SDIC Power Holding Co., Ltd. Semiannual Report of 2021

Semiannual Report of 2021

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Company code: 600886 Company abbreviation: SDIC Power

SDIC Power Holding Co., Ltd.



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Important Notice

I. The Board of Directors, the Board of Supervisors, directors, supervisors and the senior executives

of this Company guarantee the semiannual report does not have any fake record, misleading

statement or major omission, and assume individual and joint liabilities for the truthfulness,

accuracy and completeness of the report.

II. All directors of the Company are present at the meeting of Board of Directors.

III. This semi-annual report has not been audited.

IV. Zhu Jiwei - the leader of this Company, Zhou Changxin - the principal of accounting work

and Zhang Song - the person in charge of accounting firm (accountant officer) declare that we can

ensure the authenticity, accuracy and integrity of the financial report in annual report.

V. Profit distribution plans or plans of share capital increase from accumulation fund in the

reporting period adopted by the Board of Directors

None.

VI. Risk disclosure statement about forward-looking statement

√Applicable □Inapplicable

The forward-looking statement of this Company about future development strategies and business plans

don't constitute any substantive commitment of this Company to investors. Investors shall pay attention

to investment risks.

VII. Whether the capital is occupied by the controlling shareholder and its related party for non-

operating purpose

No.

VIII. Whether there is any external guarantee violating the specified decision making procedure

No.

IX. Whether more than half of directors are unable to ensure the authenticity, accuracy and

completeness of the semi-annual report disclosed by the Company

No.

X. Notice of major risks

This Company analyzes the possible impact of relevant risks on the Company's business and

development in this report. For details, see Section III Management Discussion and Analysis, V Other

Disclosures, (I) Possible Risks.

XI. Others

□Applicable √Inapplicable


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Contents

Section I Interpretations ......................................................................................错误!未定义书签。

Section II Company Profile and Key Financial Indicators .................................................................. 6

Section III Management Discussion and Analysis ................................................................................ 9

Section IV Corporate Governance....................................................................................................... 22

Section V Environmental and Social Responsibilities ....................................................................... 24

Section VI Important Matters .............................................................................................................. 29

Section VII Share changes and Shareholders ....................................................................................... 41

Section VIII Preferred Shares ...................................................................................错误!未定义书签。

Section IX Bonds ................................................................................................................................. 46

Section X Financial Statements ......................................................................................................... 56


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Section I Interpretations

For the purpose of this report, the following words shall have the meanings as follows, unless otherwise

specified:

Interpretations of common words

CSRC means China Securities Regulatory Commission

NDRC means the National Development and Reform Commission

of the PRC

SASAC means the State-owned Assets Supervision and

Administration Commission of the State Council

SSE means Shanghai Stock Exchange

SDIC or controlling

shareholder

means State Development & Investment Corp., Ltd.

Company, the Company, or

SDIC Power

means SDIC Power Holdings Co., Ltd.

Yalong Hydro means Yalong River Hydropower Development Co., Ltd.

SDIC Dachaoshan means SDIC Yunnan Dachaoshan Hydropower Co., Ltd.

SDIC Xiaosanxia means SDIC Gansu Xiaosanxia Power Co., Ltd.

SDIC Beijiang means Tianjin SDIC Jinneng Electric Power Co., Ltd.

SDIC Qinzhou means SDIC Qinzhou Electric Power Co., Ltd.

Huaxia Power means Xiamen Huaxia International Power Development

Co., Ltd.

SDIC Panjiang means SDIC Panjiang Power Co., Ltd.

Genting Meizhouwan means SDIC Genting Meizhouwan Electric Power Co., Ltd.

SDIC New Energy means SDIC New Energy Investment Co., Ltd.

SDIC Aksay means SDIC Aksay New Energy Co., Ltd.

Yunnan Metallurgical New

Energy

means Yunnan Metallurgical New Energy Co., Ltd.

Huzhou Xianghui

Photovoltaic

means Huzhou Xianghui Photovoltaic Power Generation

Co., Ltd.

Toksun Trina Solar means Toksun Trina Solar Co., Ltd.

Dingbian Angli

Photovoltaic

means Dingbian Angli Photovoltaic Technology Co., Ltd.

Jingbian Zhiguang New

Energy

means Jingbian Zhiguang New Energy Development Co.,

Ltd.

Hengneng Solar Power means Xiangshui Hengneng Solar Power Generation Co.,

Ltd.

Yongneng Solar Power means Xiangshui Yongneng Solar Power Generation Co.,

Ltd.

Guanghui New Energy means Guyuan County Guanghui New Energy Power

Generation Co., Ltd.

Jingke New Energy means Zhangjiakou Jingke New Energy Co., Ltd.

SDIC Huanneng means SDIC Huanneng Electric Power Co., Ltd.

Newsky (China) means Newsky (China) Environment & Technology Co.,

Ltd.

SDIC KingRock means SDIC KingRock Overseas Investment Management

Co., Ltd.

SDIC Gansu means SDIC Gansu Electricity Sales Co., Ltd.

Xuzhou China Resources means Xuzhou China Resources Power Co., Ltd.

Tongshan China Resources means Tongshan China Resources Power Co., Ltd.

Jiangsu Ligang means Jiangsu Ligang Electric Power Co., Ltd.

Jiangyin Ligang means Jiangyin Ligang Power Generation Co., Ltd.

Jiangxi Ganneng means Jiangxi Ganneng Co., Ltd.

GrandBlue Environment means GrandBlue Environment Co., Ltd.

Jaderock Investment or means Jaderock Investment Singapore Pte.Ltd.


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Jaderock

Redrock Investment or

Redrock

means Redrock Investment Limited

Red Rock Power or Red

Rock

means Red Rock Power Limited

Inch Cape or ICOL means Inch Cape Offshore Limited

Beatrice or BOWL means Beatrice Offshore Windfarm Limited

Afton means Afton Wind Farm Limited

LLPL means Lestari Listrik Pte. Ltd.

PTLBE means PT. Lesteri Banten Energi

Installed capacity means the sum of rated power of power-generating

equipment

Total installed capacity means the sum of installed capacity of a company's power

plants and the existing power plants in which the

company holds shares or controlling shares

Holding installed capacity means the sum of installed capacity of a company's power

plants and the existing power plants in which the

company holds controlling shares

Equity installed capacity means the sum of installed capacity multiplying by

shareholding ratio of a company's power plants and

the existing power plants in which the company holds

shares or controlling shares

Generated energy means the quantity of active energy generated from primary

energy by generating set through processing, namely,

the product of actual active power and actual run time

of generator sets

On-grid energy means the measured electricity generated by power plants

and connected to the grid connection points, also

known as sales electricity

Overall power consumption

rate

means the proportion of the power consumption of

generating equipment and other power consumption

during power generation in the generated energy

Utilization hours means the operating hours when the generated energy from

the generating equipment is converted to rated power

within a period. This indicator is used to reflect the

utilization of the generating equipment calculated as

per its nameplate capacity.

Standard coal means the ideal coal that generates calorific value of

29,271.2 kJ per kilogram

Coal consumption for

power generation

means the standard coal consumption per unit generated

energy

Coal consumption for

power supply

means the standard coal consumption per unit power supply

GDR means the global depository receipt.


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Section II Company Profile and Key Financial Indicators

I. Company Information

Company name in Chinese SDIC Power Holdings Co., Ltd.

Company abbreviation in Chinese 国投电力

Company name in English SDIC Power Holdings Co., Ltd

Company abbreviation in English SDIC Power

Legal representative of the Company Zhu Jiwei

II. Contacts and Contact Information

Secretary of the Board of Directors Securities Affairs Representatives

Name Yang Lin Wang Weirong

Correspond

ence address

Floor 12, Building 147, Xizhimen South St,

Xicheng District, Beijing

Floor 12, Building 147, Xizhimen South St,


Telephone 010-88006378 010-88006378

Fax 010-88006368 010-88006368

E-mail [email protected] [email protected]

III. Change in Basic Information

Registered address Room 1108, Floor 11, Building 147, Xizhimen South St,


Change in registered address 100034

Business address Building 147, Xizhimen South St, Xicheng District,

Beijing

Postal code of business address 100034

Company website www.sdicpower.com

E-mail [email protected]

IV. Information Disclosure and Change in the Preparation Place

Newspapers for information disclosure

designated by the Company

China Securities News, Shanghai Securities News

Website publishing the semiannual report www.sse.com.cn

Preparation place for the semiannual report

of the Company

Securities Department, Floor 12, Building 147, Xizhimen

South St, Xicheng District, Beijing

V. Company Shares

Share type Exchange where the

shares are listed and

traded

Stock abbreviation Stock code Stock abbreviation

prior to change

A-share Shanghai Stock

Exchange

SDIC Power 600886 Hubei Xinghua

GDR London Stock

Exchange

SDIC Power Holdings Co., Ltd SDIC

VI. Other relevant information



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VII. Key accounting data and financial indicators

(I) Key accounting data

Unit: Yuan Currency: RMB

Key accounting data Current report period

(January ~ June)

Same period of last

year

Year-on-year

increase or

decrease (%)

Operating income 19,288,873,831.17 17,470,336,116.13 10.41

Net profits attributable to

shareholders of listed company 2,336,834,245.77 3,075,779,958.24 -24.02

Net profits excluding non-recurring

profit and loss and attributable to

shareholders of the listed company

2,206,249,285.21 2,454,553,332.99 -10.12

Net cash flow from operating

activities 6,598,317,662.43 8,716,004,386.63 -24.30

End of current report

period End of last year

Increase or

decrease

compared to

the end of

last year(%)

Net assets attributable to

shareholders of listed company 45,660,279,896.67 47,226,653,237.28 -3.32

Total assets 232,500,323,239.80 228,909,369,566.96 1.57

(II) Key financial indicators

Key financial indicators

Current report

period

(January ~ June)

Same period of

last year

Year-on-year

increase or

decrease (%)

Basic earnings per share (Yuan/share) 0.3190 0.4380 -27.17

Diluted earnings per share (Yuan/share) 0.3190 0.4380 -27.17

Basic earnings per share excluding non-

recurring profit and loss (Yuan/share) 0.3002 0.3465 -13.36

Weighted mean return on net assets (%) 5.21 7.85

Decreased by

2.64%

Weighted mean return on net assets

excluding non-recurring profit and loss

(%)

4.90 6.21

Decreased by

1.31%

Notes to key accounting data and financial indicators of the Company

□ Applicable √ Inapplicable


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VIII. Difference between accounting data under PRC and foreign accounting standards


IX. Items and amount of non-recurring profit and loss



Non-recurring profit and loss item Amount

Profit or loss from disposal of non-current assets 1,087,901.47

Government subsidies included in the current

profit and loss, except for those closely related to

normal businesses of the Company, complying

with national policies and continuously enjoyed

in accordance with certain standard quota or

quantity

9,030,804.42

Earnings from the difference between the

investment cost paid by the enterprise to acquire

a subsidiary, affiliate or joint venture and the fair

value of recognized net assets of the invested

company obtained upon investment

89,096,281.49

Profit or loss from change in fair value of

possessed trading financial assets, derivative

financial assets, trading financial liabilities and

derivative financial liabilities, and investment

earnings from disposal of trading financial assets,

derivative financial assets, trading financial

liabilities, derivative financial liabilities and other

credit investment, except for effective hedging

businesses related to normal businesses of the

Company

31,584,864.49

Other non-operating income and expense except

for the above items

10,168,250.02

Other profit and loss items complying with the

definition of non-recurring profit and loss

Affected amount of minority shareholders’

equities

-5,879,842.74

Affected amount of income taxes -4,503,298.59

Total 130,584,960.56

X. Others



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Section III Management Discussion and Analysis

I. Main Business and Industry of the Company in the Reporting Period

(I) Main business of the Company

The business of Company mainly includes investment, construction, operation and management of

power-generation-dominated energy projects, development and operation of new energy projects and

high-tech and environment protection industries, development and operation of auxiliary products of

electric power, and provision of information and consultation services. Among these, power generation

is the core business of the Company, accounting for more than 95% of total operating revenue of the

Company. Meanwhile, in order to adapt to the electric power system reforms and market changes, the

Company is developing the relevant business dominated by energy development and power generation.

(II) Operation mode

The Company, as an early practitioner of modern enterprise system, is mainly engaged in

construction and operation of various types of energy and power projects in the form of equity

investment.

(III) Industry and position of the Company in the industry

1. Electric power industry

According to a report of China Electricity Council, the electricity consumption in 2021H1 was

3930 billion kWh throughout the country, increasing by 16.2% year on year. The rapid growth mainly

came about from the low base led to by the pandemic in the same periods a year before. By industry:

The electricity consumption of the primary, secondary and tertiary industries was 45.1 billion kWh, 2.66

trillion kWh and 0.67 trillion kWh, with 20.6%, 16.6% and 25.8% year-on-year increase respectively;

the domestic consumption by urban and rural residents was 0.56 trillion kWh, increasing by 4.5% from a

year before. By region: The total electricity consumption increased by 17.7%, 16.9%, 14.8% and 9.6%

in the eastern, central, western and northeastern China, respectively; 28 provinces reported a growth rate

above 10% in electricity consumption, among which, 7 provinces, including Tibet, Hubei, Guangdong,

Zhejiang, Yunnan, Jiangsu and Jiangxi, grew by more than 20%.

By the end of June 2021, the national total installed capacity of all sizes was 2.26 billion kW, with a

year-on-year increase of 9.5%. The installed capacity of non-fossil energy generation accounted for

45.4% of the total, up 3.2 percentage points. The share of coal power installed capacity dropped to

48.2%, down 3.3 percentage points, showing an obvious green and low-carbon transformation in the

electricity power industry under the "peak carbon dioxide emissions" and "carbon neutrality" goals.

In 2021H1, 1,853 utilization hours of national power generating equipment was reported, 119 hours

more from a year before. Among it, the utilization hours of hydroelectric equipment was 1,496, 33 hours

less; the figure of nuclear power equipment was 3,805, 286 hours more year-on-year; the figure of

thermal power equipment was 2,186, 231 hours more, and of it, the utilization hours of coal power

equipment was 2,257 hours, 254 hours more from a year before; the figure of grid-connected wind


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power equipment was 1,212, 88 more than a year before; the figure of solar power generation equipment

was 660 hours, down 3 hours.

In 2020H1, the national raw coal output grew by 6.4% year-on-year, 8.7 percentage points slower

than the growth rate of the national total coal power generation of all sizes. In the period, the total coal

import dropped by 19.7% year-on-year. In the second quarter, prices of coal for power generation soared

to an all-time high, making it more difficult to source the coal or guarantee its supply. Costs of coal

power plants grew up sharply. In June, the unit prices of standard coal delivered to some large coal

power groups skyrocketed by 50.5% YoY. In consequence, coal power plants reported seriously higher

loss, and the coal power plants of some power generation groups suffered a loss by over 70% in June.

The coal power segment was in an overall loss.

2. Position of the Company in the industry

In terms of the installation structure, the Company is an integrated electric power listed company

dominated by clean energy and supplemented by hydropower, thermal power, wind power and solar

power. With the holding installed capacity of hydropower of 16.77 million kW, it is the third largest

listed company concerning the hydropower installed capacity and is an industry leader.

In terms of business presence, the Company focuses on domestic market and is also seeking

overseas business. Its domestic projects are mainly in Sichuan, Tianjin, Fujian, Guangxi, Yunnan,

Gansu, Xinjiang, Guizhou, Qinghai, Shanxi, Jiangsu and Zhejiang provinces.

With regard to profitability, despite the intensified market competition and growing energy

conservation and environmental protection pressures, the Company enjoys obvious advantages, excellent

social and economic benefits and strong risk resistance capacity by virtue of its clean energy dominated

power supply structure

II. Analysis of core competitiveness during the reporting period


(I) Absolute control over Yalong Hydro

Yalong Hydro, of which 52% of the shares are held by the Company, is the only hydropower

developer on the Yalong River. It demonstrates strong advantages like reasonable development and

unified scheduling. The Yalong River provides abundant water and concentrated river falls, and the loss

due to building dams to store water is relative low. Considering its outstanding scale advantages, graded

subsidies, consumption and immigration advantages and economic and technical indicators, it's highly

profitable to develop hydropower on this river. The installed capacity on the river could be up to 30 GW,

ranking No.3 among the 13 major hydropower bases in China. As at the end of the reporting period, 14.7

GW installed capacity had been put into operation, and 4.5 GW was under construction, of which 3.42

GW was verified and approved.

(II) High proportion of clean and efficient energies, and obvious advantage of green and low-

carbon development


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As of the end of June 2021, its installed capacity of clean energy accounted for 62.80% of the

Company's existing installed capacity. The installed hydropower capacity is stable, accounting for

52.57% of the total installed capacity; through greenfield construction and M&A, the installed capacity

of wind power and solar power has been continuously increasing, reaching 3,269,500 KW, accounting

for 10.24% of the total installed capacity. Policy priorities are available for the transmission and

consumption of clean energies, so the Company's high proportion of clean energy presents an inherent

advantage as low marginal cost. As the marketization extends, the Company shows strong pricing

capabilities and guaranteed profitability.

The Company's thermal power plants are mainly consisted of high-parameter, large-scale units,

without any unit below 300MW (excluding garbage power projects). Units above one GW account for

67.53% of its controlled thermal power installed capacity; most of its controlled thermal power plants

are located in the coastal provinces, presenting advantages in power generation costs and operating

indicators. The Company actively responds to the national energy efficiency and emission reduction

policies, and continuously improves its energy efficiency and environmental protection level of thermal

power units. It's 100% equipped with desulfurization, denitrification and dust removal devices. By

installed capacity, the Company's ultra-low emission units account for nearly 95% of its installed

capacities.

(III) Professional manager system established to maximize the Company's management

vitality

Through establishing a professional manager system, the Company has strengthened its top

management's market awareness and contract awareness, and created an internal atmosphere of

unlimited promotion and demotion and performance-oriented salary. And it has cultivated its

professional managers be contract and market oriented and professionalized, so as to efficiently

consummate the corporate governance structure and effectively stimulate the vitality of its executive

management and development momentum of the entire company.

(IV) Mature investment and management experience in the power industry

The Company adheres to its “benefit first" investment management principle, comes out top among

peers in profitability, and has built a team of experienced and well-structured management and technical

talents in investment, construction and operation management. Moreover, the Company's institutional

system encourages management innovation and technical progress, providing powerful guarantee for its

management and business expansion.

(V) Mature experience in capital operation and strong support from majority shareholders

Since its backdoor listing in 2002, the Company has made full uses of the financing measures like

GDR, allotment, public offering, convertible bonds, corporate bonds and medium-term notes to fund a

large number of its high-quality under-construction and reserve projects at home and abroad, through the

listed company platform. In this way, the Company's market value, assets, installed capacity, equity, and

profits grow rapidly, and it has accumulated rich experiences in capital operation, strongly supporting it

to improve its internationalization and marketization level.


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As the exclusive capital operation platform for the power business of SDIC, the Company is under

strong support by SDIC for development. Through assets injection, the Company has acquired core

assets as Yalong Hydro and SDIC Dachaoshan, making it grow stronger and bigger quickly.

III. Discussion and analysis of operation performance

In the first half year of 2021, the holding enterprises of the Company completed the accumulated

power generation of 65.8 billion kWh and the on-grid energy of 63.8 billion kWh, respectively increased

by 1.6% and 1.5% at the average on-grid price is 0.333 Yuan/kWh, increased by 9%.

In the first half year of 2021, the Company achieved the operating income of 19,289 million Yuan,

increased by 10.41% on year-on-year basis, and the operating cost of 11,663 million Yuan, increased by

26.78% on year-on-year basis. During this report period, the net profits attributable to shareholders of

the listed company reached 2,337 million Yuan, decreased by 24.04% on year-on-year basis. The basic

earnings per share reached 0.3190 Yuan, decreased by 27.17% on year-on-year basis.

As at June 30, 2021, the total assets of the Company were 232,500 million Yuan, increased by

3,591 million Yuan compared to that at end of last year; the total liabilities were 152,816 million Yuan,

increased by 6,492 million compared to that at end of last year. At end of the report period, the asset-

liability ratio was 65.73%, increased by 1.81% compared to that at end of last year; the net assets

attributable to shareholders of the listed company were 45,660 million Yuan, decreased by 3.32% on

year-on-year basis.

Major changes in business of the Company, and matters with material effect on business or future

business as expected of the Company during the report period


IV. Main business in the report period

(I) Analysis of main business

1. Analytical statement of changes in relevant items of financial statements


Item Amount in current

period

Amount in same

period of last year Change ratio (%)

Operating income 19,288,873,831.17 17,470,336,116.13 10.41

Operating cost 11,663,431,026.42 9,199,763,932.71 26.78

Sales expense 12,029,436.89 10,843,059.95 10.94

Administration expense 539,678,484.25 510,865,977.76 5.64

Financial expense 1,911,950,859.21 2,160,746,171.12 -11.51

R&D expense 5,168,886.93 466,496.79 1,008.02

Net cash flow from operating 6,598,317,662.43 8,716,004,386.63 -24.30


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activities

Net cash flow from investment

activities -3,130,210,601.89 -2,925,999,781.57 6.98

Net cash flow from financing

activities -3,517,478,863.05 -4,306,919,202.92 -18.33

Reason for change in operating income: year-on-year growth of on-grid energy;

Reason for change in operating cost: year-on-year growth of generated energy and year-on-year increase

of standard coal for power generation;

Reason for change in sales expense: basically equal to that of same period of last year;

Reason for change in administration expense: basically equal to that of same period of last year;

Reason for change in financial expense: year-on-year decrease of average cost of liabilities;

Reason for change in R&D expense: year-on-year increase of expenses in R&D activities;

Reason for change in net cash flow from operating activities: great increase of cash outflow from

operating activities due to increase of coal price in this period;

Reason for change in net cash flow from investment activities: year-on-year increase of investment

expenses in this period;

Reason for change in net cash flow from financing activities: great increase of cash received as

borrowings in this year.

2. Detailed notes to major changes in business type, profit composition or source of the Company in

this period


(II) Notes to major changes in profits due to non-main businesses


(III) Analysis of assets and liabilities


1. Statements of assets and liabilities

Unit: Yuan

Item Closing balance of

current period

Proportion

of current

closing

balance in

total assets

(%)

Closing balance of

previous period

Proportion

of

previous

closing

balance in

total assets

(%)

Change ratio

compared to

the end of

last year (%)

Monetary

capital 9,581,008,749.33 4.12 9,689,936,195.21 4.23 -1.12

Accounts

receivable 9,244,666,492.39 3.98 7,058,315,750.08 3.08 30.98

Inventories 1,174,688,803.46 0.51 954,778,616.56 0.42 23.03

Investment 97,030,414.63 0.04 90,230,548.32 0.04 7.54


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properties

Long-term

equity

investment

9,836,918,807.18 4.23 9,936,747,117.55 4.34 -1.00

Fixed assets 131,536,971,224.24 56.57 134,140,162,340.74 58.60 -1.94

Projects under

construction 59,190,761,394.92 25.46 55,436,410,127.42 24.22 6.77

Right-of-use

assets 1,081,277,148.72 0.47 - - -

Short-term

borrowings 7,491,633,595.71 3.22 7,233,513,388.71 3.16 3.57

Long-term

borrowings 105,594,007,507.72 45.42 103,441,137,908.79 45.19 2.08

Lease

liabilities 632,297,926.85 0.27 - - -

2. Details of overseas assets


(1) Asset scale

Include: overseas assets of 5,835,857,428.93 (Unit: Yuan; Currency: RMB), accounting for 2.51% of

total assets.

(2) Relevant notes to overseas assets


As at June 30, 2021, the overseas assets of the Company are mainly located in three regions.

①Red Rock Power Limited acquired in UK, responsible for operation and development of wind power

in UK and Northern Europe;

② Pushi Investment Company established in Singapore, responsible for holding the equity of Indonesia

Thermal Power;

③ Right of control over overseas garbage power projects acquired due to acquisition of Newsky

(China), responsible for operation and development of garbage power projects in Southeast Asia such as

Thailand.

3. Main limited assets as at end of report period



Item Closing book value in current period Closing book value at end of last

year

Monetary capital 83,292,392.97 137,114,354.21

Accounts receivable 3,587,989,630.90 3,388,994,733.02


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Notes receivable 4,472,309.22 1,499,644.50

Accounts receivable

financing 30,000,000.00 30,000,000.00

Right-of-use assets 381,155,878.22

Fixed assets 4,758,409,540.00 5,479,053,247.94

Intangible assets 484,480,123.79

Total 8,845,319,751.31 9,521,142,103.46

4. Other notes


(IV) Analysis of investments

1. Overall analysis of external equity investments


①Overall

Unit: 10,000 Yuan Currency: RMB

Amount of investments in the report period 87,036.02

Increase or decrease in amount of investments 9,453.02

Amount of investments in same period of last

year 77,583.00

Change ratio (%) 12.18

②Invested companies

No. Name of invested company Main business

activities Shareholding ratio (%)

1 Red Rock Investment Limited Investment

management 100

2 SDIC Inner Mongolia New Energy Co.,

Ltd. Wind power generation 100

3 Hengfeng Jinkopower Co., Ltd. Photovoltaic power

generation 90

4 Yancheng Intelligent Energy Power Co.,

Ltd. Energy storage 81

5 Hainan Dongfang Gaopai Wind Power

Co., Ltd. Wind power generation 100

6 Changzhou Tiansui New Energy Co.,

Ltd.

Photovoltaic power

generation 100


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7 Jiangsu Tiansai New Energy

Development Co., Ltd.

Photovoltaic power

generation 90

(1) Major equity investments


①On November 24, 2020, as approved on the 163rdGeneral Manager’s Office Meeting held in 2020, the

Company was approved to acquire 90% of stock equity of Hengfeng Jinko Power Co., Ltd. at RMB 158

million Yuan. As at January 13, 2021, the Company completed the stock equity acquisition of Hengfeng

Jinko Power Co., Ltd., and this project has been included in the consolidated financial statements of the

Company.

② On March 1, 2021, as approved on the 26thGeneral Manager’s Office Meeting held in 2021, the

Company was approved to acquire the equity of Yancheng 10MW (40MWh) user-side energy storage

project at a zero consideration. As at March 26, 2021, with the quit of the legal person of original

shareholder, the Company completed the acquisition of 81% of stock equity of of Yancheng Intelligent

Energy Power Co., Ltd., and this project has been included in the consolidated financial statements of

the Company.

③ On March 1, 2021, as approved on the 31stGeneral Manager’s Office Meeting held in 2021, the

Company was approved to acquire 100% of stock equity of Hainan Dongfang Gaopai Wind Power

Generation Co., Ltd.at RMB 16.2 million Yuan. As at May 13, 2021, the Company completed the stock

equity acquisition of Hainan Dongfang Gaopai Wind Power Generation Co., Ltd., and this project has

been included in the consolidated financial statements of the Company.

④ On January 22, 2021, as approved on the 15th General Manager’s Office Meeting held in 2021, Red

Rock Power Limited was approved to acquire 100% of stock equity of Benbrack Wind Farm Limited, a

wholly-owned subsidiary of RWE Renewables UK Limited. In February 2021, the Company acquired

the substantial control right over Benbrack Wind Farm Limited.

⑤ As approved on the 84thGeneral Manager’s Office Meeting of SDIC Power held on June 15, 2021,

the Company acquired 90% of stock equity of Jiangsu Tiansai New Energy Development Co., Ltd. at

RMB 151.2 million Yuan. As at June 30, 2021, the transfer of control right has not completed.

⑥ As approved on the 84thGeneral Manager’s Office Meeting of SDIC Power held on June 15, 2021,

the Company was approved to acquire 100% of stock equity of Changzhou Tiansui New Energy Co.,

Ltd. at RMB 41 million Yuan. On June 22, 2021, the Company signed the equity transfer agreement. As

at June 30, 2021, the transfer of control right has not completed.

(2) Major non-equity investments


(3) Financial assets measured at fair value



Name Beginning balance Closing balance Change in current

period

Impact on

current profit

ST Yunwei 9,649,299.15 13,768,590.60 4,119,291.45 4,119,291.45

Exchangeable bonds of

Zhejiang Energy Group

CP Ltd.

846,220,000.00 -846,220,000.00 -936,980.96

Convertible bonds of

Zhongmin Energy Co., 90,344,000.00 118,746,954.00 28,402,554.00 28,402,554.00


17 / 329

Ltd.

Gui'an New Area 52,369,128.00 52,369,128.00 -

Yunnan Coal and

Chemical Industry

Group Co., Ltd.

54,176,223.90 54,176,223.90 -

National Coal

Transaction Center 12,000,000.00 12,000,000.00 -

Beijing Electricity

Transaction Center 6,597,610.00 6,597,610.00 -

SDIC Hami Industry 8,471,145.00 8,471,145.00 -

Tianjin Electricity

Transaction Center 3,013,249.99 9,541,095.99 6,527,846.00

Sichuan Electricity

Transaction Center 1,276,964.92 3,177,388.07 1,900,423.15

Guangxi Electricity

Transaction Center - 2,607,256.83 2,607,256.83

Contingent

consideration of ICOL

equities

93,348,150.00 93,880,500.00 532,350.00

Total 1,177,465,770.96 375,335,892.39 -802,130,278.57 31,584,864.49


18 / 329

(V) Sale of major assets and stock equities


(VI) Analysis of main holding and controlling companies


1. Main subsidiaries


No. Name Business nature Registered

capital Total assets

Owner’s

equity

attributable to

parent

company

Operating

income

Operating

profit Net profit

1 Yalong Hydro Hydropower 3,730,000.00 15,915,680.48 5,217,178.88 762,045.92 333,612.90 272,420.97

2 SDIC Jinneng Thermal power 220,000.00 1,258,863.38 390,660.91 277,812.46 637.83 626.05

3 SDIC New Energy Electric power

investment 282,003.24 1,285,005.13 313,565.74 99,911.40 37,904.96 35,122.10

4 Genting Meizhouwan Thermal power 184,998.00 632,144.23 337,926.19 197,796.78 8,695.59 7,312.46

5 SDIC Qinzhou Thermal power 228,000.00 582,405.69 260,026.08 280,451.93 18,084.63 15,408.27

6 SDIC Dachaoshan Hydropower 177,000.00 337,047.00 318,720.61 59,502.80 42,241.39 35,960.09

7 Huaxia Power Thermal power 102,200.00 240,127.06 153,566.45 99,856.14 10,249.25 8,326.76

2. Notes to great year-on-year change in operating performance of single subsidiary or holding company with significant impact on consolidated operating

performance of the Company, and reason of change



19 / 329

No. Name

Net profit Amount of

increase or

decrease

Year-on-year

increase or

decrease

Main reason of change

2021 2020

1 Yalong Hydro 272,420.97 248,371.38 24,049.59 9.68% The power price in the current period is higher than that in the same

period of last year.

2 Genting

Meizhouwan 7,312.46 27,640.91 -20,328.45 -73.54%

The unit price of standard coal used for power generation is higher

than that in the same period of last year, resulting in the growth of

production cost.

3 SDIC New

Energy 35,122.10 12,347.78 22,774.31 184.44%

1. The projects put into operation last year and this year play their

role fully, increasing the profitability;

2. The wind resources in Xinjiang this year are better that those in

last year, increasing the power generation.

4

Red Rock

Investment

Limited

233.80 -851.87 1,085.67 127.45%

Disposal of defective projects on year-on-year basis

5 SDIC Jinneng 626.05 33,323.19 -32,697.14 98.12%



production cost.

6 SDIC Qinzhou 15,408.27 29,557.54 -14,149.26 -47.87%



production cost.


20 / 329

(VII) Structured entity controlled by the Company


V. Other disclosed matters

(I) Possible risks


1. Electric power market risk

At the 75th General Assembly of the United Nations, China announced that its carbon dioxide

emissions will peak by 2030 and China will achieve carbon neutrality by 2060. Therefore, building a

clean and low-carbon energy system has become the only way to go. In the future, the installed capacity

of wind power and solar power will greatly increase. The decrease of thermal power and the increase of

clean energy installed capacity would bring new and greater challenges to the stability of the grid and

the consumption capacity.

Responses: Firstly, the Company will further take advantage of existing installation structure and

improve the efficiency of large capacity and low emission thermal power units to deliver more unit

operation benefits; secondly, it will actively carry out the research and development of energy storage,

pumped storage, integrated intelligent energy etc., and develop new business area; thirdly, it will

strengthen evaluation during the new energy projects development to ensure that new projects are at a

leading position in technology and operation in the industry and satisfyingly profitable.

2. Tariff risk

The tariff of power generation enterprises faces dual risks, namely, policy adjustment and market

adjustment.

Responses: Currently, power generation enterprises are generally faced with higher marketing

pressure. The Company will actively cope with the new change trend of tariff, strength policy and

market study and, considering the actual situation of power generation enterprises, devote effective

efforts to marketing, to strive for a reasonable tariff.

3. Coal price risk

Since the beginning of this year, as impacted by the limited capacity release and imported coal

quota, coal for power generation has been in short supply. Coal power plants in some places were

continuously in urgent need of coal. In consequence, prices of coal for power generation soared to an all-

time high, making it more difficult to source the coal or guarantee its supply.

Responses: The Company will continue to give play to its collaborative advantage, enhance market

research and judgment, expand joint procurement, strengthen coordination on plans of coal bilateral

negotiation and market based coal plans, optimize inventory structure, continuously arrange internal fuel

management, and strictly control key index, thus to cut fuel cost.

4. Environmental risk

With the revision and implementation of the new Environmental Protection Law, Atmospheric

Pollution Prevention Law, General Planning of Ecological Civilization System Reform, Plan on

Strengthening Atmospheric Pollution Prevention in Energy Industry and other regulations and policies,


21 / 329

the electric power industry is faced with all-around and more stringent supervision of environmental

protection. Meanwhile, the public has been improved in the environmental protection awareness. They

are paying increasingly high attention to and having higher demands for good air quality, thus bringing

about more risks of public opinion on environmental protection.

Responses: The Company will strictly implement the national regulations and standards concerning

environmental protection to ensure that each pollutant emission is within the limit and its environmental

protection facilities operate stably and efficiently. Meanwhile, it will strengthen study and training of

policies and standards, to improve business competence of professional personnel. It will put more

efforts into the promotion of ecological environment protection and building up a positive image of

green and low-carbon development of the Company.

5. Financial risk

Firstly, the development at the midstream of Yalong River and the development and expansion of

Chinese and overseas projects require heavy fund support, bringing certain fund pressure to the

Company. Second, considering the high asset-liability ratio, change in interest rates would directly affect

the debt costs of the Company.

Responses: The Company will, based on the electric power market demand, reasonably control the

project development process, plan in advance, seize opportunities, select financing plans suitable for its

development stage, strive to reduce capital costs, optimize debt structures and prevent capital and

interest rate risks.

6. Extreme climate risk

The Company has a high proportion of hydropower, so the hydropower production and operation

could significantly affect on its profit. Naturally, hydropower is greatly influenced by climate.

Hydropower units of the Company are operated in Sichuan, Yunnan, Gansu and other regions and

basins, and their hydropower generating capacity will be influenced by extreme climates and unstable

incoming water. The hydropower units under construction are primarily in remote regions, which may

be impacted by debris flow and other natural disasters in rainy season, which brings uncertainties to the

commissioning of these units.

Responses: The Company will utilize modern prediction techniques, reasonably schedule each

cascaded hydropower plant, and cooperate with external scheduling institutions, so as to maximize the

utilization of water power resources; ensure internal equipment maintenance to improve equipment

utilization rate; build up the awareness of safety responsibility, and take effective measures to strengthen

construction management in flood seasons, to reduce the impact on projects under construction.

(II) Other disclosed matters



22 / 329

Section IV Corporate Governance

I. Brief introduction to the General Meeting of Shareholders

Meeting Date

Inquiry index of the

website designated for

resolution publishing

Date of disclosing

resolution Resolutions

The first

Extraordinary

General

Meeting of

Shareholders in

2021

January 15, 2021

As detailed on the

website of Shanghai

Stock Exchange:

www.sse.com.cn,

announcement No.:

2021-002

January 16, 2021

All proposals reviewed at the

meeting with resolutions

adopted:

Proposal on Election of

Directors of the Company

The 2nd

Extraordinary

General

Meeting of

Shareholders in

2021

March 10, 2021 Announcement No.:

2021-015 March 11, 2021



adopted:

Proposal on Engagement of

Overseas Law Firms

The 3rd

Extraordinary

General

Meeting of

Shareholders in

2021

April 15, 2021 Announcement No.:

2021-019 April 16, 2021



adopted:

Proposal on Registering and

Releasing Medium-Term Notes

The 4th

Extraordinary

General

Meeting of

Shareholders in

2021

May 6, 2021 Release No.: 2021-029 May 7, 2021



adopted:

Proposal on Election of Independent Directors

General

Meeting of

Shareholders in

2020

June 29, 2021 Announcement No.:

2021-035 June 30, 2021



adopted:

1. 2020 Work Report of the Board of Directors

2. 2020 Work Report of the

Board of Supervisors

3. Report on Final Accounts of

the Company for 2020

4. Business Plan for 2021

5. Profit Distribution Plan of

the Company for 2020

6. Proposal on the Estimated

Ordinary Transactions with Related Parties of the Company

for 2021

7. Proposal on the Change in Registered Capital of the

Company and Amendment to the

Articles of Association of the Company upon Listing on the

London Stock Exchange The

The preferred shareholders whose voting rights are restored request the convening of an

extraordinary general meeting of shareholders


http://www.sse.com.cn/


23 / 329

Information on General Meeting of Shareholders


II. Changes in Directors, Supervisors and Senior Executives


Name Title Manner of change

Zhang Wenping Director Election

Xu Junli Independent Director Election

Shao Lvwei Independent Director Office leaving

Change in the directors, supervisors and senior executives


1. After the original Director Mr. Jiang Hua resigned as the director, Mr. Zhang Wenping was

elected at the 21st meeting of the 11th Board of Directors and the first Extraordinary General Meeting of

Shareholders in 2021 as the Director of the 11th Board of Directors of the Company, in accordance with

the Company Law and Articles of Association, and based on the nomination by SDIC, the controlling

shareholder of the Company. His term of office starts from the date of adopting the resolution approving

him as the Director and ends upon the expiration of the 11th Board of Directors.

2. The original Independent Director Mr. Shao Lvwei shall leave the office upon the expiration of

his six-year term of office. According to the Company Law and Articles of Association, and the opinions

of the Nomination Committee under the Board of Directors, Mr. Xu Junli was elected as the Independent

Director of the 11th Board of Board of Directors of the Company at the 25th meeting of the 11th Board of

Directors and the 4th Extraordinary General Meeting of Shareholders in 2021. His term of offices starts

from the date of adopting the resolution approving him as the Independent Director and ends upon the

expiration of the 11th Board of Directors.

III. Proposal of Profit Distribution and Conversion of Capital Surplus into Share Capital

Semiannual profit distribution plan and plan of conversion of capital surplus into share capital

Distribute profit or convert capital surplus or not No

Number of bonus shares per 10 shares (share) -

Dividends for every 10 shares (including tax)

(yuan) -

Number of shares converted by capital surplus per

10 shares (share) -

Profit distribution plan or plan of conversion of capital surplus into share capital

None

IV. Stock Incentive Plans, Employee Stock Ownership Plans or Other Employee Incentives of the

Company and the Effects

(I) Equity incentives disclosed in the temporary announcements and without progresses or changes

occurring in the follow-up implementation process


(II) Incentives which have not been disclosed in any temporary announcements or with follow-up

actions

Stock ownership incentives


Other notes



24 / 329

Employee stock ownership plans


Other incentives


Section V Environmental and Social Responsibilities

I. Information on environment

(I) Information on environmental protection performances of the companies and their subsidiaries

that are key pollutant discharging units as published by the environmental protection

departments


1. Pollutant discharging


All the power generation enterprises of the Company carry out steady pollution treatment. All of them

have obtained the pollutant discharging permits on time, and strictly abide by the requirements under the

permits. Their pollutant discharging meets the national standards and local requirements.

