Guangdong Electric Power
Development Co., Ltd.
Semi-Annual Report 2010
August 20，20102
Important Notices
The Board of directors and directors of the Company hereby guarantees that there are
no false records, 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 .
Vice Board chairman Liu Qian, Director Hong Rongkun, Directors Wu Bin,Director
Wu Xu and Independent director Yang Zhishan did not attend the meeting in person
due to business, who respectively authorized Director Li Zhuoxian , Director Gao
Shiqiang ,Independent director Zhang Yao and Independent Director Sha Qilin to
attend the meeting and exercise voting right on their behalf.
Chairman of the Board of Directors, Pan Li, General Manager, Lin Shizhuang ,and Financial
Deputy General Manager, Li Xiaoqing and Financial Manager ,Liu Xuemao represent and
warrant the financial and accounting report in the Semi-annual report is true and
complete.
The financial report of the semi-annual report has not been audited.3
Table of contents
I. Basic information of the Company
II.Highlights of financial data and indicators
III. Change of share Capital and Shareholding of principal shareholders
IV.Information about Directors, Supervisors and senior Executives
V.Discussion and Analysis of Management
VI.Important Events
VII.Financial Report
VIII. Documents for reference4
I. Basic Information of the Company
(I) Statutory name of the Company in Chinese:广东电力发展股份有限公司
Name in English：GUANGDONG ELECTRIC POWER DEVELOPMENT CO.,LTD.
English abbreviation：GED
(2)Stock exchange for listing：Shenzhen Stock Exchange
Stock abbreviation：Yue Dian Li A, Yue Dian Li Ｂ
Stock code：000539、200539
(3)Registered address of Company：23-26/F, South Tower, Yudian Plaza , 2 Tianhe Dong
Road, Guangzhou, Guangdong Province
Office address：23-26/F, South Tower, Yudian Plaza , 2 Tianhe Dong Road, Guangzhou,
Guangdong Province
Company’s web site：http://www.ged.com.cn
Company’s E-mail：ged@ged.com.cn
4)Legal Representative：Pan Li
General Manager：Lin Shizhuang
(5)Secretary to the board of Directors：Liu Wei
Contact Tel：(020)87570276
E-mail：liuw@ged.com.cn
Representative of stock affairs：Liang Jiangyong
Contact Tel：（020）87570251
E-mail：ljy@ged.com.cn
Fax：（020）85138084
Address：26/F, South Tower, Yudian Plaza , 2 Tianhe Dong Road, Guangzhou, Guangdong
Province
Post code：510630
(6)For information discloosure：China Securities Daily, Securities Times and Hong
Kong Commercial Daily (overseas newspaper for English version).
Web site：http://www.cninfo.com.cn
Place where company’s periodic report is kept：Office of board affairs5
II. Highlights of financial data and indicators
(I)Highlights of financial data and indicators
Unit：RMB
Ended this report Ended previous
year Increase/Decrease（％）
Total assets 31,947,350,170.00 30,163,552,152.00 5.91%
Owners’ equity attributable to shareholders
of the listed company 9,829,412,154.00 9,271,838,984.00 6.01%
Share capital 2,797,451,138.00 2,659,404,000.00 5.19%
Net assets per share attributable to
shareholders of the listed
company(RMB/share)
3.51 3.49 0.57%
Report period
(January-June)
Same period last
year
Increase /Decrease （％）
Total operating income 6,251,011,400.00 5,270,848,337.00 18.60%
Operating profit 611,264,665.00 545,395,598.00 12.08%
Total profit 612,605,977.00 520,752,372.00 17.64%
Net profit attributable to shareholders of the
listed company 430,513,284.00 365,789,341.00 17.69%
Net profit attributable to shareholders of the
listed company after deducting
non-recurring gains and losses
418,989,163.00 375,345,742.00 11.63%
Basic earnings per share(RMB/share) 0.16 0.14 14.29%
Diluted earnings per share(RMB/share) 0.16 0.14 14.29%
Return on equity（%） 4.42% 4.03% 0.39%
Net cash flow arising from operating
activities 1,003,137,349.00 2,234,691,139.00 -55.11%
Net cash flow per share arising from
operating activities (RMB/share) 0.36 0.84 -57.14%
Note: The amount of non-recurring gains and losses in the report period was RMB
11,657,798.00. The items involved and their amount are as follows:
Unit：（RMB）
Items of non-recurring gains and losses Amount Notes (if
applicable
Income of commission loans 8,982,957.00
Other non-recurring Gains/loss items 1,379,200.00 Recover writing-off
bad debt lost
Non-operating expenses and Non-operating income 1,161,964.00
Total 11,524,121.00 -
(II) Return on equity and earnings per share
Earnings per share
Profit in the report
peirod
Weighted average return on
equity(%) Basic earnings per share Diluted earnings per
share
Consolidated net profit
attributable to shareholders
of the Company
4.42% 0.16 0.16
Consolidated net profit 4.30% 0.15 0.156
excluding non-routine items
attributable to shareholders
of the Company
(III) Difference between items calculated pursuant to domestic and foreign accounting
standards
Unit ：（RMB）
Net profit attributable to shareholders of
listed company
Owners’ Equity attributable to shareholders
Amount in the report of listed company
period Amount in last period Amount in period-end Amount in
period-begin
IAS 426,891,284.00 357,741,341.00 9,939,153,154.00 9,385,201,984.00
CAS 430,513,284.00 365,789,341.00 9,829,412,154.00 9,271,838,984.00
Sub-items and total adjusted based on IAS：
Deferred housing reform
loss amortization 0.00 -5,109,000.00 0.00 0.00
Land use right
amortization -3,736,000.00 -3,736,000.00 19,652,000.00 23,388,000.00
The difference arising
from recognition of
goodwill after merger
of enterprises under
the same control
0.00 0.00 64,623,000.00 64,623,000.00
Difference arising
from recognition of
land use value after
enterprise merger
-315,000.00 -315,000.00 22,955,000.00 23,270,000.00
Influence on minority
interests 429,000.00 1,112,000.00 2,511,000.00 2,082,000.00
Total amount of
differences between
CAS and IAS
-3,622,000.00 -8,048,000.00 109,741,000.00 113,363,000.00
Notes to difference
between Chinese and
international
accounting standards
1. Deferred housing reform loss amortization
According to relevant provisions of national policies, the Group set off the loss incurred by
housing reform carried out in 2000 by undistributed profit for that year. According to IFRS,
such loss should be amortized in the future length of service( 10 years) of employees. This
difference has finished in 2009.
2. Land use right amortization
The difference formed by different period of land use right amortization.
3. The difference arising from recognition of goodwill after merger of enterprises under the
same control and recognition of land value after enterprise merger
As required by new Chinese accounting standards, the goodwill formed by the merger of
enterprises under the same control shall not be recognized and capital surplus shall be
adjusted. Under IFRS, the goodwill formed by the merger of enterprises under the same
control shall be recognized and equal to the difference between merger cost and share of
fair value of recognizable net assets of the purchased party obtained in merger. Meanwhile,
all assets of the purchased party obtained in merger shall be accounted for according to
their fair value while such assets shall be accounted for according to their book value
according to original Chinese accounting standards for business enterprises. Therefore, this
difference will continue to exist.
4. Influence on minority interests
Housing reform loss occurred to the Company and some Holding subsidiaries. therefore，
there's some influence on minority interests.7
III.Change of share capital and shareholding of Principal
shareholders
(I).Statement of changes in shares
Unit :Shares
Before this change Increase or decrease this time (+/-) After this change
Quantity proportion Share allotment Bonus
shares
Capitalizati
on of
common
reserve
fund
other subtotal Quantity proportion
I.Shares with
conditional
subscription
7,219,737 0.27% 138,047,138 0 0 -1,075,439 136,971,699 144,191,436 5.15%
1.Stqate-owned
shares 0 0.00% 0 0 0 0 0 0 0.00%
2.State-owned
legal person
shares
141,951 0.01% 138,047,138 0 0 -676 138,046,462 138,188,413 4.94%
3.Other domestic
shares 7,060,589 0.27% 0 0 0 -1,074,763 -1,074,763 5,985,826 0.21%
Incl:
Non-government
domestic legal
person shares
5,885,259 0.22% 0 0 0 -630,704 -630,704 5,254,555 0.19%
Domestic
naturalperson
shares
1,175,330 0.04% 0 0 0 -444,059 -444,059 731,271 0.03%
4.Share held by
foreign investors 0 0.00% 0 0 0 0 0 0 0.00%
Incl: Shares
heldby foreign
legal persons
0 0.00% 0 0 0 0 0 0 0.00%
Foreign
naturalperson
shares
0 0.00% 0 0 0 0 0 0 0.00%
5.Senior
executives’ shares 17,197 0.00% 0 0 0 0 0 17,197 0.00%
II. Shares with
unconditional
subscription
2,652,184,263 99.73% 0 0 0 1,075,439 1,075,439 2,653,259,702 94.85%
1.Common shares
in RMB 1,986,857,763 74.71% 0 0 0 1,075,439 1,075,439 1,987,933,202 71.06%
2.Foreign shares
in domestic
market
665,326,500 25.02% 0 0 0 0 0 665,326,500 23.78%
3.Foreign shares
in overseas
market
0 0.00% 0 0 0 0 0 0 0.00%
4.others 0 0.00% 0 0 0 0 0 0 0.00%
III.Total of capital
shares 2,659,404,000 100.00% 138,047,138 0 0 0 138,047,138 2,797,451,138 100.00%8
(II)As of June 30, 2010, the Company had totally 148,116 shareholders, of them, 90,978
shareholders of A-share, and 57,138 shareholders of B-share.
(III) (II) Particulars of the shareholding of the top ten shareholders as of June 30,
2010
Unit：Shares
Name of
shareholder (full
name)
Increase or
decrease in the
year
Number of
shares held at
the end of year
Proportio
n (%) Type of share
Conditional
shares
Quantity of
pledged or
frozen
shares
Propertie
s of
sharehold
er
Guangdong
Yudean Group
Co., Ltd.
138,087,008 1,370,444,571 48.99% RMB Common
shares 138,188,413 0
State-ow
ned
Legal
person
Guangdong
Guangfa Electric
Power
Investment Co.,
Ltd.
0 101,777,185 3.64% RMB Common
shares 0 0 Unknown
Guangdong
Electric Power
Development
0 78,639,451 2.81% RMB Common
shares 0 0
State-ow
ned
Legal
person
China Xinda
Asset
Management
Corporation
-15,628,000 25,900,000 0.93% RMB Common
shares 0 0 Unknown
Guangdong
Guangkong
Group Co., Ltd.
3,481,300 23,610,428 0.84% RMB Common
shares 0 0
Domestic
non
State
-ow
ned
Legal
person
China merchants
Bank-Everbright
Pramerica
Securities Fund
0 17,480,483 0.62% RMB Common
shares 0 0
Domestic
non
State
-ow
ned
Legal
person
SCHRODER
INTL
SELECTION
FD-GREATER
CN FD GTI
25287
0 17,176,623 0.61%
Foreign shares
placed in
domestic
exchange
0 0
Foreign
legal
person
Bank of China -
Efunds SZSE
100 open-ended
index security
Investment Fund
6,869,101 13,123,023 0.47% RMB Common
shares 0 0
Domestic
non
State
-ow
ned
Legal
person
Natio Securities -710,482 12,164,042 0.43% Foreign shares 0 0 Foreign9
Co.,Ltd. placed in
domestic
exchange
legal
person
China
Construction
Bank－Penghua
Value Advantage
Stock-linked
Security
Investment Fund
-88,200 10,431,599 0.37% RMB Common
shares 0 0
Domestic
non
State
-ow
ned
Legal
person
Notes to the related relationship between
the top ten shareholders or their concerted
action
Guangdong Electric Power Development Co., Ltd. the Third of the top 10
shareholders, is a subsidiary of Yudean Group, Which is the No.3 shareholder;
its is unknown whether relationship exists between other shareholders.
(IV) Top 10 holders of unconditional shares
Unit:Shares
Name of the shareholder） Unconditional shares Type of shares
Guangdong Yudean Group Co., Ltd. 1,232,256,158 RMB Common
shares
Guangdong Guangfa Electric Power
Investment Co., Ltd. 101,777,185 RMB Common
shares
Guangdong Electric Power
Development 78,639,451 RMB Common
shares
China Xinda Asset Management
Corporation 25,900,000 RMB Common
shares
Guangdong Guangkong Group Co.,
Ltd. 23,610,428 RMB Common
shares
China merchants Bank-Everbright
Pramerica Securities Fund 17,480,483 RMB Common
shares
SCHRODER INTL SELECTION
FD-GREATER CN FD GTI 25287 17,176,623
Foreign shares
placed in domestic
exchange
Bank of China - Efunds SZSE 100
open-ended index security Investment
Fund
13,123,023 RMB Common
shares
Natio Securities Co.,Ltd. 12,164,042
Foreign shares
placed in domestic
exchange
China Construction Bank－Penghua
Value Advantage Stock-linked
Security Investment Fund
10,431,599 RMB Common
shares
Notes to the related relationship
between the top ten shareholders or
their concerted action
Guangdong Electric Power Development Co., Ltd. the
Third of the top 10 shareholders, is a subsidiary of
Yudean Group, Which is the No.3 shareholder; its is
unknown whether relationship exists between other
shareholders.
(V) Bond holding by top 10 corporate bond holders
Name Number（shares）
China Ping An Property Insurance Co., Ltd.-- niversal －
Universal insurance Group 2,450,00010
China People's Life Insurance Co., Ltd. 2,388,140
Xinhua Life Insurance Co., Ltd. － Universal － Deyi Management
-018L-WN001Shen 2,200,000
Zhongying Life insurance Co., ltd. 2,114,775
China Post Office Saving Bank Co., Ltd. 2,000,000
China Ping An Life Insurance Co., Ltd. 1,600,000
Zhongyou Financial Co., Ltd 1,336,678
Taikang Life insurance Co., Ltd－Dividend Distribution－Group
Dividends-019L-FH001Shen 1,000,000
Taikang Life insurance Co., Ltd－Universal--Universal
individual insurance
1,000,000
China Ping An Insurance (Group) Co., Ltd. 800,000
(VI)There was no change in the Company’s controlling shareholder or actual controller during
the reporting period.
IV. Particulars of Directors, Supervisors and Senior Executives
In the report period, For the need of work, Kong Huitian was recommended as Director of the
company by Guangdong Yudean Group Co., Ltd of our controlling shareholder, and Deng An no
longer held the post of Director. 2009 annual shareholders' general meeting elected Kong
Huitian as directors of the Company. Relevant resolutions were disclosed on China Securities
Daily, Securities Times, Hong Kong Commercial Daily (English version for overseas areas) and
www.cninfo.com.cn on May 27, 2010.
In the report period, the shares of the Company held by the directors, supervisors and senior
executives of the Company remained unchanged. No stock options or restricted stocks were
granted to them.
V. Discussion and Analysis of the Management
In the report period, The economy in Guangdong on the whole looks up, and the demand for
power consumption also is up evidently, moreover, the drought in Southwest, inadequate output in
hydropower units and West-East power transmission reducing greatly are all the causes of the
power generation capacity in Guangdong province on the rise significantly. During 1 to 6 months,
the maximum load of integration tune in Guangdong reached 65.33 million kilowatts, up by
10.32% year-on-year; Guangdong power consumption throughout society was 186.686 billion
KWH, up by 18.43%; the power generation capacity in Guangdong is 151.96 billion KWH, up by
32.9%; of which, the fired power up by 35%. During the reporting period, the power generation
capacity of merger report caliber completed by the company was 15.544 billion KWH, up by
20.98%; the completed grid power of 14.401 billion KWH, up by 21.63%; the equity installed
capacity of power generation of 14.697 billion KWH, up 23.16%; the on-grid power capacity of
13.707 billion KWH, up by 24.76%.11
In the report period, With our power generating capacity evidently increasing, we realized the
business incomes of RMB6.251 billion, growth of 18.6% year-on-year. Whereas, the price of fuses
rose, the increase of amount of our operating business was down evidently. During the reporting
period, our business profits and the net profits attributable to the shareholders of the listed
company respectively were RMB0.611 billion and 0.445 billion, respectively, increase of 12.08%
and 21.74% year-on-year. Because the payment of fuses for purchase rose, the net cash flows
created in the operation was RMB1.003 billion, decrease of 55.11% year-on-year.
In the report period, We also actively promoted the progress of projects under construction, 29%
shares for Sujiahekou Power Station (315 thousand kilowatts) and Songshanghekou Power Station
(168 thousand kilowatts) constructed by Yunnan Baoshan Binglangjiang Hydroelectricity
Development Co., Ltd, and 25% shares for the project of Nan'ao Wind-Electricity East Island (15
thousand kilowatts) built by Huaneng Shantou Wind Power Co., Ltd, trying to put into production
within this year.
We are still to increase input in the projects under construction and the works of pre-stage
pursuing according to the status of projects. During the reporting period, our company has also
made replenishment for Guangdong Yuedianjinghai Power Generation Co. Ltd, Guangdong
Honghai Bay Power Generation Co. Ltd, Yunnan Baoshan Binglangjiang Hydroelectricity
Development Co., Ltd and Guangdong Yudean Bohe Coal-Electricity Co., Ltd, and supports the
projects promoted forward.
In the report period, We issue up to 138,047,138 A shares for Guangdong Yudean Group Co. Ltd
of our controlling shareholder with raised capital of RMB820 million after the non-publicly issued
A shares for initial public offerings is completed. The demands for funds of part of investment
projects are met, and the debt level and capital structure are improved to some extent, all the
aforementioned will help company long-term development.
The company has started the material assets reorganization up at the end of the report period, and
has publicly announced “Preplan of the Material Assets Reorganization” on July 29, 2010. We
intend to acquire the equity of Guangdong Yudean Group Co., Ltd, our controlling shareholder,
including 60% of Shenzhen Guangqian Electric Power Co., Ltd, 35% of Guangdong Huizhou
Natrual Gas power Co. Ltd, 40% of Guangdong Yudean Shibeishang Wind-Energy Development
Co., Ltd, 90% of Guangdong Yudean Yunfu Power Plant Co., Ltd, 45% of Guangdong Huizhou
Pinghai Power Plant Co., Ltd, 90% of Guangdong Yudean Yunhei Power Co. Ltd and 20%
Guangdong Guohua Yudean (Taishan) Power Co. Ltd. Through the assets reorganization, it would
effectively reduce the intra-industry competition between our company and the controlling
shareholder; at the same time greatly update our installed capacity, the scale of assets and the
profitability. Thus, it is conductive to consolidation and improvement for the market position and
key competitiveness of company, and meets the needs of all the shareholders' interests.
(I) Main operating status of the Company in the report period:
1.Main operating scope and its operating status
The Company is a big power generating company engaged in operation and
construction of power stations and power transmission and transformation projects.12
Operating result for first half year of 2010 is as follows：
Unit：RMB’0000
Industry Area Main operating
income
Main
operating cost
Gross
profit(%)
Increase/dec
rease on
main
operating
income over
（％）
Increase
/decrease on
main
operating
cost over
（％）
Increase
/decrease on
gross profit
over
Sale
Electricty
Guangdo
ng 622,015.83 534,181.02 14.12% 16.34% 19.25% -2.98%
Labour
services
Guangdo
ng 1,669.74 985.35 40.99% 32.49% 75.21% -14.39%
Total Guangdo
ng 623,685.57 535,166.37 14.19% 18.81% 23.07% -2.97%
The status of power production of the power plants under the Company and its controlled
subsidiaries in the report period is as follows:
Indicator Power plant January-June
The same
period of the
previous year
Year-on-year growth
rate (±%)
Shajiao A Power Plant 42.02 31.55 33.19
Zhanjiang Power Plant 38.98 30.8 26.56
Meixian Power Plant 14.77 12.84 15.03
Shaoguan Power Plant 16.07 14.16 13.49
Maoming Zhenneng 18.82 13.67 37.67
Huilai Power Plant 24.28 25.46 -4.63
Power output
(billion kwh)
Wind Power 0.5 － －
Shajiao A Power Plant 39.03 28.98 34.68
Zhanjiang Power Plant 36.51 28.65 27.43
Meixian Power Plant 13.47 11.7 15.13
Shaoguan Power Plant 14.54 12.78 13.77
Maoming Zhenneng 17.35 12.51 38.69
Huilai Power Plant 22.64 23.8 -4.87
On-grid
electricity
volume
(billion kwh)
Wind Power 0.47 － －
2. There was no material change in the Company's profit structure, main operation or its structure
in the report period.
3. The Company was not involved in other business operation activities that had significant
influence on profit.
4. The circumstances where the income from investment in a joint venture accounted for more
than 10% (including 10%) of the Company's net profit.
Company Name
Registered
Capital
（RMB’0000）
Share
Percentage
Business Scope
Net Profits
（RMB’0000）
Shenzhen
Guangqian
103,029.25 40％
Build to operate Shenzhen
Qian Bay Combined Cycle
14,217.413
Electric Power
Co., Ltd
Gas-Turbine Power Plant
Guangdong Red
Bay Electric
Co., Ltd.
274,975 25%
The construction, generation
and sale for electric power
should be operated within the
period of validity of “Electric
Power Business Licenses”
19,825.84
5. Problems and difficulties occurred in operation
（1）It was ideal for our company to generate power capacity in the first half of this year, with the
electric capacity of West-East power transmission restoring and complementing, it is expected that
the purchased power will be increased outside Guangdong province for the second half of year.
Also, part of new units inside the province will be mainly put into the production, which will lead
company’s market quota of power generating within the province less. Moreover, the measure of
ensuring power reliability for the 16th Asian Games held in Guangzhou in the second half of this
year, and controlling the environmental protection will certainly influence the balance between
supply and demand in this area.
