The Third Quarterly Report 2016 Stock code:000539、200539 Stock Abbreviation:Yue Dian Li ,Yue Dian Li B Bond code:112162.SZ Bond short name:12 Yudean Bond Guangdong Electric Power Development Co., Ltd. The Third Quarterly Report 2016 October 2016 1 The Third Quarterly Report 2016 1 Important notes The Board of Directors,the Supervisory Committee, the directors, the supervisors, and executives of the Company guarantee that there are no significant omissions, fictitious or misleading statements carried in the Quarterly Report and we will accept individual and joint responsibilities for the truthfulness, accuracy and completeness of the Quarterly Report. All the directors attended the board meeting for reviewing the Quarterly Report except the follows: The name of director who did The name of director who was Positions Reason not attend the meeting in person authorized Zhong Weimin Director Due to business Hong Rongkun Kong Huitian Director Due to business Yao Jiheng Li Mingliang Director Due to business Yao Jiheng Yang Xinli Director Due to business Hong Rongkun Zhang Xueqiu Director Due to business Sha Qilin Liu Tao Independent Director Due to business Zhang Hua Mao Fugen Independent Director Due to business Shen Hongtao Wang Xi Independent Director Due to business Shen Hongtao Mr. Huang Zhenhai, Person in charge of the Company, Ms.Li Xiaoqing , Person in charge of accounting works, Mr.Meng Fei ,CFO as well as person in charge of accounting institution represent and warrant the financial and accounting report in the third quarterly report is true and complete. 2 The Third Quarterly Report 2016 II. Main financial data and changes of shareholders I.Main financial data and financial index Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting error correction or not. □ Yes √ No As at the end of the reporting Changed (%)over end of As at the end of last year period prev. year Gross assets(RMB) 71,619,435,369.00 71,919,934,143.00 -0.42% Net assets attributable to the shareholders of the listed company 23,919,977,656.00 23,754,596,981.00 0.70% (RMB) Increase/decrease over Between beginning of Changed (%)over Reporting period the same period of last the year to the end of end of prev. year year(%) the report period Operating income(RMB) 6,207,318,559.00 -8.40% 16,442,308,125.00 -16.48% Net profit attributable to the shareholders of the listed company 738,187,983.00 -19.69% 1,476,562,767.00 -44.07% (RMB) Net profit after deducting of non-recurring gain/loss attributable 744,574,860.00 -17.47% 1,488,076,826.00 -38.63% to the shareholders of listed company(RMB) Cash flow generated by business -- -- 8,050,018,485.00 -6.29% operation, net(RMB) Basic earning per share(RMB/Share) 0.14 -22.22% 0.281 -44.14% Diluted gains per 0.14 -22.22% 0.281 -44.14% share(RMB/Share)(RMB/Share) Weighted average income/asset ratio 3.13% -0.91% 6.18% -5.89% (%) In RMB Amount (Year-beginning to Items Notes the end of the report period.) Non-current asset disposal gain/loss(including the write-off part -1,156,407.00 for which assets impairment provision is made) Govemment subsidy recognized in current gain and loss(excluding those closely related to the Company’s business 4,330,234.00 and granted under the state’s policies) 3 The Third Quarterly Report 2016 Other non-business income and expenditures other than the above -26,498,677.00 Less:Amount of influence of income tax -1,461,589.00 Influence on minority shareholders’ equity (after tax) -10,349,202.00 Total -11,514,059.00 -- For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as recurring gains and losses, it is necessary to explain the reason. □ Applicable√ Not applicable None of Non-recurring gain /loss items recognized as recurring gain /loss/items as defined by the information disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period. 4 The Third Quarterly Report 2016 II. Total Shareholders and Shares Held by Top Ten Shareholders at the End of the Reporting Period 1. About Total Common Shareholders, Total Preference Shareholders with the Voting Power Recovered and the Shares Held by Top Ten Common Shareholders In shares Total preference shareholders Total number of common with the voting power 111,580 0 shareholders at the period-end recovered at the end of the reporting period(if any) Shares held by the top 10 shareholders Share Amount of tradable Pledging or freezing Properties of Shareholder name proportio Quantity shares with Status of the shareholder Quantity n% Conditional held shares Guangdong Yudean Group Co., State-owned legal 67.39% 3,538,005,285 1,893,342,621 Ltd. person State-owned legal China Securities Finance Co., Ltd. 2.78% 145,748,980 person Guangdong Guangfa Electric State-owned legal 2.22% 116,693,602 Power Investment Co., Ltd. person Guangdong Electric Power