Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD. The Semi-annual Report 2017 August 2017 1 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 I. Important Notice, Table of Contents and Definitions The Board of Directors , Supervisory Committee ,Directors, Supervisors and Senior Executives of the Company hereby guarantees that there are no misstatement, misleading representation or important omissions in this report and shall assume joint and several liability for the authenticity, accuracy and completeness of the contents hereof. Mr.Huang Zhenhai, The Company leader, Mr. Li Xiaoqing, Chief financial officer and the Mr.Meng Fei, the person in charge of the accounting department (the person in charge of the accounting )hereby confirm the authenticity and completeness of the financial report enclosed in this semi-annual report. Directors other than the following ones have attended the Board meeting to review the interim report. Name of absent director Position of absent director Reason Name of proxy Li Yanxu Director Due to busniess Gao Shiqiang Xu Ping Director Due to busniess Yang Xinli Zhang Xueqiu Director Due to busniess Liu Tao This semi-annual report involves the forecasting description such as the future plans, and does not constitute the actual commitments of the company to the investors. The investors should pay attention to the investment risks. The Company is mainly engaged in thermal power generation. The business of thermal power generation is greatly affected by factors including electric power demand and fuel price. Refer to Section I of Chapter IV of this semi-annual report- General. The Company Will not distribute cash dividend or bonus shares, neither capitalizing of common reserves for the report period. 2 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Table of Contents 2017 Semi- Annual Report I.Important Notice and Definitions II. Corporate Profile and Key Financial Results III. Business Profile IV. Performance Discussion and Analysis V. Important Events VI. Change of share capital and shareholding of Principal Shareholders VII. Situation of the Preferred Shares VIII.Information about Directors, Supervisors and Senior Executives IX. Corporate Bonds . X.Financial Report XI. Documents available for inspection 3 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Definition Refers Terms to be defined Definition to Refers Yudean Group Guangdong Yudean Group Co., Ltd. to Refers Zhanjiang Company Zhanjiang Electric Power Co., Ltd. to Refers Yuejiang Company Guangdong Shaoguan Yuejiang Power Generation Co., Ltd. to Refers Zhenneng Company Maoming Zhenneng Thermal Power Co., Ltd. to Refers Jinghai Company Guangdong Yudean Jinghai Power Co., Ltd. to Refers Zhanjiang Wind Power Company Guangdong Yudean Zhanjiang Wind Power Co., Ltd. to Refers Zhongyue Compamy Zhanjiang Zhongyue Energy Co., Ltd. to Refers Bohe Company Guangdong Yudean Bohe Coal & Electricity Co., Ltd to Refers Guangqian Company Shenzhen Guangqian Electric Power Co., Ltd. to Refers Huihou Natural Gas Company Guangdong Huizhou Natural Gas Power Co., Ltd. to Refers Red Bay Company Guangdong Red Bay Power Co., Ltd. to Refers Pinghai Power Plant Guangdong Hluizhou Pinghai Power Co., Ltd. to Refers Humen Power Company Guangdong Yudean Humen Power Co., Ltd. to Anxin Electric Inspection & Installation Refers Guangdong Yudean Anxin Electric Inspection & Installation Co., Ltd Company to Refers Guohua Taishan Guangdong Guohua Yudean Taishan Power Generation Co., Ltd. to Refers Yudean Industry Fuel Company Guangdong Power Industry Fuel Co., Ltd. to Refers Huadu Natural Gas Company Guangdong Huadu Natural GasT Thermal Power Co., Ltd. to 4 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Refers Dapu Company Guangdong Dapu Power Generation Co., Ltd. to Refers Wind Power Company Guangdong Wind Power Co., Ltd. to Refers Lincang Company Lincang Yuntou Yudean Hydroelectricity Development Co., Ltd. to Refers Qujie Wind Power Company Guangzhou Yudean Qujie Wind Power Generation Co., Ltd. to Refers Electric Power Sales Company Guangdong Yudean Electric Power Sales Co., Ltd. to Refers Weixin Yuntou Weixin Yuntou Yudean Zhaxi Energy Co., Ltd. to Refers Binglang Jiang Company Yunnan Baoshan Binlangjiang Hydroelectricity Development Co., Ltd. to Refers Yongan Natural Gas Company Guangdong Yudean Yongan Natural Gas Thermal Power Co., Ltd. to 5 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 II. Corporate Profile and Key Financial Results 1.Company information Stock abbreviation Yue Dian Li A, Yue Dian Li B Stock code: 000539、200539 Stock exchange for listing Shenzhen Stock Exchange Name in Chinese 广东电力发展股份有限公司 Abbreviation of Registered Company Name in Chinese(If 粤电力 any) English name (If any) GUANGDONG ELECTRIC POWER DEVELOPMENT CO.,LTD English abbreviation (If any) GED Legal Representative Huang Zhenhai Ⅱ.Contact person and contact manner Board secretary Securities affairs Representative Name Liu Wei Qin Xiao 36/F, South Tower, Yudean Plaza, No.2 Tianhe 36/F, South Tower, Yudean Plaza, No.2 Tianhe Contact address Road East, Guangzhou,Guangdong Province Road East, Guangzhou,Guangdong Province Tel (020)87570276 (020)87570251 Fax (020)85138084 (020)85138084 E-mail liuw@ged.com.cn qinxiao@ged.com.cn III. Other conditions 1. Way of Contact: Whether the company registered address, office address, post code, company website and email address have been changed within the report period. √ Applicable □Not applicable 36-36/F, South Tower, Yudean Plaza, No.2 Tianhe Road East, The company registered address Guangzhou,Guangdong Province Postal code of registered address 510630 36-36/F, South Tower, Yudean Plaza, No.2 Tianhe Road East, The company office address Guangzhou,Guangdong Province Postal code of business address 510630 Website http://www.ged.com.cn Company E-mail Address ged@ged.com.cn 6 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Appointed website inquiry date disclosed in the March 1,2017 temporary announcement (if any) Appointed website inquiry index disclosed in the http://www.cninfo.com.cn temporary announcement (if any) 2. Information disclosure and designated locations Whether information disclosure and designated location have been changed within the report period. □ Applicable √Inapplicable The information disclosure newspaper name appointed by the company, website appointed by the Chinese Securities Regulatory Commission to publish the half-year report, and the designated location as specified in the half-year report have not been changed within the report period. Please refer to the 2016 Annual Report. IV.Summary of Accounting data and Financial index May the Company make retroactive adjustment or restatement of the accounting data of the previous years □ Yes √ No Reporting period Same period of last year YoY+/-(%) Operating income(RMB) 12,385,486,577.00 10,234,989,566.00 21.01% Net profit attributable to the shareholders 128,735,725.00 738,374,784.00 -82.56% of the listed company(RMB) Net profit after deducting of non-recurring gain/loss attributable to the shareholders 156,802,731.00 743,501,966.00 -78.91% of listed company(RMB) Cash flow generated by business 1,578,925,284.00 4,696,500,182.00 -66.38% operation, net(RMB) Basic earning per share(RMB/Share) 0.0245 0.14 -82.50% Diluted gains per 0.0245 0.14 -82.50% share(RMB/Share)(RMB/Share) Weighted average ROE(%) 0.55% 3.09% -2.54% As at the end of the As at the end of last year YoY+/-(%) reporting period Total assets(RMB) 70,230,573,061.00 70,677,003,760.00 -0.63% Net assets attrilutable to shareholder of 23,104,526,322.00 23,378,847,225.00 -1.17% listed company(RMB) V.The differences between domestic and international accounting standards 7 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 1.Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed in the financial reports of differences in net income and net assets. √ Applicable □Not applicable In RMB Net profit attributable to the shareholders of the Net Assets attributable to the shareholders of listed company the listed company Amount in the Amount in the previous End of the reporting Beginning of the reporting period period period reporting period According to CAS 128,735,725.00 738,374,784.00 23,104,526,322.00 23,378,847,225.00 Items and amount adjusted according to IAS The difference arising from recognition of goodwill after 64,623,000.00 64,623,000.00 merger of enterprises under the same control Difference arising from recognition of land use value -315,000.00 -315,000.00 18,545,000.00 18,860,000.00 after enterprise merger Influence on minority interests 27,060.00 27,060.00 4,674,919.00 4,701,979.00 Accouding to IAS 128,447,786.00 738,086,844.00 23,127,746,242.00 23,467,032,204.00 2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese accounting standards. □ Applicable √Not applicable The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules or Chinese GAAP(Generally Accepted Accounting Principles) in the period. 3.Note to the Difference in the Accounting Data based on the Accounting Standards of CAS and IAS. √ Applicable □ Not applicable (a) The difference arising from recognition of goodwill after merger of enterprises under the same control and recognition of land value after enterprise merger. As required by new Chinese accounting standards, the goodwill formed by the merger of enterprises under the same control shall not be recognized and capital surplus shall be adjusted. Under IFRS, the golldwill formed by the merger of enterprises under the same control shall be recognized and equal to the difference between merger cost and share of fair value of recognizable net assets of the purchased party obtained in merger. Meanwhile, all assets of the purchased party obtained in merger shall be accounted for according to their fair value while such assets shall be accounted for according to their book value according to original Chinese accounting standards for business enterprises. Therefore, this difference will continue to exist. (b) Influence on minority interests 8 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Housing reform loss occurred to the Company and some holding subsidiaries. Therefore, there’s some influence on minority interests. VI.Items and amount of deducted non-current gains and losses √ Applicable □ Not applicable In RMB Items Amount Notes Non-current asset disposal gain/loss(including the write-off part for 612,592.00 which assets impairment provision is made) Govemment subsidy recognized in current gain and loss(excluding those closely related to the Company’s business and granted under 2,257,231.00 the state’s policies) Guangqian company received the Decisions on Handling of the Tax Affairs (SGSJC[2017] No.0013) issued by the Inspection Department of Shenzhen Effect on current gains/losses when a one-off adjustment is make -28,088,810.00 Municipal Office, SAT on June 26, 2017, tocurent gains/losses according to requirements of taxation. which requires Guangqian company to pay VAT and overdue fees. Such decisions are under negotiation among several parties at present. Other non-business income and expenditures other than the above -3,175,695.00 Less: Amount of influence of income tax 980,615.00 Influenced amount of minor shareholders’ equity (after tax) -1,308,291.00 Total -28,067,006.00 -- For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on information disclosure for Compaines Offering their Securities to the Public-Non-recurring Gains and Losses and its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as recurring gains and losses, it is necessary to explain the reason. □ Applicable√ Not applicable None of Non-recurring gain /loss items recorgnized as recurring gain /loss/items as defined by the information disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period. 9 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 III. Business Profile Ⅰ.Main Business the Company is Engaged in During the Report Period Whether the company needs to comply with the disclosure requirements of the particular industry No We are mainly occupied in investment, construction and management of electric power projects. We have been upholding “electricity-oriented, pluralistic development”, with power as the mainstay and diversified structure of power source. With the exception of development, construction and operation of large-scale coal-burning power-generating plants, we also set our feet on clean energy projects like LNG power generation, wind power generation and hydroelectric generation, which are reliably transmitted to innumerable users through power-grid companies. As of June 30,2017, the controllable installed capacity is 20 million KW, where the controllable installed capacity of coal-burning power generation, LNG generation and renewable energy generation like wind power and hydropower is 17.35 million KW, 2.34 million KW and 310000 KW respectively. Income source is primarily contributed by power production and sales, and main business income is derived from Guangdong Province. The company electricity sales price is subject to the benchmark price verified by the price authority per relevant policies based on National Development and Reform Commission (NDRC) and the electricity transaction price through the market trade implementation per Guangdong Electricity Market Trade Basic Rules and supporting files. In the report period, the average electricity sale price in the company consolidated statement is 444.39 yuan/MWH (tax-inclusive, similarly hereinafter) and decreases by 18.77 yuan/MWH on YoY basis including 24.48 yuan/ Mwh decrease due to the market electricity discount; The electricity sold is 32.246 billion KWH, 6.775 billion KWH YoY increase;The gross revenue is RMB12385.4866 million , increased byRMB 2150.4970 million on YoY , increased by 21.01%. Coal-burning power generation is our focus. As fuel costs hold a great proportion in operating costs, fluctuations in coal price mean a lot to the business performance. In the reporting period, the power fuel cost is 7963.7236 million Yuan, accounting for 72% of main business,3611.023 million Yuan YoY increase, increased by 82.96%. The power supply standard coal unit price (kerosene oil-gas) is 804.34 yuan/t increased by 44.33% in amount of 247.03 yuan/t on YoY basis, increased by 44.33%. In the report period, the company business performance decreases constantly due to the constant increase of the coal price and the increasingly-intensified electricity market competition and realizes 128.7357 million for the net profits attributable to the listed company shareholders, which decreases by 82.56% on year-on-year basis. Ⅱ.Major Changes in Main Assets 1.Major Changes in Main Assets Main assets Major changes Equity assets No major changes 10 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Fixed assets No major changes Intangible assets No major changes Construction in process No major changes 2. Main Conditions of Overseas Assets □ Applicable √ Not applicable Ⅲ.Analysis On core Competitiveness Whether the company needs to comply with the disclosure requirements of the particular industry No 1. Regional power-generating company with installed capacity expanded in a stage-based and leap-frog way The power-generating assets are mainly distributed in Guangdong. Major assets reorganization realized since 2012 has given great impetus to power-generating installed capacity. The controllable installed capacity has been expanded to 20 million KW of year-end 2016 from 8.08 million KW of year-end 2011, power generation to 59.923 billion KWH in 2016 from 35.305 billion KWH in 2011. 2. Yudean Group has oriented our company as a sole listed platform for domestic power-generating assets integration We are the shareholder of Yudean Group, one of the biggest power-generating groups in south China, which takes advantage of its source, assets scale, to give sustaining support to our company’s advancement and expansion. It has oriented us as a sole listed platform for domestic power-generating assets integration. We are endowed with a priority offered by it in power source development, asset acquisition. It has undertaken that in five years of the last major asset reorganization, it will inject its asset complying with listed conditions through acquisition, restructuring and other ways. Based on this, our installed capacity is going to embrace another leap-frog growth. 3. Yudean Group has oriented our company as a sole listed platform for domestic power-generating assets integration We are the shareholder of Yudean Group, one of the biggest power-generating groups in south China, which takes advantage of its source, assets scale, to give sustaining support to our company’s advancement and expansion. It has oriented us as a sole listed platform for domestic power-generating assets integration. We are endowed with a priority offered by it in power source development, asset acquisition. It has undertaken that in five years of the last major asset reorganization, it will inject its asset complying with listed conditions through acquisition, restructuring and other ways. Based on this, our installed capacity is going to embrace another leap-frog growth. 4. Stepwise optimization of industrial structure and power source structure The company takes the power generation as the core business accompanied with optimized development of the coal-fired power, stable development of gas electricity and energetic development of the wind power and water power, etc., optimizes the power source structure constantly and improves the market competition. which are gradually optimized accompanied by acquisition of and progress in clean energy projects. 11 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 5. Experienced management, sophisticated production technology Administrators and technical experts are veterans in operation and management of power plants, and key staff have years of practical experience in the power sector. We have invested enormous efforts to the standard of management, intensifying management and paying high priority to launch energy-conserving and consumption-reducing programs. Finally, coal consumption on thermal power units is declining year by year in return for these efforts. 6. Hold fast to the opportunity of “electric price reform”, exploit new realms of business In July, 2015, we established a wholly-funded electric marketing company, aiming at competing with electricity marketing, sharing dividend from “”electric price reform”, The electricity sales company has already accumulated plenty of clients based on the power generation enterprises. The company will continue promoting the electricity sales business vigorously, adopt positive measures subject to relevant polices of the national power system reformation for expanding the power distribution and sales business and comprehensive energy services and cultivating the new profit increase points. IV. Performance Discussion and Analysis Ⅰ.General In the report period, the total electricity consumption of the society in Guangdong is 268.16 billion kWh and increases by 4.6% on year-on-year basis with slightly higher increase rate. As West electricity quantity supply increases by 8.97 billion kWh compared with that in the plan, the provincial nuclear power quantity and pneumoelectric quantity increase by 12.47% and 3.51% on year-on-year basis respectively, the provincial hydroelectric power quantity decreases by 36.27% on year-on-year basis, and the average utilization time for the company controlled coal-fired units is 1959 hours and increases by 403 hours on year-on-year basis. In the report period, the company net profits attributable to the listed company shareholders decrease sharply on year-on-year basis due to the influence of the rising coal price and electricity market trade “discount”. Until June 2017, the total standard assets in the company consolidated statement is 70.231 billion yuan and decreases by 0.63% compared with that in the beginning of the year; the interests attributable to the listed company shareholders is 23.105 billion yuan and decreases by 1.17% compared with that in the beginning of the year. The standard business revenue realized in the company consolidated statement is 12.385 billion yuan and increases by 21.01% on year-on-year basis; the net profits attributable to the listed company shareholders is 129 million yuan and decreases by 82.56% on year-on-year basis; the revenue per share is 0.0245 yuan (that for the same period of the previous year is 0.1406 yuan). The total standard debt in the company consolidated statement is 41.323 billion yuan with the asset-liability ratio of 58.84%. In the report period, the company faces directly the adverse environment of the excess power capacity, “market electricity” scale expansion and rising coal price, etc. and strives to change in the economic development new normality positively. It strives to battle for the electricity quantity centering on each core index and key work determined at the beginning of the year. The standard on-grid electricity quantity in the company consolidated statement increases by 26.6% on year-on-year; it builds the early warning mechanism on the completion conditions of key indexes and implements the same per level, strives to increase benefits by all means and endeavors to realize profits in the first half year under the premise of losses occurrence in the first quarter, among which, the net profits of the wind power business realizes increase constantly and increases by 148.87% on 12 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 year-on-year basis. The electricity sale subsidiaries of the company always keep the market competition advantages, the long-term agreed and monthly concentrated bidding electricity quantity for previous years accounts for 12.6% of the same type trade market scale under the case where the first-half-year long-term agreed electricity quantity realizes 11.107 billion kWh and the electricity quantity participating in the monthly concentrated bidding is 1.074 billion kWh and the company continues to maintain the leading role in the market. The company carries forward the supply-side structure reform firmly, continues developing the clean energy plate subject to the 13th Five-year Development Planning Report approved by the Board of Directors through deliberation. And additional 2 controllable wind power projects totaling 80,000 kW are approved during the report period and 2 controllable wind power projects totaling 100,000 kW are included into the local wind power development and construction spare scheme in 2017. At the same time, the company implements carefully the national requirements on the coal-fired units ultra-low emission and energy transformation and completes the ultra-low emission transformation work of 8 fired-coal units totaling 4.27 million kW in the first half year. 2.Main business analysis Refer to relevant contents of “1.Summarization” in “Discussion and Analysis of Management”. Changes in the financial data In RMB YOY change This report period Same period last year Cause change (%) Operating income 12,385,486,577.00 10,234,989,566.00 21.01% The power fuel cost increases sharply on year-on-year basis due to the coal price rising in Operating cost 11,126,689,991.00 7,767,910,229.00 43.24% the first half year mainly and the business cost increases therefore. To grasp the power market transformation opportunity, the company strengthens the input Sale expenses 2,788,458.00 736,468.00 278.63% degree into the power market marketing business resulting in the sharp increase of the sales cost on the year-on-year basis. Administrative 285,963,326.00 348,730,393.00 -18.00% expenses Financial 637,643,570.00 701,972,431.00 -9.16% expenses The income tax decreases significantly due to the Income tax 148,691,823.00 415,482,070.00 -64.21% sharp decrease of the current year profitability on expenses year-on-year basis. The R&D input increases on the year-on-year R & D Investment 4,001,008.13 3,070,961.84 30.29% basis due to the addition of the R&D projects in the current year. 13 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 The cash for purchasing goods and receiving the Cash flow labor payment increases sharply on year-on-year generated by 1,578,925,284.00 4,696,500,182.00 -66.38% basis due to the coal price rising in the first half business year and results in the net cash flow decrease of operation, net the operating activities. Net cash flow generated by -1,328,116,995.00 -1,373,180,461.00 -3.28% investment The cash paid by the distributable profits in the current year decreases sharply on year-on-year basis due to the decrease influence of profits in Net cash flow the previous year; the cash received from loans in generated by -538,938,738.00 -2,442,565,613.00 -77.94% the current year increases to some extent on financing year-on-year basis due to the supplementary operating capital and results in the large change of the net cash flow from the financing activities. The net increase amount of the cash and cash Net increasing of equivalent decreases sharply on year-on-year cash and cash -288,130,449.00 880,754,108.00 -132.71% basis due to the decline influence of the net cash equivalents flow from operating activities mainly. Major changes to the profit structure or sources of the Company in the reporting period □ Applicable √Not applicable Nil Breakdown of main business In RMB Increase/decrease Increase/decrease Increase/decrease of principal of gross profit of reverse in the Gross profit business cost over rate over the Operating revenue operating costs same period of rate(%) the same period same period of the previous of previous year the previous year year(%) (%) (%) Industry Electric power , Steam sales and 12,301,242,987.00 11,116,293,804.00 9.63% 20.19% 43.11% -60.0414.47% labor income Products Electric power , Steam sales and 12,301,242,987.00 11,116,293,804.00 9.63% 20.19% 43.11% -14.47% labor income Area 14 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Guangdong 12,289,495,923.00 11,109,494,245.00 9.60% 20.95% 43.39% -14.15% Yunnan 11,747,064.00 6,799,559.00 42.12% 30.39% 1.67% 16.35% III.Non-core business analysis □ Applicable √Not applicable IV.Analysis of assets and liabilities 1.Significant changes in asset composition In RMB End of Reporting period End of same period of last year Change in As a Reason for As a percentage percentage( Amount Amount percentage of significant change of total assets(%) %) total assets(%) Monetary fund 4,896,743,201.00 6.97% 6,108,160,833.00 8.48% -1.51% Accounts 2,827,797,598.00 4.03% 2,599,665,735.00 3.61% 0.42% receivable Inventories 1,662,109,165.00 2.37% 1,459,056,607.00 2.03% 0.34% Real estate 8,614,438.00 0.01% 9,250,037.00 0.01% 0.00% Investment Long-term equity 5,686,638,558.00 8.10% 5,908,278,126.00 8.20% -0.10% investment Fixed assets 40,224,030,838.00 57.27% 44,317,670,244.00 61.52% -4.25% Construction in 7,137,424,507.00 10.16% 5,257,560,494.00 7.30% 2.86% process Short-term loans 9,565,000,000.00 13.62% 6,611,440,000.00 9.18% 4.44% Long-term loans 19,321,368,430.00 27.51% 21,150,686,546.00 29.36% -1.85% 2.Asset and Liabilities Measured by Fair Value √ Applicable □Not applicable In RMB Gain/loss on Purchase Sold Cumulative fair Impairment fair value d amount amount in Amount at year value change provisions in Amount at year Item change in the in the the recorded into the reporting beginning reporting reporting reporting end equity period period period period Financial assets 15 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 1.Financial assets measured by fair value and whose change is recorded in 0.00 0.00 current gains and losses(excluding derivative financial assets) 2.Derivative 0.00 0.00 financial assets 3.Financial assets 419,736,308.00 22,564,867.00 186,972,559.00 442,301,175.00 available for sale Subtotal of 419,736,308.00 22,564,867.00 186,972,559.00 442,301,175.00 financialassets Investment real 0.00 0.00 estate Projective biological 0.00 0.00 asset Other 0.00 0.00 Total 419,736,308.00 22,564,867.00 186,972,559.00 442,301,175.00 Financial Liability 0.00 0.00 Did great change take place in measurement of the principal assets in the reporting period ? □ Yes √ No 3. Restricted asset rights as of the end of this Reporting Period Not applicable 16 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 V.Investment situation 1. General √ Applicable □ Not applicable Investment of same period of last year Investment of the period(RMB) Scale of change (RMB) 262,000,000.00 409,500,000.00 -36.02% 2.Condition of Acquiring Significant Share Right Investment during the Report Period √Applicable □ Not applicable In RMB Wheth Capita Invest er to Main Invest Share Progress up to Antici Gain or Less Date of Name of the Investment l ment Produc Involv Busin ment Proportion Partner Balance Sheet pated or the Current Disclosure Disclosure Index Company Invested Amount Sourc Horiz t Type e in ess Way % Date Incom Investment (Note 5) e on Lawsu e it Name of The total construction Announcement :Announce Ther progress for the Capita ment onExternal Investment Guangdong Yudean mal Electri wharf project l Ownf Long-t October ( 2012-45 ) , Bohe Coal-fired power 115,000,000.00 100.00% No c maritime work is -- -5,554,851.00 No increas unds erm 31,2012 Published in Power Co., Ltd ,logist power completed about e ics 72% and the power China Securities Daily, plant project is not Securities Times and approved http//.www.cninfo.com.c n Guangdong Yudean Prope Newly 147,000,000.00 49.00% Ownf Guangdong Long-t Insura In preparation -- -- No December Name of 17 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Property rty establi unds Yudean Group erm nce 12,2015 Announcement :Announce Insurance Co., Insura shed (shareholding Ltd. nce ratio:51%) ment on relatedtransaction ( 2015-52 ) , Published in China Securities Daily, Securities Times and http//.www.cninfo.com.c n Total -- -- 262,000,000.00 -- -- -- -- -- -- -- -5,554,851.00 -- -- -- 18 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 3.Situation of the Significant Non-equity Investment Undergoing in the Report Period □ Applicable √ Not applicable 4.Investment of Financial Asset (1)Securities investment √ Applicable □Not applicable In RMB Mode of Book value Purchase Sale Book value Stock accountin balance at the Changes in Cumulative fair amount Gain/loss of the Security Security Initial amount in balance at the Accounting Source of Abbreviati g beginning of fair value of value changes in in the reporting category code investment cost the this end of the items the shares on: measure the reporting the this period equity this period period reporting period ment period period Domestic Fair value Financial assets and Shenzhen Own-Fun 000027 15,890,628.00 measure 86,562,000.00 -1,764,000.00 68,907,372.00 0.00 0.00 1,890,000.00 84,798,000.00 available for foreign Energy ds ment sales stocks Domestic Fair value Financial assets and Own-Fun 600642 Shenergy 235,837,988.00 measure 325,974,308.00 23,878,867.00 114,015,187.00 0.00 0.00 0.00 349,853,175.00 available for foreign ds ment sales stocks Domestic Fair value Financial assets and Own-Fun 831039 NEEQ 3,600,000.00 measure 7,200,000.00 450,000.00 4,050,000.00 0.00 0.00 234,000.00 7,650,000.00 available for foreign ds ment sales stocks Total 255,328,616.00 -- 419,736,308.00 22,564,867.00 186,972,559.00 0.00 0.00 2,124,000.00 442,301,175.00 -- -- Disclosure date for the notice of approval by the Board (If any) 19 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Disclosure date for the notice of approval by shareholders’ Meeting (If any) (2)Investment in Derivatives □ Applicable √ Not applicable The Company had no investment in derivatives in the reporting period. 20 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 VI. Sales of major assets and equity 1. Sales of major assets □ Applicable √ Not applicable The Company had no sales of major assets in the reporting period. 2.Sales of major equity □ Applicable √ Not applicable 21 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Ⅶ.Analysis of the Main Share Holding Companies and Share Participating Companies √ Applicable □ Not applicable Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company In RMB Main Registered Company name Type Industry Total assets Net assets Turnover Operating profit Net Profit business capital Power generation and Subsidiar Electric Zhangjiang Electric Power Co., Ltd. power station 2,875,440,000.00 4,296,991,487.00 3,978,088,766.00 788,546,128.00 75,036,138.00 54,502,661.00 y Power construction Power generation and Guangdong Yuejia Electric Power Subsidiar Electric power station 1,080,000,000.00 483,403,239.00 478,058,229.00 1,933,729.00 -46,912,517.00 -46,912,517.00 Co., Ltd. y Power construction Power generation and Guangdong Shaoguan Yuejiang Subsidiar Electric power station 1,400,000,000.00 6,727,651,527.00 795,017,138.00 1,144,815,444.00 -207,003,812.00 -207,661,147.00 Power Generation Co., Ltd. y Power construction Power generation and Maoming Zhenneng Thermal power Subsidiar Electric power station 1,019,535,500.00 3,026,240,699.00 1,014,224,843.00 770,107,438.00 -74,820,730.00 -56,100,547.00 Co., Ltd. y Power construction Power generation and Subsidiar Electric Zhanjiang Zhongyue Enerty Co., Ltd. power station 1,454,300,000.00 5,118,845,372.00 1,230,009,046.00 939,029,047.00 -39,879,066.00 -29,982,353.00 y Power construction Power generation and Shenzhen Guangqian Electric Power Subsidiar Electric power station 1,030,292,500.00 2,211,543,016.00 1,314,987,896.00 732,370,062.00 91,491,851.00 33,186,229.00 Co., Ltd. y Power construction Guangdong Red Bay Power Subsidiar Electric Power generation and 2,749,750,000.00 7,212,363,525.00 3,170,644,837.00 1,859,528,654.00 109,635,425.00 82,409,392.00 Generation Co., Ltd. y Power power station 22 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 construction Power generation and Guangdong Huizhou Pinghai Power Subsidiar Electric power station 1,370,000,000.00 6,200,787,590.00 1,898,759,547.00 1,648,628,423.00 344,195,241.00 248,858,396.00 Generation Co., Ltd. y Power construction Power generation and Guangdong Huizhou Natural gas Subsidiar Electric power station 1,159,370,000.00 2,907,661,274.00 1,456,542,085.00 674,243,898.00 74,093,823.00 55,574,470.00 Power Generation Co., Ltd. y Power construction Coal Sharing Investment and Assets Shanxi Yudean Enerty Co., Ltd. Investmen 1,000,000,000.00 2,962,511,661.00 2,738,949,603.00 558,089.00 262,966,124.00 262,966,125.00 Company Management t Guangdong Yudean Finance Co., Sharing Finance Finance service 2,000,000,000.00 18,155,012,059.00 2,632,844,958.00 288,014,924.00 228,745,795.00 184,657,686.00 Ltd. Company Guangdong Electric Power Industrial Sharing Fuel trade Fuel trade 630,000,000.00 3,188,812,400.00 948,526,603.00 9,762,707,487.00 86,948,991.00 70,938,555.00 Fuel Co., Ltd. Company Power generation and Guangdong Guohua Yudean Power Sharing Power power station 4,669,500,000.00 12,315,041,251.00 7,634,800,153.00 3,240,744,080.00 425,362,397.00 315,111,648.00 Generation Co., Ltd. Company construction Subsidiaries obtained or disposed in the reporting period □ Applicable √ Not applicable Notes In the report period, the profits of the coal-fired power plants of the company decrease to a large extent on year-on-year basis due to influence of the coal price rising and electricity price decline. Partial subsidiaries have operating losses such as Yuejiang company, Zhanjiang Zhongyue, Zhenneng company and Dapu power plant. Among joint-stock companies, Shanxi energy profitability increases relatively sharply on year-on-year basis due to the influence of the fuel price rising. 23 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 VIII.Structured vehicle controlled by the Company □ Applicable √ Not applicable IX. Prediction of business performance for January -September 2017 Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the warning of its material change compared with the corresponding period of the last year and explanation of reason. □ Applicable √ Not applicable X.Risks facing the Company and countermeasures The company will still face severe operating environment in the second half year of 2017. Firstly, the coal supply will become intense and the price rising will not change through predication; secondly, the fiercer competition of the power market trade may cause the increase of the power price decrease degree; thirdly, the successive release of the provincial newly-commissioning nuclear power and pneumoelectric capacity will squeeze the coal power share; fourthly, the constantly-tense capital market and rising interest rate will cause the capital cost increase; fifthly, the upgrading and reconstruction of coal-fired units may produce the influence on the electricity quantity to some extent. The company will continue implementing the early warning mechanism for the completion conditions of key indexes and endeavor to realize the target of the whole year; promote the clean energy development and the on-schedule commissioning of projects under construction. 1. It will grasp the favorable opportunity of the base electricity quantity adjustment in the 3rd quarter in Guangdong and endeavor to increase the annual electricity quantity target; participate in bidding in the scientific ways and battle for the “market power” share positively; arrange the ultra-low emission transformation reasonably and reduce the influence thereof on the electricity quantity; research and judge scientifically before participating in the power generation rights transfer trade. 2. It will continue implementing the early mechanism on the completion conditions of key indexes; keep an eye on the capital conditions of the company and subsidiaries, conduct the overall planning, start properly the registration work of ultra-short financing and medium-period notes, expand the financing channels and control the comprehensive financing costs; continue conducting the benchmarking on the subordinate power plants’ units and domestic advanced units and endeavor to increase the units reliability and operation economy through “strengthening weaknesses”. 