Province/

city

Power

plant Fuel

SO2 NO

X

Smo

ke &

dust

CO

D

Numb

er of

emissi

on

outlet

s

Layout

of

emissio

n

outlets

Acceptable/unacc

eptable

mg/

N3

mg/

N3

mg/

N3

To

n Nr. Way

Tianjin SDIC

Beijiang

Conventi

onal coal

10.4

2

30.3

5 1.27 0 6

Consist

ent

with

the

emissio

n

license

Acceptable

Guangxi SDIC

Qinzhou

Conventi

onal coal

13.8

2

33.5

3 1.75 0 17

Consist

ent

with

the

emissio

n

license

Acceptable

Fujian

SDIC

Meizhou

wan

Conventi

onal coal

13.1

9 37.4

9 3.08 0 8

Consist

ent

with

the

emissio

n

license

Acceptable

Huaxia

Power

Conventi

onal coal 6.52

34.6

7 2.71

0.0

2 6

Consist

ent

with

the

emissio

n

Acceptable


25 / 329

license

Guizhou

SDIC

Panjiang

(fluidize

d bed

boiler)

Coal

gangue

71.7

9

82.1

5

14.6

6 0 5

Consist

ent

with

the

emissio

n

license

Acceptable

2. Construction and operation of pollutant prevention facilities


All the power generation enterprises of the Company are building pollutant prevention facilities

according to national and local requirements, to ensure the smooth operation of the pollutant prevention

facilities.

3. Environmental impact evaluation on construction projects and other administrative

environmental protection permits


All construction projects of the Company have gone through the environmental impact evaluation, and

have passed the environmental protection acceptance.

4. Emergency response plans for emergent environmental incidents


The Company has made emergency response plans for emergent environmental incidents and strictly

abide by them according to national and local requirements.

5. Environmental self-monitoring programs


The Company carries out online pollutant discharging monitoring according to national and local

requirements. According to the pollutant discharge permit system and self-monitoring regulations, it

carefully makes the self-monitoring plans and strictly carries out the plans.

6. Administrative punishments due to environment issues within the reporting period


All big pollutant discharging units of the Company didn't receive administrative punishments due to

environment issues within the reporting period.

7. Other environment information publicly published


(II) Information on environmental protection of entities of the Company other than the big

pollutant discharging units.


1. Administrative punishments due to environment issues


Entities of the Company other than the big pollutant discharging units didn't receive administrative

punishments due to environment issues during the reporting period.


26 / 329

2. Environment information of entities of the Company other than the big pollutant discharging

units disclosed as those of big pollutant discharging units


All hydropower, wind power and photovoltaic enterprises affiliated to the Company strictly carry out the

environmental protection according to national and local regulations.

3. Reason for not disclosing other environment information


(III) Follow-up progress or change in disclosing environmental information during the reporting

period


(IV) Information contributive to environmental protection, pollution prevention and environmental

responsibility performance


The Company discloses the information contributive to environmental protection, pollution prevention

and environmental responsibility performance in its social responsibility reports.

(V) Measures to reduce carbon emission and their effects during the reporting period


The Company takes the initiatives to respond to the "peak carbon dioxide emissions" and "carbon

neutrality" goals and visions, and build a diversified clean energy supply system through an in-depth

structural adjustment; vigorously advance consumption and emission reduction through technical

transformation; closely trace the low-carbon technical development and application to update its

environmental protection technologies; strengthen the organizational guarantee and improve the carbon

assets management capacity, having achieved marked success in reducing carbon emission.

II. Consolidating Achievements in the Fight against Poverty and Rural Revitalization


In 2021H1, the Company implemented the decisions and plans of the central and local governments

on consolidating achievements in the fight against poverty and in rural revitalization, practiced the

overall rural revitalization plans in all its business, carefully performed the social responsibilities.

(I) Strengthening the organization and leadership, and promoting competent personnel to be

cadres

To further consolidate the achievements in the fight against poverty and fully advance the rural

revitalization, according to the requirements of the central government and the group, the Company and

its holding and investment enterprises take the initiatives to respond to the call of the national and local

governments. Based on recommendation at all levels, four designated supporting cadres were selected

and took a temporary post in the counties and villages designated to be assisted by the Company, to

bring some energy for development to local places.

SDIC Dachaoshan dispatched well-chosen personnel to villages to assist, according to the work

requirements of the Organization Department of Yunnan Provincial Party Committee. Meanwhile, to


27 / 329

ensure the continuity of dispatching personnel to station in villages to assist, personnel stationing in

villages for 2 years would be replaced by other personnel (either green hands or those ever dispatched to

other villages for such work). The leaving personnel is required to instruct the coming personnel, to

make the work handover easier, and improve work efficiency, thus ensuring the continuity of the

assistance project.

(II) Ensuring achievements in the assistance with multiple measures

The Party committee of the Company pays high attention to the counties and villages as the

Company's assistance targets. By actively communicating with cadres dispatched to those counties and

villages, the committee could know well about the assistance performance and help to meet local needs.

Since 2020, the committee strengthened communication with the counties and villages assisted through a

Party branch co-building project, to help to solve problems and improve the assistance performance. In

March 2021, the No.3 Party Branch, considering the hardships facing the cadres dispatched to the village

in work, and following the principle of "promoting Party building, mutual understanding, cooperation

and development through co-building", granted assistance fund of RMB 52,800 to build a staff dining

hall and bathroom in Haojupu Village, to improve the work environment for the cadres stationing in the

village, thus to better motivate them to serve local people.

The CCYL committee of the Company organized student assistance activities in May 2021, and

granted assistance fund of RMB 18,686.33 to buy more than 200 volumes of books (including books

donated voluntarily by the Company's employees in Beijing), a number of computers, printers, audio

sets and other teaching equipment to donate to Jiha Primary School in Pingzhou Town, Pingtang

County, Guizhou Province. Volunteers of the activities interacted with children in the school cheerfully,

and organized an interesting interactive knowledge imparting activity named "electricity knowledge

classroom" to enrich the after-school life of those children.

Yalong Hydro, considering its large number of front-line employees and construction participators,

helped to alleviate poverty by procuring from poverty-stricken places for its dining halls. It spent RMB

1.528 million in procuring agricultural and animal products in 2021H1. Meanwhile, based on the actual

situation of the local place, it supported Kundi Village to build vegetable planting bases, provided local

residents with technical support, and assisted in the vegetable sales by procuring from the village.

SDIC Dachaoshan integrated the achievements of poverty alleviation and rural revitalization, and

carried out massive visit, survey and rectification. Further, it closely cooperated with the local

government on COVID-19 prevention and control, disaster investigation post the Yangbi Earthquake,

industrial development, funeral and interment reform, and land right confirmation.

SDIC Qinzhou assisted Qinghu Village, Napeng Town, Qinnan District, Qinzhou City, Guangxi to

consolidate the poverty alleviation achievements. It supported Xiaole School of Qinghu Primary School,

an assistance target of it, to build a teacher's office and dormitory building with RMB 700,000. It's

estimated to be completed and put into use in the fall quarter of 2021. Right prior to the Children's Day,

the Party committee of SDIC Qinzhou presented school supplies and assistance funds, a total of RMB

1,500, to 22 left-over children, to give the children some encourage.


28 / 329

SDIC Gansu New Energy Co., Ltd. joined forces with Gansu Poverty Alleviation Foundation for

donation activities, donating 60 sets of sporting goods to Lujia Primary School, Jiuxian Township,

Ningxian County, Gansu, mainly to improve the sports facilities of the rural primary school. This

activity costed RMB 29,100, including RMB 13,750 donated by the Party member employees and RMB

15,350 from the Company's poverty alleviation fund.

SDIC Xiaosanxia, highly concerned about consolidating the poverty alleviation achievements and

rural revitalization, incorporated them in its history education, to plan and advance as a whole. In 2021,

it, closely cooperating with its assistance target, made down-to-earth efforts to ensure steady, orderly

and effective progresses in rural revitalization. From May to June, the company supported Wenya

Village, Gaowan Town to promote knowledge of COVID-19 to the villagers and advance the COVID-

19 vaccination.


29 / 329

Section VI Important Matters

I. Fulfillment of Commitments

(I) Commitments of commitment stakeholders including the actual controller, shareholders, affiliates, buyer of the Company and the Company itself

during or as at the reporting period

□Applicable □Inapplicable

Commitment

background

Commitments

Type

Commitment

stakeholders

Commitments

Content

Time and

period of

commitment

With

performance

time limit or

not

Performed

in a

timely

and strict

fashion or

not

Commitments

concerning

significant

asset

restructuring

Address

horizontal

competition

SDIC SDIC committed in the 2002 material asset replacement of the

Company that, after SDIC became the controlling shareholder of

the Company, it wouldn't directly or indirectly participate in any

business or activity where it's a competitor of the Company or its

subsidiaries.

Committed on:

April 25, 2002

Commitment

period: Long

term.

Yes Yes

Address

related-party

transactions

SDIC SDIC committed in the 2002 material asset replacement of the

Company that, after SDIC became the controlling shareholder of

the Company, it would minimize and regulate the related-party

transactions with the Company. In the case of related-party

transactions, it would go through the legal procedures and timely

disclose the relevant information. It undertook not to harm the

legal rights of the Company and other shareholders through

related-party transactions.

Committed on:

April 25, 2002

Commitment

period: Long

term.

Yes Yes

Address

related-party

transactions

SDIC SDIC committed in the 2009 material assets restructuring of the

Company in terms of related-party transaction matters of the

Company and its affiliated companies depositing with SDIC

Finance Co., Ltd., an affiliated company to SDIC, "Where the

Company and its affiliated companies deposit with SDIC Finance

Co., Ltd. and suffer losses due to insolvency of SDIC Finance

Co., Ltd., SDIC would, within 30 working days after receiving a

written notice from the Company concerning the case,

Committed on:

September 16,

2009. Period of

commitment:

Long term.

Yes Yes


30 / 329

compensate the Company in cash according to the report from an

audit institution stating the loss case and amount."

Value

guarantee and

compensation

for assets

received

SDIC SDIC committed in the 2009 material assets restructuring of the

Company, in terms of the damage compensation in the lawsuits

against Yalong Hydro, an affiliated company of the 2009

restructuring target, by Mianning Mianli Rare Earth Ore

Processing Co., Ltd. in May 2009 and by Xichang Chengzong

Mining Co., Ltd. in July 2009, "After this material assets

restructuring, where the Company suffers losses due to the

aforementioned lawsuits, SDIC undertakes to, within 30 working

days after receiving a written notice from SDIC Power stating the

losses, compensate SDIC Power in cash according to the report of

an audit institution stating the loss case and amount."

Committed on:

October 16,

2009.

Commitment

period: When

conditions are

met. The

Chengzong

Mining and

Mianli Rare

Earth cases

have been

closed, without

triggering the

compensation

conditions.

Yes Yes

Commitments

concerning

refinancing

Address

horizontal

competition

SDIC SDIC committed in the 2007 refinancing of the Company, "The

Company is the only domestic capital operation platform of

SDIC, and SDIC has entrusted all thermal power assets good to be

put in the listed company to the Company to manage."

Committed on:

May 28, 2007.

Commitment

period: Long

term.

Yes Yes

Asset

injection

SDIC SDIC committed in the 2010 corporate governance special

activity and refinancing of the Company, "We plan to, after the

Company publicly issues convertible corporate bonds, inject our

independent power generation business assets (excluding the

relevant assets, business or equity of the direct holding listed

companies of SDIC other than the Company ) in the Company in

5 years through assets M&A. SDIC would make and implement

power assets integration plans step by step, considering the

conditions of the relevant assets and the recognition by capital

markets."

Committed on:

September 30,

2010. Original

commitment

period: January

25, 2016. The

commitment

amendment

was adopted at

the first

Extraordinary

General

Yes Yes


31 / 329

Meeting of

Shareholders in

2016.

Asset

injection

SDIC On December 24, 2015, SDIC amended its commitment on the

2010 corporate governance special activity and refinancing of the

Company. The amendment was adopted at the first Extraordinary

General Meeting of Shareholders in 2016. SDIC would inject the

independent power generation business assets within two years

after such assets meet the assets injection conditions in SDIC

Power. Assets injection conditions: 1. The production and

operation conforms to the applicable laws, administrative

regulations and Articles and Association, the national industrial

policies, as well as the laws and regulations on environmental

protection, work safety, land management and antitrust

requirements. 2. The assets concerned are clear in ownership,

meet the listing conditions under the national laws, regulations

and normative documents, and are free from problems like

incomplete property rights or flaws in project investment approval

formalities. 3. The injection conforms to the strategic plan of

SDIC Power, and is contributive to the assets quality, financial

conditions and profitability improvement of SDIC Power. In

principle, the weighted ROAE of the assets proposed to be

injected over the past three accounting years is not lower than

10% if such assets have been operating for three years, and not

lower than 10% over the past two consecutive accounting years if

such assets haven't been operating for three years. The asset-

liability ratio of the assets proposed to be injected at the end of the

last accounting year is not higher than 80%, except for SDIC

Power voluntarily lowering the ROAE and asset-liability ratio. 4.

The assets concerned are not the relevant assets, business or

equity of the direct holding listed companies of SDIC other than

the SDIC Power, and not the projects with coal-electricity

integration business not independent. Such assets are helpful for SDIC Power to remain independent from the actual controller and

its related persons in business, assets, finance, personnel,

Committed on:

December 24,

2015.

Commitment

period: Within

two years after

the injection

conditions are

met.

Yes Yes


32 / 329

institution, etc. 5. The assets concerned are free from material

debt repayment risk, or material contingent matters that could

affect the guarantee, lawsuit or arbitration of the going concern. 6.

Supervision requirements of securities regulatory

institution according to appropriate laws, regulations and

normative documents.

II. Capital occupied by the controlling shareholder and other related party for non-operating purpose


III. Illegal guarantee


IV. Audit of semi-annual report


V. Changes in and disposal of matters involved in non-standard audit opinion about the report for the first half year


VI. Matters Concerning Bankruptcy and Restructuring


VII. Major Litigation and Arbitration

□The Company has major litigation and arbitration matters in this reporting period. √ The Company has no major litigation and arbitration matters in this reporting

period.

VIII. Penalties and rectification of the listed company and its directors, supervisors, senior executives, controlling shareholders and actual controllers on

suspicion of violating laws or regulations.


IX. Credit Conditions of the Company and Its Controlling Shareholder and Actual Controller during the Reporting Period



33 / 329

During the reporting period, the Company and its controlling shareholder and actual controller were free from failing to carry out valid court decisions, or pay any

outstanding matured debts in large amounts.

X. Material Related-Party Transactions

(I) Related-party transactions related to the Company's day-to-day operation

1. Matters disclosed in the temporary announcement and without progresses or changes occurring in the follow-up implementation process


2. Matters disclosed in the temporary announcement, but with progresses or changes during subsequent implementation


It's estimated that in 2021, the average daily deposit balance (RMB) with SDIC Finance Co., Ltd. won't exceed RMB 10 billion, and the actual average daily

deposit balance within the reporting period was RMB 5.256 billion. It's estimated that the average daily deposit balance (foreign currencies) in the year with Rongshi

International Treasury Management Co., Ltd. won't exceed an amount equivalent to USD 1 billion, and the actually daily deposit balance within the reporting period

was USD 0.016 billion. It's estimated that the loan fund (RMB) transactions with SDIC Power and its subsidiaries won't exceed RMB 15 billion, and the actual loan

fund transactions within the reporting period was RMB 3.811 billion. It's estimated that the loan fund transactions (foreign currencies) with Rongshi International

Treasury Management Co., Ltd. won't exceed an amount equivalent to USD 1 billion, and the actual loan fund transactions within the reporting period was USD 0

billion.

It's estimated that in 2021 the related-party transaction amount of procuring goods/services from SDIC and its holding subsidiaries won't exceed RMB 800 million,

and the actual related-party transaction amount within the reporting period was RMB 0.089 billion. It's estimated that in 2021 the related-party transaction amount of

providing goods/services to SDIC and its holding subsidiaries won't exceed RMB 400 million, and the actual related-party transaction amount within the reporting

period was RMB 0.028 billion.

3. Matters undisclosed in the temporary announcement



34 / 329

(II) Related-party transactions concerning assets acquisition or equity acquisition or sales







4. Performances during the reporting period should be disclosed if performance agreement is made


(III) Significant related-party transactions for joint external investments







(IV) Transaction of creditor's rights and debts between related parties








35 / 329

(V) Financial transactions between the Company and the correlated financial agency and between the Company’s holding financial agency and the related

party

√ Applicable □ Inapplicable

1. Deposit transactions



Related party Correlation Daily maximum

deposit limit

Range of

deposit interest

rate

Beginning balance Amount incurred in

current period Closing balance

SDIC Finance Co., Ltd.

Both are

subsidiary

10,000,000,000.00 0.35%-1.50% 5,083,594,541.44 1,182,700,443.08 6,266,294,984.52

Total / / / 5,083,594,541.44 1,182,700,443.08 6,266,294,984.52

2. Loan transactions



Related party Correlation Loan limit Range of loan

interest rate Beginning balance

Amount incurred in

current period Closing balance

SDIC Finance Co.,

Ltd.

Both are

subsidiary 9,000,000,000.00 3.10%-4.65% 4,464,720,220.83 487,286,385.26 4,952,006,606.09

Total / / / 4,464,720,220.83 487,286,385.26 4,952,006,606.09


36 / 329

3. Credit offering or other financial transactions


4. Other notes



37 / 329

(VI) Other material related-party transactions


(VII) Other


XI. Material Contracts and the Performance

1. Custody, Contracts and Leases



38 / 329

2.Major guarantees performed and not completed in the report period



External guaranteesgiven by the Company (excluding those for subsidiaries)

Guarantor

Relation

with the

listed

company

Secured

party Amount

Date of

guarantee

(signingd

ate of

agreement

)

Starting

date

Date of

expirati

on

Type of

guarantee Main debt

Collateral

(if any)

Complete

d Overdue

Overdue

amount

Counter

guarantee

Related

party

guarantee

(yes/ no)

Correlatio

n

SDIC Power Headquart

ers

Inch Cape

Offshore

Limited

4,470.50 May 11,

2016

May 11,

2016

-

13,909.6

7

Joint

liability

guarantee

No No No Yes Joint

venture

Red Rock Power

Limited

Wholly-

owned

subsidiary

Cloud

Snurran

AB

1,537.24 December

16, 2020

December

16, 2020

215,502.

26

Joint

liability

guarantee

No No No Yes Joint

venture

Totalamount of guaranteesin the report period (excluding those for subsidiaries) -42.41

Total balance of guarantee at the end of report period(excluding those for subsidiaries)

(A) 6,007.74

Guarantees given by the Company to the subsidiaries

Total amount of guarantees for subsidiaries in the report period -13,909.67

Total balance of guarantee for subsidiaries at the end of report period(B) 215,502.26

Total amount of guaranteesgiven by the Company (including those for subsidiaries)

Total amount of guarantees (A+B) 221,510.00

Proportion of total amount of guarantees in the net assets of the Company (%) 2.78


39 / 329

Wherein:

Amount of guarantees provided to the shareholder, actual controller and related party

(C)

Amount of debt guarantees directly or indirectly provided to the secured party with an

asset-liability ratio over 70% (D) 107,358.00

Amount of all guarantees in excess of 50% of net assets (E)

Sum of the above threeamounts (C+D+E) 107,358.00

Notes topotential joint liability for payment caused by unexpired guarantees

Notes to guarantees


40 / 329

3 Other material contracts


XII. Other Material Matters



41 / 329

Section VII Share Changes and Shareholders

I. Changes in Share Capital

(I) Changes in shares

1. Changes in shares

Within the reporting period, no changes occurred in the total shares and capital structure of the

Company.

2. Notes on change in shares


3. Effect of share changes after the expiration of the reporting period and before the date of

releasing the semiannual report on financial indicators like earnings per share and net asset per

share


4. Other contents that the Company deems necessary or required by securities regulators to

disclose


(II) Changes in equity with trading limited conditions


II. Shareholder Information

(I) Total number of shareholders:

Total number of shareholders of ordinary shares as of the

end of reporting period (Nos.)

94,795

Total number of preferred shareholders with voting right

recovered as of the end of the reporting period (Nos.)

-

(II) Shareholding by top ten shareholders and top ten tradable shareholders (or shareholders

without trading limited conditions) as of the end of reporting period

Unit: share

Shares held by top ten shareholders

Name of

shareholder

(Full name)

Increase/decrease in the

reporting period

Shares held at

the end of

period

Proportion

(%)

Shares

subject to

selling

restrictions

Pledged, marked

or frozen shares Nature of

shareholder Share

status Quantity

State

Development &

Investment Corp.,

Ltd.

0 3,337,136,589 47.91 0 None -

State-

owned

legal

person

China Yangtze

Power Co., Ltd. 68,037,329 1,038,080,914 14.90 0 None -

State-

owned

legal

person

China Securities

Finance

Corporation

Limited

0 203,657,917 2.92 0 None -

State-

owned

legal

person


42 / 329

Hong Kong

Securities

Clearing Co.,

Ltd.

-23,373,166 128,657,911 1.85 0 None -

Foreign

legal

person

China Yangtze

Power

Investment

Management Co.,

Ltd.

105,672,561 105,672,561 1.52 0 None -

State-

owned

legal

person

Shanghai

Chongyang

Strategic

Investment Co.,

Ltd. -

Chongyang

Strategic Caizhi

Fund

0 90,460,317 1.30 0 None - Unknown

Citibank,

National

Association

-96,528,330 83,321,670 1.20 0 None -

Foreign

legal

person

Shanghai

Chongyang

Strategic

Investment Co.,

Ltd. -

Chongyang

Strategic Juzhi

Fund

0 75,687,364 1.09 0 None - Unknown

National Social

Security Fund

Portfolio 109

4,219,482 63,634,101 0.91 0 None - Unknown

Shanghai

Chongyang

Strategic

Investment Co.,

Ltd. -

Chongyang

Strategic Huizhi

Fund

0 54,988,628 0.79 0 None - Unknown

Share held by top ten unrestricted shareholders

Name of shareholder Quantity of unrestricted

tradable shares held

Type and quantity of shares

Type Quantity

State Development & Investment Corp.,

Ltd. 3,337,136,589

RMB ordinary

shares 3,337,136,589

China Yangtze Power Co., Ltd. 1,038,080,914 RMB ordinary

shares 1,038,080,914

China Securities Finance Corporation

Limited 203,657,917

RMB ordinary

shares 203,657,917

Hong Kong Securities Clearing Co., Ltd. 128,657,911 RMB ordinary

shares 128,657,911

China Yangtze Power Investment

Management Co., Ltd. 105,672,561

RMB ordinary

shares 105,672,561

Shanghai Chongyang Strategic

Investment Co., Ltd. - Chongyang

Strategic Caizhi Fund

90,460,317 RMB ordinary

shares 90,460,317


43 / 329

Citibank, National Association 83,321,670 RMB ordinary

shares 83,321,670



Strategic Juzhi Fund


shares 75,687,364

National Social Security Fund Portfolio 109 63,634,101 RMB ordinary

shares 63,634,101



Strategic Huizhi Fund


shares 54,988,628

Special accounts for repo by top ten

shareholders Inapplicable.

Statements of the above shareholders on

delegating/receiving/waiving voting rights Inapplicable.

Affiliate relations or actions in concert of

the above shareholders

SDIC, the biggest shareholder of the Company, has no affiliated

relation with the rest nine shareholders, and they are not persons acting in

concert as stipulated in the Measures for the Administration of the Takeover

of Listed Companies.

China Yangtze Power Co., Ltd. and China Yangtze Power Investment

Management Co., Ltd. are persons acting in concert.

Shanghai Chongyang Strategic Investment Co., Ltd. - Chongyang

Strategic Caizhi Fund, Shanghai Chongyang Strategic Investment Co., Ltd. -

Chongyang Strategic Juzhi Fund, and Shanghai Chongyang Strategic

Investment Co., Ltd. - Chongyang Strategic Huizhi Fund are persons acting

in concert.

Affiliated relations among other shareholders are unknown and

whether other shareholders are persons acting in concert specified in the

Measures for the Administration of the Takeover of Listed Companies is

unknown.

Description of preferred shareholders with

vote right recovered and number of shares

held

Inapplicable.

Number of shares held by top ten shareholders with trading limited conditions and the trading limited

conditions


(III) Strategic investors or general legal persons being the top ten shareholders due to rights issue


III. Directors, Supervisors and Senior Executives

(I) Changes in shareholding of existing directors, supervisors and senior executives or those leaving

office during the reporting period


Other notes


(II) Stock ownership incentives granted to the directors, supervisors and senior executives during

the reporting period


(III) Other notes



44 / 329

IV. Changes in the Controlling Shareholder and the Actual Controller



45 / 329

Section VIII Preferred Shares



46 / 329

Section IX Bonds

I. Enterprise Bonds, Corporate Bonds and Debt Financing Instruments of Non-Financial Enterprises


(I) Enterprise bonds


(II) Corporate bonds


1. Basic information on corporate bonds

Name of

bond Abbreviation Code Issue date

Value

date

Maturity

date

Balance

of

bonds

Interest

rate

(%)

Repay

principal

with

interests

Trading

floor

Investor

adequacy

arrangements

(if any)

Transaction

mechanics

Any risk of

listing

termination

Corporate

Bonds of

SDIC

Power

Holdings

Co., Ltd. in

2016

(Tranche 1)

16 SDIC

Power 136793

October

26, 2016

October

27, 2016

October

27, 2021 70,000 3.10

The

interest is

paid once

a year and

the

principal

is returned

in full

upon

maturity.

The last

installment

of interest

is paid together

Shanghai

Stock

Exchange

To eligible

investors

Bidding,

quotation,

inquiry and

agreement

trading

No


47 / 329

with the

principal.

Corporate

Bonds of

SDIC

Power

Holdings

Co., Ltd. in

2016

(Tranche 2)

16 SDIC

Control 136838

November

17, 2016

November

18, 2016

November

18, 2021 50,000 3.32

The

interest is

paid once

a year and

the

principal

is returned

in full

upon

maturity.

The last

installment

of interest

is paid

together

with the

principal.

Shanghai

Stock

Exchange

To eligible

investors

Bidding,

quotation,

inquiry and

agreement

trading

No

2018 Public

Offering of

Renewable

Corporate

Bonds to

Eligible

Investors by

SDIC

Power

Holdings

Co., Ltd.

(Tranche 3)

18 Power Y3 143994

July 17,

2018 to

July 18,

2018

July 18,

2018

July 18,

2021 200,000 4.98

The

interest is

paid once

a year and

the

principal

is returned

in full

upon

maturity.

The last

installment

of interest

is paid

together

Shanghai

Stock

Exchange

To eligible

investors

Bidding,

quotation,

inquiry and

agreement

trading

No


48 / 329

with the

principal.

2019 Public

Offering of

Corporate

Bonds to

Eligible

Investors by

SDIC

Power

Holdings

Co., Ltd.

(Tranche 1)

19 SDIC

Power 155457

June 11,

2019 to

June 12,

219

June 12,

2019

June 12,

2029 120,000 4.59

The

interest is

paid once

a year and

the

principal

is returned

in full

upon

maturity.

The last

installment

of interest

is paid

together

with the

principal.

Shanghai

Stock

Exchange

To eligible

investors

Bidding,

quotation,

inquiry and

agreement

trading

No

2020 Public

Offering of

Renewable

Corporate

Bonds to

Eligible

Investors by

SDIC

Power

Holdings

Co., Ltd.

(Tranche 1)

2020 Power

Y1 163599

June 4,

2020

June 4,

2020

June 4,

2023 50,000 3.40

The

interest is

paid once

a year and

the

principal

is returned

in full

upon

maturity.

The last

installment

of interest

is paid

together

Shanghai

Stock

Exchange

To eligible

investors

Bidding,

quotation,

inquiry and

agreement

trading

No


49 / 329

with the

principal.

2020 Public

Offering of

Renewable

Corporate

Bonds to

Eligible

Investors by

SDIC

Power

Holdings

Co., Ltd.

(Tranche 2)

2020 Power

Y2 175432

November

30, 2020

November

30, 2020

November

30, 2022 120,000 4.06

The

interest is

paid once

a year and

the

principal

is returned

in full

upon

maturity.

The last

installment

of interest

is paid

together

with the

principal.

Shanghai

Stock

Exchange

To eligible

investors

Bidding,

quotation,

inquiry and

agreement

trading

No

2021 Public

Offering of

Corporate

Bonds to

Eligible

Investors by

SDIC

Power

Holdings

Co., Ltd.

(Tranche 1)

21 SDIC

Power 175985

April 4,

2021

April 16,

2021

April 16,

2026 60,000 3.70

The

interest is

paid once

a year and

the

principal

is returned

in full

upon

maturity.

The last

installment

of interest

is paid

together

Shanghai

Stock

Exchange

To eligible

investors

Bidding,

quotation,

inquiry and

agreement

trading

No


50 / 329

with the

principal.

2021 Public

Offering of

Renewable

Corporate

Bonds to

Eligible

Investors by

SDIC

Power

Holdings

Co., Ltd.

(Tranche 1)

21 Power Y1 188504 August 6,

2021

August

10, 2021

August

10, 2024 200,000 3.14

The

interest is

paid once

a year and

the

principal

is returned

in full

upon

maturity.

The last

installment

of interest

is paid

together

with the

principal.

Shanghai

Stock

Exchange

To eligible

investors

Bidding,

quotation,

inquiry and

agreement

trading

No

2021 Public

Offering of

Renewable

Corporate

Bonds to

Professional

Investors by

SDIC

Power

Holdings

Co., Ltd.

(Tranche 2)

21 Power Y2 188633 August

20, 2021

August

24, 2021

August

24, 2024 100,000 3.18

The

interest is

paid once

a year and

the

principal

is returned

in full

upon

maturity.

The last

installment

of interest

is paid

together

Shanghai

Stock

Exchange

To eligible

investors

Bidding,

quotation,

inquiry and

agreement

trading

No


51 / 329

with the

principal.


52 / 329

Measures of the Company to deal with the risk of bonds listing termination


Bonds overdue


Notes on bonds overdue


2. Trigger and execution of the clauses of issuer's or investor's option and of investor protection


3. Adjustment of credit rating results


4. Execution and change of guarantee, debt repayment plans and other debt repayment protection measures during the reporting period and their effect


5. Other information on corporate bonds


(1) The principal and the last installment of interest for the 2018 Public Offering of Renewable Corporate Bonds to Eligible Investors by SDIC Power Holdings

Co., Ltd. (Tranche 1) were already paid on March 15, 2021.

(2) The principal and the last installment of interest for the 2018 Public Offering of Renewable Corporate Bonds to Eligible Investors by SDIC Power Holdings

Co., Ltd. (Tranche 2) were already paid on May 9, 2021.


53 / 329

(III)Non-financial enterprise debt financing instrument on the interbank bond market


1. Basic information on debt financing instruments of non-financial enterprises


Name of

bond Abbreviation Code

Issue

date

Value

date

Maturity

date

Balance of

bonds

Interest

rate

(%)

Repay

principal

with

interests

Trading

floor

Investor

adequacy

arrangements

(if any)

Transaction

mechanics

Any risk of

listing

termination

2021

Medium-

Term

Note

Tranche 1

of SDIC

Power

Holdings

Co., Ltd.

21 SDIC

Power

MTN001

102101280 2021-

7-12

2021-

7-14

2024-7-

13 100,000 3.17%

The interest

is paid once

a year and

the last

installment

of interest

is paid

together

with the

principal.

Interbank

bonds

To eligible

investors

Bidding,

quotation,

inquiry and

agreement

trading

No

Measures of the Company to deal with the risk of bonds listing termination


Bonds overdue


Notes on bonds overdue


2. Trigger and execution of the clauses of issuer's or investor's option and of investor protection


3. Adjustment of credit rating results


4. Execution and change of guarantee, debt repayment plans and other debt repayment protection measures during the reporting period and their effect



54 / 329

5. Other information on debt financing instruments of non-financial enterprises



55 / 329

(IV) Losses over 10% of net assets at the end of last year within the consolidated statements of the

Company in the report period


(V) Key accounting data and financial indexes



Key index End of current

report period End of last year

Year-on-year

increase or

decrease (%)

Reason of change

Liquidity ratio 0.61 0.58 5.10

Quick ratio 0.58 0.55 4.91

Asset-liability

ratio (%) 65.73 63.92 2.83

This report period

(January ~ June)

Same period of

last year

Year-on-year

increase or

decrease (%)

Reason of change

Net profits

excluding the

non-recurring

profit and loss

4,056,728,070.86 4,426,791,758.03 -8.36

Total debt ratio of

EBITDA 0.0706 0.0803 -12.05

Interest coverage

ratio 2.61 2.91 -10.06

Cash interest

coverage ratio 3.94 4.27 -7.88

EBITDA interest

coverage ratio 3.16 4.16 -24.04

The rising of coil

price results in the

decrease of net

operating cash flow

Loan repayment

rate (%) 100.00 100.00 -

Interest coverage

(%) 100.00 100.00 -

II. Convertible corporate bonds



56 / 329

Section X Financial Statements

I. Audit report


II. Financial statements

Consolidated Balance Sheet

June 30, 2021

Prepared by: SDIC Power Holdings Co., Ltd.


Item Notes June 30, 2021 December 31, 2020

Current assets:

Monetary capital VII.1 9,581,008,749.33 9,689,936,195.21

Provision of settlement fund

Lending fund

Trading financial assets VII.2 226,396,044.60 1,039,561,849.15

Derivative financial assets

Notes receivable VII.4 361,258,614.41 286,994,735.96

Accounts receivable VII.5 9,244,666,492.39 7,058,315,750.08

Accounts receivable financing VII.6 189,719,611.89 121,353,266.61

Advance payments VII.7 132,544,310.52 105,807,035.11

Premiums receivable

Reinsurance accounts receivable

Reinsurance contract reserves

receivable

Other receivables VII.8 316,564,496.01 539,655,323.30

Including: Interests receivable 122,942.28 6,224,440.53

Dividends receivable 98,766,642.42

Recoursable financial assets acquired

Inventories VII.9 1,174,688,803.46 954,778,616.56

Contract assets

Assets held for sale

Non-current assets due within 1 year


57 / 329

Other current assets VII.13 876,778,795.60 1,034,297,957.11

Total current assets 22,103,625,918.21 20,830,700,729.09

Non-current assets:

Loans and advances

Creditor investments

Other creditor investments

Long-term receivables VII.16 1,172,765,990.43 1,135,038,656.09

Long-term equity investment VII.17 9,836,918,807.18 9,936,747,117.55

Long-term equity instrument

investments VII.18 148,939,847.79 137,904,321.81

Other non-current financial assets

Investment properties VII.20 97,030,414.63 90,230,548.32

Fixed assets VII.21 131,536,971,224.24 134,140,162,340.74

Projects under construction VII.22 59,190,761,394.92 55,436,410,127.42

Productive biological assets

Oil and gas assets

Right-of-use assets VII.25 1,081,277,148.72

Intangible assets VII.26 4,258,293,858.83 4,734,214,222.54

Development expenditures VII.27 25,007,765.44 25,128,060.00

Business reputation

Long-term unamortized expenses VII.29 152,812,253.03 182,597,142.29

Deferred income tax assets VII.30 686,668,145.43 617,589,776.51

Other non-current assets VII.31 2,209,250,470.95 1,642,646,524.60

Total non-current assets 210,396,697,321.59 208,078,668,837.87

Total assets 232,500,323,239.80 228,909,369,566.96

Current liabilities:

Short-term borrowings VII.32 7,491,633,595.71 7,233,513,388.71

Borrowings from central bank

Borrowing fund

Trading financial liabilities


58 / 329

Derivative financial liabilities VII.34 31,667,518.57 62,505,777.66

Notes payable VII.35 104,071,007.20 215,320,000.00

Accounts payable VII.36 2,830,284,529.77 3,073,164,587.90

Advance receipts VII.37 7,040,824.87 15,325,824.67

Contract liabilities

Financial assets sold for repurchase

Deposits from customers and

interbanks

Acting trading securities

Acting underwriting securities

Payroll payable VII.39 107,900,701.01 91,672,662.00

Taxes payable VII.40 1,135,180,627.99 855,686,050.00

Other payables VII.41 9,641,229,483.62 6,439,644,370.04

Including: Interests payable

Dividends payable 4,048,985,723.40 143,960,217.65

Service charges and commissions

payable

Reinsurance accounts payable

Liabilities held for sale

Non-current liabilities due within 1

year VII.43 10,233,500,902.40 15,559,295,232.77

Other current liabilities VII.44 4,516,867,387.79 2,507,086,209.31

Total current liabilities 36,099,376,578.93 36,053,214,103.06

Non-current liabilities:

Insurance contract reserves

Long-term borrowings VII.45 105,594,007,507.72 103,441,137,908.79

Bonds payable VII.46 8,899,880,173.56 5,321,986,742.72

Including: Preferred shares

Perpetual bonds

Lease liabilities VII.47 632,297,926.85

Long-term payables VII.48 443,133,522.89 496,351,343.00


59 / 329

Long-term payroll payable VII.49 456,499,193.25 464,743,525.69

Estimated liabilities VII.50 248,607,453.91 190,711,301.46

Deferred incomes VII.51 298,096,926.85 221,809,217.24

Deferred income tax liabilities VII.30 144,128,429.85 134,065,835.02

Other non-current liabilities

Total non-current liabilities 116,716,651,134.88 110,270,805,873.92

Total liabilities 152,816,027,713.81 146,324,019,976.98

Owners' equities (or shareholders'

equities):

Paid-in capital (or share capital) VII.53 6,965,873,347.00 6,965,873,347.00

Other equity instrument VII.54 3,699,275,943.40 5,698,893,490.57


Perpetual bonds 3,699,275,943.40 5,698,893,490.57

Capital reserve VII.55 7,796,119,185.35 7,762,083,772.77

Less: Treasury shares

Other comprehensive incomes VII.57 18,678,109.32 -109,132,811.65

Special reserve

Surplus reserve VII.58 2,478,222,100.21 2,478,222,100.21

General risk reserve

Undistributed profit VII.60 24,702,111,211.39 24,430,713,338.38

Total owners' equities (or

shareholders' equities) attributable to

parent company

45,660,279,896.67 47,226,653,237.28

Minority shareholders’ equities 34,024,015,629.32 35,358,696,352.70


shareholders' equities) 79,684,295,525.99 82,585,349,589.98

Total liabilities and owners'

equities (or shareholders' equities) 232,500,323,239.80 228,909,369,566.96

Person in charge of the Company: Zhu Jiwei Chief accountant: Zhou Changxin Person in charge of accounting firm: Zhang Song

Corporate Balance Sheet

June 30, 2021

Prepared by: SDIC Power Holdings Co., Ltd.