State-owned legal 1.80% 94,367,341 Development Corporation person Domestic Natural Li Zhuo 0.41% 21,362,585 person BBH A/C VANGUARD Overseas Legal EMERGING MARKETS STOCK 0.33% 17,484,844 person INDEX FUND Overseas Legal NORGES BANK 0.31% 16,235,358 person CHINA INT'L CAPITAL CORP Overseas Legal HONG KONG SECURITIES 0.29% 15,322,336 person LTD NOMURA SINGAPORE Overseas Legal 0.24% 12,599,843 LIMITED person Central Huijin Assets State-owned legal 0.23% 12,258,200 Management Co., Ltd. person Shares held by the Top 10 Shareholders of Non-restricted shares Number of the non-restricted Share type Shareholders’ Names shares held Share type Quantity Guangdong Yudean Group Co., Ltd. 1,644,662,664 RMB Common shares China Securities Finance Co., Ltd. 145,748,980 RMB Common shares 5 The Third Quarterly Report 2016 Guangdong Guangfa Electric Power Investment 116,693,602 RMB Common shares Co., Ltd. Guangdong Electric Power Development 94,367,341 RMB Common shares Corporation Li Zhuo 21,362,585 RMB Common shares BBH A/C VANGUARD EMERGING MARKETS Foreign shares placed in 17,484,844 STOCK INDEX FUND domestic exchange Foreign shares placed in NORGES BANK 16,235,358 domestic exchange CHINA INT'L CAPITAL CORP HONG KONG Foreign shares placed in 15,322,336 SECURITIES LTD domestic exchange Foreign shares placed in NOMURA SINGAPORE LIMITED 12,599,843 domestic exchange Central Huijin Assets Management Co., Ltd. 12,258,200 RMB Common shares The fourth largest shareholder Guangdong Electric Power Development Explanation on associated relationship or concerted Corporation is the wholly-owned subsidiaries of the largest shareholder action of the above shareholders Yudean Group. These two companies have relationships; whether the other shareholders have relationships or unanimous acting was unknown. The Fifth largest shareholder Li Zhuo holds 21,074,665 A shares of the Note to the top 10 common stockholders involved Company through stock account with credit transaction and guarantee and in margin financing & securities lending (If any) holds287,920 A shares through ordinary stock account, hold 21,362,585 shares of the Company's stock totally. Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period. □ Yes √ No The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy –back agreement dealing in reporting period. 2.Total number of preferred shareholders and shareholding of top 10 preferred shareholders by the end of the report period □ Applicable √Not applicable 6 The Third Quarterly Report 2016 III. Significant Events I. Particular about large-margin change of main accounting statement item and financial index and its reason. √ Applicable □ Not applicable It is indicated in the reporting period the net profits assigned to the shareholders of listed companies have been 44.7% YoY drop. Weak power demand and anabatic competition have compelled drastic decline in electric quantity. Another reduction of on-grid price released by the state as of January, 1st has an intensely negative effect on the profits from power generation and return on investment from the associated company. Upon synthetic analysis of the aforesaid factors, the net profits are sizeable YoY drop. II. The progress of significant events and influence, as well as the analysis and explanation on resolving proposal. □ Applicable √Not applicable III. Commitments finished in implementation by the Company, shareholders, actual controller, acquirer, directors, supervisors, senior executives or other related parties in the reporting period and commitments unfinished in implementation at the end of the reporting period √Applicable□ Not applicable Time of Commitmen making Period of Fulfillm Commitment Type Contents t maker commitm commitment ent ent Commitment on share reform Commitment in the acquisition report or the report on equity changes Yue Dian Li is the only quoted platform of Yudean Within 5 years af Group’s electricity asset integration within the ter the completio boundary. ② Except Yue Dian Li and the n of major asset r electricity assets controlled by it, within 5 years eorganization Guangdong after the last recombination is done, Yudean Group Under Commitments in Yudean will pump the assets which meet the conditions of Novembe fulfillm assets reorganization Group Co., launching after reformation into Yue Dian Li r 3,2011 ent Ltd. gradually through purchasing and recombination and other ways, according to the situation of solutions to different problems, e.g. the imperfect examination and approval procedures, the situation of profitability, cooperation agreement and land 7 The Third Quarterly Report 2016 utilization. ③ At the aspects of the development of power project and assets purchasing, Yudean Group provides the priority for Yue Dian Li choose. If Yue Dian Li gives up development and purchasing, Guangkong Group will join Yue Dian Li under the situation that the project is completed and put into production, and that the purchase is done and the project meets the conditions of listing.For details, see June 5, 2014, published in the designated med ia "Announcement of Guangdong Electric Power Development Co.,Ltd. matters related to commitm ents". Commitments make in initial public offering or re-financing Equity incentive commitment Guangdong To maintain the stability of the market, Yudean Perform Other commitments Yudean Group promised not to reduce the Yudean electric July 8, ance is for medium and small 12 months Group Co., power shares within the next 12 months. 