3. It will continue paying attention to policies and market dynamics of the energy industry and relevant industries of upstream and downstream, search for excellent project investment opportunities positively; promote the approval work of Bohe power plant and Zhaoqing natural gas cogeneration project; assist the dominant shareholders in promoting relevant work of the commitment performance. 4. It will promote each project under construction per schedule, guarantee the whole commissioning of Dayakou project in September; promote the ultra-low emission and energy conservation transformation work and plan to complete the ultra-low emission transformation of 14 coal-fired units totaling 7.06 million kW in the second year. 24 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 V. Important Events I. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period 1.Annual General Meeting Investor Meeting Type participation Convened date Disclosure date Index to disclosed information ratio Name of Announcement :Announcement of Annual Resolution of 2016 shareholders’ 2016 Shareholders’ general meeting ,Announcement Shareholders’ 72.90% May 17,2017 May 18,2017 General No.:2017-17. general meeting Meeting Published in China Securities Daily, Securities Times and http//.www.cni nfo.com.cn. 2. Preferred stockholders restored voting rights to request to convene Provisional Shareholders’ Meeting. □Applicable√Not applicable II. Proposal for profit distribution and converting capital Reserve into share actual for the reporting period □ Applicable √Not applicable For the reporting period, the Company plans not to distribute cash dividends or bonus shares or convert capital reserve into share capital. III. The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of the reporting period made by the company, shareholder, actual controller, acquirer, director, supervisor, senior management personnel and other related parities. □ Applicable √Not applicable There are no commitments that the company, shareholders, actual controller, offeror, directors, supervisors, senior management or other related parties have fulfilled during the reporting period and have not yet fulfilled by the end of reporting period. IV. Particulars about engagement and disengagement of CPAs firm Whether the semi-annual financial report had been audited? □ Yes √ Not The semi-annual report was not audited. 25 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 V.Explanations given by board of directors and supervisory board regarding “ Modified auditor’s” Issued by CPAs firm for the reporting period □ Applicable √ Not applicable VI. Explanations given by Board of Directors regarding “ Modified auditor’s Report” Issued for last year □ Applicable √ Not applicable VII. Bankruptcy and restructuring □ Applicable √ Not applicable No such cases in the reporting period. VIII. Legal matters Signifieant lawsuits or arbitrations □ Applicable √ Not applicable No such cases in the reporting period. Other legal matters □ Applicable √ Not applicable IX. Punishments and rectifications □ Applicable √ Not applicable No such cases in the reporting period. X. Credit conditions of the Company as well as its Controlling shareholder and actual Controller □ Applicable √ Not applicable XI.Equity incentive plans, employee stock ownership plans or other incentive measures for employees □ Applicable √ Not applicable No such cases in the reporting period. XII.Material related transactions 1. Related transactions in connection with daily operation □ Applicable √ Not applicable No such cases in the reporting period. 26 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 2. Related-party transactions arising from asset acquisition or sold □Applicable √ Not applicable No such cases in the reporting period. 3. Related-party transitions with joint investments □Applicable √ Not applicable No such cases in the reporting period. 4. Related-party transitions with joint investments □Applicable √ Not applicable No such cases in the reporting period. 5. Credits and liabilities with related parties √ Applicable □Not applicable Whether has non-operational contact of related liability and debts or not □ Yes √ No No such cases in the reporting period. 6. Other significant related-party transactions √ Applicable □Not applicable (1)In 2017, daily related transactions were carried out after examination and approval by 2016 annual shareholders' general meeting. Refer to (5) Related transactions of XII. Relationship between related parties and the transactions between them of the Financial Report of this report for details. (2) The Proposal on the Financial Services such as Making the Application of the Total Loan Limit of RMB 17 Billion and Handling the Deposit Settlement to the Related Party- Guangdong Yudean Finance Co., Ltd by the Company and Some of its Subsidiaries was approved in the company’s 2016 annual general shareholder meeting for implementation. (3) Guangdong Shaoguan Yuejiang Power Generation Co., Ltd., as the holding subsidiary of the company, intends to purchase partial fixed assets of Guangdong Shaoguan No.9 Power Unit Joint Venture Co., Ltd. through conclusion of an agreement in the proposed price of 24.8628 million yuan (the final purchase price shall be subject to the asset evaluation price approved in the file of the State Capital Management Department), which was approved by the 1st session for communication of the 8th Board of Directors of the company in 2017 through deliberation. Website for temporary disclosure of the connected transaction Announcement Date of disclosure Website for disclosure Daily related transaction announcement April 26,2017 http//www.cninfo.com.cn. 27 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Announcement on the Company’s Related Transaction of Guangdong April 26,2017 http//www.cninfo.com.cn. Yudean Finance Co., Ltd. Announcement on the related party Transactions of Guangdong Shaoguan Yuejiang Power Generation Co., Ltd. Purchasing Part Fixed Assets of June 1,2017 http//www.cninfo.com.cn. Guangdong Shaoguan No.9 Power Unit Joint Venture Co., Ltd. XIII. Particulars about the non-operating occupation of funds by the Controlling shareholder and other related parties of the Company □Applicable √ Not applicable The company was not involved in the non-operating occupation of funds by the controlling shareholder and other related parties during the reporting period. XIV. Significant contracts and execution 1.Entrustments, contracting and leasing (1) Trusteeship □Applicable √ Not applicable No trusteeship, contract or leasing for the Company in reporting period. (2) Contract □ Applicable √ Not applicable No any contract for the Company in the reporting period. (3) Lease □Applicable √ Not applicable No any lease for the Company in the reporting period.. 2.Guarantees √Applicable □ Not applicable (1)Guarantees In RMB’0000 External Guarantee (Exclude controlled subsidiaries) Relevant Date of Actual Complete Guarantee Name of the Amount of Guarantee Guarantee disclosure happening mount of implementa for Company Guarantee type term date/No. of (Date of guarantee tion associated 28 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 the signing or not parties guaranteed agreement) (Yes or no) amount Yunnan Baoshan Binlangjiang Guaranteei Hydroelectricity May 24,2007 4,350 December 19,2007 2,610 ng of joint 15 years No No Development Co., liabilities. Ltd. Yunnan Baoshan Binlangjiang Guaranteei December Hydroelectricity 4,350 November 30,2007 1,073 ng of joint 15 years No No 19,2007 Development Co., liabilities. Ltd. Yunnan Baoshan Binlangjiang Guaranteei November Hydroelectricity 7,250 November 14,2008 870 ng of joint 12 years No No 12,2008 Development Co., liabilities. Ltd. Yunnan Baoshan Binlangjiang Guaranteei Hydroelectricity May 27,2009 9,367 June 22,2009 6,467 ng of joint 18 years No No Development Co., liabilities. Ltd. Yunnan Baoshan Binlangjiang Guaranteei Hydroelectricity May 27,2009 7,250 May 27,2009 3,625 ng of joint 15 years No No Development Co., liabilities. Ltd. Total actually amount Total amount of approved external of external guarantee 0 -406 guarantee in the report period(A1) in the report period(A2) Total actually amount Total amount of approved external of external guarantee guarantee at the end of the report 190,835 14,645 at the end of the report period(A3) period(A4) Guarantee of the company for its subsidiaries Complete Guarante Related Actually Name of the Amount of Date of happening(date Guarantee Guarante implemen e for announcement guarantee company guaranteed guarantee of signing agreement) type e term tation or related date and no. amount not party(yes 29 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 or no) Zhanjiang Wind Guaranteei Power Generation April 29,2009 18,571.7 October 9,2010 8,575.53 ng of joint 18 years No No Co., Ltd. liabilities. Guangdong Guaranteei Shaoguan Yuejiang November 9,000 January 28,2014 5,670 ng of joint 7 years No No Power Generation 16,2013 liabilities. Co., Ltd. Guangdong Guaranteei Shaoguan Yuejiang November 8,100 January 29,2014 4,770 ng of joint 7 years No No Power Generation 16,2013 liabilities. Co., Ltd Total of actual Total of guarantee for subsidiaries guarantee for 0 -7,543.61 approved in the period(B1) subsidiaries in the period (B2) Total of actual Total of guarantee for subsidiaries guarantee for 141,536 19,015.53 approved at period-end(B3) subsidiaries at period-end(B4) Guarantee of the subsidiaries for the controlling subsidiaries Guarante Relevant e Date of Complete disclosure for Name of the Amount happening Actual implemen date/No. of Guarantee Guarantee associate Company of (Date o mount of tation the type term d guaranteed guarantee signing guarantee or guaranteed parties agreement) not amount (Yes or no) The Company’s total guarantee(i.e.total of the first three main items) Total guarantee quota approved Total amount of guarantee in the reportingperiod 0 actually incurred in the -7,949.61 (A1+B1+C1) reporting period(A2+B2+C2) Total guarantee quota already Total balance of the actual approved at theendof the 332,371 guarantee at the end of the 33,660.53 reporting period(A3+B3+C3) reporting period(A4+B4+C4) The proportion of the total amount of actually guarantee in the 1.46% netassetsof the Company (that is A4+B4+C4)% Including: 30 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 The debts guarantee amount provided for the Guaranteed parties whose assets-liability ratio exceed 25,085 70% directly or indirectly(E) Total guarantee Amount of the abovementioned guarantees 25,085 (D+E+F) Description of the guarantee with complex method (2) Illegal external guarantee □ Applicable √ Not applicable No Illegal external guarantee in the report period. 3. Other significant contract □ Applicable √ Not applicable No other significant contracts for the Company in reporting period. XV.Social responsibilities 1.Overview of the annual targeted poverty alleviation (1)Half-year poverty relieving summary In the report period, the company continues implementing Guangdong scheme of “three-year crucial goals for the target poverty alleviation” and organizes the manpower, materials and financial resources into the poverty alleviation. The six subsidiaries carry out the targeted poverty alleviation and oriented assistance work subject to the formulated poverty alleviation work plan, which include Yuejiang company, Red Bay company, Jinghai company, Zhenneng company, Zhanjiang company and Dapu company, etc. (2)Information of the listed company’s annual work in targeted poverty alleviation Measurement Index Quantity / Status unit I. General situation —— —— Thereinto: 1.Capital RMB 54.99 2. Cash supplies RMB 3.56 3. Ecological protection to poverty alleviation Person 203 (3)Subsequent targeted poverty alleviation program The company and holding subsidiaries will continue implementing relevant provincial, municipal and town provisions on the targeted poverty alleviation and find out the accurate ways for the targeted poverty alleviation based on the local conditions. Firstly, insist the party and style construction, promote the ideological building of 31 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 the assistance object village “two committees” members and intensify the results of “two studies and one action” learning activity. Secondly, insist study and improve capacity, insist the thorough learning on the spirit of Xi Jinping series important speeches, the spirit of relevant targeted poverty alleviation papers, the village business knowledge and the way to communicate with the public and improve further the work capacity for people. Thirdly, intensify the key points and promote the implementation, each poverty alleviation work team will continue focusing on the targeted poverty alleviation, grasp the poverty alleviation central work and coordinate overall and implement relevant work. For the poor households poverty alleviation projects and village group projects listed in the filing and issuing cards, obtain positively support from relevant authority subject to the formulated target tasks, assist the assistance object villages and poor households in implementing the poverty alleviation projects and guarantee the overall completion of the poverty alleviation target tasks in the practical style. 32 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 2.Major environmental protection The Listed Company and its subsidiary whether belongs to the key sewage units released from environmental protection department Yes Emission Excessiv Main pollutant Emissi port e Company or Emission Implemented pollutant emission Total Verified total and specific on port distributio Emission concentration emission subsidiary name way standards emission emission pollutant name number n conditio condition n Concentrat Emission Standard of Air Pollutants ed emission within the for Thermal Power Plants Smoke 2 7.07mg/Nm3 77.86 ton Not approved No through factory (GB13223-2011) special emission chimney limit Concentrat Emission Standard of Air Pollutants Shajiao A power ed emission within the for Thermal Power Plants SO2 2 24.27mg/Nm3 267.12 ton Not approved No plant through factory (GB13223-2011) special emission chimney limit Concentrat Emission Standard of Air Pollutants ed emission within the for Thermal Power Plants NOX 2 37.25mg/Nm3 409.92 ton Not approved No through factory (GB13223-2011) special emission chimney limit Concentrat Emission Standard of Air Pollutants ed emission within the for Thermal Power Plants Smoke 2 3.55mg/Nm3 24.5 ton 593 ton No through factory (GB13223-2011) special emission Dapu Power Plant chimney limit Concentrat Emission Standard of Air Pollutants within the 3 SO2 ed emission 2 14.25mg/Nm for Thermal Power Plants 99.3 ton 1447 ton No factory through (GB13223-2011) special emission 33 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 chimney limit Concentrat Emission Standard of Air Pollutants ed emission within the for Thermal Power Plants NOX 2 29.35mg/Nm3 205.2 ton 1502 ton No through factory (GB13223-2011) special emission chimney limit Concentrat Emission Standard of Air Pollutants ed emission within the for Thermal Power Plants Smoke 1 10.3mg/Nm3 114.38 ton 600 ton No through factory (GB13223-2011) special emission chimney limit Concentrat Emission Standard of Air Pollutants Zhanjiang Tiaoshun ed emission within the for Thermal Power Plants SO2 1 84.12mg/Nm3 930.7 ton 2046 ton No Power plant through factory (GB13223-2011) special emission chimney limit Concentrat Emission Standard of Air Pollutants ed emission within the for Thermal Power Plants NOX 1 58.1mg/Nm3 638.98 ton 1587 ton No through factory (GB13223-2011) special emission chimney limit Concentrat Emission Standard of Air Pollutants 3 3 ed emission within the #10:9.14mg/Nm 、#11:8.14mg/Nm 、for Thermal Power Plants Smoke 2 68.16 ton 358.89ton No through factory #1:3.06mg/Nm3、#2:4.51mg/Nm3 (GB13223-2011) special emission chimney limit #1、#2、#10、#11 unit Concentrat Emission Standard of Air Pollutants Shaoguan Power 3 3 ed emission within the #10:103mg/Nm 、#11:90mg/Nm 、 for Thermal Power Plants Plant SO2 2 508.02 ton 1151.78 ton No through factory #1:15mg/Nm3、#2:11mg/Nm3 (GB13223-2011) special emission chimney limit Concentrat 3 3 Emission Standard of Air Pollutants within the #10:123mg/Nm 、#11:102mg/Nm 、 NOX ed emission 2 for Thermal Power Plants 713.29 ton 1404.54 ton No factory #1:29mg/Nm3、#2:40mg/Nm3 through (GB13223-2011) special emission 34 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 chimney limit Concentrat Emission Standard of Air Pollutants 3 ed emission within the #1、#2、#3:10 mg/Nm for Thermal Power Plants Smoke 2 39 ton 594 ton No through factory #4:30 mg/Nm3 (GB13223-2011) special emission chimney limit Concentrat Emission Standard of Air Pollutants 3 Zhanjiang Power ed emission within the #1、#2、#3:35 mg/Nm for Thermal Power Plants SO2 2 405 ton 2310 ton No through 3 (GB13223-2011) special emission Plant factory #4:200 mg/Nm chimney limit Concentrat Emission Standard of Air Pollutants 3 ed emission within the #1、#2、#3:50 mg/Nm for Thermal Power Plants NOX 2 438 ton 2640 ton No through 3 (GB13223-2011) special emission factory #4:200 mg/Nm chimney limit Concentrat Emission Standard of Air Pollutants ed emission within the for Thermal Power Plants Smoke 2 5.25mg/Nm3 112.23 ton Not approved No through factory (GB13223-2011) special emission chimney limit Concentrat Emission Standard of Air Pollutants ed emission within the for Thermal Power Plants Huilai Power plant SO2 2 42.57mg/Nm3 910.32 ton Not approved No through factory (GB13223-2011) special emission chimney limit Concentrat Emission Standard of Air Pollutants ed emission within the for Thermal Power Plants NOX 2 47.56mg/Nm3 1017 ton Not approved No through factory (GB13223-2011) special emission chimney limit Concentrat Emission Standard of Air Pollutants within the 3 Shanwei Power plant Smoke ed emission 2 7.56mg/Nm for Thermal Power Plants 124.95 ton Not approved No factory through (GB13223-2011) special emission 35 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 chimney limit Concentrat Emission Standard of Air Pollutants ed emission within the for Thermal Power Plants SO2 2 32.73mg/Nm3 539.31 ton Not approved No through factory (GB13223-2011) special emission chimney limit Concentrat Emission Standard of Air Pollutants ed emission within the for Thermal Power Plants NOX 2 36.47mg/Nm3 655.27 ton Not approved No through factory (GB13223-2011) special emission chimney limit Concentrat Emission Standard of Air Pollutants ed emission within the for Thermal Power Plants Smoke 2 6.35mg/Nm3 50.56 ton 370 ton No through factory (GB13223-2011) special emission chimney limit Concentrat Emission Standard of Air Pollutants #5、#6、#7 Unit ed emission within the for Thermal Power Plants Maoming thermal SO2 2 38.86mg/Nm3 229.44 ton 3205 ton No through factory (GB13223-2011) special emission power Plant chimney limit Concentrat Emission Standard of Air Pollutants ed emission within the for Thermal Power Plants NOX 2 46.92mg/Nm3 395.17 ton 4000ton No through factory (GB13223-2011) special emission chimney limit Concentrat Emission Standard of Air Pollutants ed emission within the for Thermal Power Plants Smoke 2 6.82mg/Nm3 90.19 ton Not approved No through factory (GB13223-2011) special emission Pinghai Power plant chimney limit Concentrat Emission Standard of Air Pollutants within the 3 SO2 ed emission 2 20.10mg/Nm for Thermal Power Plants 312.35 ton Not approved No factory through (GB13223-2011) special emission 36 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 chimney limit Concentrat Emission Standard of Air Pollutants ed emission within the for Thermal Power Plants NOX 2 50.00mg/Nm3 672.53 ton Not approved No through factory (GB13223-2011) special emission chimney limit Concentrat Emission Standard of Air Pollutants Qianwan LNG power ed emission within the for Thermal Power Plants NOX 3 33.69mg/Nm3 219.96 ton Not approved No plant through factory (GB13223-2011) special emission chimney limit Concentrat Emission Standard of Air Pollutants Huizhou LNG power ed emission within the for Thermal Power Plants NOX 3 32.85 mg/Nm3 260 ton Not approved No plant through factory (GB13223-2011) special emission chimney limit Prevention and control of pollution facilities construction and operation Within the report period, the company responds positively to requirements of the newest environmental protection policies, strengthens the operation adjustment of the desulfurization and denitrification system and equipment maintenance management, intensifies the transformation of the energy-saving technologies and dust-cleaning equipment, improves the equipment operation efficiency, decrease the smoke and dust discharging concentration and guarantee compliance of each pollutant emission with the national and local environmental protection requirements. In accordance with the national environmental protection plan, each power plant of the company implements positively requirements of Coal-fired Power Energy Saving and Emission Reduction Upgrading and Transform Action Plan (2014-2020) and National Energy Administration Comprehensive Division Notice about Decomposition and Implementation of Coal-fired Power Energy Saving and Emission Reduction Upgrading and Transform Target Tasks, etc. and promotes the ultra-low emission transformation project. In the report period, the company completes the ultra-low emission transformation work of 8 coal-fired units totaling 4.27 million kW and the pollutant emission concentration (including the emitted smoke and gas) declines sharply on the original basis of the environment-protection emission standards, which reflects the company determination of performing social responsibilities and the environment protection duties and emissions. XVI.Other material events □Applicable √ Not applicable 37 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 No such cases in the reporting period. XVII. Material events of subsidiaries □ Applicable √ Not applicable 38 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 VI. Change of share capital and shareholding of Principal Shareholders I.Changes in share capital 1. Changes in share capital In shares Before the change Increase/decrease(+,-) After the Change Amount Proportio Capitaliz n Share ation of Bonus Proportio allotme common Other Subtotal Quantity shares n nt reserve fund I. Share with conditional 1,897,966,823 36.15% 1,897,966,823 36.15% subscription 2. State-owned legal 1,893,342,621 36.06% 1,893,342,621 36.06% person shares 3.Other domestic shares 4,624,202 0.09% 4,624,202 0.09% Of which:Domestic 4,620,666 0.09% 4,620,666 0.09% legal person shares Domestic natural person 3,536 0.00% 3,536 0.00% shares II. Shares with unconditional 3,352,317,163 63.85% 3,352,317,163 63.85% subscription 1.Common shares in 2,553,909,163 48.64% 2,553,909,163 48.64% RMB 2.Foreign shares in 798,408,000 15.21% 798,408,000 15.21% domestic market III. Total of capital 5,250,283,986 100.00% 5,250,283,986 100.00% shares Reasons for share changed: □ Applicable √ Not applicable Approval of Change of Shares □ Applicable √ Not applicable Ownership transfer of share changes □ Applicable √ Not applicable Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common shareholders of Company in latest year and period □ Applicable √ Not applicable 39 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Other information necessary to disclose for the company or need to disclosed under requirement from security regulators □ Applicable √Not applicable 2. Change of shares with limited sales condition □ Applicable √Not applicable Ⅱ.Issuing and listing □ Applicable √Not applicable III. Shareholders and shareholding In Shares Total number of preferred Total number of common shareholders that had restored shareholders at the end of the 109,198 the 0 reporting period voting right at the end of the reporting period (if any) (note 8) Particulars about shares held above 5% by shareholders or top ten shareholders Proport Number of share ion of Number of Changes in Amount of Amount of pledged/frozen Nature of Shareholders shares shares held at reporting restricted shares un-restricted shareholder State of Amou held period -end period held shares held share nt (%) Guangdong Yudean State-owned 67.39% 3,538,005,285 1,893,342,621 1,644,662,664 Group Co., Ltd. legal person China Securities State-owned 2.78% 145,748,980 145,748,980 Finance Co., Ltd. legal person Guangdong Guangfa State-owned Electric Power 2.22% 116,693,602 116,693,602 legal person Investment Co., Ltd. Guangdong Electric State-owned Power Development 1.80% 94,367,341 94,367,341 legal person Corporation Domestic Harbin Hali Industry Non-State 0.79% 41,387,870 38,403,770 41,387,870 Co., Ltd. owned legal person Domestic Li Zhuo 0.42% 21,951,385 588,800 21,951,385 Natural 40 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 person National Social State-owned Security Fund 103 0.38% 19,994,982 19,994,982 19,994,982 legal person portfolio BBH A/C VANGUARD Overseas EMERGING Legal 0.33% 17,484,844 17,484,844 MARKETS STOCK person INDEX FUND CHINA INT'L Overseas CAPITAL CORP Legal 0.29% 15,322,336 15,322,336 HONG KONG person SECURITIES LTD Domestic Harbin Daoli District Non-State 0.25% 12,921,300 -2,520,008 12,921,300 Charity Foundation owned legal person The fourth largest shareholder Guangdong Electric Power Development Corporation is the Explanation on associated wholly-owned subsidiaries of the largest shareholder Yudean Group. These two companies relationship or concerted action of have relationships; whether the other shareholders have relationships or unanimous acting was the above shareholders unknown. Shareholding of top 10 shareholders of unrestricted shares Quantity of unrestricted shares held Share type Name of the shareholder at the end of the reporting period Share type Quantity RMB Common Guangdong Yudean Group Co., Ltd. 1,644,662,664 1,644,662,664 shares RMB Common China Securities Finance Co., Ltd. 145,748,980 145,748,980 shares Guangdong Guangfa Electric Power Investment Co., RMB Common 116,693,602 116,693,602 Ltd. shares RMB Common Guangdong Electric Power Development Corporation 94,367,341 94,367,341 shares RMB Common Harbin Hali Industry Co., Ltd. 41,387,870 41,387,870 shares RMB Common Li Zhuo 21,951,385 21,951,385 shares RMB Common National Social Security Fund 103 portfolio 19,994,982 19,994,982 shares Foreign shares BBH A/C VANGUARD EMERGING MARKETS 17,484,844 17,484,844 placed in 41 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 STOCK INDEX FUND domestic exchange Foreign shares CHINA INT'L CAPITAL CORP HONG KONG placed in 15,322,336 15,322,336 SECURITIES LTD domestic exchange RMB Common Harbin Daoli District Charity Foundation 12,921,300 12,921,300 shares Explanation on associated relationship or consistent The fourth largest shareholder Guangdong Electric Power Development action among the top 10 shareholders of non-restricted Corporation is the wholly-owned subsidiaries of the largest shareholder negotiable shares and that between the top 10 Yudean Group. These two companies have relationships; whether the other shareholders of non-restricted negotiable shares and top shareholders have relationships or unanimous acting was unknown. 10 shareholders The Fifth largest shareholder Harbin Hali Industry Co., Ltd. holds 35,467,266 A shares of the Company through stock account with credit transaction and guarantee and holds 5,920,604 A shares through ordinary stock account, hold41,387,870 shares of the Company's stock totally. The sixth largest shareholder Li Zhuo. holds 21,911,765 A shares of the Explanation on shareholders participating in the margin Company through stock account with credit transaction and guarantee and trading business(if any )(See Notes 4) holds 39,620 A shares through ordinary stock account, hold21,951,385 shares of the Company's stock totally. The Tenth largest shareholder Harbin Daoli District Charity Foundation. holds 12,783,900 A shares of the Company through stock account with credit transaction and guarantee and holds 137,400 A shares through ordinary stock account, hold12,921,300 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. IV. Change of the controlling shareholder or the actual controller Change of the controlling shareholder in the reporting period □ Applicable √ Not Applicable There was no any change of the controlling shareholder of the Company in the reporting period. Change of the actual controller in the reporting period □ Applicable √ Not applicable There was no any change of the actual controller of the Company in the reporting period. 42 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 VII. Situation of the Preferred Shares □Applicable √Not applicable The Company had no preferred shares in the reporting period 43 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 VIII. Information about Directors, Supervisors and Senior Executives I. Change in shares held by directors, supervisors and senior executives □Applicable √Not applicable There was no change in shareholding of directors, supervisors and senior management staffs, for the specific information please refer to the 2016 Annual Report. II. Changes in directors, supervisors and senior management staffs √ Applicable □ Not applicable Name Title Type Date Reason Kong Huitian Director Resignation February 8,2017 Retired Hu Xiaolei Director Resignation February 8,2017 Job changes 44 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 IX. Corporate Bond Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and not yet due or due butnot folly cashed on the approval date of annual report Yes 1.Basic information of corporate bonds Bond short Bond balance Interest Bond name Bond code Issue day Due day Servicing way name ‘0000 rate Using simple interest rate on a yearly basis, 2012 Corporate bonds of regardless of compound Guangdong Electric 12 Yudean interest. Due payments March March 112162.SZ 120,000 4.95% once a year, maturing Power Development Bond 18,2013 17,2020 debt at a time. In the final Co., Ltd.. phase, interest is paid together with the principal redemption. Corporate bonds listed or trading Shenzhen Stock Exchange places During the reporting period, The company paid the bond interests of the current year on March 20, 2017 to all the bond interest payment situation of the holders who were registered in China Securities Depository and Clearing Co., Ltd. Shenzhen company bonds branch as of the afternoon of March 17, 2017 when the Shenzhen Stock Exchange closed. If the corporate bonds attached to special clauses to the issuer or the investors such as option The duration of the bonds is 7 years, with redemption option, option of raising coupon rate by the clause and exchangeable clause, issuer and the puttable right for the investors at the end of the fifth year. During the reporting please specify the period, the relevant clauses have not met the conditions for implementation. implementation status of the corresponding clauses. (When applicable) 2. Bond trustee and the credit rating agency information Bond trustee: CITIC 22/F, CITIC Securities Building , Song Name Securities Co., Office No.48. Liangmaqiao Road, Contact Yilan ,Ko Tel 010-60838888 Ltd. Chaoyang District , Beijing u Zhibo The credit rating agencies which follow and rate the corporate bond during the reporting period Office 8/F, Anji Building, No.760, Tibet South Road, Name CCXR address Huangpu District, Shanghai. 45 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 During the report period, the bond trustee, credit rating agency employed by the company that have changed, reasons for Not applicable the change, performing procedures, relevant influence on investors,etc(If applicable). 3. The usage of corporate bonds to raise money According to the relevant contents in the Prospectus of the Issuance of Bonds announced on March 14, 2013, the company planned to use RMB 820 million of the raised funds to repay the loans, thus to adjust the debt structure; the remaining RMB 380 million of the raised funds planned for supplementing the company’s liquidity, so The usage and performance of raised funds as to improve the company’s funds status. The net amount of the funds raised by the from Corporate bonds bonds had been remitted to the company’s designated bank account on March 20, 2013, of which the amount of RMB 820 million of the raised funds had been used for repaying the loans, so as to adjust the debt structure; the remaining RMB 380 million of the raised funds used for supplementing the company’s liquidity, so as to improve the company’s funds status. At the end of balance (RMB’0000) 0 Whether the usage of the raised money corresponding to the purposes of promise, Yes use plans, and other agreement 4.Corporate bond rating information On June 16, 2017, CCXR traced and analyzed the credit status of the company and the company’s bonds of “12-Yuedian Bonds”, maintained the credit rating of AAA for the main body of the company, with a stable outlook; maintained the credit rating of AAA for the corporate bonds.(The rating results were disclosed on the website: http://www.ccxr.com.cn/, with the title of Tracking and Rating Report for the 2012-Corpoprate Bonds of Guangdong Electric Power Development Co., Ltd(2017). 5.Corporate bond credit mechanism, the debt repayment plans and other security measures (1)The credit-raising mechanism: No guarantee of the company’s bonds. After the comprehensive assessment by CCXR, the credit rating of the main body of the company is AAA with a stable outlook, and the credit rating of the corporate bonds is AAA. (2)The repayment plan: The interest of the bonds commenced from the date of March 18, 2013, and the interest of the bonds shall be paid once each year within the duration of the bonds after the commencement date of the interest. The date of March 18 of each year in the period from 2014 to 2020 shall be the interest paying day for paying the recent full year’s bond interests (If it is not a working day, the payment day will be postponed to the first working day after the day). If the issuer performs the redemption option or the investors perform the puttable right, then the date of March 18 of each year in the period from 2014 to 2018 is the interest paying day for paying the recent full year’s interests of the bonds being redeemed or the bonds being sold back. The maturity date of the 46 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 bonds is March 18, 2020, and the company will repay the principal and pay the last full year’s interest when the bond is due. If the issuer performs the redemption option or the investors perform the puttable right, the maturity date of the bonds being redeemed or the bonds being sold back is March 18, 2018, and the corresponding principal and the last full year’s interest will be repaid. (3) Safeguard measures for the repayment: in order to fully and effectively safeguard the interests of the bondholders, the company had made a series of work plans for the full repayment of the bonds that can be implemented on time, including the designated department and personnel, arrangement of repaying the bonds, establishment of the management measures, doing good organization and coordination, strengthening the information disclosure and so on, strived to form a set of safeguard measures for ensuing the repayment of the bonds. 6.During the reporting period the bondholder meeting During the reporting period, the company did not hold bondholders meeting. 7.During the reporting period the bond trustee perform his duties The company’s bond trustee- CITIC Securities Co., Ltd safeguarded the legal rights of the bond holders with in accordance with the law and performed the obligations stipulated in the Prospectus of the Issuance of Bonds and other publicly disclosed documents, hence continuously followed up and acquainted the relevant information of the company during the entrusting period, issued and provided the regular report of the bond trustee, with in accordance with the company’s information being followed up and acquainted. During the reporting period, CITIC Securities Co., Ltd issued the Report of the 2012 Corporate Bonds Trustee for Guangdong Electric Power Development Co., Ltd(year of 2016) on May 26, 2017, and the report was disclosed on the cninf website on May 26, 2017 by the company. 8.During the reporting period, the company's major accounting data and financial indicators for last 2 years In RMB’0000 Items 2016 2015 At the same time rate of change Current ratio 63.78% 66.95% -3.17% Debt ratio 58.84% 58.49% 0.35% Quick ratio 44.12% 46.93% -2.81% Reporting period Same period of last year YoY+/-(%) EBITDA interest coverage ratio 1.7 4.87 -65.09% Loans repayment rate 100.00% 100.00% 0.00% Interest payment rate 100.00% 100.00% 0.00% The material reasons for the changed ratio of the accounting data or financial indicators exceeds 30% over the last year √ Applicable □Not applicable As the power marketization reform accelerates and the market competition becomes fiercer in the first half year of 2017, the company on-grid power price declines obviously and the coal price keeps rising constantly in the first 47 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 half year, which results in the sharp decline of the company power generation business profits and larger decline of EBITDA interest coverage times. 9. The company fails to repay the debt □ Applicable √ Not applicable No such cases in the reporting period. 10. Information about the repayment of interest and principal for other bonds or debt financing instruments On June 7, 2016, the company issued 700,000,000 yuan of ultra short-term financing bonds, with a term of 270 days. During the reporting period, the payment of the principal and interest was RMB 715,013,863. On August 11, 2016, the company issued 500,000,000 yuan of ultra short-term financing bonds, with a term of 270 days. During the reporting period, the payment of the principal and interest was RMB 509,471,068. 11.Information about the bank credit obtaining and use, as well as repayment of the bank loans during the reporting period In ther report period, the company signed an unconditional available bank amount limit of about RMB 51.331 billion, of which the used amount limit was RMB 32.135 billion, thus the remaining available bank amount limit was about RMB 19.196 billion. In this year, the company repaid bank loans of about RMB 6.449 billion, and the balance of bank loans was RMB 29.924 billion. 