60 / 329

Item Notes June 30, 2021 December 31, 2020

Current assets:

Monetary capital 4,265,590,643.72 4,085,343,839.65

Trading financial assets 132,515,544.60 946,213,699.15


Notes receivable

Accounts receivable

Accounts receivable financing

Advance payments 96,551.72 96,551.72

Other receivables XVII.2 2,185,763,465.11 299,921,822.54

Including: Interests receivable

Dividends receivable 1,994,438,340.76 109,255,639.65

Inventories

Contract assets


Non-current assets due within 1 year

Other current assets 325,321,875.00 82,651,207.38


Non-current assets:



Long-term receivables 1,194,592,249.98 1,450,808,534.73

Long-term equity investment XVII.3 41,245,827,577.77 40,606,964,389.86


investments 194,415,897.70 187,888,051.70


Investment properties

Fixed assets 931,124.92 1,258,437.38

Projects under construction 344,053.28 344,053.28



61 / 329

Oil and gas assets

Right-of-use assets 26,998,042.89

Intangible assets 1,291,284.80 1,446,303.39

Development expenditures

Business reputation

Long-term unamortized expenses

Deferred income tax assets

Other non-current assets 192,200,000.00


Total assets 49,765,888,311.49 47,662,936,890.78


Short-term borrowings


Derivative financial liabilities

Notes payable

Accounts payable 409,659.57 851,574.31

Advance receipts


Payroll payable 3,349,751.51 2,629,255.16

Taxes payable 205,013.65 1,220,377.72

Other payables 2,216,255,611.15 232,617,199.72




Non-current liabilities due within 1

year 2,195,350,147.01 2,438,180,017.60

Other current liabilities 108,346.68



Long-term borrowings 3,000,429,431.45 2,783,417,021.46


62 / 329

Bonds payable 1,807,791,452.08 1,230,935,342.48


Perpetual bonds

Lease liabilities 27,257,395.69

Long-term payables

Long-term payroll payable 36,213,260.65 36,800,000.00

Estimated liabilities

Deferred incomes

Deferred income tax liabilities




Owners' equities (or shareholders'

equities):

Paid-in capital (or share capital) 6,965,873,347.00 6,965,873,347.00

Other equity instrument 3,699,275,943.40 5,698,893,490.57


Perpetual bonds 3,699,275,943.40 5,698,893,490.57

Capital reserve 11,175,094,832.60 11,139,253,792.47


Other comprehensive incomes -25,122,359.63 -25,122,359.63

Special reserve

Surplus reserve 2,462,359,535.36 2,462,359,535.36

Undistributed profit 16,201,036,943.32 14,695,028,296.56






Consolidated Income Statement

January ~ June 2021


63 / 329


Item Notes Half year of 2021 Half year of 2020

I. Total operating incomes 19,288,873,831.17 17,470,336,116.13

Including: Operating incomes VII.61 19,288,873,831.17 17,470,336,116.13

Interest incomes

Earned premiums

Service charge and commission incomes

II. Total operating costs 14,545,187,406.52 12,294,324,346.04

Including: Operating costs VII.61 11,663,431,026.42 9,199,763,932.71

Interest expenses

Service charge and commission expenses

Surrender value

Net payments for insurance claims

Net provision for insurance liabilities

Bond insurance expenses

Reinsurance expenses

Taxes and surcharges VII.62 412,928,712.82 411,638,707.71

Sales expenses VII.63 12,029,436.89 10,843,059.95

Administration expenses VII.64 539,678,484.25 510,865,977.76

R&D expenses VII.65 5,168,886.93 466,496.79

Financial expenses VII.66 1,911,950,859.21 2,160,746,171.12

Including: Interest expenses 1,967,562,711.77 2,189,574,514.75

Interest incomes 66,706,524.32 46,968,096.44

Plus: Other incomes VII.67 56,330,118.76 34,088,500.31

Investment incomes ("－" for losses) VII.68 168,889,947.72 971,213,097.77

Including: Investment incomes from

affiliated companies and joint ventures 169,826,928.68 398,342,246.37

Incomes from derecognition of financial

assets measured at amortized cost("－" for losses)

Exchange incomes ("－" for losses)


64 / 329

Net exposure hedging incomes ("－" for

losses)

Incomes from change in fair value ("－" for

losses) VII.70 32,521,845.45 -20,290,581.25

Credit impairment losses ("-" for losses) VII.71 -69,461,626.29 -131,262,938.95

Asset impairment losses ("-" for losses) VII.72 474,481.07 440,077.83

Incomes from disposal of assets ("－" for

losses) VII.73 1,087,901.47 632,216.78

III. Operating profits ("－" for losses) 4,933,529,092.83 6,030,832,142.58

Plus: Non-operating incomes VII.74 106,762,316.89 93,296,781.79

Less: Non-operating expenses VII.75 4,713,864.54 16,969,966.83

IV. Total profits ("－" for losses) 5,035,577,545.18 6,107,158,957.54

Less: Income tax expenses VII.76 848,264,513.76 1,059,140,674.26

V. Net profits ("－" for net losses) 4,187,313,031.42 5,048,018,283.28

(1) Classification by business continuity

1. Net profits from continuous

operation (“-” for net losses)

4,187,313,031.42 4,506,115,564.97

2. Net profits from discontinuing operation

(“-” for net losses)

541,902,718.31

(II) Classification by attribution of the ownership

3. Net profits attributable to

shareholders of parent company ("-" for

net losses)

2,336,834,245.77 3,075,779,958.24

4. Minority interest incomes ("-"for net

losses)

1,850,478,785.65 1,972,238,325.04

VI. Net amount of other comprehensive incomes

after tax

123,489,643.19 -36,679,144.39

(I) Net amount of other comprehensive incomes

after tax attributable to shareholders of parent

company

127,810,920.97 -35,289,601.06

1. Other comprehensive incomes which cannot

be reclassified as profit or lossin future

-12,406.27 3,197,609.00

(1) Changes resulting from remeasurement of

defined benefit plans

(2) Other comprehensive incomes that cannot be

converted into profit or loss under equity method

-12,406.27

(3) Changes in fair value of long-term equity

instrument investments

3,197,609.00


65 / 329

(4) Changes in fair value of corporate credit risks

2. Other comprehensive incomes reclassified as

profit or lossin future

127,823,327.24 -38,487,210.06

(1) Other comprehensive incomes that can be

converted into profit or loss under equity method

108,641,828.50 -52,734,015.97

(2) Changes in fair value of other creditor

investments

(3) Amount of financial assets reclassified as other

comprehensive incomes

(4) Credit impairment reserves for other creditor

investments

(5) Cash flow hedging reserves 25,394,000.45 -30,375,779.46

(6) Balances from conversion of foreign-currency

financial statements

-5,763,070.94 44,353,248.52

(7) Others -449,430.77 269,336.85

(II) Net amount of other comprehensive incomes

after tax attributable to minority shareholders

-4,321,277.78 -1,389,543.33

VII. Total comprehensive incomes 4,310,802,674.61 5,011,339,138.89

(I) Total comprehensive incomes attributable to

owners of parent company

2,464,645,166.74 3,040,490,357.18

(II) Total comprehensive incomes attributable to

minority shareholders

1,846,157,507.87 1,970,848,781.71

VIII. Earnings per share:

(I) Basic earnings per share (Yuan/share) 0.3190 0.4380

(II) Diluted earnings per share (Yuan/share) 0.3190 0.4380

For the business combination under the same control in the current period, the net profit of the combined

party was 0 Yuan before combination, and also 0 Yuan in the previous period.


Corporate Income Statement

January ~ June 2021



I. Operating incomes XVII.4 504,245.28


66 / 329

Less: Operating cost

Taxes and surcharges 479,135.55 1,635,141.48

Sales expenses

Administration expenses 69,271,200.98 62,257,490.97

R&D expenses

Financial expenses 102,149,404.72 108,174,008.97

Including: Interest expenses 108,223,881.72 120,929,467.67


Plus: Other incomes 245,988.10 111,039.81

Investment incomes ("－" for

losses) XVII.5 3,713,155,961.52 3,508,572,961.88

Including: Investment incomes from

affiliated companies and joint ventures

56,149,072.35 152,732,942.10

Incomes from derecognition of

financial assets measured at amortized cost

("－" for losses)

Net exposure hedging incomes ("－"

for losses)

Incomes from change in fair value ("

－" for losses)

32,521,845.45 -20,290,581.25

Credit impairment losses ("-" for

losses)

-3,648,210.68 -760,269.14

Asset impairment losses ("-" for

losses)

Incomes from disposal of assets ("－" for losses)

590,226.72

II. Operating profits ("－" for losses) 3,570,966,069.86 3,316,070,755.16

Plus: Non-operating incomes 579,088.50 33,842,537.92

Less: Non-operating expenses 100,138.84 2,198,725.50

III. Total profits ("－" for losses) 3,571,445,019.52 3,347,714,567.58

Less: Income tax expenses

IV. Net profits ("－" for net losses) 3,571,445,019.52 3,347,714,567.58

(I) Net profits from continuous operation

(“-” for net losses)

3,571,445,019.52 3,230,662,065.41


67 / 329

(II) Net profits from discontinuing

operation (“-” for net losses)

117,052,502.17

V. Net amount of other comprehensive

incomes after tax

2,210,620.63

(I) Other comprehensive incomes which

cannot be reclassified as profit or loss in

future

2,210,620.63

1. Changes resulting from

remeasurement of defined benefit

plans

2. Other comprehensive

incomes that cannot be converted

into profit or loss under equity

method

3. Changes in fair value of

long-term equity instrument

investments

2,210,620.63

4. Changes in fair value of

corporate credit risks

(II) Other comprehensive incomes

reclassified as profit or loss in future

1. Other comprehensive incomes that

can be converted into profit or loss under

equity method

2.Changes in fair value of other

creditor investments

3. Amount of financial assets

reclassified as other comprehensive

incomes

4.Credit impairment reserves for other


5.Cash flow hedging reserves

6.Balances from conversion of foreign-

currency financial statements

7. Others

VI. Total comprehensive incomes 3,571,445,019.52 3,349,925,188.21

VII. Earnings per share:

(I) Basic earnings per share (Yuan/share)

(II) Diluted earnings per share (Yuan/share)



68 / 329

Consolidated Cash Flow Statement

January ~ June 2021



I. Cash flows arising from operating

activities:

Cash received from sale of goods

and rendering of service 18,545,671,498.96 17,789,123,772.63

Net increase in deposits from

customers and interbanks

Net increase in borrowings from

central bank

Net increase in borrowings from

other financial institutions

Cash of premiums received from

original insurance contracts

Net cash received from reinsurance

business

Net increase in deposits and

investments from insurers

Cash received from interests, service

charges and commissions

Net increase in borrowing fund

Net increase in repurchase fund

Net cash received from acting

trading securities

Refund of taxes and levies 42,524,037.54 30,000,703.31

Other cash received relating to

operating activities VII.78 492,276,024.08 387,553,956.91

Subtotal of cash inflow from

operating activities 19,080,471,560.58 18,206,678,432.85

Cash paid for purchase of goods and

receiving of service 8,434,499,642.42 5,537,346,496.91

Net increase in customer's loans and

advances

Net increase in deposits in central

banks and interbanks

Cash for compensation payments

under original insurance contracts


69 / 329

Net increase in lending funds

Cash paid for interests, service

charges and commissions

Cash paid for policy dividends

Cash paid to and on behalf of

employees 1,152,695,369.44 1,027,662,769.37

Tax and levy payments 2,505,167,560.42 2,605,872,718.79

Other cash paid relating to operating

activities VII.78 389,791,325.87 319,792,061.15

Subtotal of cash outflow from

operating activities 12,482,153,898.15 9,490,674,046.22


activities 6,598,317,662.43 8,716,004,386.63

II. Cash flows arising from

investment activities:

Cash received from returns of

investments 1,681,842,258.31 916,696,379.00

Cash received from investment

incomes 289,597,730.87 483,766,749.53

Net cash received from disposal of

fixed assets, intangible assets and other

long-term assets

4,133,421.06 880,378.55


subsidiaries and other businesses 1,055,208,652.53


investment activities VII.78 26,647,882.87


investment activities 1,975,573,410.24 2,483,200,042.48

Cash paid for construction of fixed

assets, intangible assets and other long-

term assets

4,218,401,115.94 4,754,260,217.82

Cash paid for investments 482,768,999.04 121,769,346.99

Net increase in pledge loans

Net cash paid for acquisition of

subsidiaries and other businesses 404,547,197.15 533,155,309.24

Other cash paid relating to

investment activities VII.78 66,700.00 14,950.00


investment activities 5,105,784,012.13 5,409,199,824.05


70 / 329


activities -3,130,210,601.89 -2,925,999,781.57

III. Cash flows arising from

financing activities:

Cash received from investors 4,980,000.00 499,962,500.00

Including: Cash contributions to

subsidiaries from minority

shareholders' investment

4,980,000.00

Cash received from borrowings 18,825,679,454.13 14,447,096,002.25


financing activities VII.78 12,951,708.85 12,425,188.62


financing activities 18,843,611,162.98 14,959,483,690.87

Cash paid for repayment of debts 18,225,085,031.46 15,144,661,732.74

Cash paid for distribution of

dividends, profits or interests 4,113,202,333.34 4,118,234,734.76

Including: Dividends and profits

paid by subsidiaries to minority

shareholders

1,606,845,019.60 1,134,032,805.70

Other cash paid relating to financing

activities VII.78 22,802,661.23 3,506,426.29


financing activities 22,361,090,026.03 19,266,402,893.79


activities -3,517,478,863.05 -4,306,919,202.92

IV. Effect of exchange rate change

on cash and cash equivalents -5,733,682.13 -68,316,811.77

V. Net increase in cash and cash

equivalents

-55,105,484.64 1,414,768,590.37

Plus: Beginning balance of cash and

cash equivalents

9,552,821,841.00 8,447,826,019.91

VI. Closing balance of cash and cash

equivalents

9,497,716,356.36 9,862,594,610.28


Corporate Cash Flow Statement

January ~ June 2021




71 / 329

I. Cash flows arising from

operating activities:

Cash received from sale of goods

and rendering of service

Refund of taxes and levies


operating activities

20,347,180.76 48,342,697.38



20,347,180.76 48,342,697.38

Cash paid for purchase of goods

and receiving of service

114,226.00 38,510.00

Cash paid to and on behalf of

employees

43,415,424.51 36,111,517.37

Tax and levy payments 1,040,107.92 3,166,040.41



39,286,817.94 32,155,416.29



83,856,576.37 71,471,484.07


activities

-63,509,395.61 -23,128,786.69

II. Cash flows arising from

investment activities:

Cash received from returns of

investments

1,192,000,000.00 2,263,202,379.00

Cash received from investment

incomes

1,954,561,218.59 1,569,643,064.09


fixed assets, intangible assets and

other long-term assets

615,980.00


subsidiaries and other businesses


investment activities



3,147,177,198.59 3,832,845,443.09

Cash paid for construction of fixed

assets, intangible assets and other

long-term assets

232,500.00 1,099,335.81

Cash paid for investments 1,214,885,202.79 1,187,387,874.40

Net cash paid for acquisition of

subsidiaries and other businesses


72 / 329



56,700.00 11,950.00



1,215,174,402.79 1,188,499,160.21


activities

1,932,002,795.80 2,644,346,282.88

III. Cash flows arising from

financing activities:

Cash received from investors 499,962,500.00

Cash received from borrowings 1,119,955,000.00


financing activities



1,119,955,000.00 499,962,500.00

Cash paid for repayment of debts 2,564,000,000.00 1,280,975,000.00

Cash paid for distribution of

dividends, profits or interests

235,563,628.43 237,519,986.47



101,253.79 34,129.00



2,799,664,882.22 1,518,529,115.47


activities

-1,679,709,882.22 -1,018,566,615.47

IV. Effect of exchange rate change

on cash and cash equivalents

-8,536,713.90

V. Net increase in cash and cash

equivalents

180,246,804.07 1,602,650,880.72

Plus: Beginning balance of cash

and cash equivalents

4,085,343,839.65 1,497,003,604.18

VI. Closing balance of cash and

cash equivalents

4,265,590,643.72 3,099,654,484.90



73 / 329

Consolidated Statement of Changes in Owners' Equities

January ~ June 2021


Item

Half year of 2021

Owner’s equity attributable to parent company

Minority

shareholders’

equities

Total owners'

equities

Paid-in capital (or

share capital)

Other equity instrument

Capital reserve

Less:

Treasury

shares

Other

comprehensive

incomes

Special

reserve Surplus reserve

General

risk

reserve

Undistributed profit Others Subtotal Preferred

shares Perpetual bonds Others

I. Closing

balance of last

year

6,965,873,347.00 5,698,893,490.57 7,762,083,772.77 -109,132,811.65 2,478,222,100.21 24,430,713,338.38 47,226,653,237.28 35,358,696,352.70 82,585,349,589.98

Plus: Changes

in accounting

policies

Correctio

n of

accounting

errors in the

previous

period

Business

combination

under the same

control

Others

II. Beginning

balance of

current year

6,965,873,347.00 5,698,893,490.57 7,762,083,772.77 -109,132,811.65 2,478,222,100.21 24,430,713,338.38 47,226,653,237.28 35,358,696,352.70 82,585,349,589.98

III. Increase or

decrease in the

current period

("-" for

decrease)

-1,999,617,547.17 34,035,412.58 127,810,920.97 271,397,873.01 -1,566,373,340.61 -1,334,680,723.38 -2,901,054,063.99


74 / 329

(I) Total

comprehensive

incomes

127,810,920.97 2,336,834,245.77 2,464,645,166.74 1,846,157,507.88 4,310,802,674.61

(II) Capital

investment or

decrease by

the owners

-1,999,617,547.17 34,035,412.58 -1,965,582,134.59 31,940,175.63 -1,933,641,958.96

1. Ordinary

shares

invested by

shareholders

4,980,000.00 4,980,000.00

2. Capital

invested by

holders of

other equity

instruments

-1,999,617,547.17 -1,999,617,547.17 -1,999,617,547.17

3. Amount of

share payment

recorded in the

owners'

equities

4. Others 34,035,412.58 34,035,412.58 26,960,175.62 60,995,588.21

(III) Profit

distribution -2,065,436,372.76 -2,065,436,372.76 -3,212,778,406.88 -5,278,214,779.64

1. Provision of

surplus reserve

2. Provision of

general risk

reserve

3. Distribution

to owners (or

shareholders)

-1,950,444,537.16 -1,950,444,537.16 -3,212,778,406.88 -5,163,222,944.04

4. Others -114,991,835.60 -114,991,835.60 -114,991,835.60

(IV) Internal

carry-over of

owners'

equities

1. Capital

reserves

converted into


75 / 329

capital (or

share capital)

2. Surplus

reserves

converted into

capital (or

share capital)

3. Surplus

reserves

covering the

losses

4. Retained

incomes from

carry-over of

changes in

defined benefit

plan

5. Retained

incomes from

carry-over of

other

comprehensive

incomes

6. Others

(V) Special

reserve

1. Reserved in

the current

period

2. Used in the

current period

(VI) Others

IV. Closing

balance in the

current period

6,965,873,347.00 3,699,275,943.40 7,796,119,185.35 18,678,109.32 2,478,222,100.21 24,702,111,211.39 45,660,279,896.67 34,024,015,629.32 79,684,295,525.99

Item Half year of 2020


76 / 329

Owner’s equity attributable to parent company

Minority

shareholders’

equities

Total owners'

equities Paid-in capital (or

share capital)


Capital reserve

Less:

Treasury

shares

Other

comprehensive

incomes

Special

reserve Surplus reserve

General

risk

reserve

Undistributed profit Others Subtotal Preferred


I. Closing

balance of last

year

6,786,023,347.00 3,999,018,867.93 6,461,460,075.46 -141,558,497.05 2,098,931,520.69 21,178,636,909.62 40,382,512,223.65 34,011,667,621.63 74,394,179,845.28

Plus: Changes

in accounting

policies

Correction

of accounting

errors in the

previous period

Business

combination

under the same

control

Others

II. Beginning

balance of

current year

6,786,023,347.00 3,999,018,867.93 6,461,460,075.46 -141,558,497.05 2,098,931,520.69 21,178,636,909.62 40,382,512,223.65 34,011,667,621.63 74,394,179,845.28

III. Increase or

decrease in the

current period

("-" for

decrease)

499,962,500.00 7,638,617.08 -35,289,601.06 1,307,700,944.89 1,780,012,460.91 -1,453,793,690.83 326,218,770.08

(I) Total

comprehensive

incomes

-35,289,601.06 3,075,779,958.24 3,040,490,357.18 1,970,848,781.71 5,011,339,138.89

(II) Capital

investment or

decrease by the

owners

499,962,500.00 499,962,500.00 -622,664,130.16 -122,701,630.16

1. Ordinary

shares invested

by shareholders


77 / 329

2. Capital

invested by

holders of other

equity

instruments

499,962,500.00 499,962,500.00 499,962,500.00

3. Amount of

share payment

recorded in the

owners' equities

4. Others -622,664,130.16 -622,664,130.16

(III) Profit

distribution -1,768,079,013.35 -1,768,079,013.35 -2,801,978,342.38 -4,570,057,355.73

1. Provision of

surplus reserve

2. Provision of

general risk

reserve

3. Distribution

to owners (or

shareholders)

-1,664,611,527.02 -1,664,611,527.02 -2,801,978,342.38 -4,466,589,869.40

4. Others -103,467,486.33 -103,467,486.33 -103,467,486.33

(IV) Internal

carry-over of

owners' equities

1. Capital

reserves

converted into

capital (or share

capital)

2. Surplus

reserves

converted into

capital (or share

capital)

3. Surplus

reserves

covering the

losses

4. Retained

incomes from


78 / 329

carry-over of

changes in

defined benefit

plan

5. Retained

incomes from

carry-over of

other

comprehensive

incomes

6. Others

(V) Special

reserve

1. Reserved in

the current

period

2. Used in the

current period

(VI) Others 7,638,617.08 7,638,617.08 7,638,617.08

IV. Closing

balance in the

current period

6,786,023,347.00 4,498,981,367.93 6,469,098,692.54 -176,848,098.11 2,098,931,520.69 22,486,337,854.51 42,162,524,684.56 32,557,873,930.80 74,720,398,615.36


Corporate Statement of Changes in Owners' Equities

January ~ June 2021


Item

Half year of 2021

Paid-in capital (or

share capital)


Capital

reserve

Less: Treasury

shares

Other comprehens

ive incomes

Special

reserve

Surplus

reserve

Undistribut

ed profit

Total owners'

equities Preferred



79 / 329

I. Closing balance of last year

6,965,873,347.00 5,698,893,490.57 11,139,253

,792.47

-

25,122,359.63

2,462,359,5

35.36

14,695,028,

296.56

40,936,286,

102.33

Plus: Changes in accounting

policies

Correction of accounting errors in the previous period

Others

II. Beginning balance of

current year 6,965,873,347.00 5,698,893,490.57 11,139,253

,792.47

-

25,122,359.63

2,462,359,5

35.36

14,695,028,

296.56

40,936,286,

102.33

III. Increase or decrease in the

current period ("-" for decrease)

-1,999,617,547.17 35,841,040

.13

1,506,008,6

46.76

-

457,767,860.28

(I) Total comprehensive

incomes

3,571,445,0

19.52

3,571,445,0

19.52

(II) Capital investment or decrease by the owners -1,999,617,547.17

35,841,040

.13

-1,963,776,5

07.04

1. Ordinary shares invested by shareholders

2. Capital invested by

holders of other equity

instruments

-1,999,617,547.17

-

1,999,617,5

47.17

3. Amount of share payment

recorded in the owners'

equities

4. Others

35,841,040.13

35,841,040.

13


80 / 329

(III) Profit distribution

-

2,065,436,372.76

-

2,065,436,372.76

1. Provision of surplus reserve

2. Distribution to owners (or

shareholders)

-

1,950,444,537.16

-

1,950,444,537.16

3. Others

-

114,991,835.60

-

114,991,835.60

(IV) Internal carry-over of

owners' equities

1. Capital reserves converted into capital (or share capital)

2. Surplus reserves converted

into capital (or share capital)

3. Surplus reserves covering the losses

4. Retained incomes from

carry-over of changes in defined benefit plan

5. Retained incomes from

carry-over of other

comprehensive incomes

6. Others

(V) Special reserve

1. Reserved in the current

period


81 / 329

2. Used in the current period

(VI) Others

IV. Closing balance in the current period 6,965,873,347.00 3,699,275,943.40

11,175,094

,832.60

-25,122,359.

63

2,462,359,5

35.36

16,201,036,

943.32

40,478,518,

242.05

Item

Half year of 2020

Paid-in capital (or

share capital)


Capital

reserve

Less: Treasury

shares

Other comprehens

ive incomes

Special

reserve

Surplus

reserve

Undistribut

ed profit

Total owners'

equities Preferred

shares

Perpetual

bonds Others

I. Closing balance of last year 6,786,023,34

7.00

3,999,018,86

7.93

9,886,246,9

91.68

-

17,316,902.02

2,083,068,9

55.84

13,165,673,

348.75

35,902,714,

609.18

Plus: Changes in accounting

policies

Correction of accounting errors in the previous period

Others

II. Beginning balance of current

year 6,786,023,34

7.00

3,999,018,867.93

9,886,246,9

91.68

-

17,316,902.

02

2,083,068,9

55.84 13,165,673,

348.75 35,902,714,

609.18

III. Increase or decrease in the

current period ("-" for decrease)

499,962,500.

00

7,638,617.0

8

2,210,620.6

3

1,579,635,5

54.23

2,089,447,2

91.94

(I) Total comprehensive incomes

2,210,620.6

3

3,347,714,5

67.58

3,349,925,1

88.21


82 / 329

(II) Capital investment or

decrease by the owners

499,962,500.

00

7,638,617.0

8

507,601,117

.08

1. Ordinary shares invested by shareholders

2. Capital invested by holders of

other equity instruments

499,962,500.

00

499,962,500

.00

3. Amount of share payment recorded in the owners' equities

4. Others

7,638,617.0

8

7,638,617.0

8

(III) Profit distribution

-

1,768,079,013.35

-

1,768,079,013.35

1. Provision of surplus reserve

2. Distribution to owners (or

shareholders)

-

1,664,611,527.02

-

1,664,611,527.02

3. Others

-

103,467,48

6.33

-

103,467,486

.33

(IV) Internal carry-over of

owners' equities

1. Capital reserves converted into

capital (or share capital)

2. Surplus reserves converted into capital (or share capital)

3. Surplus reserves covering the

losses


83 / 329

4. Retained incomes from carry-

over of changes in defined benefit plan

5. Retained incomes from carry-

over of other comprehensive

incomes

6. Others

(V) Special reserve

1. Reserved in the current period

2. Used in the current period

(VI) Others

IV. Closing balance in the current

period 6,786,023,34

7.00

4,498,981,36

7.93

9,893,885,6

08.76

-

15,106,281.39

2,083,068,9

55.84

14,745,308,

902.98

37,992,161,

901.12



84 / 329

III. Company profile

1. Overview


SDIC Power Holdings Co., Ltd. (hereinafter referred to as “Company”, “the Company” or “SDIC Power”)

is a limited liability company incorporated through change of registration after Sinopec Hubei Xinghua

Co., Ltd. (hereinafter referred to as “Hubei Xinghua”) exchanged its assets with State Development &

Investment Corp., Ltd. (hereinafter referred to as “SDIC”).

Hubei Xinghua was solely established by SINOPEC Jingmen General Works in February 1989 and

firstly issued its shares to the public as approved by the Hubei System Restructuring Commission

through its document at [1989] 2 and the Hubei Branch of the People’s Bank of China through its

document at [1989] 101. On January 18, 1996, the public shares were listed on Shanghai Stock

Exchange with the stock code of 600886 as approved by the China Securities Regulatory Commission

through its document at ZZSF [1995] 183. The registered capital of Hubei Xinghua on the listing date

was 58,332,469.00 Yuan. After the allocations of bonus shares with profits and the allocations of bonus

shares and rationed shares with capital reserves, its registered capital increased to 281,745,826.00 yuan.

On February 28, 2000, as approved by the Ministry of Finance of China through the document at CGZ

[2000] 34, SINOPEC Jingmen General Works transferred 162,234,400 shares (state-owned corporate

shares, accounting for 57.58% of total shares) to China Petroleum & Chemical Corp. which became the

largest shareholder of Hubei Xinghua.

On April 28, 2002, Hubei Xinghua signed the Asset Replacement Agreement with SDIC and replaced its

total assets and total liabilities with the equity assets of Gansu Xiaosanxia Hydropower Development

Co., Ltd., Jingyuan Second Power Co., Ltd. and Xuzhou CR Power Co., Ltd. held by SDIC; on the same

day, China Petroleum & Chemical Corp. signed the Share Transfer Agreement with SDIC and

transferred its all equities of Hubei Xinghua to SDIC. The aforesaid asset replacement and share transfer

were mutually conditional. As approved by the Ministry of Finance of China through its document at

CQ [2002] 193 and agreed by the China Securities Regulatory Commission through its document ZJH

[2002] 239, SDIC was exempted from its obligations under the tender offer. The Share Transfer

Agreement took effect from September 30, 2002. The replaced assets were delivered on the same

day.Since then, SDIC became the largest shareholder of Hubei Xinghua, and the business scope of

Hubei Xinghua changed from petroleum industry to power industry.

In December 2002, Hubei Xinghua changed its address registered in the industry and commerce

administration to Lanzhou City, Gansu Province, and changed its name to SDIC Huajing Power

Holdings Co., Ltd.

In September 2004, based on the total share capital of 281,745,826 shares on June 30, 2004, SDIC

Power converted its capital reserves to the share capital by offering 10 shares to every 10 shares held by

each shareholder. After the capital reserves were converted to the share capital this time, the registered

capital of SDIC Power increased to 563,491,652.00 Yuan.

In June 2005, SDIC acquired the 17,500,836 social corporate shares of SDIC Power held by other

shareholders through negotiation, and the shareholding proportion of SDIC increased to 60.69%.

In August 2005, as approved on the second extraordinary general meeting in 2005 of SDIC Power and

agreed by the State-owned Assets Supervision and Administration Commission of the State Council

through Replies to Questions about Reform of Non-trading Shares of SDIC Huajing Power Holdings

Co., Ltd. at GZCQ [2005] 751, SDIC reformed the non-trading shares according to the following plan:

based on the total share capital of 563,491,652 shares and the 214,633,970 trading shares of SDIC

Power, the shareholders of non-trading shares paid 55,804,832 shares of SDIC Power to the shareholders

of trading shares, i.e. every 10 trading shares of the trading share holder will be given 2.6 shares by the

shareholders of non-trading shares. Upon completion of the reform of non-trading shares, the total share

capital of SDIC Power remained the same, all the shares were trading, and the shareholding proportion

of SDIC decreased from 60.69% to 50.98%.


85 / 329

As approved on the first extraordinary general meeting in 2005 of SDIC Power and approved by the

China Securities Regulatory Commission through its document at ZJFXZ [2006] 32, SDIC Power issued

another 250 million trading shares in July 2006. After the issuing of new shares completed, the total

share capital of SDIC Power increased to 813,491,652 shares, and the registered capital of SDIC Power

changed to 813,491,652.00 Yuan, among which 359,083,356 shares were held by SDIC with its

shareholding proportion decreasing from 50.98% to 44.14%.

As approved on the first extraordinary general meeting in 2007 of SDIC Power and approved by the China

Securities Regulatory Commission through its document at ZJFXZ [2007] 261, SDIC Power allocated 3

shares to every 10 shares, totally 244,047,496 shares based on its total share capital of 813,491,652 shares

on its equity registration date (September 6, 2007). Upon this allocation, the total share capital of SDIC

Power increased to 1,054,628,336 shares, and the registered capital of SDIC Power changed to RMB

1,054,628,336.00 Yuan, among which 466,808,363 shares were held by SDIC with its shareholding

proportion increasing from 44.14% to 44.26%.

In March 2009, SDIC Power and SDIC signed the Share Subscription and Asset Acquisition Agreement

of SDIC and SDIC Huajing Power Holdings Co., Ltd., and SDIC Power acquired 100% equities of SDIC

Power Co., Ltd. (hereinafter referred to as “Power Company”) held by SDIC with the privately-issued A

shares as consideration. As reviewed and approved on the 13th meeting of the 7th board of directors of

SDIC Power held on March 2, 2009 and on the second extraordinary general meeting in 2009 held on

June 24, 2009, and also approved by the China Securities Regulatory Commission through Replies to Approving SDIC Huajing Power Holdings Co., Ltd. to Issue Shares to and Acquire Assets from SDIC

(ZJXK [2009] 1234) and Replies to Approving the Exemption of SDIC’s Obligation of Acquiring the Shares of SDIC Huajing Power Holdings Co., Ltd. under Tender Offer (ZJXK [2009] 1235), SDIC

Power was approved to issue 940,472,766 shares at the par value of RMB 1.00 Yuan each and the

offering price of RMB 8.18 Yuan each privately to SDIC so as to acquire the 100% equities of Power

Company held by SDIC. Afterwards, the total share capital of SDIC Power increased to 1,995,101,102

shares, and the registered capital of SDIC Power changed to RMB 1,995,101,102.00 Yuan, among

which 1,407,281,129 shares were held by SDIC with its shareholding proportion up to 70.54%.

As reviewed and approved on the 26th meeting of the 7th board of directors and the second

extraordinary general meeting in 2010 of SDIC Power and also approved by the State-owned Assets

Supervision and Administration Commission of the State Council through Replies to Questions about

Issuance of Convertible Bonds by SDIC Huajing Power Holdings Co., Ltd. (GZCQ [2010] 386) and by

the China Securities Regulatory Commission through Replies to Approving SDIC Huajing Power Holdings Co., Ltd. to Issue Convertible Bonds (ZJXK [2011]85), the Company issued 34 million

convertible bonds openly at the par value of RMB 100 Yuan each and the total offering amount of RMB

3.4 billion Yuan within 6 years starting from January 25, 2011 and ending on January 25, 2017. As

agreed by Shanghai Stock Exchange through its document at SZFZ [2011] 9, the above-mentioned

convertible bonds of 3.4 billion Yuan were listed on Shanghai Stock Exchange from February 15, 2011,

which were called “SDIC CB” with the bond code of “110013”.

As decided on the 7th meeting of the 8th board of directors and the second extraordinary general meeting

in 2011 of SDIC Power and also approved by State-owned Assets Supervision and Administration

Commission of the State Council through Replies to Questions about Public Issuance of Shares by SDIC

Huajing Power Holdings Co., Ltd. (GZCQ [2011] 585) and by the China Securities Regulatory

Commission through Replies to Approving SDIC Huajing Power Holdings Co., Ltd. to Increase Shares

(ZJXK [2011] 1679), SDIC Power issued 350 million RMB ordinary shares (A-share) openly to the public

in November 2011; with the issuance of those shares and the conversion of “SDIC CB” to 1,649 shares,

the total share capital of SDIC Power increased to 2,345,102,751 shares, and the registered capital of SDIC

Power changed to 2,345,102,751.00 Yuan, among which 1,444,604,341 shares were held by SDIC with

its shareholding proportion decreasing from 70.65% to 61.60%.

On February 28, 2012, the Company was renamed as SDIC Power Holdings Co., Ltd.

On June 25, 2012, pursuant to the decision made on the 14th meeting of the 8th board of directors, the

decision made on the general meeting in 2011 and the updated Articles of Incorporation of SDIC Power,

SDIC Power increased its registered capital by RMB 1,172,551,376.00 Yuan fully converted from its

capital reserves. In addition, in 2012, “SDIC CB” of 12,521,000.00 Yuan was converted to 2,641,412 A-


86 / 329

shares of the Company. Upon capital increase, the paid-in capital of the Company reached

3,520,295,539.00 Yuan.

As at July 5, 2013, the “SDIC CB” of 3,388,398,000 Yuan among 3.4 billion Yuan issued by SDIC Power

on January 25, 2011 were converted cumulatively to 1,020,270,888 A shares of SDIC Power (deducting

482,408,719 shares converted in the same period due to the impact of twice conversions of capital reserves

to shares), and the cumulatively converted shares accounted for 51.14% of the total issued shares of

1,995,101,102 shares of SDIC Power before such conversion (deducting 24.18% converted in the same

period due to the impact of twice conversions of capital reserves to shares). Upon such conversion of

“SDIC CB” to shares, the total share capital of SDIC Power increased from 6,515,830,323 shares on June

30, 2013 to 6,786,023,347 shares, among which 3,478,459,944 shares were held by SDIC and accounted

for 51.26% of the total share capital.

On September 24, 2015, the shares of SDIC Power held by SDIC increased by 5,269,808 shares by the

continuous auction on Shanghai Stock Exchange; upon this increase, SDIC held 3,483,729,752 shares of

SDIC Power directly, accounting for 51.34% of the total issued shares of SDIC Power.

On May 18, 2016, SDIC transferred 146,593,163 shares to China COSCO Shipping (Group)

Corporation through negotiation, and upon this transfer, SDIC held 3,337,136,589 shares of SDIC Power

directly, accounting for 49.18% of the total issued shares of SDIC Power, and China COSCO Shipping

(Group) Corporation held 146,593,163 shares of SDIC Power directly , accounting for 2.16% of the total

issued shares of SDIC Power.

On October 22, 2020 (London time), the Company issued and listed 16,350,000 global depository

receipts (“GDR” for short) on London Stock Exchange (before exercising the over-allotment option).

Each GDR represented 10 A-shares of the Company. The basic A-shares newly issued in China and

corresponding to the initially issued 16,350,000 GDR were registered with and deposited at Shanghai

Branch of China Securities Depository and Clearing Company Limited by their holder- Citibank,

National Association, the GDR trustee of the Company on October 20, 2020, and listed on Shanghai

Stock Exchange on October 22, 2020. By exercising the over-allotment option, the price-stabilizing

operator required the Company to issue another 1,635,000 GDR which were delivered to the relevant

investor on November 19, 2020 (London time). The basic A-shares newly issued in China and

corresponding to the over-allocated 1,635,000 GDR were registered with and deposited at Shanghai

Branch of China Securities Depository and Clearing Company Limited by their holder- Citibank,

National Association, the GDR trustee of the Company on November 16, 2020, and listed on Shanghai

Stock Exchange on November 19, 2020. After the issuance of GDR completed, the total share capital of

SDIC Power increased to 6,965,873,347 shares, and the registered capital of SDIC Power changed to

6,965,873,347.00 Yuan, among which 3,337,136,189 shares were held by SDIC with its shareholding

proportion decreasing from 49.18% to 47.91%.

As at June 30, 2021, the accumulated issued share capital stock of SDIC Power totaled 6,965,873,300

shares, and its registered capital was 6,965,873,300.00 Yuan. The registered address of SDIC Power is

Room 1108, Floor 11, No. 147 Building, Xizhimen Nanxiao Street, Xicheng District, Beijing; the address

of its head office is No. 147 Building, Xizhimen Nanxiao Street, Xicheng District, Beijing. The business

scope of SDIC mainly covers: investment, construction, operation and management of energy projects

with focus on electric power generation; development and operation of new energy projects, high and new

technologies and environmental protection industries; development and operation of electric power

products as well as information and consultation services. The parent company of SDIC Power is SDIC,

and the actual controller of SDIC Power is the State-owned Assets Supervision and Administration

Commission.

The registration number of the corporatebusinesslicense of SDIC Power is 911100002717519818. SDIC

Power was listed on the stock exchange on January 18, 1996. SDIC Power is engaged in the electric

power and heat generation and supply businesses.

2. Scope of consolidated financial statements



87 / 329

By June 30, 2021, the subsidiaries within the scope of consolidated financial statements of SDIC Power

are as listed below:

No. Name

1 Yalong River Hydropower Development Co., Ltd.

2 Sichuan Ertan Construction and Consultation Co., Ltd.

3 Sichuan Ertan Industrial Development Co., Ltd.

4 Yalong River Sichuan Energy Co., Ltd.

5 Yalong River Hydropower Liangshan Co., Ltd.

6 Yalong River Huili New Energy Co., Ltd.

7 Yalong River Mianning New Energy Co., Ltd.

8 Yalong River Yanyuan Photovoltaic Co., Ltd.

9 Dechang Wind Power Development Co., Ltd.

10 Yalong River Hydropower Ganzi Co., Ltd.

11 Yalong River Hydropower Panzhihua Dongzilin Co., Ltd.

12 Tianjin SDIC Jinneng Electric Power Co., Ltd.

13 Tianjin Beijiang Environment Friendly Construction Materials Co., Ltd.

14 SDIC Genting Meizhouwan Electric Power Co., Ltd.

15 SDIC Meizhouwan Electricity Sales Co., Ltd.

16 SDIC Qinzhou Electric Power Co., Ltd.

17 Guangxi Guoqin Energy Co., Ltd.

18 SDIC New Energy Investment Co., Ltd.

19 SDIC Gansu New Energy Co., Ltd.

20 SDIC Baiyin Wind Power Co., Ltd.

21 SDIC Jiuquan 1st Wind Power Co., Ltd.

22 SDIC Jiuquan 2nd Wind Power Co., Ltd.

23 SDIC Dunhuang Photovoltaic Power Co., Ltd.

24 SDIC Qinghai Wind Power Co., Ltd.

25 SDIC Golmud Photovoltaic Power Co., Ltd.


88 / 329

26 SDIC Ningxia Wind Power Co., Ltd.

27 SDIC Shizuishan Photovoltaic Power Co., Ltd.

28 SDIC Yan’an New Energy Co., Ltd.

29 SDIC Hami Wind Power Co., Ltd.

30 SDIC Turpan Wind Power Co., Ltd.

31 Tianjin SDIC New Energy Co., Ltd.

32 SDIC Yunnan Wind Power Co., Ltd.

33 SDIC Chuxiong Wind Power Co., Ltd.

34 SDIC Dali Photovoltaic Power Co., Ltd.

35 SDIC Guangxi Wind Power Co., Ltd.

36 SDIC Balikun New Energy Co., Ltd.

37 SDIC Huanneng Electric Power Co., Ltd.

38 Newsky (China) Environment & Tech.Co., Ltd.

39 Guizhou Newsky Environment & Tech Co., Ltd.

40 Guizhou Newsky Kitchen Sludge Treatment Co., Ltd.

41 Newsky Energy (Thailand) Company Limited

42 Newsky (Philippines) Holdings Corporation

43 C&G Environment Protection (Thailand) Company Limited

44 Newsky Energy (Bangkok) Company Limited

45 Redrock Investment Limited

46 Red Rock Power Limited

47 Beatrice Wind Limited

48 Afton Wind Farm (Holdings) Limited

49 Afton Wind Farm Limited

50 Afton Wind Farm (BMO) Limited

51 Benbrack Wind Farm Limited

52 Jaderock Investment Singapore Pte Ltd

53 SDIC KingRock Overseas Investment Management Co., Ltd.


89 / 329

54 Xiamen Huaxia International Power Development Co., Ltd.

55 SDIC Yunnan Dachaoshan Hydropower Co., Ltd.

56 Yunnan Dachao Industry Co., Ltd.

57 SDIC New Energy (Red River) Co., Ltd.

58 SDIC Panjiang Electric Power Co., Ltd.

59 SDIC Guizhou Electricity Sales Co., Ltd.

60 SDIC Gansu Xiaosanxia Electric Power Co., Ltd.

61 SDIC Gansu Electricity Sales Co., Ltd.

62 SDIC Axe New Energy Co., Ltd.

63 Toksun Trina Solar Co., Ltd.

64 Dingbian County Angli Photovoltaic Technology Co., Ltd.

65 Jingbian County Zhiguang New Energy Development Co., Ltd.

66 SDIC Inner Mongolia New Energy Co., Ltd.

67 SDIC Jiangsu New Energy Co., Ltd.

68 Xiangshui Yongneng Solar Power Generation Co., Ltd.

69 Xiangshui Hengneng Solar Power Generation Co., Ltd.

70 Huzhou Xianghui Photovoltaic Power Co., Ltd.

71 SDIC New Energy Co., Ltd.

72 Zhangjiakou Jinko New Energy Co., Ltd.

73 Guyuan County Guanghui New Energy Power Generation Co., Ltd.

74 Shenyang Jingbu Photovoltaic Power Co., Ltd.

75 Fuxin Jingbu Solar Power Co., Ltd.

76 Hengfeng Jinkopower Co., Ltd.

77 Yancheng Intelligent Energy Power Co., Ltd.

78 Hainan Dongfang Gaopai Wind Power Co., Ltd.

79 Dongfang Zhengwei Power Engineering Co., Ltd.

80 SDIC Qinzhou No. 2 Electric Power Co., Ltd.

81 Hezhang Wenyuan New Energy Co., Ltd.


90 / 329

82 SDIC Tibet New Energy Co., Ltd.

83 SDIC Jiuquan New Energy Co., Ltd.

84 SDIC Jimsar New Energy Co., Ltd.

The relevant information of the subsidiaries of SDIC Power is detailed in “IX. Equities in Other

Businesses”.