2015 complet shareholders Ltd. ed Completed on Yes time(Y/N) IV.Prediction of Business performance for 2016. Alert of loss or significant change in net profit from the beginning of year to the end of next report period or comparing with the same period of last year, and statement of causations. □ Applicable √Not applicable V. Investment in securities □ Applicable √Not applicable No Securities investment in period VI. Investment in derivatives □ Applicable √Not applicable There is no derivative investment during the report period. VII. Registration form of such Activities as Reception, Research, Communication, Interview in the Reporting Period √Applicable □Not applicable 8 The Third Quarterly Report 2016 Reception time Way of reception Types of visitors Basic index The Company’s current production of operation March 4,2016 Onsite investigation Organization conditions and the situation of the construction and development projects. The Company’s current production of operation June 13,2016 Onsite investigation Organization conditions and the situation of the construction and development projects. The Company’s current production of operation June 28,2016 Onsite investigation Organization conditions and the situation of the construction and development projects. The Company’s current production of operation July 15,2016 Onsite investigation Organization conditions and development projects. The Company’s current production of operation September 29,2016 Onsite investigation Organization conditions and development projects. VIII. Outward Guarantee against the Regulations □ Applicable √ Not applicable The Company had no guarantee outside against the regulation in the reporting period. IX. Non-operational Occupancy of the Company’s Capital by the Controlling Shareholder and its Related Parties □ Applicable √ Not applicable The Company had no non-operational fund occupation from controlling shareholders and its related party. 9 The Third Quarterly Report 2016 IV. Financial Statement I. Financial statement 1. Consolidated balance sheet Prepared by: Guangdong Electric Power Development Co., Ltd. September 30,2016 In RMB Items At the end of term Beginning of term Current asset: Monetary fund 6,434,501,238.00 5,237,406,725.00 Settlement provision Outgoing call loan Financial assets measured at fair value with variations accounted into current income account Derivative financial assets Bill receivable Account receivable 2,227,711,105.00 2,484,683,890.00 Prepayments 1,132,018,850.00 1,063,701,630.00 Insurance receivable Reinsurance receivable Provisions of Reinsurance contracts receivable Interest receivable 10,706,789.00 10,232,658.00 Dividend receivable 4,000,000.00 Other account receivable 154,214,547.00 188,899,280.00 Repurchasing of financial assets Inventories 1,402,989,421.00 1,333,654,623.00 Assets held for sales Non-current asset due in 1 year Other current asset 578,368,623.00 638,461,972.00 Total of current assets 11,940,510,573.00 10,961,040,778.00 Non-current assets: Loans and payment on other’s behalf disbursed 10 The Third Quarterly Report 2016 Disposable financial asset 1,272,659,414.00 1,094,350,488.00 Expired investment in possess Long-term receivable 131,907,487.00 128,640,631.00 Long term share equity investment 5,417,979,671.00 5,924,410,159.00 Property investment 9,091,136.00 9,567,835.00 Fixed assets 43,502,107,437.00 44,330,167,621.00 Construction in progress 5,585,696,465.00 5,613,398,840.00 Engineering material 1,913,477.00 1,673,547.00 Fixed asset disposal 6,490,498.00 3,475,384.00 Production physical assets Gas & petrol Intangible assets 1,698,521,951.00 1,663,430,069.00 R & D petrol 36,966.00 Goodwill 27,486,780.00 27,486,780.00 Long-germ expenses to be amortized 29,196,198.00 28,843,225.00 Deferred income tax asset 135,470,275.00 116,237,351.00 Other non-current asset 1,860,367,041.00 2,017,211,435.00 Total of non-current assets 59,678,924,796.00 60,958,893,365.00 Total of assets 71,619,435,369.00 71,919,934,143.00 Current liabilities Short-term loans 5,603,430,000.00 6,288,060,000.00 Loan from Central Bank