12. Information about fulfillment of the stipulations or commitments specified in the Prospectus of the issuance of the bonds during the reporting period In the report period, the company implements relevant provisions in the bonds collection manual strictly, pay the bond owners the interest thereof per the schedule agreed in the basic bond provisions and perform the information disclosure obligations related to the bonds per laws. No cases damaging the bond investors’ interests occur. 13. Major events occurred during the reporting period Nil 14. Whether the corporate bonds have a guarantor □ Yes √No IX. Financial Report I. Audit report Has this semi-annual report been audited? □ Yes √ No The semi-annual financial report has not been audited. II. Financial statements Currency unit for the statements in the notes to these financial statements:RMB 48 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 1. Consolidated balance sheet Prepared by:Guangdong Electric Power Development Co., Ltd. In RMB Items Year-end balance Year-beginning balance Current asset: Monetary fund 4,896,743,201.00 5,184,873,650.00 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 2,827,797,598.00 2,776,061,909.00 Prepayments 915,467,419.00 1,064,822,122.00 Insurance receivable Reinsurance receivable Provisions of Reinsurance contracts receivable Interest receivable 20,790,253.00 16,681,118.00 Dividend receivable Other account receivable 149,999,099.00 133,499,956.00 Repurchasing of financial assets Inventories 1,662,109,165.00 1,513,153,241.00 Assets held for sales Non-current asset due in 1 year 56,369,497.00 Other current asset 967,341,528.00 882,055,591.00 Total of current assets 11,496,617,760.00 11,571,147,587.00 Non-current assets: Loans and payment on other’s behalf disbursed Disposable financial asset 1,301,952,861.00 1,279,387,994.00 Expired investment in possess Long-term receivable 82,687,240.00 136,075,412.00 Long term share equity investment 5,686,638,558.00 5,432,637,750.00 49 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Property investment 8,614,438.00 8,932,237.00 Fixed assets 40,224,030,838.00 41,814,685,521.00 Construction in progress 7,137,424,507.00 6,343,293,763.00 Engineering material 1,477,958.00 1,496,854.00 Fixed asset disposal 7,266,329.00 4,304,229.00 Production physical assets Gas & petrol Intangible assets 1,687,520,556.00 1,707,490,221.00 R & D petrol Goodwill 27,486,780.00 27,486,780.00 Long-germ expenses to be amortized 29,904,482.00 34,611,712.00 Deffered income tax asset 342,952,179.00 303,929,269.00 Other non-current asset 2,195,998,575.00 2,011,524,431.00 Total of non-current assets 58,733,955,301.00 59,105,856,173.00 Total of assets 70,230,573,061.00 70,677,003,760.00 Current liabilities Short-term loans 9,565,000,000.00 5,758,860,000.00 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 731,452,959.00 1,330,480,837.00 Account payable 2,268,319,920.00 3,167,250,446.00 Advance payment 199,798.00 12,456,360.00 Selling of repurchased financial assets Fees and commissions receivable Employees’ wage payable 206,401,253.00 144,122,128.00 Tax payable 328,650,463.00 326,919,844.00 Interest payable 115,893,394.00 83,648,793.00 Dividend payable 9,703,930.00 9,703,930.00 Other account payable 3,305,088,687.00 3,292,556,995.00 Reinsurance fee payable 50 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Insurance contract provision Entrusted trading of securities Entrusted selling of securities Liabilities held for sales Non-current liability due in 1 year 1,406,746,076.00 1,433,644,523.00 Other current liability 86,746,979.00 1,723,070,000.00 Total of current liability 18,024,203,459.00 17,282,713,856.00 Non-current liabilities: Long-term loan 19,321,368,430.00 19,888,172,037.00 Bond payable 1,895,215,203.00 1,900,124,468.00 Including:preferred stock Sustainable debt Long-term payable 1,767,860,027.00 1,917,552,654.00 Long-term payable employees’s 128,355,760.00 122,832,249.00 remuneration Special payable 26,675,385.00 26,675,385.00 Expected liabilities Differed income 128,685,604.00 125,650,072.00 Differed income tax liability 24,821,712.00 37,718,277.00 Other non-current liabilities 6,000,000.00 39,000,000.00 Total non-current liabilities 23,298,982,121.00 24,057,725,142.00 Total of liability 41,323,185,580.00 41,340,438,998.00 Owners’ equity Share capital 5,250,283,986.00 5,250,283,986.00 Other equity instruments Including:preferred stock Sustainable debt Capital reserves 5,003,049,918.00 5,003,007,478.00 Less:Shares in stock Other comprehensive income 161,982,666.00 145,059,015.00 Special reserves Surplus reserves 7,590,363,724.00 6,845,001,818.00 Common risk provision Undistributed profit 5,098,846,028.00 6,135,494,928.00 51 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Total of owner’s equity belong to the 23,104,526,322.00 23,378,847,225.00 parent company Minority shareholders’ equity 5,802,861,159.00 5,957,717,537.00 Total of owners’ equity 28,907,387,481.00 29,336,564,762.00 Total of liabilities and owners’ equity 70,230,573,061.00 70,677,003,760.00 Legal representative :Huang Zhenhai Person-in-charge of the accounting work:Li Xiaoqing Person-in -charge of the accounting organ:Meng Fei 2. Balance sheet of Parent Company In RMB Items Year-end balance Year-beginning balance Current asset: Monetary fund 671,110,947.00 326,073,538.00 Financial assets measured at fair value with variations accounted into current income account Derivative financial assets Bill receivable Account receivable 208,906,179.00 212,343,198.00 Prepayments 56,744,200.00 79,990,745.00 Interest receivable 1,118,668.00 723,819.00 Dividend receivable Other account receivable 20,671,598.00 122,933,749.00 Inventories 150,353,336.00 149,462,926.00 Assets held for sales Non-current asset due in 1 year Other current asset 26,804,664.00 25,650,427.00 Total of current assets 1,135,709,592.00 917,178,402.00 Non-current assets: Disposable financial asset 1,301,952,861.00 1,279,387,994.00 Expired investment in possess Long-term receivable 351,460,000.00 335,000,000.00 52 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Long term share equity investment 23,583,992,126.00 22,896,735,913.00 Property investment 8,614,438.00 8,932,237.00 Fixed assets 991,913,819.00 1,049,906,014.00 Construction in progress 99,611,372.00 43,039,781.00 Engineering material Fixed asset disposal 731,441.00 Production physical assets Gas & petrol Intangible assets 90,259,019.00 92,152,556.00 R & D petrol Goodwill Long-germ expenses to be amortized Differed income tax asset 1,185,875.00 Other non-current asset 356,004,000.00 672,504,000.00 Total of non-current assets 26,785,724,951.00 26,377,658,495.00 Total of assets 27,921,434,543.00 27,294,836,897.00 Current liabilities Short-term loans 1,900,000,000.00 300,000,000.00 Financial liabilities measured at fair value with variations accounted into current income account Derivative financial liabilities Bill payable Account payable 144,748,058.00 517,973,144.00 Advance payment Employees’ wage payable 33,066,300.00 31,813,417.00 Tax payable 1,490,432.00 9,688,606.00 Interest payable 19,890,064.00 48,091,022.00 Dividend payable 9,703,930.00 9,703,930.00 Other account payable 95,524,227.00 93,522,121.00 Liabilities held for sales Non-current liability due in 1 year Other current liability 30,352,587.00 1,216,583,014.00 Total of current liability 2,234,775,598.00 2,227,375,254.00 Non-current liabilities: 53 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Long-term loan 1,500,000,000.00 1,500,000,000.00 Bond payable 1,197,459,048.00 1,196,982,619.00 Including:preferred stock Sustainable debt Long-term payable Employees’ wage payable 20,877,536.00 23,445,887.00 Special payable Expected liabilities Differed income 58,455,688.00 59,533,388.00 Differed income tax liability 12,508,093.00 Other non-current liabilities Total of Non-current liabilities 2,776,792,272.00 2,792,469,987.00 Total of liability 5,011,567,870.00 5,019,845,241.00 Owners’ equity Share capital 5,250,283,986.00 5,250,283,986.00 Other equity instrument Including:preferred stock Sustainable debt Capital reserves 5,605,794,603.00 5,605,752,163.00 Less:Shares in stock Other comprehensive income 161,982,666.00 145,059,015.00 Special reserves Surplus reserves 7,590,363,724.00 6,845,001,818.00 Undistributed profit 4,301,441,694.00 4,428,894,674.00 Total of owners’ equity 22,909,866,673.00 22,274,991,656.00 Total of liabilities and owners’ equity 27,921,434,543.00 27,294,836,897.00 3.Consolidated Income statement In RMB Item Report period Same period of the previous year I. Income from the key business 12,385,486,577.00 10,234,989,566.00 Incl:Business income 12,385,486,577.00 10,234,989,566.00 Interest income Insurance fee earned 54 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Fee and commission received II. Total business cost 12,161,604,003.00 8,895,457,564.00 Incl:Business cost 11,126,689,991.00 7,767,910,229.00 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 108,518,658.00 76,108,043.00 Sales expense 2,788,458.00 736,468.00 Administrative expense 285,963,326.00 348,730,393.00 Financial expenses 637,643,570.00 701,972,431.00 Asset impairment loss Add:Gains from change of fir value (“-”for loss) Investment gain(“-”for loss) 227,542,910.00 128,721,534.00 Incl: investment gains from affiliates 225,418,910.00 126,201,534.00 Gains from currency exchange (“-”for loss) Other income 7,350,208.00 III. Operational profit(“-”for loss) 458,775,692.00 1,468,253,536.00 Add :Non-operational income 3,203,012.00 10,609,711.00 Including:Income from disposal of 1,268,222.00 130,677.00 non-current assets Less:Non business expenses 33,574,072.00 14,167,800.00 Incl:Loss from disposal of non-current 655,630.00 170,836.00 assets IV.Total profit(“-”for loss) 428,404,632.00 1,464,695,447.00 Less:Income tax expenses 148,691,823.00 415,482,070.00 V. Net profit 279,712,809.00 1,049,213,377.00 Net profit attributable to the owners of 128,735,725.00 738,374,784.00 parent company Minority shareholders’ equity 150,977,084.00 310,838,593.00 55 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 VI. Other comprehensive income 16,923,651.00 -107,948,192.00 Net of profit of other comprehensive inco me attributable to owners of the parent co 16,923,651.00 -107,948,192.00 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 pla ns of changes in net debt or net assets 2.Other comprehensive income under the equity method investee can not be reclass ified into profit or loss. (II) Other comprehensive income that will be 16,923,651.00 -107,948,192.00 reclassified into profit or loss. 1.Other comprehensive income under the equity method investee can be reclassifie 970,838.00 d into profit or loss. 2.Gains and losses from changes in fair v 16,923,651.00 -108,919,030.00 alue available for sale financial assets 3.Held-to-maturity investments reclassifi ed to gains and losses of available for sal e financial assets 4.The effective portion of cash flow hedg es and losses 5.Translation differences in currency fina ncial statements 6.Other 7.Net of profit of other comprehensive in come attributable to Minority shareholders’ equity VII. Total comprehensive income 296,636,460.00 941,265,185.00 Total comprehensive income attributable 145,659,376.00 630,426,592.00 to the owner of the parent company Total comprehensive income 150,977,084.00 310,838,593.00 attributable minority shareholders VIII. Earnings per share 56 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 (I)Basic earnings per share 0.0245 0.14 (II)Diluted earnings per share 0.0245 0.14 The current business combination under common control, the net profits of the combined party before achieved ne t profit of RMB 0, last period the combined party realized RMB 0. Legal representative :Huang Zhenhai Person-in-charge of the accounting work:Li Xiaoqing Person-in -charge of the accounting organ:Meng Fei 4. Income statement of the Parent Company In RMB Items Report period Same period of the previous year I. Income from the key business 939,765,302.00 825,674,110.00 Incl:Business cost 887,126,339.00 630,368,054.00 Business tax and surcharge 4,342,801.00 7,994,515.00 Sales expense 4,589.00 9,300.00 Administrative expense 41,977,719.00 55,281,911.00 Financial expenses 98,104,367.00 112,026,865.00 Asset impairment loss Add:Gains from change of fir value (“-”for loss) Investment gain(“-”for loss) 1,110,477,171.00 1,853,145,315.00 Incl: investment gains from 221,764,316.00 123,853,097.00 affiliates Other income 1,576,903.00 II. Operational profit(“-”for loss) 1,020,263,561.00 1,873,138,780.00 Add :Non-operational income 280,853.00 1,795,373.00 Including:Income from disposal of non-current assets Less:Non business expenses 195,341.00 358,085.00 Incl:Loss from disposal of non-current assets III.Total profit(“-”for loss) 1,020,349,073.00 1,874,576,068.00 Less:Income tax expenses -17,582,572.00 18,348,341.00 IV. Net profit(“-”for net loss) 1,037,931,645.00 1,856,227,727.00 57 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 V.Net of profit of other comprehensive i 16,923,651.00 -107,948,192.00 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 16,923,651.00 -107,948,192.00 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 16,923,651.00 -108,919,030.00 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 1,054,855,296.00 1,748,279,535.00 VII. Earnings per share: (I)Basic earnings per share 0.1980 0.35 (II)Diluted earnings per share 0.1980 0.35 5. Consolidated Cash flow statement In RMB Items Amount in this period Amount in last period I.Cash flows from operating activities Cash received from sales of goods or 14,454,635,418.00 11,993,341,095.00 58 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 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 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 1,968,626.00 Other cash received from business 107,871,299.00 113,208,976.00 operation Sub-total of cash inflow 14,564,475,343.00 12,106,550,071.00 Cash paid for purchasing of 11,194,266,293.00 5,231,263,343.00 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 Cash paid to staffs or paid for staffs 701,259,423.00 784,293,113.00 Taxes paid 793,835,100.00 1,191,800,857.00 Other cash paid for business activities 296,189,243.00 202,692,576.00 Sub-total of cash outflow from business 12,985,550,059.00 7,410,049,889.00 activities Cash flow generated by business 1,578,925,284.00 4,696,500,182.00 59 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 operation, net II.Cash flow generated by investing Cash received from investment retrieving Cash received as investment gains 120,542,102.00 150,472,644.00 Net cash retrieved from disposal of fixed assets, intangible assets, and other 1,073,872.00 1,601,233.00 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 121,615,974.00 152,073,877.00 investment activities Cash paid for construction of fixed assets, intangible assets 1,292,607,275.00 1,525,254,338.00 and other long-term assets Cash paid as investment 157,125,694.00 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 1,449,732,969.00 1,525,254,338.00 investment activities Net cash flow generated by investment -1,328,116,995.00 -1,373,180,461.00 III.Cash flow generated by financing Cash received as investment 10,500,000.00 10,000,000.00 Incl: Cash received as investment from 10,500,000.00 10,000,000.00 minor shareholders Cash received as loans 7,502,176,648.00 5,598,296,599.00 Cash received from bond placing Other financing –related ash received 42,440.00 Sub-total of cash inflow from financing 7,512,719,088.00 5,608,296,599.00 activities Cash to repay debts 6,449,239,681.00 5,284,042,404.00 Cash paid as dividend, profit, or 1,596,924,345.00 2,766,819,808.00 interests 60 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Incl: Dividend and profit paid by 349,333,461.00 812,318,580.00 subsidiaries to minor shareholders Other cash paid for financing activities 5,493,800.00 Sub-total of cash outflow due to 8,051,657,826.00 8,050,862,212.00 financing activities Net cash flow generated by financing -538,938,738.00 -2,442,565,613.00 IV. Influence of exchange rate alternation on cash and cash equivalents V.Net increase of cash and cash -288,130,449.00 880,754,108.00 equivalents Add: balance of cash and cash 5,184,873,650.00 5,227,406,725.00 equivalents at the beginning of term VI ..Balance of cash and cash 4,896,743,201.00 6,108,160,833.00 equivalents at the end of term 6. Cash Flow Statement of the Parent Company In RMB Items Amount in this period Amount in last period I.Cash flows from operating activities Cash received from sales of goods or 1,114,632,756.00 861,819,588.00 rending of services Tax returned 271,389.00 Other cash received from business 10,413,502.00 13,015,892.00 operation Sub-total of cash inflow 1,125,317,647.00 874,835,480.00 Cash paid for purchasing of 1,190,011,447.00 443,237,990.00 merchandise and services Cash paid to staffs or paid for staffs 145,782,543.00 156,782,737.00 Taxes paid 13,903,632.00 87,603,634.00 Other cash paid for business activities 21,655,404.00 24,097,584.00 Sub-total of cash outflow from business 1,371,353,026.00 711,721,945.00 activities Cash flow generated by business -246,035,379.00 163,113,535.00 operation, net II.Cash flow generated by investing Cash received from investment 100,000,000.00 300,000,000.00 retrieving 61 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Cash received as investment gains 1,001,942,001.00 1,896,415,452.00 Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets Net cash received from disposal of subsidiaries or other operational units Other investment-related cash received Sub-total of cash inflow due to 1,101,942,001.00 2,196,415,452.00 investment activities Cash paid for construction of fixed assets, intangible assets 57,903,755.00 52,779,574.00 and other long-term assets Cash paid as investment 288,602,154.00 710,400,000.00 Net cash received from subsidiaries and other operational units Other cash paid for investment activities Sub-total of cash outflow due to 346,505,909.00 763,179,574.00 investment activities Net cash flow generated by investment 755,436,092.00 1,433,235,878.00 III.Cash flow generated by financing Cash received as investment Cash received as loans 1,901,037,089.00 1,399,212,500.00 Cash received from bond placing Other financing –related ash received 42,440.00 Sub-total of cash inflow from 1,901,079,529.00 1,399,212,500.00 financing activities Cash to repay debts 1,500,000,000.00 700,000,000.00 Cash paid as dividend, profit, or 565,442,833.00 1,327,389,242.00 interests Other cash paid for financing activities 2,185,740.00 Sub-total of cash outflow due to 2,065,442,833.00 2,029,574,982.00 financing activities Net cash flow generated by financing -164,363,304.00 -630,362,482.00 IV. Influence of exchange rate alternation on cash and cash equivalents V.Net increase of cash and cash 345,037,409.00 965,986,931.00 62 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 equivalents Add: balance of cash and cash 326,073,538.00 682,950,639.00 equivalents at the beginning of term VI ..Balance of cash and cash 671,110,947.00 1,648,937,570.00 equivalents at the end of term 63 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 7. Consolidated Statement on Change in Owners’ Equity Amount in this period In RMB Amount in this period Owner’s equity Attributable to the Parent Company Other Equity Speci instrusment Less: Comm Minor Items alize Total of owners’ Other Share on risk shareholders’ Share Capital preferr Capital reserves Comprehensive d Surplus reserves Attributable profit equity Sustain Othe s in provisi equity ed Income reser able r stock on stock ve debt I.Balance at the end of 5,250,283,986.00 5,003,007,478.00 145,059,015.00 6,845,001,818.00 6,135,494,928.00 5,957,717,537.00 29,336,564,762.00 last year Add: Change of accounting policy Correcting of previous errors Merger of entities under common control Other II.Balance at the beginning of current 5,250,283,986.00 5,003,007,478.00 145,059,015.00 6,845,001,818.00 6,135,494,928.00 5,957,717,537.00 29,336,564,762.00 year III.Changed in the 42,440.00 16,923,651.00 745,361,906.00 -1,036,648,900.00 -154,856,378.00 -429,177,281.00 current year 64 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 (1)Total 16,923,651.00 128,735,725.00 150,977,083.00 296,636,459.00 comprehensive income (II)Investment or decreasing of capital by 42,440.00 43,500,000.00 43,542,440.00 owners 1.Ordinary Shares inve 43,500,000.00 43,500,000.00 sted by hareholders 2.Holders of other equi ty instruments invested c apital 3.Amount of shares paid and accounted as owners’ equity 4.Other 42,440.00 42,440.00 (III)Profit allotment 745,361,906.00 -1,165,384,625.00 -349,333,461.00 -769,356,180.00 1.Providing of surplus 745,361,906.00 -745,361,906.00 reserves 2.Providing of common risk provisions 3.Allotment to the -420,022,719.00 -349,333,461.00 -769,356,180.00 owners (or shareholders) 4.Other (IV) Internal transferring of owners’ equity 1. Capitalizing of capital reserves (or to capital 65 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 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 term (VII)Other IV. Balance at the end of 5,250,283,986.00 5,003,049,918.00 161,982,666.00 7,590,363,724.00 5,098,846,028.00 5,802,861,159.00 28,907,387,481.00 this term 66 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Amount in last year In RMB Amount in last year Owner’s equity Attributable to the Parent Company Other Equity instrusment Less: Specia Comm Minor Items Total of owners’ Other Share lized on risk shareholders’ Share Capital preferr Capital reserves Comprehensive Surplus reserves Attributable profit equity Sustain s in reserv provisi equity ed Other Income able stock e on stock debt I.Balance at the end of 5,250,283,986.00 5,007,077,158.00 245,708,715.00 5,812,191,775.00 7,439,335,347.00 6,467,598,416.00 30,222,195,397.00 last year Add: Change of accounting policy Correcting of previous errors Merger of entities under common control Other II.Balance at the beginning of current 5,250,283,986.00 5,007,077,158.00 245,708,715.00 5,812,191,775.00 7,439,335,347.00 6,467,598,416.00 30,222,195,397.00 year III.Changed in the 669,456.00 -107,948,192.00 1,032,810,043.00 -1,502,000,575.00 -491,479,987.00 -1,067,949,255.00 current year (1)Total -107,948,192.00 738,374,784.00 310,838,593.00 941,265,185.00 67 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 comprehensive income (II)Investment or decreasing of capital by 669,456.00 10,000,000.00 10,669,456.00 owners 1.Ordinary Shares inve 10,000,000.00 10,000,000.00 sted by hareholders 2.Holders of other equi ty instruments invested c apital 3.Allotment to the owners (or shareholders) 4.Other 669,456.00 669,456.00 (IV) Internal transferring 1,032,810,043.00 -2,240,375,359.00 -812,318,580.00 -2,019,883,896.00 of owners’ equity 1. Capitalizing of capital reserves (or to capital 1,032,810,043.00 -1,032,810,043.00 shares) 2. Capitalizing of surplus reserves (or to capital shares) 3.Making up losses by -1,207,565,317.00 -812,318,580.00 -2,019,883,896.00 surplus reserves. 4. Other (VI )Special reserves 1. Provided this year 2.Used this term 68 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 (VII)Other IV. Balance at the end of this term (V) Special reserves 1. Provided this year 2.Used this term (VI)Other IV. Balance at the end of 5,250,283,986.00 5,007,746,614.00 137,760,523.00 6,845,001,818.00 5,937,334,772.00 5,976,118,429.00 29,154,246,142.00 this term 69 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 8.Statement of change in owner’s Equity of the Parent Company Amount in this period In RMB Amount in this period Other Equity instrusment Less: Other Items Surplus Common risk Total of owners’ Share Capital preferre Sustain Capital reserves Shares Comprehensive Attributable profit Other reserves provision equity d stock able in stock Income debt I.Balance at the end of 5,250,283,986.00 5,605,752,163.00 145,059,015.00 6,845,001,818.00 4,428,894,674.00 22,274,991,656.00 last year Add: Change of accounting policy Correcting of previous errors Other II.Balance at the beginning of current 5,250,283,986.00 5,605,752,163.00 145,059,015.00 6,845,001,818.00 4,428,894,674.00 22,274,991,656.00 year III.Changed in the 42,440.00 16,923,651.00 745,361,906.00 -127,452,980.00 634,875,017.00 current year (I)Total 16,923,651.00 1,037,931,645.00 1,054,855,296.00 comprehensive income (II) Investment or 42,440.00 42,440.00 70 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 decreasing of capital by owners 1 . Ordinary Shares inv ested by hareholders 2.Holders of other equ ity instruments invested capital 3.Amount of shares paid and accounted as owners’ equity 4.Other 42,440.00 42,440.00 (III)Profit allotment 745,361,906.00 -1,165,384,625.00 -420,022,719.00 1.Providing of surplus 745,361,906.00 -745,361,906.00 reserves 2.Allotment to the owners (or -420,022,719.00 -420,022,719.00 shareholders) 3.Other (IV)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 71 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 surplus reserves. 4. Other (V) Special reserves 1. Provided this year 2.Used this term (VI)Other IV. Balance at the end of 5,250,283,986.00 5,605,794,603.00 161,982,666.00 7,590,363,724.00 4,301,441,694.00 22,909,866,673.00 this term 72 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Amount in last year In RMB Amount in last year Other Equity instrusment Less: Other Items Surplus Common risk Total of owners’ Share Capital preferre Sustain Capital reserves Shares Comprehensive Attributable profit Other reserves provision equity d stock able in stock Income debt I.Balance at the end of 5,250,283,986.00 5,609,821,843.00 245,708,715.00 5,812,191,775.00 4,539,664,589.00 21,457,670,908.00 last year Add: Change of accounting policy Correcting of previous errors Other II.Balance at the beginning of current 5,250,283,986.00 5,609,821,843.00 245,708,715.00 5,812,191,775.00 4,539,664,589.00 21,457,670,908.00 year III.Changed in the 669,456.00 -107,948,192.00 1,032,810,043.00 -384,147,632.00 541,383,675.00 current year (I)Total -107,948,192.00 1,856,227,727.00 1,748,279,535.00 comprehensive income (II) Investment or decreasing of capital by 669,456.00 669,456.00 owners 73 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 1 . Ordinary Shares inv ested by hareholders 2 . Holders of other equ ity instruments invested capital 3.Amount of shares paid and accounted as owners’ equity 4.Other 669,456.00 669,456.00 (III)Profit allotment 1,032,810,043.00 -2,240,375,359.00 -1,207,565,316.00 1.Providing of surplus 1,032,810,043.00 -1,032,810,043.00 reserves 2.Allotment to the -1,207,565,317.00 -1,207,565,317.00 owners (or shareholders) 3.Other (IV)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 74 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 (V) Special reserves 1. Provided this year 2.Used this term (VI)Other IV. Balance at the end of 5,250,283,986.00 5,610,491,299.00 137,760,523.00 6,845,001,818.00 4,155,516,957.00 21,999,054,583.00 this term 75 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 III.Basic Information of the Company Guangdong Electric Power Development Co., Ltd. (the “Company”) is a limited liability company jointly established by Guangdong Electric Power Holding Company, China Construction Bank Guangdong Province Trust Investment Company, Guangdong Power Development Co., Ltd, Guangdong International Trust, China Guangfa Bank(now named as Guangdong Province Guangkong Group Co., Ltd.). The address of the Company’s registered office and head office is F33~F36 South Tower Building of Yudean Square on 2nd Tianhe East Road, Guangzhou City, Guangdong Province, the People’s Republic of China. The Company’s parent company is Guangdong Province Yudean Group Co., Ltd. (“Yudean”) and its ultimate holding company is the State-owned Assets Supervision and Administration Commission of the People’s Government of Guangdong Province. The Company’s issuing RMB ordinary shares (“A-share”) and domestic listed foreign shares (“B-share”) are listed for transactions in Shenzhen Stock Exchange respectively on 26 November 1993 and 28 June 1995. As at 31 December 2016, the total share capital of the Company is RMB 5,250,283,986 with par value of RMB 1 each. The financial statement has been approved for issue by the Company’s Board of Directors on 30 August 2017.. The Company and its subsidiaries (the “Group”) are principally engaged in the businesses of developing and operating electric power plants in Guangdong Province, the PRC. For the Consolidation scope changed of the Group, please refer to VIII. For the information of subsidiaries of the Company, please refer to Note IX. IV.Basis for the preparation of financial statements 1.Basis for the preparation The financial statements are prepared in accordance with the Accounting Standard for Business Enterprises - Basic Standard, and the specific accounting standards and other relevant regulations issued by the Ministry of Finance on 15 February 2006 and in subsequent periods (hereafter collectively referred to as “the Accounting Standard for Business Enterprises” or “CAS”), and “Information Disclosure Rule No. 15 for Companies with Public Traded Securities - Financial Reporting General Provision” issued by China Security Regulatory Commission. 2. Continuous operation. The Company since 12 months after the reporting period does not exist on the company's continued viability of si gnificant concern events or circumstances. V. Significant accounting policies and accounting estimates 76 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Specific accounting policies and accounting estimates tips: During the financial statement preparation, the Group’s management is required to utilize estimate and assumptions, which will have effects on the application of accounting policy and the amount of asset, debt, income and charge, where the actual situation may be different from the estimates. The Group’s management will do continuous assessments for the crucial assumptions the estimate involved and the judgement of uncertain factors. The influence of changes in accounting estimate will be confirmed in the current change period and the future period. (a)Other Asset Impairments with the Exception of Inventory and Financial Asset As 22 of Note 5 states, the Group makes impairment assessment for other asset impairments with the exception of inventory and financial asset on balance sheet date, which is to conform whether recoverable amount dropped to be less than its book value . If the situation shows that the book value of long-term asset may not be completely recovered, the relevant assets will be regarded as having been impaired, and the impairment loss will be confirmed accordingly. When judging whether impairments exist in the assets above, the management should mainly make assessment and analysis by the following aspects: (1)Whether matters which will influenced the asset impairment have occurred; (2)Being continuously used or displaced, whether the expected available present value of cash flow is less than the asset’s book value; and (3)Whether the repeated assumption is properly utilized for predicting the future present value of cash flow. If the relevant assumptions,adopted by the Group to confirm the impairment, have changes in discount rate and growth rate in the future cash flow’s present value approach, great influences may be generated in the present value utilized in the impairment test, and which will lead to an impairment in the Group’s long-term asset above. (b)Service Life of Buildings and Equipments The service life of buildings and equipments will depend on the management’s consideration for the asset durability and the situation after maintaining in accordance with the industry practice . When the annual year-end comes, examination and proper adjustment will be made for the predicted service life. The changes in the predicted service life of fixed asset may have a great effect on the Group’s net profit. (c)Income Tax Whether to confirm the deferred income tax asset generated from the deductible loss and deductible temporary difference greatly depends on whether the management can obtain sufficient prospective taxable income which can be utilized to deduct the deductible loss and deductible temporary difference,nevertheless, to calculate the prospective taxable income requires plenty of judgement and assessment. Meanwhile, the influence of tax-planning strategy and the overall economic condition should be taken into account. Different judgement and assessment will influence the confirmation and amount of the deferred income tax. (d)Deferred Income Tax When estimating sufficient taxable income which can be utilized to deduct the deductible loss and deductible temporary difference can be obtained in the prospective period, the Group will count and confirm the relevant income tax asset in the limit of the taxable income which is likely to be utilized to deduct the deductible loss and deductible temporary difference and in the basis of the applicative income tax rate in the prospective period of recovering this asset.The Group needs to apply the judgement to assess the time and amount of the taxable income, and make reasonable assessment and judgement for the prospective applicative income tax rate 77 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 according to the current tax policy and other relevant policies to define the amount of deferred income tax which should be confirmed. If any difference exists between the management’s assessment and the time and amount of the actual net profit generated in the prospective period or the actual aaplicative income tax rate, which will influence the amount of deferred income tax asset. 1.Complying with the statements in Accounting Standards for Business Enterprises The financial Report and statements are prepared with compliance to the requirement of the Enterprise Accounting Standard. They reflect the financial position as of June 30, 2017 as well as the business performance and cash flow situation in the first half of 2017 of the Company frankly and completely. 2. Accounting period Fiscal year is dated from Gregorian calendar Jan., 1 to Gregorian calendar Decmber., 31. The accounting of the financial statements during the period starts from January 1, 2017 to 6 months ended June 3 0,2017. 3.Business cycle The Company’s normal business cycle is the period from the acquisition of assets such as those for the generation of electricity to the realisation of cash or cash equivalents.The business cycles for principal activities are usually less than 12 months. 4. Functional currency The Company’s functional currency is Renminbi and these financial statements are presented in Renminbi. 5. Accounting process method of enterprise consolidation under same and different controlling. (1) Business combinations involving enterprises under common control The consideration the combining party paid for the combination and the carrying amount of the net assets obtained are measured at carrying amount. The difference between the carrying amount of the net assets obtained and the carrying amount of consideration paid for the combination is adjusted to share premium (capital premium) in the capital reserve. If the balance of share premium (capital premium) is insufficient, any excess is adjusted to retained earnings. Any costs directly attributable to the combination are recognized in profit or loss for the current period when occurred. The transaction costs of issuing equity or debt securities for business combinations. (2) Business combinations not involving enterprises under common control The acquirer’s combining costs and the identifiable net assets obtained at the acquisition date are measured at fair value. If the combining costs are greater than the fair value of identifiable net assets at the acquisition date, the difference is recognized as goodwill; if the combining costs are less than the fair value of identifiable net assets at the acquisition date, the difference is recognized in profit or loss for the current period. The direct acquisition-related costs arising from the business combination are recognized as expenses in the periods in which the costs are incurred. The costs of the issuance of equity or debt securities as a part of the consideration paid for the acquisition are included as a part of initial recognition amount of the equity or debt securities. 6.Preparation of the consolidated financial statements The consolidated financial statements comprise the financial statements of the Company and all of its subsidiaries. 