（2）Our fuel prices rose year-on-year in the first half of this year, it is expected that the price will
remain high in the second half of year. Whereas, the coal-electricity linkage mechanism hasn’t yet
started up in time, thus, we face with the enormous cost pressure for operation.
（3）Part of units of power plant of our subordinate company had more times of non-plan
stop-running in the first half of this year, which had disadvantage influence on the power
generation capacity of units. We will take measures actively to improve the healthy level of units
and ensure the units generating power more and stably, so that the power generating planning of
whole year can be achieved.(II) The investment of the Company
1. Application of Raised Capital during the Reporting Period
Unit：RMB
Total Amount of Raised Capital 82,000.00
Total Amount of Raised Capital for Use
Changed in the Reporting Period
Total Amount Of Raised Capital Invested in the Reporting
Period 25,000.00
Total Amount for Accumulative Changed
Raised Capital
Total Amount Proportion for
Accumulative Changed Raised Capital
Total Amount Of Accumulated Raised Capital Invested 25,000.00
Promised Projects of
Investment
Projects
Changed
（Including
Part of
Changing）
Total
Amount
of
Raised
Capital
For
Investme
nt
Promise
d
Total
Amount of
Adjusted
Investment
Total
Amount
Promised
to Invest
up to the
End Of
Period (1)
Total
Amount
Invested
within
the
Reportin
g Period
Total
Amount
for
Accumul
ative Put
up to the
End of
Period
(2)
Balance
between
Total
Amount for
Accumulati
ve Invested
& Promised
Up To The
End of
Period (3)＝
(2)-(1)
The Progress
Invested up to
the End of Period
（%）(4)＝(2)/(1)
Usable Date For
Projects
Access to
Benefits in
the Reporting
Period
Achieve the
Expected
Benefits
Change Greatly for Projects
Feasibility
Replenish Capital
for Weixin Yuntou
Yudean Zaxi Energy
Co., Ltd.
No 45,000.0
0 45,000.00 45,000.00 0.00 0.00 -45,000.00 0.00% December
31,2011 0.00 Yes No
Replenish Capital
for Guangdong
Yudean Zhanjiang
Wind Power Co.,
No 12,000.0
0 12,000.00 12,000.00 0.00 0.00 -12,000.00 0.00% December
31,2011 0.00 Yes No15
Ltd.
Repay yhe Load No 25,000.0
0 25,000.00 25,000.00 25,000.0
0
25,000.0
0 0.00 100.00% June 9,2010 357.82 Yes No
Total - 82,000.0
0 82,000.00 82,000.00 25,000.0
0
25,000.0
0 -57,000.00 - - 357.82 - -
Analysis For Failure
To Reach The
Planned Schedule
And Earnings
（Specific Projects）
We intended to invest the raised capital of the projects of coal-electricity integration & Guanyinshan colliery well 2 of Yunnan Weixin Zhaxi and the project
of Xuwen warrior wind-power. Also, investing according to the specific progress and capital demands of aforesaid projects.
Analysis For
Change Greatly For
Projects Feasibility
N/A
Description For The
Execution Place
Changed For
Investment Projects
Of Raised Capital
Inapplicability
Description For The
Execution Mode
Adjusted For
Investment Projects
Of Raised Capital
Inapplicability
Description For The Applicability
Investment Projects
Of Pre-invested &
Replaced Raised
RMB250 million was to repay the load in the investment projects of raised capital this time. Namely, 1. Repay the load of RMB200 million to Guangdong
Yudean Finance Co., Ltd, with interest rate 4.374% and the expiring date on October 13, 2010; 2. Repay the load of RMB50 million to Guangdong Yudean
Finance Co., Ltd, with interest rate 4.374% and the expiring date on September 2, 2010.16
Capital
Description For The
Circulating Funds
Complemented
Temporarily By Idle
Raised Capital
Inapplicability
Total Balance &
Causes Of Raised
Capital For Projects
Execution
Inapplicability
Use & Direction For
Raised Capital
Unused
Up to the end of this reporting period, RMB570 million of raised capital was not used, we would intend to use strictly according to the purpose of raised
capital. Of which, RMB450 million is for replenishment of Weixinyuntou Yudean Zhaxi Energy Co., Ltd. and construction of the projects of Yunnan
Weixinzaxi coal-electricity integration & Guanyinshan colliery well 2; RMB120 million was used to replenish capital for Guangdong Yudean Zhanjiang
Wind Power Co., Ltd. and built the project of Xuwen warrior wind-power.
Issues & Other
Status Existing In
The Use &
Disclosure Raised
Capital
N/A2. Investment with non-IPO proceeds and its progress and income in the report period
Unit: RMB’0000
Project Name Investment Amount Project Progress Project Earnings/Remarks
Guangdong Yudean Jinghai Power
Generation Co Ltd. 32,500
At present, #1& #2
units(2×600MW) of Huilai power
plant are being operating, and #3 &
#4 units(2×1000MW) of pre-stage
works are being constructed.
27.49 million yuan of period
earnings discounted as per
65%Equities
Guangdong Red Bay Power Co Ltd. 5,000
Currently, #1& #2 units
(2×600MW) of Shanwei power
plant are being operating, and #3 &
#4 units (2×660MW) of pre-stage
works are being constructed.
49.56 million yuan of period
earnings discounted as per
25%Equities
Yunnan Baoshan Binglangjiang
Hydroelectricity Development Co.,
Ltd.
2,900
Now Binglangjiang Houqiao Power
Station (48MW) is being operated,
Sujiahekou (315MW) and
Songshanghekou Power Stations
(168MW) are being built, and the
pre-stage works of Sanchahekou
Power Station is being developed.
Sujiahekou and Songshanghekou
Power Stations are expected to put
into generating power in 2010 to
2011.
-
All Projects of Pre-stage Pursuing
Works 15,127 All projects of pre-stage works are
being actively developed.
Without the operational
efficiency brought yet
(III)The plan for the second half year:
In the second half of year, our company will focus on the existing units of running security &
stability, strengthening management and operating cost control, to overcome such difficulties of
fuel cost high, and try to finish the plan for electricity and strive for better business performance.
Meanwhile, we will actively promote the project under construction to put into production early,
steadily boost the assets reorganization, and keep the capability of sustainable development.
(IV) Assets measured with fair value
Financial assets available for sale were measured according to fair value. In case of change in fair
value and book value, capital surplus shall be adjusted and the profit for the report period shall not
be affected. The financial assets available for sale held by the Company are 7,000,000 shares of
Shenzhen Energy and 37,021,500 shares of Shenergy Company.
The Company's real estate for investment is old office building rent by the Company, which
is measured with cost mode mainly because the obtainment of its fair value relies on appraisal and
it was difficult to continuously and accurately to obtain the market price of real estate of the same
or similar kind from market.
VI. Important Events18
(I) Status of corporate governance structure
In the report period, The Company continued to unceasingly improve its own corporate
governance structure and further enhanced the level of its standardized operation strictly according
to the requirements of laws and regulations including the Company Law, the Securities Law,
relevant regulations of CSRC and Stock Listing Rules of Shenzhen Stock Exchange.
In accordance with the requirements of Fundamental Norms of Internal Control of Enterprises and
Guidelines of Shenzhen Stock Exchange for Internal Control of Listed Companies, the Company
unceasingly strengthened the construction of internal control system and improved internal control
system. “Duty System for Major Errors in the Disclosure of Information in the Annual Report”,
“Management System for Insider Information” and “Management System for Report Unit
External Information” were examined and adopted of the 11th meeting of the 6th board of
directors of the company on April 12, 2010, which will be strictly executed in accordance with the
provisions of the system.
According to the demands of Guangdong Authority of China Securities Regulatory Commission
of “Notice on Start the Check Special Activities of Information Disclosure of the Listed
Companies”, our company timely implement the scheme of the special check activities of
information disclosure, seriously self-check and analyze the information disclosure, and address
and implement the improvement measures for un-perfect aspects.
(II) The status of implementation of profit distribution plan of the Company for 2009 in
the report period
The profit distribution plan for 2009 was examined and adopted at the shareholders'
general meeting of the Company on May 26, 2010. And “Announcement on Year 2009
Dividend Distribution” was published in the appointed media on July 16,2010. Stock right was
registered on July 21, 2010 (July 26 for B shares). The ex-dividend date is July 22, 2010.
Cash dividends were distributed on July 22 (for A shares) and July 26 (for B shares).
The company issued up to 138,047,138 A shares for Guangdong Yudean Group Co., Ltd of our
controlling shareholder with the price of RMB5.94 per share on April 21, 2010. The entrusting
registration formalities of A shares had been completed in Shenzhen Branch of China Securities
Registration & Cleaning Co., Ltd on May 12, 2010, and listed in Shenzhen Stock Exchange on
May 25, 2010.
(III)The Company was not involved in any material lawsuit or arbitration in the report
period.
(IV) Shareholdings of other listed companies
Unit :RMB
Stock Code
Stock
abbreviation
:
Investment
amount at the
beginning
Proportion
of
shareholdi
Book
Value at
the end of
Profit &
loss in the
report
Change of
owner’s
equity in
Accounting Share
Source19
ng report period the report
period
000027 Shen Energy
A 15,890,626.73 0.32% 66,640,000
.00 0.00 -28,280,00
1.00
Available
for sale
financial
assets
Issued
Obtaine
d
600642 Shenergy 235,837,987.50 1.28% 285,065,55
0.00
7,400,000
.00
-136,239,1
19.00
Available
for sale
financial
assets
Transfere
e to
obtain
Total 251,728,614.23 - 351,705,55
0.00
7,400,000
.00
-164,519,1
20.00 - -
(V) Equity of non-listed financial enterprises and companies to be listed held by the
Company
Unit：RMB
Name of object
Amount of
initial
investment
Amount of
shares held
Proportion in
equity of the
Company
Book value at
period-end
Profits or
losses in the
report period
Changes of
owners’
equity in the
report period
Yudean Finance 250,000,000.00 250,000,000.00 25% 291,303,398.76 0.00 0.00
Sun Insurance
Group Co., Ltd. 356,000,000.00 350,000,000 9.46% 356,000,000.00 0.00 0.00
Total 606,000,000.00 600,000,000.00 - 647,303,398.76 0.00 0.00
(VI) Matters related transactions
Details please refer to the financial report “VII, Related Parties and Related Transaction (5)
Related Transaction”
The Related transactions existing between the company and the affiliates mainly display on
purchasing fuses and materials, apportioning the common operating costs, accepting and offering
labor services, selling the products, deposit and demanding interests, and leasing the fields out,
etc.
The pricing policy of the said related transaction:：For the price of fuel purchase, if the state
sets a price, such price shall apply. If the State does not set a price, market price shall apply. The
related parties promised that the price offered would not be higher than the price of products of the
same quality offered to third parties. The price of materials shall be settled according to market
price. Labor services/services are accepted and provided at the price agreed by both parties
according to cost price and by reference to the market price of similar services. Products are sold
at the price agreed by both parties according to cost and by reference to the market price of similar
products. Relevant regulations of People's Bank of China apply to deposits. Site rent is collected
in the mode agreed by all parties based on cost price.20
The said related transactions were settled in cash and did not have unfavorable influence
on the profit of the Company. There is no significant difference from estimated related
transactions.
（VII） Information about other material related transactions
1. Related parties for Joint Venture Investment
In the repoet period, we will replenish capital as per 25% equity proportion with Guangdong
Yudean Group Co., Ltd of our controlling shareholder together for Guangdong Red Bay Power Co.
Ltd, our replenishment amount is RMB50 million. The business of Guangdong Red Bay Power Co.
Ltd is “Construct & operate the power plant and sell the power”, at the end of reporting period, the
registered capital is RMB2749.75 million, total assets is RMB8554.6902 million, net assets is
RMB2961.0392 million, and net profits is RMB198.2584 million. Currently, it is operating #1&
#2 units(2×600MW) of Shanwei power plant and constructing #3 & #4 units(2×660MW) of
pre-stage works.
2. Associated Relationship & Guarantee in Rights of Credit & Liabilities
Details on Rights of Credit & Liabilities, please refer to the financial report “Seventh, Related
parties and Related Transaction (5) Related Transaction”
Details on Guarantee, please refer to the contents “(8) Important Contracts and Promises of
Company——3. Important Guarantee” below
There exists the relationship in rights of credit & liabilities with the affiliates, and we also offer
guaranteed for them, which is implemented according to the requests of company’s self-operating
and the projects progress situation of affiliates. These are useful and have positive significations
for improving the development of company and promoting the progress of projects invested, there
is no harm to the interests of company.
(VIII)Important contracts and commitments of the Company
1. In the report period, the company conducted no major contract issues which
recognized by Shenzhen Stock Exchange according to . The Company did not hold in trust or contract for or lease the material
assets of other companies nor did other companies hold in trust, contract for or lease the
material assets of the Company in the report period.
2. In the report period, the Company was not involved in any material entrusted money
management or any entrusted money management that existed in previous periods and
continued in the report period.
3. Significant guarantee:
Unit: RMB’0000
External Guarantee (Exclude controlled subsidiaries)
Name of the
company
guaranteed
Related
announcem
ent date
and No.
Amount of
guarantee
Date of
happening
(Date of
signing
Actually
guarantee
amount
Guarantee
type
Guarantee
Term
Complete
implement
ation or
not
Guarantee
for related
party (Yes or
No)21
agreement)
Lincang
YuntouYudean
Hydroelectrici
ty
Development
Co., Ltd.
July
22,2006
（Announc
emen
No.:2006-2
5）
3,430.00 December
25,2006 3,430.00
Guarante
eing of
joint
liabilit
ies.
15 years No No
Yunnan
Baoshan
Binlangjiang
Hydroelectrici
ty
Development
Co., Ltd.
May
24,2007
（Announc
emen
No.:2007-1
9）
2,900.00 November
30,2007 2,900.00
Guarante
eing of
joint
liabilit
ies.
14 years No No
Yunnan
Baoshan
Binlangjiang
Hydroelectrici
ty
Development
Co., Ltd.
May
24,2007
（Announc
emen
No.:2007-1
9）
1,305.00 November
30,2007 1,305.00
Guarante
eing of
joint
liabilit
ies.
11 years No No
Yunnan
Baoshan
Binlangjiang
Hydroelectrici
ty
Development
Co., Ltd.
May
24,2007
（Announc
emen
No.:2007-1
9）
1,450.00 November
30,2007 1,450.00
Guarante
eing of
joint
liabilit
ies.
8 years No No
Yunnan
Baoshan
Binlangjiang
Hydroelectrici
ty
Development
Co., Ltd.
May
24,2007
（Announc
emen
No.:2007-1
9）
4,350.00 December
19,2007 4,350.00
Guarante
eing of
joint
liabilit
ies.
17 years No No
Yunnan
Baoshan
Binlangjiang
Hydroelectrici
ty
Development
Co., Ltd.
December
19,2007
（Announc
emen
No.:2007-4
4）
4,350.00 December
25,2007 4,350.00
Guarante
eing of
joint
liabilit
ies.
15 years No No
Guangdong
Yudean
Shiping Co.,
Ltd.
September
18,2007
（Annou
ncemen
No.:2007-
31）
21,000.00 September
26,2007 10,645.60
Guarante
eing of
joint
liabilit
ies.
6 years No Yes
Yunnan
Baoshan
Binlangjiang
Hydroelectrici
ty
Development
Co., Ltd.
December
19,2007
（Announc
emen
No.:2007-4
4）
12,000.00 March
18,2008 12,000.00
Guarante
eing of
joint
liabilit
ies.
20 years No No
Lincang July 1,372.00 July 29,2008 1,372.00 Guarante 12 years No No22
YuntouYudean
Hydroelectrici
ty
Development
Co., Ltd.
22,2006
（Announc
emen
No.:2006-2
5）
eing of
joint
liabilit
ies.
Guangdong
Yudean
Shiping Co.,
Ltd.
May
16,2008(A
nnounceme
n
No.:2008-2
4）
20,580.00 September
27,2008 2,514.61
Guarante
eing of
joint
liabilit
ies.
5 years No Yes
Yunnan
Baoshan
Binlangjiang
Hydroelectrici
ty
Development
Co., Ltd.
August
22,2008
（Announc
emen
No.:2008-4
4）
5,800.00 October
31,2008 5,800.00
Guarante
eing of
joint
liabilit
ies.
17 years No No
Yunnan
Baoshan
Binlangjiang
Hydroelectrici
ty
Development
Co., Ltd.
November
12,2008
（Annou
ncemen
No.:2008-
54）
7,250.00 November
14,2008 7,250.00
Guarante
eing of
joint
liabilit
ies.
12 years No No
Weixin
Yuntou
Yudean Zhaxi
Energy Co.,
Ltd.
August
29,2009
（Announc
emen
No.:2009-2
8）
8,800.00 March
19,2009 8,800.00
Guarante
eing of
joint
liabilit
ies.
3 years No No
Yunnan
Baoshan
Binlangjiang
Hydroelectrici
ty
Development
Co., Ltd.
May
27,2009
（Announc
emen
No.:2009-1
7）
17,400.00 May
27,2009 7,250.00
Guarante
eing of
joint
liabilit
ies.
14 years No No
Yunnan
Baoshan
Binlangjiang
Hydroelectrici
ty
Development
Co., Ltd.
May
27,2009
（Announc
emen
No.:2009-1
7）
11,600.00 June 22,
2009 9,367.00
Guarante
eing of
joint
liabilit
ies.
20 years No No
Weixin
Yuntou
Yudean Zhaxi
Energy Co.,
Ltd.
August
29,2009
（Announc
emen
No.:2009-2
8）
20,000.00 September
22,2009 20,000.00
Guarante
eing of
joint
liabilit
ies.
5 years No No
Weixin
Yuntou
Yudean Zhaxi
Energy Co.,
Ltd.
February
3,2010
（Announc
emen
No.:2010-0
20,000.00 March
15,2010 10,000.00
Guarante
eing of
joint
liabilit
ies.
4 years No No23
5）
Yunnan
Baoshan
Binlangjiang
Hydroelectrici
ty
Development
Co., Ltd.
May
27,2010
（Announc
emen
No.:2010-3
0）
7,250.00 June 23,
2010 7,250.00
Guarante
eing of
joint
liabilit
ies.
5 years No No
Total amount of approved
external guarantee in the
report period(A1)
39,337.25
Total actually amount of
external guarantee in the
report period(A2)
17,250.00
Total amount of approved
external guarantee at the
end of the report period(A3)
227,246.75.00
Total actually amount of
external guarantee at the
end of the report period(A4)
120,034.21
Guarantee of the company for its subsidiaries
Name of the
company
guaranteed
Related
announcem
ent date
and no.
Amount of
guarantee
Date of
happening(d
ate of
signing
agreement)
Actually
guarantee
amount
Guarantee
type
Guarantee
term
Complete
implement
ation or
not
Guarantee
for related
party(yes or
no)
Total of guarantee for
subsidiaries approved in the
period(B1)
0.00
Total of actual guarantee for
subsidiaries in the period
(B2)
0.00
Total of guarantee for
subsidiaries approved at
period-end(B3)
20,677.50
Total of actual guarantee for
subsidiaries at
period-end(B4)
0.00
Total of company’s guarantee(namely total of the large two aforementioned)
Total of guarantee approved
in the period(A1+B1) 39,337.25 Total of Actual guarantee in
the period(A2+B2 17,250.00
Total of guarantee approved
at the period-end(A3+B3) 247,924.25 Total of actual guarantee at
the period-end（A4+B4） 120,034.21
The proportion of the total amount guarantee in the net
assets of the company(that is A4+B4) 12.21%
Including：
Amount of guarantee for shareholders, Actual controller and
its associated parties(C) 13,160.21
The debts guarantee amount provided for the guaranteed
parties whose assets-liability ratio exceed 70% directly or
indirectly(D)
102,072.00
Proportion of total amount of guarantee in net assets of the
company exceed 50%(E) 0.00
Total guarantee Amount of the abovementioned
guarantees(C+D+E) 115,232.21
Explorations on possibly bearing joint and several
liquidating responsibilities for undue guarantees 无
All the said guarantees were examined and adopted at the shareholders' general meeting of the
Company.
4.Implementations of commitments by the Company, shareholders and actual controller
Items of commitments Promisee Content of commitments Implementation
Promise in share holding structure
reform N/A N/A N/A
Commitments made in Acquisition
Report or Reports on Change in N/A N/A N/A24
interests
Commitments made in Material
assets Reorganization N/A N/A N/A
Commitments made in issuing N/A N/A N/A
Other commitments（Including:
supplementary commitments）
Guangdong
Yudean
Group Co.,
Ltd.
I. According to “Announcement on the Increase in
Shareholding by Controlling Shareholders and their
Persons Action in Concert” (Announcement No.:
2008-46）of our company on September 19, 2008, Yudean
Group and its persons action in concert promise that our
stocks held by them will not be reduced during the
increasing in shareholding plan and legal term.
II.We applied non-public shares issues in 2009, as per the
relevant requirements of China Securities Regulatory
Commission, Yudean Group issued promises based on the
horizontal competition and Related transactions.
(1) Yudean Group made promises for the horizontal
competition on May 21, 2009: 1. Guangdong Electric
power is the main platform of power assets and the key
enterprise of power business development of Yudean
Group, and Yudean Group sustains Guangdong Electric
power’s development on the aspects of research on power
projects, capital running and assets merging. 2. Properly
deal with all kinds of relations between Yudean Group and
Guangdong Electric power based on the principle of being
fair and reasonable. About the daily business operating,
Yudean Group grants the same treatment to Guangdong
Electric power as the other subordinate enterprises. For the
business of substantial competition with us within the same
market, Guangdong Electric power has rights to choose the
following modes of the country’s laws, regulations and the
relevant supervision licenses to solve them. 3. Forbid
acting that isn’t good for Guangdong Electric power and its
shareholders using the status of major shareholders, so that
gradually reducing the horizontal competition with
Guangdong Electric power, and maintaining its good image
in China stock market.
