399,917                 -                -        (12,576,669)      532,306,787              -
      Yueqian Power                        -      144,018,912                  -    11,125,044           (1,633)        6,183,547                   -      161,325,870              -
      Others                      13,183,938                -                  -     1,239,213                 -                -         (2,083,922)       12,339,229              -
                               6,100,851,319      208,018,912      (144,018,912)   582,633,023        4,486,277         5,383,623       (193,736,380)    6,563,617,862   (96,327,854)




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      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (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 sale

                                                                              2021                         2020

      Revenue from main operations                                  1,522,773,313               1,130,337,474
      Revenue from other operations                                    71,049,232                  91,259,553
                                                                    1,593,822,545               1,221,597,027

                                                                              2021                         2020

      Cost of sale from main operations                             1,910,172,008               1,159,450,238
      Cost of sale from other operations                                1,779,127                   2,176,800
                                                                    1,911,951,135               1,161,627,038

(a)   Revenue and cost of sale from main operations

                                                     2021                                   2020
                                                              Cost of sale                           Cost of sale
                                    Revenue from               from main      Revenue from            from main
                                   main operations             operations    main operations          operations

      Revenue from sale of
        electricity                  1,522,773,313          1,910,172,008     1,130,337,474        1,159,450,238
                                     1,522,773,313          1,910,172,008     1,130,337,474        1,159,450,238

(b)   Revenue and cost of sale from other operations

                                                     2021                                   2020
                                                              Cost of sale                           Cost of sale
                                     Revenue from              from other      Revenue from           from other
                                   other operations            operations    other operations         operations

      Revenue from
        integrated utilisation
        of coal ash                      31,187,580                    -         35,423,067               5,311
      Rental income                      13,524,618            1,010,171          9,706,568           1,010,171
      Others                             26,337,034              768,956         46,129,918           1,161,318
                                         71,049,232            1,779,127         91,259,553           2,176,800

      Due to the impact of COVID-19, the Group exempted the lessee from paying the rental of RMB
      438,728 for 2021, and the Group has deducted the above rental waivers against the rental income
      for the current period.




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      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (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 sale (Cont’d)

(c)   The Company's revenue is disaggregated as follows:

                                                                       2021
                                                    Sale of
                                            electricity and
                                                  coal ash        Rental       Others           Total

      Revenue from main
         operations
      Including: Recognition at a
                  point in time            1,522,773,313               -            -   1,522,773,313
      Revenue from other
         operations
      Including: Recognition at a
                  point in time                31,187,580              -   19,526,298     50,713,878
                 Recognised over
                  a period of time                     -               -    6,810,736       6,810,736
                 Rental income                         -      13,524,618            -      13,524,618
                                           1,553,960,893      13,524,618   26,337,034   1,593,822,545

                                                                       2020
                                                    Sale of
                                            electricity and
                                                  coal ash        Rental       Others           Total

      Revenue from main
         operations
      Including: Recognised at a
                  point in time            1,130,337,474               -            -   1,130,337,474
      Revenue from other
         operations
      Including: Recognised at a
                  point in time                35,423,067              -   41,562,703     76,985,770
                 Recognised over
                  a period of time                     -               -    4,567,215       4,567,215
                 Rental income                         -       9,706,568            -       9,706,568
                                           1,165,760,541       9,706,568   46,129,918   1,221,597,027

       As at 31 December 2021, the Company had no performance obligation that had been contracted
       but not yet fulfilled.




      - - 327 - -
      GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

      NOTES TO THE FINANCIAL STATEMENTS
      FOR THE YEAR ENDED 31 DECEMBER 2021
      (All amounts in RMB Yuan unless otherwise stated)
      [English translation for reference only]
15    Notes to the Company’s financial statements (Cont’d)

(5)   Investment income

                                                                     2021                          2020

      Income from long-term equity investments
         under cost method                                  1,632,390,475              1,257,249,835
      Recognised investment income from equity
         replacement                                         973,426,650                               -
      Investment income from long-term equity
         investments under equity method                     697,838,523                 230,001,917
      Dividend income earned during the holding
         period of investments in other equity
         instruments                                           87,731,408                 65,087,539
      Interest income from entrusted loans                     27,260,693                 24,163,550
      Others                                                      406,984                    361,286
                                                            3,419,054,733              1,576,864,127

      There was no significant restriction on remittance of investment income of the Company.