78 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Subsidiaries are consolidated from the date on which the Group obtains control and are de-consolidated from the date that such control ceases. For a subsidiary that is acquired in a business combination involving enterprises under common control, it is included in the consolidated financial statements from the date when it, together with the Company, comes under common control of the ultimate controlling party. The portion of the net profits realised before the combination date is presented separately in the consolidated income statement. In the preparation of consolidated financial statements, if the accounting policies or accounting period among the Company and subsidiaries are inconsistent, the financial statements of subsidiaries have been adjusted to conform to the Company’s policies and accounting period. For business combination not obtained under common control, the financial statements have been adjusted based on the fair value of net recognisable asset on the acquisition date. All significant intra-group balances, transactions and unrealised profits are eliminated in the consolidated financial statements. The portion of subsidiaries’ owners’ equity and the portion of subsidiaries’ net profits and losses and comprehensive incomes for the period not attributable to the Company are recognised as minority interests, net profit attributed to minority interests and total comprehensive incomes attributed to minority interests and presented separately in the consolidated financial statements under owners’ equity, net profits and total comprehensive income respectively. When the Company sells assets to subsidiaries, the unrealised gains and losses should fully offset the net profit attributed to shareholders of the parent company; when subsidiaries sell assets to the Company, the unrealised gains and losses should be assigned and offset between the net profit attributed to shareholders of the parent company and minority interests according to the Company’s distribution ratio of the subsidiary. The unrealised gains and losses between subsidiaries should be assigned and offset between the net profit attributed to shareholders of the parent company and minority interests according to the parent company’s distribution ratio of the subsidiary. In preparing the consolidated financial statements, where the accounting policies and the accounting periods of the Company and subsidiaries are inconsistent, the financial statements of the subsidiaries are adjusted in accordance with the accounting policies and the accounting period of the Company. For subsidiaries acquired from business combinations involving enterprises not under common control, the individual financial statements of the subsidiaries are adjusted based on the fair value of the identifiable net assets at the acquisition date. 7. The joint-venture arrangement classification and pooling of interests accounting processing methods The joint-venture arrangement comprises the pooling of interests and joint-venture enterprise. The pooling of interests is the joint-venture arrangement where the participant possesses the relevant assets arranged and will undertake relevant debts. The joint venture enterprise is the arrangement where the participant only reserves rights on the net assets. The Group, based on the rights and obligations in the normal operation of the joint-venture arrangement, determines the classes of the joint-venture arrangement. And it also takes account of the structure and legal form of the joint-venture arrangement, the agreed terms and conditions, other relevant facts and conditions, etc. among the joint-venture arrangement upon evaluation of rights and obligations. The Group determines the following projects sharing interests in the pooling of interests and conducts the accounting processing based on relevant accounting standards for business enterprises: (I) determining assets possessed solely and the jointly-possessed assets based on its share; 79 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 (II) determining debts undertaken solely and the shared debts based on its share; (III) determining the revenues produced by the pooling of interests owned by the on-sale group; (IV) determining the revenues produced by the pooling of interests through sale based on the group share; (V) determining the fees occurred solely and those of the pooling of interests based on the its share. If the Group invests or sells the assets, etc. to the pooling of interests (except for the business constituted by the assets), it will only ascertain the partial profits and losses produced by such trade and attributable to the other participants of the pooling of interests before selling such assets, etc. to any third party. If the invested or sold assets have the impairment losses per Accounting Standards for Business Enterprises No. 8 - Assets Impairment, the group will ascertain such losses wholly. If the Group purchases the assets, etc. from the pooling of interests (except for the business constituted by the assets), it will only ascertain the partial profits and losses produced by such trade and attributable to the other participants of the pooling of interests before selling such assets, etc. to any third party. If the purchased assets have the impairment losses per Accounting Standards for Business Enterprises No. 8 - Assets Impairment, the group will ascertain such losses wholly based on its share. 8.Cash and cash equivalents Cash and cash equivalents comprise cash on hand, demand deposits, and short-term, highly liquid investments, which are readily convertible into known amounts of cash and are subject to an insignificant risk of change in value. 9.Foreign currency transactions and translation of financial statements denominated in foreign currencies When the Group receives capital in foreign currencies from investors, the capital is translated to Renminbi at the spot exchange rate at the date of the receipt. Other foreign currency transactions are, on initial recognition, translated to Renminbi at the spot exchange rates on the dates of the transactions. Monetary items denominated in foreign currencies are translated to Renminbi at the spot exchange rate at the balance sheet date. The resulting exchange differences, except for those arising from the principal and interest of specific foreign currency borrowings for the purpose of acquisition and construction of qualifying assets (see Note v.18), are recognised in profit or loss. Non-monetary items denominated in foreign currencies that are measured at historical cost are translated to Renminbi using the foreign exchange rate at the transaction date. 10. Financial instruments (a) Financial assets (i) Classification of financial assets Financial assets are classified into the following categories at initial recognition: financial assets at fair value through profit or loss, receivables, available-for-sale financial assets and held-to-maturity investments. The 80 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 classification of financial assets depends on the Group’s intention and ability to hold the financial assets. The financial assets of the Group in current year include receivables and available-for-sale financial assets. Receivables Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Available-for-sale financial assets Available-for-sale financial assets include non-derivative financial assets that are designated upon initial recognition as available for sale and other financial assets which do not fall into any of the above categories. (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. In the case of financial assets at fair value through profit or loss, the related transaction costs occurred at the time of acquisition is recognized in profit or loss for the current period. For other financial assets, transaction costs that are attributable to the acquisition of the financial assets are included in 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 fair value cannot be reliably measured. Receivables are measured at amortized cost using the effective interest method. Gain or loss arising from a change in fair value of an available-for-sale financial asset is recognized directly in equity, except for impairment losses 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 directly in equity is recycled into profit or loss for the current period. The Group assesses the carrying amount of financial assets other than those at fair value through profit or loss at each balance sheet date. If there is objective evidence that the financial asset is impaired, an impairment loss is provided for. Objective evidence indicating impairment of financial assets refers to the matter that actually occurs after the initial recognition of financial assets, it will affect estimated future cash flows of financial assets, and its impact can be reliably measured. (iii) Impairment of financial assets The objective evidence, of which provided for available-for-sale equity instruments being impaired, includes an investment in an equity instrument with serious or prolonged decline. The Group assesses available-for-sale equity instruments at each balance sheet date on an individual basis. If the fair value of equity instruments is less than its initial investment cost of more than 50% (inclusive), or less than its initial investment cost for more than one year (inclusive), it indicates that the equity instruments are impaired. If the fair value of equity instruments is less than its initial investment cost of more than 20% ( inclusive) 81 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 to 50% (exclusive), the Group will consider other relevant factors to judge that whether equity instruments are impaired. The Group calculates the initial investment cost of initial available-for-sale equity instruments investment using the weighted average method. When an impairment loss on a financial asset carried at amortised cost has 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 (excluding future credit losses not incurred). If there is objective evidence that the value of the financial asset is recovered and the recovery is related objectively to an event after the impairment is recognised, the previously recognised impairment loss is reversed and the amount of reversal is recorded in profit or loss. When an impairment loss on an available-for-sale financial asset has incurred, the difference between the present value of the discounted cash flow of its book value and market return on a similar financial asset is recognised as impairment loss, and recorded in current profit or loss. Recognised impairment loss cannot be reversed in subsequent periods. (iv) Derecognition of financial assets A financial asset is derecognised when any of the below criteria is met: (i) the contractual rights to receive the cash flows from the financial asset expire; (ii) the financial asset has been transferred and the Group transfers substantially all the risks and rewards of ownership of the financial asset to the transferee; or (iii) the financial asset has been transferred and the Group has not retained control of the financial asset, although the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset. On derecognition of a financial asset, the difference between the carrying amount and the sum of the consideration received and the cumulative changes in fair value that have been recognised directly in equity, is recognised in profit or loss (b) Financial liabilities Financial liabilities are classified into the following categories at initial recognition: financial liabilities at fair value through profit or loss and other financial liabilities. The financial liabilities of the Group are other comprise financial liabilities, including payables, borrowings and debentures payable. Payables, including accounts payable and other payables, are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method. Borrowings and bonds payable are recognised initially at fair value, net of transaction costs incurred, and subsequently measured at amortised cost using the effective interest method. Other financial liabilities with maturities no more than one year (inclusive) are classified as current liabilities. Other financial liabilities with maturities over one year (inclusive) but are due within one year since the balance sheet date are classified as the current portion of non-current liabilities. Others are classified as non-current liabilities. A financial liability is derecognised or partly derecognised when the current obligation is discharged or partly discharged. The difference between the carrying amount of the financial liability or the derecognised part of the financial liability and the consideration paid is recognised in profit or loss. (c) Determination of the fair value of the financial instruments The fair value of a financial instrument that is traded in an active market is determined at the quoted price in the 82 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 active market. The fair value of a financial instrument that is not traded in an active market is determined by using a valuation technique. Valuation techniques include using prices of recent market transactions between knowledgeable and 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, etc. When a valuation technique is used to establish the fair value of a financial instrument, it makes the maximum use of observable market inputs and relies as little as possible on entity-specific inputs. When the observable inputs are not available or are unrealistic to obtained, unobservable inputs shall be used 11.Account receivable (1)Bad debt provision on receivable accounts with major amount individually The top five accounts receivable in amount, any other receivables Criteria and norm of individual significance with an individual amount more than RMB 5,000,000, and all long-term receivables The amount of the present value of the future cash flows Measurement of impairment allowances for receivables of expected to be derived from the receivable below its carrying individual significance amount. (2)The accounts receivable of bad debt provisions made by credit risk Group Name Method In Group ,Accounts on age basis in the portfolio: □ Applicable √ Not applicable In Group, adopting balance percentage method for bad debt provision: □ Applicable √ Not applicable In Group ,adopting other method for bad debt provision: □ Applicable √ Not applicable (3) Accounts receivable that are individually insignificant but with bad debt provision provided on an individual basis When objective evidence indicates the Group can’t receive money Reason for separate provision for bad debts according originalterms, provision for bad debts recognized. The bad debt will be recognized when the present value of estimated Method of provision for bad debts future cash flow below their book value. 12. Inventories Whether the company needs to comply with the disclosure requirements of the particular industry No (a) Classification 83 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Inventories include fuel and spare parts measured at the lower of cost and net realisable value.. (b) Cost of inventories transferred out Cost of fuel transferred out is calculated using the weighted average method. Spare parts are amortised in full when received for use. (c) Basis for determining the net realisable value of inventories and provisioning methods for decline in value of inventories Any excess of the cost over the net realisable value of inventories is recognised as a provision for diminution in the value of inventories. Net realisable value is measured by the estimated selling price in the ordinary course of business less the estimated costs necessary to make the sale and relevant taxes. (d) The Group maintains a perpetual inventory system.. 13. Classified to be the possessed assets for sale The non-liquid assets or the treatment group complied with the following conditions will be classified into the possessed assets for sale: (I) the non-liquid assets or the treatment group is ready for sale subject to the common terms and conditions for such assets or the treatment group under the current conditions; (II) the group has already made a resolution on treatment of such non-liquid assets or the treatment group and obtained proper approval; (III) the Group has already concluded an irrevocable transfer agreement with the assignee; (IV) such transfer will be completed within one year. The non-liquid assets complied with the conditions for the possessed assets for sale (excluding the financial assets, the investment real estate calculated based on its fair value and the deferred income tax assets) will be the lower amount between the book value and the fair value minus the treatment cost. If the fair value minus the treatment cost is lower than the original book value, then it will be deemed as the asset deprecation loss. The non-liquid assets classified into the processed assets ready for sale and the assets and debts in the treatment group comprise the liquid assets and liquid debts to be listed separately in the balance sheet. 14. Long-term equity investments Long-term equity investments comprise the Company’s long-term equity investments in its subsidiaries and the Group’s long-term equity investments in its associates. Subsidiaries are the investees over which the Company is able to exercise control. Associates are the investees over which the Group has significant influence, but not control, on their financial and operating policies. Investments in subsidiaries are presented in the Company’s financial statements using the cost method, and are adjusted to the equity method when preparing the consolidated financial statements. Investments in associates are accounted for using the equity method.长 (a) Determination of investment cost For long-term equity investments acquired through a business combination: for long-term equity investments acquired through a business combination involving enterprises under common control, the investment cost shall be the absorbing party’s share of the carrying amount of owners’ equity of the party being absorbed at the 84 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 combination date; for long-term equity investment acquired through a business combination involving enterprises not under common control, the investment cost shall be the combination cost. For long-term equity investments acquired not through a business combination: if the long-term equity investments are acquired in cash, the initial investment cost shall be the purchase price actually paid; if the long-term equity investments are acquired by issuing equity securities, the initial investment cost shall be the fair value of the equity securities. (b) Subsequent measurement and recognition of related profit and loss For long-term equity investments accounted for using the cost method, they are measured at the initial investment costs, and cash dividends or profit distribution declared by the investees are recognised as investment income in profit or loss. For long-term equity investments accounted for using the equity method, where the initial investment cost exceeds the Group’s share of the fair value of the investee’s identifiable net assets at the time of acquisition, the investment is initially measured at cost. Where the initial investment cost is less than the Group’s share of the fair value of the investee’s identifiable net assets at the time of acquisition, the difference is included in profit or loss for the current period and the cost of the long-term equity investment is adjusted accordingly. For long-term equity investments accounted for using the equity method, the Group recognises the investment income or losses according to its share of net profit or loss of the investee. The Group discontinues recognising its share of net losses of an investee after the carrying amount of the long-term equity 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 losses and the criteria with respect to recognition of provisions under the accounting standards on contingencies are satisfied, the Group continues recognising the investment losses and the provisions. The Company shall adjust the carrying amount of the long term investment for other changes in shareholders’ equity of the investee (other than net profits or losses), and include the corresponding adjustment in shareholders’ equity. The carrying amount of the investment is reduced by the Group’s share of the profit distribution or cash dividends declared by an investee. The unrealised profits or losses arising from the intra-group transactions amongst the Group and its investees are eliminated in proportion to the Group’s equity interest in the investees, and then based on which the investment gains or losses are recognised. For the loss on the intra-group transaction amongst the Group and its investees attributable to asset impairment, any unrealised loss is not eliminated. (c) Basis for determining existence of control and significant influence over investees Control is the power to govern the investee so as to obtain variable returns by participating in the related business activities of the investees and the ability to affect the returns by exercising its power over the investees. Joint control is the contractually agreed sharing of control over an investee’s economic activities, and exists only when the strategic financial and operating decisions relating to the activities require the unanimous consent of the Group and the parties sharing the control. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies. (d) Impairment of long-term equity invest The carrying amount of long-term equity investments in subsidiaries, joint venture, and associates is reduced to the recoverable amount when the recoverable amount is less than the carrying amount 85 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 15. Investment properties The measurement mode of investment property The measurement by the cost method Depreciation or amortization method Investment properties, including land use rights that have already been leased out and buildings that are held for the purpose of leasing are measured initially at cost. Subsequent expenditures incurred in relation to an investment properties are included in the cost of the investment property when it is probable that the associated economic benefits will flow to the Group and their costs can be reliably measured; otherwise, the expenditures are recognised in profit or loss in the period in which they are incurred. The Group adopts the cost model for subsequent measurement of investment properties. Buildings and land use rights are depreciated or amortised to their estimated net residual values over their estimated useful lives. The estimated useful lives, the estimated net residual values that are expressed as a percentage of cost and the annual depreciation (amortisation) rates of investment properties are as follows: Estimated useful lives Estimated net residual value Annual depreciation rates Building 30 years 5% 3.17% When an investment property is transferred to owner-occupied properties, it is reclassified as fixed asset at the date of the transfer. The carrying amount of the fixed asset shall be measured on the basis of fair value of the investment property. The investment property’s estimated useful life, net residual value and depreciation (amortisation) method applied are reviewed and adjusted as appropriate at each year-end. An investment property is derecognised on disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from its disposal. The net amount of proceeds from sale, transfer, retirement or damage of an investment property after its carrying amount and related taxes and expenses is recognised in profit or loss for the current period. 16. Fixed assets (1)Recognition of fixed assets Fixed assets comprise plant and building, power generator equipment, motor vehicles and other equipment. Fixed asset is recognised when it is probable that the related economic benefits 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 acquisition date. The fixed assets injected by the state-owned shareholder during the restructuring of corporation were initially recorded at the valuated amount approved by the relevant authorities managing state-owned assets. 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 the costs can be reliably measured. The carrying amount of those parts that are replaced is derecognised and all the other subsequent expenditures are recognised in income statement when they are incurred. (2)Depreciation of fixed assets 86 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 The method for Expected useful life Category Estimated residual value Depreciation depreciation (Year) Straight-line method House and building 10-50 years 0% - 5% 1.80% - 10.00% Straight-line method Generation equipment 5-31 years 0% - 5% 2.90%- 16.67% Transportation Straight-line method 5-10 years equipment 0% -5% 9.00% - 20.00% Straight-line method Other equipment 5-25 years 0% - 5% 3.60% - 20.00% (3)Cognizance evidence and pricing method of financial leasing fixed assets The lease that essentially transfers all the risks and returns related to the ownership of the asset is classified as finance lease. The entry value of the fixed assets under finance lease the lower of its fair value and the present value of the minimum lease payments. The difference between the entry value of the fixed asset under finance lease and the present value of the minimum lease payment is recognised as unrecognised financing charges. Fixed assets under finance lease share the same depreciation method with company owned fixed assets. If there is reasonable certainty that the Group will obtain ownership of a leased asset at the end of the lease term, the leased asset is depreciated over its estimated useful life. Otherwise, the leased asset is depreciated over the shorter of the lease term and its estimated useful life. 17.Construction in progress Construction in progress is measured at its actual costs incurred. Actual costs include construction cost, installation cost, capitalised borrowing costs, and any other costs directly attributable to bringing the asset to working condition for its intended use. When the construction in progress is ready for its intended use, it is transferred to fixed assets and starts depreciation the following month. When recoverable amount of the construction in progress is lower than its carrying value, its carrying value is then reduced to the recoverable amount. 18.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 income statement. Capitalisation of borrowing costs is suspended when 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 the specific borrowings obtained for the acquisition or construction of a fixed asset qualifying for 87 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 capitalisation, the amount of borrowing costs eligible for capitalisation is determined by deducting any interest income earned from depositing the unused specific borrowings in the banks or any investment income arising on the temporary investment of those borrowings during the capitalisation period. For the general borrowings obtained for the acquisition or construction of a fixed asset qualifying for capitalisation, the amount of borrowing costs eligible for capitalisation is determined by applying the weighted average effective interest rate of general borrowings, to the weighted average of the excess amount of cumulative expenditures on the asset over the amount of specific borrowings. The effective interest rate is the rate at which the estimated future cash flows during the period of expected duration of the borrowings or applicable shorter period are discounted to the initial amount of the borrowings. 19.Biological Assets 20.Oil & Gas assets 21.Intangible assets 1. Valuation Method, Service Life and Impairment Test of Intangible Assets Intangible assets mainly including land use rights, sea use rights, software, associated projects for electricity transmission and transformation, microwave engineering and transportation engineering 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 recognised by the state-owned assets supervision and administration department. (a) Land use right and sea use right Land use rights are amortised on a straight-line basis over their approved period of 20 to 70 years. If the purchase costs of land and attached buildings cannot be reasonably allocated between the land use right and the buildings, the purchase costs are recognised as fixed assets. (b)Associated projects for electricity transmission and transformation, microwave engineering and transportation engineering Projects for electricity transmission and transformation and microwave engineering are undertaken by the Group for the grid connection project for loading to Guangdong Guangdian Power Grid. From the start of use, they are amortised on a straight-line basis over their benefit period of 16 years. Transportation engineering projects are amortised on a straight-line basis over their benefit period of 10 years to 20 years (c) Other intangible assets Besides land use right, sea use right, associated projects for electricity transmission and transformation, microwave engineering and transportation engineering, other intangible assets are amortized on a straight-line basis over their expected life of 2 years to 25 years. (d) Periodic review on useful life and method of amortisation For intangible assets with finite useful life, their expected life and amortisation method are reviewed and adjusted at the end of every year. (e) 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. 88 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 (2)Accounting policies for the internal research and development expenditure The internal R&D project expenditure is classified into the research expenditure and the development expenditure based on the property thereof and the large uncertainty existence for the final formation of the intangible assets of the R&D activities. The expenditure for the planned survey, evaluation and selection phases for the R&D projects is that for the research phase and will be included into the current profits and losses upon occurrence; the expenditure for relevant design and test phases applied finally for the R&D projects is that for the development phase, among which, that complied with the following conditions will be capitalized: The development of R&D projects has been demonstrated sufficiently by the technology team; The Management Layer has already approved the budget for the development of R&D projects; The Management Layer has already approved the budget for the development of R&D projects; It has sufficient technical and capital support for the project development activities and following large-scale production; The expenditure related to the development may be collected reliably. The expenditure of the development phase in unconformity with conditions above will be included into the current profits and losses upon occurrence. The expenditure of the previous periods included into the profits and losses will not be re-deemed as the asset in the following periods. The capitalized expenditure in the development phase is listed as the development expenditure in the balance sheet and will become the intangible asset from the date when the project meeting the intended usage. 22. Impairment of long-term assets Fixed assets, construction in progress, intangible assets with finite useful lives, investment property measured at cost and long-term equity investments in subsidiaries, joint venture, 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 asset 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. Goodwill that is separately presented in the financial statements is tested at least annually for impairment, irrespective of whether there is any indication that it may be impaired. In conducting the test, the carrying value of goodwill is allocated to the related asset group or groups of asset groups which are expected to benefit from the synergies of the business combination. If the result of the test indicates that the recoverable amount of an asset group or a group of asset groups, including the allocated goodwill, is lower than its carrying amount, the corresponding impairment loss is recognised. The impairment loss is first deducted from the carrying amount of goodwill that is allocated to the asset group or group of asset groups, and then deducted from the carrying amounts of other assets within the asset group or group of asset groups in proportion to the carrying amounts of assets other than goodwill. Once the asset impairment loss mentioned above is recognised, it is not allowed to be reversed for the value recovered in the subsequent periods. 89 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 23.Long-term deferred expenses Long-term prepaid expenses include the expenditure for improvements to fixed assets held under operating leases, and other expenditures that have been incurred but should be recognised as expenses over more than one year in the currentand subsequent periods. Long-term prepaid expenses are amortised on the straight-line basis over the expected beneficial period and are presented at actual expenditure net of accumulated amortisation. 24. Employee benefits (1) Short-term employee benefits Short-term remunerations mainly include wages or salaries, bonuses, allowances and subsidies, staff welfare, medical insurance, work injury insurance, maternity insurance, housing funds, labour union funds, employee education funds, short-term paid absence. Short-term remunerations are recognised as current liabilities in the accounting period in which the service has been rendered by the employees, and as costs of assets or expenses to whichever the employee service is attributable. Non-monetary benefits are measured at fair value. (2)Post –employment benefits The Company’s post-employment benefits scheme includes both Defined Contribution Plan (DCP) and Defined Benefit Plan (DBP). A DCP is a pension plan under which the Company pays fixed contributions into a separate entity and has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. A DBP is a pension plan that is not a defined contribution plan. During the periods of reporting, the Company’s post-employment benefits scheme mainly includes basic pension insurance and unemployment insurances, both of which are DCP. Basic pension insurance Employees of the Group have entered into the social pension insurance scheme organised by local labour and social security department. The Group pays basic pension insurances to local labour and social security department monthly according to local insurance base and corresponding rate. Local labour and social security department is obligated to pay basic pensions to retired employees. Supplementary pension insurance The company purchases supplementary pension insurance on behalf of employees, and pays pension insurances according to the policies of Yudean Group. The amounts based on the above calculations are recognised as liabilities in the accounting period in which the service has been rendered by the employees, with a corresponding charge to the profit or loss for the current period or the cost of relevant assets. (3) Termination benefits The Group provides compensation for terminating the employment relationship with employees before the end of the employment contracts or as an offer to encourage employees to accept voluntary redundancy before the end of the employment contracts. The Group recognises a liability arising from compensation for termination of the employment relationship with employees, with a corresponding charge to profit or loss at the earlier of the following dates: 1) when the Group cannot unilaterally withdraw the offer of termination benefits because of an employment termination plan or a curtailment proposal; 2) when the Group recognises costs or expenses related to the restructuring that involves the payment of termination benefits. Early retirement benefits The Group provides early retirement benefits for employees who enrolled in internal retirement arrangement. Early retirement benefits refer to wages and social benefit paid by the Group on behalf of the employees who have 90 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 not meet retirement age requirement but voluntarily retire after permission from the Group’s management level. The Group starts paying early retirement benefits to early retired employees from the start date of their early retirement until they reach the statutory retirement age. For the accounting treatment of early retirement benefits, the Group adopts the same method as termination benefits, that is, upon confirming the termination benefits comply with relevant conditions, proposed payment of early retirement wages. and social security from the start date of termination of services to the date of statutory retirement age are recognised as liability and recorded into profit and loss at lump sum. The discrepancy caused by change in actuarial assumption and adjustment of welfare standard is recorded into current profit or loss. Early retirement benefits that are expected to be paid within one year after balance sheet date are disclosed as current liabilities. (4) Other long-term employee benefits According to the Urban Employee Basic Medical Insurance (UEBMI) policy governing the Company and some of the Group’s subsidiaries, if an employee’s UEBMI contribution period who participates in basic medical insurance for urban residents, fails to reach the time requirement when the employee reaches the statutory retirement age, the employee shall continue to contribute to the UEBMI till the contribution period meets the required time. The Group determines the amount to be contributed in the residual service period of an employee based on the present value of the future cash flow expected to be paid for UEBMI till the required time is met, which will be recognised as long-term employee benefits liabilities with a corresponding charge to profit or loss or included in cost of related assets. 