Deposit received and hold for others Call loan received Financial liabilities measured at fair value with variations accounted into current income account Derivative financial liabilities Bill payable 1,300,245,477.00 593,971,146.00 Account payable 2,178,915,618.00 1,739,227,291.00 Advance payment 224,798.00 244,798.00 Selling of repurchased financial assets Fees and commissions receivable Employees’ wage payable 244,201,239.00 123,477,922.00 Tax payable 510,829,787.00 404,729,354.00 11 The Third Quarterly Report 2016 Interest payable 172,216,610.00 105,492,698.00 Dividend payable 9,703,930.00 8,640,994.00 Other account payable 3,593,399,181.00 3,536,133,625.00 Reinsurance fee payable Insurance contract provision Entrusted trading of securities Entrusted selling of securities Liabilities held for sales Non-current liability due in 1 year 1,105,268,753.00 1,851,670,652.00 Other current liability 1,918,564,247.00 1,711,348,630.00 Total of current liability 16,636,999,640.00 16,362,997,110.00 Non-current liabilities: Long-term loan 20,705,689,789.00 21,303,229,910.00 Bond payable 1,894,416,665.00 1,196,029,762.00 Including:preferred stock Sustainable debt Long-term payable 1,957,797,865.00 2,495,443,111.00 Long-term payable employees’s 74,814,135.00 85,827,126.00 remuneration Special payable 26,899,913.00 24,711,974.00 Expected liabilities Deferred income 104,140,723.00 103,256,725.00 Deferred income tax liability 50,370,776.00 87,243,028.00 Other non-current liabilities 39,000,000.00 39,000,000.00 Total non-current liabilities 24,853,129,866.00 25,334,741,636.00 Total of liability 41,490,129,506.00 41,697,738,746.00 Owners’ equity Share capital 5,250,283,986.00 5,250,283,986.00 Other equity instrument Including:preferred stock Sustainable debt Capital reserves 5,007,746,614.00 5,007,077,158.00 Less:Shares in stock Other comprehensive income 141,422,482.00 245,708,715.00 12 The Third Quarterly Report 2016 Special reserves Surplus reserves 6,845,001,818.00 5,812,191,775.00 Common risk provision Undistributed profit 6,675,522,756.00 7,439,335,347.00 Total of owner’s equity belong to the 23,919,977,656.00 23,754,596,981.00 parent company Minority shareholders’ equity 6,209,328,207.00 6,467,598,416.00 Total of owners’ equity 30,129,305,863.00 30,222,195,397.00 Total of liabilities and owners’ equity 71,619,435,369.00 71,919,934,143.00 Legal Representative: Huang Zhenhai Person in charge of accounting:Li Xiaoqing Accounting Dept Leader: Meng Fei 2.Parent Company Balance Sheet In RMB Items At the end of term Beginning of term Current asset: Monetary fund 971,728,581.00 682,950,639.00 Financial assets measured at fair value with variations accounted into current income account Derivative financial assets Bill receivable Account receivable 227,099,200.00 134,539,664.00 Prepayments 80,063,365.00 115,303,150.00 Interest receivable 1,279,235.00 1,818,442.00 Dividend receivable 21,512,934.00 Other account receivable 128,710,517.00 318,483,048.00 Inventories 139,447,545.00 141,559,999.00 Assets held for sales Non-current asset due in 1 year Other current asset 10,508,362.00 Total of current assets 1,548,328,443.00 1,426,676,238.00 Non-current assets: Disposable financial asset 1,272,659,414.00 1,094,350,488.00 Expired investment in possess 13 The Third Quarterly Report 2016 Long-term receivable 300,000,000.00 100,000,000.00 Long term share equity investment 22,575,296,396.00 22,588,550,554.00 Property investment 9,091,136.00 9,567,835.00 Fixed assets 1,112,927,185.00 1,217,618,892.00 Construction in progress 43,278,412.00 26,156,889.00 Engineering material Fixed asset disposal 7,479.00 Production physical assets Gas & petrol Intangible assets 93,099,324.00 95,876,179.00 R & D petrol Goodwill Long-germ expenses to be amortized Deferred income tax asset Other non-current asset 653,004,000.00 653,004,000.00 Total of non-current assets 26,059,363,346.00 25,785,124,837.00 Total of assets 27,607,691,789.00 27,211,801,075.00 Current liabilities Short-term loans 700,000,000.00 900,000,000.00 Financial liabilities measured at fair value with variations accounted into current income account Derivative financial liabilities Bill payable Account payable 326,127,377.00 292,714,747.00 Advance payment Employees’ wage payable 35,492,347.00 30,063,156.00 Tax payable 47,697,792.00 21,266,249.00 Interest payable 39,992,730.00 52,100,633.00 Dividend payable 9,703,930.00 8,640,994.00 Other account payable 96,788,643.00 112,031,125.00 Classified as held for sale debt Non-current liability due in 1 year Other current liability 1,208,240,000.00 1,509,599,589.00 Total of current liability 2,464,042,819.00 2,926,416,493.00 14 The Third Quarterly Report 2016 Non-current liabilities: Long-term loan 1,500,000,000.00 1,500,000,000.00 Bond payable 1,196,744,405.00 