(2)Yudean Group made promises for the affiliated
transaction on July 24, 2009: 1. Yudean Group will try to
avoid producing the affiliated transaction with Guangdong
Electric power in the future. If there exits the Related
transaction occurred inevitably, Yudean Group should
consult with Guangdong Electric power to confirm the
transaction with the contract mode, which would be based
on the principles of equality, liberty, fairness and justness,
Under
fulfillment25
and in accordance with the market prices and conditions. 2.
Yudean Group and Guangdong Electric power will disclose
the information of Related transaction in time strictly
according to the relevant provisions of information
disclosure. 3. If the price of related transaction is provided
in the State Commodity Price Department, state’s price
should be executed; If without the relative provisions, the
transaction parties should negotiate to confirm according to
no beyond the market prices and conditions of similar
transaction in the purpose of maintaining the legal rights of
Guangdong Electric power and its middle-small
shareholders and the transaction counterparts. 4. Yudean
Group ensures that the profits of Guangdong Electric
power aren’t transferred using the Related transaction, and
the legal rights of the listed companies and their
middle-small shareholders cannot be harmed through the
influence on the business decisions of Yue Dian Li. 5.
Yudean Group makes sure that strictly observe the
obviation provisions of the related transaction on the
articles of Guangdong Electric power.
(IX) Other misc. income subjects
Unit：RMB
Items Occurred current term Occurred in previous term
1．Gains(losses)from sellable financial assets -164,519,120.00 164,483,205.00
Less：Income tax influence of sellable financial
assets -41,129,780.00 41,120,801.00
Net amount written into other gains and transferred
into gain/loss in previous terms
Subtotal -123,389,340.00 123,362,404.00
2．Shares in the other misc. income subjects in the
investee on equity basis
Less：income tax influence of shares in other gains
of investees on equity basis
Net amount written into other gains and transferred
into gain/loss in previous terms
Subtotal
3．Amount of gains(or losses) from cash flow
hedge instrument
Less: Income tax influence of cash flow hedge
instruments
Net amount written into other gains and transferred
into gain/loss in previous terms
Adjusted amount transferred to initial amount of
the target project26
Subtotal
4．Difference from translating of foreign currency
financial statements
Less: Net amount of disposing overseas Business
and transferred to current gain/loss
Subtotal
5．Other
Less：Income tax influence by other accounted into
other misc. incomes
Net amount accounted into other misc. income and
transferred into current gain/loss in previous terms
Subtotal
Total -123,389,340.00 123,362,404.00
（X）The Bonds of Company
China construction bank holdings Co., Ltd authorizes its Guangdong branch to issue bonds
interest’s cash for our company, and fully offer the guarantee of unconditional irrevocable and
related duty. During the reporting period, the guarantor continues to obtain earnings, assets scale
keeps increasing, and the credibility is no major disadvantage of change.
During the reporting period, there is no obvious change for the company's credits. At the end of
reporting period, the asset debt ratio of company is 59.95%. We have paid the interest for the
company’s bonds during the second interest period on March 10, 2010. In the future, we will
continue to ensure repayment of capitals and interests of bonds with our business of stable
development.
The trustees of our bonds of China International Finance Co., Ltd have published the report of
annual bond entrusted affairs on June 18 2010. The company's operation, assets, bonds of raised
capital and bonds track and rating are included in this report.
(XI) The special statement and independent opinions of the independent directors of the
Company on fund occupation by related parties and external guarantee of the Company
According to the Circular on Certain Issues Relating to Standardization of Fund Transfer Between
Listed Companies and Their Related Parties and Guarantees Provided by Listed Companies
(Zheng Jia Fa (2003) No. 56 Document), In accordance with the provisions of “Notice on
Regulating the Listed Company of Outside Guarantee”（CSRC No. [2005]20）, the independent
director checked for our funds relationship and outside guarantee with the affiliates, decided that:
As of June 30, 2010, The Company did not provide funds to related parties in violation of
regulations as of the end of the report period. The Company neither provided guarantee to its
controlling shareholder, any unincorporate entity and individual nor provided any guarantee in
violation of regulations.
(XII) The Company's acceptance of investigation and research and interview
1. In the report period, the Company received 6 institutional investors for investigation and
research, held 1 telephone conference and attended one communication meeting organized by a
third party mainly for the purpose of communication in respect of the Company's production and27
operation status in current period and future development plan. The Company did not provide
written materials to the visitors. The Company and relevant information disclosure obligors
strictly followed the principle of fair information disclosure, neither implemented discriminatory
policy, nor disclosed or divulged non-public significant information to specific objects selectively
and privately. They disclosed information according to the principle of timeliness and did not
intentionally choose the time point of disclosure or lighten the effect of information disclosure so
as to cause actual unfairness.
The registration form of acceptance of investigation, communication and interview in the
report period for future reference
Date Place Mode Visitor
Content of discussion and
materials provided
March 5,2010 Office of the
Company
Onsite
investigatio
n
Clients of Zhongjin
Company
Current status of production and
management of the company
March 18,2010 Office of the
Company
Onsite
investigatio
n
Industrial Securities Current status of production and
management of the company
March 31,2010 Office of the
Company
Onsite
investigatio
n
Xinda Securities Current status of production and
management of the company
April 2, 2010 Office of the
Company
Onsite
investigatio
n
Zhongjin Current status of production and
management of the company
April 8,2010 Office of the
Company
Onsite
investigatio
n
CITIC Securities and
Its clients
Current status of production and
management of the company
May 18,2010 Office of the
Company
Onsite
investigatio
n
United Securities Current status of production and
management of the company
June 11, 2010 Shenzhen Participate
in meeting Investor and Analyst Current status of production and
management of the company28
VII. Financial Report（Unandited）
(I)Financial statements
(II)Notes to financial statements29
Balance Sheet
Prepared by：Guangdong Electric Power Development Co., Ltd.
June 30, 2010 Unit：RMB
Year-end balance
Year-beginning balance
Items
Consolidated Parent company Consolidated Parent company
Current asset：
Monetary fund 2,361,285,817.00 693,469,527.00 1,738,834,186.00 287,691,522.00
Settlement provision
Outgoing call loan
Trading financial assets
Bill receivable
Account receivable 1,786,884,297.00 453,207,478.00 1,328,275,383.00 361,710,774.00
Prepayments 1,145,024,130.00 178,423,593.00 795,193,073.00 178,040,453.00
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance
contracts receivable
Interest receivable 126,250.00 786,250.00
Dividend receivable 9,155,096.00 9,155,096.00
Other account
receivable 552,838,484.00 562,848,711.00 561,044,511.00 546,865,973.00
Repurchasing of financial
assets
Inventories 761,441,142.00 161,315,348.00 736,134,391.00 179,038,694.00
Non-current asset due in 1
year
Other current asset
Total of current assets 6,607,600,120.00 2,058,419,753.00 5,160,267,794.00 1,562,502,512.00
Non-current assets：
Loans and payment on
other’s behalf disbursed
Financial assets available for
sale 351,705,550.00 351,705,550.00 516,224,670.00 516,224,670.00
Expired investment in
possess
Long-term receivable 20,616,378.00 20,616,378.00 20,619,671.00 20,619,671.00
Long term share equity
investment 4,684,117,110.00 11,008,423,742.00 4,624,042,593.00 10,473,349,226.00
Property investment 13,060,162.00 13,060,162.00 13,376,477.00 13,376,477.00
Fixed assets 11,775,446,134.00 1,311,862,528.00 12,021,342,945.00 1,375,315,512.00
Construction in progress 6,000,083,467.00 14,560,722.00 5,295,247,439.00 45,469,174.00
Engineering material 1,925,720,316.00 1,938,313,797.00
Fixed asset disposal 9,194,019.00 336,415.00
Production physical assets
Gas & petrol
Intangible assets 364,035,073.00 113,060,590.00 373,775,735.00 114,799,984.00
R & D petrol
Goodwill30
Long-germ expenses to be
amortized
Differed income tax asset 195,771,841.00 2,299,323.00 200,341,031.00
Other non-current asset
Total of non-current assets 25,339,750,050.00 12,835,925,410.00 25,003,284,358.00 12,559,154,714.00
Total of assets 31,947,350,170.00 14,894,345,163.00 30,163,552,152.00 14,121,657,226.00
Current liabilities
Short-term loans 6,402,500,000.00 2,750,000,000.00 3,816,991,742.00 2,550,000,000.00
Loan from Central Bank
Deposit received and hold
for others
Call loan received
Trade off financial
liabilities
Bill payable 807,537,598.00 2,261,920,109.00 432,686,450.00
Account payable 1,357,165,570.00 262,173,307.00 1,010,215,163.00 245,740,456.00
Accounts received in
advance 14,219,753.00 185,003.00
Selling financial assets of
repurchase
Commission charge and
commission payable
Wage payable 355,914,517.00 101,987,787.00 228,548,750.00 79,392,279.00
Taxes payable 53,007,684.00 32,086,183.00 189,248,629.00 95,941,976.00
Interest payable 46,367,665.00 41,229,650.00 99,710,964.00 97,576,494.00
Dividend payable 570,958,291.00 566,028,624.00 12,589,226.00 7,659,560.00
Other accounts
payable 590,277,967.00 103,528,308.00 820,171,127.00 113,088,577.00
Reinsurance payables
Insurance contract reserve
Security trading of agency
Security sales of agency
Non-current liability due in
1 year 259,350,000.00 309,220,000.00
Other current liability
Total of current liability 10,457,299,045.00 3,857,033,859.00 8,748,800,713.00 3,622,085,792.00
Non-current liabilities：
Long-term loan 6,693,680,000.00 7,305,340,000.00
Bond payable 1,987,388,659.00 1,987,388,659.00 1,986,037,444.00 1,986,037,444.00
Long-term payable
Special payable
Expected liabilities
Differed income tax
liability 31,563.00 38,862,020.00 38,830,457.00
Other non-current liabilities 28,153,846.00 26,153,846.00 29,692,308.00 27,692,308.00
Total of non-current
liabilities 8,709,254,068.00 2,013,542,505.00 9,359,931,772.00 2,052,560,209.00
Total of liabilities 19,166,553,113.00 5,870,576,364.00 18,108,732,485.00 5,674,646,001.00
Owners’ equity
Share capital 2,797,451,138.00 2,797,451,138.00 2,659,404,000.00 2,659,404,000.00
Capital reserves 1,883,377,300.00 1,816,507,944.00 1,334,874,325.00 1,268,004,970.00
Less：Shares in stock
Special reserve
Surplus reserves 3,425,241,041.00 3,425,241,041.00 3,159,617,944.00 3,159,617,944.00
Common risk provision31
Undistributed profit 1,723,342,675.00 984,568,676.00 2,117,942,715.00 1,359,984,311.00
Different of foreign
currency translation
Total of owner’s equity
belong to the parent
company
9,829,412,154.00 9,023,768,799.00 9,271,838,984.00 8,447,011,225.00
Minor shareholders’ equity 2,951,384,903.00 2,782,980,683.00
Total of owners’ equity 12,780,797,057.00 9,023,768,799.00 12,054,819,667.00 8,447,011,225.00
Total of liabilities and
owners’ equity 31,947,350,170.00 14,894,345,163.00 30,163,552,152.00 14,121,657,226.00
Legal representative：Pan Li Financial Manager:Li Xiaoqing The person in change of the financial Dept：
Liu Xuemao
Profit statement
Prepared by：Guangdong Electric Power Development Co., Ltd.
January-June 2010 Unit：（RMB）
Report period Same period of the previous year
Items Consolidated Parent company Consolidated Parent company
I.Total operating income 6,251,011,400.00 1,660,327,049.00 5,270,848,337.00 1,268,623,072.00
Including：Operating income 6,251,011,400.00 1,660,327,049.00 5,270,848,337.00 1,268,623,072.00
Interest income
Insurance
gained
Commission charge and
commission income
II.Total operating costt 5,874,981,787.00 1,559,994,562.00 4,904,835,122.00 1,193,802,290.00
Including：Operating cost 5,360,853,100.00 1,379,459,513.00 4,376,208,639.00 1,030,507,068.00
Interest
expense
Commission chare and
commission expense
Cash surrender value
Net amount of expense of
compensation
Net amount of withdrawal
of insurance contract reserve
Bonus expense of guarantee
slip
Reinsurance expense
Operating tax and extras 14,042,641.00 18,677,795.00
Sales expenses 202,227.00 57,805.00 0.00
Administration
expenses 253,021,483.00 67,818,771.00 232,251,375.00 59,908,415.00
Financial expenses 223,470,605.00 114,497,407.00 277,869,391.00 103,386,807.00
Losses of devaluation of
assets 23,391,731.00 -1,838,934.00 -172,078.00
Add ：Changing income of
fair value
Investment income 235,235,052.00 376,755,247.00 179,382,383.00 171,794,904.00
Including：Investment
income on affiliate company32
and joint venture
Exchange income
III. Operating profit 611,264,665.00 477,087,734.00 545,395,598.00 246,615,686.00
Add ：Non-operating income 3,722,833.00 1,561,402.00 2,057,750.00 4,799.00
Less：Non-operating
expense 2,381,521.00 644,876.00 26,700,976.00 743,778.00
Including :Disposal loss of
non-current assets
IV. Total profit 612,605,977.00 478,004,260.00 520,752,372.00 245,876,707.00
Less：Income tax 128,556,650.00 28,306,572.00 88,593,689.00 21,023,851.00
V. Net profit 484,049,327.00 449,697,688.00 432,158,683.00 224,852,856.00
Net profit attributable to
owner’s equity of parent
company
430,513,284.00 449,697,688.00 365,789,341.00 224,852,856.00
Minority shareholders’
gains and losses 53,536,043.00 66,369,342.00
VI. Earnings per share
（i）Basic earnings per
share 0.16 0.14
（ii）Diluted earnings per
share 0.16 0.14
VII. Other comprehensive
income -123,389,340.00 -123,389,340.00 123,362,404.00 123,362,404.00
VIII. Total comprehensive
income 360,659,987.00 326,308,348.00 555,521,087.00 348,215,260.00
Total comprehensive income
attributable to the owner of
the parent company
307,123,944.00 326,308,348.00 489,151,745.00 348,215,260.00
Total comprehensive
income attributable minority
shareholders
53,536,043.00 66,369,342.00
Legal representative：Pan Li Financial Manager:Li Xiaoqing The person in change of the financial Dept：
Liu Xuemao
Cash flow statement
Prepared by：Guangdong Electric Power Development Co., Ltd.
January-June 2010 Unit：（RMB）
Report period Same period of the previous year
Items Consolidated Parent company Consolidated Parent company
I.Cash flows from operating
activities
Cash received from sales
of goods or rending of
services
6,865,360,421.00 1,846,595,084.00 5,474,715,633.00 1,276,951,234.00
Net increase of
customer deposits and capital
kept for brother company
Net increase of loans from
central bank
Net increase of inter-bank33
loans from other financial
bodies
Cash received against
original insurance contract
Net cash received from
reinsurance business
Net increase of client
deposit and investment
Net increase of trade
financial asset disposal
Cash received as interest,
processing fee and
commission
Net increase of
inter-bank fund received
Net increase of
repurchasing business
Tax returned 3,497,724.00 2,000,000.00 86,688.00
Other cash received from
business operation 43,564,581.00 18,907,308.00 638,768,381.00 5,813,419.00
Sub-total of cash inflow 6,912,422,726.00 1,867,502,392.00 6,113,570,702.00 1,282,764,653.00
Cash paid for purchasing
of merchandise and services 4,723,963,576.00 1,278,106,152.00 3,006,696,787.00 461,495,936.00
Net increase of client trade
and advance
Net increase of savings n
central bank and brother
company
Cash paid for original
contract claim
Cash paid for interest,
processing fee and
commission
Cash paid for policy
dividend
Cash paid to staffs or
paid for staffs 417,313,447.00 138,556,350.00 366,569,576.00 136,986,079.00
Taxes paid 629,479,632.00 211,774,247.00 374,316,063.00 107,143,280.00
Other cash paid for business
activities 138,528,722.00 38,441,001.00 131,297,137.00 40,651,119.00
Sub-total of cash outflow
from business activities 5,909,285,377.00 1,666,877,750.00 3,878,879,563.00 746,276,414.00
Cash flow generated by
business operation, net 1,003,137,349.00 200,624,642.00 2,234,691,139.00 536,488,239.00
II.Cash flow generated by
investing
Cash received from
investment retrieving 98,747,925.00 98,747,925.00
Cash received as
investment gains 258,785,655.00 400,305,850.00 177,925,658.00 177,925,658.00
Net cash retrieved from
disposal of fixed assets,
intangible assets, and other
long-term assets
31,392.00 30,906.00 311,759.00 32,000.00
Net cash received from
disposal of subsidiaries or34
other operational units
Other investment-related
cash received 2,779,371.00 28,078,792.00 27,527,732.00
Sub-total of cash inflow
due to investment activities 360,344,343.00 499,084,681.00 206,316,209.00 205,485,390.00
Cash paid for construction of
fixed assets, intangible assets
and other long-term assets
1,430,763,991.00 26,241,767.00 1,431,480,283.00 31,141,983.00
Cash paid as investment 196,250,000.00 672,470,000.00 853,365,940.00 853,335,940.00
Net increase of loan against
pledge
Net cash received from
subsidiaries and other
operational units
Other cash paid for
investment activities 33,185,003.00 48,280.00 177,471,636.00 -12,938,982.00
Sub-total of cash outflow
due to investment activities 1,660,198,994.00 698,760,047.00 2,462,317,859.00 871,538,941.00
Net cash flow generated
by investment -1,299,854,651.00 -199,675,366.00 -2,256,001,650.00 -666,053,551.00
III.Cash flow generated by
financing
Cash received as investment 985,400,000.00 810,400,000.00
Incl: Cash received as
investment from minor
shareholders
Cash received as loans 7,448,880,598.00 2,800,000,000.00 4,247,000,000.00 1,940,000,000.00
Cash received from bond
placing
Other financing –related
ash received 118,943.00 165,406.00
Sub-total of cash inflow
from financing activities 8,434,399,541.00 3,610,400,000.00 4,247,165,406.00 1,940,000,000.00
Cash to repay debts 7,026,670,843.00 3,032,686,450.00 3,924,800,000.00 1,849,000,000.00
Cash paid as dividend,
profit, or interests 487,772,478.00 172,097,534.00 416,295,059.00 160,906,829.00
Incl: Dividend and profit
paid by subsidiaries to minor
shareholders
Other cash paid for
financing activities 787,287.00 787,287.00 1,202,642.00 1,142,642.00
Sub-total of cash outflow
due to financing activities 7,515,230,608.00 3,205,571,271.00 4,342,297,701.00 2,011,049,471.00
Net cash flow generated by
financing 919,168,933.00 404,828,729.00 -95,132,295.00 -71,049,471.00
IV.Influence of exchange rate
alternation on cash and cash
equivalents
V.Net increase of cash and
cash equivalents 622,451,631.00 405,778,005.00 -116,442,806.00 -200,614,783.00
Add: balance of cash and
cash equivalents at the
beginning of term
1,738,834,186.00 287,691,522.00 1,652,319,052.00 271,387,003.00
VI .Balance of cash and cash
equivalents at the end of term 2,361,285,817.00 693,469,527.00 1,535,876,246.00 70,772,220.00
Legal representative：Pan Li Financial ManagerLi Xiaoqing The person in change of the financial Dept：35
Liu Xuemao36
Consolidated Statement of Change in Owners’ Equity
Prepared by：Guangdong Electric Power Development Co., Ltd.
June 30, 2010 Unit：（RMB）
Amount of the Current term Amount of the previous term
Owner’s equity Attributable to the Parent Company Owner’s equity Attributable to the Parent Company
Items Share
Capita
l
Capita
l
reserv
es
Less:
Shares
in
stock
Specia
l
reserv
e
Surplu
s
reserv
es
Com
mon
risk
provis
ions
Attrib
utable
profit
Other
Minor
shareh
olders’
equity
Total
of
owner
s’
equity
Share
Capita
l
Capita
l
reserv
es
Less:
Shares
in
stock
Specia
l
reserv
e
Surplu
s
reserv
es
Com
mon
risk
provis
ions
Attrib
utable
profit
Other
Minor
shareh
olders’
equity
Total
of
owner
s’
equity
I.Balance at the end of
last year
2,659,
404,0
00.00
1,334,
874,3
25.00
3,159,
617,9
44.00
2,117,
942,7
15.00
2,782,
980,6
83.00
12,05
4,819,
667.0
0
2,659,
404,0
00.00
1,417,
680,4
48.00
3,159,
617,9
44.00
1,202,
135,3
76.00
2,684,
695,5
17.00
11,12
3,533,
285.0
0
Add: Change of
accounting policy
Correcting of previous
errors
Other
510,0
00,00
0.00
-89,98
0,849.
00
82,35
6,696.
00
502,3
75,84
7.00
II.Balance at the
beginning of current year
2,659,
404,0
00.00
1,334,
874,3
25.00
3,159,
617,9
44.00
2,117,
942,7
15.00
2,782,
980,6
83.00
12,05
4,819,
667.0
0
2,659,
404,0
00.00
1,927,
680,4
48.00
3,159,
617,9
44.00
1,112,
154,5
27.00
2,767,
052,2
13.00
11,62
5,909,
132.0
0
III.Changed in the
current year
138,0
47,13
8.00
548,5
02,97
5.00
265,6
23,09
7.00
-394,6
00,04
0.00
168,4
04,22
0.00
725,9
77,39
0.00
0.00
85,35
0,448.