The changes of consolidated range of current report period are detailed in "VIII. Change of Consolidated

Range".

IV. Basis for preparation of financial statements

1. Basis for preparation

These financial statements are prepared according to the Accounting Standard for Business Enterprises

– Basic Standard, various specific accounting standards, guide to application of accounting standard for

business enterprises, interpretation of accounting standard for business enterprises, and other relevant

provisions published by the Ministry of Finance (hereinafter referred to as “accounting standards for

business enterprises”) and the relevant provisions in the Information Disclosure and Compiling Standards for Companies Offering Securities to the Public No. 15- General Provisions for Financial

Statements published by the China Securities Regulatory Commission.

2. Continuous operation


the financial statements of SDIC Power are prepared on the basis of continuous operation.

V. Major accounting policies and accounting estimates

Hint for specific accounting policies and accounting estimates:


The disclosure below has covered the specific accounting policies and estimates established by the

Company according to the characteristics of its actual production and operation. For details, refer to “V.10

Financial instruments”, “V.23 Fixed assets” and “V.38 Incomes”.

1. Declaration on compliance with accounting standards for business enterprises

The financial statements of the Company meet the requirements of the Accounting Standards for

Business Enterprises, and truthfully and completely reflect the financial conditions, the operation results,

the changes in shareholders' equities, cash flows and other related information of the Company.

2. Accounting period

The financial year of the Company is a calendar year lasting from January 1 to December 31.

3. Business cycle


The business cycle of the Company is 12 months.

4. Reporting currency

The recording currency of the Company is RMB.

5. Accounting treatment methods for business combinations under or not under the same control


Business combination under the same control: The assets and liabilities (including the business

reputation formed by the ultimate controller acquiring the combined party) obtained by the combining


91 / 329

party through the business combination are measured on the basis of the book value of assets and

liabilities of the combined party as shown in the consolidated financial statements of the ultimate

controller on the date of combination. Based on the balance between the book value of the net assets

acquired through the combination and the book value of the consideration paid for combination (or the

total par value of issued shares), the share capital premium in the capital reserves is adjusted. If the share

capital premium in the capital reserves is insufficient to offset, the retained incomes are adjusted.

Business combination not under the same control: The combination costs mean the assets paid or the

liabilities incurred or undertaken and the fair value of equity securities issued by the acquirer to obtain

the control right of the acquiree on the date of acquisition. The positive balance between the

combination cost and the fair value of the identifiable net assets obtained from the acquiree is recognized

as the business reputation; the negative balance between the combination cost and the fair value of the

identifiable net assets obtained from the acquiree is included in the current profits or losses. All

identifiable assets, liabilities and contingent liabilities obtained from the acquiree through the

combination and meeting the recognition conditions are measured as per their fair value on the date of

acquisition.

The direct relevant expenses incurred for business combination are included in the current profits or

losses at the time of occurrence; the transaction expenses spent on the issuance of equity or debt

securities for the purpose of business combination are included in the initial recognition amount of

equity or debt securities.

6. Preparation method of consolidated financial statements


(1) Consolidation scope

The combination scope of consolidated financial statements is confirmed on the basis of control. The

Company and all its subsidiaries are included in the consolidation scope. The control means the power

of a company to own its investee, get a variable return by participating in the relevant activities of the

investee, and affect the amount of return with its right to the investee.

(2) Consolidation procedure

The Company regards the whole enterprise group as an accounting subject, and prepares consolidated

financial statements according to the unified accounting policies to reflect the overall financial

conditions, operation results and cash flows of the enterprise group. The impacts of internal transactions

between the Company and any subsidiary and between the subsidiaries are offset. If the internal

transactions reveal the impairment losses of relevant assets, all the losses are recognized. If any

accounting policy or accounting period used by a subsidiary is different from that used by the Company,

the necessary adjustment shall be made according to the accounting policies and accounting period of

the Company for the purpose of the preparation of consolidated financial statements.

The owners' equities, current net profits or losses and current comprehensive incomes of a subsidiary

belonging to the minority shareholders are presented respectively under the item of owners' equities in

the consolidated balance sheet and the items of net profits and total incomes in the consolidated income

statement. The excess of the current losses of a subsidiary undertaken by the minority shareholders over

the beginning owners' equities of the subsidiary belonging to the minority shareholders is used to offset

the minority shareholders' equities.

1) Addition of any subsidiary or business

If any subsidiary or business is added because of the business combination under the same control in the

reporting period, the operation results and cash flows of the subsidiary or business from the beginning of

combination period to the end of reporting period are included in the consolidated balance sheet, and

meanwhile, the beginning amount in the consolidated balance sheet and the relevant items in the

comparative statement are adjusted as if the reporting entity after combination exists all the time from the

time the ultimate controller starts the control.If the investee under the same control is controlled because

of additional investment or any other reason, the equity investment obtained before acquiring the control

right over the combined party, the relevant profits or losses, other comprehensive incomes and other

changes in net assets recognized from the date of acquiring the original equity or the date when the


92 / 329

combining party and the combined party are under the same control (whichever is later) to the date of

combination are used to offset the beginning retained incomes or current profits or losses in the report

period.

If any subsidiary or business is added because of the business combination not under the same control in

the reporting period, the data of the subsidiary or business is included in the consolidated balance sheet

from the date of acquisition on the basis of the fair value of every identifiable asset, liability and

contingent liability recognized on the date of acquisition.

If the investee not under the same control can be controlled because of additional investment or any other

reason, the equities of the investee held before the date of acquisition are remeasured as per their fair value

on the date of acquisition, and the balance between their fair value and their book value is included in the

current investment incomes. The other comprehensive incomes to be reclassified as profit and loss in

future and the changes in other owners' equities calculated by the equity method, which are related to the

equities of the investee held before the date of acquisition are converted to the investment incomes of the

period corresponding to the date of acquisition.

2) Disposal of subsidiaries

①General disposal method

In case of losing the right to control the investee due to the disposal of partial equity investment or any

other reason, the residual equity investment after disposal is re-measured as per its fair value on the date

of losing the control right. The excess of the sum of the consideration obtained from the disposal of

equities and the fair value of the residual equities over the sum of the net assets of the former subsidiary

that can be obtained as per the original shareholding proportion from the date of acquisition or

combination and the business reputation is included in the investment incomes of the period of losing the

control right. The other comprehensive incomes to be reclassified as profit and loss in future and the

changes in other owners' equities calculated by the equity method, which are related to the equity

investment of the former subsidiary is converted to the current investment incomes when the control

right is lost.

②Stepwise disposal of subsidiaries

If the control right is lost after the stepwise disposal of the equity investment in a subsidiary through

several transactions, those transactions are regarded as a package transaction if the terms, conditions and

economic effects of every transaction relating to the disposal of the equity investment in the subsidiary

meet one or more than one of following situations:

i. Those transactions are concluded at the same time after considering their mutual effects;

ii. Those transactions, as a whole, can achieve a complete business result;

iii. The occurrence of a transaction depends on the occurrence of at least one other transaction;

iv. One transaction is not economic independently, but is economic if considered together with other

transactions.

If all transactions belong to one package transaction, every transaction is subject to the accounting

treatment as one transaction relating to the disposal of a subsidiary and resulting in the loss of control

right; before the control right is lost, the balance between the consideration of every disposal and the net

assets of the subsidiary corresponding to the disposed investment is recognized as other comprehensive

incomes in the consolidated financial statement, and converted to the profits or losses of the period of

losing the control right when the control right is lost.

All transactions which do not belong to a package transaction are subject to the accounting treatment by

the partial disposal of equity investment in the subsidiary as if the control right is not lost before the

control right is lost, or subject to the accounting treatment by the general disposal method for the

disposal of subsidiary when the control right is lost.

3) Acquisition of minority equities of subsidiaries

Considering the difference between the new long-term equity investment acquired by the acquisition of

minority equities and the net assets of the subsidiary that can be obtained as per the new shareholding


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proportion continuously from the date of acquisition or combination, the share capital premium in the

capital reserves on the consolidated balance sheet is adjusted; if the share capital premium in the capital

reserve is insufficient to offset, the retained incomes are adjusted.

4) Partial disposal of equity investment in a subsidiary under the condition of not losing control right

Due to the difference between the disposal consideration and the net assets of the subsidiary that can be

obtained relating to the disposal of long-term equity investments continuously from the date of

acquisition or combination, the share capital premium in the capital reserves on the consolidated balance

sheet is adjusted; if the share capital premium in the capital reserve is insufficient to offset, the retained

incomes are adjusted.

7. Classification of joint arrangement and accounting treatment method for joint operation


The joint arrangement is divided into joint operation and joint venture.

The joint operation means the joint arrangement under which the cooperative party owns the related

assets and undertakes the related liabilities.

The Company recognizes the following items related to the distribution of profits in the joint operation:

(1) Recognize the assets held solely by the Company and the assets held jointly according to the

contribution of the Company;

(2) Recognize the liabilities undertaken solely by the Company and the liabilities undertaken jointly

according to on the contribution of the Company;

(3) Recognize the income from the output of joint operation output owned by the Company;

(4) Recognize the income from the sale of joint operation according to the contribution of the Company;

(5) Recognize the expenses incurred solely and the expenses incurred from the joint operation according

to the contribution of the Company.

The Company calculates its investment in the joint venture by the equity method; see “V.21 Long-term

equity investments” for details.

8. Standard for determination of cash and cash equivalents

The cash equivalents mean the investments held by an enterprise which are featured by the short term

(due in three months from the date of acquisition), high liquidity, easy conversion to the case of known

amount, and low value change risk.

9. Conversion of foreign-currency transactions and statements


(1) Foreign-currency transactions

The foreign-currency amount of a foreign currency transaction is converted into RMB amount for

recording at the spot exchange rate on the date of transaction.

On the balance sheet date, the balance of the foreign-currency monetary item is converted at the spot

exchange rate on the date of balance sheet, and the balance of exchange incurred is included in the

current profits or losses, except for the balance of exchange caused by the foreign-currency borrowings

related to the acquisition of the assets meeting the capitalization conditions, which will be treated as per

the capitalization principles of borrowing costs.

(2) Conversion of foreign-currency financial statements

The asset and liability items in the balance sheet are converted at the spot exchange rate on the date of

balance sheet; except for “undistributed profits”, other items under “owners' equities” are converted at the

spot exchange rate on the date of occurrence. The income and expense items in the income statement are

converted at the spot exchange rate on the date of occurrence.


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In case of disposal of any overseas business, the balances from conversion of foreign-currency financial

statements related to the overseas business are transferred to the current profits or losses of disposal from

the “owners' equities” item.

10. Financial instruments


When the Company is a party to any financial instrument contract, a financial asset, financial liability or

equity instrument is recognized.

(1) Classification of financial instruments

According to the Company’s business mode related to the management of financial assets and the

contract cash flow characteristics of financial assets, the financial assets are classified into the

followings at the time of initial recognition: financial assets measured at amortized cost, financial assets

measured at fair value and with change included in other comprehensive incomes, and financial assets

measured at fair value and with change included in current profits or losses.

The Company will recognize the financial assets which meet the following conditions but are not financial

assets measured at fair value and with change included in current profits or losses as the financial assets

measured at amortized cost:

－ The business mode aims to acquire the contract cash flow;

－ The contract cash flow is just related to the payment of the principal and the interest of outstanding

principal.

The Company will recognize the financial assets which meet the following conditions but are not the

financial assets measured at fair value and with change included in current profits or losses as the financial

assets measured at fair value and with change included in other comprehensive incomes (debt instrument):

－ The business mode aims to acquire the contract cash flow and sell the related financial assets;

－ The contract cash flow is just related to the payment of the principal and the interest of outstanding

principal.

At the initial recognition, the Company can irrevocably designate the non-trading equity instrument

investments as the financial assets measured at fair value and with change included in other

comprehensive incomes (equity instrument). This designation is made on the basis of single investment,

and in the view of the issuer, the relevant investment meets the definition of equity instrument.

Except for the above-mentioned financial assets measured at amortized cost or fair value and with

change included in other comprehensive incomes, the Company will classify all the other financial

assets as the financial assets measured at fair value and with change included in current profits or losses.

If the accounting mismatch can be eliminated or reduced significantly at the initial recognition, the

Company can irrevocably designate the financial assets which should be measured at amortized cost or

fair value and with change included in other comprehensive incomes as the financial assets measured at

fair value and with change included in current profits or losses.

At the initial recognition, the financial liabilities are classified as the financial liabilities measured at fair

value and with change included in current profits or losses and the financial liabilities measured at

amortized cost.

At the initial recognition, the financial liabilities meeting one of following conditions can be designated

as the financial liabilities measured at fair value and with change included in current profits or losses:

1) The designation can eliminate or significantly reduce the accounting mismatch;

2) Pursuant to the enterprise risk management or investment strategy stated in the formal written

documents, the financial liability portfolio or the financial asset and financial liability portfolio is managed

and evaluated on the basis of fair value, and thus reported to the key management personnel within the

enterprise;

3) The financial liability contains the embedded derivatives which shall be broken down separately.


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(2) Recognition basis and metering method of financial instruments

1) Financial assets measured at amortized cost

The financial assets measured at amortized cost include notes receivable, accounts receivable, other

receivables, long-term receivables and creditor investments, etc., and are measured initially at fair value,

and the related transaction costs are included in the initially recognized amount; the accounts receivable

which do not contain any significant financing composition and the accounts receivable containing the

financing composition not longer than 1 year which are not considered as determined by the Company

are measured initially at contract price.

The interest calculated by the effective interest method during the holding period is included in the current

profits or losses.

In case of recovery or disposal, the difference between the received price and the book value of the

financial asset is included in the current profits or losses.

2) Financial assets measured at fair value and with change included in other comprehensive incomes

(debt instrument)

The financial assets measured at fair value and with change included in other comprehensive incomes

(debt instrument) include the accounts receivable financing and other creditor investments, etc., and are

measured initially at fair value, and the related transaction costs are included in the initially recognized

amount. Subsequently, those financial assets are measured at fair value, and the changes in their fair values

excluding the interests calculated by the effective interest method, the impairment losses and the exchange

gains are included in the other comprehensive incomes.

At the derecognition, the accumulated gains or losses previously included in the other comprehensive

incomes shall be transferred out from the other comprehensive incomes and included in the current

profits or losses.

3) Financial assets measured at fair value and with change included in other comprehensive incomes

(equity instrument)

The financial assets measured at fair value and with change included in other comprehensive incomes

(equity instrument) include the long-term equity instrument investments, etc., and are measured initially

at fair value, and the related transaction costs are included in the initially recognized amount. Subsequently,

those financial assets are measured at fair value, and the changes in their fair values are included in the

other comprehensive incomes. The acquired dividends are included in the current profits or losses.

At the derecognition, the accumulated gains or losses previously included in the other comprehensive

incomes shall be transferred out from the other comprehensive incomes and included in the retained

incomes.

4) Financial assets measured at fair value and with change included in current profits or losses

The financial assets measured at fair value and with change included in current profits or losses include

trading financial assets, derivative financial assets and other non-current financial assets, etc., and are

measured initially at fair value, and the related transaction costs are included in the current profits or

losses. Subsequently, those financial assets are measured at fair value, and the changes in their fair

values are included in the current profits or losses.

5) Financial liabilities measured at fair value and with change included in current profits or losses

The financial liabilities measured at fair value and with change included in current profits or losses include

trading financial liabilities and derivative financial liabilities, etc., and are measured initially at fair value,

and the related transaction costs are included in the current profits or losses. Subsequently, those financial

liabilities are measured at fair value, and the changes in their fair values are included in the current profits

or losses.

At the derecognition, the difference between the book value and the paid consideration is included in the

current profits or losses.

6) Financial liabilities measured at amortized cost


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The financial liabilities measured at amortized cost include short-term borrowings, notes payable,

accounts payable, other payables, long-term borrowings, bonds payable and long-term payables, and are

measured initially at fair value, and the related transaction costs are included in the initially recognized

amount.

The interest calculated by the effective interest method during the holding period is included in the current

profits or losses.

At the derecognition, the difference between the paid consideration and the book value of the financial

liability is included in the current profits or losses.

(3) Derecognition and transfer of financial assets

The Company will de-recognize a financial asset when one of following conditions is met:

－ The contract right to acquire the cash flow related to the financial asset terminates;

－ The financial asset has been transferred, and all the risks and remunerations related to the ownership

of the financial asset have been transferred to the transferee;

－ The financial asset has been transferred, and the control on the financial asset is not retained even if

the Company does not transfer or retain almost all the risks and remunerations related to the ownership

of the financial asset.

In case of transfer of any financial asset, the financial asset is not derecognized if almost all the rights and

remunerations related to the ownership of the financial asset are retained.

To determine whether the transfer of a financial asset meets the above-mentioned derecognition conditions,

the principle of “substance overweighs form” shall be followed.

The Company classifies the transfer of financial assets into the overall transfer and the partial transfer.

For the overall transfer of financial asset meeting the derecognition conditions, the difference between

the following two amounts is included in the current profits or losses:

1) Book value of the transferred financial asset;

2) Sum of the consideration received through the transfer and the accumulative changes in the fair value

directly included in the owners’ equities (if the involved transferred financial asset is the financial asset

measured at fair value and with change included in other comprehensive incomes (debt instrument)).

For the partial transfer of financial asset meeting the derecognition conditions, the whole book value of

the transferred financial asset is apportioned between the derecognized part and the non-derecognized

part according to their relative fair values, and the difference between the following two amounts is

included in the current profits or losses:

1) Book value of the derecognized part;

2) Sum of the consideration of the derecognized part and the amount responding to the derecognized part

in the accumulative changes in the fair value directly included in the owners’ equities (if the involved

transferred financial asset is the financial asset measured at fair value and with change included in other

comprehensive incomes (debt instrument)).

If the transfer of a financial asset does not meet the derecognition conditions, the financial asset shall

still be recognized, and the received consideration is recognized as a financial liability.

(4) Derecognition of financial liabilities

When the current obligations of a financial liability are discharged wholly or partially, the financial

liability is derecognized wholly or partially; if the Company signs an agreement with the creditor to replace

the existing financial liability with a new one, and the contract terms of the new financial liability are

different materially from those of existing financial liability, the existing financial liability is derecognized

while the new financial liability is recognized.

When all or part of the contract terms of existing financial liability are modified materially, the financial

liability is derecognized wholly or partially, and the financial liability under the new contract terms is

recognized as a new financial liability.


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When a financial liability is derecognized wholly or partially, the difference between the book value of

the derecognized financial liability and the paid consideration (including the non-cash assets that are

transferred out or the new financial liability that is undertaken) is included into the current profits or losses.

If a financial liability is redeemed partially by the Company, the whole book value of the financial

liability is allocated at the relative fair values of the part that is still recognized and the part that is

derecognized on the date of redemption. The difference between the book value allocated to the part that

is derecognized and the paid consideration (including the non-cash assets that are transferred out or the

new financial liability that is undertaken) is included into the current profits or losses.

(5) Determination methods for fair values of financial assets and liabilities

The fair value of the financial instrument with an active market is determined according to the quoted

price on the active market. The fair value of the financial instrument without an active market is

determined by the valuation technique. For the purpose of valuation, the Company uses the valuation

technique which is applicable in the current situation and is supported by the sufficient available data

and other information, selects the input value which is consistent with the characteristics of the asset or

liability considered by the market participant in the trade of relevant asset or liability, and gives priority

to the relevant observable input value. Only when the relevant observable input value is unavailable or

infeasible, the unobservable input value is used.

(6) Test method and accounting treatment method of financial asset impairment

The Company estimates the expected credit losses of financial assets measured at amortized cost,

financial assets measured at fair value and with change included in other comprehensive incomes (debt

instrument) and financial guarantee contracts separately or in a portfolio.

Considering the related past events, current conditions, predictions about future economic conditions and

other reasonable and proven information, and weighted by the default risk, the Company calculates the

probability weighted amount of present value of the difference between the cash flow receivable from

the contract and the expected cash flow, and recognizes the expected credit loss.

If the credit risk of the financial instrument has increased significantly since the initial recognition, the

Company measures the loss reserve according to the amount of the expected credit loss throughout the

whole duration of the financial instrument; if the credit risk of the financial instrument has not increased

significantly since the initial recognition, the Company measures the loss reserve according to the

amount of the expected credit loss in the following 12 months of the financial instrument. The increase

in the loss reserve or the amount carried back incurred is included in the current profits or losses as a

impairment loss or gain.

By comparing the default risks of a financial instrument on the date of balance sheet and on the date of

initial recognition, the Company determines the relative change in the default risk during the expected

duration of the financial instrument, and thus evaluates if the credit risk of the financial instrument has

increased significantly since the initial recognition. Generally, if a financial instrument is overdue for

more than 30 days, the Company thinks that the credit risk of the financial instrument has significantly

increased, unless there is conclusive evidence proving that the credit risk of the financial instrument has

not significantly increased since the initial recognition.

If the credit risk of the financial instrument is lower on the date of balance sheet, the Company thinks that

the credit risk of the financial instrument has not increased significantly since the initial recognition.

If there is any objective evidence proving that a financial asset has suffered a credit impairment, the

Company will make provision for the impairment of the financial asset separately.

1) Recognition standard and provision method for bad debt reserves of the accounts receivable for which

the bad debt reserves are provided separately:

For the accounts receivable for which the bad debt reserves are provided separately, the Company

calculates their expected credit losses separately; the Company calculates the financial assets without

expected credit loss separately, including the calculation of the financial asset portfolio with similar

credit risk characteristics. The separately calculated accounts receivable whose credit losses have been

recognized are excluded from the calculation of the accounts receivable portfolio with similar credit risk

characteristics.


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With reference to the historical credit loss experience, in combination with the current conditions and the

forecast of future economic conditions, and by estimating the default exposure, default probability, loss

given default, credit risk conversion factor for off-balance sheet items and other parameters of single

financial instrument or financial instrument portfolio, the Company calculates the expected credit loss.

① Receivable bank and commercial acceptance bills;

② Accounts receivable, each with significant amount and bad debt reserve;

The Company recognizes the new energy subsidies, each with amount of RMB 10 million Yuan or

above and the other receivables and long-term receivables, each with an amount of RMB 1 million Yuan

or above as the account receivable with significant amount.

③ Accounts receivable, each without significant amount but with bad debt reserve;

The Company calculates the expected credit loss of the single account receivable without significant

amount but meeting the following characteristics separately, and recognizes the expected credit losses

according to the negative difference between the present value of its future cash flow and the its book

value if there are objective evidences proving the occurrence of losses:

The accounts receivable in dispute with the other party or involved in any lawsuit or attribution; the

accounts receivable for which there are obvious evidences proving that the debtor cannot perform its

repayment obligation.

2) Determination basis and calculation method for the accounts receivable whose expected credit losses

are calculated as per the credit risk portfolio:

The recovery probability of accounts receivable - low risk portfolio – electricity and heating fees

receivable and other accounts is higher than the general claims obviously, and the historical experience

has proven that they are the accounts receivable with extremely low recovery risk.

For the accounts receivable divided to portfolios, the Company obtains the expected loss rate

corresponding to every age range by counting the migration rates of accounts receivable of different

ages and considering the cumulative changes in the migration rates of every age range, and thus

calculates the expected credit losses of different ages.

For the accounts receivable and contract assets incurred by the transactions defined in the Accounting

Standards for Business Enterprises No.14 – Revenues (2017), no matter whether any major financing is

included, the Company always calculates their loss reserves according to the expected credit losses during

their whole duration.

For the lease receivables, the Company always calculates their loss reserves according to the expected

credit losses during their whole duration.

If the contract cash flow of a financial asset cannot be recovered wholly or partially as per the reasonable

exception of the Company, the book balance of the financial asset is written down directly.

11. Notes receivable

Determination method and accounting treatment method for expected credit losses of notes

receivable


See "V.10 Financial instruments" for details.

12. Accounts receivable

Determination method and accounting treatment method for expected credit losses of accounts

receivable



13. Accounts receivable financing



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14. Other receivables

Determination method and accounting treatment method for expected credit losses of other

receivables



15. Inventories


(1) Classification and cost of inventories

The inventories are classified as in-transit materials, raw materials, revolving materials, in-stock goods

and shipped goods, etc.

The inventories are measured initially at their costs which include the purchase cost, processing cost and

other expenses necessary to make the inventories available at the current site and condition.

(2) Valuation method for shipped inventories

At the time of shipping, the inventories are evaluated by the weighted average method.

(3) Determination basis for net realizable values of different inventories

On the date of balance sheet, the inventories shall be measured at their cost or net realizable value

(whichever is lower). When the costs of inventories are higher than their net realizable value, a provision

shall be made for the depreciation of inventories. The net realizable value means the balance of the

estimated selling price of an inventory deducting the estimated cost incurred before completion, the

estimated selling expense and relevant taxes and charges during the daily activities.

For the commodity inventories directly used for sale, such as finished products, in-stock goods and

materials for sale, their net realizable value shall, in the course of normal production and operation, be

determined by deducting the estimated selling expenses and relevant taxes and charges from their

estimated selling price; for the material inventories that need processing, their net realizable value shall,

in the course of normal production and operation, be determined by deducting the estimated costs, selling

expenses and relevant taxes and charges from the estimated selling price of their finished products; for the

inventories held for the purpose of executing the sales contract or labour contract, their net realizable value

is calculated on the basis of their contract price; if the quantity of inventories held is more than the quantity

ordered under the sales contract, the net realizable value of the extra inventories is calculated on the basis

of the general selling price.

If the factors affecting the write-down of inventory value have disappeared after a provision is made for

depreciation of inventories, resulting in the net realizable value of the inventory higher than its book value,

a reversal shall be made in the originally provided depreciation reserve of inventory, and the amount of

reversal will be included in the current profits or losses.

(4) Inventory system

The perpetual inventory system is used.

(5) Amortization method of low-value consumables and packing materials

1) The low-value consumables are amortized by the one-off write-off method;

2) The packing materials are amortized by the one-off write-off method.

16. Contract assets

(1) Recognition method and standard for contract assets


The Company presents the contract assets or contract liabilities in the balance sheet according to the

relationship between the performance obligation and the customer's payment. The Company’s right to


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receive a consideration for the transfer of goods or service to its customer (dependent on many factors

other than time lapse) is presented as a contract asset. The contract assets and contract liabilities under

the same contract are presented with their net value. The unconditional right (only dependent on the time

lapse) of the Company to acquire a consideration from its customer is presented separately as a account

receivable.

(2) Determination method and accounting treatment method for expected credit losses of contract

assets



17. Assets held for sale


The non-current asset or disposal groups, which are sold (including the non-monetary asset exchange

with the commercial essence) to recover their book value, instead of continuous use, is classified as the

assets held for sale.

The Company classifies the non-current asset or disposal groups that meet the following conditions as the

assets held for sale:

(1) They can be sold immediately under the current conditions according to the selling practices of such

asset or disposal group in the similar transactions; and

(2) They are very likely to be sold, that is, the Company has already made a resolution on a sales plan

and obtained the definite purchase promise, and it is expected that the sale will be completed in one year.

The approval of the relevant authority or regulatory agency of the Company that is required by the sale

according to the relevant provisions have been obtained.

For the non-current asset (excluding the financial asset, the deferred income tax asset or the asset formed

by the payroll) or disposal group classified as the asset held for sale, if its book value is higher than the

balance of its fair value deducting the selling expense, its book value is written down to the balance of

its fair value deducting the selling expense, the write-down amount is recognized as the asset impairment

loss and included in the current profits or losses, and an impairment reserve of asset held for sale is

provided.

18. Creditor investments

Determination method and accounting treatment method for expected credit losses of creditor

investments


19. Other creditor investments

Determination method and accounting treatment method for expected credit losses of other



20. Long-term receivables

Determination method and accounting treatment method for expected credit losses of long-term

receivables



21. Long-term equity investment


(1) Judgement standard for joint control and significant influence


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The joint control means the control shared over an arrangement in accordance with the relevant

agreement, the related activities of which must be agreed upon by all parties sharing the control right.

When the Company and its partner jointly exercise a control over the investee and have the right to the

net assets of the investee, the investee is regarded as a joint venture of the Company.

The significant influence means having the power to participate in the decision-making in connection

with the finance and operation of the investee, but unable to control or jointly control the formulation of

relevant policies. When the Company can exert a significant influence over the investee, the investee is

regarded as an affiliated company of the Company.

(2) Determination of initial investment cost

1) Long-term equity investments formed by business combination

For the long-term equity investment in a subsidiary formed by the business combination under the same

control, the book value of the owners' equities obtained from the combined party shown on the

consolidated financial statement of the ultimate controlling party on the date of combination is

recognized as the initial investment cost of long-term equity investment. The share capital premium in

the capital reserves is adjusted according to the difference between the initial investment cost of long-

term equity investment and the book value of the paid consideration; if the share capital premium in the

capital reserves is insufficient to offset, the retained income is adjusted. If the investee under the same

control can be controlled because of additional investment or any other reason, the share capital

premium is adjusted according to the difference between the initial investment cost of long-term equity

investment recognized by the above principles and the sum of the book value of the long-term equity

investment before combination and the book value of the consideration paid for new shares; if the share

capital premium is insufficient to offset, the retained income is written down.

For the long-term equity investment in a subsidiary formed by the business combination not under the

same control, the combination cost determined on the date of acquisition is recognized as the initial

investment cost of long-term equity investment. If the investee not under the same control can be

controlled because of additional investment or any other reason, the sum of the book value of originally

held equity investment and the cost of new investment is recognized as the initial investment cost.

2) Long-term equity investments acquired by different methods other than business combination

For the long-term equity investment acquired by cash payment, the actually paid purchase price is

recognized as the initial investment cost.

For the long-term equity investment acquired by issuing equity securities, the fair value of the issued

equity securities is recognized as the initial investment cost.

(3) Follow-up measurement and profit or loss recognition method

1) Long-term equity investment

Except for the investments meeting the held-for-sale conditions, the Company’s long-term equity

investments in its subsidiaries are calculated by the cost method. The Company recognizes the current

investment incomes according to the cash dividends or profits declared and distributed by the investee,

except for the declared but undistributed cash dividends or profits included in the price or consideration

actually paid when acquiring the investment.

2) Long-term equity investments calculated by the equity method

The long-term equity investments in affiliated companies and joint ventures are calculated by the equity

method. If the initial investment cost is more than the fair value of the identifiable net assets of the

investee that can be acquired at the moment of investment, the initial investment cost of long-term

equity investment is not adjusted; if the initial investment cost is lower than the fair value of the

identifiable net assets of the investee that can be acquired at the moment of investment, it is included in

the current profits or losses, and the cost of long-term equity investment is adjusted.

The Company recognizes the investment income and other comprehensive income respectively, and

adjusts the book value of long-term equity investment according to the net profits or losses and other

comprehensive incomes of the investee that are attributable to the Company; the Company calculates the

profits or cash divisions that can be acquired from the investee according to the profits or cash divisions


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declared and distributed by the investee, and reduces the book value of long-term equity investment

correspondingly; the Company adjusts and includes the book value of long-term equity investment in the

owners' equities according to the other changes in the owners' equities except for net profits or losses,

other comprehensive incomes and profit distribution (hereinafter referred to as “other changes in owners'

equities”).

When determining the net profits or losses, other comprehensive incomes and other changes in owners’

equities of the investee that are attributable to the Company, the net profits and other comprehensive

incomes of the investee are adjusted on the basis of the fair value of the identifiable net assets of the

investee when acquiring the investment and according to the accounting policies and accounting period

of the Company.

The unrealized gains or losses from the internal transactions between the Company and its affiliated

company and joint venture are calculated as per the proportion attributable to the Company, and offset

accordingly, and the investment income is recognized on this basis, except for the business consisting of

the assets that are given or sold out. The unrealized losses from the internal transactions with the investee,

which is due to asset impairment, are recognized in full amount.

Besides the obligation to bear the additional loss, the obligation of the Company to the net loss of the joint

venture or affiliated company is limited to the book value of the long-term equity investment and other

substantial long-term equity on the net investment in the joint venture or affiliated company. When the

joint venture or affiliated company makes net profits, the Company will recover the recognition of the

income attributable to it after the income attributable to the Company makes up the unrecognized loss.

3) Disposal of long-term equity investments

The difference between the book value and the actually acquired consideration of the long-term equity

investment is included in the current profits or losses.

For the long-term equity investment that is disposed partially and calculated by the equity method, if the

residual equity is still calculated by the equity method, the original other comprehensive incomes

recognized by the original equity-method calculation are carried over proportionally on the same basis as

the direct disposal of relevant asset or liability by the investee and, and the other changes in owners’

equities are carried over to the current profits or losses proportionally.

In case of losing the joint control or significant influence on the investee due to the disposal of equity

investment or other reasons, the other comprehensive incomes that are recognized due to the calculation

of original equity investment by the equity method are subject to the accounting treatment on the same

basis as the direct disposal of relevant asset or liability by the investee when the equity-method calculation

is terminated, and all other changes in owners’ equities are carried over to the current profits or losses at

the termination of equity-method calculation.

In case of losing the control on the investee due to the disposal of partial equity investment or other

reasons, the remaining equity that can execute the joint control or significant influence on the investee

shall be calculated by the equity method, and adjusted as if it has been always calculated by the equity

method since acquisition, the other comprehensive incomes recognized before acquiring the right to

control the investee shall be carried over proportionally on the same basis as the direct disposal of

relevant asset or liability by the investee, and the other changes in owners’ equities recognized by the

equity-method calculation are carried over proportionally to the current profits or losses; however, if the

remaining equity that cannot execute the joint control or significant influence on the investee shall be

recognized as the financial asset, the difference between its fair value and book value on the date of

losing the control right is included in the current profits or losses, and all other comprehensive incomes

and other changes in owners’ equities recognized before acquiring the right to control the investee are

carried over.

If all transactions which finally result in the loss of control right by the stepwise disposal of the equity

investment in a subsidiary belong to one package transaction, every transaction is subject to the accounting

treatment as one transaction relating to the disposal of the equity investment in the subsidiary and resulting

in the loss of control right; before the control right is lost, the balance between the consideration of every

disposal and the book value of the long-term equity investment corresponding to the disposed equity is

recognized as the other comprehensive income in some financial statements, and when the control right is


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lost, is transferred into the profits or losses of the period of losing the control right. If those transactions

do not belong to one package transaction, every transaction is subject to the accounting treatment

separately.

22. Investment properties

(1) Measured at cost:

The investment properties mean the properties held for the purpose of earning rentals and/or capital

appreciations, including leased land use rights, land use rights held for value addition and leased

buildings (including the buildings which are rented upon the completion of construction or development

activities and the buildings which are now under construction or development and will be rented in

future).

The subsequent expenditures related to the investment properties are included in the costs of investment

properties when the related economic benefits are likely to flow in and their costs can be measured reliably;

otherwise, those subsequent expenditures are included in the current profits or losses at the time of

occurrence.

The Company measures its existing investment properties at their costs. For the investment properties

measured at their costs, the buildings held for rental are subject to the same depreciation policy as the

fixed assets of the Company, and the land use rights held for rental are subject to the same amortization

policy as the intangible assets.

23. Fixed assets

(1) Recognition conditions


The fixed assets mean the tangible assets held for the purpose of producing goods, providing service,

leasing or operation management and with a service life over one accounting year. The fixed asset is

recognized when all the following conditions are met:

1) The economic benefits related with the fixed asset are likely to flow into the enterprise;

2) The cost of the fixed asset can be measured reliably.

The fixed assets are initially measured at their costs (considering the impact of the expected discard

expense).

The subsequent expenditures related to the fixed assets are included in the costs of fixed assets when the

related economic benefits are likely to flow in and their costs can be measured reliably; the book value

of the substituted party is derecognized; all the other subsequent expenditures are included in the current

profits or losses at the time of occurrence.

(2) Depreciation method


Type Depreciation

method

Depreciation period

(year) Residual rate

Annual depreciation

rate

Houses and buildings Straight-line

method

10-50 0-3 1.94-10.00

Including: Houses Straight-line

method

10-35 0 2.86-10.00

Buildings Straight-line

method

20-50 0-3 1.94-5.00

Machine and

equipment

Straight-line

method

5-30 0-3 3.23-20.00


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Transportation tools Straight-line

method

5-10 0-3 9.70-20.00

Office and other

equipment

Straight-line

method

3-5 3 19.40-32.33

(3) Recognition basis, valuation and depreciation methods for fixed assets acquired by financing

lease


24. Projects under construction


The projects under construction are measured at their actual costs. The actual costs include the

construction cost, installation cost, borrowing cost meeting the capitalization conditions and other

necessary expenses spent to make the project under construction ready for the intended service. When

being ready for the intended service, the project under construction is carried over to the fixed assets,

and a depreciation reserve will be made for it from the next month.

25. Borrowing costs


(1) Recognition principles for capitalization of borrowing costs

The borrowing costs incurred by the Company, which are directly attributable to the acquisition,

construction or production of the assets eligible for capitalization, shall be capitalized and included in the

related asset costs; however, the other borrowing costs shall be recognized as expenses at the time of

occurrence, and included in the current profits or losses.

The assets eligible for capitalization mean the fixed assets, investment properties or inventories, etc. that

have to be acquired, constructed or produced over a long time to be ready for the intended service or sales

condition.

(2) Capitalization period of borrowing costs

The capitalization period means the period from starting to ending of the capitalization of borrowing costs,

excluding the capitalization suspension period of borrowing costs.

The capitalization of borrowing costs starts when all the following conditions are met:

1) The asset expenditures have incurred, including expenditures incurred in the form of cash payments,

transfers of non-cash assets or interest-bearing liabilities for the acquisition, construction or production

of assets eligible for capitalization;

2) The borrowing costs have incurred; and

3) The acquisition, construction or production activities necessary to prepare the asset for its intended

service or sales condition have commenced.