1,196,029,762.00 Including:preferred stock Sustainable debt Long-term payable Long-term payable to employees 21,971,652.00 24,192,962.00 Special payable Expected liabilities Deferred income 52,056,186.00 52,918,949.00 Deferred income tax liability 19,870,926.00 54,572,001.00 Other non-current liabilities Total of Non-current liabilities 2,790,643,169.00 2,827,713,674.00 Total of liability 5,254,685,988.00 5,754,130,167.00 Owners’ equity Share capital 5,250,283,986.00 5,250,283,986.00 Other equity instrument Including:preferred stock Sustainable debt Capital reserves 5,610,491,299.00 5,609,821,843.00 Less:Shares in stock Other comprehensive income 141,422,483.00 245,708,715.00 Special reserves Surplus reserves 6,845,001,818.00 5,812,191,775.00 Undistributed profit 4,505,806,215.00 4,539,664,589.00 Total of owners’ equity 22,353,005,801.00 21,457,670,908.00 Total of liabilities and owners’ equity 27,607,691,789.00 27,211,801,075.00 3.Consolidated Income statement of the Report period In RMB Items Amount in this period Amount in last period I. Income from the key business 6,207,318,559.00 6,776,239,369.00 Incl:Business income 6,207,318,559.00 6,776,239,369.00 15 The Third Quarterly Report 2016 Interest income Insurance fee earned Fee and commission received II. Total business cost 5,171,188,129.00 5,323,700,647.00 Incl:Business cost 4,594,220,998.00 4,644,479,136.00 Interest expense Fee and commission paid Insurance discharge payment Net claim amount paid Insurance policy dividend paid Insurance policy dividend paid Reinsurance expenses Business tax and surcharge 51,461,297.00 51,881,014.00 Sales expense 567,104.00 294,824.00 Administrative expense 176,112,019.00 230,113,038.00 Financial expenses 349,955,971.00 396,932,635.00 Asset impairment loss -1,129,260.00 Add:Gains from change of fir value (“-”for loss) Investment gain(“-”for loss) 190,223,865.00 175,459,458.00 Incl: investment gains from affiliates Gains from currency exchange(“-”for loss) III. Operational profit(“-”for loss 1,226,354,295.00 1,627,998,180.00 Add:Non-business income 954,763.00 40,074,816.00 Incl:Gains from disposal of -130,677.00 -894,294.00 non-current assets Less:Non business expenses 7,070,375.00 5,124,593.00 Incl:Loss from disposal of non-current assets IV.Total profit(“-”for loss) 1,220,238,683.00 1,662,948,403.00 Less:Income tax expenses 272,941,293.00 385,099,703.00 V. Net profit(“-”for net loss 947,297,390.00 1,277,848,700.00 Net profit attributable to the owners of 738,187,983.00 919,135,346.00 16 The Third Quarterly Report 2016 parent company Minority shareholders’ equity 209,109,407.00 358,713,354.00 VI. Net after-tax of Other 3,661,960.00 -148,390,700.00 comprehensive income Net after-tax of other comprehensive income attribut 3,661,960.00 -148,390,700.00 able to owners of the parent company. (I)Other comprehensive income items that will not be reclassified into gains/losses in the subsequent accounting period 1.Re-measurement of defined benefit pl ans of changes in net debt or net assets 2.Other comprehensive income under th e equity method investee can not be recl assified into profit or loss. (II) Other comprehensive income that will b 3,661,960.00 -148,390,700.00 e reclassified into profit or loss. 1.Other comprehensive income under th e equity method investee can be reclassi 0.00 0.00 fied into profit or loss. 2.Gains and losses from changes in fair 3,661,960.00 -148,390,700.00 value available for sale financial assets 3.Held-to-maturity investments reclassif ied to gains and losses of available for s ale financial assets 4.The effective portion of cash flow hed ges and losses 5.Translation differences in currency fin ancial statements 6.Other Net after-tax of other comprehensive incom e attributable to Minority shareholders’ equity VII. Total comprehensive income 950,959,350.00 1,129,458,000.00 Total comprehensive income 741,849,943.00 770,744,646.00 attributable to the owner of the parent 17 The Third Quarterly Report 2016 company Total comprehensive income 209,109,407.00 358,713,354.00 attributable minority shareholders VIII. Earnings per share (I)Basic earnings per share 0.14 0.18 (II)Diluted earnings per share 0.14 0.18 The current business combination under common control, the net profits of the combined party before achieved net profit of RMB 0.00, last period the combined party realized RMB0.00. Legal Representative:Huang Zhenhai Person in charge of accounting:Li Xiaoqing Accounting Dept Leader:Meng Fei 4.Income statement of the Parent Company of the Report period In RMB Items Amount in this period Amount in last period I. Income from the key business 622,332,773.00 618,417,649.00 Less:Business cost 460,750,721.00 437,221,777.00 Business tax and surcharge 4,652,331.00 3,826,245.00 Sales expense 20,333.00 Administrative