(6)   Credit impairment (reversal)/loss

                                                                     2021                          2020

      (Reversal of)/Losses on bad debts of other
        receivables                                              (58,102)                         58,374
      Reversal of bad debts of accounts receivables                     -                       (20,911)
                                                                 (58,102)                         37,463

(7)   Asset impairment losses

                                                                     2021                          2020

      Impairment of fixed assets                               29,321,084                 52,051,098
      Impairment of long-term equity investments                        -                 96,300,000
      Impairment of inventories                                         -                 13,985,244
                                                               29,321,084                162,336,342




      - - 328 - -
    GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

    NOTES TO THE FINANCIAL STATEMENTS
    FOR THE YEAR ENDED 31 DECEMBER 2021
    (All amounts in RMB Yuan unless otherwise stated)
    [English translation for reference only]


1   Statement of non-recurring profit or loss


                                                                             2021                   2020


    Net profit or loss of the subsidiaries acquired in business
       combinations involving enterprises under common control
       for the period from the beginning of the period to the
       combination date                                              (658,714,842)         559,324,501
    Gains on disposals of non-current assets                           82,842,178          340,976,361
    Government grants recognised in profit or loss for the current
      period                                                          37,606,578             30,457,198
    Gains on scraping of non-current assets                           95,182,637             21,381,516
    Compensation for electricity charges during the demolition
      and construction period                                         18,040,851               11,315,659
    Gains of negative goodwill from acquisition of associates                   -               8,549,071
    Gains of negative goodwill from business combinations
       involving enterprise not under common control                            -               1,235,720
    Losses on scrapping of non-current assets                         (24,792,577)           (23,719,197)
    Penalties and overdue fines                                        (5,756,168)             (3,976,455)
    Other non-operating income and expenses other than
      aforesaid items                                                 16,979,172               36,323,955
                                                                     (438,612,171)           981,868,329
    Effect of income tax                                             (55,885,342)           (106,635,578)
    Impact on minority interests (after tax)                         252,056,993            (372,532,443)
                                                                     (242,440,520)           502,700,308


    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 the China Securities
    Regulatory Commission, non-recurring profit or loss refers to profit or loss arising from
    transactions and events those are not directly related to the Company’s normal course of
    business, also from transactions and events those even are related to the Company’s normal
    course of business, but will interfere with the right judgement of users of the financial statements
    on the Company’s operation performance and profitability due to their special nature and
    occasional occurrence.


    Non-recurring profit or loss items defined according to the definition of non-recurring profit or loss
    and non-recurring profit or loss items listed which are defined as recurring profit and loss items are
    as follows:



    - - 329 - -
GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
                                                                     Reasons for regarding as recurring profit or
                                                    Amount of 2021                                          loss


                                                                     Constant occurrence, conforming to national
VAT refund upon collection                              28,991,960                       policies and regulations
Carbon emission quota used to fulfil the                             Constant occurrence, conforming to national
   emission reduction obligation                     (135,013,051)                       policies and regulations




- - 330 - -
    GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

    NOTES TO THE FINANCIAL STATEMENTS
    FOR THE YEAR ENDED 31 DECEMBER 2021
    (All amounts in RMB Yuan unless otherwise stated)
    [English translation for reference only]
2   Return on net assets and earnings per share


                                      Return on weighted                   Earnings per share
                                   average rate net assets      Basic earnings per    Diluted earnings per
                                               (%)                    share                  share
                                          2021           2020     2021        2020       2021        2020


    Net profit attributable to
      ordinary shareholders
      of the Company                 (10.72)%           6.95%     (0.60)       0.39     (0.60)        0.39
    Net profit attributable to
      ordinary shareholders
      of the Company after
      deduction of
      non-recurring profit or
      loss                           (11.31)%           5.73%     (0.55)       0.30     (0.55)        0.30




    - - 331 - -