25. Estimated Liabilities A provision is recognised for an obligation related to a contingency if the Group has a present obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. A provision is initially measured at the best estimate of the expenditure required to settle the related present obligation. Where the time value of money is material, provisions are stated at the discounted value of estimated future cash flow. Factors pertaining to a contingency such as the risks, uncertainties and time value of money are taken into account as a whole in reaching the best estimate. If there is a range for the required expenditure where all results within the range are equally probable, the best estimate will be the median value of the range; otherwise, the best estimate will be determined based on the following conditions: - the best estimate will be the value with the highest probability if the contingency involves single item; - the best estimate will be calculated based on the probability of each result if the contingency involves multiple items. The carrying amounts of provisions are reviewed at each balance sheet date and adjusted based on the latest best estimates 26.Share-based payments 27.Preferred shares, perpetual capital secutities and other financial instruments 28. Revenue Whether the company needs to comply with the disclosure requirements of the particular industry No 91 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 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 discounts and returns. Revenue is recognised in profit or loss when it is probable that the economic benefits will flow to the Group, the revenue and costs can be measured reliably and the following respective conditions are met: (a) Revenue from sales of electricity and heat energy Revenue is recognised when electricity and heat energy are supplied to grid companies or customers. (b) Revenue from sales of by-products Revenue from the sales of goods is recognised when the Group transfers by-products (such as coal ash) produced by electricity generations to the designated delivery place pursuant to the contract or agreement and the recipient resource utilisation confirms receipt. (c) Rendering of services Revenue from rendering of services is measured at the fair value of the consideration received or receivable under the contract or agreement. The Group provides external bidding agency service and maintenance service. The Group provides external bidding agency service, upon the completion of the bidding service, revenue is recognised based on the pricing difference between the electricity consumption of bidding and auction price, and the customer’s conventional price of electricity. The Group provides external maintenance service, revenue is recognised according to the percentage completion method, determined by percentage of the total cost incurred. (d) Revenue from sale of certified emission reductions (CERs) The Group sells CERs provided by its natural gas facilities and wind power facilities. These facilities are registered with the Clean Development Mechanism (CDM) Executive Board (EB) of the United Nations as CDM projects under the Kyoto Protocol. The Company also sells voluntary emission reductions (“VERs”) attributable to the electricity generated from CDM projects before getting registered with CDMEB. Revenue related to CERs and VERs is recognised when the following conditions are met: - The counterparty has committed to buy CERs or VERs; - The amount of income from selling CERs or VERs can be reliably measured; - The Company has generated the related electricity. (e) Transfer of asset usage rights Interest income is recognised based on the length of time of the deposits or principal outstanding and the applicable effective interest rate. Rental income for operation lease is recognised according to straight-line method of allocation over the rental period. 29. Government grants 1. Judgment Basis and Accounting Treatment Method of Government Grants related to Assets Government grants related to assets refer to government grants which are obtained by the Group for the purposes of purchase, construction or acquisition of the long-term assets. Government grants related to income refer to the government grants other than those related to assets. Government grants related to assets will be recorded as deferred income and recognised evenly in profit or loss over the useful lives of the related assets. However, the government grants measured at their nominal amounts will be directly recorded in profit and loss for the current period. 92 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 2. Judgment Basis and Accounting Treatment Method of Government subsidy related to Income Government grants related to income will be recorded as deferred income and recognised in profit or loss in the period in which the related expenses are recognised if the grants are intended to compensate for future expenses or losses, and otherwise recognised in profit or loss for the current period if the grants are used to compensate for expenses or losses that have been incurred. 30. Deferred income tax assets/Deferred income tax liability Deferred tax assets and deferred tax liabilities are calculated and recognised based on the differences arising between the tax bases of assets and liabilities and their carrying amounts (temporary differences). Deferred tax asset is recognised for the deductible losses that can be carried forward to subsequent years for deduction of the taxable profit in accordance with the tax laws. No deferred tax liabilities is recognised for the temporary differences resulting from the initial recognition of Goodwill. No deferred tax asset or deferred tax liability is recognised for the temporary differences resulting from the initial recognition of assets or liabilities due to a transaction other than a business combination, which affects neither accounting profit nor taxable profit (or deductible loss). At the balance sheet date, deferred tax assets and deferred tax liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled. Deferred tax assets are only recognised for deductible temporary differences, deductible losses and tax credits to the extent that it is probable that taxable profit will be available in the future against which the deductible temporary differences, deductible losses and tax credits can be utilised. Deferred tax liabilities are recognised for temporary differences arising from investments in subsidiaries, joint venture, and associates, except where the Group is able to control the timing of reversal of the temporary difference, and it is probable that the temporary difference will not reverse in the foreseeable future. When it is probable that the temporary differences arising from investments in subsidiaries 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 utilised, the corresponding deferred tax assets are recognised. Deferred tax assets and liabilities are offset when: the deferred taxes are relate to the same tax payer within the Group and same fiscal authority, and; that tax payer has a legally enforceable right to offset current tax assets against current tax liabilities. 31. Leases (1)Accounting of operational leasing Operating lease expenses are recorded in relevant cost of capital or current profit or loss according to straight-line method over the lease period. Operating lease revenue are recognised according to straight-line method over the lease period. (2)Accounting treatment of financing leasing When the Group acquires an asset under a finance lease, the asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments, each determined at the inception of the lease. The difference between the fair value of the leased assets and the minimum lease payments is recognised as unrecognised finance charges. Unrecognised finance charge under finance lease is amortised using an effective 93 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 interest method over the lease term. The minimum lease payment net of unrecognised finance charges are disclosed as long-term payable. 32. Other significant accounting policies and estimates 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. The critical accounting estimates and key assumptions that have a significant risk of causing material adjustments to the carrying amounts of assets and liabilities within the next accounting year are outlined below: (a) Impairment of assets other than inventories and financial assets The Group tests for impairment for assets that have indication of impairment as at balance sheet date, including fixed assets, construction in progress, intangible assets with finite useful life, investment properties measured at cost, and long-term equity investment in subsidiaries, joint venture, and associates, etc. When judging whether there is evidence of impairment in the above assets, management assesses and analyses the following: (1) whether any event that causes impairment has occurred; (2) whether the estimated available present value of cash flows from continual use or disposal of assets is lower than the carrying value of the asset; and (3) whether the assumptions used for the estimated present value of future cash flows are appropriate. The Group adopted assumptions in determining whether assets are impaired. Any changes in the discounted rate and growth rate used in calculating the present value of future cash flows may significantly affect the present value used in the impairment test, resulting in the impairment of the above long-term assets. (b) Useful lives of plants, buildings and equipment The estimated useful lives of plants, buildings and equipment are determined by management after taking into account their durability and past maintenance records based on the industry practice. The estimated useful life of the assets is reviewed at each year-end with appropriate adjustments made accordingly. Any changes in the estimated useful life of fixed assets may have significant impact on the Group’s net profits. (c) Income tax The decision whether to recognise deferred tax assets arising from deductible tax losses and deductible temporary differences depends largely on management’s judgement as to whether sufficient future taxable profits will be available against which the assets can be utilised in the future periods. The calculation of future taxable profits involves much judgements and estimations, and is affected by the Group’s tax planning strategy and overall economic environment. Different judgements and estimates will affect the recognition of deferred tax assets and their recognised amounts (d) Deferred tax assets When assessing whether there will be sufficient future taxable profits available against which the deductible temporary differences can be utilised, the Group recognises deferred tax assets to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences can be utilised, using tax rates that would apply in the period when the asset would be utilised. In determining the amount of deferred tax assets, the Group exercises judgements about the estimated timing and amount of taxable profits of the following periods, and of the tax rates applicable in the future according to the existing tax policies and other relevant regulations. Differences between such estimates and the actual timing and amount of future taxable profits will affect the amount of deferred tax assets. 33.Change of main accounting policies and estimations (1)Change of main accounting policies □Applicable √Not applicable 94 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 (2)Change of main accounting estimations √ Applicable □Not applicable Content and reasons for the accounting estimate change Approval procedures Application time Remarks In accordance with Accounting Standards for Business On May 31, 2017, the 1st session for Enterprises No. 4 – Fixed Assets and relevant company communication of the 8th Board of regulations, the company, based on the property and Directors of Guangdong Electric usage conditions of the current fixed assets, summarizes Power Development Co., Ltd. the predicted service life and net residual value of June 1,2017 approved the Proposal on various fixed assets, and determines to adjust the Adjustment of the Depreciation Life depreciation life and the residual value ratio of partial and Residual Value Ratio of Partial fixed assets to make the same become reasonable and Fixed Assets through deliberation. the company financial information more objective. The Group plans to change the predicted service life of fixed assets from June 1, 2017 with details below: Predicted service life at Predicted service life Notes present after the proposed adjustment House and building 10 – 50 years 10 – 50 years (a) Teneration equipment 6 – 31 years 5 – 31 years (b) Transportion Equipment 5 – 10 years 5 – 10 years Remain unchanged Other equipment 5 – 25 years 5 – 25 years (c) (a) the predicted service life of the non-productive housing and buildings will change into 40 years from 22 years. (b) the predicted service life of the partial wind power generating units equipment, water-turbine generator units equipment, power generation and heating equipment and the substation equipment will become into 8 years or 20 years respectively from 13 years or 16 years (or 18 years); the predicted service lift of the desulphurization and de-nitration equipment will change into 5 years or 10 years respectively from 13 years; the predicted service life of partial coal transportation equipment and terminal transportation equipment will change into 15 years from 8 years or 13 years. (c) the predicted service life of other equipment (including the crane, hoist and the wagon balance) will change into 10 years from 8 years. Zhanjiang Wind Power and Shibeishan Plan, as the company subsidiaries, adjusted the predicted net residual value ratio of fixed assets from 10% into 5% from June 1, 2017. The accounting estimate change items adopt the prospective application subject to provisions of the accounting standards for business enterprises. The accounting estimate change reduces the fixed assets depreciation amount from June 1, 2017 to June 30, 2017 by about 56 million yuan and increases the net profits attributable to the parent company in the first half year of 2017 by about 33.23 million yuan. 95 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 34.Other VI.Taxation 1.Main categories and rates of taxes Tax items Tax basis Tax rate 3% , 6% , 13% and17% In accordance with Notice on Brief Taxable value added amount (Tax Summarization of Relevant Polices for VAT Tax Rate (CS[2017] payable is calculated using the No. 37) issued by Ministry of Finance and State Administration of taxable sales amount multiplied VAT Taxation and relevant regulations, the applicable VAT rate on the by the applicable tax rate less Group steam sales business is 11% and 13% respectively after and deductible VAT input of current before July 1, 2017. period) City maintenance and Amount of VAT, business tax and 5%-7% construction tax consumption tax paid Corporate income tax Taxable income 0%,12.5% and 25% Education surcharges Based on VAT paid 3% Local education surcharges Based on VAT paid 2% In case there exist any taxpayer paying corporate income tax at different tax rates, disclose the information Name of taxpayer Income tax rates Xuwen Wind Power 12.5% Dianbai Wind power 0% 2.Tax preferences Pursuant to the approval documents (Caishui [2008] No.46 and Guo Shui Fa [2009] No.80), Xuwen Wind Power is exempted from paying corporate income tax in the first three years counting from the year profits are recorded, and can enjoy half rate reduction in the following three years. As the local taxation bureau considered that Xuwen Wind Power posted profits for the first time in 2012, the applicable corporate income tax rate for Xuwen Wind is 12.5% in 2017 (2016: 12.5%). Pursuant to the approval documents (Cai Shui [2008] No.46 and Guo Shui Fa [2009] No.80), Dianbai Wind Power is exempt from paying corporate income tax in the first three years counting from the year profits are recorded, and can enjoy half rate reduction in the following three years. As the local taxation bureau considered that Dianbai Wind Power posted profits for the first time in 2016, the applicable corporate income tax rate for Dianbai Wind is 0% in 2017 (2016: 0%). In addition, 50% of VAT levied on the sales of electricity generated by Guangdong Yudean Shibeishan Wind Power Co., Ltd (“Shibeishan”), Guangdong Yudean Zhanjiang Wind Power Generation Co., Ltd.(“Zhanjiang Wind Power”), Xuwen Wind Power and Huilai Wind Power Co., Ltd. (“Huilai Wind Power”) will be refunded immediately in accordance with the Notice Concerning Value Added Tax Policies on Wind Power Generation 96 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 (Notice Cai Shui [2015] No.74). 3.Other VII. Notes of consolidated financial statements 1.Monetary Capital In RMB Items Year-end balance Year-beginning balance Cash 72,714.00 49,457.00 Bank deposit 4,896,670,487.00 5,184,824,193.00 Total 4,896,743,201.00 5,184,873,650.00 Other notes As of June 30,2017,The company’s deposit in Yuedian Finance company is 4,074,004,815 yuan until June 30, 2017 (4,799,004,094 yuan before December 31, 2016).The deposit in Yudean Finance means that deposited in Guangdong Yudean Finance Co., Ltd. (“Yudean Finance”). Yuedian Finance is one financial institution approved by People's Bank of China and is a subsidiary of Yuden Group Co., Ltd. 2.Financial assets measured at fair value throuth current profit and loss In RMB Items Year-end balance Year-beginning balance Other notes 3.Derivative financial assets □Applicable √ Not applicable 4.Note receivable (1)Classification bill receivable In RMB Items Year-end balance Year-beginning balance (2)Note receivable pledged by the Company at the period -end In RMB Items Amount 97 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 (3)Note receivable endorsed or discounted by the Company as at June 30.2017 but not expired on the balance sheet date In RMB Amount underecognized ats at june Items Amount derecognized as at June 30,2017 30,2017 (4)There is no notes transferred to accounts receivable because drawer of the notes fails to exuted the contract or agreement In RMB Items Amount Other notes 5.Account receivable (1)Classification Account receivable : In RMB Year-end balance Year-beginning balance Provision for bad Provision for bad Book balance Book Book balance Classification debts debts Book Value Value Proportio Proportio Proportio Proportion Amount Amount Amount Amount n(%) n(%) n(%) (%) Accounts receivable of individual significance and 2,798,27 2,798,270 2,728,50 2,728,506,3 98.96% 98.29% subject to individual 0,069.00 ,069.00 6,320.00 20.00 impairment assessment Accounts receivable of individual insignificance but 29,527,5 29,527,52 47,555,5 47,555,589. 1.04% 1.71% subject ot individual 29.00 9.00 89.00 00 impairment assessment 2,827,79 2,827,797 2,776,06 2,776,061,9 Total 100.00% 100.00% 7,598.00 ,598.00 1,909.00 09.00 Receivable accounts with large amount individually and bad debt provisions were provided. √Applicable □Not applicable In RMB 98 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Content of account End of term receivable(Unit) Account receivable Provision for bad debts Proportion of provision Reason for provision Full amount recovery is GPGC 2,590,871,955.00 0.00 0.00% expected Shenzhen Powe suply Full amount recovery is 179,681,651.00 0.00 0.00% Bureau expected GPGC,Zhanjiang Power Full amount recovery is 12,993,438.00 0.00 0.00% suply Bureau expected Guangdong Yudean Full amount recovery is Group Co., Ltd. Shajiao 8,409,298.00 0.00 0.00% expected C plant Zhuhai Yuyufeng Steel Full amount recovery is 6,313,727.00 0.00 0.00% Co., Ltd. expected Total 2,798,270,069.00 -- -- Account reveivable on which bad debt proisions are provided on age basis in the group □Applicable √Not applicable Receivable accounts on which had debt provisions are provided on percentage analyze basis in a portfolio □Applicable √Not applicable Receivable accounts on which had debt provisions are provided by other ways in the portfolio Not applicable (2)Accounts receivable withdraw, reversed or collected during the reporting period The withdrawal amount of the bad debt provision during the reporting period was of RMB 0.00;The amount of the reversed or collected part during the reporting period was of RMB0.00. Where the current bad debts back or recover significant amounts: In RMB Name Back or withdraw money Method (3)The current accounts receivable written-offs situation In RMB Items Amount written-offs situation Account receivables actually written-offs during the reporting period: In RMB Nature of account Reason for Verification Arising form related Name Amount written-off receivable written-off procedures transactions(Y/N) Explanation for written-off of account receivables: 99 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 (4)The ending balance of other receivable owed by the imputation of the top five parties Name Amount in year-end Bad debt provision Proportion% Proportion% Total 2,798,270,069.00 - GPGC 2,590,871,955.00 91.62% - Shenzhen Powe supply 179,681,651.00 6.35% Bureau - GPGC Zhanjiang Power 12,993,438.00 0.46% supply Bureau - Guangdong Yudean Group 8,409,298.00 0.30% Co., Ltd. Shajiao C plant - Zhuhai Yueyufeng Steel Co., 6,313,727.00 0.22% Ltd. - (5) Account receivable which terminate the recognition owning to the transfer of the financial assets (6) The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts receivable Other notes: 6.Prepayments (1)Age analysis In RMB Year-end balance Year-beginning balance Aging Amount Proportion Amount Proportion Within 1 year 899,305,888.00 98.23% 1,062,290,930.00 99.76% 1-2 years 14,625,715.00 1.60% 1,680,510.00 0.16% 2-3 years 1,096,045.00 0.12% 68,229.00 0.01% Over 3 years 439,771.00 0.05% 782,453.00 0.07% Total 915,467,419.00 -- 1,064,822,122.00 -- Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time:: 100 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 (2)The ending balance of Prepayments owed by the imputation of the top five parties Name Relationship with the Amount Proportion % Reason company Guangdong Power Industry Fuel Co., The joint venture According to the Ltd. with Guangdong 658,185,449.00 71.90% annual assessment of group control rolling balance Guangdong Shantui Engineering Non-related party 82,656,743.00 9.03% Machinery Co., Ltd. Guangzhu Railway Co., Ltd. Gaolan Port Non-related party 27,061,372.00 2.96% Station income accounts Guangshen Railway Co., Ltd. Guangzou Non-related party 25,524,389.00 2.79% Freight Center Guangzhou Port Co., Ltd. Xiji Port Non-related party 13,744,927.00 1.50% Branch Total -- 807,172,880.00 88.17% -- Other notes: 7.Interest receivable (1)Classification Interest receivable In RMB Items Balance in year-end Balance in Year-beginning Fixed deposit 20,790,253.00 16,681,118.00 Total 20,790,253.00 16,681,118.00 (2)Important overdue interest Is there any impairment Name Balance in year-end Overdue date Reason and its judgment basis? Other notes: 8.Dividend receivable (1)Dividend receivable In RMB 101 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Items Amount in year-end Amount in year-beginning (2)Dividend receivable aging over 1 years In RMB Whether the impairment Items Amount in year-end Age Reason and its judgment basis Other notes: 9. Other accounts receivable (1) Other accounts receivable disclosed by category In RMB Amount in year-end Amount in year- begin Book Balance Bad debt provision Book Balance Bad debt provision Classification Book Proportio Proportio Proportio Proportion( Book value Amount Amount value Amount Amount n(%) n(%) n(%) %) Other accounts receivable of individual 97,753,9 97,753,91 85,142, 85,142,409. significance and 62.49% 0.00 0.00% 60.85% 0.00% 12.00 2.00 409.00 00 subject to individual impairment assessment Other accounts receivable of individual 58,668,8 6,423,69 52,245,18 54,781, 6,423,698 48,357,547. insignificance but 37.51% 10.95% 39.15% 11.73% 85.00 8.00 7.00 245.00 .00 00 subject to individual impairment assessment 156,422, 6,423,69 149,999,0 139,923 6,423,698 133,499,95 Total 100.00% 4.11% 100.00% 4.59% 797.00 8.00 99.00 ,654.00 .00 6.00 Other receivable accounts with large amount and were provided had debt provisions individually at end of period. √ Applicable □ Not applicable In RMB End of term Other receivable(Unit) Other receivable Bad debt provision Proportion Reason Guangdong Yudean 42,379,567.00 0.00 0.00% Enviornmental Pretection 102 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Co., Ltd. Shaoguan Xinyi Power 21,175,948.00 0.00 0.00% Industry Co., Ltd. Huidong Finance Bureau 18,318,970.00 0.00 0.00% Tongdao Yuexin Wind Pwer Generation Co., 10,000,000.00 0.00 0.00% Ltd. Huilai State Taxation 5,879,427.00 0.00 0.00% Bureau Total 97,753,912.00 0.00 -- -- Other receivable accounts in Group on which bad debt provisions were provided on age analyze basis: □Applicable √Not applicable Other receivable account in Group on which bad debt provisions were provided on percentage basis: □Applicable √Not applicable Other Receivable accounts on which bad debt provisions are provided by other ways in the portfolio: √ Applicable □ Not applicable Nature Book balance Bad debt provision Prepayments for construction 15,401,755 2,003,385 Income receivable from by product sales 6,914,336 2,803,641 Reserve funds 9,933,426 - Other 26,419,368 1,616,672 Total 58,668,885 6,423,698 (2)Bad debt provision accrual collected or switch back Bad debt provision accrual was RMB0.00, the acount collected or switches back amounting to RMB 0.00. Significant amount of reversed or recovered bad debt provision: In RMB Name Amount Method (3) Other account receivables actually cancel after wtite-off In RMB Items Amount Of Which,Other receivable write-off: In RMB Whether the money is generated by Name Nature Amount Reason program related party transactions 103 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Notes: (4) Other account receivables category by nature of money In RMB Naature Ending book balance Beginning book balance Prepayments for construction 49,293,903.00 66,823,439.00 Reserve funds 9,933,426.00 24,005,804.00 Prepayments for construction 54,896,673.00 20,197,811.00 Government Grants 5,879,427.00 4,226,820.00 Pending investment 10,000,000.00 0.00 Other 26,419,368.00 24,669,780.00 Total 156,422,797.00 139,923,654.00 (5)The ending balance of other receivables owed by the imputation of the top five parties In RMB Portion in total other Bad debt provision Name Nature Year-end balance Age receivables(%) of year-end balance Guangdong Yudean Environmental Product sales 42,379,567.00 Within 1 year 27.10% Protection Co., Ltd. Shaoguan Xinyi Prepayments for Power Industry Co., 21,175,948.00 Within 1 year 13.54% construction Ltd. Huidong Finance Land cushion 18,318,970.00 Over 3 years 11.71% Bureau receivable Tongdao Yuexin Wind Pwer Pending investment 10,000,000.00 Within 1 year 6.39% Generation Co., Ltd. Huilai State Taxation VAT return 4,213,470.00 Within 1 year 2.69% Bureau Huilai State Taxation VAT return 1,665,957.00 1-2 years 1.07% Bureau Total -- 97,753,912.00 -- 62.49% (6) Account receivables with government subsidies involved In RMB 104 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Estimated time, amount Name Project name Amount in year-end At the end of aging and basis Huilai State Taxation VAT return 1,665,957.00 1-2 years Bureau Huilai State Taxation VAT return 4,213,470.00 Within 1 year Bureau Total -- 5,879,427.00 -- -- (7) Other account receivables recognition terminated due to transfer of financial assets (8) Other account receivables transferred and assets & liability formed by its continuous involvement Other Notes 10.Inventory Whether the company needs to comply with the disclosure requirements of the particular industry No (1)Inventory types In RMB Year-end balance Year-beginning balance Items Provision for bad Provision for bad Book Balance Book value Book Balance Book value debts debts Raw materials 898,495,346.00 898,495,346.00 806,132,327.00 0.00 806,132,327.00 Parts 701,781,635.00 17,420,858.00 684,360,777.00 739,267,517.00 59,602,850.00 679,664,667.00 Other 79,253,042.00 79,253,042.00 27,356,247.00 0.00 27,356,247.00 Total 1,679,530,023.00 17,420,858.00 1,662,109,165.00 1,572,756,091.00 59,602,850.00 1,513,153,241.00 Whether the company is required to comply with the "Shenzhen Stock Exchange Industry Information Disclosure Guidelines No. 4 - listed companies engaged in seed industry, planting business" disclosure requirements No (2) Inventory depreciation reserve In RMB Beginning of Increased in current period Decreased in current period Items End of term term Provision Other Transferred back Other Raw materials 0.00 105 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Parts 59,602,850.00 0.00 0.00 42,181,992.00 17,420,858.00 Total 59,602,850.00 42,181,992.00 17,420,858.00 The company stock of the partial preparation for price fall was processed on June 30, 2017 and therefore the corresponding stock price fall preparation is written off. (3) Explanation on inventories with capitalization of borrowing costs included at ending balance (4) Assets unsettled formed by construction contract which has completed at period-end In RMB Items Amount Other notes: 11. Divided into assets held for sale In RMB Items Ending book value Fair value Estimated disposal cost Estimated disposal time Other notes: 12. Non-current assets due within 1 year In RMB Items Year-end balance Year-beginning balance Advance Equipment fund 56,369,497.00 0.00 Total 56,369,497.00 Other notes: 13. Other current assets In RMB Items Year-end balance Year-beginning balance Deductible VAT 959,560,600.00 868,022,220.00 Prepayment of income tax 7,337,200.00 12,496,080.00 Other 443,728.00 1,537,291.00 Total 967,341,528.00 882,055,591.00 Other notes: 106 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 14. Available-for-sale financial assets (1) Available-for-sale financial assets In RMB Balance in year -end Amount at year beginning Provision Items Provision for Book balance Book value Book balance for Book value impairment impairment Available-for-sale 0.00 0.00 0.00 0.00 0.00 0.00 liabilities instruments Available-for-sale equity 1,301,952,861.00 0.00 1,301,952,861.00 1,279,387,994.00 0.00 1,279,387,994.00 instruments According to the fair 442,301,175.00 0.00 442,301,175.00 419,736,308.00 0.00 419,736,308.00 value measurement According to the Cost 859,651,686.00 0.00 859,651,686.00 859,651,686.00 0.00 859,651,686.00 measurement Total 1,301,952,861.00 1,301,952,861.00 1,279,387,994.00 1,279,387,994.00 (2) Available-for-sale financial assets measured at fair value at period-end In RMB Available-for-sale equity Available-for-sale liabilities Classification Total l instruments instruments Fair value 442,301,175.00 442,301,175.00 (3)Available-for –sale financial assets measured at cost at the end of the year In RMB Book balance Provision for impairment Percentag e of Cash Balan End shareholdi dividends Investee Increa Increa Decre Balance of term ce of of ng in for the se se ase term term investees year % ShenzhenChuangxin Imvestment Group Co., 115,000,000.00 115,000,000.00 3.67% Ltd. Sun Insurance 356,000,000.00 356,000,000.00 3.38% South Sea Wind Electricity 70,000,000.00 70,000,000.00 10.00% 107 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Development Co., Ltd. Weixin Yuntou Yudean 318,651,686.00 318,651,686.00 19.55% Zaxi Enerty Co., Ltd. Total 859,651,686.00 859,651,686.00 -- (4) Changes of the impairment of the available-for-sale financial assets during the reporting period In RMB Available-for-sale Available-for-sale Type Total Equity instruments Debt instruments ⑸Relevant description of the end of the fair value of the equity instruments at the end of a serious decline in fair value or non temporary decline but not related to impairment provision In RMB Decrease in fair Continuous fall Provision for Reasons for Project Investment cost Ending fair value value relative to time (month) impairment impairment cost Other notes 15. Held-to-maturity investment (1) Held-to-maturity investment In RMB Year-end balance Year-beginning balance Items Provision for Provision for Book balance Book value Book balance Book value impairment impairment (2) Important held-to-maturity investment at period-end In RMB Project Face value Interest rate Actual interest rate Expiring date (3) Reclassify of held-to-maturity investment in the period Other notes 108 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 16. Long-term account receivables (1)Long-term account receivables In RMB End of term Beginning of term Provision Items for Provision for Range of rate Book balance Book value Book balance Book value impairme impairment nt Financing Rent 82,687,240.00 0.00 82,687,240.00 136,075,412.00 0.00 136,075,412.00 4.93% - 7.30% Total 82,687,240.00 0.00 82,687,240.00 136,075,412.00 0.00 136,075,412.00 -- (2) Long-term account receivables recognition terminated due to transfer of financial assets (3) Long-term account receivables transferred and assets & liability formed by its continuous involvement 17. Long-term equity investment In RMB Increase/decrease Closing Adjustme Withdraw balance Decre Gain/loss nt of Declarati Opening Add Other n Closing of Investees ased of other on of cash balance investme equity impairme Other balance impairme invest Investme comprehe dividends nt changes nt nt ment nt nsive or profit provision provision income I. Joint ventures Industrial 584,241,360.0 35,469,276. 59,231,11 560,479,5 Fuel 0 00 5.00 21.00 584,241,360.0 35,469,276. 59,231,11 560,479,5 Subtotal 0 00 5.00 21.00 II. Associates Shanxi 998,393,392.0 105,186,45 8,000,000 1,095,579 Yudean 0 0.00 .00 ,842.00 Enerty Yudean 667,666,853.0 46,164,422. 42,295,03 671,536,2 Finance 0 00 3.00 42.00 Taishan 1,970,490,827. 45,012,246. 2,015,503 Power 00 00 ,073.00 Generati 109 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 on Yudean 935,332,553.0 5,930,929.0 2,188,557 939,074,9 Shippin 0 0 .00 25.00 g West 200,011,582.0 -17,279,50 182,732,0 Investme 0 5.00 77.00 nt Yangshan 6,411,959 Jiangken 5,991,055.00 420,904.00 .00 g Yangshan 933,933.0 8,090,098 Zhongxi 8,523,902.00 500,129.00 0 .00 nkeng Yudean 147,000, 147,000,0 Captive 000.00 00.00 Huaneng Shantou 3,654,595.0 5,410,000 60,230,82 61,986,226.00 Wind 0 .00 1.00 Power 4,848,396,390. 147,000, 189,590,17 58,827,52 5,126,159 Subtotal 00 000.00 0.00 3.00 ,037.00 5,432,637,750. 147,000, 225,059,44 118,058,6 5,686,638 Total 00 000.00 6.00 38.00 ,558.00 Other notes 18. Investment real estate (1) Investment real estate by cost measurement √ Applicable □Not applicable In RMB Items House, Building Land use right Construction in process Total I. Original price 1. Balance at 20,135,165.00 20,135,165.00 period-beginning 2.Increase in the current period (1) Purchase ( 2 ) Inventory\Fixed assets\ Transferred from 110 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 construction in progress (3)Increased of Enterprise Combination 3.Decreased amount of the period (1)Dispose (2)Other out 4. Balance at period-end 20,135,165.00 20,135,165.00 II.Accumulated amortization 1.Opening balance 11,202,928.00 11,202,928.00 2.Increased amount ofthe 317,799.00 317,799.00 period (1) Withdrawal 317,799.00 317,799.00 3.Decreased amount of the period (1)Dispose (2)Other out 4. Balance at 11,520,727.00 11,520,727.00 period-end III. Impairment provision 1. Balance at period-beginning 2.Increased amount of the period (1) Withdrawal 3.Decreased amount of the period (1)Dispose (2)Other out 111 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 4. Balance at period-end IV.Book value 1.Book value at period 8,614,438.00 8,614,438.00 -end 2.Book value at 8,932,237.00 8,932,237.00 period-beginning (2) Details of fixed assets failed to accomplish certification of property □ Applicable √ Not appliucable (3) Investment real estate without certificate of ownership In RMB Items Book balue Reason Other notes 19. Fixed assets (1) List of fixed assets In RMB Machinery Items House, building Transportations Other equipment Total eqiupment I. Original price 1. Balance at 17,122,935,233.00 54,742,668,249.00 612,243,075.00 1,160,457,302.00 73,638,303,859.00 period-beginning 2.Increase in the 27,520,170.00 291,197,722.00 43,984,396.00 12,654,703.00 375,356,991.00 current period (1) Purchase 20,385,979.00 20,731,537.00 4,435,685.00 7,192,458.00 52,745,659.00 (2) Transferred fr 7,134,191.00 270,466,185.00 2,380,567.00 5,462,245.00 285,443,188.00 om construction in p rogress (3)Increased of Enterprise Combination Other 37,168,144.00 37,168,144.00 3.Decreased amount 436,933.00 119,244,275.00 3,845,108.00 2,391,153.00 125,917,469.00 of the period (1)Disposal 436,933.00 82,076,131.00 3,845,108.00 2,391,153.00 88,749,325.00 112 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Other 37,168,144.00 37,168,144.00 4. Balance at 17,150,018,470.00 54,914,621,696.00 652,382,363.00 1,170,720,852.00 73,887,743,381.00 period-end II. Accumulated depreciation 1.Opening balance 5,644,005,857.00 23,660,669,651.00 425,757,766.00 776,998,641.00 30,507,431,915.00 2.Increased amount 468,864,427.00 1,364,066,142.00 29,192,401.00 33,533,722.00 1,895,656,692.00 of the period (1) Withdrawal 468,864,427.00 1,364,066,142.00 29,192,401.00 33,533,722.00 1,895,656,692.00 Other 3.Decrease in the 144,174.00 33,035,891.00 3,022,938.00 1,694,974.00 37,897,977.00 reporting period (1)Disposal 144,174.00 33,035,891.00 3,022,938.00 1,694,974.00 37,897,977.00 Other 4.Closing balance 6,112,726,110.00 24,991,699,902.00 451,927,229.00 808,837,389.00 32,365,190,630.00 III. Impairment provision 1.Opening balance 129,030,264.00 1,180,825,371.00 2,322,621.00 4,008,167.00 1,316,186,423.00 2.Increase in the reporting period (1)Withdrawal 3.Decrease in 17,664,510.00 17,664,510.00 the reporting period (1)Disposal 17,664,510.00 17,664,510.00 4. Closing balance 129,030,264.00 1,163,160,861.00 2,322,621.00 4,008,167.00 1,298,521,913.00 IV. Book value 1.Book value of the 10,908,262,096.00 28,759,760,933.00 198,132,513.00 357,875,296.00 40,224,030,838.00 period-end 2.Book value of the 11,349,899,112.00 29,901,173,227.00 184,162,688.00 379,450,494.00 41,814,685,521.00 period-begin (2) Fixed assets temporarily idled In RMB Accumulated Provision for Items Original book value Book value Remark depreciation impairment 113 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 (3) Fixed assets rented by finance leases In RMB Accumulated Accumulated Items Original book value Book value depreciation depreciation Jinghai financing leasing 1,600,000,000.00 942,083,333.00 657,916,667.00 assets Zhongyue financing 900,000,000.00 303,003,507.00 596,996,493.00 leasing assets Yuejiang financing 1,121,850,800.00 143,467,458.00 978,383,342.00 leasing assets (4) Fixed assets leased in the operating leases In RMB Items End book value House and Building 12,151,291.00 (5) Fixed assets without certificate of title completed In RMB Items Book value Reason Temporarily in the government approved House and Building 118,406,472.00 stage Other notes 20. Project under construction (1)Project under construction In RMB Year-end balance Year-beginning balance Items Book balance Provision for Book value Book balance Provision for Book value devaluation devaluation Bohe Coal integration 3,644,749,208.00 3,644,749,208.00 3,540,338,713.00 3,540,338,713.00 project Lincang Dayakou Hydropower 1,073,168,083.00 1,073,168,083.00 1,051,344,320.00 1,051,344,320.00 Station 114 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Huizhou Natural Gas thermal and power 342,073,425.00 342,073,425.00 267,728,615.00 267,728,615.00 cogeneration expansion project Xuwen Shiban ling wind power 229,458,597.00 229,458,597.00 227,143,871.00 227,143,871.00 project Leizhou Hongxinlou wind 332,004,018.00 332,004,018.00 252,688,463.00 252,688,463.00 power projec Xuwen Qujie wind power 311,493,215.00 311,493,215.00 157,109,585.00 157,109,585.00 project Humen Electric 2*1000MW 137,382,179.00 49,461,265.00 87,920,914.00 137,373,040.00 49,461,265.00 87,911,775.00 project Red Bay No.5&6 26,446,446.00 26,446,446.00 26,360,597.00 26,360,597.00 generator units Other infrastructure 363,266,190.00 6,178,219.00 357,087,971.00 320,277,569.00 11,980,219.00 308,297,350.00 projects Technology improvement and 733,909,093.00 886,463.00 733,022,630.00 425,256,937.00 886,463.00 424,370,474.00 other projects Other 7,193,950,454.00 56,525,947.00 7,137,424,507.00 6,405,621,710.00 62,327,947.00 6,343,293,763.00 (2) Changes of significant construction in progress In RMB Includin Capitalis g: Amount Transferr ation of Current Capitalis Increase Balance at year ed to Other Proporti Progress interest amount ation of Source Name Budget at this in beginnin fixed decrease on(%) of work accumul of interest of funds period year-end g assets ated capitaliz ratio(%) balance ation of interest Bohe Borrowi 9,785,95 3,540,33 104,410, 3,644,74 260,188, 68,667,5 Coal 0.00 0.00 37.24% 37.24% 4.77% ng, 0,000.00 8,713.00 495.00 9,208.00 540.00 39.00 integrati proprieta 115 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 on ry project funding Lincang Borrowi Dayakou ng, 1,209,57 1,051,34 21,823,7 1,073,16 50,364,0 15,379,0 Hydropo 0.00 0.00 88.72% 88.72% 4.34% proprieta 8,400.00 4,320.00 63.00 8,083.00 38.00 17.00 wer ry Station funding Huizhou Natural Gas Borrowi thermal ng, and 900,000, 267,728, 74,344,8 342,073, 7,046,60 5,419,05 0.00 0.00 38.01% 38.01% 4.00% proprieta power 000.00 615.00 10.00 425.00 1.00 8.00 ry cogenera funding tion expansio n project Xuwen Borrowi Shiban ng, ling 460,639, 227,143, 12,642,3 10,327,6 229,458, 3,973,93 2,113,03 0.00 49.81% 49.81% 4.37% proprieta wind 300.00 871.00 91.00 65.00 597.00 8.00 8.00 ry power funding project Leizhou Borrowi Hongxin ng, 462,920, 252,688, 79,315,5 332,004, 7,146,33 3,372,82 lou wind 0.00 0.00 71.72% 71.72% 4.44% proprieta 000.00 463.00 55.00 018.00 2.00 2.00 power ry projec funding Xuwen Borrowi Qujie ng, 466,450, 157,109, 154,383, 311,493, 4,784,89 2,911,83 wind 0.00 0.00 66.78% 66.78% 4.37% proprieta 000.00 585.00 630.00 215.00 0.00 9.00 power ry project funding Humen Electric 7,789,51 87,911,7 87,920,9 2*1000 9,139.00 0.00 0.00 1.13% 1.13% 0.00 0.00 0.00% Other 0,000.00 75.00 14.00 MW project Red Bay No.5&6 7,714,37 26,360,5 85,849.0 26,446,4 0.00 0.00 0.34% 0.34% 0.00 0.00 0.00% Other generato 0,000.00 97.00 0 46.00 r units 116 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Jinghai 1-4#gene rators ultra-low 558,000, 40,323,3 162,646, 202,970, emission 0.00 0.00 36.37% 36.37% 0.00 0.00 0.00% Other 000.00 40.00 891.00 231.00 reductio n alteratio n project Other Not infrastru 267,974, 93,242,6 4,128,64 357,087, 0.00 applicabl 0.00 0.00 0.00% Other cture 010.00 07.00 5.00 971.00 e projects Technolo Borrowi gy Not ng, improve 424,370, 306,628, 200,946, 530,052, 0.00 applicabl 0.00 0.00 0.00% proprieta ment and 474.00 820.00 895.00 399.00 e ry other funding projects 29,347,4 6,343,29 1,009,53 205,075, 10,327,6 7,137,42 333,504, 97,863,3 Other 17,700.0 -- -- -- 3,763.00 3,950.00 540.00 65.00 4,507.00 339.00 13.00 0 (3)Provision for impairment of construction projects In RMB Items Amount Reason Other notes 21. Engineering Material In RMB Items End of term Beginning of term Spectial Material 1,477,958.00 1,496,854.00 Total 1,477,958.00 1,496,854.00 Other notes: 22.Liquidation of fixed assets In RMB Items End of term Beginning of term 117 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Power Equipment parts scrapped due to tec 2,569,759.00 1,060,031.00 hnical innovation Administrative supplies 23,169.00 0.00 House and Building 80,121.00 0.00 Transportation Equipment 156,626.00 16,157.00 Instrument and other 4,436,654.00 3,228,041.00 Total 7,266,329.00 4,304,229.00 Other notes: 23. Productive biological assets (1) Measured by cost □ Applicable √ Not applicable (2) Measured by fair value □ Applicable √ Not applicable 24. Oil-and-gas assets □ Applicable √ Not applicable 25. Intangible assets (1)Information In RMB Electric transmissi Non-patent Transporta Land use Franchise Sea use on project Items Patent Technolog Software tion Other Total right right right and y project microwave project I. Original price 1,812,946, 97,267,317 13,720,736 129,906,54 22,468,672 442,517,68 2,519,584, 1.Opening 756,769.00 498.00 .00 .00 4.00 .00 4.00 220.00 balance 2.Increas 3,624,020. 