expense 22,267,139.00 29,045,001.00 Financial expenses 51,406,097.00 72,350,203.00 Asset impairment loss Add:Gains from change of fir value (“-”for loss) Investment gain(“-”for loss) 284,325,421.00 404,687,794.00 Incl: investment gains from affiliates II. Operational profit(“-”for loss) 367,581,906.00 480,641,884.00 Add :Non-operational income 101,775.00 17,205,272.00 Including:Income from disposal of non-current assets Less:Non business expenses 173,158.00 319,011.00 Incl:Loss from disposal of non-current assets III.Total profit(“-”for loss) 367,510,523.00 497,528,145.00 Less:Income tax expenses 17,221,265.00 23,650,223.00 IV. Net profit(“-”for net loss) 350,289,258.00 473,877,922.00 18 The Third Quarterly Report 2016 V.Net of profit of other comprehensive i 3,661,960.00 -148,390,700.00 ncome (I)Other comprehensive income items that will not be reclassified into gains/losses in the subsequent accounting period 1.Re-measurement of defined benefit pl ans of changes in net debt or net assets 2.Other comprehensive income under th e equity method investee can not be recl assified into profit or loss. ( II ) Other comprehensive income that will b 3,661,960.00 -148,390,700.00 e reclassified into profit or loss. 1.Other comprehensive income under th e equity method investee can be reclassi 0.00 0.00 fied into profit or loss. 2.Gains and losses from changes in fair 3,661,960.00 -148,390,700.00 value available for sale financial assets 3.Held-to-maturity investments reclassif ied to gains and losses of available for s ale financial assets 4.The effective portion of cash flow hed ges and losses 5.Translation differences in currency fin ancial statements 6.Other VI. Total comprehensive income 353,951,218.00 325,487,222.00 VII. Earnings per share: (I)Basic earnings per share (II)Diluted earnings per share 5. Consolidated Income statement between the beginning of the year and end of the report period In RMB Items Amount in this period Amount in last period I. Total operating income 16,442,308,125.00 19,687,792,601.00 Including:Operating income 16,442,308,125.00 19,687,792,601.00 19 The Third Quarterly Report 2016 Interest income Insurance gained Commission charge and commission income II. Total operating cost 14,066,645,693.00 15,798,835,076.00 Including:Operating cost 12,362,131,227.00 13,826,201,155.00 Interest expense Commission chare and commission expense Insurance discharge payment Net claim amount paid Insurance policy dividend paid Insurance policy dividend paid Reinsurance expenses Business tax and 127,569,340.00 157,843,720.00 surcharge Sales expense 1,303,572.00 1,115,961.00 Administrative expense 524,842,412.00 604,476,325.00 Financial expenses 1,051,928,402.00 1,209,197,915.00 Asset impairment loss -1,129,260.00 Add:Gains from change of fir value (“-”for loss) Investment gain(“-”for loss) 318,945,399.00 695,430,176.00 Incl: investment gains from affiliates Gains from currency exchange(“-”for loss) III. Operational profit(“-”for loss 2,694,607,831.00 4,584,387,701.00 Add:Non-business income 11,564,474.00 61,274,956.00 Incl:Gains from disposal of non-current assets Less:Non business expenses 21,238,175.00 6,189,308.00 Incl:Loss from disposal of non-current assets IV.Total profit(“-”for loss) 2,684,934,130.00 4,639,473,349.00 20 The Third Quarterly Report 2016 Less:Income tax expenses 688,423,363.00 963,488,425.00 V. Net profit(“-”for net loss 1,996,510,767.00 3,675,984,924.00 Net profit attributable to the owners of 1,476,562,767.00 2,640,130,361.00 parent company Minority shareholders’ equity 519,948,000.00 1,035,854,563.00 VI. Net after-tax of Other -104,286,232.00 45,863,415.00 comprehensive income Net after-tax of other comprehensive income attribut -104,286,232.00 45,863,415.00 able to owners of the parent company. (I)Other comprehensive income items that will not be reclassified into gains/losses in the subsequent accounting period 1.Re-measurement of defined benefit pl ans of changes in net debt or net assets 2.Other comprehensive income under th e equity method investee can not be recl assified into profit or loss. (II) Other comprehensive income that will b -104,286,232.00 45,863,415.00 e reclassified into profit or loss. 1.Other comprehensive income under th e equity method investee can be reclassi 970,838.00 fied into profit or loss. 2.Gains and losses from changes in fair -105,257,070.00 45,863,415.00 value available for sale financial assets 3.Held-to-maturity investments reclassif ied to gains and losses of available for s ale financial assets 4.The effective portion of cash flow hed ges and losses 5.Translation differences in currency fin ancial statements 6.Other Net after-tax of other comprehensive incom e attributable to Minority shareholders’ 21 The Third Quarterly Report 2016 equity VII. Total comprehensive income 1,892,224,535.00 3,721,848,339.00 Total comprehensive income attributable to the owner of the parent 1,372,276,535.00 2,685,993,776.00 company Total comprehensive income 519,948,000.00 1,035,854,563.00 attributable minority shareholders VIII. Earnings per share (I)Basic earnings per share 0.281 0.503 (II)Diluted earnings per share 0.281 0.503 The current business combination under common control, the net profits of the combined party before achieved net profit of RMB 0.00, last period the combined party realized RMB0.00. 