When the assets eligible for capitalization that are acquired, constructed or produced are ready for the

intended service or sales condition, the capitalization of their borrowing costs is terminated.

(3) Capitalization suspension period

If an asset eligible for capitalization is abnormally suspended over 3 consecutive months in the process

of acquisition, construction or production, the capitalization of its borrowing cost is suspended; if such

suspension is a necessary process to make the acquired, constructed or produced asset eligible for

capitalization ready for the intended service or sales condition, the capitalization of its borrowing cost

will continue. The borrowing costs incurred during the suspension are recognized as the current profits

or losses; the capitalization of the borrowing costs will not restart until the acquisition, construction or

production activities of the asset resume.


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(4) Calculation methods for capitalization rate and amount of borrowing costs

For the specific borrowings for the purpose of acquisition, construction or production of assets eligible

for capitalization, the balance of the actual borrowing costs incurred in the period of specific borrowing

deducting the interest income from the unused borrowings deposited in a bank or the investment income

obtained from the temporary investment is recognized as the capitalization amount of borrowing costs.

For the general borrowings used for the acquisition, construction or production of assets eligible for

capitalization, the amount of borrowing costs to be capitalized of the general borrowings is calculated and

determined by multiplying the weighted average of the excess of accumulated asset expenditures over the

asset expenditures attributable to the specific borrowings by the capitalization rate of the general

borrowings used. The capitalization rate is calculated according to the weighted average interest rate of

general borrowings.

During the capitalization, the gaps arising from the foreign exchange conversion of principals and

interests of foreign-currency specific borrowings are capitalized and included in the costs of assets

eligible for capitalization. The gaps arising from the foreign exchange conversion of principals and

interests of other foreign-currency borrowings except for foreign-currency specific borrowings are

included in the current profits or losses.

26. Biological assets


27. Oil and gas assets


28. Right-of-use assets


Accounting policies since January 1, 2021

On the starting date of lease period, the Company recognizes the lease as the right-of-use asset except

for the short-term lease and low-value asset lease. The right-of-use asset is measured initially at its cost.

The cost includes:

Initially measured amount of lease liabilities;

If the lease payment made on or before the starting date of a lease period includes the lease

incentive, the amount corresponding to the applied lease incentive will be deducted;

Initial direct cost incurred by the Company;

The expected cost needed by the Company to dismantle and remove the leased asset, restore the site

of leased asset, or restore the leased asset to the condition stipulated in the lease provisions, but

excluding the costs needed to produce the inventories.

Subsequently, the Company makes a provision for the depreciation of right-of-use asset by the straight

line method. If the Company can reasonably confirm the acquisition of the ownership of leased asset

upon expiration of lease period, the depreciation reserve of right-of-use asset is provided in the residual

service life of leased asset; otherwise, the depreciation reserve is provided in the lease period or the

residual service life of leased asset whichever comes earlier.

The Company will determine whether the right-of-use asset depreciates according to the principles given

in “V.30 Impairment of long-term assets”, and conduct the accounting treatment against the identified

impairment loss.

29. Intangible assets

(1) Valuation method, service life and impairment test


1) The Company measures its intangible assets initially at their costs at the time of acquisition.


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The costs of purchased intangible assets include their purchase prices, related taxes and fees, as well as

other expenses directly attributable to the intended purpose of these assets.

2) Subsequent measurement

The useful life of intangible asset is estimated at the time of acquisition.

The intangible assets with definite useful life are amortized during the period of making economic

benefits for the Company; the intangible asset whose profit-making period is unforeseen is regarded as

the intangible asset with indefinite useful life, and is not amortized.

3) Service life estimation of intangible assets with definite service life

Item Estimated service life Amortization method Reference

Land-use right and

intellectual property

Years specified in the

certificate or by law Straight-line method

Certificate of rights including the

certificate of land use right

Software 1-10 years Straight-line method Estimated service life

Sea area use right At least 40 years Straight-line method Certificate of rights including the

certificate of sea area use right

House use right 30 years Straight-line method Estimated service life

Highway use right 35 years Straight-line method Estimated service life

BOT franchise right Years stipulated in the

BOT contract Straight-line method BOT contract

Carbon emission right At least 10 years Straight-line method Not stipulated by laws and

regulations

AFTONgreen certificate 17.33 Straight-line method Estimated service life

4) See “V. 30 Impairment of long-term assets” for details of impairment test.

(2) Accounting policies for internal research and development expenditures


1) Specific standards for division of research phase and development phase

The expenditures for internal R&D projects of the Company are divided into expenditures in the research

phase and expenditures in the development phase.

Research phase: the phase during which the ingenious and scheduled investigation and research activities

are conducted to acquire and understand the new scientific or technical knowledge.

Development phase: the phase during which the research results or other knowledge are applied to a plan

or design so as to produce new or substantially improved materials, devices, products and so forth, prior

to their commercial production or use.

2) Specific conditions for capitalization of expenditures in the development phase

The expenditures in the research phase are included in the current profits or losses at the time of occurrence.

The expenditures in the development phase are recognized as the intangible asset if all the following

conditions are met, or included in the current profits or losses if the following conditions are not met:

(1) Complete the intangible asset and make it technically feasible to use or sell;

(2) Have the intention to complete and then use or sell the intangible asset;

(3) The intangible asset produces the economic benefits by the way that can prove that there is a market

for the products made with the intangible asset or for the intangible asset itself, and the intangible asset

will be used internally to prove its usefulness;


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(4) Have the sufficient technical, financial and other resources to complete the development of the

intangible asset, and have the ability to use or sell the intangible asset;

(5) The expenditures in the development phase of the intangible asset can be measured reliably.

If the expenditures in the research and development phases cannot be distinguished, all the expenditures

incurred are included in the current profits or losses.

30. Impairment of long-term assets


The impairment test is performed if there is any evidence proving the impairments of any long-term equity

investment, investment properties measured at cost, fixed assets, projects under construction, right-of-use

assets, intangible assets with definite service life, oil and gas assets, and other long-term assets. If the

impairment test results show that the recoverable value of any asset is lower than its book value, an

impairment reserve is provided according to their difference, and included in the impairment losses. The

recoverable value means the net balance of the fair value of asset deducting the disposal cost or the present

value of expected future cash flow of the asset, whichever is higher. The asset impairment reserve is

calculated and recognized on the basis of single asset. If the recoverable value of single asset is difficult

to estimate, the recoverable value of the asset group to which the asset belongs is determined. The asset

portfolio means the minimum asset portfolio which can produce the cash inflow independently.

For the business reputation formed by business combination, the intangible assets with indefinite service

life and the intangible assets not ready for use, the impairment test is performed at least at the end of every

year, regardless of impairment.

The Company conducts the business reputation impairment test. The book value of business reputation

formed by business combination is apportioned to the relevant asset group by a reasonable method from

the date of acquisition; if it is difficult to be apportioned to the relevant asset group, it is apportioned to

the relevant asset group portfolio. The relevant asset group or asset group portfolio means the asset group

or asset group portfolio which can benefit from the cooperative effect of business combination.

When the impairment test is conducted on the relevant asset group or asset group portfolio that contain

the business reputation, the asset group or asset group portfolio that doesn’t contain the business reputation

shall undergo the impairment test first to calculate the recoverable value, compare it with the relevant

book value, and recognize the corresponding impairment loss if there is any evidence proving the

impairment of the asset group or asset group portfolio related to the business reputation. Next, the asset

group or asset group portfolio that contains the business reputation shall undergo the impairment test to

compare its book value with its recoverable value; if the recoverable value is lower than the book value,

the impairment loss is first used to offset the book value of business reputation apportioned to to the asset

group or asset group portfolio, and then offset the book values of all other assets proportionally according

to the proportions of book values of other assets in the asset group or asset group portfolio excluding the

business reputation.The above-mentioned asset impairment losses cannot be carried back after they are

recognized.

31. Long-term unamortized expenses


The long-term unamortized expenses mean all the expenses which have occurred but shall be amortized

in the current period and future periods for more than one year.

(1) Amortization method

The long-term unamortized expenses are amortized evenly in their benefit-making period.

(2) Amortization period

The long-term unamortized expenses with definite benefit-making period are amortized evenly in their

benefit-making period; those without definite benefit-making period are amortized evenly in 5 years.


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32. Contract liabilities

Recognition method for contract liabilities


The Company presents the contract assets or contract liabilities in the balance sheet according to the

relationship between the performance obligation and the customer's payment. The obligation of the

Company to transfer the goods or service to any customer for the considerations received or receivable

from the customer is presented as a contract liability. The contract assets and contract liabilities under

the same contract are presented with their net value.

33. Employee's compensation

(1) Accounting treatment method for short-term compensation


During the accounting period in which an employee serves the Company, the Company recognizes the

actual short-term compensation as a liability and record it into the current profits or losses or the relevant

asset cost.

Considering the social insurance cost and house accumulation fund paid by the Company for employees

and the fees for labour union and employee education provided by the Company as stipulated, the

corresponding employee's compensation is calculated and determined according to the stipulated basis

and proportion during the accounting period when the employees serve the Company.

The employee welfare expenses of the Company are included in the current profits or losses or the

relevant asset cost according to the actual costs incurred at the time of occurrence, and the non-monetary

welfares are measured at the fair value.

(2) Accounting treatment method for post-employment welfares


1) Defined contribution plan

The Company pays the basic endowment insurance and unemployment insurance for the employees as

stipulated by the local government. During the accounting period in which the employees serve the

Company, the amount payable is calculated as per the stipulated local payment base and proportion

recognized as a liability and included in the current profits or losses or the relevant asset costs. In

addition, the Company participates in the corporation pension system/ supplementary endowment

insurance approved by the national competent department. The Company pays the insurance expenses to

the pension system/ local social insurance agency proportionally according to the total employee’s

compensations, and include the corresponding expenditures in the current profits or losses or the

relevant asset cost.

2) Defined benefit plan

Based on the formula determined by the expected accumulative welfare unit method, the Company

attributes the welfare obligations arising from the defined benefit plan to the period in which the employees

serve the Company, and include them in the current profits or losses or the relevant asset cost.

The deficit or surplus arising from the present value of obligations under the defined benefit plan

deducting the fair value of assets under the defined benefit plan is recognized as a net liability or asset

under the defined benefit plan. If the defined benefit plan has any surplus, the Company measures and

sets the net asset under the defined benefit plan according to the surplus or asset under the defined

benefit plan, whichever is lower.

All the obligations under the defined benefit plan, including the obligations to be paid within 12 months

after the annual report period during which the employees provide service, are discounted at the market

profitability of the national debt matchable with the obligation period and currency under the defined

benefit plan or the high-quality corporate bond which is active in the market on the date of balance sheet.

The service cost arising from the defined benefit plan and the net interest of net liability or net asset under

the defined benefit plan are included in the current profits or losses or the relevant asset cost; any change


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caused by the remeasurement of net liability or net asset under the defined benefit plan is included in other

comprehensive incomes and will not be carried back to profits or losses in the subsequent accounting

period. At the ending of the original defined benefit plan, all parts which are originally included in other

comprehensive incomes within the scope of equity will be wholly carried forward to the undistributed

profits.

At the settlement of the defined benefit plan, the settlement profit or loss is recognized according to the

difference between the present value and the settlement price of obligations under the defined benefit

plan determined on the date of settlement.

(3) Accounting treatment method for dismission welfares


If the Company provides its employees with dismission welfares, the employee’s compensation liability

arising from the dismission welfares is recognized on the earlier date of following dates, and included in

the current profits or losses: the Company cannot revoke unilaterally the dismission welfares provided as

a result of rescission of labour relation plan or lay-off suggestion; the Company recognizes the costs or

expenses related to the reorganization involving the payment of dismission welfares.

(4) Accounting treatment method for other long-term employee's welfares


34. Lease liabilities



On the starting date of lease period, the Company recognizes the lease as the lease liability except for the

short-term lease and low-value asset lease. The lease liabilities are measured initially at the present value

of the unpaid lease payment. The lease payment includes:

Fixed payment (including the material fixed payment); if the lease incentive is included, the amount

corresponding to the lease incentive shall be deducted;

Variable lease payment depending on the index or ratio;

Expected payables according to the residual value of guarantee provided by the Company;

Exercise price of purchase option provided that the Company determines the use of this option

reasonably;

Payment necessary for exercising the lease termination option provided that the lease period

reflects that the Company will exercise the lease termination option.

The Company uses the interest rate embedded in the lease as the discount rate; however, if it is

impossible to determine the interest rate embedded in the lease reasonably, the incremental borrowing

rate of the Company is used as the discount rate.

The Company calculates the interest expense of lease liability in each lease period according to the fixed

periodic interest rate, and includes the interest expense in the current profits or losses or relevant asset

costs.

After the starting date of lease period, the Company will remeasure the lease liability and adjust the

corresponding right-of-use asset in case of following situations; if the book value of right-of-use asset

has decreased to zero, but the lease liability needs further decreasing, the different shall be included in

the current profits or losses:

• If the evaluation results of purchase option, renewal option or termination option change, or the

actual exercise of above-mentioned option is different from the original evaluation results, the Company

will remeasure the lease liability according to the changed lease payment and the present value

calculated at the revised discount rate;

• If the substantial fixed payment, the expected payable amount of residual value of guarantee or the

index or ratio determining the lease payment changes, the Company will remeasure the lease liability


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according to the changed lease payment and the present value calculated at the original discount rate.

However, if the lease payment changes due to change of floating interest rate, the present value is

calculated at the revised discount rate.

35. Estimated liabilities


The obligation related to any contingency and meeting the following conditions is recognized as an

estimated liability by the Company:

(1) The obligation is a current obligation of the Company;

(2) The performance of the obligation is likely to lead to outflow of economic benefits of the Company;

(3) The amount of the obligation can be reliably measured.

The estimated liabilities are measured initially measured with the best estimate of the expenditures needed

to perform the related current obligations.

When determining the best estimate, the factors related to contingencies, such as risks, uncertainty and

time value of money, are considered comprehensively. In case of significant impact on the time value of

money, the best estimate is determined by discounting the relevant future cash outflow.

If the expenditures needed to pay off the estimated liabilities are expected to be compensated wholly or

partially by a third party, the amount of compensation is separately recognized as assets, and does not

exceed the book value of estimated liabilities when it is almost sure to receive the compensation.

The Company rechecks the book values of estimated liabilities on the date of balance sheet. When there

is any strong evidence that the book value cannot reflect the current best estimate, the book value is

adjusted according to the current best estimate.

36. Share-based payment


37. Preferred shares, perpetual bonds and other financial instruments


The Company classifies the financial instruments or their components into financial assets, financial

liabilities or equity instruments at the time of initial recognition according to both the contract terms and

economic natures of the issued preferred shares/perpetual bonds and their legal forms.

The perpetual bonds /preferred shares or other financial instrument meeting the following conditions are

classified wholly or partially as a financial liability at the time of initial recognition:

(1) Contain the contract obligation that the Company must be performed unconditionally by the delivery

of cash or other financial assets;

(2) Contain the contract obligation of delivering a variable amount of own equity instruments for the

purpose of settlement;

(3) Contain the derivative instruments (such as equity swap, etc.) to be settled with own equity but not by

exchanging a fixed amount of own equity instruments with a fixed amount of cash or other financial assets;

(4) Contain the contract terms which stipulate the contract obligations indirectly;

(5) When the issuer is doing the liquidation, the liquidation sequence of the perpetual bonds is the same

as the ordinary bonds and other debts issued by the issuer.

The perpetual bonds /preferred shares or other financial instruments which do not meet any of above-

mentioned conditions are classified wholly or partially as equity instrument at the time of initial

recognition.

38. Incomes

(1) Accounting policies used for recognition and measurement of incomes



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1) Accounting policies used for recognition and measurement of incomes

The Company recognizes its income when it has fulfilled the performance obligations under the contract,

i.e. the customer has obtained the control right over the relevant goods or service. The obtaining of the

control right over the relevant goods or service means the ability to control the use of the goods or service

and get almost all economic benefits from the goods or service.

For the contract containing two or more than two performance obligations, the Company apportions the

transaction price to every performance obligation according to the relative proportion of the selling price

of the goods or service under the single performance obligation on the starting date of the contract. The

Company measures the income according to the transaction price apportioned to every performance

obligation.

The transaction price means the amount of consideration to be received by the Company in connection

with the transfer of goods or service to its customer, and does not exclude the payment received by a

third party or the repayment to the customer. The Company determines the transaction price according to

the contract terms and in combination with the past practices. To determine the transaction price, the

impacts of variable consideration, major financing components in the contract, non-cash consideration,

consideration payable to the customer and other factors are considered. The Company determines the

transaction price containing the variable consideration as per an amount not over the amount would most

likely not result in a material reversal of the accumulated recognized income at the time of the

elimination of the relevant uncertainties. If there is a significant financing component in the contract, the

Company determines the transaction price as per the amount of cash payment to be paid by the customer

when acquiring the control right of goods or service, and amortizes the difference between the

transaction price and the contract consideration by the effective interest method during the term of

contract.

If one of the following conditions is met, the performance obligation shall be fulfilled within a given

period; otherwise, the performance obligation shall be fulfilled at a certain point of time:

• The customer obtains and consumes the economic benefits from the Company’s performance of its

obligations while the Company performs its obligations.

• The customer controls the goods in process when the Company performs its obligations.

• The goods produced by the Company when performing is obligation are of the irreplaceable use, and

the Company is entitled to receive payment for the accumulatively completed performance of its

obligations so far during the whole contract period.

For the performance obligations to be fulfilled within a given period, the Company recognizes the income

according to the performance schedule during this period unless the performance schedule cannot be

determined reasonably. Considering the nature of goods or service, the Company determines the

performance schedule by the output or input method. If the performance schedule cannot be determined

reasonably and the costs incurred can be compensated as expected, the Company recognizes the income

according to the amount of costs incurred till the performance schedule can be determined reasonably.

For the performance obligation to be fulfilled at a certain point of time, the Company recognizes the

income when the customer obtains the control right of relevant goods or service. To judge whether the

customer has obtained the control right of goods or service, the Company considers the followings:

• The Company has the current charging right over the goods or service, i.e. the customer bears the

current paying obligation for the goods or service.

• The Company has transferred the legal ownership of the goods to the customer, i.e. the customer has

obtained the legal ownership of the goods.

• The Company has transferred the goods physically to the customer, i.e. the customer has possessed

the goods physically.

• The Company has transferred the major risks and rewards related to the ownership of the goods to

the purchaser, i.e. the customer has obtained the major risks and rewards related to the ownership of the

goods.

• The customer has received the goods or service, etc.


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2) Specific principles

①Income from electricity sale

The Company’s income from goods sale mostly consists of the income from electricity sale. The

Company recognizes the sales income when the electricity is transmitted to the power grid stipulated in

the electricity sales contract, i.e. when the customer obtains the control right over the electricity.

②Income from heat sale

The Company recognizes the sales income when the heat is supplied to the purchaser, i.e. when the

purchaser obtains the control right over the heat.

③Income from construction, installation and design service

To recognize the performance schedule related to the income from construction, installation and design

service, the Company determines the appropriate performance schedule by the input method. The input

method aims to determine the performance schedule according to the input for the Company to fulfil its

performance obligations, and the Company determines the performance schedule with the cost incurred

as the input index. On the date of balance sheet, the Company recognizes the current incomes as per the

result obtained by deducting the accumulative recognized incomes during the previous accounting

period from the product of multiplying the total transaction price under the contract by the performance

schedule. If the performance schedule cannot be determined reasonably and the costs incurred can be

compensated as expected, the income is recognized according to the amount of costs incurred till the

performance schedule can be determined reasonably.

④Income from rendering of labour service

To recognize the performance schedule related to the income from rendering of labour service, the

Company determines the appropriate performance schedule by the output method. The output method

aims to determine the performance schedule according to the value of the goods that have been

transferred to the customer in the view of the customer, and the Company determines the performance

schedule with the achieved milestone as the output index. On the date of balance sheet, the Company

recognizes the current incomes as per the result obtained by deducting the accumulative recognized

incomes during the previous accounting period from the product of multiplying the total transaction

price under the contract by the performance schedule. If the result of rendering of service cannot be

estimated reliably, the income from the rendering of service is recognized as per the amount of service

costs incurred and to be compensated as expected, and the service costs incurred are regarded as the

current expenses. No income is recognized if the service costs incurred cannot be compensated as

expected.

⑤Goods sale

When the goods are delivered to the customer’s site and the customer has accepted the goods, the

customer obtains the control right over the goods, and meanwhile the Company recognizes its income.

(2) Difference in accounting policies for income recognition caused by different operation modes of

similar business


39. Contract costs


The contract costs include the contract performance cost and the contract acquisition cost.

The costs incurred by the Company to perform a contract, which do not meet the rules and specifications

of inventories, fixed assets or intangible assets, are recognized as a asset as the contract performance cost

when the following conditions are met:

• The cost is directly related to a current or anticipated contract.

• This cost increases the future resources to be used by the Company to fulfil its performance

obligations in future.


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• The cost can be recovered as expected.

The incremental cost incurred by the Company to acquire a contract, which can be recovered as expected,

is recognized as an asset as the contract acquisition cost.

The assets related to the contract costs are amortized on the same basis as the recognition of income from

the goods or services related to the assets; however, if the amortization period of the contract acquisition

cost does not exceed one year, the Company records it into the current profits or losses at the time of

occurrence.

If the book value of the asset related to the contract cost is higher than the difference between the following

two items, the Company makes the impairment reserve for the excess and recognizes it as an asset

impairment loss:

1) The residual consideration expected to be obtained from the transfer of goods or service related to the

asset;

2) The cost expected to be incurred due to the transfer of the relevant goods or service.

If the impairment factors in the previous period change, resulting that the above-mentioned difference is

higher than the book value of the asset, the Company carries back the impairment reserve that has been

made, and records it into the current profits or losses; however, the book value of the carried-back asset is

not higher than the book value of the asset on the date of carrying back without providing any impairment

reserve.

40. Government subsidies


(1) Type

The government subsidies mean the monetary or non-monetary assets obtained by the Company from the

government free of charge, and are divided into the asset-related government subsidies and the income-

related government subsidies.

The asset-related government subsidies mean the government subsidies that the Company obtains for the

purpose of acquisition, construction or formation of long-term assets. The income-related government

subsidies mean the government subsidies other than asset-related government subsidies.

The Company classifies the government subsidies into the asset-related government subsidies according

to the following standard: the government subsidies are intended for acquisition, construction or formation

of long-term assets as clearly specified in the government documents.

The Company classifies the government subsidies into the income-related government subsidies according

to the following standard: the government subsidies are unrelated to any assets as clearly specified in the

government documents.

If the target of a government subsidy is not clearly stipulated in the government documents, the

Company classifies the government subsidy into the asset-related or income-related government subsidy

according to the following standard: the specific reason of the government subsidy and the purpose (for

any asset or not for any asset) of the government subsidy.

(2) Time of recognition

The government subsidies are recognized when the attached conditions are met and they are received.

(3) Accounting treatment

The asset-related government subsidies are used to offset the book value of related assets or are recognized

as the deferred incomes. The asset-related government subsidies recognized as deferred incomes are

included in the current profits or losses in installments by a reasonable and systematic manner during the

service life of related assets (those related to the daily activities of the Company are included in other

incomes; those unrelated to the daily activities of the Company are included in the non-operating incomes).

The income-related government subsidies which are used to make up for the related costs, expenses or

losses of the Company in the subsequent period, recognized as the deferred incomes, and included in the

profits or losses of the period during which the relevant costs, expenses or losses are recognized (those


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related to the daily activities of the Company are included in other incomes; those unrelated to the daily

activities of the Company are included in the non-operating incomes) or used to offset the related costs,

expenses or losses; those used to make up for the related costs or losses incurred by the Company are

directly included in the current profits or losses (those related to the daily activities of the Company are

included in other incomes; those unrelated to the daily activities of the Company are included in the non-

operating incomes) or used to offset the related costs, expenses or losses.

The policy-based discounted preferential loan interests obtained by the Company are subject to the

accounting treatment respectively by one of following two ways:

1) If the financial department allocates the discount interest funds to the lending banks which provide

loans to the Company at a policy-based preferential interest rate, the Company takes the actual amount of

borrowings received as the entry value, and calculates the related borrowing costs with the principal and

policy-based preferential interest rate of borrowings.

2) If the financial department allocates the discount interest funds directly to the Company, the Company

offsets the relevant borrowing costs with the corresponding discount interest.

41. Deferred income tax assets/Deferred income tax liabilities


The income taxes include the current income taxes and the deferred income taxes. Except for the income

taxes arising from the transaction or event related to the business combination and directly included in the

owners’ equities (including the other comprehensive incomes), the Company includes the current and

deferred income taxes in the current profits or losses.

The deferred income tax assets and liabilities are calculated and recognized as per the difference

(temporary difference) between the tax basis and book value of the asset and liability

The deferred income tax assets recognized for the deductible temporary difference are limited by the

taxable income that may be obtained in the future period and used to deduct the deductible temporary

difference. For the deductible loss and tax credit that can be carried over to the following year, the

corresponding deferred income tax assets are recognized with the future taxable income that can be

obtained to offset the deductible loss and tax credit as limit.

The taxable temporary differences are recognized as the deferred income tax liabilities except in some

special circumstances.

The special circumstances in which no deferred tax income asset or liability is recognized include:

• Initial recognition of business reputation;

• Other transactions or affairs that do not affect either accounting profit or taxable income (or

deductible loss) upon occurrence, except for business combination.

For the taxable temporary difference related to any investment in any subsidiary, affiliated company or

joint venture, the deferred income tax liability is recognized unless the Company can control the time

when the temporary difference is carried back and the temporary difference cannot be carried back in the

foreseeable future. For the deductible temporary difference related to any investment in any subsidiary,

affiliated company or joint venture, the deferred income tax asset is recognized when the temporary

difference can be carried back in the foreseeable future and it is likely to obtain the taxable income used

to offset the deductible temporary difference.

On the date of balance sheet, the deferred income tax assets and liabilities are measured at the applicable

tax rate during the expected recovery of related assets or liquidation of related liabilities according to the

tax laws.

On the date of balance sheet, the Company rechecks the book value of deferred income tax assets. If it is

impossible to obtain the sufficient taxable income to offset the benefits of deferred income tax assets in

future, the book values of deferred income tax assets are written down. When the sufficient taxable

income can be obtained, the write-down amount is carried back.


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When the Company has the statutory right to settle on a net basis, and intends to settle or acquire the assets

or discharge the liabilities simultaneously on a net basis, the current income tax assets and liabilities are

presented with the net amounts after offsetting.

On the date of balance sheet, the deferred income tax assets and liabilities are presented with the net

amounts after offsetting when all the following conditions are met:

• The tax payer has the statutory right to settle current income tax assets and liabilities on a net basis;

• The deferred income tax assets and liabilities are related to the income taxes levied by the same tax

administration on the same tax payer or on the different tax payers, and during the following period

when every important deferred income tax asset and liability are carried back, the involved tax payer

intends to settle the current income tax assets or liabilities, or obtain assets and discharge liabilities

simultaneously on a net basis.

42. Leases

(1) Accounting treatment method for operating leases


(2) Accounting treatment method for financing leases


(3) Recognition and accounting treatment methods for lease under new lease criterion



Lease means the contract under which the leaser transfers the right of use of an asset to the lease for the

purpose of a consideration in a given period. On the starting date of the contract, the Company evaluates

whether the contract relates to or includes a lease. If a contracting party transfers the right to control one

or more than one identified asset in a given period for the purpose of a consideration, the contract is

regarded as relating to or including a lease.

For a contract containing more than one separate lease, the Company will split the contract, and do the

accounting treatment on each separate lease. For a contact containing both lease and non-lease contents,

the leasee and the leaser shall split the lease content from the non-lease content.

(1) The Company acts as a leasee

1) Right-of-use assets

On the starting date of lease period, the Company recognizes the lease as the right-of-use asset except

for the short-term lease and low-value asset lease. The right-of-use asset is measured initially at its cost.

The cost includes:

Initially measured amount of lease liabilities;

If the lease payment made on or before the starting date of a lease period includes the lease

incentive, the amount corresponding to the applied lease incentive will be deducted

Initial direct cost incurred by the Company；

The expected cost needed by the Company to dismantle and remove the leased asset, restore the site

of leased asset, or restore the leased asset to the condition stipulated in the lease provisions, but

excluding the costs needed to produce the inventories.

Subsequently, the Company makes a provision for the depreciation of right-of-use asset by the straight

line method. If the Company can reasonably confirm the acquisition of the ownership of leased asset

upon expiration of lease period, the depreciation reserve of right-of-use asset is provided in the residual

service life of leased asset;otherwise, the depreciation reserve is provided in the lease period or the

residual service life of leased asset whichever comes earlier.


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The Company will determine whether the right-of-use asset depreciates according to the principles given

in “V.30 Impairment of long-term assets”, and conduct the accounting treatment against the identified

impairment loss.

2) Lease liabilities

On the starting date of lease period, the Company recognizes the lease as the lease liability except for the

short-term lease and low-value asset lease. The lease liabilities are measured initially at the present value

of the unpaid lease payment. The lease payment includes:

Fixed payment (including the material fixed payment); if the lease incentive is included, the amount

corresponding to the lease incentive shall be deducted;

Variable lease payment depending on the index or ratio;

Expected payables according to the residual value of guarantee provided by the Company;

Exercise price of purchase option provided that the Company determines the use of this option

reasonably;

Payment necessary for exercising the lease termination option provided that the lease period

reflects that the Company will exercise the lease termination option;

The Company uses the interest rate embedded in the lease as the discount rate; however, if it is

impossible to determine the interest rate embedded in the lease reasonably, the incremental borrowing

rate of the Company is used as the discount rate.

The Company calculates the interest expense of lease liability in each lease period according to the fixed

periodic interest rate, and includes the interest expense in the current profits or losses or relevant asset

costs.

The variable lease payment that is not included in the measurement of lease liability is included in the

current profits or losses or relevant asset costs upon actual occurrence.

After the starting date of lease period, the Company will remeasure the lease liability and adjust the

corresponding right-of-use asset in case of following situations; if the book value of right-of-use asset

has decreased to zero, but the lease liability needs further decreasing, the different shall be included in

the current profits or losses:

• If the evaluation results of purchase option, renewal option or termination option change, or the

actual exercise of above-mentioned option is different from the original evaluation results, the Company

will remeasure the lease liability according to the changed lease payment and the present value

calculated at the revised discount rate;

• If the substantial fixed payment, the expected payable amount of residual value of guarantee or the

index or ratio determining the lease payment changes, the Company will remeasure the lease liability

according to the changed lease payment and the present value calculated at the original discount rate.

However, if the lease payment changes due to change of floating interest rate, the present value is

calculated at the revised discount rate.

3) Short-term leases and low-value asset leases

For short-term lease and low-value asset lease, the Company does not recognize the right-of-use asset or

lease liability, but includes the relevant lease payment in each lease period in the current profits or losses

or relevant asset costs by the straight line method. The short-term lease means the lease whose duration

is not longer than 12 months and which does not include the purchase option on the starting date of lease

period. The low-value asset lease means the low-value lease under which the single lease asset is new. If

the Company subleases or expects to sublease a leased asset, the original lease is not a low-value asset

lease.

4) Lease change

In case of any lease change in conformity with the following conditions, the Company performs the

accounting treatment on the lease change as a single lease:


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The lease change expands the lease scope by adding the use right of one or more than one leased

asset;

The added consideration is equivalent to the price of expanded part of lease scope after being

adjusted according to the contract.

For the lease change not subject to the accounting treatment as a single lease, the Company reallocate

the renewed contract consideration, re-determine the lease period, and remeasure the lease liability

according to the changed lease payment and the present value calculated at the revised discount rate on

the effective date of lease change.

If the lease change results in the reduction of lease scope or the shortening of lease period, the Company

will decrease the book value of right-of-use asset correspondingly, and include the profits or losses from

partial or whole termination of the lease into the current profits or losses. If the other lease changes

result in the remeasurement of lease liability, the Company shall adjust the book value of right-of-use

asset correspondingly.

(2) The Company acts as a leaser

On the starting date of lease, the Company classifies the lease into finance lease and operating lease. The

finance lease means the lease under which almost all the risks and remunerations related to the leased

asset are transferred no matter if the ownership is transferred. The operating lease means the lease other

than the finance lease. When acting as a sub leaser, the Company classifies the sublease according to the

use right asset generated by the original lease.

1) Accounting treatment of operating lease

The operating lease payment is recognized as the rental income in each lease period by the straight line

method. The Company capitalizes the incurred initial direct expense related to operating lease, and

apportions and includes the expense in the current profits or losses in the lease period on the same basis

of rental income recognition. The variable lease payment that is not included in the lease payment is

included in the current profits or losses upon actual occurrence. If the operating lease changes, the

Company will take it as a new lease and conduct the accounting treatment from the effective date of

lease change, and regard the advance payment or receivable lease payment related to the lease before

change as the payment of new lease.

2) Accounting treatment of finance lease

On the starting date of lease, the Company recognizes the receivable finance lease payment for the

finance lease, and de-recognizes the finance lease asset. During the initial measurement of receivable

finance lease payment, the Company takes the net lease investment as the entry value of receivable

finance lease payment. The net lease investment is the sum of the unguaranteed residual value and the

present value of unreceived lease payment on the starting date of lease period and discounted at the

interest rate embedded in the lease.

The Company calculates and recognizes the interest income in each lease period according to the fixed

periodic interest rate. The derecognition and impairment of receivable finance lease payment undergo

the accounting treatment as stipulated in “V.10 Financial instruments”.

The variable lease payment that is not included in the measurement of net lease investment is included in

the current profits or losses upon actual occurrence.

In case of any lease change in conformity with the following conditions, the Company performs the

accounting treatment on the lease change as a single lease:

• The lease change expands the lease scope by adding the use right of one or more than one leased

asset;

• The added consideration is equivalent to the price of expanded part of lease scope after being

adjusted according to the contract.

For the change of finance lease not subject to the accounting treatment as a single lease, the Company

will treat the changed lease according to the following conditions:


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• If the change comes into effect from the starting date of lease, and the lease may be classified as

operating lease, the Company will take it as a new lease and do the accounting treatment from the

effective date of lease change, and take the new lease investment before the effective date of the lease

change as the book value of leased asset;

• If the change comes into effect from the starting date of lease, and the lease may be classified as

finance lease, the Company will do the accounting treatment according to the policies applicable to

amendment or revision of the contract as stipulated in “V.10 Financial instruments”.

(3) After-sales lease-back transaction

Pursuant to the principles given in “V.38 Incomes”, the Company evaluates and determines whether the

asset transfer in the after-sales lease-back transaction is a sale.

(1) Leasee

If the asset transfer in the after-sales lease-back transaction is a sale, the Company will, as a leasee,

measure the right-of-use asset formed by the after-sales lease back according to the amount related to the

right of use obtained through lease back in the book value of original asset, and recognize the profits or

losses according to the right transferred to the leaser; if the asset transfer in the after-sales lease-back

transaction is not a sale, the Company will, as a leasee, further recognize the transferred asset, and also

recognize a financial liability equivalent to the transfer income. The accounting treatment of financial

liability is detailed in “V.10 Financial instruments”.

(2) Leaser

If the asset transfer in the after-sales lease-back transaction is a sale, the Company will, as a leaser,

conduct the accounting treatment on the asset purchase, and also on the asset lease according to the

above “(2) The Company acts as a leaser”; if the asset transfer in the after-sales lease-back transaction is

not a sale, the Company will, as a leaser, derecognize the transferred asset, but recognize the financial

asset equivalent to the transfer income. The accounting treatment of financial asset is detailed in “V.10

Financial instruments”.

43. Other major accounting policies and accounting estimates


Hedging accounting

(1) Classification of hedging

1) Fair fair hedging: mean the hedging provided against the risk of change in fair value of the recognized

asset or liability or the unrecognized firm commitment (excluding the foreign exchange risk).

2) Cash flow hedging: mean the hedging provided against the risk of change in cash flow, in which the

change in cash flow is caused by the certain risk related to the recognized asset or liability or the

potential expected transaction, or by the foreign exchange risk included in the unrecognized firm

commitment.

3) Hedging for net investments in overseas operations: mean the hedging provided for the foreign

exchange risks of net investments in overseas operations, in which the net investments in overseas

operations mean the enterprise’s equity in the net assets of overseas operations.

(2) Designation of hedging relation and confirmation of hedging effectiveness

When the hedging relation starts, the Company will designate the hedging relation formally, and prepare

the formal written documents concerning the hedging relation, risk management objective and hedging

strategy. The documents state the nature and quantity of hedging instruments, the nature and quantity of

hedged projects, the nature of hedged risk, the hedging type, and the evaluation on the effectiveness of

hedging instrument made by the Company. The hedging effectiveness means the extent that the change

in fair value or cash flow of hedging instrument can offset the change in fair value or cash flow of

hedged project caused by the hedging risk.

The Company evaluates the hedging effectiveness continuously, and determines if the hedging meets the

effectiveness requirement of hedging accounting in the accounting period designated for the hedging

relation. If the effectiveness requirement is not met, the use of hedging relation is terminated.


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The use of hedging accounting shall meet the following hedging effectiveness requirements:

1) There is any economic relation between the hedged project and the hedging instrument;

2) The impact of credit risk is not dominant in the value change caused by the economic relation

between the hedged project and the hedging instrument.

3) A suitable hedging ratio is used. This hedging ratio cannot unbalance the relative weight of hedged

project and hedging instrument, and thus result in the accounting result inconsistent with the objective of

hedging accounting. If the hedging ratio becomes unsuitable, but the management objective of hedging

risk does not change, the quantity of hedged project or hedging instrument shall be adjusted, to ensure

the conformity of hedging ratio with the effectiveness requirement.

(3) Hedging accounting treatment method

1) Fair value hedging

The change in fair value of hedging derivatives is included in the current profits or losses. The change in

the fair value of hedged project caused by the hedging risk is included in the current profits or losses,

and meanwhile, the book value of hedged project is adjusted.

For the fair vale hedging related to the financial instrument measured at the amortized cost, the

adjustment of book value of hedged project is amortized in the remaining time from date of adjustment

to date of expiration is included in the current profits or losses. The amortization by the effective interest

method shall start immediately after the adjustment of book value, not later than the adjustment against

the change in fair value caused by the hedging risk due to the termination of hedged project.

If the hedged project is derecognized, the unamortized fair value is recognized as current profits or

losses.

If the hedged project is a unrecognized firm commitment, the accumulated change in the fair value of the

firm commitment caused by the hedging risk is recognized as an asset or liability, and the relevant

profits or losses are included in the current profits or losses. The change in fair value of hedging

instrument is also included in the current profits or losses.

2) Cash flow hedging

In the profits or losses of hedging instrument, the part belonging to the effective hedging is recognized

directly as other comprehensive income, but the part belonging to the ineffective hedging is included in

the current profits or losses.

If the hedged transaction affects the current profits or losses, and the hedged financial income or expense

is recognized or the expected sale occurs, the amount recognized in the other comprehensive income is

transferred into the current profits or losses. If the hedged project is the cost of a non-financial asset or

liability, the amount recognized in the other comprehensive income is transferred out, and included in

the initially recognized amount of the non-financial asset or liability (or the amount recognized in the

other comprehensive income is transferred out in the same period of affecting the profits or losses by the

non-financial asset or liability, and included in the current profits or losses).

If the expected transaction or firm commitment will not occur as expected, the accumulated profits or

losses of the hedging instrument which are included in the other comprehensive income before is

transferred out, and included in the current profits or losses. If the hedging instrument has expired or

been sold, the relevant contract has been terminated or exercised (not be renewed or extended), or the

designation of hedging relation has been cancelled, the amount that is included in the other

comprehensive income is not transferred out till the expected transaction or firm commitment affects the

current profits or losses.

3) Hedging for net investments in overseas operations

The treatment of the hedging for net investments in overseas operations, including the hedging for the

monetary items as a part of net investments, is similar to the treatment of cash flow hedging. In the

profits or losses of hedging instrument, the part belonging to the effective hedging is included in the

other comprehensive income, but the part belonging to the ineffective hedging is recognized as current


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profit or loss. During the disposal of overseas operation, the accumulated profit or loss included in the

other comprehensive income is transferred out, and included in the current profits or losses.