3,499,060. 7,123,080. ed 00 00 00 amount 118 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 ofthe period (1) 3,624,020. 3,499,060. 7,123,080. 00 00 00 Purchase (2)Internal Developm ent (3)Increase d of Enterprise Combinati on 3.Decrease d amount of the period (1) Disposal 4. Balance 1,816,570, 100,766,37 13,720,736 129,906,54 22,468,672 442,517,68 2,526,707, at 756,769.00 518.00 7.00 .00 4.00 .00 4.00 300.00 period-end II.Accumu lated amortizati on 1. Balance at 254,537,76 69,600,907 8,958,563. 17,864,908 21,447,068 405,126,13 777,883,02 347,669.00 period-beg 7.00 .00 00 .00 .00 9.00 1.00 inning 2. Increase in the 20,167,064 5,107,634. 1,309,746. 27,092,745 141,071.00 335,000.00 32,230.00 current .00 00 00 .00 period (1) 20,167,064 5,107,634. 1,309,746. 27,092,745 Withdrawa 141,071.00 335,000.00 32,230.00 .00 00 00 .00 l 3.Decrease d amount of the 119 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 period (1) Disposal 4. Balance 274,704,83 74,708,541 9,099,634. 19,174,654 21,447,068 405,461,13 804,975,76 at 379,899.00 1.00 .00 00 .00 .00 9.00 6.00 period-end III. Impairmen t provision 1. Balance at 1,021,604. 33,189,374 34,210,978 period-beg 00 .00 .00 inning 2. Increase in the current period (1) Withdrawa l 3.Decrease d amount of the period (1) Disposal 4. Balance 1,021,604. 33,189,374 34,210,978 at 00 .00 .00 period-end 4. Book value 1.Book value at 1,541,865, 26,057,836 4,621,102. 110,731,89 3,867,171. 1,687,520, 376,870.00 period 687.00 .00 00 0.00 00 556.00 -end 2.Book value at 1,558,408, 27,666,410 4,762,173. 112,041,63 4,202,171. 1,707,490, 409,100.00 period-beg 731.00 .00 00 6.00 00 221.00 inning The intangible assets by the end of the formation of the company's internal R & D accounted of the proportion of the balance of intangible assets 120 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 ⑵Details of Land use right failed to accomplish certification of property In RMB Items Book value Reason Other notes: 26. Development expenditure In RMB Beginning Ending Items Increase in the period Decrease in period balance balance Other notes 27. Goodwill (1) Original book value of goodwill In RMB Name of the investees or the Opening balance Increase Decrease Closing balance events formed goodwill Province Wind 2,449,886.00 2,449,886.00 Power Linchang Company 25,036,894.00 25,036,894.00 Total 27,486,780.00 27,486,780.00 (2)Impairment tprovision of goodwill In RMB Name of the investees or the Opening balance Increase Decrease Closing balance events formed goodwill Notes of the testing process of goodwill impairment, parameters and the recognition method of goodwill impairment losses: Other notes: 28.Long-term amortization expenses In RMB 121 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Balance in Increase at this Amortization Items Other decrease Balance in year-end year-begin period balance Leasehold 4,675,141.00 359,462.00 4,315,679.00 improvement Long-term lease 21,371,959.00 2,954,754.00 1,014,083.00 23,312,630.00 charges Other 8,564,612.00 1,680,000.00 4,608,439.00 2,276,173.00 Total 34,611,712.00 2,954,754.00 3,053,545.00 4,608,439.00 29,904,482.00 Other notes: 29.Deferred income tax assets/deferred income tax liabilities (1)Details of the un-recognized deferred income tax assets In RMB Balance in year-end Balance in year-begin Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax difference assets difference assets Provision for asset 778,810,681.00 193,720,196.00 778,810,681.00 193,720,196.00 impairment Deductible losses 352,676,457.00 88,169,113.00 112,722,870.00 28,180,717.00 Formation expense 3,089,245.00 386,156.00 3,089,245.00 386,156.00 Depreciation for fixed 43,497,328.00 10,874,332.00 77,011,308.00 19,252,827.00 assets Depreciation for fixed 58,555,576.00 14,838,523.00 58,555,576.00 14,838,523.00 assets Net income from testrun included in construction 53,276,223.00 13,158,344.00 53,276,223.00 13,158,344.00 in progress Government grant 59,235,416.00 14,808,854.00 63,727,865.00 15,931,966.00 Amortisation of land use 3,011,274.00 752,819.00 3,011,274.00 752,819.00 right Intra-Group transactions 211,947,928.00 52,986,982.00 220,966,988.00 55,241,747.00 Total 1,564,100,128.00 389,695,319.00 1,371,172,030.00 341,463,295.00 (2)Details of the un-recognized deferred income tax liabilities In RMB Items Balance in year-end Balance in year-begin 122 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Temporarily Deductable Deferred Income Tax Temporarily Deductable Deferred Income Tax or Taxable Difference liabilities or Taxable Difference liabilities Changes in fair value of 186,972,561.00 46,743,140.00 164,407,693.00 41,101,923.00 tradable financial assets Net incme/expensess included in the 6,353,869.00 1,588,467.00 42,114,651.00 10,528,662.00 Construction in project Appreciation of 92,932,981.00 23,233,245.00 94,486,868.00 23,621,718.00 acquisition subsidiaries Total 286,259,411.00 71,564,852.00 301,009,212.00 75,252,303.00 (3) Deferred income tax assets or liabilities listed by net amount after off-set In RMB Trade-off between the Opening balance of Trade-off between the End balance of deferred deferred income tax deferred income tax Items deferred income tax income tax assets or assets and liabilities at assets or liabilities after assets and liabilities liabilities after off-set period-begin off-set Deferred income tax -46,743,140.00 342,952,179.00 -37,534,026.00 303,929,269.00 assets Deferred income -46,743,140.00 24,821,712.00 -37,534,026.00 37,718,277.00 liabilities (4)Details of income tax assets not recognized In RMB Items Balance in year-end Balance in year-begin Deductible temporary difference 847,667,796.00 913,316,296.00 Deductible loss 516,974,753.00 252,062,736.00 Total 1,364,642,549.00 1,165,379,032.00 (5)Deductible losses of the un-recognized deferred income tax asset will expire in the following years In RMB Year Balance in year-end Balance in year-begin Remark 2017 67,060,276.00 67,060,276.00 2018 2,504,832.00 2,504,832.00 2019 7,350,102.00 7,350,102.00 2020 7,401,514.00 7,401,514.00 2021 167,746,012.00 167,746,012.00 123 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 2022 264,912,017.00 0.00 Total 516,974,753.00 252,062,736.00 -- Other notes: The management believed that as at the maturity date for the above deductible losses, the relevant subject of tax payment does not have sufficient taxable income to deduct the above deductible losses, therefore did not realise deferred tax assets。 30 .Other non-current assets In RMB Items Balance in year-end Balance in year-begin Prepayments for equipment fund 1,552,596,236.00 1,081,412,840.00 Prepayments for construction fund 268,530,528.00 542,965,106.00 Unrealised losses on sale and lease back 183,515,583.00 193,703,865.00 Prepayments for house purchase 130,460,612.00 150,799,140.00 Prepayments for land 47,400,921.00 39,765,321.00 Other 13,494,695.00 2,878,159.00 Total 2,195,998,575.00 2,011,524,431.00 Other notes: 31.Short –term loans (1)Short-term loans by category In RMB Items Balance in year-end Balance in year-begin Credit loans 9,565,000,000.00 5,758,860,000.00 Total 9,565,000,000.00 5,758,860,000.00 Notes: (2) Situation of Overdue Outstanding Short-Term Borrowing Final overdue outstanding short-term borrowing was zero, and situation of important overdue outstanding short-term borrowing was as follows: In RMB Unit Closing balance Interest rate Time Overdue interest rate Other notes: 124 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 32. Financial liabilities measured at fair value through current profit and loss In RMB Items Closing balance Opening balance Other notes: 33. Derivative financial liabilities □ Applicable√ Not applicable 34. Note payable In RMB Items Balance in year-end Balance in year-begin Commercial acceptance 100,000,000.00 1,088,100,837.00 Bank acceptance bills 631,452,959.00 242,380,000.00 Total 731,452,959.00 1,330,480,837.00 Amount due in next fiscal period is RMB0.00. 35. Account payable (1)Account payable In RMB Items Balance in year-end Balance in year-begin Fuel payable 1,726,470,356.00 2,190,716,850.00 Construction and equipment payble 382,234,090.00 799,093,816.00 Management fee payable 88,888,582.00 89,461,265.00 Other 70,726,892.00 87,978,515.00 Total 2,268,319,920.00 3,167,250,446.00 (2)Significant accounts payable that aged over one year In RMB The reason for not repaid or carried forwar Items Balance in year-end d After both parties to confirm the amount Fuel payable 11,753,524.00 paid Construction and equipment payble 27,905,224.00 Time arrangement for payable Management fee payable 93,905,115.00 Time arrangement for payable Other 12,879,654.00 Time arrangement for payable 125 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Total 146,443,517.00 -- Other notes: 36.Received in advance (1)Received in advance In RMB Items Balance in year-end Balance in year-begin Advance disposal of recyclable resources 194,798.00 162,884.00 Advances for grid payment 0.00 12,208,678.00 Other 5,000.00 84,798.00 Total 199,798.00 12,456,360.00 (2) Accounts payable with major amount and aging of over one year In RMB Items Closing balance Reason (3)Information of unliquidated completed assets formed in the construction contract at the end of the period In RMB Items Amount Other notes: 37. Employee compensation payable (1)Classification of employee compensation payable In RMB Items Balance in year-begin Increase at this period Decrease at this period Balance in year-end I. Short –term wages 125,994,004.00 641,099,501.00 570,944,483.00 196,149,022.00 II. Welfare afterlwaving of position-fixed 0.00 93,920,335.00 93,920,335.00 0.00 provision scheme III. Termination benefit 18,128,124.00 129,697,823.00 137,573,716.00 10,252,231.00 Total 144,122,128.00 864,717,659.00 802,438,534.00 206,401,253.00 (2)Short-term remuneration In RMB 126 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Items Balance in year-begin Increase in this period Payable in this period Balance in year-end 1.Wages, bonuses, 50,978.00 480,971,447.00 414,711,464.00 66,310,961.00 allowances and subsidies 2.Employee welfare 3,719,802.00 27,581,254.00 29,543,600.00 1,757,456.00 3. Social insurance 45,602,861.00 27,712,874.00 23,138,313.00 50,177,422.00 premiums Including:Medical 45,602,861.00 23,931,193.00 19,356,632.00 50,177,422.00 insurance Work injury insurance 0.00 1,589,272.00 1,589,272.00 0.00 Maternity insurance 0.00 1,323,237.00 1,323,237.00 0.00 Other 0.00 869,172.00 869,172.00 0.00 4. Public reserves for 0.00 63,660,089.00 63,660,089.00 0.00 housing 5.Union funds and staff 74,382,591.00 22,389,933.00 20,839,903.00 75,932,621.00 education fee 6.Short-term Absences 2,237,772.00 18,783,904.00 19,051,114.00 1,970,562.00 Total 125,994,004.00 641,099,501.00 570,944,483.00 196,149,022.00 (3)Defined contribution plans listed In RMB Items Balance in year-begin Increase in this period Payable in this period Balance in year-end 1. Basic old-age 0.00 68,989,618.00 68,989,618.00 0.00 insurance premiums 2.Unemployment 0.00 1,648,220.00 1,648,220.00 0.00 insurance 3. Annuity payment 0.00 23,282,497.00 23,282,497.00 0.00 Total 0.00 93,920,335.00 93,920,335.00 0.00 Other notes: 38.Tax Payable In RMB Items Balance in year-end Balance in year-begin VAT 143,721,340.00 133,295,631.00 Enterprise Income tax 125,834,542.00 128,468,570.00 127 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Individual Income tax 4,027,250.00 33,222,950.00 City Construction tax 5,635,982.00 2,327,949.00 Land use tax 10,116,794.00 9,707,984.00 House property Tax 25,854,953.00 6,552,214.00 Discharge fees 2,682,310.00 3,456,932.00 Embankment fee payable 0.00 2,879,847.00 Education surcharges payable 5,231,105.00 1,954,625.00 Other 5,546,187.00 5,053,142.00 Total 328,650,463.00 326,919,844.00 Other notes: 39. Interest payable In RMB Items Balance in year-end Balance in year-begin Long-term loans interest of installment and 71,457,908.00 27,938,770.00 interest charge Enterprise bond interest 30,898,477.00 44,398,814.00 Short term loan interest payable 13,537,009.00 10,807,042.00 Total 115,893,394.00 83,648,793.00 Interest overdue without paid: In RMB Borrower Amount Reason Other notes: 40. Dividends payable In RMB Items Balance in year-end Balance in year-begin Common dividends 9,703,930.00 9,703,930.00 Total 9,703,930.00 9,703,930.00 Other explanation, including dividends payable with over one yearage and disclosure un-payment reasons: 41.Other payable (1)Disclosure by nature In RMB 128 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Items Balance in year-end Balance in year-begin Performance guarantee deposits from 525,298,717.00 369,890,625.00 construction Construction and equipment payable 2,426,569,055.00 2,587,231,394.00 Volume Purchase payable 4,223,654.00 4,000,000.00 Advance from shaoguan Electric Power 8,284,884.00 19,936,021.00 plant State Oceanic Administration penalty 172,144,350.00 172,000,000.00 payable Other 168,568,027.00 139,498,955.00 Total 3,305,088,687.00 3,292,556,995.00 (2) Other payables with large amount and aging of over one year In RMB Items End of term Reason Performance guarantee deposits from 149,360,956.00 construction Construction and equipment payable 1,033,204,570.00 Volume Purchase payable 4,000,000.00 Other 38,913,469.00 Total 1,225,478,995.00 -- Other notes Mainly used to cope with project funds and retention money. Since the project has not finished the project and acceptance and final s ettlement or in the warranty period of acceptance, the project funds and retention money has not been settled. 42. Divided into liability held for sale In RMB Items Closing balance Opening balance Other notes: 43.Non-current liabilities due within 1 year In RMB Items Balance in year-end Balance in year-begin Long-term loans due in 1 year 1,038,080,970.00 990,474,807.00 129 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Long-term Account payable due in 1 year 368,665,106.00 443,169,716.00 Total 1,406,746,076.00 1,433,644,523.00 Other notes: 44.Other current liabilities In RMB Items Balance in year-end Balance in year-begin Short-term financing notes payable 1,723,070,000.00 The reseller sales tax 86,746,979.00 0.00 Total 86,746,979.00 1,723,070,000.00 Changes in short-term debentures payable: In RMB Balan Issuan Amortisa Balance at ce at Issuan Maturit ce tion of Repayme Issuance the Interest at the Name Face value ce y during siscounts nt for the amounts beginning face value end date period the or period of the year of the year premium year First batch of short-term financing bonds issued by 700,000,000 07/06/ 270 700,000,0 711,565,6 3,448,219. 715,013,8 Guangdong Electric Power .00 2016 days 00.00 44.00 00 63.00 Development Co., Ltd. of 2016 Second batch of short-term financing bonds issued by 500,000,000 11/08/ 270 500,000,0 505,017,3 4,453,699. 509,471,0 Guangdong Electric Power .00 2016 days 00.00 69.00 00 68.00 Development Co., Ltd. of 2016 First batch of short-term financing bonds issued by 500,000,000 20/07/ 270 500,000,0 506,486,9 4,128,082. 510,615,0 Guangdong Huizhou Pinghai .00 2016 days 00.00 86.00 00 68.00 Power Generation Co., Ltd.of 2016 1,700,000, 1,723,070, 12,030,00 1,735,099 Total -- -- -- 000.00 000.00 0.00 ,999.00 Other notes: 45.Long-term borrowings (1)Long-term term borrowings In RMB 130 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Items Balance in year-end Balance in year-begin Pledged borrowings 2,290,699,051.00 2,537,296,396.00 Mortgage borrowings 226,400,000.00 226,400,000.00 Guarantee loan 1,616,000,000.00 1,716,667,500.00 Credit loans 15,188,269,379.00 15,407,808,141.00 Total 19,321,368,430.00 19,888,172,037.00 Notes of short-term loans category: Other notes including interest rate range: 46.Bond payable (1)Bond payable In RMB Items Balance in year-end Balance in year-begin 12 Yudean Bond 1,197,459,048.00 1,196,982,619.00 16 Pinghai01 697,756,155.00 703,141,849.00 Total 1,895,215,203.00 1,900,124,468.00 (2)Changes of bonds payable(Not including the other financial instrument of preferred stock and perpetual capital securities that classify as financial liability In RMB The Withdraw Overflow Pay in Name of Perio Issue Opening Closing Book value Issue date current interest at discount current Other the bond d amount balance balance issue par amount period 12 1,200,000,0 7 1,200,000 1,196,982 29,700,00 476,429.0 1,197,459 Yudean 18/03/2013 00.00 years ,000.00 ,619.00 0.00 0 ,048.00 Bond 16 700,000,00 5 700,000,0 703,141,8 10,850,00 249,786.0 -5,635,48 697,756,1 26/09/2016 Pinghai01 0.00 years 00.00 49.00 0.00 0 0.00 55.00 1,900,000 1,900,124 40,550,00 726,215.0 -5,635,48 1,895,215 Total -- -- -- ,000.00 ,468.00 0.00 0 0.00 ,203.00 (3) Note to conditions and time of share transfer of convertible bonds (4)Other financial instruments that are classified as financial liabilities The issuance of preferred stock and other financial instruments such as perpetual debt Table of changes in financial instruments such as preferred stock and perpetual debt 131 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 In RMB External Balance in year-begin Increase at this period Decrease at this period Balance in year-end financial Amount Book value Amount Book value Amount Book value Amount Book value instruments Other Notes 47. Long-term payable (1) Long-term payable listed by nature of the account In RMB Items Balance in year-end Balance in year-begin Financing lease 1,677,860,027.00 1,827,552,654.00 Share repurchase payable 90,000,000.00 90,000,000.00 Total 1,767,860,027.00 1,917,552,654.00 Other Notes 48. Long-term employee salary payable (1)Long-term employee salary payable In RMB Items Balance in year-end Balance in year-begin II. Termination benefits 90,974,031.00 82,486,341.00 III. Other Long-term benefits 37,381,729.00 40,345,908.00 Total 128,355,760.00 122,832,249.00 (2) Changes of defined benefit plans Present worth of defined benefit plans obligation: In RMB Items Closing balance Opening balance Plan assets: In RMB Items Closing balance Opening balance Net liabilities(net assets) of defined benefit plans In RMB Items Closing balance Opening balance Notes to the influence of the content and related risk of defined benefit plans to the future cash flows, time and 132 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 uncertainty of the Company: Notes to analysis results of major actuarial assumptions and sensibility of defined benefit plans Other notes: 49. Specific payable In RMB Items Beginning of term Increased this term Decreased this term End of term Reason Relocation and construction of 1,715,385.00 0.00 1,715,385.00 windy power plant Extension support 24,960,000.00 0.00 24,960,000.00 funds Total 26,675,385.00 0.00 26,675,385.00 -- Other notes: 50. Estimates liabilities In RMB Items Balance in year-end Balance in year-begin Reason Other notes: 51.Deferred income In RMB Items Beginning of term Increased this term Decreased this term End of term Reason Government subsidy 125,650,072.00 5,100,763.00 2,065,231.00 128,685,604.00 Total 125,650,072.00 5,100,763.00 2,065,231.00 128,685,604.00 -- Details of government subsidies: In RMB Amount Beginning of New subsidy in transferred to Asset-relatedorin Items Other changes End of term term current period non-operational come-related income Shajiao A Zhenkou Pump 29,313,253.00 29,313,253.00 Related to assets house Energy saving 23,736,827.00 4,640,000.00 148,750.00 28,228,077.00 Related to assets funds Tax refund for 19,517,767.00 19,517,767.00 Related to assets 133 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 PRC-produced equipment Development and competitiveness 9,333,333.00 9,333,333.00 Related to assets funds from SASAC Incentives for energy efficiency 9,324,825.00 9,324,825.00 Related to assets of power plant by Dongguan city 5# generation set of desulfurization 6,153,847.00 1,538,462.00 4,615,385.00 Related to assets project Expansion on flow 4,149,062.00 4,149,062.00 Related to assets reconstruction project Sha A – 2016 central finance 4,038,125.00 4,038,125.00 Related to assets energy saving fund Refurbishment on 3,299,233.00 3,299,233.00 Related to assets air preheater Dianbai Reshui wind power plant 3,000,000.00 3,000,000.00 Related to assets project Special prize funds of recycle economy and 2,953,988.00 2,953,988.00 Related to assets energy saving by Shenzhen city Denitration 2,893,163.00 2,893,163.00 Related to assets project 2016 Provincial industry and information development 1,500,000.00 1,500,000.00 Related to assets special fund for technological transformation of enterprises 134 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Special funds for differential 1,318,000.00 1,318,000.00 Related to assets electricity price Water-freshing 1,230,770.00 1,230,770.00 Related to assets project Special prize funds of recycle economy and 1,125,999.00 378,019.00 747,980.00 Related to assets energy saving by Shaoguan city Circulating water pump special fund for 1,000,000.00 1,000,000.00 Related to assets technological renovation 1&2# Air preheater energy 1,000,000.00 1,000,000.00 Related to assets saving project Development fund for Dayakou 400,000.00 400,000.00 Related to assets Project Sha A – Return of 259,510.00 460,763.00 720,273.00 Related to income port dues Social security treatment clearing account relating 102,370.00 102,370.00 Related to income to firm’s stable position subsidy Total 125,650,072.00 5,100,763.00 2,065,231.00 128,685,604.00 -- Other notes: 52.Other Non-current liabilities In RMB Items Balance in year-end Balance in year-begin Cpaital injection 6,000,000.00 39,000,000.00 0.00 Total 6,000,000.00 39,000,000.00 Other notes: 135 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 53.Stock capital In RMB Changed(+,-) Balance in Capitalization Balance in Issuance of year-begin Bonus shares of public Other Subtotal year-end new share reserve Total of capital 5,250,283,986. 5,250,283,986. shares 00 00 Other notes: 54. Other equity instruments (1) Basic information of preferred stock, perpetual capital securities and other financial instruments outstanding issued at period-end (2) Change list of preferred stock, perpetual capital securities and other financial instruments outstanding issued at period-end In RMB Financial Opening period Increase Decrease 少 Closing period instruments outstanding Amount Book value Amount Book value Amount Book value Amount Book value issued Changes, reason of change and basis of relevant accounting treatment of other equity instruments in reporting period: Notes: 55. Capital reserves In RMB Items Year-beginning balance Increase in the current Decrease in the current Year-end balance period period Share premium 4,445,477,866.00 4,445,477,866.00 Estimate Increase 119,593,718.00 119,593,718.00 Transfer from the balance of capital surplus 20,474,592.00 20,474,592.00 recognised under previous accounting Investment from Yudean 395,000,000.00 395,000,000.00 Group Enjoy the rights of associ 20,785,182.00 20,785,182.00 136 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 ated enterprise base on sh are holding Other 1,676,120.00 42,440.00 1,718,560.00 Total 5,003,007,478.00 42,440.00 5,003,049,918.00 Other exlanation, including changes and reasons for changes: 56.Treasury stock In RMB Decrease in the current Items Year-beginning balance Increase in the current Year-end balance period Other notes, including changes and reason of change: 57. Other comprehensive income In RMB Amount of current period Less : After - ta Previously reco After - tax attr x attribut Year-beginning Amount for th Items gnized in profit Less: ibutable to the able to m Year-end balance balance e period befor or loss in other Income tax parent compa inority sh e income tax comprehensive ny areholder income s 2.Other comprehensive income reclassifiable to 145,059,015.00 22,564,868.00 5,641,217.00 16,923,651.00 161,982,666.00 profit or loss in subsequent periods Indluding:Share of other comprehensive income of the investee under the 21,753,244.00 21,753,244.00 equity method that w8ill be reclassified to profit or loss Gains or losses on changes in fair value of 123,305,771.00 22,564,868.00 5,641,217.00 16,923,651.00 140,229,422.00 available-for-sale financial assets Total 145,059,015.00 22,564,868.00 5,641,217.00 16,923,651.00 161,982,666.00 Other explanation, including the active part of the hedging gains/losses of cash flow transfer to initial recognization adjustment fro the arbitraged items: 137 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 58. Special reserves In RMB Decrease in the current Items Year-beginning balance Increase in the current Year-end balance period Other notes, including changes and reason of change: 59. Surplus reserve In RMB Items Year-beginning balance Increase in the current Decrease in the current Year-end balance period period Statutory surplus reserve 2,428,747,208.00 212,960,545.00 2,641,707,753.00 Optional surplus reserves 4,416,254,610.00 532,401,361.00 4,948,655,971.00 Total 6,845,001,818.00 745,361,906.00 7,590,363,724.00 Other explanation, including changes reasons for changes: Other explanation, including changes reasons for changes: In accordance with the PRC Company Law and the Company’s Articles of Association, the Company should appropriate 10% of net profit for the year to the statutory surplus reserve. The Company can cease appropriation when the statutory surplus reserve accumulates to more than 50% of the registered capital. The appropriation from discretionary surplus reserve should be approved by the Board of Directors at the general meeting of shareholders. The surplus reserve can be used to cover the loss or increase the share capital upon approval. According to the resolution at the general meeting of shareholders on 17 May 2017, the Company appropriated 10% of net profit for 2016, amounted to RMB212,960,545, (2016: 10% of net profit for 2015, amounted to RMB 295,088,584) to the statutory surplus reserve, and appropriate 25% of net profit for 2016, amounted to RMB532,401,361, to discretionary surplus reserve(2016: 25% of net profit for 2015, amounted to RMB737,721,459). 60. Retained profits In RMB Items Amount of this period Amount of last period Before adjustments: Retained profits at the period 6,135,494,928.00 7,439,335,347.00 end After adjustments: Retained profits at the period 6,135,494,928.00 7,439,335,347.00 beginning 138 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Add: Net profit attributable to owners of the 128,735,725.00 936,534,941.00 Company for the period Less: Appropriation to statutory surplus reserve 212,960,545.00 295,088,584.00 Drawing discretionary surplus reserve 532,401,361.00 737,721,459.00 DrawingCommon risk provision 420,022,719.00 1,207,565,317.00 Retained profits at the period end 5,098,846,028.00 6,135,494,928.00 As regards the details of adjusted the beginning undistributed profits (1)As the retroactive adjustment on Enterprise Accounting Standards and its related new regulations, the affected beginning undistributed profits are RMB 0.00. (2) As the change of the accounting policy, the affected beginning undistributed profits are RMB 0.00. (3) As the correction of significant accounting error, the affected beginning undistributed profits are RMB 0.00 . (4) As the change of consolidation scope caused by the same control, the affected beginning undistributed profits are RMB 0.00 (5) Other adjustment of the total affected beginning undistributed profits are RMB 0.00 . 61. Business income, Business cost In RMB Amount of current period Amount of previous period Items Income Cost Income Cost Main business 12,301,242,987.00 11,116,293,804.00 10,169,505,901.00 7,754,418,633.00 Other business 84,243,590.00 10,396,187.00 65,483,665.00 13,491,596.00 Total 12,385,486,577.00 11,126,689,991.00 10,234,989,566.00 7,767,910,229.00 62. Business tax and subjoin In RMB Items Amount of current period Amount of previous period Urban construction tax 33,337,926.00 40,671,220.00 Education surcharge 22,968,052.00 33,640,249.00 Property tax 28,969,819.00 0.00 Land use tax 11,746,353.00 0.00 vehicle and vessel usage tax 139,338.00 0.00 Stamp tax 6,935,121.00 0.00 Local Educational Surcharges 4,211,962.00 0.00 Other 210,087.00 1,796,574.00 Total 108,518,658.00 76,108,043.00 Other notes: 139 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 63.Sales expenses In RMB Items Amount of current period Amount of previous period Business expense 593,379.00 279,213.00 Employee’s remuneration 1,854,626.00 450,769.00 Publicity Expenses 16,136.00 4,393.00 Depreciation expenses 2,093.00 2,093.00 Advertising 68,154.00 0.00 Other 254,070.00 0.00 Total 2,788,458.00 736,468.00 Other notes: 64.Administrative expenses In RMB Items Amount of current period Amount of previous period Employee’s remuneration 145,944,344.00 147,466,219.00 Depreciation expenses 23,689,115.00 23,457,108.00 Repair charge 2,334,351.00 10,086,337.00 Office expenses 4,765,055.00 4,771,214.00 Insurance expenses 1,287,175.00 1,453,645.00 Travel expenses 2,717,016.00 2,715,825.00 Board of directors 335,076.00 460,554.00 Entertainment expenses 1,635,200.00 1,834,873.00 Lowsuit expenses 502,783.00 467,223.00 Amortiation of Intangible assets 26,453,221.00 24,511,460.00 Sewage charges 10,527,064.00 13,990,188.00 Consulting fee 1,662,697.00 1,848,638.00 Agency Charge 3,701,672.00 3,553,830.00 Tax fee 13,453.00 46,610,078.00 Property Management 10,341,583.00 6,832,089.00 Fire guard fee 16,957,562.00 18,244,479.00 Embankment protection fees 0.00 5,193,707.00 Health afforestation fees 5,628,871.00 6,616,228.00 Other 27,467,088.00 28,616,698.00 140 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Total 285,963,326.00 348,730,393.00 Other notes: 65.Financial Expenses In RMB Items Amount of current period Amount of previous period 668,634,978.00 727,776,774.00 Interest expenses -32,830,879.00 -33,067,804.00 Interest income Other 1,839,471.00 7,263,461.00 Total 637,643,570.00 701,972,431.00 Other notes: 66.Loss of assets impairment In RMB Items Amount of current period Amount of previous period Other notes: 67. Gains from changes in fair value In RMB Source of the gains from changes in fair Amount of this period Amount of last period value Other notes: 68. Investment income In RMB Items Amount of this period Amount of last period Long-term equity investment income by equity 225,418,910.00 126,201,534.00 method Hold the investment income during from 2,124,000.00 2,520,000.00 available-for-sale financial assets Total 227,542,910.00 128,721,534.00 Other notes: 141 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 69.Other income In RMB Source Amount of current period Amount of previous period Amortisation of government grant 2,065,231.00 0.00 VAT refund 5,092,977.00 0.00 Other 192,000.00 0.00 Total 7,350,208.00 0.00 70. Non-Operation income In RMB Items Amount of current period Amount of previous period Recorded in the amount of the non-recurring gains and losses Total gains from disposal of 1,268,222.00 130,677.00 1,268,222.00 non-current assets Including:Gains from disposal 1,268,222.00 130,677.00 1,268,222.00 of fixed assets Government Subsidy 8,896,831.00 Insurance indemnity 557,310.00 477,753.00 557,310.00 Other 1,096,627.00 1,104,450.00 1,096,627.00 Total 3,203,012.00 10,609,711.00 3,203,012.00 Government subsidy reckoned into current gains/losses In RMB Whether the impact of Whether Amount of Amount of Assets-relate Issuing subsidies on Items Reason Nature special current previous d/income subject the current subsidies period period -related profit and loss Other notes: 71.Non-current expenses In RMB 142 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 The amount of non-operating Items Amount of current period Amount of previous period gains & lossed Total of non-current asset 655,630.00 170,836.00 655,630.00 Disposition loss Incl: loss of fixed assets 655,630.00 170,836.00 655,630.00 disposition Foreign donations 60,000.00 137,791.00 60,000.00 Fine for delaying payment 32,317,140.00 1,995,891.00 32,172,789.78 Other 541,302.00 205,312.00 541,302.00 Total 33,574,072.00 14,167,800.00 33,574,072.00 Other notes: 72. Income tax expenses (1).Income tax expenses In RMB Items Amount of current period Amount of previous period Current income tax expense 201,520,623.00 360,216,189.00 Deferred income tax expense -57,560,692.00 -9,523,720.00 Settlement difference adjustment 4,731,892.00 64,789,601.00 Total 148,691,823.00 415,482,070.00 (2)Adjustment on accounting profit and income tax expenses In RMB Items Amount of current period Total profits 428,404,632.00 Income tax expenses calculated on legal / applicable tax rate 107,101,158.00 Impact of different tax rates of subsidiaries -6,270,781.00 Effect of tax preferential from subsidiaries 4,731,892.00 Non-taxable income -48,061,202.00 Cost, expense, and loss not deductible for tax purposes 24,956,314.00 Deductible losses of unrecognized deferred tax assets in current 0.00 period Temporary difference on unrecognized deferred tax assets in 66,234,442.00 current period 143 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Income tax expense 148,691,823.00 Other notes: 73 .Other comprehensive income More details can be seen in Note 57. 