6.Income Statement of the Parent Between the Beginning of the Year and End of the Report Period In RMB Items Amount in this period Amount in last period I. Business income 1,448,006,883.00 1,716,084,263.00 Less:Business cost 1,091,118,775.00 1,206,183,589.00 Business tax and surcharge 12,646,846.00 14,816,662.00 Sales expense 9,300.00 20,333.00 Administrative expense 77,549,050.00 83,151,443.00 Financial expenses 163,432,962.00 232,263,185.00 Asset impairment loss Add:Gains from change of fir value (“-”for loss) Investment gain(“-”for loss) 2,137,470,736.00 2,475,836,663.00 Incl: investment gains from affiliates II. Operational profit 2,240,720,686.00 2,655,485,714.00 Add:Non-business income 1,897,148.00 18,925,055.00 Incl:Gains from disposal of non-current assets Less:Non business expenses 531,243.00 345,541.00 Incl:Loss from disposal of non-current assets III.Total profit 2,242,086,591.00 2,674,065,228.00 Less:Income tax expenses 35,569,606.00 45,178,638.00 22 The Third Quarterly Report 2016 IV. Net profit 2,206,516,985.00 2,628,886,590.00 V. Net after-tax of Other comprehensive -104,286,232.00 45,863,415.00 income Net after –tax of profit of other comprehensive incom e attributable to owners of the parent co mpany. (I)Other comprehensive income items that will not be reclassified into gains/losses in the subsequent accounting period 1.Re-measurement of defined benefit pl ans of changes in net debt or net assets 2.Other comprehensive income under th e equity method investee can not be recl -104,286,232.00 45,863,415.00 assified into profit or loss. (II) Other comprehensive income that will b 970,838.00 e reclassified into profit or loss. 1.Other comprehensive income under th e equity method investee can be reclassi -105,257,070.00 45,863,415.00 fied into profit or loss. 2.Gains and losses from changes in fair value available for sale financial assets 3.Held-to-maturity investments reclassif ied to gains and losses of available for s ale financial assets 4.The effective portion of cash flow hed ges and losses 5.Translation differences in currency fin ancial statements 6.Other 2,102,230,753.00 2,674,750,005.00 V. Earnings per share (I)Basic earnings per share (II)Diluted earnings per share 7. Consolidated Cash Flow Statement Between the Beginning of the Year and End of the Report Period In RMB 23 The Third Quarterly Report 2016 Items Amount in this period Amount in last period I.Cash flows from operating activities Cash received from sales of goods or 19,580,053,140.00 23,307,995,187.00 rending of services Net increase of customer deposits and capital kept for brother company Net increase of loans from central bank Net increase of inter-bank loans from other financial bodies Cash received against original insurance contract Net cash received from reinsurance business Net increase of client deposit and investment Net increase of the financial assets that are measured at fair value and whose movement is counted to the current gain and loss Cash received as interest, processing fee and commission Net increase of inter-bank fund received Net increase of repurchasing business Tax returned 2,298,081.00 6,849,537.00 Other cash received from business 192,906,314.00 251,610,796.00 operation Sub-total of cash inflow 19,775,257,535.00 23,566,455,520.00 Cash paid for purchasing of 8,179,839,824.00 10,842,305,367.00 merchandise and services 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 24 The Third Quarterly Report 2016 Cash paid to staffs or paid for staffs 1,124,600,927.00 1,145,428,589.00 Taxes paid 2,085,277,353.00 2,648,618,826.00 Other cash paid for business activities 335,520,946.00 340,198,354.00 Sub-total of cash outflow from business 11,725,239,050.00 14,976,551,136.00 activities Cash flow generated by business 8,050,018,485.00 8,589,904,384.00 operation, net II.Cash flow generated by investing Cash received from investment 217,476,155.00 retrieving Cash received as investment gains 512,343,277.00 605,182,713.00 Net cash retrieved from disposal of fixed assets, intangible assets, and other 1,578,434.00 9,985,554.00 long-term assets Net cash received from disposal of subsidiaries or other operational units Other investment-related cash received 52,028,777.00 Sub-total of