00
0.00
206,2
25,10
1.00
-84,45
4,642.
00
207,1
20,90
7.00
（I） Net profit
430,5
13,28
4.00
53,53
6,043.
00
484,0
49,32
7.00
365,7
89,34
1.00
66,36
9,342.
00
432,1
58,68
3.00
（II）Other -123,3 -123,3 85,35 85,3537
misc.income 89,34
0.00
89,34
0.00
0,448.
00
0,448.
00
Total of (I) and (II)
-123,3
89,34
0.00
430,5
13,28
4.00
53,53
6,043.
00
360,6
59,98
7.00
85,35
0,448.
00
365,7
89,34
1.00
66,36
9,342.
00
517,5
09,13
1.00
(III) Investment or
decreasing of capital by
owners
138,0
47,13
8.00
671,8
92,31
5.00
175,0
00,00
0.00
984,9
39,45
3.00
-150,8
23,98
4.00
-150,8
23,98
4.00
1. Capital inputted
by owners
138,0
47,13
8.00
671,7
59,81
5.00
175,0
00,00
0.00
984,8
06,95
3.00
-150,8
23,98
4.00
-150,8
23,98
4.00
2．Amount of shares
paid and accounted as
owners’ equity
3. Other 132,5
00.00 132,5
00.00
（IV）Profit allotment
265,6
23,09
7.00
-825,1
13,32
4.00
-60,13
1,823.
00
-619,6
22,05
0.00
-159,5
64,24
0.00
-159,5
64,24
0.00
1.Providing of surplus
reserves
265,6
23,09
7.00
-265,6
23,09
7.00
2.Providing of common
risk provisions
3．Allotment to the
owners (or shareholders)
-559,4
90,22
7.00
-60,13
1,823.
00
-619,6
22,05
0.00
-159,5
64,24
0.00
-159,5
64,24
0.00
4．Other
(V) Internal transferring
of owners’ equity
1. Capitalizing of
capital reserves (or to
capital shares)38
2. Capitalizing of
surplus reserves (or to
capital shares)
3．Making up losses by
surplus reserves.
4. Other
(VI) Special reserves
1. Provided this year
2．Used this term
IV. Balance at the end of
this term
2,797,
451,1
38.00
1,883,
377,3
00.00
0.00 0.00
3,425,
241,0
41.00
0.00
1,723,
342,6
75.00
0.00
2,951,
384,9
03.00
12,78
0,797,
057.0
0
2,659,
404,0
00.00
2,013,
030,8
96.00
3,159,
617,9
44.00
1,318,
379,6
28.00
2,682,
597,5
71.00
11,83
3,030,
039.0
039
Parent Company Statement on Change in Owners’ Equity
Prepared by：Guangdong Electric Power Development Co., Ltd.
June 30, 2010 Unit：（RMB）
Amount of the Current term Amount of the previous term
Items Share
Capital
Capital
reserves
Less:
Shares
in stock
Special
reserve
Surplus
reserves
Commo
n risk
provisio
ns
Attribut
able
profit
Total of
owners’
equity
Share
Capital
Capital
reserves
Less:
Shares
in stock
Special
reserve
Surplus
reserves
Commo
n risk
provisio
ns
Attribut
able
profit
Total of
owners’
equity
I.Balance at the end of
last year
2,659,4
04,000.
00
1,268,0
04,970.
00
3,159,6
17,944.
00
1,359,9
84,311.
00
8,447,0
11,225.
00
2,659,4
04,000.
00
1,403,4
31,891.
00
3,159,6
17,944.
00
760,625
,418.00
7,983,0
79,253.
00
Add: Change of
accounting policy
Correcting of previous
errors
Other
II.Balance at the
beginning of current year
2,659,4
04,000.
00
1,268,0
04,970.
00
3,159,6
17,944.
00
1,359,9
84,311.
00
8,447,0
11,225.
00
2,659,4
04,000.
00
1,403,4
31,891.
00
3,159,6
17,944.
00
760,625
,418.00
7,983,0
79,253.
00
III.Changed in the
current year
138,047
,138.00
548,502
,974.00
265,623
,097.00
-375,41
5,636.0
0
576,757
,573.00 0.00 123,362
,404.00
65,288,
616.00
188,651
,020.00
（I） Net profit 449,697
,688.00
449,697
,688.00
224,852
,856.00
224,852
,856.00
（II）Other
misc.income
-123,38
9,340.0
0
-123,38
9,340.0
0
123,362
,404.00 123,362
,404.00
Total of (I) and (II)
-123,38
9,340.0
0
449,697
,688.00
326,308
,348.00
123,362
,404.00
224,852
,856.00
348,215
,260.00
(III) Investment or
decreasing of capital by
owners
138,047
,138.00
671,892
,314.00
809,939
,452.0040
1. Capital inputted
by owners
138,047
,138.00
671,759
,814.00
809,806
,952.00
2．Amount of shares
paid and accounted as
owners’ equity
3. Other 132,500
.00
132,500
.00
（IV）Profit allotment 265,623
,097.00
-825,11
3,324.0
0
-559,49
0,227.0
0
-159,56
4,240.0
0
-159,56
4,240.0
0
1.Providing of surplus
reserves 265,623
,097.00
-265,62
3,097.0
0
2.Providing of common
risk provisions
3．Allotment to the
owners (or shareholders)
-559,49
0,227.0
0
-559,49
0,227.0
0
-159,56
4,240.0
0
-159,56
4,240.0
0
4．Other
(V) Internal transferring
of owners’ equity
1. Capitalizing of
capital reserves (or to
capital shares)
2. Capitalizing of
surplus reserves (or to
capital shares)
3．Making up losses by
surplus reserves.
4. Other
(VI) Special reserves
1. Provided this year
2．Used this term41
IV. Balance at the end of
this term
2,797,4
51,138.
00
1,816,5
07,944.
00
0.00 0.00
3,425,2
41,041.
00
0.00 984,568
,675.00
9,023,7
68,798.
00
2,659,4
04,000.
00
1,526,7
94,295.
00
3,159,6
17,944.
00
825,914
,034.00
8,171,7
30,273.
0042
Schedule of Asset Depreciation Reserve
Prepared by：Guangdong Electric Power Development Co., Ltd. June 30,2010
Unit:RMB
Decrease in this period
Items Book balance
in year-begin
Increased
amount in this
period Transfer-in Transfer-out
Book balance
in period-end
I.Provision for bad debts 17,545,236 230,665 10,594,866 7,181,035
II.Provision for falling price of
inventory 6,902,651 6,902,651
III.Provision for devaluation
offinancial asset available for
sales
IV.Provision for devaluation of
held-to maturity investment
V.Provision for devaluation of
long-term equity investment
VI.Provision for devaluation
ofinvesting property
VII.Provision for devaluation
offixed assets 236,684,089 25,000,000 4,114,011 257,570,078
VIII.Provision for devaluation of
engineering materials
IX.Provision for devaluation
ofcontruction in progress
X.Provision for devaluation of
productive biological assets
Including：Provision for
devaluation of mature productive
biological assets
XI.Provision for devaluation of oil
assets
XII.Provision for devaluation of
intangible assets
XIII.Provision for devaluation of
goodwill
XIV.Other
Total 261,131,976 25,230,665 10,594,866 4,114,011 271,653,76443
Guangdong Electric Power Development Co., Ltd.
Notes to Financial Statement
For Semi-annual 2010
I.General information
Guangdong Electric Power Development Co., Ltd. ("the Company") is a joint stock limited
company jointly sponsored and established by Guangdong Electric Power Group Company,
Guangdong Trust Investment Company under Construction Bank of China, Guangdong Electric
Power Development Company, Guangdong International Trust Investment Company and
Guangdong Development Bank (now as Guangdong Guangkong Co., Ltd.). At the time of
establishment, the registered capital of the Company was 356,250,000 ordinary shares with par
value of RMB 1 per share.
The Company issued RMB 44,000,000 Denominated Domestic Shares (“A Shares”)
and Demestically Listed Foreign Shares (“B Shares”) on Shenzhen Stock Exchange
on November 26, 1993 and June 28, 1995 respectively. After this issurance, the share
capital of the Company increased to RMB 505,250,000.
In 2001, prusuant to the approval on the implementation Plan of Guangdongrovince’s
Reform of power industry structure Relating to Restructuring of Generation and
Transmission Assets, a document issued by Guangdong Provincial Government and
referred to as Yue Fu Han 2001 No.252, Guangdong Electric Power Holding
Co.( “GPHC”), the former major shareholder of the Company, was split into two
separate companies, namely, Guangdong Power Grid Corporation
( “GPGC”,formerly Guangdong Guangdian Group Co., Ltd.”), and Guabngdong
Yudean Group Co., Ltd.(“Yudean” formerly Guangdong Yuedian Assets
Management Co., Ltd.”). After restructuring, the electrictity transmission and
distribution in Guangdong Province, The PRC, were controlled and managed by
GPGC, while Yudean concentrated in the investment and management of power
plants. According to the Reply to issues in the Restructuring of Provincial Power
Companies assets with a document number of Yue Cai Qi (2001)No.247, the
Company’s 50.15% equity interest formerly held by GPHC was transferred to
Yudean on 1 August 2001.
According to Yue Guo Zi Han (2005) No. 452 Document, i.e., Official Reply to Issues Concerning
Share Holding Structure Reform of Guangdong Electric Power Development Co., Ltd., issued by
State-owned Assets Regulatory Commission under Guangdong People's Government, the
Company carried out share holding structure reform on January 18, 2006. All shareholders holding
non-negotiable shares paid 3.1 shares for every 10 shares to shareholders holding negotiable A
shares registered on the equity change registration day (January 18, 2006) specified in the plan for
share holding structure reform as consideration. 121,357,577 corporate shares were paid in total.44
From January 19, 2006, all corporate shares of the Company can be listed and traded at Shenzhen
Stock Exchange. However, sale restriction period of 1-3 years was specified. Due to these
restricted conditions, As of June 30, 2010, there were still 5, 885, 259 shares of legal shares not
traded which were originally held by the non-tradable shareholders, after the non-tradable share
reform, the stock shares which were owned by Yudean. Reduced from 50.15% to 46.34%.
According to “Approval of Non-publicly Issued Shares for Guangdong Power Development Co.,
Ltd”（CSRC License No. [2010]376）on March, 2010, China Securities Regulatory Commission
approved that our non-publicly issued stocks should not more than 20 billion A shares. The
non-publicly issued A shares of parties, Yudean Group actually purchase 138,047,138 of A shares.
After the non-public issued, the stock shares which were owned by Yudean Group Increased from
46.34% to 48.99%
The Company and its subsidiaries (the “Group”) are principally engaged in the susiness of
developing electric power plants in Guangdong Province, the PRC. The Company’s registered
address is 23 to 26 floor, Yuedian Plaza, 2 Tianhe East Road, Guangzhou City, Guangdong
Province, The PRC.
II. Summary of significant accounting policies and accounting estimates
1. Compilation basis of financial statements
The financial statements is formulated according to Item 38: specific
accounting standards from “Corporate Accounting Standards—basic principles” issued
by Ministry of Finance on Feb., 15, 2006, corporate accounting standards application guide,
corporate accounting standards explanation and other related regulations (Hereinafter referred to
be “corporate accounting standards”) issued later.
2.Fiscal year
Fiscal year is dated from Gregorian calendar Jan., 1 to Gregorian calendar Dec., 31.
3.Recording currency
Recording currency is RMB.
4.Business Combinations
(a) Business combinations involving enterprises under common control
The consideration paid and net assets obtained by the absorbing party in a business
combination are measured at the carrying amount. The difference between the
carrying amount of the net assets abtained and the carrying amount of the
consideration paid for the combination is treated as an adjustment to capital surplus, if
the capital surplus is not sufficient to absorb the diference, the remaining balance is
adjusted aginst retained earnings.
Costs directly attributable to the combination are included in profit or loss in the45
period in which they are incurred.
(b) Business combinations involving enterprises not under common control
The cost of combination and identifiable net assets obtained by the acquirer in a
business combination are measured at the fair value at the acquisition date. Where the
cost of the combination exceeds the acquirer’s interest in the fair value of the
acquiree’s identifiable net assets, the difference is recognised as goodwill; where the
cost of combination is lower than the acquirer’s interest in the fair value of the
acquiree’s identifiable net assets, the difference is recogrised in profit or loss for the
current period.
Costs directly attributable to the combination are included in the cost of combination.
5.Preparation of consolidated financial statements
The consolidated financial statements comprise the financial statements of the
company and its subsidiaries.
Subsidiaries are fully consolidated from the date on which the Group obtains
controland are de-consolidated from the date that such control ceased. For a
subsidiary acquired in a business combination involving enterprises under common
control. Its is included in the consolidated financial statements from the date when it,
together with the Company.. came under common control of the ultimate controlling
party . The portion of the net profits realized before the combination date is
presented separately in the consolidated income statement.
The financial statements of subsidiaries are adjusted in accordance with the
accounting policies and accounting period of the Company during the preparation of
the consolidated financial statements, where the accounting policies and the
accounting periods are inconsistent between the Company and subsidiaries. For
subsidiaries acquired from a business combination 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 inter-group balances, transactions and unrealized profits are
eliminatedin the consolidated financial statements, the portion of a subsidiary’s
equity and the portion of a subsidiary’s net profits and lossets for the period not held
by the Company are recognized as minority interests and presented separately in the
consolidated balance shreet within equity and net profit respectively.
6. Cash and cash equivalents
The cash listed in cash flow table refers to stored cash and payable deposit
whenever,the term “ cash “ refers to cash on hand and deposits that are available for
payment at any time. The term : cash equivalents” refers to short-term and highly46
liquid investments that are readily convertible to known amounts of cash and which
are subject to an insignificant risk of change in value.
7.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 currency are
translated into RMB using the spot exchange rate on the balance sheet date. Exchange
differences arising from these translations are recognized in profit or loss for the
current peiod, except for those attributable to foreign currency borrowings that have
been taken out specifically for the acquisition or construction of qualifying assets,
which are capitalized as part of the cost of those assets. Non-monetary items
denominated in foreign currency that are measured in terms of historical cost are
translated at the balance sheet date using the sopt exchange rate at the date of
transaction. The effect of exchange rate changes on cash is presented separately in the
cash flow statement.
8.Financial instrument
(1)Financial assets
(i)Classification
Financial assets are classified into the following categories at initial recognition:
financial assets at fair value through profit or low, receivables, available –for –sale
financial assets and held-to-maturity investments. The classification of financial assets
depends on the Group’s intention and ability to hold the financial assets. During 2010,
other than receivables and available-for –sale financial assets, the Group did not hold
any financial assets in other categories.
Account receivables
Account receivables, including accounts receivable and other receivables, are
non-derivative financial assets with fixed or determinable payments that are not
quoted in an active market.
Available-for-sale financial assets
Available-for-sale financial assets are non-deriative financial assets that are either
designated in this category or not classified in any of the other categories at initial
recognition. Available-for –sale financial assets are included in other current assets in
the balance sheet if management intends to dispose of them within 12 months of the
balance sheet date.
(ii)Recognition and measurement
Financial assets are recognized at fair value on the balance sheet when the Group
becomes a party to the contractual provisions of the financial instrument, for47
receivables and available-for-sale financial assets, transaction costs that are
attributable to the acquisition of the financial assets are included in the their initial
recognition amounts
Financial assets at fair value through profit or loss and available-for-sale financial
assets are subsequently measured at fair value. Investments in equity instruments are
measured at cost when they do not have a quoted market price in an active market and
whose air value cannot be reliably measured. Receivables are measured at amortised
cost using the effective interest methord.\
Again or loss arising from a change in fair value of an available-for-sale financial
asset is recognized directly in equity , except for impairment lossets and foreign
exchange gains and losses arising from the translation of monetary financial assets.
When such financial asset is derecognized, the cumulative gain or loss previously
recognized in equity is recognized in profit or loss for the current peiod, Interests on
available-for –sale investments in debt instruments calculated using the effective
interest method during the period in which such investments are held and cash
dividends declared by the investee on available-for –sale investments in equity
instruments are recognized as investment income in profit or loss.
(iii)Impairment of financial assets
The Group assesses the carrying amount of a financial asset other than that at fair
value through profit or loss at each balance sheet date. If there is objective evidence
that the financial asset is impaired, the Group shall determine the amount of any
impairment loss.
If an impairment loss on a financial asset carried at amortised cost has been
incurred,the amount of loss is measured at the difference between the asset’s
carrying amount and the present value of estimated future cash flows (Eccluding
future credit losses that have not been incurred), if there is objective evidence that
the value of the financial assets recovered and the recovery is related objectively to
an event occurring after the impaiment was recognized, the previously recognized
impairment loss is reversed and the amount of reversal is recognized in profit or loss.
In the case of a significant or prolonged decline in the fair value of an
available-for-sale financial assets, the cumulative loss arising from the decline in fair
value that had been recognized directly in equity is removed from equity and
recognized in impairment loss. For an investment in debt instrument classified as
available-for-sale on which impairment losses have been recognized, if in a
subsequent period, its fair value increases and the increase can be objectively related
to an event occurring after the impairment loss was recognized in profit or loss, the
previously recognized impairment loss is reversed and recognized in profit or loss for
the current period, for an investment in an equity instrument classified as
available-for-sale on which impairment losses have been recognized, if , in a
subsequent peiod, its fair value increases and the increase can be objectively related to48
and event occurring after the impairment loss was recognized in profit or loss, the
previously recognized impairment loss is reversed and directly recognized in equity.
(iv)Derecognition of financial assets
Financial assets are derecognized when:i) the contractual arights to receive the cash
flows from the financial assets have expired; or ii) all substantial risks and rewards of
ownership of the financial assets have been transferred; or iii) the control over the
financial asset has been waived even if the Group does not transfer or retain nearly all
of the risks and rewards relating to the ownership of a financial assets.
On derecognition of a financial assets, the difference between the carrying amount
and the aggregate of consideration received and the accumulative amount of the
changes of fair value originally recorded in the owner’s equity is recognized in profit
or loss.
(2)Financial liabilities
Financial liabilities are classified into the following categories at initial recognition:
the financial liabilities at fair value through profit or loss and other financial liabilities,
During 2010, The financial liabilities in the Group mainly comprise other financial
liabilities, including payables and lorrowings.
Payables comprise accounts payable and other payables, which are recognized
initially at fair value and measured subsequently at amortised cost using the effective
interest method, accounts payable are classified as current liabilities if payment is due
within one year or less. If not , they are presented as non-current liabilities.
Borrowings are recognized initially at fair value, net of transaction costs incurrend,
and subsequently carried at amortised costs using the effective interest methor.
Borrowings are classified as the short-term borrowings if thety mature within one year
(one year included); others are classified as long-term bowwowings; long-term
borrowings due for repayment within one year since the balance sheet day are
classified as current portion of non-current liabilities.
A financial liability is derecognized when and only when the obligation specified in
the contrat is discharged or cancelled. The difference between the carrying amount
of a financial liability extinguished and the consideration paid is recognized in profit
of loss.
(3)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 for which the market Is not active is determined by using a valuation
technique. Valuation techniques include using prices of recent market transactions
between knowledgeable, willing parties, reference to the current fair value of another
financial asset that is substantially the same with this instrument, and discounted cash
flow analysis. When avaluation technique is used to establish the fair value of a49
financial instrument, use market data as much as possible and avoid use of data that is
particularly reated to the Group .
9.Account receivables
Account receivables comprise accounts receivable and other receivables. Accounts
receivable arising from sale of Goods or rendering of services are initially recognized
at fair value of the contractual payments from the buyer.50
(a) Bad debt recognition and measurement method
--Bad debt recognition criterion
For all receivables, separately perform impairment testing. When objective
evidence indicates the Group can’t receive money according original terms,
provision for bad debts recognized .
— Bad debts provision method
The bad debt will be recognized when the present value of estimated future cash
flow below their book value.
(b) When the Group transfers the accounts receivable to financial
institutions without recourse, the difference between proceeds
derived from the transaction, net of the carrying amounts of the
accounts receivable and relevant taxes is recognized in profit or loss
for the current period.
10.Inventory
(1)Classcification
Inventories mainly include fuel and spare parts, and are presented at the lower of
costand net realizable value.
(2)The valuation method of inventories
Cost is determined using the weighted average method.
(3)The method of determination of net realizable value of inventory and impairment
Provisions for declines in the value of inventories are determined at the carrying
valueof the inventories net of their net realizable value. Net realizable alue is
determined based on the estimated selling price in the ordinary course of business,
less the estimated costs to completion and wstimated costs necessary to make the
sale and relevant taxes.
(4)The group adopts perpetual inventory system.
11.Long-term Equity Investments
Long-term equity investments comprise the Company’s long-term equity
investmentsin its subsidiaries, the Group’s long-term equity investments in its
associates as well as the long-term equity investment where the Group does not have
control, joint control or significant influence over the investees, and which are not
aquoted in an dactive market and whose fair value cannot be reliable measured.51
Subsidiaries are all investees oer which the Company is able to control; associates
areal investees that the Group has significant influence on their financial and
operating policies.
Investments in subsidiaries are measured using the cost method in the Company’s
financial statements, and adjusted using the equity method when preparing the
consolidated financial statements; investments in associates are accounted for using
the equity method; other long-term equity investments there the Group does not have
control, joint control or significant influence over the investee, and which are not
quoted in an active market and whose fair vale cannot be relably measured are
accounted for using the cost method.