44. Changes in major accounting policies and accounting estimates

(1) Changes in major accounting policies


Contents and reasons of

changes in accounting policies Approval procedure

Remarks (title and amount of reporting

item subject to major impact)

The Ministry of Finance revised

theAccounting Standards for

Business Enterprises No.21 – Lease (hereinafter referred to as

“New Lease Standard”) in

2018. The Company has

executed the new lease standard

since January 1, 2021. Pursuant

to the revised standard, the

Company will not re-evaluate if

the contract existing before the

initial execution date belongs to

or contains a lease on the initial

execution date.

26th meeting of 11th board

of directors, and 11th

meeting of 11th board of

supervisors

On January 1, 2021, the Company, as a

leasee, adjusted the operating lease and

finance lease existing before the initial

execution date, including:

Advance payments decreased by

251,291.73 Yuan;

Right-of-use assets increased by

754,091,540.89 Yuan;

Long-term unamortized expenses decreased

by 21,829,511.68 Yuan;

Fixed assets decreased by 74,220,026.71

Yuan;

Intangible assets decreased by

412,136,097.50 Yuan;

Lease liabilities increased by

594,691,439.10 Yuan;

Long-term payables decreased by

349,036,625.83 Yuan.

(2) Changes in major accounting estimates


(3) Financial statements at beginning of the year of initial execution of new lease standards from

2021


Consolidated Balance Sheet


Item December 31, 2020 January 1, 2021 Adjusted figures

Current assets:


Provision of settlement fund

Lending fund

Trading financial assets 1,039,561,849.15 1,039,561,849.15


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Accounts receivable 7,058,315,750.08 7,058,315,750.08

Accounts receivable financing 121,353,266.61 121,353,266.61

Advance payments 105,807,035.11 105,555,943.38 -251,091.73

Premiums receivable

Reinsurance accounts receivable

Reinsurance contract reserves

receivable

Other receivables 539,655,323.30 539,655,323.30

Including: Interests receivable 6,224,440.53 6,224,440.53

Dividends receivable

Recoursable financial assets

acquired

Inventories 954,778,616.56 954,778,616.56

Contract assets


Non-current assets due within 1

year

Other current assets 1,034,297,957.11 1,034,297,957.11

Total current assets 20,830,700,729.09 20,830,449,637.36 -251,091.73

Non-current assets:

Loans and advances




Long-term equity investment 9,936,747,117.55 9,936,747,117.55


investments 137,904,321.81 137,904,321.81

Other non-current financial

assets

Investment properties 90,230,548.32 90,230,548.32

Fixed assets 134,140,162,340.74 134,065,942,314.03 -74,220,026.71


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Projects under construction 55,436,410,127.42 55,436,410,127.42


Oil and gas assets

Right-of-use assets 754,091,540.89 754,091,540.89

Intangible assets 4,734,214,222.54 4,322,078,125.04 -412,136,097.50

Development expenditures 25,128,060.00 25,128,060.00

Business reputation

Long-term unamortized

expenses 182,597,142.29 160,767,630.61 -21,829,511.68

Deferred income tax assets 617,589,776.51 617,589,776.51

Other non-current assets 1,642,646,524.60 1,642,646,524.60

Total non-current assets 208,078,668,837.87 208,324,574,742.87 245,905,905.00

Total assets 228,909,369,566.96 229,155,024,380.23 245,654,813.27


Short-term borrowings 7,233,513,388.71 7,233,513,388.71

Borrowings from central bank

Borrowing fund


Derivative financial liabilities 62,505,777.66 62,505,777.66

Notes payable 215,320,000.00 215,320,000.00

Accounts payable 3,073,164,587.90 3,073,164,587.90

Advance receipts 15,325,824.67 15,325,824.67


Financial assets sold for

repurchase

Deposits from customers and

interbanks

Acting trading securities

Acting underwriting securities

Payroll payable 91,672,662.00 91,672,662.00

Taxes payable 855,686,050.00 855,686,050.00


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Other payables 6,439,644,370.04 6,439,644,370.04


Dividends payable 143,960,217.65 143,960,217.65

Service charges and

commissions payable

Reinsurance accounts payable


Non-current liabilities due

within 1 year 15,559,295,232.77 15,559,295,232.77

Other current liabilities 2,507,086,209.31 2,507,086,209.31



Insurance contract reserves


Bonds payable 5,321,986,742.72 5,321,986,742.72


Perpetual bonds

Lease liabilities 594,691,439.10 594,691,439.10

Long-term payables 496,351,343.00 147,314,717.17 -349,036,625.83


Estimated liabilities 190,711,301.46 190,711,301.46

Deferred incomes 221,809,217.24 221,809,217.24

Deferred income tax liabilities 134,065,835.02 134,065,835.02


Total non-current liabilities 110,270,805,873.92 110,516,460,687.19 245,654,813.27

Total liabilities 146,324,019,976.98 146,569,674,790.25 245,654,813.27

Owners' equities (or shareholders' equities):




Perpetual bonds 5,698,893,490.57 5,698,893,490.57


124 / 329

Capital reserve 7,762,083,772.77 7,762,083,772.77



Special reserve

Surplus reserve 2,478,222,100.21 2,478,222,100.21

General risk reserve



shareholders' equities) attributable

to parent company

47,226,653,237.28 47,226,653,237.28

Minority shareholders’ equities 35,358,696,352.70 35,358,696,352.70




equities (or shareholders' equities) 228,909,369,566.96 229,155,024,380.23 245,654,813.27

Notes to adjustment of every item:


Corporate Balance Sheet


Item December 31, 2020 January 1, 2021 Adjusted figures

Current assets:




Notes receivable

Accounts receivable

Accounts receivable financing



Including: Interests receivable

Dividends receivable 109,255,639.65 109,255,639.65

Inventories

Contract assets


125 / 329


Non-current assets due within 1

year

Other current assets 82,651,207.38 82,651,207.38


Non-current assets:




Long-term equity investment 40,606,964,389.86 40,606,964,389.86


investments 187,888,051.70 187,888,051.70


Investment properties

Fixed assets 1,258,437.38 1,258,437.38

Projects under construction 344,053.28 344,053.28


Oil and gas assets

Right-of-use assets


Development expenditures

Business reputation

Long-term unamortized expenses

Deferred income tax assets

Other non-current assets


Total assets 47,662,936,890.78 47,662,936,890.78


Short-term borrowings


Derivative financial liabilities


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Notes payable

Accounts payable 851,574.31 851,574.31

Advance receipts


Payroll payable 2,629,255.16 2,629,255.16

Taxes payable 1,220,377.72 1,220,377.72

Other payables 232,617,199.72 232,617,199.72


Dividends payable 132,607,917.80 132,607,917.80


Non-current liabilities due within

1 year 2,438,180,017.60 2,438,180,017.60

Other current liabilities




Bonds payable 1,230,935,342.48 1,230,935,342.48


Perpetual bonds

Lease liabilities

Long-term payables


Estimated liabilities

Deferred incomes





Owners' equities (or shareholders' equities):



127 / 329



Perpetual bonds 5,698,893,490.57 5,698,893,490.57

Capital reserve 11,139,253,792.47 11,139,253,792.47



Special reserve

Surplus reserve 2,462,359,535.36 2,462,359,535.36






Notes to adjustment of every item:


(4) Notes to retroactive adjustment of previous comparative data due to initial execution of new lease

standard from 2021


45. Others


VI. Taxes

1. Main tax types and tax rates

Details of main tax types and tax rates


Tax type Tax basis Tax rate

Value-added tax

Calculate the output VATs

based on the income from

selling goods and labour

service calculated according

to the tax laws, deduct the

current deductible input

VATs from output VATs, and

recognize the balance as the

value-added tax payable

13%, 9%, 6%

Urban maintenance and

construction tax

Calculated and paid according

to the actually paid VAT

amount

7%, 5%, 1%


128 / 329

Education surcharge and local

education surcharge

Calculated and paid according

to the actually paid VAT

amount

3%, 2%

Corporate income tax Paid according to the taxable

income

0%,5%, 7.5%, 10%, 12.5%,

15%, 17%, 19%, 20%, 25%,

30%

Notes to disclosure of tax payers applicable to different corporate income tax rates


Name of tax payer Income tax rate (%)

Newsky (Philippines) Holdings Corporation 30%

SDIC Power Holdings Co., Ltd., Tianjin SDIC Jinneng Electric Power Co., Ltd.,

Tianjin Beijiang Environment Friendly Construction Materials Co., Ltd., Sichuan

Ertan Industrial Development Co., Ltd.,Yalong River Sichuan Energy Co., Ltd.,

Yalong River Hydropower Ganzi Co., Ltd., SDIC New Energy Investment Co., Ltd.,

SDIC Turpan Wind Power Co., Ltd., SDIC Guangxi Wind Power Co., Ltd., SDIC

Yan’an New Energy Co., Ltd., Tianjin SDIC New Energy Co., Ltd., Xiamen Huaxia

International Power Development Co., Ltd., SDIC Genting Meizhouwan Electric

Power Co., Ltd., SDIC Gansu Electricity Sales Co., Ltd., SDIC KingRock Overseas

Investment Management Co., Ltd., SDIC Yunnan Dachaoshan Hydropower Co., Ltd.,

Newsky (China) Environment & Tech.Co., Ltd., SDIC Huanneng Electric Power Co.,

Ltd., SDIC Inner Mongolia New Energy Co., Ltd., SDIC Meizhouwan Electricity

Sales Co., Ltd., Hengfeng Jinkopower Co., Ltd., Yancheng Intelligent Energy Power

Co., Ltd., Hainan Dongfang Gaopai Wind Power Co., Ltd. , SDIC Guizhou Electricity

Sales Co., Ltd., SDIC New Energy Co., Ltd.

25%

NewskyEnergy (Thailand）Company Limited, Newsky Energy (Bangkok) Company

Limited, Yunnan Dachao Industry Co., Ltd. , SDIC Jiangsu New Energy Co., Ltd. ,

Guangxi Guoqin Energy Co., Ltd. , SDIC Gansu New Energy Co., Ltd.

20%

RedrockInvestment Limited, Red Rock Power Limited, Beatrice Wind Limited, Afton

WindFarm Limited, Afton Wind Farm (Holdings) Limited, Benbrack Wind Farm

Limited

19%

Jaderock Investment Singapore Pte Ltd 17%

Yalong River Hydropower Development Co., Ltd., Sichuan Ertan Construction and

Consultation Co., Ltd., Yalong River Hydropower Liangshan Co., Ltd., Dechang Wind

Power Development Co., Ltd.(Phases 1~3), SDIC Jiuquan 1st Wind Power Co., Ltd.,

SDIC Jiuquan 2nd Wind Power Co., Ltd., SDIC Hami Wind Power Co., Ltd.(Phase 1),

SDIC Turpan Wind Power Co., Ltd.(Phase 1), SDIC Ningxia Wind Power Co., Ltd.,

SDIC Dunhuang Photovoltaic Power Co., Ltd., SDIC Shizuishan Photovoltaic Power

Co., Ltd., SDIC Golmud Photovoltaic Power Co., Ltd., SDIC Baiyin Wind Power Co.,

Ltd., SDIC Gansu Xiaosanxia Electric Power Co., Ltd., SDIC Axe New Energy Co.,

Ltd., SDIC New Energy (Red River) Co., Ltd., SDIC Qinzhou Electric Power Co.,

Ltd., SDIC Qinghai Wind Power Co., Ltd.

15%

Yalong River Huili New Energy Co., Ltd., Yalong River Mianning New Energy Co.,

Ltd., SDIC Panjiang Electric Power Co., Ltd., Huzhou Xianghui Photovoltaic Power

Co., Ltd., Guizhou Newsky Kitchen Sludge Treatment Co., Ltd., Guizhou Newsky

Environment & Tech Co., Ltd., Xiangshui Hengneng Solar Power Generation Co.,

Ltd., Xiangshui Yongneng Solar Power Generation Co., Ltd., Guyuan County

Guanghui New Energy Power Generation Co., Ltd., Zhangjiakou Jinko New Energy

Co., Ltd., Shenyang Jingbu Photovoltaic Power Co., Ltd., Fuxin Jingbu Solar Power

Co., Ltd., Jingbian County Zhiguang New Energy Development Co., Ltd., SDIC

12.5%


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Chuxiong Wind Power Co., Ltd., SDIC Yunnan Wind Power Co., Ltd., SDIC Dali

Photovoltaic Power Co., Ltd.(Phase 1)

Yalong River Hydropower Panzhihua Dongzilin Co., Ltd., Dechang Wind Power

Development Co., Ltd.(Phases 4 and 5),SDIC Qinghai Wind Power Co., Ltd. (Phase

2), SDIC Turpan Wind Power Co., Ltd. (Phase 2), SDIC Hami Wind Power Co., Ltd.

(Phase 2), Dingbian County Angli Photovoltaic Technology Co., Ltd., Toksun Trina

Solar Co., Ltd.

7.5%

Dechang Wind Power Development Co., Ltd.(Phases 6 and 7),SDIC Qinghai Wind

Power Co., Ltd. (Phase 3), SDIC Dali Photovoltaic Power Co., Ltd. (Phase 2), SDIC

Guangxi Wind Power Co., Ltd., C&G Environment Protection (Thailand) Company

Limited

0

2. Tax incentives


(1) Corporate income tax

1) According to the Notice on Taxation Policies for Furthering Western China Development Strategy

(CS [2011] 58) and the Announcement about Continuing the Corporate Income Tax Policies for Western

China Development (No. 23) issued by the Ministry of Finance in 2020, the following subsidiaries of the

Company are eligible for the preferential income tax policy under the Western China Development

Strategy, namely 15% corporate income tax rate:

①SDIC Gansu Xiaosanxia Electric Power Co., Ltd.;

②SDIC Qinzhou Electric Power Co., Ltd.;

③Yalong River Hydropower Development Co., Ltd. and its subsidiaries-Yalong River Hydropower

Panzhihua Dongzilin Co., Ltd., Yalong River Hydropower Liangshan Co., Ltd., Yalong River Huili New

Energy Co., Ltd., Yalong River Mianning New Energy Co., Ltd., Sichuan Ertan Construction and

Consultation Co., Ltd., Sichuan Ertan Industrial Development Co., Ltd., Dechang Wind Power

Development Co., Ltd.;

④SDIC Yunnan Dachaoshan Hydropower Co., Ltd.;

⑤SDIC New Energy Investment Co., Ltd.and its subsidiaries-SDIC Baiyin Wind Power Co., Ltd., SDIC

Jiuquan 1st Wind Power Co., Ltd., SDIC Jiuquan 2nd Wind Power Co., Ltd., SDIC Qinghai Wind

Power Co., Ltd., SDIC Hami Wind Power Co., Ltd., SDIC Dunhuang Photovoltaic Power Co., Ltd.,

SDIC Shizuishan Photovoltaic Power Co., Ltd., SDIC Golmud Photovoltaic Power Co., Ltd., SDIC

Turpan Wind Power Co., Ltd., SDIC Yan’an New Energy Co., Ltd., SDIC Ningxia Wind Power Co.,

Ltd., SDIC Yunnan Wind Power Co., Ltd., SDIC Chuxiong Wind Power Co., Ltd., SDIC Dali

Photovoltaic Power Co., Ltd., SDIC Guangxi Wind Power Co., Ltd.;

⑥SDIC Panjiang Electric Power Co., Ltd.;

⑦Toksun Trina Solar Co., Ltd.;

⑧SDIC New Energy (Red River) Co., Ltd.;

⑨Dingbian County Angli Photovoltaic Technology Co., Ltd.;

⑩Jingbian County Zhiguang New Energy Development Co., Ltd.

2) Pursuant to the Law of the People's Republic of China on Corporate Income Tax, the Notice of the

Ministry of Finance and the State Administration of Taxation on Implementation of Preferential

Corporate Income Tax Catalogue of Public Infrastructure Projects(CS [2008] 46) and the Notice of the Ministry of Finance, the State Administration of Taxation and the National Development and Reform

Commission on Publicizing Preferential Corporate Income Tax Catalogue of Public Infrastructure Projects (2008 Version) (CS [2008] 116) and the Notice of the State Administration of Taxation on

Implementing the Preferential Corporate Income Tax for Public Infrastructure Projects Specially


130 / 329

Supported by the State (GS [2009] 80) and the Supplementary Notice of Ministry of Finance and the

State Administration of Taxation on Use of Preferential Corporate Income Tax of Public

Infrastructure Projects(CS [2014] 55), and as approved by the local SAT office, the following

companies are eligible for preferential taxation treatments that the corporate income tax is exempted for

the first three years and levied half for the ensuing three years:

①Yalong River Huili New Energy Co., Ltd. and Yalong River Mianning New Energy Co., Ltd.,

exempted from 2016 to 2018 and levied half from 2019 to 2021;

②Dechang Wind Power Development Co., Ltd.: Phases 4 and 5, exempted from 2016 to 2018 and

levied half from 2019 to 2021; Phase 6, exempted from 2019 to 2021 and levied half from2022 to 2024;

Phase 7, exempted from 2020 to 2022 and levied half from 2023 to 2025;

③SDIC Qinghai Wind Power Co., Ltd.: Phase 2, exempted from 2017 to 2019 and levied half from2020

to 2022; Phase3, exempted from 2020 to 2022 and levied half from 2023 to 2025;

④SDIC Hami Wind Power Co., Ltd.: Phase 1, exempted from 2014 to 2016 and levied half from2017 to

2019; Phase 2, exempted from 2016 to 2018 and levied half from 2019 to 2021;

⑤SDIC Ningxia Wind Power Co., Ltd., exempted from 2020 to 2022 and levied half from2023 to 2025;

⑥SDIC Chuxiong Wind Power Co., Ltd.: Phase 1, exempted from 2016 to 2018 and levied half

from2019 to 2021;

⑦SDIC Dali Photovoltaic Power Co., Ltd.: Phase 1, exempted from 2016 to 2018 and levied half

from2019 to 2021; Phase 2, exempted from 2018 to 2020 and levied half from2021 to 2023;

⑧SDIC Yunnan Wind Power Co., Ltd.: Phase 1, exempted from 2015 to 2017and levied half from2018

to 2020; Phase 2, exempted from 2017 to 2019 and levied half from2020 to 2022;

⑨SDIC Guangxi Wind Power Co., Ltd., exempted from 2018 to 2020 and levied half from2021 to

2023;

⑩Tianjin SDIC New Energy Co., Ltd., exempted from 2021 to 2023 and levied half from2024 to 2026;

⑪Toksun Trina Solar Co., Ltd.: Phase 2, exempted from 2016 to 2018 and levied half from2019 to

2021;

⑫Huzhou Xianghui Photovoltaic Power Co., Ltd., exempted from 2016 to 2018 and levied half

from2019 to 2021;

⑬Dingbian County Angli Photovoltaic Technology Co., Ltd., exempted from 2016 to 2018 and levied

half from2019 to 2021;

⑭Jingbian County Zhiguang New Energy Development Co., Ltd., exempted from 2016 to 2018 and

levied half from2019 to 2021;

⑮Guyuan County Guanghui New Energy Power Generation Co., Ltd., exempted from 2016 to 2018

and levied half from2019 to 2021;

3) Pursuant to theNotice of the Ministry of Finance and the State Administration of Taxation on the Implementation of Preferential Tax Reduction and Exemption Policies for Small and Micro Enterprises

(CS [2019] 13), the Announcement on Issues Related to the Implementation of Preferential Income Tax

Reduction and Exemption Policies for Small Enterprises with Low Profits (SAT Announcement [2019]

2), and the Announcement of the Ministry of Finance and the State Administration of Taxation on

Implementation of Preferential Income Tax Policies for Small and Micro Enterprises and Individual

Businesses (CS [2021] 12), SDIC Jiangsu New Energy Co., Ltd., Sichuan Ertan Construction and

Consultation Co., Ltd., SDIC Gansu New Energy Co., Ltd., Guangxi Guoqin Energy Co., Ltd. and

Yunnan Dachao Industry Co., Ltd. are eligible for the following preferential policies: From January 1,

2019 to December 31, 2021, the portion of the annual taxable income of a small, low-profit enterprise

not exceeding 1 million Yuan shall be included in the taxable income at a rate of 25%, and the corporate

income tax shall be paid at a tax rate of 20%; the portion of annual taxable income exceeding 1 million

Yuan but not exceeding 3 million Yuan shall be included in the taxable income at a rate of 50% and the

corporate income tax shall be paid at a tax rate of 20%; from January 1, 2021 to December 31, 2022, for


131 / 329

the portion of the annual taxable income of a small, low-profit enterprise not exceeding 1 million Yuan,

the corporate income tax shall be further halved on the basis of preferential policies as stipulated in

Article 2 of the Notice of the Ministry of Finance and the State Administration of Taxation on the Implementation of Preferential Tax Reduction and Exemption Policies for Small and Micro Enterprises

(CS [2019] 13).

4) Pursuant to the BOI certificate issued by the Thailand Investment Committee under the Investment

Promotion Act B.E. 2520: ① Pursuant to Para.1, Clause 31, the proposer shall be granted an exemption

from income tax on net profits generated by the proposed business activities of the legal person, but such

an exemption shall not exceed 100% of the total investment excluding the land cost and working capital,

and the exemption period is 8 years from the date of receiving the first income from fixed waste

incineration; ②Pursuant to Para.2, Clause 31, the proposer shall be granted an exemption from income

tax on net profits generated by the proposed business activities of the legal person, and the exemption

period is 8 years from the month when the first income from solid waste power generation business is

obtained: C&G Environment Protection (Thailand) Company Limited is exempted from corporate

income tax from March 2016 to March 2024.

5) Pursuant to Article 99 of Regulation for Implementation of Corporate Income Tax Law of the People's

Republic of Chinaissued by the State Taxation Administration of the People's Republic of China (revised

by No. 714 announcement of the State Council of the People's Republic of China on April 23, 2019), the

incomes of Tianjin SDIC Jinneng Electric Power Co., Ltd. obtained by using the resources stipulated in

the Preferential Corporate Income Tax Catalogue for Comprehensive Resource Use as main raw

materials and producing the products which are not restricted or prohibited by the State and meet the

relevant national and industrial standards are included in the total income at 90%.

6) Pursuant to Article 100 of No. 512 Decree of the State Council of China, the Notice of the State

Taxation Administration of the People's Republic of China on Offset of Corporate Income Taxes with

Investments in Environment-friendly, Energy Saving, Water Saving and Safe Production Equipment

(GSH [2010] 256) and other documents, 10% of investments of Xiamen Huaxia International Power

Development Co., Ltd. in the special equipment in conformity with the Preferential Corporate Income

Tax Catalogue for Safe Production Equipment (2018), the Preferential Corporate Income Tax Catalogue for Environment-friendly Equipment (2017) and the Preferential Corporate Income Tax

Catalogue for Energy Saving and Water Saving Equipment (2017) can be offset from the payable taxes

in the year of investment, or offset in the following 5 years if the payable taxes in the year of investment

are insufficient to offset.

7) SDIC New Energy (Red River) Co., Ltd. which was recognized as a high-tech enterprise in December

2019 is eligible for the corporate income tax rate of 15%; SDIC Qinzhou Electric Power Co., Ltd. which

was recognized as a high-tech enterprise in November 2020 is eligible for the corporate income tax rate

of 15%.

8) Pursuant to Article 30 of Law of the People's Republic of China on Corporate Income Tax, Article 96

of Regulation for Implementation of Law of the People's Republic of China on Corporate Income Tax,

and the Notice of the State Taxation Administration on Preferential Corporate Income Tax Policies for Employment of the Handicapped (CS [2009] 70), Sichuan Ertan Construction and Consultation Co., Ltd.

and Sichuan Ertan Industrial Development Co., Ltd. and Xiamen Huaxia International Power

Development Co., Ltd. which have arranged jobs for the handicapped is eligible for the 100% deduction

of salaries of the handicapped before the corporate income tax is charged.

9) Pursuant to Article 33 of Law of the People's Republic of China on Corporate Income Tax, the

incomes of Xiamen Huaxia International Power Development Co., Ltd.obtained by using the resources

stipulated in the Preferential Corporate Income Tax Catalogue for Comprehensive Resource Use as

main raw materials and producing the products which are not restricted or prohibited by the State and

meet the relevant national and industrial standards are included in the total income of the enterprise at

90%.

(2) Value-added tax

1) Pursuant to the Notice of the Ministry of Finance and the State Taxation Administration on Publishing

the Catalogue of Products and Services Comprehensively Utilizing Resources and Qualified for Preferential VAT Treatments (CS [2015] 78), SDIC Genting Meizhouwan Electric Power Co., Ltd. is


132 / 329

eligible for the immediate 50% VAT refund for the sales income of gypsum, and SDIC Panjiang Electric

Power Co., Ltd. is eligible for the immediate VAT refund for the incomes from coal gangue and coal slime

power generation.

2) Pursuant to the Qinzhou Port State Taxation Document ([2012] 8) released by the Qinzhou Port

Economic and Technological Development Zone SAT, SDIC Qinzhou Electric Power Co., Ltd. is

eligible for the immediate 50% VAT refund for the sales income of of gypsum.

3) Pursuant to the Notice of the Ministry of Finance and the State Taxation Administration on VAT Polices

for Wind Power(CS [2015] 74), SDIC Yunnan Wind Power Co., Ltd., SDIC Ningxia Wind Power Co.,

Ltd., SDIC Qinghai Wind Power Co., Ltd., SDIC Baiyin Wind Power Co., Ltd., SDIC Jiuquan 1st Wind

Power Co., Ltd., SDIC Jiuquan 2nd Wind Power Co., Ltd., SDIC Hami Wind Power Co., Ltd., SDIC

Turpan Wind Power Co., Ltd., SDIC Chuxiong Wind Power Co., Ltd., SDIC Guangxi Wind Power Co.,

Ltd. andHainan Dongfang Gaopai Wind Power Co., Ltd. are eligible for the immediate 50% VAT refund

for the wind power products.

4) Pursuant to the document (CS [2015] 78), the air-added bricks produced by Tianjin Beijiang

Environment Friendly Construction Materials Co., Ltd. are categorized as products of comprehensive

resource utilization so that the SAT Office of Tianjin Eco-City agreed that Tianjin Beijiang Environment

Friendly Construction Materials Co., Ltd. is eligible for the immediate 70% VAT refund for the sale of its

air-added brick products from July 2015.

5) Pursuant to the Announcement on Policies Related to Deepening of VAT Reform (No. 39 Announcement

of the Ministry of Finance, the State Taxation Administration and the General Administration of Customs

in 2019), Yunnan Dachao Industry Co., Ltd., Sichuan Ertan Construction and Consultation Co., Ltd.,

Sichuan Ertan Industrial Development Co., Ltd. and SDIC KingRock Overseas Investment Management

Co., Ltd. are allowed to deduct the payable taxes by the current deductible input tax plus 10% from April

1, 2019 to December 31, 2021.

6) Pursuant to the Notice on Tax Policies Related to Further Supporting Veterans to Start Businesses

and Find Employment (CS [2019] 21) of the Ministry of Finance, the State Taxation Administration and

the Ministry of Veterans Affairs, if Sichuan Ertan Industrial Development Co., Ltd. employs the

veterans, signs the labour contract of a period over 1 year with them and pays the social insurance

premium lawfully for them, it is entitled to deduct the value added tax, urban maintenance and

construction tax, educational surcharge and local educational surcharge and to enjoy the preferential

corporate income rate sequentially for 3 years at the quota determined by the number of actually

recruited veterans from the month of signing the labour contract and paying the social insurance. The

quota standard is 6,000 Yuan per person per year which can be increased by 50% at most. The people's

governments of each province, autonomous region or municipality directly under the central government

can determine the specific quota standard within this range based on their actual conditions.

(3) Local taxes and relevant surtaxes

1) Pursuant to the No. 5 Announcement on Collection and Management of Local Taxes and Relevant

Surtaxes of Small-scale VAT Taxpayers of the State Administration of Taxation in 2019, Yunnan Dachao

Industry Co., Ltd. is eligible for the preferential policies of “50% recourse tax, urban construction and

maintenance tax, house property tax, urban land use tax, stamp tax (excluding the stamp tax on securities

transactions), farmland occupation tax, educational surcharge and local educational surcharge applicable

to the small-scale VAT taxpayers”, and the Announcement came into effect from January 1, 2019.

2) Pursuant to the Announcement of the Ministry of Finance on Adjustment of Employment Security

Collection Policies for the Handicapped (No. 98 Announcement of the Ministry of Finance in 2019), the

different reduction policy is adopted for the employment security of the handicapped from January 1,

2020 to December 31, 2022, i.e. the employer which employs the handicapped at a proportion up to 1%

but lower than the proportion by the local government, autonomous region or autonomous city

government shall pay 50% of stipulated employment security for the handicapped; the employer which

employs the handicapped at a proportion below 1% shall pay 90% of stipulated employment security for

the handicapped. SDIC Yunnan Dachaoshan Hydropower Co., Ltd., Yunnan Dachao Industry Co., Ltd.,

SDIC Qinzhou Electric Power Co., Ltd. and Sichuan Ertan Construction and Consultation Co., Ltd. are

eligible for this policy.


133 / 329

3) Pursuant to Article 13 of the Environment Protection Tax Law of the People’s Republic of China, the

taxpayer is eligible for 75% environment protection tax if the concentration of taxable air or water

pollutants is 30% lower than the pollutant discharge standard stipulated by the national and local

authorities, or 50% environment protection tax if the concentration of taxable air or water pollutants is

15% lower than the pollutant discharge standard stipulated by the national and local authorities. Tianjin

SDIC Jinneng Electric Power Co., Ltd., Xiamen Huaxia International Power Development Co., Ltd., and

SDIC Qinzhou Electric Power Co., Ltd. are applicable to this stipulation, and eligible for the preferential

environment protection tax.

3. Others


VII. Notes to items in consolidated financial statements

1. Monetary capital



Item Closing balance Beginning balance

Cash on hand 63,337.04 73,310.88

Deposit in bank 9,534,641,953.26 9,605,624,833.98

Other monetary capital 46,303,459.03 84,238,050.35

Total 9,581,008,749.33 9,689,936,195.21

Including: Total

amount deposited abroad 1,702,519,997.32 1,876,281,185.79

Details of the monetary capitals whose use is restricted due to mortgage, pledge or freezing, which are

deposited abroad and whose repatriation is restricted:


Item Closing balance Balance at end of last year

Performance security 68,602,761.91 68,080,852.48

Bank acceptance bill security 7,380,000.00 28,584,000.00

Housing management fund 17,136,213.16

Special fund for air pollution

prevention 13,464,621.20

Housing maintenance fund 5,455,336.70 5,446,858.97

Loan security 1,960,955.19

Land reclamation security 1,854,294.36 1,851,485.21

Frozen fund in banks 469,368.00

Letter of credit security 1.00 120,000.00


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Total 83,292,393.97 137,114,354.21

2. Trading financial assets




Financial assets measured at fair value and

with change included in current profits or

losses

13,768,590.60 9,649,299.15

Including:

Investments in debt instruments

Investments in equity instruments 13,768,590.60 9,649,299.15

Financial assets designated to be measured at

fair value and with change included in current

profits or losses

212,627,454.00 1,029,912,550.00

Including:

Investments in debt instruments 118,746,954.00 936,564,400.00

Others 93,880,500.00 93,348,150.00

Total 226,396,044.60 1,039,561,849.15

Other notes:


3. Derivative financial assets


4. Notes receivable

(1) Presentation of notes receivable by type




Bank acceptance bills 354,333,966.35 281,867,833.90

Commercial acceptance bills 6,924,648.06 5,126,902.06

Total 361,258,614.41 286,994,735.96

(2) Notes receivable pledged at end of the period



Item Amount pledged at end of the period


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Bank acceptance bills 1,499,644.50

Total 1,499,644.50

(3) Notes receivable endorsed or discounted at end of the period and undue on the date of balance

sheet



Item Amount derecognized at end of

the period

Amount not derecognized at end

of the period

Bank acceptance bills 395,070,520.40

Total 395,070,520.40

(4) Notes converted to accounts receivable at end of the period due to nonperformance of the

maker



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(5) Disclosure based on bad debt reserve



Type

Closing balance Beginning balance

Book balance Bad debt reserve Book

value


value Amount Proportion

(%) Amount

Proportion

(%) Amount

Proportion

(%) Amount Proportion (%)

Bad debt reserve based on

single asset 361,330,458.83 100.00 71,844.42 0.02 361,258,614.41 287,086,866.31 100.00 92,130.35 0.03 286,994,735.96

Including:

Bank acceptance bills 354,396,932.83 98.08 62,966.48 0.02 354,333,966.35 281,946,641.91 98.21 78,808.01 0.03 281,867,833.90

Commercial acceptance

bills

6,933,526.00 1.92 8,877.94 0.13 6,924,648.06 5,140,224.40 1.79 13,322.34 0.26 5,126,902.06

Bad debt reserve based on portfolio

Total 361,330,458.83 / 71,844.42 / 361,258,614.41 287,086,866.31 / 92,130.35 / 286,994,735.96

Bad debt reserve based on single asset:



Name

Closing balance

Book balance Bad debt reserve Proportion (%) Reason

Bank acceptance bills 354,396,932.83 62,966.48 0.02 Based on the expected credit loss rate

Commercial acceptance bills 6,933,526.00 8,877.94 0.13 Based on the expected credit loss rate


137 / 329

Total 361,330,458.83 71,844.42 0.02 /

Note to bad debt reserve based on single asset:


Bad debt reserve based on portfolio:


Make the disclosure with reference to other receivables if the bad debt reserve is provided according to the general model of expected credit loss:



138 / 329

(6) Details of bad debt reserves



Type Beginning

balance

Change in the current period

Closing balance

Reserve Take-back or

recovery

Offset or write-

off

Notes receivable with

single provision for

expected credit loss

92,130.35 7,731.86 28,017.79 71,844.42

Total 92,130.35 7,731.86 28,017.79 71,844.42

Therein, the bad debt reserves with significant taken-back or recovered amount in the current period:


(7) Notes receivable actually written off in the current period


Other notes:



(1) Disclosure based on account age



Age Closing book balance

Within 1 year

Including:Those within 1 year

Within 6 months (including 6 months) 4,756,988,234.71

From 6 months to 1 year (including 1 year) 1,131,396,805.35

Subtotal of those within 1 year 5,888,385,040.06

1~ 2 years 1,949,922,337.60

2~ 3 years 1,398,597,495.37

Over 3 years

3~ 4 years 256,238,673.47

4~ 5 years 47,939,648.33


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Over 5 years 216,102,259.21

Total 9,757,185,454.04


140 / 329

(2) Disclosure based on bad debt reserve



Type



value


value Amount Proportion

(%) Amount

Proportion

(%) Amount

Proportion

(%) Amount

Proportion

(%)

Bad debt reserve

based on single

asset

6,207,916,720.0

9 63.62

497,726,094.

37 8.02

5,710,190,625.7

2

4,918,240,800.8

4 65.58

427,016,594.

35 8.68

4,491,224,206.4

9

Bad debt reserve

based on

portfolio

3,549,268,733.9

5 36.38

14,792,867.2

8 0.42

3,534,475,866.6

7

2,581,884,410.8

7 34.42

14,792,867.2

8 0.57

2,567,091,543.5

9

Including:

Electricity

fees receivable

3,350,781,233.3

5 34.34

13,634,742.8

3 0.41

3,337,146,490.5

2

2,484,406,498.8

0 33.12

13,634,742.8

3 0.55

2,470,771,755.9

7

Heating

fees receivable 114,209,153.27 1.17 45,221,705.47 0.60

Others 84,278,347.33 0.86 1,158,124.45 1.37 83,120,222.88 52,256,206.60 0.70 1,158,124.45 2.22 51,098,082.15

Total 9,757,185,454.0

4

/ 512,518,961.

65

/ 9,244,666,492.3

9

7,500,125,211.7

1

/ 441,809,461.

63

/ 7,058,315,750.0

8


141 / 329

Bad debt reserve based on single asset:



Name

Closing balance

Book balance Bad debt reserve Proportion (%) Reason

Yunnan Power Grid

Corporation 1,464,685,374.25 88,406,762.70 6.04

Risk of expected credit

loss

Hami Power Supply

Company of State Grid

Xinjiang Electric Power

Corporation

1,024,807,283.77 42,288,250.80 4.13 Risk of expected credit

loss

Turpan Power Supply



Corporation

576,507,642.78 29,436,030.11 5.11 Risk of expected credit

loss

State Grid Gansu Electric

Power Company 539,830,015.66 21,643,854.22 4.01


loss

State Grid Qinghai Electric

Power Company 455,306,158.44 23,344,660.99 5.13


loss

State Grid Sichuan Electric

Power Company 428,383,965.64 16,772,415.69 3.92


loss

Tianjin Huatailong Seawater

Desalination Co., Ltd. 268,293,000.08 222,883,665.21 83.07


loss

State Grid Shaanxi Electric

Power Company 248,246,994.85 11,735,336.61 4.73


loss

State Grid Jiangsu Electric

Power Company 237,054,451.97 4,151,565.33 1.75


loss

Shaanxi Local Power

(Group) Corporation 217,166,734.56 7,374,162.82 3.40


loss

Huzhou Power Supply


Zhejiang Electric Power

Corporation

145,253,671.21 2,075,463.24 1.43 Risk of expected credit

loss

Guangxi Power Grid

Corporation 135,146,343.47 4,606,735.15 3.41


loss

State Grid Jibei Electric

Power Company 94,472,217.80 4,387,469.52 4.64


loss

State Grid Ningxia Electric

Power Company 106,380,526.81 3,879,597.52 3.65


loss

State Grid Tianjin Electric

Power Company 16,090,223.60 44,453.22 0.28


loss


142 / 329

Hainan Power Grid Co., Ltd. 34,551,956.78 685,597.61 1.98 Risk of expected credit

loss

State Grid Jiangxi Electric

Power Company 106,275,074.99 3,367,364.57 3.17


loss

Other single items

insignificant 109,465,083.43 10,642,709.06 9.72


loss

Total 6,207,916,720.09 497,726,094.37 8.02 /

Note to Bad debt reserve based on single asset:


Bad debt reserve based on portfolio:


Items with bad debt reserve provided by portfolio: Electricity fees receivable

Unit: Yuan Currency:

RMB

Name

Closing balance

Accounts receivable Bad debt reserve Proportion (%)

Electricity fees

receivable 3,350,781,233.35 13,634,742.83 0.41

Total 3,350,781,233.35 13,634,742.83 0.41

Recognition standard and description of bad debt reserve based on portfolio:


Items with bad debt reserve provided by portfolio: Heating fees receivable


RMB

Name

Closing balance


Heating fees

receivable 114,209,153.27

Total 114,209,153.27




143 / 329

Items with bad debt reserve provided by portfolio：Others


RMB

Name

Closing balance


Others 84,278,347.33 1,158,124.45 1.37

Total 84,278,347.33 1,158,124.45 1.37



Make the disclosure with reference to other receivables if the bad debt reserve is provided according to

the general model of expected credit loss:








Type Beginning

balance


Closing

balance Reserve

Take-back or

recovery

Offset

or write-

off

Other

change

Bad debt

reserve

based on

single asset

427,016,594.35 88,937,660.55 18,228,160.53 497,726,094.37

Bad debt

reserve

based on

portfolio

14,792,867.28 14,792,867.28

Total 441,809,461.63 88,937,660.55 18,228,160.53 512,518,961.65


144 / 329

Name Taken-back or recovered

amount Take-back method

Economic and Information

Bureau of Zhongshan District,

Liupanshui City

2,874,754.71 Money recovery

State Grid Qinghai Electric

Power Company 14,013,097.31 Money recovery

Total 16,887,852.02 /

(4) Accounts receivable actually written off in the current period


(5) Accounts receivable from top-five debtors in respect of closing balance



Name

Closing balance

Accounts receivable

Proportion of total

accounts receivables

(%)

Bad debt reserve

Yunnan Power Grid

Corporation 1,620,938,515.10 16.61 88,406,762.70

Hami Power Supply



Corporation

1,057,223,821.80 10.84 42,288,250.80

State Grid North China

Branch 891,285,044.24 9.13

Guangxi Power Grid

Corporation 686,375,901.13 7.03 4,606,735.15

State Grid Gansu Electric

Power Company 638,711,466.21 6.55 21,643,854.22

Total 4,894,534,748.48 50.16 156,945,602.87

(6) Accounts receivable derecognized due to transfer of financial assets



145 / 329

(7) Amount of assets and liabilities established by transfer and further involvement of accounts

receivable


Other notes:


5. Accounts receivable financing





Total 189,719,611.89 121,353,266.61

Change in amount and fair value of accounts receivable financing in the current period:



Item

Balance at

end of last

year

Increase in

the current

period

Derecognition

in the current

period

Other

change

Closing

balance

Accumulated

loss reserves

recognized in

other

comprehensive

incomes

Notes

receivable

121,353,266.