74.Items of Cash flow statement (1)Other cash received from business operation In RMB Items Amount of current period Amount of previous period Interest income 32,593,073.00 29,012,531.00 Government Subsidy 7,182,767.00 36,308,663.00 Insurance indemnity 8,879,625.00 24,365,929.00 Rent income 3,011,552.00 5,037,423.00 Other 56,204,282.00 18,484,430.00 Total 107,871,299.00 113,208,976.00 Explanation on other cash received in relateion to peration activities: (2)Other cash paid related to oprating activities In RMB Items Amount of current period Amount of previous period Sewage charges 9,416,665.00 10,425,276.82 Insurance expenses 50,406,954.00 50,340,310.06 Equipment cleaning and hygiene green fee 19,328,512.00 19,043,218.01 Transportation fee 13,833,959.00 11,982,439.35 Fire guard fee 16,074,970.00 18,244,478.83 Business fee 1,802,406.00 1,834,873.29 Agency Charge 5,007,819.00 5,402,468.61 Embankment protection fees 0.00 5,193,707.46 Office Expense 4,589,452.00 6,669,309.63 Travel expenses 4,115,623.00 4,529,068.81 Rental fee 6,470,575.00 6,359,971.79 Enterprise publicity expenses 1,380,424.00 1,556,472.89 Information system maintenance 3,020,926.00 2,703,512.64 144 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Water and electrical 9,807,005.00 4,485,490.28 R&D 2,872,231.00 3,070,961.84 Property Management fee 9,809,876.00 6,832,088.59 Union expenses 5,527,990.00 13,742,248.49 Other 132,723,856.00 30,276,678.61 Total 296,189,243.00 202,692,576.00 Explanation on other cash paid in relation to peration activities: (3)Cash received related to other investment activities In RMB Items Amount of current period Amount of previous period Explanation on cash received from other investment activities: (4).Cash paid related to other investment activities In RMB Items Amount of current period Amount of previous period Explanation on cash payable from other investment activities: (5)Other cash received in relation to financing activities In RMB Items Amount of current period Amount of previous period Fractional income 42,440.00 Total 42,440.00 Explanation on other cash received in relation to financing activities: (6)Cash paid related with financing activities IIn RMB Items Amount of current period Amount of previous period Yuejia Compan paid the minority 5,493,800.00 shareholders capital Total 5,493,800.00 Explanation on cash paid related with financing activities: 145 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 75. Supplement Information for cash flow statement (1)Supplement Information for cash flow statement In RMB Items Amount of current period Amount of previous period I. Adjusting net profit to cash flow from -- -- operating activities Net profit 279,712,809.00 1,049,213,377.00 Depreciation of fixed assets, oil and gas 1,893,466,852.00 1,967,464,053.00 assets and consumable biological assets Amortization of intangible assets 27,092,745.00 24,511,460.00 Amortization of Long-term deferred 3,053,545.00 1,422,220.00 expenses Loss on disposal of fixed assets, intangible -612,592.00 40,159.00 assets and other long-term deferred assets Financial cost 687,249,045.00 727,776,774.00 Loss on investment -227,542,910.00 -128,721,534.00 Decrease in deferred income tax assets -39,022,910.00 -9,135,247.00 Increased of deferred income tax liabilities -12,896,565.00 -388,473.00 Decrease of inventories -148,955,924.00 -125,401,984.00 Decease of operating receivables -6,141,117.00 90,976,269.00 Increased of operating Payable -876,477,694.00 1,098,743,108.00 Net cash flows arising from operating 1,578,925,284.00 4,696,500,182.00 activities II. Significant investment and financing -- -- activities that without cash flows: III.Movement of cash and cash equivalents: -- -- Ending balance of cash equivalents 4,896,743,201.00 6,108,160,833.00 Less: Beginning balance of cash equivalents 5,184,873,650.00 5,227,406,725.00 Net increase of cash and cash equivalents -288,130,449.00 880,754,108.00 (2) Net Cash paid of obtaining the subsidiary In RMB Amount Including -- Including -- 146 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Including -- Other notes: (3) Net Cash receive of disposal of the subsidiary In RMB Amount Including -- Including -- Including -- Other notes: (4)Composition of cash and cash equivalents In RMB Items Balance in year-end Balance in year-Beginning I. Cash 4,896,743,201.00 5,184,873,650.00 Including:Cash at hand 72,714.00 49,457.00 Demand bank deposit 4,896,670,487.00 5,184,824,193.00 III. Balance of cash and cash equivalents at 4,896,743,201.00 5,184,873,650.00 the period end 76. Note of statement of changes in the owner's equity Explain "other" project name and adjustment amount of the adjustment of closing balance in previous year, etc.: 77. The assets with the ownership or use right restricted In RMB Items Closing book value Causation of limitation Fixed assets 730,628,356.00 Long-term loans mortgage assets Unit construction financing Electricity bill Account receivable 121,354,261.00 pledge the transferor Total 851,982,617.00 -- Other notes: 78. Foreign currency monetary items (1) Foreign currency monetary items In RMB Closing foreign currency Closing convert to RMB Items Exchange rate balance balance Monetary capital -- -- 12,465.00 Including:USD 190.00 6.77 1,286.00 147 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Euro 0.00 0 HKD 12,881.00 0.87 11,179.00 Long –term loans -- -- 93,279,865.00 Including:USD 12,362,014.00 6.77 83,690,835.00 Euro 1,237,358.00 7.75 9,589,030.00 Other notes: (2) Note to overseas operating entities, including important overseas operating entities, wich should be disclosed about its principal business place, function currency for bookkeeping and basis for the choice. In case of any change in function currency, the cause should be disclosed. □ Applicable √ Not applicable 79. Hedging Disclose hedging items by type of hedging as well as relevant arbitrage tool, qualitative and quantitative information for arbitrage project: 80.Other VIII. Changes of consolidation scope 1. Enterprise consolidation not under the same control (1)Business combinations not under common control in the reporting period In RMB Revenue of Net profit of Recognition Timing of Costs for Proportion of Method of the acquiree the acquiree Acquistition basis of the Acquiree acquisition of acquisition of equities acquisition of from the from the date acquisition equities equities acquired (%) equities acquisition acquisition date date date Other notes: (2)Combination cost and goodwill In RMB Combination cost Notes to determination method, consideration and changes of fair value of combined cost: The main formation reason for the large goodwill: Other notes: (3) The identifiable assets and liabilities of acquiree at purchase date 148 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 In RMB Fair value on the acquisition date Book value on the acquisition date Determination method for fair value of the identifiable assets and liabilities: Contingent liability of the acquiree bear during combination: Other explanation: (4) The profit or loss from equity held by the date before acquisition in accordance with the fair value measured again Whether there is a transaction that through multiple transaction step by step to realize enterprises merger and gaining the controlduring the reporting period □ Yes √ No (5) Note to merger could not be determined reasonable consideration or Identifiable assets, Fair value of liabilities of the acquiree at acquisition date or closing period of the merge (6) Other notes: 2. Business combination under the same control (1) Business combination under the same control during the reporting period In RMB Income from Net profits the from the Recognition Income Net profits period-begin reporting Combined Proportion of Combination basis of during the during the Basis to the period to the party the profits date combination period of period of combination combination date comparison compairsion date of the date of the combination combination Other notes: (2) Combination cost In RMB Combination cost Notes to contingent consideration or other changes: Other notes: (3) The book value of the assets and liabilities of the combined party at combining date In RMB Combination date Last closing period Notes to contingent consideration or other changes: Other notes: 3. Counter purchase Basic information of trading, the basis of transactions constitute counter purchase, the retain assets , liabilities of 149 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 the listed companies whether constituted a business and its basis, the determination of the combination costs, the amount and calculation of adjusted rights and interests in accordance with the equity transaction process. 4. The disposal of subsidiary Whether there is a single disposal of the investment to subsidiary and lost control □ Yes √ No Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control in reporting period □ Yes √ No 5. Other reasons for the changes in combination scope Notes to reasons for the changes in combination scope (Newly established subsidiary and subsidiary of liquidation) and relevant information: 6.Other IX. Equity in other entity 1. Equity in subsidiary (1)Constitute of enterprise group Main Registered Business Share-holding ratio Subsidiary Acquired way operation place nature Directly Indirectly Electric Maoming Zhenneng Maoming Maoming 66.61% Establish Jianghai Power Jieyang Jieyang Electric 65.00% Establish Electric Zhangjiang Wind Power Zhanjiang Zhangjiang 70.00% Establish Anxin Electric Power Maintenance Dongguan Dongguan Electric 100.00% Establish Humen Power Dongguan Dongguan Electric 60.00% Establish Electric Bohe Electric Power Maoming Maoming 100.00% Establish Combination Yuheng Electronic Zhanjiang Zhanjiang Electric 76.00% under common control Electric Xuwen Wind Power Zhangjiang Zhanjiang 70.00% Establish Huadu Natural gas Guangzhou Guangzhou Electric 65.00% Establish Electric Dapu Power Meizhou Meizhou 100.00% Establish Leizhou Wind Power Leizhou Leizhou Electric 80.00% 14.00% Establish 150 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Electric Dianbai Wind Power Maoming Maoming 100.00% Establish Combination Zhanjiang Power Zhangjiang Zhangjiang Electric 76.00% under common control Combination Electric Yuejia Power Meizhou Meizhou 58.00% under common control Combination Yuejiang Power Shaoguan Shaoguan Electric 90.00% under common control Combination Electric Zhongyue Energy Zhanjiang Zhanjiang 90.00% under common control Electric sales Guangzhou Guangzhou Electric 100.00% Establish Electric Qujie Wind Power Zhanjiang Zhanjiang 100.00% Establish Yangjiang Wind Power Yangjiang Yangjiang Electric 100.00% Establish Combination Electric under non Lincang Energy Lincang Lincang 100.00% common control Combination Guangqian Electric Power Shenzhen Shenzhen Electric 100.00% under common control Combination Electric Huizhou Natural gas Huizhou Huizhou 67.00% under common control Combination Electric Pinghai Power Plant Huizhou Huizhou 45.00% under common control Combination Shibeishan Wind Power Jieyang Jieyang Electric 70.00% under common control Combination Electric Red Bay Power Shanwei Shanwei 65.00% under common control Combination Guangdong Wind Power Guangzhou Guangzhou Electric 100.00% under non common 151 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 control Pingyuan Wind power Meizhou Meizhou Electric 100.00% Establish Electric Heping Wind power Heyuan Heyuan 100.00% Establish Combination Electric Huilai Wind Power Jieyang Jieyang 70.00% under common control Electric Hongrui Technology Shaoguan Shaoguan 90.00% Establish Electric Yongan Natural gas Zhaoqing Zhaoqing 90.00% Establish Explanation on share-holding ratio in subsidiary different from ratio of voting right: The voting rights proportion of the Company over its subsidiary: Zhanjiang Wind Power, Xuwen Wind Power, Leizhou Wind Power, Yuejia Electric and Shibeishan are 60.00%, 60.00%, 60.00%, 56.00% and 60.00%, respectively, determined based on relevant rules of these subsidiaries’ articles of association. As such, the Company’s voting proportion and shareholding percentage are not consistent. Basis for controlling the invested entity with half or below voting rights held and without controlling invested entity but with over half and over voting rights: Pinghai power was bought by the Company in 2012 by offered non-public shares from Yudean. According to the agreement between Yudean and Huaxia Electric, which holds 40% share interest in Pinghai Power, the delegated shareholder and director from Huaxia Electric maintain consensus with those of Yudean when exercising their voting rights during shareholder and board meeting; while after Yudean transferred its 45% shareholding of Pinghai Power to the Company, the delegated shareholder and director from Huaxia Electric also maintain consensus with those of the Company when exercising their voting rights during shareholder and board meeting. On account of the above facts, with the control power of Pinghai Power, Huaxia Electric enjoys variable returns through involving in its relevant activities and has the ability to make use of its power to influence the amount of returns. Therefore, the Company owns the control power over Pinghai Power. Controlling basis for the structuring entity included in consolidated range: Basis on determinning to be a agent or consignor: Other notes: (2)Significant not wholly-owned subsidiaries In RMB Profit or loss attributable Holding proportion of Dividend declared to Closing balance of Name to non-controlling non-controlling interest non-controlling interest non-controlling interest interest Jinghai Power 35.00% 8,735,178.00 131,516,240.00 1,187,364,478.00 Zhanjiang Power 24.00% 13,080,639.00 15,765,106.00 954,741,304.00 Zhongyue Energy 10.00% -2,998,235.00 0.00 123,000,905.00 152 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Pinghai Power plant 55.00% 136,872,118.00 70,479,693.00 1,044,317,751.00 Red Bay 35.00% 28,843,287.00 65,318,133.00 1,109,725,693.00 Other notes: (3)Main financial information of significant not wholly-owned subsidiaries In RMB Closing balance Beginning balance Non-curr Non-curr Subsidia Non-curr Non-curr Current Total Current ent Total Current Total Current ent Total ries ent ent assets assets liabilities Liabilitie liabilities assets assets liabilities Liabilitie liabilities assets assets s s Jinghai 1,273,32 8,598,68 9,872,00 2,789,55 3,689,97 6,479,53 1,040,86 8,869,63 9,910,49 1,945,97 4,221,24 6,167,22 Power 1,506.00 3,376.00 4,882.00 5,106.00 9,838.00 4,944.00 2,549.00 1,166.00 3,715.00 9,818.00 0,924.00 0,742.00 Zhanjian 2,650,73 1,646,25 4,296,99 311,292, 7,610,26 318,902, 2,635,81 1,628,72 4,264,54 266,643, 8,623,65 275,267, g Power 9,960.00 1,527.00 1,487.00 461.00 1.00 722.00 1,946.00 9,534.00 1,480.00 782.00 2.00 434.00 Zhongyu 1,075,44 4,043,39 5,118,84 2,187,01 1,701,82 3,888,83 787,500, 4,174,81 4,962,31 2,300,14 1,402,17 3,702,31 e Energy 6,900.00 8,472.00 5,372.00 5,830.00 0,496.00 6,326.00 368.00 0,283.00 0,651.00 9,103.00 0,149.00 9,252.00 Pinghai 1,176,75 5,024,02 6,200,78 1,796,22 2,505,79 4,302,02 1,305,07 5,218,72 6,523,79 1,778,70 2,795,03 4,573,74 Power 8,570.00 9,020.00 7,590.00 8,371.00 9,671.00 8,042.00 2,062.00 2,817.00 4,879.00 9,983.00 8,849.00 8,832.00 plant 926,075, 6,286,28 7,212,36 2,014,71 2,027,00 4,041,71 952,162, 6,568,48 7,520,64 2,218,79 2,027,00 4,245,79 Red Bay 165.00 8,360.00 3,525.00 8,688.00 0,000.00 8,688.00 266.00 6,587.00 8,853.00 0,170.00 0,000.00 0,170.00 In RMB Current term Last term Cash flow Cash flow Total Total Subsidiaries Operating from Operating from Net profit comprehensi Net profit comprehensi revenue operating revenue operating ve income ve income activities activities Jinghai 2,039,554,63 24,957,651.0 24,957,651.0 413,666,161. 1,893,497,35 308,822,089. 308,822,089. 908,604,845. Power 8.00 0 0 00 6.00 00 00 00 Zhanjiang 788,546,128. 54,502,661.0 54,502,661.0 179,237,568. 712,964,181. 114,463,937. 114,463,937. 221,511,879. Power 00 0 0 00 00 00 00 00 Zhongyue 939,029,047. -29,982,353.0 -29,982,353.0 21,565,511.0 579,021,644. -20,634,926.0 -20,634,926.0 220,510,244. Energy 00 0 0 0 00 0 0 00 Pinghai 1,648,628,42 248,858,396. 248,858,396. 545,126,473. 1,071,592,03 217,878,039. 217,878,039. 587,380,149. Power plant 3.00 00 00 00 7.00 00 00 00 Red Bay 1,859,528,65 82,409,392.0 82,409,392.0 444,425,499. 1,482,420,96 214,574,280. 214,574,280. 996,511,695. 153 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 4.00 0 0 00 5.00 00 00 00 Other notes (4) Significant restrictions of using enterprise group assets and pay off enterprise group debt (5) Provide financial support or other support for structure entities incorporate into the scope of Other notes 2. The transaction of the Company with its owner’s equity share changed but still controlling the subsidiary (1) Note to owner’s equity share changed in subsidiary (2) The transaction’s influence to equity of minority shareholders and attributable to the owner's equity of the parent company In RMB Other notes 3. Equity in joint venture arrangement or associated enterprise (1) Significant joint venture arrangement or associated enterprise Name of Main Places of Registration Nature of Shareholding Ratio (%) Obtaining Subsidiary Operation Place Business direct indirect Method Joint ventures: Industry Fuel Guangzhou Guangzhou Fuel trade 50.00% Equity method Associates : Yudean Finance Guangzhou Guangzhou Finance 25.00% Equity method Shanxi Yudean Taiyuan Taiyuan Coal investment 40.00% Equity method Enerty Taishan Power Taishan Taishan Electric 20.00% Equity method Generation Yudean Insurance Guangzhou Guangzhou Insurance 49.00% Equity method Notes to holding proportion of joint venture or associated enterprise different from voting proportion: Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting rights but does not have a significant impact: (2)Main financial information of Significant joint venture In RMB Amount of current period Amount of previous period Industry Fuel Industry Fuel Current assets 3,118,023,480.00 2,795,941,710.00 Including :Cash and cash equivalent 1,018,624,296.00 765,618,880.00 Non-current assets 70,788,920.00 243,947,673.00 Total of assets 3,188,812,400.00 3,039,889,383.00 154 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Current liabilities 2,240,285,797.00 1,870,177,206.00 Total liabilities 2,240,285,797.00 1,870,177,206.00 Attributable to shareholders of the parent 948,526,603.00 1,169,712,177.00 company Share of net assets calculated by stake 474,263,302.00 584,856,088.00 --Other -614,728.00 -614,728.00 Book value of equity investment in joint 473,648,574.00 584,241,360.00 venture Business income 9,762,707,487.00 5,301,238,839.00 Financial expenses -5,148,310.00 -11,516,927.00 Income tax 23,646,185.00 23,172,199.00 Net profit 70,938,555.00 68,086,681.00 Total comprehensive income 70,938,555.00 68,086,681.00 Dividends received from the joint venture 59,231,115.00 79,989,336.00 this year Other notes (3) Main financial information of significant associated enterprise In RMB Closing balance/This period Opening balance/Last period Taishan Power Taishan Power Yudean Finance Shanxi Enerty Yudean Finance Shanxi Enerty Generation Generation Current assets 5,698,154,959.00 65,354,498.00 1,429,416,580.00 5,211,498,322.00 104,203,352.00 1,442,926,060.00 Non-current 12,456,857,100.00 2,897,157,163.00 10,885,624,671.00 11,831,239,639.00 2,624,640,590.00 13,558,011,862.00 assets Total of assets 18,155,012,059.00 2,962,511,661.00 12,315,041,251.00 17,042,737,961.00 2,728,843,942.00 15,000,937,922.00 Current 15,522,167,101.00 73,562,058.00 4,680,241,099.00 14,425,370,556.00 232,860,464.00 5,147,444,203.00 liabilities Non-current 150,000,000.00 liabilities Total liabilities 15,522,167,101.00 223,562,058.00 4,680,241,099.00 14,425,370,556.00 232,860,464.00 5,147,444,203.00 Minority shareholder 1,039,584.00 Equity Attributable to shareholders 2,632,844,958.00 2,738,949,603.00 7,634,800,153.00 2,617,367,405.00 2,495,983,478.00 9,852,454,135.00 of the parent company 155 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Share of net assets 658,211,240.00 1,095,579,841.00 1,526,960,031.00 654,341,853.00 998,393,391.00 1,970,490,827.00 calculated by stake --Goodwill 13,325,000.00 13,325,000.00 Book value of equity 671,536,240.00 1,095,579,841.00 1,526,960,031.00 667,666,853.00 998,393,391.00 1,970,490,827.00 investment in associates Business 288,014,924.00 558,089.00 3,240,744,080.00 297,690,340.00 563,903.00 2,706,581,671.00 income Net profit 184,657,686.00 262,966,125.00 315,111,648.00 174,374,625.00 21,886,301.00 584,920,161.00 Other comprehensive 184,657,686.00 262,966,125.00 315,111,648.00 income Total comprehensive 184,657,686.00 262,966,125.00 315,111,648.00 174,374,625.00 21,886,301.00 584,920,161.00 income Dividends received from the 42,295,033.00 8,000,000.00 59,406,856.00 associated enterprise this year Other notes (4) Summary financial information of insignificant joint venture or associated enterprise In RMB Amount of current period Amount of previous period Joint venture: -- -- The total number of the following -- -- Associated enterprise: -- -- Total investment book value 1,343,539,880.00 1,211,845,318.00 The total number of the following -- -- --Net profit -6,772,948.00 -59,965,371.00 Other comprehensive income 970,838.00 Total comprehensive income -6,772,948.00 -58,994,533.00 Other notes (5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer funds to the Company 156 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 (6) The excess loss of joint venture or associated enterprise In RMB The cumulative recognized The derecognized losses or the The noncumulative Name losses in previous share of net profit in reporting unrecognized losses in reporting accumulatively derecognied period period Other notes (7) The unrecognized commitment related to joint venture investment (8) Contingent liabilities related to joint venture or associated enterprise investment 4. Significant common operation Main operating place Proportion/share portion Name Registration place Business nature Registration place Directly Indirectly Note to holding proportion or share portion in common operation different from voting proportion: Basis of common operation as a single entity, classify as common operation Other notes 5. Equity of structure entity not including in the scope of consolidated financial statements Related notes to structure entity not including in the scope of consolidated financial statements 6.Other X.Risk related to financial nstruments The Group has exposure to the following risks from its use of financial instruments in the normal course of the Group‘s operations, which mainly include: Credit risk, Liquidity risk, Interest rate risk and Foreign exchange risk.This note presents information about the Group’s exposure to each of the above risks and their sources and changes during the year, the Group’s objectives, policies and processes for measuring and managing risks and their changes during the year. The Group aims to seek the appropriate balance between the risks and benefits from its use of financial instruments and to mitigate the adverse effects that the risks of financial instruments have on the Group‘s financial performance. Based on such objectives, the Group‘s risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group‘s activities. (1) Credit risk Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Group’s credit risk is primarily attributable to cash at bank and receivables. Exposure to these credit risks are monitored by management on an ongoing basis. The cash at bank of the Group is mainly held with well-known financial institutions in China, which have no any default records of paying deposits and interests. Management does not foresee any significant credit risks from these deposits and does not expect that these financial institutions may default and cause losses to the Group. Accounts receivable of the Group are mainly electricity payment due from GPGC, entrusted loans due from related parties. Management continues to perform credit assessment on the debtors’ financial position, but usually does not require collaterals for outstanding debts. In view of the liquidity of outstanding amounts, management had provision for corresponding bad debts and the actual losses on bad debts were within their expectation. Based on the past record of debtors and the positive recovery of accounts receivable, management thinks the Group has no significant credit risk over accounts receivable. 157 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 As at 30 June 2017, the debtors that are past due but not impaired based on individual or collective assessment are not significant. (2) Liquidity risk Liquidity risk is the risk that an enterprise will encounter difficulty in meeting obligations associated with financial liabilities. the Group’s current liabilities was more than its current assets of RMB 6.528 billion(December 31, 2016:RMB 5.712 billion), implying the Group is exposed to certain liquidity risks. Management ensures the liquidity risk is within a controllable range with the following measures: (a) Use the existing financing credit to repay the Group’s liabilities and fulfil the requirement of the Group’s capital expenditure; (b) Expedite the approval procedure of relevant documents to secure credit line subject to the approval of the construction of new units; (c) Obtain stable cash inflow from operating activities; (d) Closely monitor and control the payment amount and time required for the construction of new power station and the purchase of new generators. (3) Interest rate risk The Group has no other significant interest-bearing assets except for cash at banks and entrusted loans. The Group earns interest income from cash at banks at floating rates published by the banks from time to time. Any change in the interest rate published by the banks is not considered to have significant impact to the Group. The Group’s interest rate risk mainly arises from long-term interest-bearing borrowings, including long-term bank borrowings, corporate bonds issued and finance lease payable.Interest-bearing financial instruments at fixed rates and variable rates expose the Group to fair value interest rate risk and cash flow interest risk, respectively. The Group determines the appropriate weightings of the fixed and floating rate interest-bearing instruments based on the current market conditions and performs regular reviews and monitoring to achieve an appropriate mix of fixed and floating rate exposure. The Group does not enter into financial derivatives to hedge interest rate risk. (4) Foreign exchange risk Exchange risks that the Group is exposed to are generally related to USD, EUR and HKD. The Group settles all major business transactions in RMB except for capital contribution from foreign investors, income from certified emission reduction, long-term loans and dividends to foreign investors. RMB is still not able to exchange into other currencies because of the restrictions announced by the Chinese government on RMB exchange rate and foreign currency control. Therefore, all monetary assets and liabilities denominated in foreign currencies are exposed to any fluctuation in exchange rates. XI. Disclosure of fair value 1. Ending fair value of the assets and liabiliies measured by fair value In RMB Ending fair value Items First-order Second-order Third-order Total 1. Sustaining measured by -- -- -- -- fair value (1)Available-for –sale 442,301,175.00 442,301,175.00 financial assets 158 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 (2)Investment interest 442,301,175.00 442,301,175.00 tools II. Non –persistent -- -- -- -- measure 2.Recognized basis for the market price sustaining and non-persistent measured by fair value oon first-order For the available-for-sale financial assets in an active market, their fair values are measured at the quoted price at balance sheet date. 3. Valuation technique and qualitative and quantitative information on major parameters for the fair value measure sustaining and non-persistent on second-order Except for available-for-sale financial assets that measured at historical cost not being able to gain fair value, the carrying amounts of financial assets and financial liabilities not measured at fair value are not materially different from their fair values. 4. Valuation technique adopted and nature and amount determination of important parameters for consistent and inconsistent fair value measurement items at level 3 5. Sensitiveness analysis on unobservable parameters and adjustment information between opening and closing book value of consistent fair value measurement items at level 3 6. Explain the reason for conversion and the policy governing when the conversion happens if conversion happens among consistent fair value measurement items at different levels 7. Changes in the valuation technique in the current period and the reason for change 8. Fair value of financial assets and liabilities not measured at fair value 9.Other XII.Related parties and related-party transactions 1. Parent company information of the enterprise Vote right ratio of Share ratio of parent Parent company parent company Registration place Nature Registered capital company against the name against the company(%) company(%) Power plant Guangdong Yudean operating,electricity Guangzhou 23,000,000,000 67.39% 67.39% Group assets management, electricity generation Explanation on parent company of the enterprise On August 8, 2001, Guangdong Provincial Government had taken the lead in the implementation of the reform of electric power system. Guangdong Electric power Group was established by inheriting the electricity generation business of Guangdong electric Power Group Company and its registered capital is RMB 23 billion, with 76% stake held by Guangdong Provincial People's Government and 24% stake held by China Hua Neng Group, owning more than 13,000 staff now, and the company is the strongest 159 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Ultimate controller os the Company is Guangdong Provincial People’s Govemment state owned assets supervision and Administration Commission. Notes: 2.Subsidiary of the Enterprise See to Notes IX.1. 3.Cooperative enterprise and joint venture See Notes IX.2. Other cooperative enterprise and joint venture that have related transaction with the Company in the Period or occurred in pervious period: Name Relationship Industry Fuel Joint venture Taishan Electric Associate Shanxi Yudean Energy Associate Guangdong Yudean Finance Associate Yudean West Investment Associate Guangdong Yudean Shipping Associate Weixin Yuntou Yudean Zhaxi Associate Huaneng Shantou Wind Power Associate Yangshan Jiangkeng Hydropower station Associate Yangshan Zhongxinkeng Power Associate Other notes 4.Other related party Other related party Relationship with the Enterprisse Maoming Thermal power Plant Controlled by Yudean Shaoguan Power Generation plant Controlled by Yudean Shaoguan D plant Controlled by Yudean Shajiao C plant Controlled by Yudean Yudean Xinfengjiang Controlled by Yudean Zhuhai Power Generation Plant Controlled by Yudean Zhuhai Jinwan Controlled by Yudean Biomass Electric Power Controlled by Yudean Yudean PM Controlled by Yudean 160 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Yueyang Power Generation Controlled by Yudean Yudean Information Technology Controlled by Yudean Yudean Property Controlled by Yudean Zhuhai Hengda Energy Controlled by Yudean Yudean Environmental protection Controlled by Yudean Shenzhen Tianxin Controlled by Yudean Huangpu Electric Power Engineering Controlled by Yudean Huangpu Yuehua Human Resources Controlled by Yudean Yudean Menghua New Energy Controlled by Yudean Chaokang Investment Controlled by Yudean Yuehua Power Generation Controlled by Yudean Hailingwan LNG Controlled by Yudean Lianzhou Electric Plant Controlled by Yudean Yunhe Power Generation Controlled by Yudean Yuelong Power Generation Controlled by Yudean Zhongshan Thermal power Controlled by Yudean Port of Yangjiang Controlled by Yudean Yudean Natural gas Controlled by Yudean Guanghe Electric Controlled by Yudean Haidian Shippping Controlled by Yudean Other notes 5. Related transactions. (1)Related transactions on purchasing goods and receiving services Acquisition of goods and reception of labor service In RMB Whether over the Related party Content Current amount Approval trading limit Last amount trading limit(Y/N) Fuel Company Fuel purchase 6,815,959,245.00 No 2,921,964,877.00 Yudean Natural gas Fuel purchase 99,369,938.00 No 0.00 Yudean Environment Material purchase 57,013,375.00 No 37,885,800.00 Protection Acceptance of Yudean Shipping 12,606,792.00 No 11,287,925.00 tugboat services 161 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Acceptance of Yudean Property management 12,828,482.00 No 13,161,382.00 Management services Guangzhou Huangpu Electric Maintenance 2,987,898.00 No 2,823,555.00 Power Engineering services Co., Ltd. Acceptance of Yangjiang Port 3,327,803.00 No 2,324,268.00 tugboat services Yudean Property Leasing service 32,966.00 No 1,071,805.00 Acceptance of Yudean Information management 454,427.00 No 1,202,279.00 services Huangpu Yuehua Human receivaces 1,438,680.00 No 1,481,840.00 Yudean Yunhe Electric purchase 777,641.00 No 0.00 Power Generation Yuuhua Power Electric purchase 20,367,239.00 No 0.00 Generation Zhuhai Jinwan Electric purchase 14,669,222.00 No 0.00 Power Generation Guanghe Electric Electric purchase 10,249,291.00 No 0.00 Power Yuelong Power Electric purchase 3,699,971.00 No 0.00 Generation Sales of goods and services In RMB Related parties Content Occurred current term Occurred in previous term Yudean Environment Protection Sale of Material 34,746,789.00 32,839,559.53 Providing maintenance Shajiao C 1,113,144.00 12,187,615.41 services Zhuhai Jinwan Power Providing maintenance 126,904.00 1,229,312.10 Generation Co., Ltd. services Yudean Yunhe Power Providing maintenance 9,463,005.00 0.00 Generation services Guangdong Haidian Shipping Service 0.00 2,912.82 Co., Ltd. Notes 162 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 (2)Related trusteeship or contracting Related trusteeship or contracting in which the Company is the undertake In RMB Gains from the Name of the Name of the Asset situation of Start date Terminating date Pricing basis deal in report employer undertaker the undertaker period Notes (3) Information of related lease The company eas lessor: In RMB The lease income confirmed in The lease income confirmed in Name of lessee Category of leased assets this year last year The Company was lessee: In RMB The lease income confirmed in Lessor Category of leased assets Category of leased assets this year Yudean Property Property Leasing 32,966.00 2,171,974.00 Maoming Thermal power plant Property Leasing 74,003.00 51,802.00 Notes (4)Status of related party guarantee As a guarantor for the company In RMB Execution accomplished Guarantor Guarantee amount Start date End date or not As a secured party for the company In RMB Execution accomplished Guarantor Guarantee amount Start date End date or not Statement on related guarantees (5) Inter-bank lending of capital of related parties: In RMB Related party Amount borrowed and Initial date Due date Notes 163 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 loaned Borrowed Guangdong Yudean 200,000,000.00 March 6, 2017 March 5,2018 Finance Co., Ltd. Guangdong Yudean 100,000,000.00 April 25,2017 April 24,2018 Finance Co., Ltd. Guangdong Yudean 100,000,000.00 April 28, 2017 April 27,2018 Finance Co., Ltd. Guangdong Yudean 100,000,000.00 May 2,2017 May 1,2018 Finance Co., Ltd. Guangdong Yudean 300,000,000.00 May 2,2017 May 1,2018 Finance Co., Ltd. Guangdong Yudean 759,860,000.00 May 20,2017 May 19,2020 Finance Co., Ltd. Guangdong Yudean 100,000,000.00 January 1,2017 June 30,2017 Finance Co., Ltd. Guangdong Yudean 100,000,000.00 Janaury 1,2017 June 8,2017 Finance Co., Ltd. Guangdong Yudean 100,000,000.00 June 8,2017 June 30,2017 Finance Co., Ltd. Guangdong Yudean 100,000,000.00 June 23,2017 June 30,2017 Finance Co., Ltd. Guangdong Yudean 50,000,000.00 January 1,2017 June 27,2017 Finance Co., Ltd. Guangdong Yudean 50,000,000.00 June 28,2017 June 30,2017 Finance Co., Ltd. Guangdong Yudean 50,000,000.00 January 1,2017 June 30,2017 Finance Co., Ltd. Guangdong Yudean 50,000,000.00 January 1,2017 June 30,2017 Finance Co., Ltd. Guangdong Yudean 80,000,000.00 January 1,2017 June 30,2017 Finance Co., Ltd. Guangdong Yudean 100,000,000.00 January 1,2017 June 30,2017 Finance Co., Ltd. Guangdong Yudean 140,000,000.00 January 1,2017 June 30,2017 Finance Co., Ltd. Guangdong Yudean 10,000,000.00 January 1,2017 April 17,2017 Finance Co., Ltd. 164 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Guangdong Yudean 183,102,299.00 December 25,2013 December 24,2028 Finance Co., Ltd. Guangdong Yudean 430,000,000.00 December 6,2007 December 5,2025 Finance Co., Ltd. Guangdong Yudean 100,000,000.00 December 19,2016 February 9,2017 Finance Co., Ltd. Guangdong Yudean 100,000,000.00 December 19,2016 February 27,2017 Finance Co., Ltd. Guangdong Yudean 100,000,000.00 December 19,2016 March 1,2017 Finance Co., Ltd. Guangdong Yudean 50,000,000.00 November 16,2016 April 27,2017 Finance Co., Ltd. Guangdong Yudean 100,000,000.00 December 19,2016 April 13,2017 Finance Co., Ltd. Guangdong Yudean 50,000,000.00 March 20,2017 May 9,2017 Finance Co., Ltd. Guangdong Yudean 200,000,000.00 February 21, 2017 August 20,2017 Finance Co., Ltd. Guangdong Yudean 200,000,000.00 April 26,2017 April 25,2018 Finance Co., Ltd. Guangdong Yudean 280,000,000.00 June 16,2017 June 15,2018 Finance Co., Ltd. Guangdong Yudean 100,000,000.00 June 22,2017 June 21,2018 Finance Co., Ltd. Guangdong Yudean 52,900,000.00 December 21,2016 August 22,2022 Finance Co., Ltd. Guangdong Yudean 250,000,000.00 July 13,2016 July 12,2017 Finance Co., Ltd. Guangdong Yudean 200,000,000.00 September 28,2016 September 27,2017 Finance Co., Ltd. Guangdong Yudean 100,000,000.00 December 26,2016 December 25,2017 Finance Co., Ltd. Guangdong Yudean 100,000,000.00 March 29,2017 March 28,2018 Finance Co., Ltd. Guangdong Yudean 200,000,000.00 April 17,2017 April 16,2018 Finance Co., Ltd. Guangdong Yudean 100,000,000.00 June 13,2017 June 12,2018 Finance Co., Ltd. 165 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Guangdong Yudean 150,000,000.00 June 21,2017 June 20,2018 Finance Co., Ltd. Guangdong Yudean 100,000,000.00 June 28,2017 June 27,2018 Finance Co., Ltd. Guangdong Yudean 8,670,000.00 March 24,2014 March 24,2019 Finance Co., Ltd. Guangdong Yudean 8,540,000.00 April 