(1)Determining initial investment cost
Long-term equity investments accounted for using the cost method are measured at
the initial investment cost. 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 ivestment
is initially measured at 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 ivestment is adjusted accordingly.
(2)Subsequent accounting and recognition of profit or loss
For long-term equity investments accounted for using the cost method, investment
income is recognized in profit or loss for the cash dividends or profit declared by the
investee.
When using the equity method of accounting, the Group recognized the investment
income based on its share of net profit or loss of the investee. The Group discontinues
recognizing its share of net losses of an investee after the carrying amount of the
long-term equty investment together with any long-term interests that, in substance,
form part of the investor’s net investment in the investee are reduced to zero.
However, if the Group has obligations for additional losset and the conditions on
recognition of provision are satisfied in accordance with the accounting standards on
contingencies, the Group continues to recognize the investment losses and the
provision. For changes in owner’s equity of the investee other than those arising form
its net profit or loss, the Group record directly in capital surplus its proportion,
provided that the Group’s proportion of shareholding in the investee remains
unchanged . the carrying amount of the investment is reduced by the Group ‘s share of
the profit or cash dividends declared by and investee. The unrealized profits or losses
arising from the intra-group transactions between the Group and its investees are
eliminated to the extent of the Group’s interest in the investees, on the basis of which
the investment gain or losses are recognized.The loss on the intra-group transaction
between the Group and its investees, of which the nature is asset impairment , is52
recognized in full amount, and the relevant unrealized gain or loss is not allowed to be
eliminated.
(3)Determining control, joint control, significant influence over investees
Control means that the investor has the power to govern the financial and operating
policies so as to obtain benefits from their operating activities. The existence and
effect of potential voting rights (including that derived from the convertible boods and
warrants that are currently convertible or exercisable ) are considered to determine
whether the Group has control over the investee.
Joint control means that the investor has contractual obligation to control a certain
economic activity, while such control only exists when the significant financial and
operating policies relating to that activing are agreed upon by all investors sharing
that control.
Significant influence means that the investor has the right to participate in the
determination of the investee’s financial and operating policies, but cannot control or
joint control with other parties on the determination of these policies.53
(4)Impairment of long-term equity investments
The carrying amount of long-term equity investments in subsidiaries and associates
isreduced to the recoverable amount when the recoverable amount is less than the
carrying amount (Note 2(18)). When the long-term investments which are not quoted
in an active market and whose fair value cannot be reliable measured have
impaiment, the impairment loss is recognized at the differences between carrying
amounts and the present value of future cash flow discounted using the prevailing
market returmn rate on similar financial assets. Once the impairment loss is
recognized, it is not allowed to be reversed for the value recovered in the subsequent
periods.
12.Investment property
Investment property, including buildings that held for the purpose of lease , is
measured initially at cost. Subsequent expensitures incurred for and investment
property is included in the cost of the investmentproperty when it is probable that
economic benefits associated with the investment property will flow to the Group and
its cost can be reliable measured, otherwise the expenditure is recognized in profit or
loss in the period in thich they are incurred.
The Group adopts the cost model for subsequent measurement of the investment
property. Buildings and lond use rights are depreciated or amortised to their estimated
net residual values over their estimated useful lives. The estimated useful ives, the
estimated net residual values expressed as a percentage of cost and the annual
depreciation rates of theinvestment properties are as follows:
Estimated useful liv
es
Estimated residu
al value
Annual depre
ciation rate
Building 30 years 5% 3.17%
When an investment property is changed to an owner-occupied property, it is
transferred to fixed asset at the date of the change. When an owner-occupied property is
changed to be held to earn rentals or for capital appreciation, the fixed asset is
transferred to investment property at the date of the change at the carrying amount of
the property.
The estimated useful life, net residual value of the investment property and the
depreciation method applied are reviewed, and adjusted as appropriate at each
financial year-end.54
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 amount of proceeds on sale, transfer, retirement or damage of
an investment property less its carrying amount and related taxes and expenses is
recognised in profit or loss for the current period.
When the recoverable amount of investment real estate less than its carrying value,
book value is reduced to its recoverable amount (Notes 2 (17)).55
13.Fixed assets
(1)Initial recognization and measurement
Fixed assets comprise buildings, electric utilities in service, motor vehicles and other
equipments.
A fixed asset is recongnized when it is probable that the economic benefits associated
with the fixed assets will flow to the Group and its cost can be reliably measured.
Fixed assets purchased or constructed by the Group are initially measured at cost at
the time of acquisition. Fixed assets contributed by the State-owned shareholders at
the incorporation of a limited company are initially recorded at the valuation amount
recognized by the State-owned assets supervision and administration department.
Subsequent expenditures incurred for a fixed asset are included in the cost of the fixed
asset when it is probable that the economic benefits associated with the fixed asset
will flow to the Group and its cost can be reliably measured. The carrying amount of
those parts that are replaced is derecognized and all the other subsequent expenditures
are recognised in profit or loss in the period in which they are incurred.
(2)Depreciation method
Fixed assets are depreciated using the straight-line method to allocate the cost of the
assets to their estimated residual values over their estimated useful lives. For the fixed
assets being provided for impairment loss, the related depreciation charge is
prospectively determined based upon the adjusted carrying amounts over their
remaining useful lives. The estimated useful lives, the estimated residual values
expressed as a percentage of cost and the annual depreciation rates are as follows:
Estimated useful lives Estimated residu
al value
Annual depreciation rate
Buildings 22-30 years 5% 3.17%-4.32%
Electric Utilities in
service
8-18 years 5% 5.28%-11.88%
Motor vehicles 10 years 5% 9.5%
Other equipment 13 years 5% 7.31%
The estimated useful life, the estimated net residual value of a fixed asset and the
depreciation method applied to the asset are reviewed, and adjusted as appropriate at
least at each financial year-end.56
(3)When the recoverable amount of investment real estate less than its carrying value,
book value is reduced to its recoverable amount (Notes 2 (17)).
(4)Fixed assets disposal
A fixed asset is derecognised on disposal or when no future economic benefits are
expected from its use or disposal. The amount of proceeds 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 cost, borrowing costs that are eligible for capitalization
and other costs necessary to bring the the fixed assets ready for their intended use.
Construction in progress is transferred to fixed assets when the assets are ready for
their intended use, and depreciation begins from the following month. The carrying
amount of construction in progress is reduced to the recoverable amount when the
recoverable amount is less than the carrying amount (Notes 2(17)).
15. Borrowing costs
The borrowing costs that are directly attributable to the acquisition and construction
of a fixed asset that needs a substantially long period of time of acquisition and
construction 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, 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 a fixed asset is interrupted
abnormally and the interruption lasts for more than 3 months, until the acquisition or
construction is resumed.
For a borrowing specific for the acquisition, construction or production activities for
preparing an asset eligible for capitalisation, the to-be-capitalised borrowing costs
shall be determined according to the actual borrowing costs incurred less any income
earned on the unused borrowing fund as a deposit in the bank or as a temporary
investment.
For the other borrowings related to acquisition, construction and production of a
qualifying asset, the amount of to-be-capitalised borrowing costs shall be the lower of
the actual borrowing costs incurred and the amount of qualifying asset not financed
by specific borrowings multiplying capitalisation rate. The capitalisation rate is the
weighted average interest rate of these borrowings.57
16.Intangible assets
Intangible assets including land use rights, sea use rights, software and associated
projects for electricity transmission and transformation are measured at cost.
Intangible assets contributed by the state-owned shareholders at the incorporation of a
limited company are initially recorded at the valuation amount recognized by the
state-owned assets supervision and administration department.
(1)Land use rights (“LUR”) and sea use lights
LUR acquired are amortized on the straight-line basis over 20 to 50 years. If the
purchase costs of LUR and attached buildings cannot be reliably allocated between
the LUR and buildings, for the purchase costs are recognised as fixed assets.
Sea use rights acquired are amortized on the straight-line basis in 50 years.
(2)Other Intangible assets
Other intangible assets acquired except for LUR and sea use rights are amortized on
the straight-line basis over 2 to 20 years according to their estimated useful lives.
(3) Periodical review of useful life and amortisation method
For an intangible asset with a finite useful life, review and adjustment on useful life
and amortization method are performed at each year-end.
(4)Impairment of intangible assets
The carrying amount of intangible assets is reduced to the recoverable amount when
the recoverable amount is less than the carrying amount (Notes 2(17)).
17.Impairment of long-term assets
Fixed assets, construction in progress, intangible assets with finite useful lives,
investment properties measured using the cost model and long-term equity
investments in subsidiaries and associates are tested for impairment if there is any
indication that an asset may be impaired at the balance date. If the result of the
impairment test indicates that the recoverable amount of the asset is less than its
carrying amount, a provision for impairment and an impairment loss are recognised
for the amount by which the asset’s carrying amount exceeds its recoverable amount.
The recoverable amount is the higher of an asset’s fair value less costs to sell and the
present value of the future cash flows expected to be derived from the asset. A
provision for asset Impairment is determined and recognised on an individual asset58
basis. If it is not possible to estimate the recoverable amount of an individual asset,
the recoverable amount of the 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.
Separately recognised goodwill is tested at least annually for impairment, irrespective
of whether there is any indication that the asset may be impaired. During the test, the
carrying value of goodwill is allocated to the related asset group or groups of asset
group which is 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 groups
of asset group including the goodwill allocated is lower than its carrying amount, the
corresponding impairment loss is recognized. The impairment loss is first deducted
from the carrying amount of goodwill allocated to the asset group or groups of asset
group, and then deducted from the carrying amount of the remaining assets of the
asset group or groups of asset group pro rata with goodwill.
Once the asset impairment loss mentioned above is recognised, it is not allowed to be
reversed for the value recovered in the subsequent periods.
18.Employee benefits
Employee benefits mainly include wages or salaries, bonuses, allowances and subsidies, staff
welfare, social security contributions, housing funds, labour union funds, employee education
funds and other expenditures incurred in exchange for service rendered by employees.
If the Group terminates the labor relationship with any employee prior to the expiration of the
relevant labor contract or makes a severance package proposal with the purpose of enticing the
employees to willingly accept such a termination, and the following conditions are concurrently
satisfied, the Group shall recognize the liabilities to be incurred due to severance pay, and shall at
the same time record them in the profit and loss of the current period.
Except for the compesation for termination of labor relationship, employee benefits are recognised
as a liability in the accounting period in which an employee has rendered service, and as costs of
assets or expenses to whichever the employee service is attributable.
19.Dividend distribution
Proposed Dividend distribution is recognised as a liability in the period in which it is approved by
the shareholders’ meeting.
20.Estimated liabilities
Provisions for product warranties, onerous contracts are recognised when the Group59
has a present obligation, and 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.
21.Revenue recognition
The amount of revenue is determined in accordance with the fair value of the
consideration received or receivable for the sale of goods and services in the ordinary
course of the Group’s activities. Revenue is shown net of value-added tax, rebates,
discounts and returns.
Revenue is recognised when the economic benefits associated with the transaction
will flow to the Group, the relevant revenue can be reliably measured and specific
revenue recognition criteria have been met for each of the Group’s activities as
described below:
(1)Sale of electricity and heat energy
Revenue is recognised upon transmission of electricity or heat energy.
(2) Rendering of services
The Group provides service to external parties and determines the stage of completion
based on proportion of costs incurred to date to the estimated total costs. Revenue is
recognised using the percentage of completion method.
(3)Transfer of asset use rights
Interest income is recognised on a time-proportion basis, the cash at bank and on hand
of the Group used by other parties, using the effective interest method.
Income from an operating lease is recognised on a straight-line basis over the period
of the lease.
22.Goernment subsidies60
Government subsidy means the monetary or non-monetary assets obtained freely by
an enterprise from the government, including tax returns, financial subsidies.
Government subsidy is recognized unless the additional condition can be met and the
subsidy can be received by the corporation. If the government subsidy is a monetary
asset, it will be measured in the light of the received or receivable amount, if the
government subsidy is a non-monetary asset, it shall be measured at its fair value. If
its fair value cannot be obtained in a reliable way, it will be measured at its nominal
amount.
The government subsidies pertinent to assets will be recognized as other non-current
debt-deferred income, equally amortized within the useful lives of the relevant assets
and recognized as profit and loss at the same time. The government subsidies
measured at their nominal amounts will be directly recognized as profit and loss in the
current period.
The government subsidies pertinent to incomes, those subsidies used for
compensating related future expenses or losses will be recognized as deferred income
and recognized as profit and loss during the period when the relevant expenses are
recognized; those subsidies used for compensating related expenses or losses already
existed will be directly recognized as income or cost in the current period.
23.Deferred tax assets and liablities
Deferred tax assets and deferred tax liabilities are calculated and recognised based on
the differences arising between the tax base of assets and liabilities and their carrying
amount (temporary differences). Deferred tax asset is recognized for the deductible
losses that can be carried forward to subsequent years for deduction of the taxable
profit in in accordance with the tax law. 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 recognized for the temporary differences resulting
from the initial recognition of assets or liabilities due to a transaction other than a
business combination, which affects neither accounting profit nor taxable profit (or
deductible loss) At the balance sheet date, deferred tax assets and deferred tax
liabilities are measured at the tax rates that are expected to apply to the period when
the asset is realised or the liability is settled.
Deferred tax assets are only recognised for deductible temporary differences,
deductible losses and tax credits to the extent that it is probable that taxable profit
will be available in the future against which the deductible temporary differences,
deductible losses and tax credits can be utilised.61
Deferred tax liabilities are recognised for temporary differences arising from
investments in subsidiaries and associates, except where the Group is able to control
the timing of the reversal of the temporary difference, and it is probable that the
temporary difference will not reverse in the foreseeable future. When it is probable
that the temporary differences arising from investments in subsidiaries, joint
ventures and associates 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 utilized, the corresponding deferred tax assets are recognized.
Deferred tax assets and liabilities are offset and presented on net basis when:
(a)The deferred taxes are relate to the same tax payer within the group and same fiscal
authority, and;
(b)That tax payer has a legally enforceable right to offset current tax assets against
current tax liabilities.
24.Leases
A finance lease is a lease that transfers substantially all the risks and rewards
incidental to ownership of an asset. An operating lease is a lease other than a finance
lease. Lease payments under an operating lease are recognised on a straight-line basis
over the period of the lease, and are either capitalised as part of the cost of related
assets, or charged as an expense for the current period.
25.Segment information
The Group identify operating segments based on the internal organization structure,
management requirement and internal reporting, then disclose segment information of
reportable segment which is based on operating segment.
An operating segment is the component of the Group that all of the following
conditions are satisfied:
(1) that component can earn revenues and incur expenses from ordinary activities;
(2) whose operating results are regularly reviewed by the Group’s management to
make decisions about resources to be allocated to the segment and assess its
performance, and (3) for which the information of financial position, operating results
and cash flows is available to the Group. If two or more operating segments have
similar economic characteristics, and certain conditions are satisfied, they may be
aggregated into a single operating segment.
26.Exchange of non-monetary assets
The "exchange of non-monetary assets" refers to the exchange of non-monetary assets
between two parties that includes the transactions of inventories, fixed assets,
intangible assets, or long-term equity investments. Such an exchange involves no or
few monetary assets (i.e. boot).62
When the exchange of a non-monetary asset concurrently satisfies the following
conditions, the cost of the received asset shall be its fair value including the relevant
applicable taxes; any difference between the fair value and the book value of the
relinquished asset shall be recorded as profit or loss for the current period:
(a) The exchange is commercial in nature;
(b) The fair value of the received or relinquished asset can be reliably measured;
Where an exchange of non-monetary assets does not concurrently meet the above
conditions, the book value of the relinquished asset including all relevant applicable
taxes shall be the cost of the received asset, and no profits or losses shall be recorded.
27.Critical accounting estimates and judgments
The Group continually evaluates the critical accounting estimates and key judgments
applied based on historical experience and other factors, including expectations of
future events that are believed to be reasonable under the circumstances. The critical
accounting estimates and key assumptions that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within the next
financial year are outlined below:
(a) The estimates of the depreciable lives of property, plant and equipments
The estimate of depreciable lives of property, plant and equipments was made by the
directors with reference to the practice of industry, their expected physical wear and
tear, and the durability assessment performed. The evaluation of estimated useful lives
is assessed by the directors annually.
Change of estimated useful lives may cause significant impact on the Group’s net
profit.
(b)Estimated impairment of other long-term assets
As disclosed in Notes 2(17), the Group’s long-term assets, such as fixed assets,
construction progress, intangible assets with finite useful lives, investment properties
measured using the comodel and long-term equity investments, are tested for
impairment if there is any indication that a asset may be impaired at the balance date.
In determining whether there is any indication of potential asset impairment,
management mainly evaluate and analyze from the following aspects: (1) whether the
issues affecting the asset impairment have occurred; (2) whether the present value of
cash flows, which is expected to receive for the sustained use of the asset or disposal
of the asset, is less than the net book value; and (3) whether the key assumptions used
for the present value of projected future cash flow is appropriate.
The relevant assumptions used to determine asset impairment, such as the discount
rate used in present value of future cash flow method, the variation of the growth rate63
assumptions and so on, may have a significant impact on the present value which is
employed in the impairment testing, resulting the impairment of long-term assets of
the Group.
(c) Income taxes
The Group is subject to income taxes in numerous jurisdictions. There are many
transactions and events for which the ultimate tax determination is uncertain during
the ordinary course of business. Significant judgment is required from the Group in
determining the provision for income taxes in each of these jurisdictions. The Group
recognises income taxes in each jurisdiction based on estimates. Where the final tax
outcome of these matters is different from the amounts that were initially recorded,
such differences will impact the income tax and deferred tax provisions in the period
in which such determination is made.
III. Taxation
（1）The types and rates of taxes applicable to the Group are set out below：
Type Taxable base Tax rate
Enterprise income
tax
Taxable income 11%,22% or 25%
VAT Taxable value added amount (Tax payable
iscalculated using the taxable sales
amount multiplied by the effective tax
rate less deductible VAT input of current
period)
17%
Business tax Taxable turnover 5%
City maintenance
and construction tax
Value added tax and Business tax amount 0%, 5% or 7%
Surcharge for
education
Value added tax and Business tax amount 0% or 3%
On March 16 ,2007, the National People’s Congress approved the Corporate Income
Tax Law of the People’s Republic of China (the “new CIT Law”), which is effective
from January 1,2008. Except for the two subsidiaries, Guangdong Yuejia Electric
Power Co., Ltd. (“Yuejia Electric”) and Guangdong Yudean Zhanjiang Wind Power
Co., Ltd. (“Zhanjiang Wind Power”) (as disclosed in the following notes), the
enterprise income tax rate applicable to the Group is 25%.
(2) Tax preferential and approval
According to the approvment of the Guangzhou Municipal Office of State
Administration of Taxation Foreign Tax Center Guoshuifa [1997] No. 185 and the
Guangzhou Municipal Office of State Administration of Taxation Foreign Tax Center64
Waifa [1998] No. 045, the corporate income tax rate of YueJia Electric is 15%. Based
on the new CIT law, the corporate income tax rate of YueJia Electric will apply from
2008 to 2012 as period of 5 years and gradual transition to 25%. The enterprise
income tax rate of the YueJia Electric is 22% for 2010.
According to the approvment ofthe Zhanjiang Municipal Office of State
Administration of Taxation Direct Taxation Office Zhangguoshui [2007] No. 15, the
enterprise income tax rate of Zhanjiang Wind Power is 15%, and from the
profit-making year, the first and second year exemption from enterprise income tax,
the third to fifth year business income tax reduced by half. On January 1,2008,
Zhanjiang Wind Power has not profitable. Under the provisions of the new CIT Law,
which will continue to apply the preferential policies, but was identified 2008 as the
first profitable year. Therefore, Zhanjiang Wind Power will continue to apply
exemption from corporate income tax. The enterprise income tax rate of the Zhanjiang
Wind Power is 11% for 2010.65
IV. Subsidiaries
(a) Subsidiaries acquired through business combination under common control
Type of
Subsidiaries
Place of
Registration
Nature of business Registered
capital
Scope of business Business type
Zhangjiang Electric Power Co., Ltd. Direct Zhanjiang Electric 2,875,440,000 Generation of Electri
city, Power plant ope
rating
Limited Liability
Company
Yuejia Electric Direc Meizhou Electric 1,200,000,000 Generation of
Electricity, Power
plant operating Foreign-funded enterprise
Guangdong Shaoguan Yuejiang Electric Dire
PowerCo., Ltd.
Direct Shaoguan Electric 770,000,000 Generation of
Electricity, Power
plant operating
Limited Liability
Company
Zhanjiang Zhongyue Engergy Co., Ltd Direct
Zhanjiang
Electric
1,000,000,000
Generation of
Electricity, Power
plant operating
Limited Liability
Company
The actual amou
nts of capital in
the year end
Essentially constitute a
subsidiary the balance of the
net investment in other
projects
Interest held
(%)
Voting rights
(%)
Whether
consolida
te the
financial
statement
or not
Minority interest
Zhanjiang Electric 2,240,844,400 - 76% 76% Yes 936,001,319
Yuejia Electric 702,968,698 - 58% 58% Yes 490,968,375
Yuejiang Electric 573,285,000 - 65% 65% Yes 219,742,675
Zhongyue Energy 1,123,708,100 - 90% 90% Yes 80,810,997
4,640,806,198 - 1,727,523,3666667
（2）Subsidiaries established or invested by the Group
Type of
Subsidiaries
Place of
registratio
n
Nature
business
Registered capital Scope of business Business type
Maoming Zhenneng Thermoelectric power Co., Ltd Direct
Maoming Electric 542,157,500 Generation of Electricity
Limited Liability
Company
Guangdong Yudean Jinghai Electric Power
Development Co., Ltd.