61

145,029,938.

40 76,663,593.12

189,719,611.

89 -743,475.21

Total 121,353,266.

61

145,029,938.

40 76,663,593.12

189,719,611.

89 -743,475.21

Make the disclosure with reference to other receivables if the bad debt reserve is provided according to

the general model of expected credit loss:


Other notes:


7. Advance payments

(1) Presentation based on age of advance payment




146 / 329

Age


Amount Proportion (%) Amount Proportion (%)

Within 1 year 122,472,389.01 92.39 93,242,079.36 88.33

1~ 2 years 1,918,337.61 1.45 4,128,900.95 3.91

2~ 3 years 1,637,634.44 1.24 1,695,924.86 1.61

Over 3 years 6,515,949.46 4.92 6,489,038.21 6.15

Total 132,544,310.52 100.00 105,555,943.38 100.00

(2) Advance payments of top-five objects of payment in respect of closing balance



Object of payment Closing balance Proportion of total closing balance of

advance payments (%)

CNBM International Corporation 39,700,000.00 29.95

Changzhou Tianhe Smart Energy

Engineering Co., Ltd. 12,658,000.00 9.55

Datong Coal Industry Co., Ltd. 8,000,000.00 6.04

China Railway Beijing Group

Tangshan Freight Center 6,236,967.80 4.71

PowerChina Sinohydro Bureau 7

Co., Ltd. 4,593,015.35 3.47

Total 71,187,983.15 53.72

Other notes



Presentation




Interests receivable 122,942.28 6,224,440.53

Dividends receivable 98,766,642.42


147 / 329


Total 316,564,496.01 539,655,323.30

Other notes:


Interests receivable

(1) Classification of interests receivable




Fixed-term deposits

Entrusted loans

Bond investments

Others 122,942.28 6,224,440.53

Total 122,942.28 6,224,440.53

(2) Major overdue interests


(3) Provision of bad debt reserve


Other notes:



(1) Dividends receivable



Project (or investee) Closing balance Beginning balance

Grandblue Environment Co., Ltd. 14,523,195.00

Jiangsu Ligang Electric Power Co.,

Ltd. 35,333,915.95


148 / 329

Jiangyin Ligang Power Generation

Co., Ltd. 48,909,531.47

Total 98,766,642.42

(2) Major dividends receivable with age over 1 year




Other notes:


Other receivables

(1) Disclosure based on account age



Age Closing book balance

Within 1 year

Including:Those within 1 year

Within 6 months (including 6 months) 117,527,307.23

From 6 months to 1 year (including 1 year) 40,240,030.80

Subtotal of those within 1 year 157,767,338.03

1~ 2 years 48,384,100.12

2~ 3 years 19,557,062.98

Over 3 years

3~ 4 years 7,201,685.51

4~ 5 years 1,111,425.43

Over 5 years 45,551,178.19

Total 279,572,790.26

(2) Classification based on nature of accounts



149 / 329


Nature Closing book balance Beginning book balance

Investment transfer amount 355,612,000.00

Preliminary expenses of project 164,657,078.44 143,059,771.69

Security deposits 49,415,262.62 44,074,270.13

Guarantee deposits 1,532,585.91 1,407,611.01

Imprest funds 5,108,863.32 924,702.74

Disbursements 4,476,459.47 185,869.20

Others 54,382,540.50 44,823,817.76

Total 279,572,790.26 590,088,042.53




Bad debt reserve

1st stage 2nd stage 3rd stage

Total Expected credit

loss in the

following 12

months

Expected credit loss

in the whole duration

(without credit

impairment)

Expected credit

loss in the whole

duration (with

credit impairment)

Credit impairment

Balance on January 1,

2021 8,137,708.12 6,952,892.20 41,566,559.44 56,657,159.76

Balance on January 1,

2021 in the current period 8,137,708.12 6,952,892.20 41,566,559.44 56,657,159.76

--Transfer to the 2nd

stage

--Transfer to the 3rd stage

--Back to the 2nd stage

--Back to the 1st stage

Reserve in the current

period 536,888.49 4,689,741.41 1,125,974.55 6,352,604.45

Recovery in the current

period 493,062.99 296,635.64 17,731.84 807,430.47


150 / 329

Offset in the current

period 276,189.38 276,189.38

Write-off in the current

period 28,265.41 28,265.41

Other change

Balance on June 30,

2021 7,877,078.83 11,345,997.97 42,674,802.15 61,897,878.95

Notes to significant change in book balance of other receivables with change in loss reserve in the current

period:


Basis for the provision of bad debt reserve and the assessment of significant increase in credit risk of

financial instruments:





Type Beginning

balance


Closing

balance Reserve

Take-back

or recovery

Offset or

write-off

Other

change

Bad debt reserve

based on single

asset

56,657,159.7

6

6,352,604.4

5 807,430.47

304,454.7

9

61,897,878.9

5

Total 56,657,159.7

6

6,352,604.4

5 807,430.47

304,454.7

9

61,897,878.9

5



(5) Other receivables actually written off in the current period



Item Written-off amount

Other receivables actually written off 28,265.41

Therein, write-off of major other receivables:


Notes to write-off of other receivables:


151 / 329


(6) Other receivables from top-five debtors in respect of closing balance



Name Nature of

money Closing balance Age

Proportion of total

closing balance of

other receivables

(%)

Closing balance of

bad debt reserve

Qinzhou Phase III project

Preliminary

expense of

project

80,741,573.40 Within 1 year 28.88 1,171,335.32

National Treasury

Centralized Collection and

Payment Center affiliated

to Bureau of Finance of

Hengfeng County

Subsidy 35,729,672.00 Within 3

years 12.78 1,119,974.55

Hangjin Qi Energy Bureau

Project

performance

security

30,000,000.00 1-2 years 10.73 39,215.23

Myanmar Nam Lwe

Project

Preliminary

expense of

project

24,703,055.01 Over 5 years 8.84 24,703,055.01

Fuxin Branch of State Grid

Liaoning Comprehensive

Energy Service Co., Ltd.

Security 10,000,000.00 Within 1 year 3.58

Total / 181,174,300.41 / 64.81 27,033,580.11

(7) Accounts receivable involving government subsidies


(8) Other receivables derecognized due to transfer of financial assets


(9) Amount of assets and liabilities established by transfer and further involvement of other

receivables


Other notes:



152 / 329

9. Inventories

(1) Classification of inventories



Item


Book balance

Depreciation reserve of

inventories/ impairment

reserve of contract

performance cost

Book

value Book balance

Depreciation reserve of

inventories/ impairment

reserve of contract

performance cost

Book

value

Raw

material 1,261,509,613.02 99,546,533.82 1,161,963,079.20 1,045,022,165.22 103,226,482.35 941,795,682.87

In-stock

goods 1,016,242.85 1,016,242.85 2,089,056.58 474,481.07 1,614,575.51

Revolving

materials 11,717,002.77 7,521.36 11,709,481.41 11,375,879.54 7,521.36 11,368,358.18

Total 1,274,242,858.64 99,554,055.18 1,174,688,803.46 1,058,487,101.34 103,708,484.78 954,778,616.56

(2) Depreciation reserve of inventories and impairment reserve of contract performance cost



Item Beginning balance

Increase in the current period Decrease in the current period

Closing balance

Reserve Others Recovery or offset Others

Raw material 103,226,482.35 3,679,948.53 99,546,533.82


153 / 329

In-stock goods 474,481.07 474,481.07

Revolving materials 7,521.36 7,521.36

Total 103,708,484.78 4,154,429.60 99,554,055.18

(3) Notes to capitalized amount of borrowings included in the closing balance of inventories


(4) Notes to amortized amount of contract performance cost in the current period


Other notes:



154 / 329

10. Contract assets

(1) Details of contract assets


(2) Amount and reason of significant change in book value in the report period


(3) Impairment reserve provided for contract assets in the current period


Other notes:


11. Assets held for sale


12. Non-current assets due within 1 year


13. Other current assets




Deductible input taxes 861,843,053.90 996,206,655.40

Tax prepayments 14,842,534.00 37,687,817.09

Others 93,207.70 403,484.62

Total 876,778,795.60 1,034,297,957.11

14. Creditor investments

(1) Details of creditor investments


(2) Significant creditor investments at end of period


(3) Provision of impairment reserves



155 / 329

15. Other creditor investments

(1) Details of other creditor investments


(2) Significant other creditor investments at end of period


(3) Provision of impairment reserves


Other notes:



156 / 329

16. Long-term receivables

(1) Details of long-term receivables



Item

Closing balance Beginning balance Discount

rate

interval Book balance Bad debt reserve Book

value Book balance Bad debt reserve

Book

value

Shareholders'

borrowings 1,133,219,924.72 1,011,933.21 1,132,207,991.51 1,118,119,136.23 1,033,002.99 1,117,086,133.24

Others 103,108,591.53 62,550,592.61 40,557,998.92 80,476,020.62 62,523,497.77 17,952,522.85

Total 1,236,328,516.25 63,562,525.82 1,172,765,990.43 1,198,595,156.85 63,556,500.76 1,135,038,656.09 /




Bad debt reserve


Total Balance on January 1,

2021

Expected credit loss in the whole

duration (without credit

impairment)

Expected credit loss in the whole

duration (with credit impairment)

Balance on January 1, 2021 1,056,500.76 62,500,000.00 63,556,500.76


157 / 329

Balance on January 1, 2021 in

the current period 1,056,500.76 62,500,000.00 63,556,500.76

--Transfer to the 2nd stage

--Transfer to the 3rd stage

--Back to the 2nd stage

--Back to the 1st stage

Reserve in the current period 27,094.84 27,094.84

Recovery in the current period 21,069.78 21,069.78

Offset in the current period

Write-off in the current period

Other change

Balance on June 30, 2021 1,062,525.82 62,500,000.00 63,562,525.82

Notes to significant change in book balance of long-term receivables with change in loss reserve in the current period:


Basis for the provision of bad debt reserve and the assessment of significant increase in credit risk of financial instruments


(3) Long-term receivables derecognized due to transfer of financial assets



158 / 329

(4) Amount of assets and liabilities established by transfer and further involvement of long-term receivable


Other notes:


17. Long-term equity investment



Investee Beginning

balance

Increase or decrease in the current period

Closing

balance

Closing

balance of

impairment

reserve Additional

investment

Negative

investment

Profit or loss

of investment

confirmed by

equity

method

Adjustment

of other

comprehen

sive

incomes

Other

equity

change

Declared

issuance of

cash

dividend or

profit

Provision of

impairment

reserve

Others

I. Joint

ventures

Cloud Wind

Farm

Holdings AB

206,965,495

.62

-

26,853,412.7

1

1,313,825.7

3

181,425,908.

64

Inch Cape

Offshore

Limited

Holdings

94,518,506.

52

-

4,254,552.42 560,180.92

90,824,135.0

2

Subtotal 301,484,002

.14

-

31,107,965.1

3

1,874,006.6

5

272,250,043.

66


159 / 329

II. Affiliated

companies

SDIC Finance

Co., Ltd.

2,643,133,9

11.76

40,737,344.4

5

11,289,308.

62

118,797,334.

40

2,576,363,23

0.43

Jiangxi

Ganneng

Energy

Limited

2,031,153,2

75.77

13,199,142.5

4 787.20

32,900,000.0

0

2,011,453,20

5.51

Lestari Listrik

Pte.Ltd

1,275,812,6

74.24

17,955,324.0

6

18,839,394.1

4

-

3,689,856.2

1

1,271,238,74

7.95

180,871,540

.32

Grandblue

Environment

Co., Ltd.

1,065,642,5

69.79

50,765,761.8

8

36,192,169.

49

14,523,195.0

0

1,138,077,30

6.16

Beatrice

Offshore

Windfarm

Holdco

Limited

928,147,119

.97

134,292,07

1.23

66,606,328.4

6

113,340,23

9.83

65,830,147.2

1

4,725,613.4

7

912,697,083.

30

Tongshan

Huarun

Electric

Power Co.,

Ltd.

484,960,672

.75

-

9,859,107.87

475,101,564.

88

Jiangsu

Ligang

Electric

Power Co.,

Ltd.

402,729,714

.18

-

13,708,771.7

6

35,333,915.9

5

353,687,026.

47

Xuzhou

Huarun

358,366,234

.56 3,180,906.26

361,547,140.

82


160 / 329

Electric

Power Co.,

Ltd.

Jiangyin

Ligang Power

Generation

Co., Ltd.

328,870,675

.60

12,934,180

.54 27,601.29

48,909,531.4

7

292,922,925.

96

Fujian

Sanchuan

Offshore

Wind Power

Co., Ltd.

206,717,814

.78

40,000,000.0

0

12,780,166.0

6

259,497,980.

84

Baiyin Daxia

Electric

Power Co.,

Ltd.

33,245,968.

46 5,755,270.54 3,989,520.00

35,011,719.0

0

Xiamen

Haicang

Thermal

Energy

Investment

Co., Ltd.

23,381,090.

27 1,160,536.13

24,541,626.4

0

Xiamen

Haihua

Electric

Power

Technology

Co., Ltd.

19,894,363.

02 -209,148.24

19,685,214.7

8

Hainan

Holdings

Energy Co.,

Ltd.

11,619,933.

39 -363,039.24

11,256,894.1

5


161 / 329

Lanzhou New

District

Vocational

Education

Park

Distribution

Co., Ltd.

2,458,637.1

9 2,458,637.19

Subtotal 9,816,134,6

55.73

40,000,000.0

0

134,292,07

1.23

200,934,893.

81

124,629,54

8.450

36,220,557.

98

339,123,038.

17

1,035,757.2

6

9,745,540,30

3.84

180,871,540

.32

Total 10,117,618,

657.87

40,000,000.0

0

134,292,07

1.23

169,826,928.

68

124,629,54

8.45

36,220,557.

98

339,123,038.

17

2,909,763.9

1

10,017,790,3

47.50

180,871,540

.32


162 / 329

18. Long-term equity instrument investments

(1) Details of investments in other equity instruments



Project Closing balance Beginning balance

Yunnan Coal Chemical Industry Group

Co., Ltd.

54,176,223.90 54,176,223.90

Gui'an New District Electricity

Distribution Supply Co., Ltd.

52,369,128.00 52,369,128.00

National Coal Exchange CenterCo., Ltd. 12,000,000.00 12,000,000.00

SDIC Hami Industrial Co., Ltd. 8,471,145.00 8,471,145.00

Beijing Power Exchange Center Co.,

Ltd.

6,597,610.00 6,597,610.00

Tianjin Power Exchange CenterCo., Ltd. 9,541,095.99 3,013,249.99

Sichuan Power Exchange CenterCo.,

Ltd. 3,177,388.07 1,276,964.92

Guangxi Power Exchange CenterCo.,

Ltd. 2,607,256.83

Total 148,939,847.79 137,904,321.81

(2) Details of non-trading equity instrument investments



Project

Details of

non-

trading

equity

instrument

investment

s

Accumulat

ed income

Accumulated

loss

Amount of

retained incomes

from carry-over

of other

comprehensive

incomes

Reason for

measurement

at fair value

with change

included in

other

comprehensiv

e income

Reason for

carry-over of

other

comprehensiv

e incomes

into retained

incomes

Yunnan Coal

Chemical

Industry Group

Co., Ltd.

26,306,219.79

Gui'an New

District

Electricity

Distribution

Supply Co., Ltd.

7,630,872.00


163 / 329

SDIC Hami

Industrial Co.,

Ltd.

1,528,855.00

Note: The equity instrument investments of the Company and its subsidiaries mean the investments to be

held by the Company and its subsidiaries in a long period for their strategic purpose or operation so the

Company and its subsidiaries designate those equity instrument investments as financial assets measured

at fair value and with change included in other comprehensive incomes.

Other notes:


19. Other non-current financial assets


20. Investment properties

Measuring mode of investment properties

(1) Investment properties measured by cost


Item Houses and buildings Land use right Total

I. Original book value

1. Beginning balance 244,611,064.91 2,200,000.00 246,811,064.91

2. Increase in the current

period 12,834,522.73 12,834,522.73

(1) Outsourcing

(2) Transfer-in from

inventories/ fixed assets/ projects

under construction

12,834,522.73 12,834,522.73

(3) Increase in business

combination

3. Decrease in the current

period

(1) Disposal

4. Closing balance 244,611,064.91 15,034,522.73 259,645,587.64

II. Accumulated depreciation and

accumulated amortization

1. Beginning balance 155,482,365.71 1,098,150.88 156,580,516.59


period 2,803,579.63 3,231,076.79 6,034,656.42


164 / 329

(1) Reserve or amortization 2,803,579.63 387,727.33 3,191,306.96

(2) Transfer-in from fixed

assets\ intangible assets 2,843,349.46 2,843,349.46


period

(1) Disposal

4. Closing balance 158,285,945.34 4,329,227.67 162,615,173.01

III. Impairment reserve

1. Beginning balance


period

(1) Reserve


period

(1) Disposal

4. Closing balance

IV. Book value

1. Closing book value in

current period 86,325,119.57 10,705,295.06 97,030,414.63

2.Beginning book value in

current period 89,128,699.20 1,101,849.12 90,230,548.32

(2) Investment properties without certificates of title:


Other notes


21. Fixed assets

Presentation




Fixed assets 131,532,006,152.28 134,059,506,013.87


165 / 329

Disposal of fixed assets 4,965,071.96 6,436,300.16

Total 131,536,971,224.24 134,065,942,314.03


166 / 329

Fixed assets

(1) Details of fixed assets



Item Houses and buildings Machine and

equipment Transportation tools

Office and other

equipment Total

I. Original book value:

1. Beginning balance 128,794,258,541.69 73,155,658,401.44 391,576,013.90 531,282,460.97 202,872,775,418.00

2. Increase in the current period 75,213,489.76 1,779,451,195.28 3,466,324.30 79,662,702.59 1,937,793,711.93

(1) Acquisition 441,677.41 27,603,153.79 2,738,550.06 14,167,529.00 44,950,910.26

(2) Transfer-in from projects

under construction 17,575,472.50 538,227,071.56 19,354,577.26 575,157,121.32


combination 57,196,339.85 892,746,782.18 727,774.24 46,040,770.34 996,711,666.61

(4) Adjustment of original value 263,192,411.14 263,192,411.14

(5) Transfer into investment

properties

(6) Others 57,681,776.61 99,825.99 57,781,602.60

3. Decrease in the current period 248,219,128.16 501,871,802.29 3,798,685.42 10,381,798.35 764,271,414.22

(1) Disposal or retirement 989,807.42 107,068,147.37 3,651,188.78 9,436,904.44 121,146,048.01


167 / 329

(2) Adjustment of original value 210,117,172.27 52,592,642.04 694,329.76 263,404,144.07

(3) Transfer into intangible assets 37,112,148.47 37,112,148.47

(4)Others 342,211,012.88 147,496.64 250,564.15 342,609,073.67

4. Closing balance 128,621,252,903.29 74,433,237,794.43 391,243,652.78 600,563,365.21 204,046,297,715.71

II. Accumulated depreciation

1. Beginning balance 34,812,887,928.27 33,017,210,452.60 269,053,548.14 394,077,926.52 68,493,229,855.53

2. Increase in the current period 1,727,020,155.08 2,065,844,071.04 12,088,547.21 48,232,484.94 3,853,185,258.27

(1) Reserve 1,711,097,806.67 1,774,253,258.01 11,462,199.08 32,703,383.03 3,529,516,646.79


combination

15,922,348.41 272,249,078.52 626,348.13 14,834,611.02 303,632,386.08

(3) Others 19,341,734.51 694,490.89 20,036,225.40

3. Decrease in the current period 515,189.31 117,346,216.91 3,694,403.16 9,489,490.10 131,045,299.48

(1) Disposal or retirement 515,189.31 83,723,332.93 3,536,056.96 9,292,101.36 97,066,680.56

(2) Others 33,622,883.98 158,346.20 197,388.74 33,978,618.92

4. Closing balance 36,539,392,894.04 34,965,708,306.73 277,447,692.19 432,820,921.36 72,215,369,814.32


1. Beginning balance 16,204,594.85 303,664,250.63 101,788.59 68,914.53 320,039,548.60

2. Increase in the current period


168 / 329

(1) Reserve

(2) Increase in combination scope

3. Decrease in the current period 474,618.11 20,629,671.88 1,410.26 12,099.24 21,117,799.49

(1) Disposal or retirement 474,618.11 20,629,671.88 1,410.26 12,099.24 21,117,799.49

4.Closing balance 15,729,976.74 283,034,578.75 100,378.33 56,815.29 298,921,749.11

IV. Book value

1. Closing book value in current

period 92,066,130,032.51 39,184,494,908.95 113,695,582.26 167,685,628.55 131,532,006,152.28

2. Beginning book value in current

period 93,965,166,018.57 39,834,783,698.21 122,420,677.17 137,135,619.92 134,059,506,013.87

Semi-annual Report of 2021

169 / 329

(2) Details of temporarily idle fixed assets


(3)Fixed assets leased in by financing lease


(4) Fixed assets leased out by operating lease


(5) Details of fixed assets without certificates of title



Project Book value Reason for no certificate of title

SDIC Qinzhou 457,526,281.06 In process

Other notes:


Disposal of fixed assets




Machine and equipment 4,941,490.44 6,357,681.51

Office equipment 13,791.54 38,601.17

Transportation tools 5,073.00 8,373.00

Houses and buildings 4,716.98 31,644.48

Total 4,965,071.96 6,436,300.16

22. Projects under construction

Presentation


Monetary unit: RMB Yuan

Item Ending balance Beginning balance

Projects under construction 59,187,240,494.85 55,400,180,763.55


170 / 329

Engineering materials 3,520,900.07 36,229,363.87

Total 59,190,761,394.92 55,436,410,127.42


171 / 329

Projects under construction

(1). Details of projects under construction



Project

Ending balance Beginning balance

Book balance Impairment reserve Book value Book balance Impairment reserve Book value

Lianghekou Hydropower Station 45,404,744,211.12 45,404,744,211.12 42,782,755,735.44 42,782,755,735.44

Yangfanggou Hydropower

Station 10,996,754,167.21 10,996,754,167.21 9,935,763,457.88 9,935,763,457.88

Kala Hydropower Station 757,019,858.55 757,019,858.55 702,011,264.17 702,011,264.17

Mengdigou Hydropower Station 601,900,863.00 601,900,863.00 478,036,780.35 478,036,780.35

Production technology

reformation of Beijiang Power

Plant Phase 1 Project

37,019,097.19 37,019,097.19 38,108,004.06 38,108,004.06

Qinzhou Company - Shanghai

Huayi Heat Supply Reformation 50,847,465.85 50,847,465.85 95,913,552.39 95,913,552.39

Tianjing Ninghe 50MW Wind

Power Project 5,777,619.42 5,777,619.42 314,623,133.46 314,623,133.46

Jingbu 100MW Agricultural-

Solar Generation Project 238,261,315.46 238,261,315.46 13,646,269.85 13,646,269.85

Hami Jingxia 100MW Wind

Power Project - - 16,993.97 16,993.97


172 / 329

Other projects 1,094,915,897.05 1,094,915,897.05 1,039,305,571.98 1,039,305,571.98

Total 59,187,240,494.85 59,187,240,494.85 55,400,180,763.55 55,400,180,763.55

(2). Change in significant projects under construction in the current period



Item Budget Beginning

balance

Increase in the

current period

Amount of fixed

assets transferred

in in the current period

Other

decrease in the

current

period

Ending

balance

Proportion

of budget

by accumulate

d project

investment (%)

Work progres

s

Accumulated

amount of

capitalized interest

Including:

Amount of capitalized

interest in the

current period

Capitali

zation rate of

interest

in the current

period

(%)

Source of

fund

Lianghekou

Hydropower

Station

66,457,290,100.00 42,782,755,735.4

4 2,716,042,687.2

1 16,393,850.03

45,482,404,572.62

68.44 68.44 5,979,470,782.1

5 523,010,635.83 4.01

Self-owned

and

raised funds

Yangfanggou Hydropower

Station

17,054,823,200.00 9,935,763,457.88 1,061,299,927.9

0 309,218.57

10,996,754,167

.21 64.48 64.48

1,255,158,443.0

3 186,045,777.78 3.90

Self-

owned and

raised

funds

Kala Hydropower

Station 17,121,092,800.00 702,011,264.17 55,008,594.38 757,019,858.55 4.42 4.42 12,569,661.02

Self-

owned

and raised

funds


173 / 329

Tianjin 50MW Wind Power

Project

419,673,600.00 314,623,133.46 51,699,013.75 366,322,147.21 75.89 75.89 7,220,418.52 392,554.78 4.00

Self-

owned and

raised

funds

Qinzhou

Company -

Shanghai Huayi

Heat Supply

Reformation

180,000,000.00 95,913,552.39 45,254,765.79 50,658,786.60 53.29 53.29

Self-

owned

funds

Production

technology reformation of

Beijiang Power Plant Phase 1

Project

532,564,800.00 38,108,004.06 -515,274.79 573,632.08 37,019,097.19 56.17 56.17 17,905,476.08 967,438.31 4.15

Self-

owned

and raised

funds

Hami Jingxia 100MW Wind

Power Project

675,358,800.00 16,993.97 16,993.97 89.21 100.00 36,518,534.22 3,684,869.29 4.41

Self-

owned and

raised

funds

Mengdigou

Hydropower Station

34,722,000,000.00 478,036,780.35 123,881,178.03 17,095.38 601,900,863.00 1.73 1.73

Self-

owned

and raised

funds

Total 137,162,803,300.00 54,347,228,921.7

2

4,007,416,126.4

8 428,887,703.03

57,925,757,345

.17

7,308,843,315.0

2 714,101,275.99

(3). Provision of impairment reserves for projects under construction in the current period


Other notes:



174 / 329

Engineering materials



Item


Book balance Impairment

reserve Book value Book balance

Impairment

reserve Book value

Instrument and apparatus 2,371,267.24 2,371,267.24 2,371,267.24 2,371,267.24

Special equipment 600,369.14 600,369.14 33,601,078.69 33,601,078.69

Special materials 548,375.20 548,375.20 203,843.34 203,843.34

Others 888.49 888.49 53,174.60 53,174.60

Total 3,520,900.07 3,520,900.07 36,229,363.87 36,229,363.87

23. Productive biological assets

(1). Productive biological assets measured by cost


(2). Productive biological assets measured by fair value


Other notes



175 / 329

24. Oil and gas assets


25. Right-of-use assets



Item Houses and buildings

Mechanical Equipment Means of transport Lang use right BOT franchise right Office and other

equipment Total


1. Beginning balance 1,769,781.77 88,982,034.82 1,984,168.99 264,179,025.00 466,392,160.00 1,786,609.91 825,093,780.49


32,725,035.50 342,000,000.00 382,023.54 4,604,157.15 379,711,216.19

(1) New leasing 32,725,035.50 342,000,000.00 382,023.54 4,604,157.15 379,711,216.19

(2) Increase due to business

combination

(3) Re-evaluation for adjustment

(4) Others


period 149,430.25 149,430.25

(1) Disposal

(2) Others 149,430.25 149,430.25

4. Ending balance 34,494,817.27 430,982,034.82 2,216,762.28 268,783,182.15 466,392,160.00 1,786,609.91 1,204,655,566.43


176 / 329

II. Accumulated depreciation

1. Beginning balance 16,348,242.14 397,934.96 54,256,062.50 71,002,239.60


6,028,051.59 33,477,914.46 196,162.18 4,157,739.62 8,499,416.33 54,692.16 52,413,976.34

(1) Provision 6,028,051.59 33,477,914.46 196,162.18 4,157,739.62 8,499,416.33 54,692.16 52,413,976.34

(2) Others

3. Decrease in the current period

37,798.23 37,798.23

(1) Disposal

(2) Others 37,798.23 37,798.23

4. Ending balance 6,028,051.59 49,826,156.60 556,298.91 4,157,739.62 62,755,478.83 54,692.16 123,378,417.71




period

3. Decrease in the current period

4. Ending balance

IV. Book value

1. Ending book value 28,466,765.68 381,155,878.22 1,660,463.37 264,625,442.53 403,636,681.17 1,731,917.75 1,081,277,148.72

2. Beginning book value 1,769,781.77 72,633,792.68 1,586,234.03 264,179,025.00 412,136,097.50 1,786,609.91 754,091,540.89


177 / 329

26. Intangible assets

(1). Details of intangible assets



Item Land use right Software BOT franchise

right

House use

right Highway use right

Sea area use

right

Benbrack

development right

AFTON green

certificate Total



1,445,994,445.94 332,046,645.61 5,189,332,415.34 6,711,296.20 2,053,685,299.95 229,368,657.28 305,213,891.68 9,562,352,652.00

2. Increase in the

current period 37,898,388.47 3,086,770.87 2,234,772.17 99,540,623.03 142,760,554.54

(1) Acquisition

3,086,770.87 2,234,772.17 5,321,543.04

(2) Internal

R&D

(3) Increase due to business

combination

786,240.00 99,540,623.03 100,326,863.03

(4) Transfer-in of fixed assets

37,112,148.47 37,112,148.47

3. Decrease in

the current period 12,834,522.73 11,268.29 33,136,955.85 45,982,746.87

(1) Disposal

(2) Transfer into investment

properties

12,834,522.73 12,834,522.73

(3) Others 11,268.29 33,136,955.85 33,148,224.14


178 / 329

4. Ending balance 1,471,058,311.68 335,122,148.19 5,158,430,231.66 6,711,296.20 2,053,685,299.95 229,368,657.28 99,540,623.03 305,213,891.68 9,659,130,459.67

II. Accumulated amortization

1. Beginning

balance 326,575,967.16 215,020,634.30 3,802,461,926.16 3,516,405.80 611,495,404.94 56,620,148.75 39,378,078.81 5,055,068,565.92


18,467,534.93 14,754,561.43 102,268,810.14 78,242.22 25,701,904.38 3,008,703.10 7,217,232.47 171,496,988.67

(1) Provision 18,414,311.85 14,754,561.43 102,268,810.14 78,242.22 25,701,904.38 3,008,703.10 7,217,232.47 171,443,765.59

(2) Increase

due to business combination

53,223.08 53,223.08

3. Decrease in

the current period 2,836,589.65 5,003.56 8,093,321.58 10,934,914.79

(1) Disposal

（2）

Transfer into

investment properties

2,836,589.65 2,836,589.65

(3) Others 5,003.56 8,093,321.58 8,098,325.14

4. Ending

balance 342,206,912.44 229,770,192.17 3,896,637,414.72 3,594,648.02 637,197,309.32 59,628,851.85 46,595,311.28 5,215,630,639.80


1. Beginning

balance 174,381.36 10,321.13 185,021,258.55 185,205,961.04



179 / 329

3. Decrease in

the current period

4. Ending

balance 174,381.36 10,321.13 185,021,258.55 185,205,961.04

IV. Book value

1. Ending book value

1,128,677,017.88 105,341,634.89 1,076,771,558.39 3,116,648.18 1,416,487,990.63 169,739,805.43 99,540,623.03 258,618,580.40 4,258,293,858.83

2. Beginning

book value 1,119,244,097.42 117,015,690.18 1,201,849,230.63 3,194,890.40 1,442,189,895.01 172,748,508.53 265,835,812.87 4,322,078,125.04

The proportion of intangible assets formed by internal R&D of the Company in the balance of intangible assets at end of current period is 0.

(2). Land use right without certificate of title


Other notes:


27. Development expenditures



Item Beginning

balance

Increase in the current period Decrease in the current period

Ending balance Internal R&D

expenditure Others

Recognized as

intangible assets

Transferred into

current profits or

losses

Others

Independent R&D 25,128,060.00 11,026.19 131,320.75 25,007,765.44


180 / 329

Total 25,128,060.00 11,026.19 131,320.75 25,007,765.44

28. Business reputation

(1). Original book value of business reputation


(2). Impairment reserve of business reputation


(3). Relevant information of asset group or asset group portfolio containing business reputation


(4). Notes to impairment test process and key parameters (such as growth rate in the forecast period, growth rate in the stable period, profit rate, discount

rate and forecast period used for the expectation of present value of future cash flow) of business reputation and the recognition method for impairment loss

of business reputation


(5). Impact of business reputation impairment test


Other notes:


29. Long-term unamortized expenses



Item Beginning balance Increase in the current

period

Amount amortized in

the current period Other decreases Ending balance


181 / 329

Meizhouwan Phase 1

technical Reformation

Project (Note 1)

96,450,695.77 2,804,004.76 3,805,834.26 95,448,866.27

Huzhou land lease

compensation (Note 2) 19,179,040.00 479,476.02 18,699,563.98

Turpan Booster Station

Project (Note 3) 10,861,284.24 387,903.00 10,473,381.24

Dongchuan Yeniu

Phase 1 Wind Power

Project (Note 4)

6,288,805.61 203,732.82 6,085,072.79

Hami Santanghu

Project Pooling Station

(Note 5)

6,779,146.81 6,779,146.81

Jingbian Zhiguang

farmland occupation

tax (Note 6)

5,546,722.54 141,018.36 5,405,704.18

Others 15,661,935.64 9,997,283.80 15,738,701.68 9,920,517.76

Total 160,767,630.61 12,801,288.56 20,756,666.14 152,812,253.03

Other notes:

Note 1: The Meizhouwan Phase 1 Technical Reformation Project is the result of the acquisition of and combination with Fujian Pacific Electric Power Co., Ltd.,

mainly including denitration works, marine ship use right and power transmission&transformation facilities, low-nitrogen combustor modification, induced draft fan

modification, high-frequency power modification of electrostatic precipitator, ultra-low emission modification, house repair and other technical reformation works. The deadline for the amortization of the above technical reformation works is June 2025.


182 / 329

Note 2: The long-term unamortized expense of Huzhou Xianghui Nanxun 100MWp Fishing-Light Photovoltaic Power Project comes from the compensation for fish

ponds related to land lease; the original value is RMB 23,973,800.00 Yuan and is to be amortized within 25 Years; the amortization started from June 2016.

Note 3: The long-term unamortized expense of Turpan Booster Station Project comes from the paid project price of the 220kV booster station of SDIC Qingsong

Turpan New Energy Co., Ltd.; the original value is RMB 15,080,683.76 Yuan, which is amortized within 20 Years and has been amortized for 4 years.

Note 4: The long-term unamortized expense of Dongchuan Yeniu Phase 1 Wind Power Project comes from the paid entry road and other charges; its original value

is RMB 8,264.977.50 Yuan; of which, the entry road expense is to be amortized for 20 years.

Note 5: The long-term unamortized expense of Hami Santanghu Project Pooling Station comes from the paid project price of the Santangtu 220kV booster station of

Longyuan Barkol Wind Power Company; its original value is RMB 9,684,495.43 Yuan, which is to be amortized for 20 years and has been amortized for 6 years.

Note 6: The long-term unamortized expense of Jingbian Zhiguang comes from the farmland occupation tax before acquisition, and had been amortized for 59

months as at the end of 2020.

30. Deferred income tax assets/ liabilities

(1). Deferred income tax assets without offset



Item


Deductible temporary

differences

Deferred income tax

assets

Deductible temporary

differences

Deferred income tax

assets

Provision for unpaid expenses 2,447,623,575.33 370,659,946.63 2,198,471,865.54 333,831,532.24

Asset impairment reserve 658,224,544.54 150,259,134.94 638,397,077.70 147,799,720.79

Depreciation of fixed assets/

amortization of intangible assets 235,328,696.89 53,141,991.46 232,685,809.03 51,465,486.17


183 / 329

Deferred incomes 231,074,901.57 54,952,617.83 151,907,082.03 35,160,662.94

Provision for unpaid employee

salaries 110,280,000.00 16,542,000.00 110,280,000.00 16,542,000.00

Profits unrealized in internal

transaction 54,212,784.88 13,553,196.22 54,771,832.68 13,692,958.17

Change in fair value of cash flow

hedging instrument 91,632,637.00 15,577,548.29 50,636,478.42 9,620,930.90

Deductible losses 42,834,885.83 9,602,925.53 31,776,926.56 7,944,231.64

Change in fair value of notes

receivable financing 2,625,301.87 393,795.28 1,750,578.80 262,586.82

Others 7,939,956.95 1,984,989.25 5,078,667.29 1,269,666.84

Total 3,881,777,284.86 686,668,145.43 3,475,756,318.05 617,589,776.51

(2). Deferred income tax liabilities without offset



Item


Taxable temporary

differences

Deferred income tax

liabilities

Taxable temporary

differences

Deferred income tax

liabilities


184 / 329

Asset assessment appreciation due to

business combination not under the

same control

627,275,466.73 94,091,320.01 643,498,108.13 96,524,716.22

Trial operation revenue or expense 131,999,897.63 24,807,864.39 130,637,705.51 24,467,316.36

Amortization of intangible assets 124,820,669.62 25,229,245.45 60,844,653.78 13,073,802.44

Total 884,096,033.98 144,128,429.85 834,980,467.42 134,065,835.02

(3). Deferred income tax assets or liabilities presented as per the net amount after offset


(4). Details of unrecognized deferred income tax assets




Deductible temporary differences 46,111,627.15 41,773,102.72

Deductible losses 1,997,054,867.67 1,974,589,901.85

Total 2,043,166,494.82 2,016,363,004.57

(5). Deductible losses of unrecognized deferred income tax assets will be due in the following year




185 / 329

Year Ending amount Beginning amount Remark

2021 167,495,571.06 169,223,368.92

2022 387,046,601.18 416,152,737.33

2023 409,269,022.69 437,747,597.85

2024 129,898,107.87 160,000,524.77

2025 769,132,476.32 791,465,672.98

2026 134,213,088.55

Total 1,997,054,867.67 1,974,589,901.85 /

Other notes:


31. Other non-current assets



Item


Book balance Impairment reserve Book value Book balance Impairment reserve Book value

Input taxes to be deducted 1,791,399,364.36 1,791,399,364.36 1,523,534,669.46 1,523,534,669.46


186 / 329

Construction equipment

advance payment 225,651,106.59 225,651,106.59 107,987,567.08 107,987,567.08

Investment advance payment 192,200,000.00 192,200,000.00

Tax prepayments 11,124,288.06 11,124,288.06

Total 2,209,250,470.95 2,209,250,470.95 1,642,646,524.60 1,642,646,524.60


187 / 329

32. Short-term borrowings

(1). Classification of short-term borrowings




Pledge borrowings

Mortgage borrowings

Guaranteed borrowings

Credit borrowings 7,491,633,595.71 7,233,513,388.71

Total 7,491,633,595.71 7,233,513,388.71

(2). Overdue short-term borrowings


Other notes:


33. Trading financial liabilities


34. Derivative financial liabilities




Cash flow hedging instrument 31,667,518.57 62,505,777.66

Total 31,667,518.57 62,505,777.66

35. Notes payable



Type Ending balance Beginning balance

Bank acceptance bills 29,400,000.00 168,920,000.00


188 / 329

Commercial acceptance

bills 74,671,007.20 46,400,000.00

Total 104,071,007.20 215,320,000.00

The total amount of overdue notes payable at end of the period is 0 Yuan.