cash inflow due to 513,921,711.00 884,673,199.00 investment activities Cash paid for construction of fixed assets, intangible assets and other 2,311,505,369.00 3,373,186,865.00 long-term assets Cash paid as investment Net increase of loan against pledge Net cash received from subsidiaries and other operational units Other cash paid for investment activities Sub-total of cash outflow due to 2,311,505,369.00 3,373,186,865.00 investment activities Net cash flow generated by investment -1,797,583,658.00 -2,488,513,666.00 III.Cash flow generated by financing Cash received as investment 91,950,000.00 33,000,000.00 Incl: Cash received as investment from 141,950,000.00 33,000,000.00 minor shareholders Cash received as loans 10,077,351,398.00 18,916,451,051.00 Cash received from bond placing 25 The Third Quarterly Report 2016 Other financing –related ash received Sub-total of cash inflow from financing 10,169,301,398.00 18,949,451,051.00 activities Cash to repay debts 11,862,353,840.00 20,833,488,393.00 Cash paid as dividend, profit, or 3,352,287,872.00 3,565,490,032.00 interests Incl: Dividend and profit paid by 920,168,209.00 1,211,762,971.00 subsidiaries to minor shareholders Other cash paid for financing activities 50,400,000.00 Sub-total of cash outflow due to 15,214,641,712.00 24,449,378,425.00 financing activities Net cash flow generated by financing -5,045,340,314.00 -5,499,927,374.00 IV. Influence of exchange rate alternation on cash and cash equivalents V.Net increase of cash and cash 1,207,094,513.00 601,463,344.00 equivalents Add: balance of cash and cash 5,227,406,725.00 4,528,277,314.00 equivalents at the beginning of term VI ..Balance of cash and cash 6,434,501,238.00 5,129,740,658.00 equivalents at the end of term 8. Cash Flow Statement of the Parent Between the Beginning of the Year and End of the Report Period In RMB Items Amount in this period Amount in last period I.Cash flows from operating activities Cash received from sales of goods or 1,602,241,681.00 2,018,894,760.00 rending of services Tax returned 132,753.00 Other cash received from business 21,065,583.00 47,154,728.00 operation Sub-total of cash inflow 1,623,307,264.00 2,066,182,241.00 Cash paid for purchasing of 816,458,488.00 832,357,541.00 merchandise and services Cash paid to staffs or paid for staffs 228,836,275.00 228,812,019.00 Taxes paid 157,580,734.00 236,082,041.00 Other cash paid for business activities 32,094,089.00 41,122,395.00 26 The Third Quarterly Report 2016 Sub-total of cash outflow from business 1,234,969,586.00 1,338,373,996.00 activities Cash flow generated by business 388,337,678.00 727,808,245.00 operation, net II.Cash flow generated by investing Cash received from investment 300,000,000.00 1,137,029,489.00 retrieving Cash received as investment gains 2,351,701,691.00 2,466,207,496.00 Net cash retrieved from disposal of fixed assets, intangible assets, and other 4,045.00 long-term assets Net cash received from disposal of subsidiaries or other operational units Other investment-related cash received Sub-total of cash inflow due to 2,651,701,691.00 3,603,241,030.00 investment activities Cash paid for construction of fixed assets, intangible assets 71,825,283.00 84,688,373.00 and other long-term assets Cash paid as investment 795,583,889.00 1,988,904,000.00 Net cash received from subsidiaries and other operational units Other cash paid for investment activities Sub-total of cash outflow due to 867,409,172.00 2,073,592,373.00 investment activities Net cash flow generated by investment 1,784,292,519.00 1,529,648,657.00 III.Cash flow generated by financing Cash received as investment Cash received as loans 2,197,650,000.00 2,550,000,000.00 Cash received from bond placing Other financing –related ash received Sub-total of cash inflow from 2,197,650,000.00 2,550,000,000.00 financing activities Cash to repay debts 2,700,000,000.00 3,649,999,300.00 Cash paid as dividend, profit, or 1,381,502,255.00 1,176,044,625.00 interests 27 The Third Quarterly Report 2016 Other cash paid for financing activities Sub-total of cash outflow due to 4,081,502,255.00 4,826,043,925.00 financing activities Net cash flow generated by financing -1,883,852,255.00 -2,276,043,925.00 IV. Influence of exchange rate alternation on cash and cash equivalents V.Net increase of cash and cash 288,777,942.00 -18,587,023.00 equivalents Add: balance of cash and cash 682,950,639.00 408,233,799.00 equivalents at the beginning of term VI ..Balance of cash and cash 971,728,581.00 389,646,776.00 equivalents at the end of term II. Auditor‘s report If the 3rd quarterly report been audited [] Yes [V] No The 3rd quarterly report has not been audited. The Board of Directors of Guangdong Electric Power Development Co., Ltd. Chairman of the Board: Huang Zhenhai October 29, 2016 28