Direct Jieyang Electric 2,050,000,000 Generation of Electricity Limited Liability
Company
Zhanjiang Wind Power Direct Zhangjian
g
Electric 172,920,000 New Energy Development and
Generation of Electricity
Foreign-funded
enterprise
Guangdong Oil shale power Generation Co., Ltd. Direct Maoming Electric 235,000,000 Oil Development and
Generation of Electricity
Limited Liability
Company
Guangdong Yudean Anxin Electric Power
Maintenance
Direct Donggua
n
Electric 20,000,000 Providing repair and
maintenance service
Limited Liability
Company
Guangdong Yudean Humen Electric Power Co., Ltd. Direct Donggua
n
Electric 150,000,000 Generation of Electricity Limited Liability
Company
Guangdong Yudean Power Bohe Repair Co., Ltd. Direct Maoming Electric 150,000,000 Generation of Electricity and
Coal construct
Limited Liability
Company
Zhanjiang Yuheng Power Repair Co., Ltd. Indirect Zhangjian
g
Electric 20,000,000 Poviding repair and
Mainterance service
Limited Liability
Company
Guangdong Yudean nXuwen Wind Electric Power
Co., Ltd.
Indirect Zhanjian
g
Electric 20,000,000 Generation of Electricity Limited Liability
Company
The actual almo
unts of capital i
n the year end
Essentially constitute a
subsidiary the balance of
the Net investment in
other projects
Interest held
(%)
Voting rights
(%)
Whether
consolidate
the financial
statements or
not Minonity interest
Maoming Zhenneng 288,561,587 - 53.28% 53.28% Yes 287,987,48868
Jinghai Electric 1,365,368,810 - 65% 65% Yes 796,290,643
Zhanjiang Wind Power 121,044,000 - 70% 70% Yes 52,687,330
Oil Shale Power 196,398,200 - 83.66% 83.66% Yes 35,661,962
Anxin 20,000,000 - 100% 100% Yes -
Humen Electric 90,000,000 - 60% 60% Yes 59,201,900
Bohe 150,000,000 - 100% 100% Yes -
Zhangjiang Yuheng 15,200,000 - 100% 100% Yes -
Xuwen Wind 14,000,000 - 100% 100% Yes -
2,260,572,597 - 1,231,829,32369
V. Notes to the consolidated financial statements
(1) Monetary fund
December 31, 2009 June 30, 2010
Foreign currency
amount
Exchan
ge rate RMB Equivalent
Foreign
currency
amount
Exchan
ge rate RMB Equivalent
Cash on hand
RMB 67,168 56,290
Cash at bank
RMB 613,716,511 1,334,997,036
USD 1,076 6.83 7,349 1,077 6.79 7,314
HKD 12,868 0.8805 11,330 12,868 0.8724 11,226
Cash at Guangdong
Yudean Finance
Co., ltd
RMB 1,125,031,828 1,026,213,951
1,738,834,186 2,361,285,817
It is the same as cash isted in the cash flow statement.
(2) Accounts receivable
December 31, 2009 June 30, 2010
Accounts receivable 1,328,275,383 1,786,884,297
Less：Provision for bad debts - -
1,328,275,383 1,786,884,297
(a) As of June 30, 2010 and December 31, 2009, the ageing of accounts receivable
are all within 1 year.
(b) Accounts receivable are analysed by customents categories as follows:
December 31, 2009 June 30, 2010
Book Balance Provision for bad debts Book Balance Provision for bad debts
Amount
Proportio
n Amount
Proportio
n Amount
Proportio
n Amount
Proportio
n
Individual
material
1,327,123,192 99.91% - -
1,785,607,462 99.93%
- -
Other 1,152,191 0.09% - - 1,276,835 0.07% - -
1,328,275,383 100% - - 1,786,884,297 100% - -70
(c) As of June 30,2010，No balances included in above accounts receivable are
due from the shareholders of the Company who hold over 5% (including 5%) shares
with voting rights
(d) As of June 30, 2010, the Group’s five largest accounts receivable balances are
analysed as follows:
Relatation
with the
Group Amount Period
Ratio of total
accaount
receivable
GPGC Third party 1,772,739,061 Within 1 year 99.21%
Shajiao Power Plan C Related party 5,456,400 Within 1 year 0.31%
Zhanjiang Branch of GPGC Third party 3,264,984 Within 1 year 0.17%
Guangdong Huizhou Natural gas Power
Co.,Ltd.
Related party 2,240,317 Within 1 year 0.13%
Shenzhen Guangqian Electric Power Co.,
Ltd.
Related party 1,906,700 Within 1 year 0.11%
1,785,607,462 99.93%
(e) Accounts receivable from related parties are analysed as follows:
December 31, 2009 June 30,2010
Relationship with the
Group Amount
Ratio of t
otal accao
unts recei
vable (%) Provis Amount
Ratio of t
otal accao
unts recei
vable (%) Provisi
Shajiao C Controlled by Yudean
Group 16,086,515 1.21% -
5,456,400 0.31%
-
Guangqian The Group’s associate
andcontrolled by
yudean Group - - -
1,906,700 0.11%
-
Huizhou Natural Gas Associate Company 66,808 0.01% - 2,240,317 0.13% -
Other
Controlled by Yudean
Group 16,500 - -
592,940 0.03%
-
16,169,823 1.22% - 10,196,357 0.58% -
(f) As of June 30, 2010 and December 31, 2009，No accounts receivable balances
are dominated in foreign currencies.
(3) Other receivables
December 31,
2009
June 30,2010
Entrust loans(a) 504,741,009 520,350,101
Advance for construction 54,085,181 2,454,097
Suppliers 6,871,292 11,218,680
Other 12,892,265 25,996,64171
578,589,747 560,019,519
Increased in
current period
Decreased in
current period
Less：Provision for bad debts (17,545,236) （230,665 10,594,866 (7,181,035)
561,044,511 552,838,48472
(a) The entrust loans, which the Group provides for associates through the trustee, are
listed as follows：
Trustee Borrower Principal
Annual
interest
rate Due date
Annual inter
es June 30, 2010
Accumulativ
e accrued
interest
Provis
ion for
bad
debts
Industrial
Bank,Guang
zhou Branch
Weixin Yuntou Yudean
Zhaxi Energy
260,000,000 5.40% 3/12/2010 7,059,000 260,390,000 390,000 -
Yudean
Finance
Shanxi Yudean Energy 197,200,000
4.86%
4.78%
17/6/2011 4,425,523 197,465,575 265,575 -
China
Constuction
Bank,
Guangzhou
Power
Branch
Guangdong Yudean Holding
Westem
45,165,100 4.78% 26/5/2011 1,528,133 62,494,526 17,329,426 -
502,365,100 13,012,656 520,350,101 17,985,001 -
(b) The ageing of other receivables are analyzed as follows：
December 31, 2009 June 30, 2010
Within 1 year 514,698,712 547,569,057
1-2 years 16,890,450 2,616,483
2-3 years 16,492,750 377,522
3-4 years 8,500,000 -
4-5 years 3,164,599 -
Over 5 years 1,298,000 2,275,422
561,044,511 552,838,484
. other receivables are analysed by customers categories as follows：
December 31, 2009 June 30,2010
Book Balance Provision for bad debts Book Balance Provision for bad debts
Amount
Total
balance% Amount
Total
balance% Amount
Total
balance% Amount
Total
balance%
Individual
material 548,296,358 94.76% (10,594,866) 1.93% 520,350,101 -
Other 30,293,389 5.24% (6,950,370) 22.94% 39,669,418 (7,181,035)
578,589,747 100% (17,545,236) 3.03% 560,019,519 (7,181,035)
(d)As of June 30,2010, no balances included in above other receivables are due from
the shareholders of the Company who hold over 5% (including 5%) shares with
voting rights.7374
(e) As of June 30, 2010, the Group’s five largest other receivables balances are as
follows:
Relationship with
The Group Amount Period
Total other rec
eivables %
Weixin Yuntou Related parties 260,390,000 Within 1 years 46.50%
Shanxi Energy Related parties 197,465,575 Within 1 years 35.26%
Yudean Westem Related parties 62,494,526 Within 1 years 11.16%
Shajiao C Related parties 1,482,633 Within 1 years 0.26%
Shanghai Turbine Third Partes 1,200,000 Over 5 years 0.21%
523,032,734 93.39%
(f)Other receivables due from related parties are as follows：
December 31, 2009 June 30, 2010
Relationship
YudeanGroup Amount
Ratio of t
otal accao
unt raceiv
able (%) Provisi Amount
Ratio of
total acca
ount racei
vable (%) Provisi
Weixin Yuntou Associates 260,406,900 45.01% - 260,390,000 46.50%
Shanxi Energy Associates 153,423,710 26.52% - 197,465,575 35.26%
Yudean Westem The Group’s
associate and
controlled by
Yudean 90,480,274 15.64% - 62,494,526
11.16%
Shajiao C Controlled by
Yudean 3,387,831 0.59% - 1,482,633
0.26%
Yangshan
Zhongxinkeng
Power Associates 430,125 0.07% - - -
Other Controlled by
Yudean 766,098 0.13% 746,929 0.13%
508,894,938 87.96% 522,579,663 93.31%
(g)As of June 30, 2010 and December 31, 2009,No other receivables balances are
dominated in foreign currencies.
(4) Advances to suppliers
(a) The ageing of advances to suppliers is analysed below：
December 31, 2009 June 30,2010
Amount Total balance % Amount Total balance %
Within 1 year 692,520,240 87.09% 465,170,063 40.63%
1-2 years 101,874,247 12.81% 671,552,106 58.65%
2-3 years 648,586 0.08% 7,846,585 0.68%
Over 3 years 150,000 0.02% 455,376 0.04%75
795,193,073 100% 1,145,024,130 100%
The balances with ageing over one year represent the prepayment or deposits paid to
construction and equipment suppliers.
(b) As of June 30,2010，the Group’s largest five advances to suppliers balances are as
follow:
Relationship
with the Group Amount Proportion Prepaid year Reasons for unsettling
Guangdong Electric
FuelSupply Co., Ltd.
Related party
537,570,000 46.95% 2009 及2010 Purchase deposits
East Boiler Third party 326,776,790 28.54% 2009 及2010 Purchase deposits for the equipments
East Electric Third party 59,163,000 5.17% 2009 及2010 Purchase deposits for the equipments
East Electric Third party 24,369,000 2.13% 2010 Purchase deposits for the equipments
Dalian Heavy-Lifting Third party 20,460,000 1.79% 2009 Purchase deposits for the equipments
968,338,790 84.58%
(c) As of June 30,2010，no prepaid in prepayments of our company hold above 5%
(including 5%) voting shares’ Shareholders funds:
(d) Prepayments to related parties as follows:
December 31, 2009 June 30,2010
Relationship with the Group Amount
Proportion
(%) Provisio Amount
Proportion
(%) Provis
Fuel supply Associate and under common control
byYudean 477,688,698 60.07% - 537,570,000 46.95% -
477,688,698 60.07% - 537,570,000 46.95% -
(e) As of June 30,2010 and December 31, 2009, no prepayments balances are
dominated in foreign currencies.
(5) Inventory
(a) Inventory categories are listed as follows：
December 31, 2009 June 30, 2010
Book Balance
Provision for i
nvestory Book value Book Balan
Provision for i
nvestory Book val
Fuel 499,478,147 - 499,478,147 530,501,2 - 530,501,2
Spare parts 242,653,497 (6,902,651 235,750,846 235,989,5 (6,902,651 229,086,9
Other 905,398 - 905,398 1,852,9 - 1,852,9
743,037,042 (6,902,651 736,134,391 768,343,7 (6,902,651 761,441,176
(b) Movement of inventory provision is as follows：
December
31, 2009 Reduction
June 30,
2010
Addition Reversal Write off
Spare parts (6,902,651) - - - (6,902,651)
(c) Inventory provision is analysed as follows:
Reason of accrual
Inventory provision
reversal during year
Reversal accounting
for ypear end toal
balance%
Spare parts The difference of the net realizable value
lower than the carrying amount
N/A N/A
(6) Available-for-sale financial assets
December 31,
2009 Sold in 2010
Change of
fairvalue June 30,2010
Available-for-sale financial
assets
Shenzhen Energy 94,920,001 - (28,280,001) 66,640,000
Shenergy 421,304,669 - (136,239,119) 285,065,550
516,224,670 - (164,519,120) 351,705,550
(7) Long-term receivable and non-current assets maturing within one year
December 31,2009 June 30,2010
Long-term receivable 20,619,671 20,616,378
Less ： Non-current assets maturing
withinone year - -
20,619,671 20,616,378
The long-term receivable balances are all entrust loans that the Group provides to
associates, details are listed as follows:
Trustee Borrower Principal
Annual
interest
rate Due date
Annual
interes June 30,2010
Accumul
ative
accrued
interest
Prov
ision
Industry
Bank ,Guangzhou
Lincang Yuntou
10,780,000 5.76% 27/10/2014 312,189 10,799,055 19,055
-77
Branch
Industry
Bank ,Guangzhou
Branch Lincang Yuntou
9,800,000 5.76% 29/11/2014 283,808 9,817,323 17,323
-
20,580,000 595,997 20,616,378 36,378 -78
(8) Long-term equity investment
December 31, 2009 June 30,2010
Associates(a) 4,141,938,886 4,202,013,403
Other long-term equity investments(b) 482,103,707 482,103,707
4,624,042,593 4,684,117,110
Less: Provision for impairment of
long-term equity investments - -
4,624,042,593 4,684,117,110
The long-term investments of the Group are not subject to restriction on conversion
into cash or restriction on remittance of investment income.79
(a) Associates
Increase/Decrease
Accounti
ng
method
Original
investment
cost
December 31,
2009
Addition or
reduction
Net profit
adjusting by equity
method
Cash
dividands
declared this
year
other equity
movement June 30,2010
Interest
held
Voting
rights
held
Impair
ment
provisi
on
Current ye
ar accrual
impairment
providion
Guangqian Equity
method 414,882,600 589,317,257 - 56,869,601 (144,376,285) - 501,810,573 40% 40% - -
Shanxi Energy Equity
method 80,000,000 414,015,801 - 6,491,033 - - 420,506,834 40% 40% - -
Red Gulf Equity
method 387,437,500 653,224,192 50,000,000 49,564,589 (28,126,929) 132,500 724,794,352 25% 25% - -
Huizhou Natural gas Equity
method 308,160,000 428,319,190 - 32,937,916 - - 461,257,106 32% 32% - -
Fuel supply Equity
method 339,234,300 376,431,797 - 17,483,160 (30,794,014) - 363,120,943 35% 35% - -
Yudean Finance Equity
method 75,000,000 300,523,415 - 20,181,123 (29,401,139) - 291,303,399 25% 25% - -
Yunnan Baoshan Binlangjiang Equity
method 133,088,100 195,107,575 29,000,000 - - - 224,107,575 29% 29% - -
Guangdong Yudean Shipping Equity
method 60,000,000 581,252,234 - 18,549,565 - - 599,801,799 35% 35% - -
Yudean Westem Equity
method 71,084,000 150,882,908 - 10,093,736 - - 160,976,644 26% 26% - -
Guangdong Yudean Shibeishan Equity
method 69,510,000 71,802,064 - 161,910 (2,213,092) - 69,750,882 30% 30% - -
Weixin Yuntou Equity
method 16,000,000 260,960,000 - - - - 260,960,000 40% 40% - -
Huaneng Shantou Wind Power Equity
method 5,411,250 45,144,011 - 3,520,843 - - 48,664,854 25% 25% - -80
Lincang Yuntou Equity
method 25,480,000 62,273,383 - - - - 62,273,383 49% 49% - -
Yangshan Jiangkeng Hydroelectric station Equity
method 5,000,000 5,714,352 - - - - 5,714,352 25% 25% - -
Zhongxinkeng Equity
method 6,060,000 6,970,707 - - - - 6,970,707 40% 40% - -
4,141,938,886 79,000,000 215,853,476 (234,911,459) 132,500 4,202,013,403 - -81
(b) Other long-term equity investments
Accounting
method
Original investme
nt cost
December 31,
2009
Current year m
ovement June 30, 2010
Interest hel
d
Voting
rights held
Impairme
nt
provision
Current
year
accrual
impairme
nt
providion
Cash dividends
declared this
year
Sunshine insurance Group Co., Ltd. Cast
method 150,000,000 356,000,000 - 356,000,000 9.46% 9.46% - - -
Shenzhen Chuangxin Investment Co., Ltd. Cast
method 52,500,000 115,000,000 - 115,000,000 3.67% 3.67% - - -
Maomeng Energy-saving coral water Co.,
Ltd.
Cast
method 3,600,000 3,600,000 - 3,600,000 19.00% 19% - - -
Maoming Electric water supply Co., Ltd. Cast
method 3,903,707 3,903,707 - 3,903,707 15.00% 15% - - -
GMG Internatial Tendering Co., Ltd. Cast
method 3,600,000 3,600,000 - 3,600,000 3.07% 3.07% - - -
482,103,707 - 482,103,707 - - -82
(9) Investment properties
December
31, 2009
Increased in
current period
Decreased in
current period
June 30,
2010
Cost
－Building 20,135,165 - - 20,135,165
Accumulated depreciation
－Building (6,758,688) (316,315) - (7,075,003)
Net book value
－Building 13,376,477 (316,315) - 13,060,162
As of June 30,2010, directors of the Group considered that no need to provide
provision for impairement for investment properties .83
(10) Fixed assets
December 31, 2009 Increased in
current period
Decreased in
current period
June 30,2010
Book value 22,320,739,530 419,922,358 （59,919,087） 22,680,742,801
Building 5,915,258,060 87,286,867 （8,274,251） 5,994,270,676
Electric utilitiesin
service
15,939,225,718
324,385,993 （49,340,813） 16,214,270,898
Motor vehicle 299,518,079 5,300,352 （1,257,000） 303,561,431
Other equipment 166,737,673 2,949,146 （1,047,023） 168,639,796
Accumulated
Depreciation
(10,062,712,496)
（630,487,503） 45,473,410 (10,647,726,589)
Building (1,938,329,705) （125,296,204） 1,756,659 (2,061,869,250)
Electric utilitiesin
service
(7,856,361,326)
（479,960,278） 41,548,177 (8,294,773,427)
Motor vehicle (153,151,074) （13,179,192） 1,225,763 (165,104,503)
Other equipment (114,870,391) （12,051,829） 942,811 (125,979,409)
Provision for
impairment
(236,684,089)
（25,000,000） 4,114,011 (257,570,078)
Building (88,403,169) - 4,114,011 (84,289,158)
Electric utilitiesin
service
(144,522,312)
（25,000,000） - (169,522,312)
Motor vehicle (2,245,506) - - (2,245,506)
Other equipment (1,513,102) - - (1,513,102)
Net book value 12,021,342,945 （235,565,145） (10,331,666) 11,775,446,134
Building 3,888,525,186 （38,009,337） (2,403,581) 3,848,112,268
Electric utilitiesin
service
7,938,342,080
（180,574,285） (7,792,636) 7,749,975,159
Motor vehicle 144,121,499 （7,878,840） (31,237) 136,211,422
Other equipment 50,354,180 （9,102,683） (104,212) 41,147,28584
(11)Constuction in progress
December 31, 2009 June 30,2010
Book balance Impairme Net took value Book balance Impairme Net took value
Zhongyue Energy project 2,904,378,851 - 2,904,378,851 3,056,546,885 - 3,056,546,885
Jinhai 3#, 4# generate sets 1,233,634,419 - 1,233,634,419 1,970,330,955 - 1,970,330,955
Xuwen Yangqian Wind power 307,878,908 - 307,878,908 - - -
Yuejiang 2x600MWLpgrade
project 181,938,198
-
181,938,198 233,002,497
-
233,002,497
Dapu Project 144,053,474 - 144,053,474 150,753,925 - 150,753,925
Technology improvement 131,871,645 - 131,871,645 145,867,907 - 145,867,907
Humen Project 116,451,673 - 116,451,673 117,443,268 - 117,443,268
Oil Shale power project 85,256,375 - 85,256,375 99,777,413 - 99,777,413
Bohe Project - - - 32,042,739 - 32,042,739
Coal mixture project 70,849,378 - 70,849,378 75,821,515 - 75,821,515
Zhenneng 600MW#7Set 52,498,676 - 52,498,676 45,828,201 - 45,828,201
Zhanjiang Crossroad 17,609,516 - 17,609,516 22,053,971 - 22,053,971
Xuwen Yongshi Wind Power 10,896,085 - 10,896,085 11,672,562 - 11,672,562
Other 37,930,241 - 37,930,241 38,941,629 - 38,941,629
5,295,247,439 - 5,295,247,439 6,000,083,467 - 6,000,083,467
(12)Construction materials
December 31,
2009
Increased in
current period
Decreased in
current period June 30,2010
Spectial equipment 1,929,908,046 194,050,237 (206,685,530) 1,917,723,565
Tools 8,405,751 713,627 (671,815) 7,996,751
1,938,313,797 194,763,864 (207,357,345) 1,925,720,31685
(13) Intangible assets
December 31,
Increased in
current
period
Decrease
d in
current
period June 30,2010
Book value 810,107,456 1,366,150 811,473,606
Electric Transmission project 439,364,282 - 439,364,282
Land use rights 302,921,006 - 302,921,006
Sea use right 26,849,101 - 26,849,101
Transportation project 22,468,672 - 22,468,672
Softwares 18,504,395 1,366,150 19,870,545
Accumulated depreciation (436,331,721) （11,106,812） （447,438,533）
Electric Transmission project (363,101,622) （5,481,867） （368,583,489）
Land use rights (39,503,152) （3,616,383） （43,119,535）
Sea use right (1,612,542) （268,491） （1,881,033）
Transportation project (19,853,314) （182,467） （20,035,781）
Softwares (12,261,091) （1,557,604） （13,818,695）
Net Value 373,775,735 （9,740,662） 364,035,073
Electric Transmission project 76,262,660 （5,481,867） 70,780,793
Land use rights 263,417,854 （3,616,383） 259,801,471
Sea use right 25,236,559 （268,491） 24,968,068
Transportation project 2,615,358 （182,467） 2,432,891
Softwares 6,243,304 （191,454） 6,051,850
As of June 2010, directors of the Group considered that no need to provide provision
for impairement of intangible assets.