24,2014 April 24,2019 Finance Co., Ltd. Guangdong Yudean 34,250,000.00 June 24,2014 June 23,2019 Finance Co., Ltd. Guangdong Yudean 27,940,000.00 July 19,2014 July 19,2019 Finance Co., Ltd. Guangdong Yudean 17,090,000.00 December 19,2016 December 18,2021 Finance Co., Ltd. Guangdong Yudean 37,720,000.00 June 28,2017 June 27,2022 Finance Co., Ltd. Guangdong Yudean 14,170,000.00 November 12,2014 October 27,2029 Finance Co., Ltd. Guangdong Yudean 75,000,000.00 December 10,2014 October 27,2029 Finance Co., Ltd. Guangdong Yudean 100,000,000.00 February 4,2015 October 27,2029 Finance Co., Ltd. Guangdong Yudean 45,000,000.00 June 17,2015 October 27,2029 Finance Co., Ltd. Guangdong Yudean 25,000,000.00 July 23,2015 October 27,2029 Finance Co., Ltd. Guangdong Yudean 24,000,000.00 September 15,2015 October 27,2029 Finance Co., Ltd. Guangdong Yudean 30,000,000.00 September 28,2015 October 27,2029 Finance Co., Ltd. Guangdong Yudean 19,000,000.00 October 13,2015 October 27,2029 Finance Co., Ltd. Guangdong Yudean 144,500,000.00 December 16,2015 October 27,2029 Finance Co., Ltd. Guangdong Yudean 100,000,000.00 June 19,2017 June 18,2020 Finance Co., Ltd. Guangdong Yudean 82,237,213.54 November 9,2016 November 8,2017 Finance Co., Ltd. 166 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Guangdong Yudean 68,446,299.94 November 23,2016 November 22,2017 Finance Co., Ltd. Guangdong Yudean 70,869,200.00 June 29,2017 September 28,2017 Finance Co., Ltd. Guangdong Yudean 10,000,000.00 January 1,2017 May 18,2017 Finance Co., Ltd. Guangdong Yudean 175,000,000.00 January 1,2017 May 18,2017 Finance Co., Ltd. Guangdong Yudean 10,000,000.00 February 22,2017 February 22,2018 Finance Co., Ltd. Guangdong Yudean 10,000,000.00 January 19,2017 January 19,2018 Finance Co., Ltd. Guangdong Yudean 10,000,000.00 January 23,2017 January 23,2018 Finance Co., Ltd. Guangdong Yudean 10,000,000.00 November 24,2016 November 24,2017 Finance Co., Ltd. Guangdong Yudean 10,000,000.00 September 26,2016 September 26,2017 Finance Co., Ltd. Guangdong Yudean 14,000,000.00 August 22,2012 August 15,2031 Finance Co., Ltd. Guangdong Yudean 5,000,000.00 March 6,2017 March 5,2018 Finance Co., Ltd. Guangdong Yudean 5,000,000.00 March 2,2017 March 1,2018 Finance Co., Ltd. Guangdong Yudean 5,000,000.00 March 8,2017 March 7,2018 Finance Co., Ltd. Guangdong Yudean 5,000,000.00 March 10,2017 March 9,2018 Finance Co., Ltd. Guangdong Yudean 15,000,000.00 July 19,2016 July 18,2017 Finance Co., Ltd. Guangdong Yudean 5,000,000.00 July 19,2016 July 18,2017 Finance Co., Ltd. Guangdong Yudean 10,000,000.00 June 8,2017 June 7,2018 Finance Co., Ltd. Guangdong Yudean 5,000,000.00 June 9,2017 June 8,2018 Finance Co., Ltd. Guangdong Yudean 5,000,000.00 July 19,2016 July 18,2017 Finance Co., Ltd. 167 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Guangdong Yudean 5,000,000.00 July 12,2017 June 11,2018 Finance Co., Ltd. Guangdong Yudean 10,000,000.00 July 29,2016 July 28,2017 Finance Co., Ltd. Guangdong Yudean 10,000,000.00 June 13,2017 June 12,2018 Finance Co., Ltd. Guangdong Yudean August 5,2016 10,000,000.00 August 4,2017 Finance Co., Ltd. Guangdong Yudean 20,000,000.00 September 2,2016 September 1,2017 Finance Co., Ltd. Guangdong Yudean 25,000,000.00 September 8,2016 September 7,2017 Finance Co., Ltd. Guangdong Yudean 5,000,000.00 December 8,2016 December 7,2017 Finance Co., Ltd. Guangdong Yudean 10,000,000.00 May 17,2017 May 16,2018 Finance Co., Ltd. Guangdong Yudean 10,000,000.00 May 18,2017 May 17,2018 Finance Co., Ltd. Guangdong Yudean 5,000,000.00 May 19,2017 May 18,2018 Finance Co., Ltd. Guangdong Yudean 10,000,000.00 May 24,2017 May 23,2018 Finance Co., Ltd. Guangdong Yudean 5,000,000.00 May 25,2017 May 24,2018 Finance Co., Ltd. Guangdong Yudean September 25,000,000.00 September 7,2017 Finance Co., Ltd. 8,2016 Guangdong Yudean 10,000,000.00 September 19,2016 September 18,2017 Finance Co., Ltd. Guangdong Yudean 35,000,000.00 October 11,2016 Finance Co., Ltd. October 10,2017 Guangdong Yudean 40,000,000.00 October 20,2016 October 19,2017 Finance Co., Ltd. Guangdong Yudean 20,000,000.00 November 7,2016 November 6,2017 Finance Co., Ltd. Guangdong Yudean 10,000,000.00 November 10,2016 November 9,2017 Finance Co., Ltd. Guangdong Yudean 15,000,000.00 November 17,2016 November 16,2017 Finance Co., Ltd. 168 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Guangdong Yudean 20,000,000.00 December 9,2016 December 8,2017 Finance Co., Ltd. Guangdong Yudean 10,000,000.00 December 20,2016 December 19,2017 Finance Co., Ltd. Guangdong Yudean 10,000,000.00 January 12,2017 January 11,2018 Finance Co., Ltd. Guangdong Yudean 10,000,000.00 January 19,2017 January 18,2018 Finance Co., Ltd. Guangdong Yudean 10,000,000.00 March 9,2017 March 8,2018 Finance Co., Ltd. Guangdong Yudean 10,000,000.00 March 16,2017 March 15,2018 Finance Co., Ltd. Guangdong Yudean 20,000,000.00 April 7,2017 April 6,2018 Finance Co., Ltd. Guangdong Yudean 20,000,000.00 April 13,2017 April 12,2018 Finance Co., Ltd. Guangdong Yudean 55,000,000.00 April 20,2017 April 19,2018 Finance Co., Ltd. Guangdong Yudean 50,000,000.00 May 17,2017 May 16,2018 Finance Co., Ltd. Guangdong Yudean 40,000,000.00 June 15,2017 June 14,2018 Finance Co., Ltd. Guangdong Yudean 40,000,000.00 June 28,2017 June 27,2018 Finance Co., Ltd. Guangdong Yudean 40,000,000.00 February 28,2017 February 27,2018 Finance Co., Ltd. Guangdong Yudean 280,000,000.00 May 19,2017 May 18,2018 Finance Co., Ltd. Guangdong Yudean 320,000,000.00 June 14,2017 June 13,2018 Finance Co., Ltd. Guangdong Yudean 80,000,000.00 June 20,2017 June 19,2018 Finance Co., Ltd. Guangdong Yudean 200,000,000.00 December 24,2016 December 23,2017 Finance Co., Ltd. Guangdong Yudean 50,000,000.00 August 22,2016 August 21,2017 Finance Co., Ltd. Guangdong Yudean 10,000,000.00 September 26,2016 September 25,2017 Finance Co., Ltd. 169 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Guangdong Yudean 30,000,000.00 October 10,2016 October 9,2017 Finance Co., Ltd. Guangdong Yudean 10,000,000.00 December 6,2016 December 5,2017 Finance Co., Ltd. Guangdong Yudean 60,000,000.00 December 27,2016 December 26,2017 Finance Co., Ltd. Guangdong Yudean 20,000,000.00 January 9,2017 January 8,2018 Finance Co., Ltd. Guangdong Yudean 60,000,000.00 February 7,2017 February 6,2018 Finance Co., Ltd. Guangdong Yudean 80,000,000.00 March 7,2017 March 6,2018 Finance Co., Ltd. Guangdong Yudean 10,000,000.00 March 21,2017 March 20,2018 Finance Co., Ltd. Guangdong Yudean 30,000,000.00 April 5,2017 April 4,2018 Finance Co., Ltd. Guangdong Yudean 20,000,000.00 May 17,2017 May 16,2018 Finance Co., Ltd. Guangdong Yudean 110,000,000.00 June 2,2017 June 1,2018 Finance Co., Ltd. Guangdong Yudean 20,000,000.00 June 12,2017 June 11,2018 Finance Co., Ltd. Guangdong Yudean 20,000,000.00 August 15,2016 August 14,2017 Finance Co., Ltd. Guangdong Yudean 5,000,000.00 August 22,2016 August 21,2017 Finance Co., Ltd. Guangdong Yudean 89,300,000.00 June 23,2017 June 22,2032 Finance Co., Ltd. Guangdong Yudean 70,000,000.00 February 15,2016 February 9,2017 Finance Co., Ltd. Guangdong Yudean 35,000,000.00 March 14,2016 March 10,2017 Finance Co., Ltd. Guangdong Yudean 20,000,000.00 March 21,2016 March 10,2017 Finance Co., Ltd. Guangdong Yudean 30,000,000.00 July 12,2016 April 21,2017 Finance Co., Ltd. Guangdong Yudean 20,000,000.00 August 15, 2016 April 21,2017 Finance Co., Ltd. 170 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Guangdong Yudean 40,000,000.00 August 22,2016 May 22,2017 Finance Co., Ltd. Loaned (6) Related party asset transfer and debt restructuring In RMB Related party Amount borrowed and loaned Amount of current period Amount of previous period (7) Rewards for the key management personnel In RMB Items Amount of current period Amount of previous period Rewards for the key management 2,904,056.00 3,128,044.00 personnel (8)Other related transactions (a)Allocation of common expenses The Company’s branches Shajiao A and Shajiao C agreed to share common expenses based on their agreed allocation basis. In June 30, 2017, the common expenses received by the Group from Shajiao C was RMB1,309,960.00.( he Company’s branches Shajiao A and Shajiao C agreed to share common expenses based on their agreed allocation basis. In June 30, 2016 the common expenses received by the Group from Shajiao C was RMB1,498,424.06.) (b) Interest income Items June 30,2017 June 30,2016 Deposit interest of Yudean Finance Company 27,050,894.00 28,900,684.00 Proportion(%) 82.9% 87.04% 171 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 (c)Interest expense June 30, 2017 June 30, 2016 Loan interest paid to Yudean Finance 138,471,921.00 133,064,560.78 Proprotion(%) 20.71% 18.28% (d)Joiont investment Percentage of equity Attributable to Yudean Proportion % Yudean Finance 65% Fuel Company 50% Shanxi Enerty 60% West Investment 35% Yudean Shipping 45% Yudean Insurnce 49% 6. Payables and receivables of the related party (1)Receivables In RMB Amount at year end Amount at year begiing Name Related party Balance of Book Bad debt provision Balance of Book Bad debt provision Guangdong Yudean Monetary fund 4,074,044,815.00 4,799,004,094.00 Finance Co., Ltd. Account receivable Shajiao C 8,409,298.00 26,500,702.00 Guangdong Account receivable 2,599,915.00 ZhuhaiJinwan Power Guangdong Yudean Account receivable Group Co., 279,747.00 Ltd.Zhuhai Power 172 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Biomass Electric Account receivable Power Account receivable Yuelong Power 2,502,752.00 Account receivable Yunhe Power 667,865.00 3,511,430.00 Guangdong Yudean Other receivable Environmental 42,379,567.00 66,823,439.00 protection Other receivable Yudean PI 1,274,519.00 1,134,699.00 Other receivable Shajiao C 1,615,955.00 305,995.00 Other receivable Yudean PM 413,282.00 367,626.00 Yudean Menghua Other receivable 16,320.00 16,320.00 New Energy Guangdong Yudean Interest receivable 20,790,253.00 16,640,918.00 Finance Co., Ltd. Prepayment Industry fuel 658,185,449.00 911,360,683.00 Prepayment Yudean Natural gas 30,366.00 Yudean Prepayment InformationTechnol 177,925.00 ogy (2)Payables In RMB Name Related party Amount at year end Amount at year beginning Account payable Guangdong Fuel Company 1,726,470,356.00 2,172,819,322.00 Account payable Manming Thermal power 88,805,726.00 89,461,265.00 Guangdong Yudean Account payable 50,502,082.00 50,170,970.00 Environmental Protection Guangdong Yudean Account payable 152,200.00 702,577.00 InformationTechnology Account payable Guangdong Yudean Shipping 1,220,000.00 3,660,000.00 Account payable Guangzhou Huangpu Power 3,311,630.00 91,283.00 Account payable Yuelong Power Generation 34,071.00 66,818.00 Account payable Guangdong Yudean Property 1,003,729.00 0.00 Account payable Zhuhai Hengda Enerty 37,183.00 0.00 Other payable haoguan Power 7,747,887.00 10,974,060.00 Other payable Guangzhou Huangpu Power 1,664,174.00 7,866,983.00 173 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Other payable Guangdong Yudean Property 619,603.00 4,864,696.00 Other payable Manming Thermal power 4,000,000.00 4,000,000.00 Other payable Guangdong Yudean Shipping 920,000.00 3,660,000.00 Huangpu Yuehua Human Other payable 5,863,867.00 2,209,375.00 Resource Guangdong Yudean Other payable 1,084,284.00 1,084,284.00 Environmental Protection Other payable Yudean Real estate 0.00 1,051,099.00 Guangdong Yudean Information Other payable 113,200.00 112,500.00 Technology Other payable Shenzhen Tianxin 3,070,000.00 70,000.00 Other payable Zhuhai Hengda Enerty 0.00 37,183.00 Guangdong Yudean Finance Interest payable 9,004,936.00 67,537,822.00 Co., Ltd. Bill payable Fuel Company 0.00 50,000,000.00 Guangdong Yudean Finance Bill payable 592,648,479.00 847,458,278.00 Co., Ltd. Guangdong Yudean Finance Short-term loan 5,680,000,000.00 3,710,000,000.00 Co., Ltd. Non-current liability due in 1 Guangdong Yudean Finance 0.00 267,331,709.00 year Co., Ltd. Guangdong Yudean Finance Long-term loan 2,430,704,019.00 2,040,222,573.00 Co., Ltd. 7. Related party commitment 8.Other XIII. Stock payment 1. The Stock payment overall situation 174 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 □ Applicable √ Not applicable 2. The Stock payment settled by equity □ Applicable √ Not applicable 3. The Stock payment settled by cash □ Applicable √ Not applicable 4. Modification and termination of the stock payment 5.Other XIV. Commitments 1.Importance commitment events Important commitments of existence of balance sheet date (a) The Seventh Session of the Board passed the resolution of “Investment in Guishan Offshore Wind Power Project” during its first meeting in 2012 on 19 January, pursuant to which the Company will invest in the construction of South Wind Power based on its 10% shareholding proportion and take part in Guishan Offshore Wind Power Project. The registered capital is tentatively set at RMB 900,000,000. The Company is required to invest RMB 90,000,000 as 10% of the total capital of the project. As at 30 June 2017, the Company injected RMB 70,000,000 to South Wind Power. (b) The Seventh Session of the Board passed the resolution of “Establishment of Guangdong Yudean Dabu Electric Ltd” during its 11th meeting on 29 October 2012, pursuant to which the Company will establish Dabu Electric as its wholly-owned subsidiary. The Company is required to inject RMB 1,104,000,000 (20% of the total project investment RMB 5,520,000,000) in batches based on the construction progress. As at 30 June 2017, the Company invested RMB 1,000,000,000 to Dabu Electric. (c) The Seventh Session of the Board passed the resolution of “Capital Increase in Guangdong Yudean Bohe Coal Power Co., Ltd” during its 11th meeting on 29 October 2012, pursuant to which the Company agreed to inject RMB 854,570,000 in cash to Bohe Coal for the construction of terminal project. The injection would be made in batches based on the capital requirement of the project. On 22 August 2013, the Seventh Session of the Board passed the resolution of “Investment in Guangdong Maoming Bohe Electric power generation project” during its 15th meeting, pursuant to which the Company agreed to inject RMB 1,375,000,000 to Bohe Coal for the construction of Bohe electric plant. The injection of the initial capital of Bohe Coal of RMB 285,000,000 was completed. The subsequent injection of RMB 1,090,000,000 will be made in batches based on the capital requirement of the project. The foresaid capital commitment is totaled at RMB 2,229,570,000. As at 30 June 2017, the Company injected RMB 2,100,000,000 to Bohe Coal. (d) The Sixth Session of the Board agreed to increase its capital in the Company’s associated company Shantou 175 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Wind Power for the construction of a wind power project in Nanao East Island during its eighth meeting on 29 June 2009. The Company agreed to inject RMB 35,000,000 to Shantou Wind Power based on its 25% shareholding proportion. The injection would be made in batches based on the construction progress. As at 30 June 2017, the Company injected RMB 12,470,000 to Shantou Wind Power. (e) The Sixth Session of the Board passed the resolution of “Capital Increase in Guangdong Yudean Jinghai Power Co., Ltd.” during its 11th meeting on 15 April 2010, pursuant to which the Company agreed to inject RMB 565,025,500 to its subsidiary Jinghai Power based on its 65% shareholding proportion. The Company’s proportion of shareholding in Jinghai Power remains unchanged following the completion of capital increase. As at 30 June 2017, the Company injected RMB 445,010,000 to Jinhai Power. (f) The Seventh Session of the Board passed the resolution of “Investment in Offshore Wind Power Project by Guangdong Yudean Zhanjiang Wind Power Generation Co., Ltd.” during its second meeting on 28 June 2011, pursuant to which the Company agreed to inject RMB 140,000,000 to its subsidiary Zhanjiang Wind Power for the investment in Xuwen offshore wind power project. The injection would be made in batches based on the actual progress of the project. As at 30 June 2017, the Company injected RMB 75,730,000 to Zhanjiang Wind Power. (g) The Board passed the resolution (vote & sign) of “Guangdong Yudean Zhanjiang Wind Power Generation Co., Ltd. to Establish Guangdong Yudean Leizhou Wind Power Co., Ltd.” on 9 January 2013, and as at the Eighth Session of the Board on 28 October 2014 the Board passed the resolution of “Capital Increase in Guangdoang Yudean Leizhou Wind Power Co., Ltd.”. Pursuant to which the Company established Leizhou Wind Power based on its 70% shareholding proportion of Zhanjiang Wind Power. The registered capital of Leizhou Wind Power does not exceed RMB 162,450,000 and is responsible for the development of Hongxinlou wind power project (49.5MW). The injections of the Company will not surpass RMB 106,718,700 and that of Zhanjiang Wind Power not more than RMB 162,450,000. Thereafter, the Board agreed on the RMB 80,800,000 capital injection to Leizhou Wind Power, after which will own 80% of Leizhou Wind Power’s shares (the amount of capital injection is recorded the price conversion of the asset valuation by competent authorities). As at 30 June 2017, the Company has made RMB 80,800,000 of direct capital injection while Zhanjiang Wind Power has already offered RMB 20,000,000. (h) The board meeting held on 20 July 2015 passed (vote and sign) the resolution of “Proposal on the Establishment of Guangdong Yudean Electricity Sale Co., Ltd.”. To seize the opportunity of power system reform, adapt to the market development and create new profits, the board agreed the Company to establish a wholly-owned company - Guangdong Yudean Electricity Sale Co., Ltd. with RMB 500,000,000 registered capital. Subsequent to the initial injection of RMB 200,000,000, the Company will inject the capital in batches based on the business development. As at 30 June 2017, the Company has made the capital injection of RMB 230,000,000. (i) The board meeting held on 20 July 2015 passed (vote and sign) the resolution of “Capital Increase in Guangdong Yudean Huadu Natural Gas Thermal Power Co., Ltd.”. To promote the subsequent development of natural gas thermal power project in Huadu, the board agreed the Company to increased capital of RMB 19,500,000 to Guangdong Yudean Huadu Natural Gas Thermal Power Co., Ltd. based on its 65% shareholding proportion. As at 30 June 2017, the Company has accomplished full capital contribution 176 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 (j) The Eighth Session of the Board passed the resolution of “Establishment of Guangdong Yudean Property Self-Insurance Co., Ltd.” during its 9th meeting on 12 November 2015, to enhance the Company’s capability of managing quantitative risks and insurance. The board agreed to establish Guangdong Yudean Property Self-Insurance Co., Ltd. with Yudean, the controlling shareholders, in which the Company contributed RMB147,000,000 and accounted for 49% of the equity. As at 30 June 2017, the Company has not made capital contribution. (k) The Eighth Session of the Board passed the resolution of “Establishment of Dagaoshan Wind Power Project Company in Dong Autonomous County of Tongdao in Hunan Province” during its 14th meeting on 28 October 2016. To propel the preliminary work of the Hunan Dagaoshan Wind Power project and develop and extend wind power in Hunan Province, the board agreed to establish solely-owned “Dagaoshan Wind Power Project Company” in charge of investment, development and construction of the Dagaoshan Wind Power project. The initial contribution of the registration capital tentatively set as RMB 10,000,000, and the remaining capital will be injected at proper time according to the approval situation of the project and the construction plan deliberated and approved by the board of directors. As at 30 June 2017, the Company has not made capital contribution. 2.Contingency (1)Significant contingency at banlance sheet date On June 30, 2017, the Company provided joint and several liability guarantee for bank borrowings of RMB 146,450,000 for Yunnan Baoshan binglangjiang Hydropower Development Co., Ltd., which is in process. On June 30, 2017, the Company provided joint liability guarantee for the investment of RMB15,755,290 in Zhanjiang Fengli. The bank loan of RMB 116,000,000 generated by the Company for Yuejiang Power was held by the Company Provide joint liability guarantee. (2)The Company have no significant contingency to disclose, also should be stated The was no significant contingency in the Company. 3.Other XIV. Post-balance-sheet events 1. Significant events had not adjusted In RMB Influence number to the Reason of unable to estimate Items Content financial position and operating influence number results 177 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 2. Profit distribution 3. Sales return 4.Notes of ohter significant events XVI. Other signifiant enents 1.The accounting errors correction in previous period (1)Retrospective restatement In RMB Name of the influenced report Content Processing program Cumulative impact items during comparison period (2)Prospective application Content Processing program Reason of adopting prospective application 2. Debt restructuring 3. Replacement of assets (1)Non-monetary assets exchange (2)Other assets replacement 4. Pension plan 5.Discontinuing operation In RMB Termination of the business profits Items Income Expense Total profits Income tax Net profit attributable of the parent company owner Other notes 6. Segment information (1) Recognition basis and accounting policies of reportable segment (2) The financial information of reportable segment 178 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 In RMB Parent Jinghai Huizhou Zhanjiang Zhongyue Partial Items Red Bay Other Total Company Power Pinghai Power Enerty offset Main 928,897,921 2,029,676,1 1,633,980,6 1,846,487,8 779,186,233 932,577,754 4,180,620,0 -30,183,644 12,301,242, Buinsess .00 13.00 61.00 95.00 .00 .00 54.00 .00 987.00 Income Main 885,653,373 1,826,542,9 1,214,359,9 1,625,969,8 713,303,288 892,944,054 3,994,186,4 -36,666,119 11,116,293, Buinsess .00 71.00 20.00 65.00 .00 .00 52.00 .00 804.00 Cost 1,020,349,0 33,276,869. 341,289,010 109,274,861 76,392,413. -39,976,471 -198,407,89 -913,793,23 428,404,632 Profit Total 73.00 00 .00 .00 00 .00 2.00 1.00 .00 27,921,434, 9,872,004,8 6,200,787,5 7,212,363,5 4,296,991,4 5,118,845,3 31,271,183, -21,663,038 70,230,573, Assets Total 543.00 82.00 90.00 25.00 87.00 72.00 779.00 ,117.00 061.00 Liability 5,011,567,8 6,479,534,9 4,302,028,0 4,041,718,6 318,902,722 3,888,836,3 20,632,616, -3,352,019, 41,323,185, Total 70.00 44.00 42.00 88.00 .00 26.00 742.00 754.00 580.00 (3) There was no reportable segment, or the total amount of assets and liabilities of each part of reportable segment, shall disclose the reason. (4)Other notes 7. Other important transactions and events have an impact on investors’ decision-making 8.Other XVII. Notes s of main items in financial reports of parent company (1)Account receivable 1.Classification accojunt receivables. In RMB Amount in year-end Amount in year-beginning Book Balance Bad debt provision Book Balance Bad debt provision Classification Book Amount Proportio Amount Proportio Amount Proportio Amount Proportion( Book value value n(%) n(%) n(%) %) Accounts receivable of individual significance and 208,906, 208,906,1 211,416 211,416,39 100.00% 99.56% subject to individual 179.00 79.00 ,396.00 6.00 impairment assessment Accounts receivable 926,802 0.44% 926,802.00 179 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 of individual .00 insignificance but subject of individual impairment assessment 208,906, 208,906,1 212,343 212,343,19 Total 100.00% 100.00% 179.00 79.00 ,198.00 8.00 Receivable accounts with large amount individually and bad debt provisions were provided. √Applicable □Not applicable In RMB Content of account End of term receivable(Unit) Account receivable Provision for bad debts Proportion of provision Reason for provision Full amount recovery is GPGC 208,906,179.00 0.00% expected Total 208,906,179.00 -- -- Account reveivable on which bad debt proisions are provided on age basis in the group □Applicable √Not applicable Receivable accounts on which had debt provisions are provided on percentage analyze basis in a portfolio □Applicable √Not applicable Receivable accounts on which had debt provisions are provided by other ways in the portfolio Not applicable Content of account Book amount Provision for bad debts Proportion of provision Reason for provision receivable Electricity 208,906,179 0.00 receivable Thermal sales 0.00 receivable Services 0.00 Other 0.00 Total 208,906,179 (2)Accounts receivable withdraw, reversed or collected during the reporting period The withdrawal amount of the bad debt provision during the reporting period was of RMB 0.00;The amount of the reversed or collected part during the reporting period was of RMB0.00. Where the current bad debts back or recover significant amounts: In RMB 180 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Name Back or withdraw money Method (3)The current accounts receivable written-offs situation In RMB Items Amount written-offs situation Account receivables actually written-offs during the reporting period: In RMB Nature of account Reason for Verification Arising form related Name Amount written-off receivable written-off procedures transactions(Y/N) Explanation for written-off of account receivables: (4)The ending balance of other receivable owed by the imputation of the top five parties Name Amount Provision for bad debts Proportion(%) Total 208,906,179 - GPGC 208,906,179 (5) Account receivable which terminate the recognition owning to the transfer of the financial assets (6) The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts receivable Other notes: 2. Other accounts receivable (1) Other accounts receivable disclosed by category In RMB Amount in year-end Amount in year- begin Bad debt Book Balance Bad debt provision Book Balance Classification Book provision Book value Proportio Proportio value Proportio Amoun Proport Amount Amount Amount n(%) n(%) n(%) t ion(%) Other accounts receivable of individual 10,000,0 10,000,00 115,767,0 significance and 48.38% 0.00% 94.17% 0.00% 115,767,023.00 00.00 0.00 23.00 subject to individual impairment assessment 181 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Other accounts receivable of individual 10,671,5 10,671,59 7,166,726. insignificance but 51.62% 0.00% 5.83% 11.73% 7,166,726.00 98.00 8.00 00 subject to individual impairment assessment 20,671,5 20,671,59 122,933,7 Total 100.00% 0.00% 100.00% 4.59% 122,933,749.00 98.00 8.00 49.00 Other receivable accounts with large amount and were provided had debt provisions individually at end of period. √ Applicable □ Not applicable In RMB End of term Other receivable(Unit) Other receivable Bad debt provision Proportion Reason Tongdao Yuexin Wind Po 10,000,000.00 wer Generation Co., Ltd. Total 10,000,000.00 -- -- Other receivable accounts in Group on which bad debt provisions were provided on age analyze basis: □Applicable √Not applicable Other receivable account in Group on which bad debt provisions were provided on percentage basis: □Applicable √Not applicable Other Receivable accounts on which bad debt provisions are provided by other ways in the portfolio: □Applicable √Not applicable (2)Bad debt provision accrual collected or switch back Bad debt provision accrual was RMB0.00, the acount collected or switches back amounting to RMB 0.00. Significant amount of reversed or recovered bad debt provision: In RMB Name Amount Method (3) Other account receivables actually cancel after wtite-off In RMB Items Amount Of Which,Other receivable write-off: In RMB Whether the money Name Nature Amount Reason program is generated by 182 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 related party transactions Notes: (4) Other account receivables category by nature of money In RMB Naature Ending book balance Beginning book balance Prepayments for construction 10,000,000.00 Reserve funds 3,773,825.00 319,051.00 Prepayments for construction 773,384.00 313,647.00 Government Grants 100,000,000.00 Pending investment 15,767,023.00 Other 6,124,389.00 6,534,028.00 Total 20,671,598.00 122,933,749.00 (5)The ending balance of other receivables owed by the imputation of the top five parties In RMB Portion in total other Bad debt provision Name Nature Year-end balance Age receivables(%) of year-end balance Tongdao Yuexin Wind Pwer Generation Co., Pending investment 10,000,000.00 Within 1 year 48.38% Ltd. Guangdong Yudean Environmental Product sales 2,943,808.00 ithin 1 year 14.24% Protection Co., Ltd. Dongguan Humen Water and electricity Jinfan Industry 1,912,320.00 ithin 1 year 9.25% rental advances Company Guangdong Yudean Water and electricity 1,615,955.00 ithin 1 year 7.82% Group Shajiao C rental advances Employee Petty cash 773,384.00 ithin 1 year 3.74% Total -- 17,245,467.00 -- 83.43% (6) Accounts receivable involved with government subsidies In RMB Estimated received time, Name of units Project of government Closing balance Closing age amount and basis (7) Other account receivable which terminate the recognition owning to the transfer of the financial assets 183 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 (8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts receivable Other Notes: 3.Long –term share equity investment In RMB End of term Beginning of term Items Impairment Impairment Book Balance Book value Book Balance Book value provision provision Investment in 18,447,151,604.0 17,957,584,389.0 18,015,651,604.0 17,526,084,389.0 489,567,215.00 489,567,215.00 subsidiaries 0 0 0 0 Investment in joint ventures and 5,626,407,737.00 5,626,407,737.00 5,370,651,524.00 5,370,651,524.00 associates 24,073,559,341.0 23,583,992,126.0 23,386,303,128.0 22,896,735,913.0 Total 489,567,215.00 489,567,215.00 0 0 0 0 (1)Investment in subsidiaries In RMB Impairment Impairment Name of investee Opening balance Increase Decrease Closing balance provision for the provision year Zhanjiang Power 2,185,334,400.00 2,185,334,400.00 Guangdong Yujia 631,679,338.00 631,679,338.00 0.00 455,584,267.00 Power Maoming 687,458,978.00 687,458,978.00 Zhenneng Guangdong Yudean Jinghai 1,930,395,668.00 1,930,395,668.00 Power Guangdong Yudean 242,277,000.00 242,277,000.00 Zhangjiang Wind Power Zhangjiang 1,150,248,115.00 1,150,248,115.00 Zhongyue Energy Guangdong 90,000,000.00 90,000,000.00 0.00 33,982,948.00 Humen Power 184 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Guangdong 20,000,000.00 20,000,000.00 Yudean Anxin Guangdong Yudean Bohe 1,985,000,000.00 115,000,000.00 2,100,000,000.00 Electric Huizhou Pinghai 720,311,347.00 720,311,347.00 Power Guangdong Red 2,220,023,386.00 2,220,023,386.00 Bay Huizhou Natural 977,416,646.00 977,416,646.00 Gas Guangqian Power 1,353,153,223.00 1,353,153,223.00 Yuejiang Power 856,694,674.00 297,000,000.00 1,153,694,674.00 Huadu Natural Gas 78,000,000.00 19,500,000.00 97,500,000.00 Dapu Power 1,000,000,000.00 1,000,000,000.00 Province Wind 827,419,390.00 827,419,390.00 Power Leizhou Wind 80,800,000.00 80,800,000.00 power Qujie Wind Power 231,750,000.00 231,750,000.00 Electric Sale 230,000,000.00 230,000,000.00 Lincang Energy 427,689,439.00 427,689,439.00 Yudean Yongan 90,000,000.00 90,000,000.00 Natural gas 18,015,651,604.0 18,447,151,604.0 Total 431,500,000.00 489,567,215.00 0 0 (2)Investment in joint ventures and associates In RMB Increase/decrease in this period Balance Announce Investme of the Increase Decrease Other d for Provision Name of Beginnin nt income Other End of provision in in comprehe distributin for investee g of term under changes Other term on for investmen investmen nsive g cash impairme equity in eqiuty impairme t t income dividend nt method nt or profit I.Joint venture 185 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Industry 584,241,3 35,469,27 59,231,11 560,479,5 Fuel 60.00 6.00 5.00 21.00 584,241,3 35,469,27 59,231,11 560,479,5 Subtotal 60.00 6.00 5.00 21.00 II. Associatesd Shanxi 998,393,3 105,186,4 8,000,000 1,095,579 Yudean 92.00 50.00 .00 ,842.00 Enerty Yudean 667,666,8 46,164,42 42,295,03 671,536,2 Finance 53.00 2.00 3.00 42.00 Taishan 1,970,490 45,012,24 2,015,503 Power ,827.00 6.00 ,073.00 Yudean 935,332,5 5,930,929 2,188,557 939,074,9 Shipping 53.00 .00 .00 25.00 Yudean West 200,011,5 -17,279,5 182,732,0 Investme 82.00 05.00 77.00 nt Yangshan 5,991,055 420,904.0 6,411,959 Jiangkeng .00 0 .00 Yangshan 8,523,902 500,129.0 933,933.0 8,090,098 Zhongxin .00 0 0 .00 keng Yudean 147,000,0 147,000,0 Insurance 00.00 00.00 4,786,410 147,000,0 185,935,5 53,417,52 5,065,928 Subtotal ,164.00 00.00 75.00 3.00 ,216.00 5,370,651 147,000,0 221,404,8 112,648,6 5,626,407 Total ,524.00 00.00 51.00 38.00 ,737.00 (3)Other 4. Business income, Business cost In RMB Amount of current period Amount of previous period Items Income Cost Income Cost Main business 928,897,921.00 885,653,373.00 10,169,505,901.00 7,754,418,633.00 Other business 10,867,381.00 1,472,966.00 65,483,665.00 13,491,596.00 186 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 Total 939,765,302.00 887,126,339.00 10,234,989,566.00 7,767,910,229.00 Other notes: 5. Investment income In RMB Items Amount of current period Amount of previous period Income from long-term cost investment 877,823,419.00 1,717,042,667.00 Income from long-term equity investment 221,764,316.00 123,853,097.00 Hold the investment income during from 2,124,000.00 2,520,000.00 available-for-sale financial assets Entrust Loan interest income 8,780,663.00 11,146,250.00 Other -15,227.00 -1,416,699.00 Total 1,110,477,171.00 1,853,145,315.00 6.Other XVIII. Supplement information 1. Particulars about current non-recurring gains and loss √ Applicable □ Not applicable In RMB Items Amount Notes Gains/losses from the disposal of 612,592.00 non-current asset Governmental subsidy calculated into current gains and loess(while closely related with the normal business of the Company, 2,257,231.00 excluding the fixed-amount or fixed-proportion governmental subsidy according to the unified national standard) Guangqian company received the Decisions on Handling of the Tax Affairs Effect on current gains/losses when a one-off (SGSJC[2017] No.0013) issued by the adjustment is make tocurent gains/losses -28,088,810.00 Inspection Department of Shenzhen according to requirements of taxation. Municipal Office, SAT on June 26, 2017, which requires Guangqian company to pay VAT and overdue fees. Such decisions are under negotiation among several parties at 187 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 present. Other non-business income and expenditures -3,175,695.00 other than the above Less:Influence amount of income tax 980,615.00 Influenced amount of minor shareholders’ -1,308,291.00 equity Total -28,067,006.00 -- Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in the Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public-Extraordinary Gains and Losses, or classifies any extraordinary gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item. □ Applicable √Not applicable 2. Return on net asset and earnngs per share Earningspershare Profit of report period Weightedaverage retureon eqiuty(%) Basicearningspershare(R Diluted eqrnings per MB/share) share(RMB/share) Net profit attributable to the Common stock shareholders of 0.55% 0.0245 0.0245 Company. Net profit attributable to the Common stock shareholders of 0.67% 0.0299 0.0299 Company after deducting of non-recurring gain/loss. 3.The differences between domestic and international accounting standards (1)Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed in the financial reports of differences in net income and net assets. √ Applicable □ Not applicable In RMB Net profit Net assets Amount in the reporting Amount in the previous End of the reporting Beginning of the period period period reporting period According to CAS 128,735,725.00 738,374,784.00 23,104,526,322.00 23,378,847,225.00 Items and amount adjusted according to IAS The difference arising 64,623,000.00 64,623,000.00 188 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 from recognition of goodwill after merger of enterprises under the same control Difference arising fromrecognition of land -315,000.00 -315,000.00 18,545,000.00 18,860,000.00 use value after enterprise merger Influence on minority 27,060.00 27,060.00 4,674,919.00 4,701,979.00 interests According to IAS 128,447,786.00 738,086,844.00 23,127,746,242.00 23,467,032,204.00 (2) Discrepancy in net profit and net assets as disclosed in the financial report respectively according to the accounting standards outside Mainland China and CAS □ Applicable √ Not Applicable (3) Note to the discrepancy in accounting data under the accounting standards outside Mainland China. In case the discrepancy in data which have been audited by an overseas auditing agent has been adjusted, please specify the name of the overseas auditing agent. (a) The difference arising from recognition of goodwill after merger of enterprises under the same control and recognition of land value after enterprise merger. As required by new Chinese accounting standards, the goodwill formed by the merger of enterprises under the same control shall not be recognized and capital surplus shall be adjusted. Under IFRS, the golldwill formed by the merger of enterprises under the same control shall be recognized and equal to the difference between merger cost and share of fair value of recognizable net assets of the purchased party obtained in merger. Meanwhile, all assets of the purchased party obtained in merger shall be accounted for according to their fair value while such assets shall be accounted for according to their book value according to original Chinese accounting standards for business enterprises. Therefore, this difference will continue to exist. (b) Influence on minority interests Housing reform loss occurred to the Company and some holding subsidiaries. Therefore, there’s some influence on minority interests. 4.Other 189 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2017 XI. Documents available for inspection 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). The Board of Directors of Guangdong Electric Power Development Co., Ltd. Chairman of the Board: Huang Zhenhai August 31, 2017 190