(14) Short-term borrowings
December 31, 2009 June 30,2010
Credit loans 3,466,991,742 6,102,500,000
Mortgage loans 350,000,000 300,000,000
3,816,991,742 6,402,500,000
As of June 30, 2010, there are no overdue short-term borrowings.86
(15) Bill payable
December 31, 2009 June 30, 2010
Bank acceptance 894,384,813 358,157,000
Commecial acceptance notes 1,367,535,296 449,380,598
2,261,920,109 807,537,598
(10) Account payable
December 31, 2009 June 30, 2010
Fuel payable 536,540,099 985,547,826
Construction and equipment payable 383,374,931 328,539,537
Materials payable 85,633,134 31,936,951
Other 4,666,999 11,141,256
1,010,215,163 1,357,165,570
(a) As of June 30, 2010, no balances included in above accounts payable are due to
the shareholders of the Company who hold over 5% (including 5%) shares with
voting rights.
（b）Accoutns payable due to related parties:
December 31, 2009 June 30, 2010
Fuel supply 607,562,245 852,863,195
Maoming Thermal 52,675,188 61,894,150
Yudean Shipping 1,815,000 -
Guangdong Yudean Xinfeng Electric
Power 166,182 134,161
662,218,615 914,891,506
. As of June 30, 2010, the balance with ageing over than one year is
RMB197,363,503, and it is mainly represent payables to construction, equipment
suppliers. Because these projects have not been completed / accepted of completion,
such balances have not been finally settled.
（d）As of June 30, 2010 and December 31, 2009, no accounts payable balances are
denominated in foreign currencies.87
(17)Employee benefits payable
December 31,
2009
Increased in
current period
Decreased in
current period June 30,2010
Wages and salaries,
bonuses,allowances and
subsidies 158,561,017
369,074,262 (243,922,958) 283,712,321
Staff welfare 11,016,578 34,866,248 (34,552,756) 11,330,070
Social security contributions 1,109,297 73,322,618 (73,202,522) 1,229,393
Including：Medical insurance 1,096,079 9,159,242 (9,039,146) 1,216,175
Basic pensions 9,545 60,562,938 (60,562,938) 9,545
Unemployment
insurance 3,673
1,198,596 (1,198,596) 3,673
Work injury insurance - 1,449,263 (1,449,263) -
Maternity insurance - 952,579 (952,579) -
Housing funds 3,843,617 70,276,347 (69,942,945) 4,177,019
Labor union funds and
employee education funds 25,269,476
14,211,426 (9,508,074) 29,972,828
Early retirement obligation 28,445,967 - (3,255,879) 25,190,088
Other 302,798 1,001,472 (1,001,472) 302,798
228,548,750 562,752,373 (435,386,606) 355,914,517
(18)Tax payable
December 31, 2009 June 30, 2010
Enterprise income tax payable(Prepaid) 99,849,579 53,958,515
VAT payable 33,927,221 (27,135,432)
City maintenance and construction tax
payable 12,131,326 9,080,208
Educational surcharge payable 7,052,795 5,233,398
Individual income tax payable 21,289,113 3,298,307
House tax payable 3,305,122 3,175,459
Business tax payable 1,115,207 1,920,346
Other 10,578,266 3,476,883
189,248,629 53,007,684
(19)Interest payable
December 31, 2009 June 30, 2010
Interest payable for short-term
borrowings
2,227,863 4,551,519
Interest payable for lont-term borrowings 7,038,657 6,066,14688
that interest are payable by installment
and principal at maturity
Interest payable for corporate bond 90,444,444 35,750,000
99,710,964 46,367,66589
(20)Dividends payable
December 31, 2009 June 30, 2010
Yudean investment 7,659,560 566,028,625
Shaoguan Power plant D 3,521,190 3,521,190
Qujiang Electric 1,408,476 1,408,476
12,589,226 570,958,291
(21)Other payable
December 31, 2009 June 30, 2010
Performance guarantee deposits from
construction and equipment suppliers 289,815,967 79,787,752
Construction and equipment payable 182,385,465 173,098,773
Advance from shaoguan Electric Power
plant 297,033,465 280,920,374
Rent fee for shaoguan Plant D payable 1,750,737 1,750,737
Other 49,185,493 54,720,331
820,171,127 590,277,967
(a) As of June 30, 2010, no balances included in above other payables are due to the
shareholders of the Company who hold over 5% (including 5%) shares with voting
rights .
(b) Other payables due to related parties are as follows:
December 31, 2009 June 30, 2010
Shaoguan Electric Power plant 297,033,465 280,920,374
Shaoguan Plant D 1,750,737 1,750,737
Guandong Yudean Environment
Protection Company
1,316,483 4,189,291
Maoming Thermal 1,112,382 -
Yudean Shipping - 5,395,000
Other 7,111 -
301,220,178 292,255,402
(c) As of June 30, 2010, the balances with ageing over one year amounted to
RMB153,068,853 are mainly represent the performance guarantee deposits
(d) from construction and equipment suppliers, and they have not been settled.90
(e) As of June 30,2010 and December,31, 2009, no other payables balances are
denominated in foreign currencies.
(22) Non-current liability due in 1 year
December 31, 2009 June 30, 2010
Pledged borrowings 204,060,000 128,850,000
Mortgage borrowings - -
Credit borrowing 105,160,000 130,500,000
309,220,000 259,350,000
(23)Loan-term borrowings
Currency December 31, 2009 June 30, 2010
Pledged borrowings RMB 1,960,500,000 1,805,380,000
Mortgage borrowings RMB 118,000,000 -
Credit borrowing RMB 5,226,840,000 4,888,300,000
7,305,340,000 6,693,680,000
(a) The top five of long-term borrowings
Beginning date Expiring date Currenc
y
Interest
Rate(%)
December 3
1, 2009
June 30, 20
10
Agricaultural Bank of China 2008-09-27 2025-12-03 RMB 5.35% 2,550,000,000 2,164,500,000
China Constrcution Bank 2006-01-13 2021-01-12 RMB 5.35% 1,200,000,000 1,150,000,000
ICBC 2006-04-24 2022-04-23 RMB 5.35% 1,010,000,000 955,000,000
Yudean Finance 2008-07-18 2025-12-05 RMB 5.35% 1,000,000,000 975,000,000
China Constrcution Bank 2009-01-20 2020-02-17 RMB 5.35% 330,800,000 280,800,000
6,090,800,000 5,525,300,00091
（b） The maturity of the non-current borrowings is as follows:
December 31, 2009 June 30, 2010
1-2 years 309,220,000 597,220,000
2-5 years 927,660,000 1,598,640,000
Over 5 years 6,068,460,000 4,497,820,000
7,305,340,000 6,693,680,000
(24)Boods payable
December 31,
2009
Increased in
current period
Decreased in
current period June 30,2010
Company bonds 1,986,037,444 1,351,215 - 1,987,388,659
On March 10, 2008 after CSRC’s approval, the Company successfully issued long
term debts with an aggregate principal amount of RMB2,000,000,000. The term of
long term debts is 7 years deducted by the issuance related expenses amounted to
Rmb18,917,012, the total fund finance amounted to Rmb1,981,082,988. Interest is
calculated from 10 March 2008 with annual interest rate of 5.5%.
Interest payable of the debentures is analysed as below:
December 31,
2009
Interest
accrued Interest paid June 30, 2010
Interest payable 90,444,444 55,305,556 (110,000,000) 35,750,000
(25)Deferred tax assets and liabilities
(a) Deferred tax assets before offsetting:
December 31, 2009 June 30, 2010
Deferred tax
assets
Deductible
temporary
difference
Deferred tax
assets
Deductible
temporary
difference
Tax deductible losses 108,962,295 441,040,923 111,093,800 446,967,892
Provision for assets impairement 56,388,825 252,838,704 56,388,825 252,838,704
Employee benefits payable 37,629,366 154,593,593 34,613,951 142,531,933
Amortization of pre-operating
expenses 13,608,792 58,538,136 8,991,577 40,069,276
Govemment grants related to assets 6,923,077 27,692,308 6,923,077 27,692,308
Net income form test run
includedin CIP 5,502,392 24,127,417 5,502,392 24,127,417
Amortization of LUR 1,904,318 7,617,273 1,904,318 7,617,273
Accrued expenses 515,376 2,061,510 437,683 1,750,73892
231,434,441 968,509,864 225,855,623 943,595,541
(b) Deferred tax liablities before offsetting:
December 31, 2009 June 30, 2010
Deferred tax
liabilities
Temporary
difference
Deferred tax
liabilities
Temporary
difference
Available-for sales investments 66,124,012 264,496,054 24,994,232 99,976,934
Capitalised interest expenses 3,799,855 16,108,055 3,799,855 16,108,055
Interestincome of time deposits 31,563 126,250 31,563 126,250
Included in the construction of
thetest run of net expense - - 1,289,695 5,158,785
69,955,430 280,730,359 30,115,345 121,370,024
(c) Offsetting amount of deferred tax assets and deferred tax liabilities
December 31, 2009 June 30, 2010
Deferred tax assets 31,093,410 30,083,782
Deferred tax liabilities 31,093,410 30,083,782
(d) The net balances of deferred tax assets and liabilities after offsetting are as
follows:
December 31, 2009 June 30, 2010
Net value of deferred tax assets 200,341,031 218,536,942
Net value of deductible temporary
difference
38,862,020 31,563
(26)Provision for asset impairment
Decreased in current period
December 31,
2009 Increased in cu Reversal Write -off
June 30, 2010
Provision for bad
debts
17,545,236 230,665 (10,594,866) - 7,181,035
Including ：
Accountreceivable
- - - - -
Other
receivalbes
17,545,236 230,665 (10,594,866) - 7,181,035
Provision for
declines in the value
of investories
6,902,651 - - - 6,902,65193
Provision for
impairment of fixed
assets
236,684,089 25,000,000 - (4,114,011) 257,570,078
261,131,976 25,230,665 (10,594,866) (4,114,011) 271,653,76494
(27)Other current liabilities
December 31, 2009 June 30, 2010
Government grants related with assets
Desulfurization project #5 set (i) 27,692,308 26,153,846
Water-freshing project(ii) 2,000,000 2,000,000
29,692,308 28,153,846
(i) This represents the government subsidy granted for the 5# generation set
desulfurization project of Shajiao Power Plant A (“Shajiao A”), which is a branch of
the Company in 2005. It is amortized over the useful lives, 13 years, of related assets.
(ii) This represents the government subsidy granted for water-freshing project of
Zhongyue Energy. As of June 30, 2010,Until to the approval of these financial
statements, this project has not been finished, no amortization accordingly.
(28)Share capital
December 31,
2009
Current year
addition
Current year
reduction June 30,2010
Shares subject to sale restrictions
Shares held by state-
Companies 141,951 138,046,462 - 138,188,413
Shares held by non-state-own o
compan 7,077,786 - (1,074,763) 6,003,023
Including: Shares held by legal
persons 5,885,259 - (630,704 )
5,254,555
Shares held by individual persons 1,192,527 - (444,059) 748,468
7,219,737 138,046,462 (1,074,763) 144,191,436
Shares subject to no sale restricti
-
A Shares 1,986,857,763 1,075,439 - 1,987,933,202
B shares 665,326,500 - - 665,326,500
2,652,184,263 1,075,439 - 2,653,259,702
2,659,404,000 139,121,901 (1,074,763 ) 2,797,451,138
With the implementation of the share reform scheme on January 17, 2006, the
formerly legal person shares were converted into A shares but subject to restrictions of
one to three years in their sales. As of June 30,2010, there are 6,003,023 shares are
non-tradable.
According to “Approval of Non-publicly Issued Shares for Guangdong Power Development Co.,
Ltd”（CSRC License No. [2010]376）on March, 2010, China Securities Regulatory Commission
approved that our non-publicly issued stocks should not more than 20 billion A shares. The95
non-publicly issued A shares of parties, Yudean Group actually purchase 138,047,138 of A shares.96
(29)Capital surplus
December 31,
2009
Current year
changed June 30, 2010
Capital premium 995,879,173 671,759,815 1,667,638,988
Revaluation reserves 119,593,718 - 119,593,718
Other capital surplus—
Change in fair value of available-for-sale
financial assets 264,496,054 （164,519,120） 99,976,934
Tax on change in fair value of available-for-sale (66,124,012) 41,129,780 (24,994,232)
Transfer from the balance of capital surplus
recognised under previous accounting
system 20,474,592 - 20,474,592
Other 554,800 132,500 687,300
1,334,874,325 548,502,975 1,883,377,300
(30)Supplus reserve
December 31,
2009
Statutory
surplus reserve
Current year
Decrease
June 30,2010
Statutory Surplus reserve 1,375,780,387 75,892,313 - 1,451,672,700
Arbitariness Surplus reserve 1,783,837,557 189,730,784 - 1,973,568,341
3,159,617,944 265,623,097 - 3,425,241,041
(31)Undistributed profits
December 31, 2009 June 30,2010
Amount
Amount
Beginning balance of
undistribute
profits
1,112,154,527
2,117,942,715
Add: net profit attributable
to the stockholders of the
parent company
1,165,352,428
430,513,284
Less: appropriation to
surplus reserves
-
(265,623,097)
Surplus reserves used to
offset accumulated losses
-
-
Commonstock dividends
payable
（159,564,240）
(559,490,227)
Ending balance of 2,117,942,715 1,723,342,67597
undistributed profits98
(32)Minority interest in equity
December 31, 2009 June 30,2010
Intere Owners’equity Intere Owners’equity
Zhanjiang Electric 24% 930,132,067 24% 936,001,319
Yuejia Electric 42% 483,872,968 42% 490,968,375
Yuejiang Electric 35% 247,976,382 35% 211,774,889
Zhongyue Energy 10% 82,375,346 10% 80,810,997
Zhenneng Power
plant
46.72%
286,536,356
46.72%
287,987,488
Jinghai Electric 35% 606,488,270 35% 796,290,643
Zhanjiang Wind
Power
30%
50,114,580
30%
52,687,330
Oil Shale power 16.34% 36,054,348 16.34% 35,661,962
Humen Electric 40% 59,430,366 40% 59,201,900
2,782,980,683 2,951,384,903
(33)Operating revenue and operating cost
January-June 2009 January-June 2010
Main operating revenue 5,249,372,206 6,236,855,683
Other operating revenue 21,476,131 14,155,717
5,270,848,337 6,251,011,400
January-June 2009 January-June 2010
Main operating cost (4,348,516,321) (5,351,663,654)
Other operating cost (27,692,318) (9,189,446)
(4,376,208,639) (5,360,853,100)
(a) Revenue and cost from main operations
Analysis by products is as follows:
January-June 2009 January-June 2010
Main
operating
revenue
Main
operating cost
Main
operating
revenue
Main operating
cost
Electricity income 5,203,492,040 (4,313,677,489) 6,220,158,314 (5,341,810,198)
Steam income 33,277,612 (29,214,983) - -
Service income 12,602,554 (5,623,849) 16,697,369 (9,853,456)99
5,249,372,206 (4,348,516,321) 6,236,855,683 (5,351,663,654)100
（b）Revenue and cost from other operations
January-June 2009 January-June 2010
Other
operating
revenue
Other
operating cost
Other
operating
revenue
Other
operating cost
Rental income 1,809,862 (32,951) 609,948 (264,307)
Coal ash income - - 1,653,329 -
Sale of material 160,674 (6,767) 7,911 (7,911)
Other 19,505,595 (27,652,600) 11,884,529 ( 8,917,228)
21,476,131 (27,692,318) 14,155,717 (9,189,446)
（c）Particulars of revenue from the top five customers of the Group
Revenue from the top five customers with aggregate amount of RMB6,243,341,616
accounted for 99.88% .02%) of the Group's total revenue in 2010. Details are as
follows:
Revenue
Total revenue of the
Group%
GPGC 6,223,217,289 99.56%
Shajiao C 11,243,902 0.18%
Dongguan Jining Electricity Power plant 3,388,656 0.05%
Huizhou Natural gas 3,301,126 0.05%
Dongguang Taiyang Industry Co., Ltd. 2,190,643 0.04%
6,243,341,616 99.88%
(34)Tax and surcharges
January-June 2009 January-June 2010 Accrual basis
City maintenance and
construction tax 12,459,291 9,059,253
Notes 3
Surcharge for education 6,087,595 4,159,105 Notes 3
Business tax 130,909 824,283 Notes 3
18,677,795 14,042,641101
(35)Financial expense
January-June 200
9
January-June 201
0
Net interest expenses 270,638,226 221,793,205
Including：Interst income （8,046,825） （9,002,449）
Interest expenses 278,685,051 230,795,654
Including ： Current liabilities interest
expense 68,787,778 79,067,811
Long-term debt interest payments 209,897,273 151,727,843
Net exchange loss 600 -
Bank charges 1,900,346 1,568,307
Other 5,330,219 109,093
277,869,391 223,470,605
(36)Impairment losses
January-June 2009 January-June 2010
Impairment losses (172,078) 230,665
Reversal of write-off bad debInventory
provision - (1,838,934)
Provison for impairment of fixed assets - 25,000,000
(172,078) 23,391,731
(37)Investment income
January-June 200
9
January-June 2010
Share of profit of investees under equity
method of accounting 159,191,833 215,853,476
Profit/cash dividends declared by investees
under cost method of accounting 6,474,800 -
Entrusted Loan interest income 10,013,600 11,977,276
Income from available-for-sale financial
assets 3,702,150 7,404,300
179,382,383 235,235,052
There is no significant restriction on the remittance of investment income to the
Group.102
(38)Non-operating income and expenses
(a) Non-operating income
January-June 2009 January-June 2010
Government subsidy amortization - 3,663,107
Other 2,057,750 59,726
2,057,750 3,722,833
(b) Non-operating expenses
January-June 2009 January-June 2010
Loss on disposal of aoliyou machine set 25,940,100 537,830
Loss on disposal of fixed assets 14,053 979,936
Penalty and late fee 5,276 4,565
Other 741,547 859,190
26,700,976 2,381,521
(39)Income tax
January-June 2009 January-June 2010
Current income tax 104,625,282 127,554,059
Reversal of the in previous years - 281,930
Deferred income tax (16,031,593) 720,661
88,593,689 128,556,650103
(40)Other comprehensive income
January-June 2009 January-June 201
0
Profits/(losses) arising from available-for-sale
financial assets 164,483,205
(164,519,120)
Less: Income tax relating to available-for-sal
financial assets (41,120,801)
41,129,780
123,362,404 (123,389,340)
(41)Supplementary information of cash flow statements
Reconciliation from net profit to cash flows from operating activities
January-June 2009 January-June 2010
Net profit 432,158,683 484,049,327
Add: Provisions/(reversal) for assets
impairment (172,078) 23,391,731
Depreciation of fixed assets and 626,068,339 630,803,818
Amortisation of intangible assets 11,005,092 11,106,812
Losses on scrapping of fixed assets 25,954,153 1,517,766
Financial expenses 277,869,391 223,470,605
Investment income (179,382,383) (235,235,052)
Increase/(Decrease) in deferred tax
assets (16,031,593) 720,661
Increase(decrease) in inventories 105,665,916 (25,306,751)
Increase(decrease) in operating
receivables 339,409,749 (784,164,062)
Increase/(Decrease) in operating
payables 612,145,870 672,782,494
Net cash flows from operating
activities 2,234,691,139 1,003,137,349104
VI. Segment information
The management of the Company assesses the operating performance of parent company and subsidiaries. Inter-segmen
making reference to the sales to 3rd parties.
(a) Segment information as at and for the year ended June 30, 2010 is as follows:
The Company Zhanjiang Electric Yuejiang Electric Yuejia Electric Zhongyue Energy Zhenneng Electric Jinghai Electric Other Elimination Total
Revenue 1,660,327,049 1,613,004,324 661,950,594 575,720,139 - 733,086,263 962,290,400 64,173,489 (19,540,858) 6,251,011,400
Including ： Revenue
from actemal
customers 1,660,327,049 1,613,004,324 661,950,594 575,720,139 - 733,086,263 962,290,400 44,632,631 - 6,251,011,400
Inter-segment revenue - - - - - - - 19,540,858 (19,540,858) -
Operating expenases (1,559,994,562) (1,391,502,345) (765,383,427) (553,961,387) (15,105,664) (657,759,451) (905,899,797) (69,074,627) 43,699,473 (5,874,981,787)
Investment income 376,755,247 13,563,748 - - - - - - (155,083,943) 235,235,052
Operating profit 477,087,734 235,065,727 (103,432,833) 21,758,752 (15,105,664) 75,326,812 56,390,603 (4,901,138) (130,925,328) 611,264,665
Assets 14,894,345,163 4,351,850,014 2,310,854,948 1,342,722,228 3,489,738,368 2,212,583,409 9,176,646,303 1,117,857,474 (6,926,482,636) 31,970,115,271
Liabilities (5,870,576,364) (451,844,523) (1,683,018,734) (173,749,907) (2,681,628,401) (1,596,173,166) (6,901,530,180) (402,418,390) 594,386,552 (19,166,553,113)
Depreciation and
amortisation (104,361,964) (137,750,263) (88,418,193) (62,170,667) (1,359,836) (60,585,702) (174,892,296) (12,371,709) - (641,910,630)
loss on asset
impairment (1,838,934) 25,229,669 996 - - - - - - 23,391,731
Capital expenditures 15,562,133 45,030,222 63,113,377 8,133,704 149,583,346 24,154,701 727,675,969 86,361,448 - 1,119,614,900
Other non-cash - - - - - - - - - -105
expenditures other
than depreciation and
amortisation106
(b) Segment information as at and for the year ended June 30, 2010 is as follows:
The Company Zhanjiang Electric Yuejiang Electric Yuejia Electric Zhongyue Energy
Zhenneng Electr
ic Jinghai Electric Other Elimination Total
Revenue 1,268,623,072 1,283,567,765 588,712,964 508,831,474 - 354,582,210 1,025,867,865 259,437,965 (18,774,978) 5,270,848,337
Including: Revenue
fromextemal
customers
1,268,623,072 1,283,567,765 588,712,964 508,831,474 - 354,582,210 1,025,867,865 240,662,987 - 5,270,848,337
Inter-segment revenue - - - - - - - 18,774,978 (18,774,978) -
Operating expenses (1,193,802,290) (1,079,678,444) (639,252,501) (486,568,040) - (315,354,241) (974,925,893) (239,646,063) 24,392,350 (4,904,835,122)
Investment income 171,794,904 5,617,373 - - - - - - 1,970,106 179,382,383
Operating profit 246,615,686 209,506,694 (50,539,537) 22,263,434 - 39,227,969 50,941,972 19,791,902 7,587,478 545,395,598
Assets 14,908,152,082 4,161,243,175 2,368,931,724 1,659,374,049 3,282,402,997 1,313,549,544 7,495,195,327 79,086,377 (5,811,433,957) 29,456,501,318
Liabilities (5,870,576,364) (394,338,870) (1,752,001,463) (367,621,232) (2,478,291,109) (991,463,804) (5,979,184,638) (136,797,789) 346,803,990 (17,623,471,279)
Depreciation and
amortisation
(105,371,988) (143,792,326) (90,115,159) (61,735,444) (1,190,842) (36,146,414) (173,421,163) (25,300,095) - (637,073,431)
Loss on asset impairment - 17,196 (215,800) - - - - 26,526 - (172,078)
Capital expenditures 21,110,516 21,470,974 50,826,619 21,159,432 91,830,559 11,265,922 977,721,522 106,027,394 - 1,301,412,938
Other non-cash
expenditures other
than depreciation
and amortisation - - - - - - - - - -
The group’s main operation income largely comes from power plants in China engaged in the development and operation, and all of the assets
are in China.107
VII.Related party relationships and related party transactions
(1) General information of the parent company
(a) General information of the parent company
(b) Registered capital and changes in registered capital of the parent company
December 31, 2009 Current year Current year June 30,2010
Yudean Group 20,000,000,000 - - 20,000,000,000
(c) The proportion of interests and voting rights in the Company held by the parent company
December 31, 2009 June 30,2010
Interest
held%
Voting rights
%
Interest
held%
Voting rights
%
Yudean Group 46.34% 46.34% 48.99% 48.99%
(2) Information of subsidiaries
The general information and other related information of the subsidiaries is set out in
Note 4.
(3) Information of associates
The general information and other related information of the associates is set out in
Note 5(8).
Form
of
busin
ess
Place of
registratio
n
Legal
repre
sentat
ive Nature of business
Organization
code
Yudean Group Stateowne
d
enter
prise
Guangzho
u
Pan
Li
Power plant operating,electricity
assets management, electricity
generation
73048602-2108
(4) Information of other related parties
Name of party Relationship with the Company
Maoming Thermal Controlled by the parent company
Shaoguan Electric Power plant Controlled by the parent company
Shaoguan Plant D Controlled by the parent company
Shajiao C Controlled by the parent company
Yudean Property Controlled by the parent company
Xinfengjiang Controlled by the parent company
Guangdong Yudean Zhanjiangsheng Matter
Power Co., Ltd.
Controlled by the parent company
Guangdong Yudean Group Co., Ltd., Zhuhai
Power Plant
Controlled by the parent company
Guangdong Zhuhai Jinwan Power Co., Ltd. Controlled by the parent company
Guangdong Yudean Property Management
Co.,Ltd.
Controlled by the parent company
Guangdong Yunfu Electric Co., Ltd. Controlled by the parent company
Guangdong Yudean Environment Protection
Company
Controlled by the parent company
Fuel Supply The Group’s associate and Controlled by
the parent companyYudean
Guangqian Electric The Group’s associate and Controlled by
the parent companyYudean
Yudean Westem The Group’s associate and Controlled by
the parent companyYudean
Yudean Finance The Group’s associate and Controlled by
the parent companyYudean
Yudean Shipping The Group’s associate and Controlled by
the parent companyYudean
Shanxi Energy
The Group’s associate and Controlled by
the parent companyYudean
Red Bay
The Group’s associate and Controlled by
the parent companyYudean
Shibeishan Wind
The Group’s associate and Controlled by
the parent companyYudean
Huizhou Natural gas The Group’s associate
Jiangkeng The Group’s associate
Zhongxinkeng The Group’s associate
Binliangjiang The Group’s associate
Lincang Yuntou The Group’s associate
Wenxin Yuntou The Group’s associate109
(5) Related party transactions
(a) Purchase and sale of goods, providing and receiving services
January-June 2009 January-June 2010
Related parties
Type of
related-party
transaction
Content of
related-party
transaction
Pricing
policy and
decision-ma
king process
Proportion Proportion
Maoming
Thermal
Sale of goods Steam sales Agreement
price
5,097,536 13.56% - -
Fuel Supply Purchase of
goods
Fuel purchase Agreement
price
3,354,520,178 82.77% 3,189,984,045 76.30%
Shaoguan
Electric
Purchase of
goods
Purchase fuel and
material
Agreement
price
464,526,250 11.46%
563,768,442
13.49%
Maoming
Thermal
Purchase of
goods
Fuel purchase Agreement
price
- -
4,465,700
0.11%
Yudean
Environment
protection
Purchase of
goods
Purchase material
Agreement
price
- -
15,334,019
0.37%
Shajiao C Providing
services
Providing
maintenance
services
Agreement
price
12,557,120 40.02% 5,456,400 14.36%
Zhuhai Power Providing
services
Providing
maintenance
services
Agreement
price
- - 435,575 1.15%
Zhuhai Jinwan Providing
services
Providing
maintenance
services
Agreement
price
- - 157,365 0.41%
Guangqian
Electric
Providing
services
Providing
maintenance
services
Agreement
price
- - 1,906,700 5.02%
Huizhou Natural
gas
Providing
services
Providing
maintenance
services
Agreement
price
- - 2,240,317 5.89%
Shaoguan Power Providing
services
Acceptance of
management
services
Agreement
price
61,558,557 67.59% 103,151,328 76.62%
Maoming
Thermal
Providing
services
Acceptance of
management
services
Agreement
price
27,957,633 30.70% 30,000,214 22.28%
Yudean shipping Providing
services
Acceptance of
tugboat services
Agreement
price
5,433,333 100% 5,330,000 100%
Xinfengjiang Providing
services
Acceptance of
management
services
Agreement
price
761,415 0.45% 671,469 0.36%
(b) Rental expense
January-June 2009 January-June 2010110
Shaoguan Plant D 1,750,737 -
Yudean Property 1,700,160 1,649,091
3,450,897 1,649,091
Percentage 100% 72.87%
(c) Common expense allocation
The Company’s branches Shajiao A and Shajiao C agreed to allocate certain common
expenses according to agreed allocation basis. For the year January-June 2010, the
expense reimbursement received from Shajiao C amounted to approximately RMB
1,482,633 (January-June 2009: RMB1,558,618).
(d) Guarantee
Gurantor Guarantee Amount The starting date The maturity date
Whether fulfilied the guar
antee or not
The
Company
Lincang Yuntou 34,300,000 25/12/2006 25/12/2021 No
The
Company
Lincang Yuntou 13,720,000 29/07/2008 29/07/2020 No
The
Company
Weixin Yuntou 88,000,000 19/03/2009 19/03/2012 No
The
Company
Weixin Yuntou 200,000,000 22/09/2009 22/09/2014 No
The
Company
Weixin Yuntou 100,000,000 15/03/2010 15/03/2014 No
The
Company
Binglangjiang 29,000,000 30/11/2007 30/11/2021 No
The
Company
Binglangjiang 13,050,000 30/11/2007 30/11/2018 No
The
Company
Binglangjiang 14,500,000 30/11/2007 30/11/2015 No
The
Company
Binglangjiang 43,500,000 25/12/2007 25/12/2022 No
The
Company
Binglangjiang 43,500,000 19/12/2007 18/12/2024 No
The
Company
Binglangjiang 120,000,000 18/03/2008 18/03/2028 No
The
Company
Binglangjiang 58,000,000 31/10/2008 30/10/2025 No
The
Company
Binglangjiang 72,500,000 14/11/2008 14/11/2020 No
The
Company
Binglangjiang 72,500,000 27/05/2009 27/05/2023 No
The
Company
Binglangjiang 93,670,000 22/06/2009 22/06/2029 No
The
Company
Binglangjiang 72,500,000 23/06/2010 23/06/2015 No111
The
Company
Yudean
Shipping
25,146,100 27/09/2008 27/09/2013 No
The
Company
Yudean
Shipping
106,456,000 26/09/2007 (i) No
(e) The period of validity of this ship manufacturing payment deposits will be expired
at the first when the ship is received and accepted by buyer, or all the payment for
second, third, forth contracts and related late fee have been settled.
(f)Loan of capital
In 2010, considering the actual capital requirement, Yudean Finance lent the Group
borrowings with aggregate amounted to RMB 3,601,500,000 (January-June 2009:
RMB2,235,000,000), the Group paid interest for such borrowing at RMB77,318, 689
(January-June 2009: RMB78,279,197).
(g) Interest income
January-June 2009 January-June 2010
Interest income from cash in Yudean
Finance
6,357,906
7,515,606
Weixin Yuntou 7,294,300 7,059,000
Yudean Western 2,058,292 1,528,133
Lincang Yuntou - 595,997
Shaxi Energy 203,373 4,425,523
15,913,871 21,124,259
Percentage 87.05% 92.62%
The interest rate of cash in Yudean Finance is the same as the interest rate of cash in
bank for the same period.112
(h)Interest expense
January-June 2009 January-June 2010
Interest paid to Yudean for the entrust loan - 3,610,800
Interest paid to Yudean Finance for
Discount 6,413,960 10,732,358
Interest paid to Yudean Finance for
borrowing
78,279,197
77,318,689
84,693,157 91,661,847
Percentage 27.27% 31.23%
(i)Joint investment
As of June 30, 2010, the Group invested in the following subsidiaries and associates
jointly with Yudean:
Attrbutable equity interest
owned by yudean %
Yudean Finance 65%
Fuel Supply 65%
Shanxi Energy 60%
Guangqian Electric 60%
Shibeishan 40%
Red Bay 40%
Yudean Westm 35%
Yudean Shipping 45%
Huizhou Natural gas 35%113
(j) Receivables from and payables to related parties
December 31, 2009 June 30, 2010
Monetary fund Yudean Finance 1,125,031,828 1,026,213,951
Account receivables Shajiao C 16,086,515 5,456,400
Guangqian Electric - 1,906,700
Huizhou Natural gas 66,808 2,240,317
Zhuhai Electric 16,500 435,575
Zhuhai Jinwan - 157,365
16,169,823 10,196,357
Other receivables Wenxin Yuntou 260,406,900 260,390,000
Shanxi Energy 153,423,710 197,465,575
Yudean Westm 90,480,274 62,494,526
Shajiao C 3,387,831 1,482,633
Yudean Property 566,720 566,720
Zhongxinkeng 430,125 -
Yudean Property 180,320 180,320
Yunfu Power 19,058 -
Biomass electric - -111
508,894,938 522,579,663
Advances to
suppliers Fuel supply 477,688,698 537,570,000
Long-term
receivable
Lincang Yuntou
20,619,670 20,616,378114
December 31, 2009 June 30, 2010
Account Payable Fuel supply 607,562,245 852,863,195
Maoming Thermal 52,675,188 61,894,150
Yudean Shipping 1,815,000 -
Xinfengjing 166,182 134,161
662,218,615 914,891,506
Other payables Shaoguan Electric 297,033,465 280,920,374
Shaoguan D 1,750,737 1,750,737
Yudean Environment
protection 1,316,483 4,189,291
Maoming Thermal 1,112,382 -
Yudean Property 7,000 -
Biomass electric 111 -
Yudean Shipping - 5,395,000
301,220,178 292,255,402
Interest payable Yudean Finance - 3,899,766
Dividends payable Shaoguan D 3,521,190 3,521,190
Short-term
borrowings
Yudean Finance
1,969,000,000 3,035,500,000
Yudean Group - 550,000,000
1,969,000,000 3,585,500,000
Non-current liability
due in 1 year
Yudean Finance
39,360,000 25,000,000
Long-term
borrowings
Yudean Finance 1,000,000,000 975,000,000
VIII. Contingent liability
As disclosed in Note 75(d), as of June 30, 2010, the group provided a guarantee for
accounts payable of Yudean Shipping amounted to RMB131,602,100; the group
provided a Financing guarantee for accounts payable of Binglangjiang Amounted to
RMB 72,500,000,and provides joint and several liability guarantee for bank
borrowings amounted to RMB560,220,000, Rmb48,020,000 andRmb388,000,000,
which belong to Binglangjiang, Lincang Yuntou and Weixin Yuntou respectively.115
IX. Commitments
The first Communication Meeting in Year 2010 of the Sixth Board of directors of the company
was held on January 16, 2010, and the “The proposal on Building the Wholly-owned Subsidiary of
Maoming Bohe Projects” was adopted. According to this proposal, we will set up the
Wholly-owned Subsidiary of Bohe Project, with the registered capital is 285 million yuan, the
initial term of capital is 150 million yuan. Up to June 30, 2010, we have registered 150 million
yuan for setting up Maoming Bohe Coal-Electricity Company.
“The proposal on Replenishment for Guangdong Yudean Jinghai Power Generation Co. Ltd” was
passed in the 11th meeting of the sixth board of directors of the company held on April 15, 2010.
According to this motion, we will replenish 565.0255 million yuan for Jinghai Power Plant based
on 65% shareholding proportion, which will remain by us after replenishment.
“The proposal on Investment for the “a big pressure small” Project of Coal-fired Units of
Shaoguan Power Plant” was passed in the 11th meeting of the sixth board of directors of the
company held on April 15, 2010. According to this motion, we will participate in investing the
construction for the “a big pressure small” Project of Coal-fired Units of Shaoguan Power
Generation Plant, and in the long term of replenishment 690.69 million yuan for Yuejang Power
Plant based on 65% shareholding proportion in accordance with the construction progress of
projects, which will remain by us after replenishment.
“The proposal on Replenishment for Guangding Yudean Shipping Co., Ltd” was approved in the
13th meeting of the Sixth board of directors of the company held on May 15, 2010. According to
this proposal, we will replenish 0.30303 billion yuan for Yudean Shipping based on 35%
shareholding percentage, which will remain by us after replenishment.
X. Subsequent Event on the Balance Sheet Date
“The proposal on Related Transaction Schemes of Material Assets Reorganization for Issued
Shares Purchased” was approved in the 14th meeting of the Sixth board of directors of the
company held on July 28, 2010. We will issue the stocks to purchase 45% equity of Guangdong
Huizhou Pinghai Power Plant Co., Ltd of Yudean Group Company, 90% of Guangdong Yudean
Yunhei Power Plant Co. Ltd., 60% of Shenzhen Guangqian Electric Power Co., Ltd, 35% of
Guangdong Huizhou Natural Gas Power Co. Ltd., 90% of Guangdong Yudean Yunfu Power Plant
Co., Ltd., 40% of Guangdong Yudean Shibeishang Wind-Energy Development Co., Ltd., and 20%
Guangdong Guohua Yudean Taishan Power Plant Co. Ltd. The transaction prices of the material
assets reorganization are confirmed based on the evaluated value written on the assets evaluated
report remarked on State-owned Assets Supervision and Administration Commission and issued
by assets evaluation agency with related qualification of securities and futures.116
XI. Notes to the Company’s financial statements
(1) Long-term equity investments
December 31, 2009 June 30, 2010
Subsidiaries (b) 5,884,864,510 6,359,864,510
Associated 4,141,938,886 4,202,013,403
Other long-term equity investment 482,103,707 482,103,707
10,508,907,103 11,043,981,620
Less: Provision for impairment of
long-term equity investments (a)
(35,557,877) (35,557,877)
10,473,349,226 11,008,423,742
a) Impairment of long-term equity investments
Decemger 31,
2009
Increased in
current period
Decreased in
current period June 30,
Investment in subsidiaries
－Yuejia Electric (35,557,877) - - (35,557,877)117
b) Subsidiaries
Accounting
method
Original
Investment cost December 31, 2009
Current yaar
movement June 30,
Interest
held %
Voting
rights held
%
Impairment
provision
Current year
accrual
impairment
providion
Cash dividends
declared this ye
ar
Zhanjiang
Electric Cost method 2,185,334,400 2,185,334,400 2,185,334,400 76% 76% - - 114,000,
Yuejia Electric Cost method 701,279,338 701,279,338 701,279,338 58% 58% (35,557,877) -
Yuejiang Electric Cost method 500,500,000 500,500,000 500,500,000 65% 65% - -
Zhenneng
Electric Cost method 102,000,000 288,561,587 288,561,587 53.28% 53.28% - - 27,520,
Jinghai Electric Cost method 102,000,000 1,040,368,870 325,000,00 1,365,368,870 65% 65% - -
Oil shale power Cost method 66,100,000 196,398,200 196,398,200 83.66% 83.66% - -
Zhanjiang Wind
Power Cost method 112,000,000 121,044,000 121,044,000 70% 70% - -
Anxin Cost method 20,000,000 20,000,000 20,000,000 100% 100% - -
Humeng Electric Cost method 90,000,000 90,000,000 90,000,000 60% 60% - -
Bohe Coal
Electric Cost method 150,000,000 - 150,000,00 150000000 100% 100% - -
Zhongyue
Energy Cost method 390,000,000 741,378,115 741,378,115 90% 90% - -
5,884,864,510 475,000,00 6,359,864,510 (35,557,877) - 141,520,
(2) Investment Income
January-June 2009 January-June 201
Share of profit of investees under equity
method of accounting 151,604,354 215,853,476
Profit/ cash dividends declared by investees 6,474,800 141,520,195118
under cost method of accounting
Entrusted Loan interest income 10,013,600 11,977,276
Income from available-for-sale financial
assets 3,702,150 7,404,300
171,794,904 376,755,247
No significant restriction on the receipt of the Company’s investment income.119
(3) Supplemental information of cash flow statements
(a) Reconciliation from the net profit to the cash flow operating activities
January-June 2009 January-June 2010
Net profit 224,852,856 449,697,688
Add: Provisions for assets
impairment - (1,838,934)
Depreciation of fixed assets and
Amortisation of intangible assets 103,632,594 102,622,570
Amortisation of intangible assets 1,739,394 1,739,394
Financial expenses 103,386,807 114,497,407
Investment losses (171,794,904) (376,755,247)
Decrease in deferred tax
(increase) 1,995,206 -
Increase/(Decrease) in
inventories 22,844,063 17,723,346
Decrease/(Increase) in operating
receivables (217,277,208) (90,983,490)
Increase/(Decrease) in operating
payables 467,109,431 (16,078,092)
Net cash flows from operating
activities
536,488,239
200,624,642
(b) Net changes of Cash and cash equivalent
January-June 2009 January-June 2010
Cash at end of year 70,772,220 693,469,527
Less: Cash at beginning of year 271,387,003 287,691,522
Net increase/(decrease) in cash (200,614,783) 405,778,005
XII. Breakdown of extraoidinary gains and losses
January-June 2009 January-June 2010
Net profit 432,158,683 484,049,327
Add: Non-operating Expenses 20,025,732 1,793,935
Less: Non-perating income 1,543,313 3,089,576
Entrusted loans investment income 7,510,200 8,982,957
Recovery of bad debts written off - 1,379,200
Net profit after deducting non-recurring 443,130,902 472,391,529120
gains and losses
Including: Net profit attributable to Parent
company
375,345,742 418,989,163
Minor shareholders’ equit 67,785,160 53,402,366121
XIII. Return on equity and earnings per share
Weighted average return on Earnings per share
equity(%) Basic earnings per share Diluted earnings per share
2009 2010 2009 2010 2009 2010
January-June January-June January-June January-June January-June January-June
Consolidated net profit
attributable to shareholders
of the Company 4.03% 4.42% 0.14 0.16 0.14 0.16
Consolidated net profit
excluding non-routine
items
attributable to shareholders
of the Company 4.14% 4.30% 0.14 0.15 0.14 0.15122
VIII. Documents for reference
1.Text of Semi-ammual report carrying the signature of Chairman of the Board;
2.Financial statements bearing the seal and signature of legal representative, financial controller
and the person in charge of the accounting organ;
3.All original copies of official documents and notices, which were disclosed in Securities Times,
China Secunities and Hong Kong Commercial Daily (Both English and Chinese version);
4.The article of association of the Company;
5. English version of the semi-annual report.
The documents mentioned above are kept in office, and are ready for reference at any
time (except public holidays, Saturday and Sunday).
Guangdong Electric Power Development Co., Ltd.
Chairman of the board of directors: Pan Li
August 20, 2010