36. Accounts payable

(1). Presentation of accounts payable




Within 1 year (inclusive) 2,107,360,574.37 2,349,654,362.39

1-2 years (including 2 years) 113,288,611.38 228,601,564.30

2-3 years (including 3 years) 419,553,966.68 281,176,325.30

Over 3 years 190,081,377.34 213,732,335.91

Total 2,830,284,529.77 3,073,164,587.90

(2). Significant accounts payable aged over 1 year



Item Ending balance Reason for failure to pay or carry over

Xinjiang Goldwind Sci & Tech Co.,

Ltd. 37,465,787.63

Settlement date does not expire

XEMC Windpower Co., Ltd. 26,080,000.00 The settlement period does not expire

Huadian Heavy Industries Co., Ltd. 24,859,231.28 Not settled

Ming Yang Smart Energy Group

Limited 19,097,100.00

The settlement period of quality guarantee

deposit does not expire

GuoDian United Power Technology

Company LTD 18,216,000.02

The settlement period does not expire

Fujian Longking Environmental

Protection Co., Ltd. 15,927,791.67

Completion settlement not completed and

not meet the payment conditions in the

contract

DEC Dong Fang Turbine Co., Ltd. 15,350,116.00 Not meet the payment conditions


189 / 329

Shandong Sangrong Environmental

Protection Engineering Co., Ltd. 13,845,563.50

Not settled

DEC Dong Fang Electric Machinery

Co., Ltd. 13,808,182.18

Not meet the payment conditions agreed in

the contract

Total 184,649,772.28

Other notes:


37. Advance receipts

(1). Presentation of advance receipts




Within 1 year (inclusive) 5,799,476.77 13,965,741.76

Over 1 years 1,241,348.10 1,360,082.91

Total 7,040,824.87 15,325,824.67

(2). Significant advance receipts aged over 1 year



Item Ending balance Reason for failure to pay or

carry over

Muli Minhe Hydropower


1,000,000.00 No settlement due to project

shutdown

Total 1,000,000.00 /

Other notes:


38. Contract liabilities

(1). Details of contract liabilities


(2). Amount and reason of significant change in book value in the report period



190 / 329

Other notes:


39. Payroll payable

(1). Presentation of payroll payable



Item Beginning

balance

Increase in the

current period

Decrease in the

current period Ending balance

I. Short-term salaries 90,139,191.78 1,049,442,513.90 1,035,006,656.27 104,575,049.4

1

II. Post-employment

benefits - defined

contribution plan

1,533,470.22 146,331,511.85 145,998,735.65 1,866,246.42

III. Dismission welfare 561,923.29 561,923.29

IV. Other welfare due

within 1 year 3,125,988.27 1,666,583.09 1,459,405.18

Total 91,672,662.00 1,199,461,937.31 1,183,233,898.30 107,900,701.0

1

(2). Presentation of short-term salaries



Item Beginning

balance

Increase in the

current period

Decrease in the


I. Salary, bonus,

allowance and subsidy 8,335,046.89 804,759,796.63 774,342,860.72 38,751,982.80

II. Employees' benefits 41,947,134.48 41,840,235.94 106,898.54

III. Social insurance

charge 44,616,501.86 79,729,263.02 97,077,330.08 27,268,434.80

Including: Medical

insurance charge 43,231,479.54 71,256,789.15 90,521,818.31 23,966,450.38

Employment

injury insurance

charge

2,374,652.19 2,370,837.99 3,814.20

Maternity

insurance charge 119.75 2,012,553.82 2,012,673.57


191 / 329

Others 1,384,902.57 4,085,267.86 2,172,000.21 3,298,170.22

IV. Housing fund 77,695,273.99 77,322,650.67 372,623.32

V. Labor union

expenditure and

employee education

fund

37,184,052.39 20,818,408.61 27,885,978.11 30,116,482.89

VI. Short-term

compensated absence

VII. Short-term profit

sharing plan

VIII. Other short-term

salaries 3,590.64 24,492,637.17 16,537,600.75 7,958,627.06

Total 90,139,191.78 1,049,442,513.90 1,035,006,656.27 104,575,049.41

(3). Presentation of defined contribution plan



Item Beginning

balance

Increase in the

current period

Decrease in the


1. Basic endowment

insurance 81,619,055.57 81,160,502.91 458,552.66

2. Unemployment

insurance expense 80,816.77 3,064,750.97 3,141,040.03 4,527.71

3. Enterprise annuity

payment 1,452,653.45 61,647,705.31 61,697,192.71 1,403,166.05

Total 1,533,470.22 146,331,511.85 145,998,735.65 1,866,246.42

Other notes:


40. Taxes payable




Corporate income tax rate 579,928,358.63 467,826,060.89


192 / 329

VAT 318,718,059.55 107,855,137.19

Resource tax 71,264,032.28 85,114,910.96

Individual income tax 6,116,218.15 68,088,509.00

Land use right 9,490,419.77 7,632,394.93


construction tax

22,971,589.69 7,018,199.21

Education fee surcharge 15,748,191.79 4,256,223.10

Housing property tax 8,376,653.91 6,646,462.06

Environment protection tax 3,737,702.70

Others 98,829,401.52 101,248,152.66

Total 1,135,180,627.99 855,686,050.00

41. Other payables

Presentation




Interests payable


Other payables 5,592,243,760.22 6,295,684,152.39

Total 9,641,229,483.62 6,439,644,370.04

Interests payable


Dividends payable




Ordinary share dividends 3,924,335,970.00 11,352,299.85


193 / 329

Preferred share/ perpetual bond

dividends classified as equity

instrument

124,649,753.40 132,607,917.80

- Renewable corporate

bonds 124,649,753.40 132,607,917.80

Total 4,048,985,723.40 143,960,217.65

Other payables

(1). Other payables presented by nature




Project funds and security

deposits 2,021,418,438.37 2,203,670,144.40

Reservoir funds 2,024,202,898.56 1,771,034,273.40

Project acquisition funds 191,219,107.62 121,438,208.41

Insurance indemnities 26,779,895.10 17,282,046.67

Special funds 18,526,371.69 106,608,277.15

Withholdings 6,838,421.84 1,129,996.35

Social security deposits 4,438,647.84 9,599,808.51

Others 1,298,819,979.20 2,064,921,397.50

Total 5,592,243,760.22 6,295,684,152.39

(2). Significant other payables aged over 1 year



Item Ending balance Reason for failure to pay or carry

over

Shanghai Electric Wind Power

Group Co., Ltd. 54,170,312.80

Not meet the payment conditions

agreed in the agreement

Project acquisition funds 34,838,208.41 Not meet the payment conditions



194 / 329

Liupanshui Zhongshan Land

Development&Utilization

Service Co., Ltd.

18,498,890.00 Not meet the payment conditions


Newsky (Hong Kong)

Environment Co., Ltd. 16,203,641.13

Not meet the payment conditions


Total 123,711,052.34 /

Other notes:


42. Liabilities held for sale


43. Non-current liabilities due within 1 year




Long-term borrowings due

within 1 year 7,879,952,730.72 13,738,157,548.52

Bonds payable due within 1

year 2,235,217,534.22 1,205,924,931.50

Long-term payable due within

1 year 97,663,757.75 565,457,966.02

Lease liabilities due within 1

year 20,666,879.71 49,754,786.73

Total 10,233,500,902.40 15,559,295,232.77

(1) Long-term borrowings due within 1 year



Pledge borrowings 1,070,284,572.48 1,024,939,920.89

Mortgage borrowings 123,610,525.10 109,157,616.57

Guaranteed borrowings 62,990,989.75 76,568,772.66

Credit borrowing 6,623,066,643.38 12,527,491,238.41


195 / 329

Total 7,879,952,730.72 13,738,157,548.52


196 / 329

(2) Bonds payable due within 1 year


Name of bond Par

value Date of issue

Term of

bond Amount

issued Beginning

balance Reclassified and

adjusted

Issued in the

current period

Provision of

interest based on par value

Amortization

of premium and discount

Repaid in the

current period

Ending

balance

Corporate bonds of

Yalong River

Hydropower in 2019 (primary offering)

100 2019/3/20 3 years 1,000,000,0

00.00 1,046,800,000.00 36,500,000.00

1,010,300,00

0.00

Corporate bonds of

SDIC Power in 2016 (primary offering)

100 2016/10/27 5 years 700,000,00

0.00

703,923,835.6

1 8,231,780.81

712,155,616.

42

Corporate bonds of

SDIC Power in 2016

(second offering)

100 2016/11/18 5 years 500,000,00

0.00 502,001,095.8

9 10,760,821.91

512,761,917.80

44. Other current liabilities




Short-term bonds payable 4,516,759,041.11 2,507,086,209.31

Unamortized tax 108,346.68

Total 4,516,867,387.79 2,507,086,209.31

Increase/decrease in short-term bonds payable:


197 / 329



Name of

bond

Par

value Date of issue

Term of

bond Amount issued Beginning balance

Issued in the

current period

Provision of

interest based

on par value

Amortization

of premium

and discount

Repaid in the


20 Yalong

River

SCP005

100 2020/8/4 180 days 1,000,000,000.00 1,004,696,825.74 1,004,696,825.74

20 Yalong

River

SCP006

100 2020/11/5 180 days 500,000,000.00 501,764,383.57 3,906,849.31 505,671,232.88

20 Yalong

River

SCP007

100 2020/12/22 180 days 1,000,000,000.00 1,000,625,000.00 11,703,767.12 1,012,328,767.12

21 Yalong

River

SCP001

100 2021/3/12 120 days 1,000,000,000.00 1,000,000,000.00 8,332,602.72 1,008,332,602.72

21 Yalong

River

SCP002

100 2021/4/16 180 days 1,000,000,000.00 1,000,000,000.00 5,372,054.83 1,005,372,054.83

21 Yalong

River

SCP003

100 2021/5/19 150 days 500,000,000.00 500,000,000.00 1,454,931.51 501,454,931.51

21 Yalong

River

SCP004

100 2021/6/17 180 days 1,500,000,000.00 1,500,000,000.00 1,386,575.34 1,501,386,575.34

21 Yalong

River

SCP005

100 2021/6/24 90 days 500,000,000.00 500,000,000.00 212,876.71 500,212,876.71


198 / 329

Total / / / 7,000,000,000.00 2,507,086,209.31 4,500,000,000.00 32,369,657.54 2,522,696,825.74 4,516,759,041.11

Other notes:



199 / 329

45. Long-term borrowings

(1). Classification of long-term borrowings




Pledge borrowings 10,078,828,795.12 9,163,064,615.96

Mortgage borrowings 1,210,355,090.20 1,333,921,824.22

Guaranteed borrowings 239,277,510.83 401,135,062.20

Credit borrowing 94,065,546,111.57 92,543,016,406.41

Total 105,594,007,507.72 103,441,137,908.79

① The collaterals used for the pledge borrowings at end of the period are the charging rights of

electricity and heat charges.

② Details of mortgage borrowings


Name of borrower Debit bank Borrowing balance Collaterals

SDIC Golmud

Photovoltaic Power Co.,

Ltd.

Qinghai Branch of

China Development

Bank

99,212,323.53 Power generating

assets

SDIC Hami Wind Power

(Barkol) Co., Ltd. SDIC Finance Co., Ltd. 11,263,350.17

Power generating

assets


(Barkol) Co., Ltd.

Beijing Branch of

China Construction

Bank


assets


(Barkol) Co., Ltd.

Hami Branch of China

Construction Bank 2,478,218.92

Power generating

assets

SDIC Qinghai Wind

Power Co., Ltd.

China Development

Bank 84,102,900.00

Power generating

assets

SDIC Jiuquan 1st Wind

Power Co., Ltd.

Guazhou County

Branch of Industrial

and Commercial Bank

of China


assets

SDIC Jiuquan 1st Wind

Power Co., Ltd.

Lanyuan Branch of

China Construction

Bank


assets


200 / 329

SDIC New Energy

(Honghe) Co., Ltd.

China Development

Bank 402,519,250.00

Power generating

assets

Toksun Trina Solar Co.,

Ltd.

Xinjiang Uygur

Autonomous Region

Branch of China

Development Bank


assets

Total 1,210,355,090.20

③ Guaranteed loans:


Name of borrower Debit bank Amount of guaranteed

borrowing Guarantor

SDIC Dunhuang


Ltd.

SDIC Finance Co., Ltd. 4,064,973.50

SDIC Power Holdings

Co., Ltd.

SDIC Dunhuang


Ltd.

Dunhuang Branch of

Industrial and

Commercial Bank of

China

17,249,398.81

SDIC Power Holdings

Co., Ltd.

SDIC Dunhuang


Ltd.

Gansu Branch of China

Development Bank 86,451,094.58

SDIC Power Holdings

Co., Ltd.

SDIC Golmud


Ltd.

Qinghai Branch of

China Development

Bank

22,618,405.48

SDIC Power Holdings

Co., Ltd.

SDIC Golmud


Ltd.


SDIC Power Holdings

Co., Ltd.

SDIC Golmud


Ltd.

Golmud Branch of

Industrial and

Commercial Bank of

China

14,267,456.26

SDIC Power Holdings

Co., Ltd.

SDIC Golmud


Ltd.

Qinghai Branch of

Bank of

Communications

9,286,161.62

SDIC Power Holdings

Co., Ltd.

SDIC Shizuishan


Ltd.

Huinong Branch of

Industrial and

Commercial Bank of

China

8,350,230.84

SDIC Power Holdings

Co., Ltd.

SDIC Shizuishan


Ningxia Branch of

China Development 275,337.35

SDIC Power Holdings

Co., Ltd.


201 / 329

Ltd. Bank

SDIC Shizuishan


Ltd.


SDIC Power Holdings

Co., Ltd.

SDIC Shizuishan


Ltd.


SDIC Power Holdings

Co., Ltd.

SDIC Shizuishan


Ltd.

Beijing Fuwai Branch

of Bank of

Communications

50,606,003.33

SDIC Power Holdings

Co., Ltd.

Yalong River Hydropower

Development Co., Ltd. Department fund 7,800,000.00

Sichuan Provincial

Investment Group Co.,

Ltd.

Total 239,277,510.83

Other notes: including the range of rates:


46. Bonds payable

(1). Bonds payable




Corporate bonds of SDIC Power in

2019 (primary offering) 1,203,168,986.33 1,230,935,342.48

Medium term notes of Yalong River

Hydropower Development Co., Ltd.

in 2019 (second offering)

1,029,174,794.56

Corporate bonds of Yalong River


in 2020 (second offering)

1,028,997,260.30 1,011,145,205.49

Green corporate bonds of Yalong

River Hydropower Development

Co., Ltd. in 2021 (primary offering)

1,007,780,821.92



in 2019 (primary offering)

1,007,213,972.52 1,027,025,479.47


202 / 329




1,006,836,666.68 1,021,812,222.28

Green medium term notes of Yalong



1,002,589,589.06



Co., Ltd. in 2021 (second offering)

705,235,616.44


2021 (primary offering) 604,622,465.75




304,260,000.00




1,031,068,493.00

Total 8,899,880,173.56 5,321,986,742.72


203 / 329

(2). Increase or decrease in bonds payable: (excluding the preferred share, perpetual debt and other financial instruments classified as financial liabilities)



Name of bond Par value Date of

insurance Bond term Amount issued

Beginning

balance

Issued in the

current period

Reclassified

amount

Provision of

interest based on

par value

Amortization

of premium

and discount

Repaid in the



2019 (primary

offering)

100 2019/6/11 10 years 1,200,000,000.00 1,230,935,342.48 27,313,643.85 55,080,000.00 1,203,168,986.33

Medium term

notes of Yalong

River Hydropower

Development Co.,

Ltd. in 2019

(second offering)

100 2019/8/28 3 years 1,000,000,000.00 1,029,174,794.56 1,029,174,794.56

Corporate bonds

of Yalong River Hydropower

Development Co.,

Ltd. in 2020 (second offering)

100 2020/9/10 5 years 1,000,000,000.00 1,011,145,205.49 17,852,054.81 1,028,997,260.30

Green corporate

bonds of Yalong

River Hydropower

Development Co.,

Ltd. in 2021 (primary offering)

100 2021/4/12 3 years 1,000,000,000.00 1,000,000,000.00 7,780,821.92 1,007,780,821.92


204 / 329

Corporate bonds


Development Co.,


100 2019/4/25 5 years 1,000,000,000.00 1,027,025,479.47 19,488,493.05 39,300,000.00 1,007,213,972.52

Corporate bonds

of Yalong River

Hydropower

Development Co.,


100 2020/4/8 5 years 1,000,000,000.00 1,021,812,222.28 14,324,444.40 29,300,000.00 1,006,836,666.68

Green medium

term notes of Yalong River

Hydropower

Development Co., Ltd. in 2020

(primary offering)

100 2020/5/28 3 years 1,000,000,000.00 1,002,589,589.06 1,002,589,589.06

Green medium

term notes of Yalong River

Hydropower

Development Co., Ltd. in 2021

(second offering)

100 2021/4/14 3 years 700,000,000.00 700,000,000.00 5,235,616.44 705,235,616.44


2021 (primary

offering)

100 2021/4/16 5 years 600,000,000.00 600,000,000.00 4,622,465.75 604,622,465.75

Green medium term notes of

Yalong River

Hydropower Development Co.,

Ltd. in 2021

(primary offering)

100 2021/2/9 3 years 300,000,000.00 300,000,000.00 4,260,000.00 304,260,000.00


205 / 329

Corporate bonds


Development Co.,


100 2018/4/24 5 years 1,000,000,000.00 1,031,068,493.00 13,931,507.00 1,045,000,000.00

Total / / / 9,800,000,000.00 5,321,986,742.72 2,600,000,000.00 2,031,764,383.62 114,809,047.22 1,168,680,000.00 8,899,880,173.56

Note 1: As approved in the document at ZJXK (2019) 580 of the China Securities Regulatory Commission, the Company was approved to issue the corporate bonds

at the par value not over RMB 1.8 billion Yuan openly to the public. On June 12, 2019, the Company completed the primary offering of the bonds at the par value of

RMB 100 Yuan each and at the offering price of RMB 100 Yuan each, totally worth RMB 1.2 billion Yuan; with a term of 10 years, those bonds are fixed-rate

bonds at the nominal interest rate of 4.59%, and the interest is paid once a year; On April 16, 2021, SDIC Power completed the second offering of the bonds at the

par value of RMB 100 Yuan each and at the offering price of RMB 100 Yuan each, totally worth RMB 600 million Yuan; with a term of 5 years, those bonds are

fixed-rate bonds at the nominal interest rate of 3.7%, and the interest is paid once a year.

Note 2: On August 29, 2019, Yalong River Hydropower Development Co. Ltd. completed the second offering of medium term notes for 2019 at the par value of

RMB 100 Yuan each and at the offering price of RMB 100 Yuan each, totally worth RMB 1 billion Yuan; with a term of 3 years, those notes are fixed-rate notes at

the nominal interest rate of 3.48%, and the interest is paid once a year.

Note 3: As approved in the document at ZJXK (2020) 91 of the China Securities Regulatory Commission, Yalong River Hydropower Development Co. Ltd. was

approved to issue the green corporate bonds at the par value not over RMB 3 billion Yuan openly to the public. On April 8, 2020, Yalong River Hydropower

completed the primary offering of the bonds at the par value of RMB 100 Yuan each and at the offering price of RMB 100 Yuan each, totally worth RMB 1 billion

Yuan; with a term of 3 years, those bonds are fixed-rate bonds at the nominal interest rate of 2.93%, and the interest is paid once a year. On September 10, 2020,

Yalong River Hydropower completed the second offering of the bonds at the par value of RMB 100 Yuan each and at the offering price of RMB 100 Yuan each,

totally worth RMB 1 billion Yuan; with a term of 3 years, those bonds are fixed-rate bonds at the nominal interest rate of 3.60%, and the interest is paid once a year;

on April 12, 2020, Yalong River Hydropower completed the third offering of the bonds at the par value of RMB 100 Yuan each and at the offering price of RMB

100 Yuan each, totally worth RMB 1 billion Yuan; with a term of 3 years, those bonds are fixed-rate bonds at the nominal interest rate of 3.55%, and the interest is

paid once a year

Note 4: As approved in the document at ZJXK (2017) 1817 of the China Securities Regulatory Commission, Yalong River Hydropower Development Co. Ltd. was

approved to issue the corporate bonds at the par value not over RMB 2 billion Yuan openly to the public. On April 24, 2018, Yalong River Hydropower completed


206 / 329

the primary offering of the bonds at the par value of RMB 100 Yuan each and at the offering price of RMB 100 Yuan each, totally worth RMB 1 billion Yuan; with

a term of 5 years, the bonds are offered together with the issuer’s option to adjust the nominal interest rate and the investor’s put-back option at end of 3rd year;

those bonds are fixed-rate bonds at the nominal interest rate of 4.50%, and the interest is paid once a year. On April 25, 2019, Yalong River Hydropower completed

the second offering of the bonds at the par value of RMB 100 Yuan each and at the offering price of RMB 100 Yuan each, totally worth RMB 1 billion Yuan; with a

term of 5 years, the bonds are offered together with the issuer’s option to adjust the nominal interest rate and the investor’s put-back option at end of 3rd year; those

bonds are fixed-rate bonds at the nominal interest rate of 3.93%, and the interest is paid once a year.

Note 5: On May 28, 2020, Yalong River Hydropower Development Co. Ltd. completed the primary offering of medium term notes for 2020 at the par value of

RMB 100 Yuan each and at the offering price of RMB 100 Yuan each, totally worth RMB 1 billion Yuan; with a term of 3 years, those notes are fixed-rate notes at

the nominal interest rate of 2.7%, and the interest is paid once a year; on February 9, 2021, Yalong River Hydropower Development Co. Ltd. completed the primary

offering of medium term notes for 2021 at the par value of RMB 100 Yuan each and at the offering price of RMB 100 Yuan each, totally worth RMB 300 million

Yuan; with a term of 3 years, those notes are fixed-rate notes at the nominal interest rate of 3.65%, and the interest is paid once a year; on April 4, 2021, Yalong

River Hydropower Development Co. Ltd. completed the second offering of medium term notes for 2021 at the par value of RMB 100 Yuan each and at the offering

price of RMB 100 Yuan each, totally worth RMB 300 million Yuan; with a term of 3 years, those notes are fixed-rate notes at the nominal interest rate of 3.5%, and

the interest is paid once a year.


207 / 329

(3). Conversion conditions and time of convertible corporate bonds


(4). Other financial instruments classified as financial liabilities

Basic information of preferred shares, perpetual bonds and other financial instruments issued openly at

end of the period


Statement of changes in preferred shares, perpetual bonds and other financial instruments issued openly

at end of the period


Basis for classifying other financial instruments as financial liabilities:


Other notes:


47. Lease liabilities




Lease payments 741,898,411.97 666,883,997.34

Less: unrecognized financing

expenses -109,600,485.12

-72,192,558.24

Total 632,297,926.85 594,691,439.10

48. Long-term payables

Presentation




Long-term payables 443,133,522.89 147,314,717.17

Special payables

Total 443,133,522.89 147,314,717.17

Long-term payables




208 / 329


Financing leases payable 443,133,522.89 147,314,717.17

Total 443,133,522.89 147,314,717.17

Special payables


49. Long-term payroll payable


(1) Form of long-term payroll payable




I. Post-employment benefits - net

liabilities in defined benefit plan 455,238,356.39 463,380,000.00

II. Dismission welfare

III. Other long-term welfare 1,260,836.86 1,363,525.69

Total 456,499,193.25 464,743,525.69

(2) Changes in defined benefit plan

Present value of obligations in defined benefit plan


Plan assets:


Net liabilities (net assets) in defined benefit plan


Contents and related risks of defined benefit plan and their impact on the future cash flow, time and

uncertainty of the Company:


Description of major actuarial assumptions and sensibility analysis results of defined benefit plan


Other notes:



209 / 329

50. Estimated liabilities



Item Beginning balance Ending balance Reason of formation

Contingent consideration 147,578,980.00 146,374,459.05 Note 1

Asset retirement

obligation 41,086,180.51 43,526,853.91

Note 2

Others 2,046,140.95 58,706,140.95

Total 190,711,301.46 248,607,453.91 /

Note 1: As reviewed and approved on the 29th meeting of the 9th Board of Directors of the Company

held on February 24, 2016, the Company agreed to acquire the 100% equities of Red Rock Power

Limited, a wholly-owned subsidiary of Repsol Nuevas Energias S.A. at a price of GBP 185.4 million.

Meanwhile, the Company decided whether the contingent consideration of GBP 16.6 million is paid

additionally according to the fact whether the Inch Cape Offshore Wind Power Project of the acquisition

target could obtain a price difference contract or similar preferential support.

Note 2: The retirement expenses are divided into the following parts: 1. the expected expenses for

closing the Afton Wind Farm in future, which were GBP 3,974,903.08 at beginning of the period, were

increased by GBP 646,558.57 in the current period and reached GBP 4,621,461.65 at end of the period;

2. the expected expenses for closing the ICOL Wind Farm in future, which were GBP 11,628,385.64 at

beginning of the period, and all estimated liabilities of ICOL were carried back after the statements on

October 31, 2020 were made.

51. Deferred incomes

Details of deferred incomes



Item Beginning

balance

Increase in the

current period

Decrease in the


Reason of

formation

Government

subsidies

171,792,971.93 86,060,695.43 7,912,683.63 249,940,983.73

Advance payment

of capital

construction

48,213,524.84 1,607,117.52 46,606,407.32 Note

Other items 1,802,720.47 253,184.67 1,549,535.80

Total 221,809,217.24 86,060,695.43 9,772,985.82 298,096,926.85

Note: The construction of Naomaohu 220kV wind power pooling station is led by SDIC Hami Wind

Power and jointly invested by 5 enterprises. The assets within the pooling station is owned by the

leading party, and other participating parties has its permanent asset use right after the one-off payment


210 / 329

of asset use costs; the joint construction expenses are amortized temporarily by the participating parties

according to the estimate of their connected installed capacity, which is subject to the investment amount

audited by a third party in the final settlement of the pooling station. The Company can recover the

apportioned capital construction payment of RMB 71.4275 million Yuan. Up to now, the Company has

recovered the apportioned investment of RMB 70.7131 million Yuan and the apportioned capital

construction payment that has been recovered is included the deferred incomes.


211 / 329

Projects involving government subsidies:



Project Beginning balance

Subsidy

increase in the

current period

Amount

included in the

non-operating

incomes of the

current period

Amount

included in the

other incomes of

the current

period

Other

change Ending balance

In connection with

assets / incomes

Discount interest fund for central

enterprise’s import of Tianjin Jinneng

in 2008

3,803,888.74 278,333.34 3,525,555.40 In connection with

assets

Land acquisition fund difference for

Tianjin Jinneng Beijiang Power Plant

Project


assets

Modification of low-low temperature

economizer of Tianjin Jinneng #2 unit 1,455,555.61 66,666.66 1,388,888.95

In connection with

assets

Technical reformation of smoke

condensation and dehumidification of

Tianjin Jinneng


assets

Special fund for “deep rock mass

mechanics and mining theory” of

Yalong River (2016YFC0600702)

308,040.25 308,040.25 In connection with

incomes

Special fund for “long-term safe and

stable operation of extra-high arch dam 99,552.37 99,552.37

In connection with

incomes


212 / 329

and near dam reservoir bank” of

Yalong River (2016YFC0401908)

Payment under National Natural

Science Foundation of China director

fund cooperation task statement by

Tsinghua University for Yalong River

1,377,064.42 1,377,064.42 In connection with

incomes

”"Engineering properties of

construction materials and dam body of

extra-high core-wall rockfill dam" of

Yalong River


incomes

"Extra-high core-wall rockfill dam

deformation coordination and

construction quality control" of Yalong

River

613,079.00 27,083.00 640,162.00 In connection with

incomes

"High dam hub drainage atomization

mechanism and telemetering under

complex condition" of Yalong River


incomes

"Operating mechanism and safety

diagnosis of deep internal-pressure

tunnel during operation" of Yalong

River


incomes

Yalong River sustainable hydropower

design and operation - research on

mode of effects of hydropower

development on downstream water

temperature trend (YHDCA-201795)


incomes

Yalong River complex rainstorm &

flood forecast and emergency 70,547.91 70,547.91

In connection with

incomes


213 / 329

regulation technology

(2016YFC0401903)

Safe and intelligent operation

technology for coupling power of

Yalong River hydropower generation

system (2016YFC0401905)


incomes

Other Yalong River projects 5,286,610.99 2,650,840.00 7,937,450.99 In connection with

incomes

Subsidy for #3 steam turbine flow path

reconstruction EPC project of Huaxia

Power


assets



Power


assets



Power


assets

Subsidy for technical reformation of

flue gas cleaning project of Huaxia

Power Phase I (subsidy from Xiamen

Government)


assets


flue gas cleaning project of Huaxia

Power Phase I (subsidy from Central

Government)


assets


flue gas denitrification project of 215,040.59 99,249.42 115,791.17

In connection with

assets


214 / 329

Huaxia Power Phase I (subsidy from

Xiamen Government)

Financial award for #2 steam turbine

flow path reconstruction and other

energy system optimization project of

Huaxia Power

1,103,746.58 110,374.62 993,371.96 In connection with

assets

Financial award for #2 steam turbine

flow path reconstruction project of

Huaxia Power


assets

Environmental subsidy for addition of

reserved layer catalyst in flue gas

denitrification system of Huaxia Power


assets

Financial award for energy saving

modification project of #1 steam

turbine flow path and thermal system

of Huaxia Power


assets

Subsidy for NOx emission control

reconstruction project of 4 units of

Huaxia Power


assets

Subsidy for heating units

reconstruction of Huaxia Power Phase

I


assets

Subsidy for 220kV booster station GIS

modification project of Huaxia Power

Phase I


assets

Subsidy for flue gas pollutant ultra-

clean emission and upgrade 2,523,773.50 114,717.00 2,409,056.50

In connection with

assets


215 / 329

modification of #3 unit of Huaxia

Power

Subsidy for flue gas pollutant ultra-

clean emission and upgrade


Power


assets

Award for flue gas pollutant ultra-clean

emission and upgrade modification of

#3 unit of Huaxia Power


assets

Award for flue gas pollutant ultra-clean

emission and upgrade modification of

#4 unit of Huaxia Power


assets

Environmental special subsidy for flue

gas pollutant ultra-clean emission and

upgrade modification of #1 unit of

Huaxia Power


assets




Huaxia Power


assets




Huaxia Power


assets




Huaxia Power


assets


216 / 329

Environmental investment subsidy for

flue gas pollutant ultra-clean emission

and upgrade modification of #1 unit of

Huaxia Power


assets

Environmental investment subsidy for

flue gas pollutant ultra-clean emission

and upgrade modification of #2 unit of

Huaxia Power


assets

Investment award for flue gas pollutant

ultra-clean emission and upgrade


Power


assets

Investment award for flue gas pollutant

ultra-clean emission and upgrade


Power


assets

Investment award for #2 steam turbine

flow path reconstruction EPC project

of Huaxia Power


assets



of Huaxia Power


assets



of Huaxia Power


assets


217 / 329

Award for technical reformation of

coal-sludge coupling power generation

of Huaxia Power


assets

Award for modification of reductant

preparation system of denitrification

system of Huaxia Power


assets

Special funds for Guizhou provincial

new urbanization development from

Huanneng


assets

Subsidy for denitrification and

emission reduction of SDIC Qinzhou 1,912,098.39 119,506.12 1,792,592.27

In connection with

assets

Financial subsidy for energy saving

modification of the Finance Burea,

Qinzhou Port Economic and

Technological Development Zone


assets

Subsidy for unemployment and

employment maintaining of Qinzhou 6,248,977.23 6,248,977.23

In connection with

assets

Government subsidy for intelligent

power plant construction of Qinzhou

Industrial and High-tech Technology

Industry Bureau


assets

Subsidy for development fund of

enterprises in Hengfeng 82,081,972.43 2,914,152.84 79,167,819.59

In connection with

incomes

Total 171,792,971.93 86,060,695.43 7,912,683.63 249,940,983.73


218 / 329

Other notes:


52. Other non-current liabilities


53. Share capital



Beginning balance

Increase or decrease (+ or -) in the current period

Ending balance New shares

issued

Bonus shares

issued

Reserved fund

Shares

converted

Others Subtotal

Total shares 6,965,873,347.00 6,965,873,347.00

54. Other equity instruments

(1) Basic information of preferred shares, perpetual bonds and other financial instruments issued openly at end of the period


Number Renewable corporate bonds in 2018

(third offering)

Renewable corporate bonds in 2020

(primary offering)

Renewable corporate bonds in 2020

(second offering)

Approval No. ZJXK (2017) 531 ZJXK (2019) 1297


219 / 329

Date of issue July 17-18, 2018 June 3-4, 2020 November 27-30, 2020

Actual total issued amount RMB 2 billion Yuan RMB 500 million Yuan RMB 1.2 billion Yuan

Term 3 years 3 years 2 years

Renewal option

At end of every period, the issuer is entitled to extend the term of bonds for 1 period, or cash the bonds of this period in

full amount at end of this period. The issuer shall publish a bulletin about the exercise of renewal option on the relevant

media at least 30 working days before the interest payment date in the year when the renewal option is exercised.

Right of redemption (1) Redeemed by the issuer due to change in tax policies; (2) Redeemed by the issuer due to change in accounting

policies.

Interest rate

In the first three interest-accrual years,

the nominal interest rate is 4.98%. If

the issuer does not exercise the right

of redemption, the nominal interest

rate shall be reset once every three

years starting from the fourth interest-

accrual year, and the new interest rate

shall be determined as benchmark

interest rate in the current period +

initial interest rate spread upon

issuance + 300 base points.

In the first three interest-accrual years,




rate shall be reset once every three

years starting from the fourth interest-






In the first two interest-accrual years,




rate shall be reset once every two

years starting from the third interest-







220 / 329

(2) Statement of changes in preferred shares, perpetual bonds and other financial instruments issued openly at end of the period



Notes to increase or decrease in and reason of other equity instruments in the current period, and basis for relevant accounting treatment:

Financial instruments

issued

Beginning Increase in the current

period Decrease in the current period Ending

Quantity Book value Quantity Book value Quantity Book value Quantity Book value

Renewable corporate

bonds in 2018 (primary

offering)

5,000,000 499,905,660.38 5,000,000.00 499,905,660.38

Renewable corporate

bonds in 2018 (second

offering)

15,000,000 1,499,716,981.13 15,000,000.00 1,499,716,981.13

Renewable corporate

bonds in 2018 (third

offering)

20,000,000 1,999,396,226.42 20,000,000 1,999,396,226.42

Renewable corporate

bonds in 2020 (primary

offering)

5,000,000 499,964,622.64 5,000,000 499,964,622.64

Renewable corporate

bonds in 2020 (second

offering)

12,000,000 1,199,910,000.00 5,094.34 12,000,000 1,199,915,094.34

Total 57,000,000 5,698,893,490.57 5,094.34 20,000,000 1,999,622,641.51 37,000,000 3,699,275,943.40


221 / 329


After the relevant transaction expenses were deducted, the remaining amount of the payment received by the Company for the issued renewal corporate bonds was

included in the other equity instruments. Pursuant to the Accounting Standards for Business Enterprises No. 37 – Presentation of Financial Instruments (CK (2014)

23) and the Notice on Issuing the Differences between Financial Liabilities and Equity Instrument and the Relevant Accounting Treatment Provisions (CK (2014)

13), the settings of bond provisions are expected to meet the requirements of perpetual period and interest deferring, and can be included in the equity.

Other notes:



222 / 329

55. Capital reserves



Item Beginning balance Increase in the current period Decrease in the current period Ending balance

Capital premium (share

capital premium) 7,660,471,018.45 2,159.36 7,660,468,859.09

Other capital reserve 101,612,754.32 36,220,557.98 2,182,986.04 135,650,326.26

Total 7,762,083,772.77 36,220,557.98 2,185,145.40 7,796,119,185.35

Other notes: including notes to increase or decrease in the current period and reason of changes:

Note 1: The global depository receipts (“GDR” for short) issued by the Company in 2020 were listed in London Stock Exchange, and the share capital premium

affected and offset by relevant expenses in the current period is RMB 2,159.36 Yuan.

Note 2: The changes in other equities of affiliated company of the Company have resulted in the increase of other capital reserves by RMB 36,220,557.98 Yuan.

Note 3: Red Rock Power Limited, the subsidiary of the company, acquired Benbrack Wind Farm Limited, so that other capital reserves is decreased by RMB

1,805,627.55 Yuan.

Note 4: The company has redeemed the renewable corporate bonds (primary offering & second offering) publicly issued in 2018 and relevant formalities has

resulted in the decrease of other capital reserves by RMB 377,358.49 Yuan.

56. Treasury shares


57. Other comprehensive incomes



223 / 329


Item Beginning

balance

Amount incurred in the current period

Ending balance Amount before

income tax

incurred in the

current period

Less: Amount

included in

the other

comprehensiv

e incomes in

previous

period but

transferred

into the

profits or

losses in the

current period

Less: Amount

included in

the other

comprehensiv

e incomes in

previous

period but

transferred

into the

retained

incomes in

the current

period

Less: Income

tax expense

After-tax amount

attributable to

the parent

company

After-tax

amount

attributable to

minority

shareholders

I. Other

comprehensive

incomes that

cannot be

reclassified as

profit and loss

-33,690,486.46 -23,858.22 -12,406.27 -11,451.95 -33,702,892.73

Including:

Changes resulting

from re-

measurement of

defined benefit

plan

Other

comprehensive

incomes that

1,238,679.34 -23,858.22 -12,406.27 -11,451.95 1,226,273.07


224 / 329

cannot be

converted into

profit and loss

under equity

method

Changes in fair

value of

investments in

other equity

instruments

-34,929,165.80 -34,929,165.80

Changes in fair

value of corporate

credit risks

II. Other

comprehensive

incomes taht will

be reclassified as

profit and loss

-75,442,325.19 123,513,501.41 127,823,327.24 -4,309,825.83 52,381,002.05

Including: Other

comprehensive

incomes that can

be converted into

profit and loss

under equity

method

7,806,091.08 113,869,881.80 108,641,828.50 5,228,053.30 116,447,919.58

Changes in fair

value of other

credit right

investments


225 / 329

Amount of

financial assets

reclassified and

included in other

comprehensive

incomes

Credit

impairment

reserves for other

credit right

investments

Cash flow

hedging reserves -50,294,967.57 25,394,000.45 25,394,000.45 -24,900,967.12

Balance from

conversion of

foreign-currency

financial

statements

-31,990,187.64 -15,006,905.62 -5,763,070.94 -9,243,834.68 -37,753,258.58

Others -963,261.06 -743,475.22 -449,430.77 -294,044.45 -1,412,691.83

Total other

comprehensive

incomes

-109,132,811.65 123,489,643.19 127,810,920.97 -4,321,277.78 18,678,109.32


226 / 329

58. Special reserves


59. Surplus reserves



Item Beginning balance Increase in the

current period

Decrease in the

current period

Ending balance

Legal surplus

reserve 2,475,837,912.98 2,475,837,912.98

Free surplus

reserve 2,384,187.23 2,384,187.23

Total 2,478,222,100.21 2,478,222,100.21

60. Undistributed profit



Item Current period Previous period

Undistributed profit at end of previous

period before adjustment 24,430,713,338.38 21,178,636,909.62

Total undistributed profits adjusted at

beginning of the period ("+" for

increase; "-" for decrease)

Undistributed profits at beginning of the

period after adjustment 24,430,713,338.38 21,178,636,909.62

Plus: Net profit attributable to the

shareholders of parent company 2,336,834,245.77 5,515,627,276.16

Less: Provision of legal surplus reserve

Provision of free surplus reserve

Provision of general risk reserve

Ordinary share dividends payable 1,950,444,537.16 1,664,611,528.16

Ordinary share dividends

converted to share capital

Perpetual bond interests payable 114,991,835.60 219,648,739.72


227 / 329

Undistributed profit at end of the

period 24,702,111,211.39 24,430,713,338.38

Details of undistributed profits adjusted at beginning of the period:

1. Due to the retroactive adjustment performed according to the Accounting Standards for Business

Enterprises and relevant new regulations, the undistributed profit at beginning of the period of 0 Yuan is

affected.

2. Due to the changes in accounting policies, the undistributed profit at beginning of the period of 0

Yuan is affected.

3. Due to the correction of major accounting errors, the undistributed profit at beginning of the period of

0 Yuan is affected.

4. Due to the change in consolidation scope caused by the same control, the undistributed profit at

beginning of the period of 0 Yuan is affected.

5. Total undistributed profit at beginning of the period of 0 Yuan is affected by other adjustments.

61. Operating income and cost

(1). Details of operating income and cost



Item

Amount incurred in the current period Amount incurred in the previous period

Income Cost Income Cost

Main

businesses 19,131,904,064.60 11,637,289,197.43 17,412,792,046.43 9,185,039,523.60

Other

businesses 156,969,766.57 26,141,828.99 57,544,069.70 14,724,409.11

Total 19,288,873,831.17 11,663,431,026.42 17,470,336,116.13 9,199,763,932.71


228 / 329

(2). Incomes arising from contracts



Classification of contracts

Coal-fired power Hydropower

Wind, photovoltaic and

garbage power

generation

Others Total

Type of goods

Electric power 8,631,936,918.19 8,318,028,995.56 1,928,608,876.70 18,878,574,790.45

Others 323,048,097.51 16,959,840.76 53,824,900.64 16,466,201.81 410,299,040.72

Business area

Northwest 395,273,127.30 883,096,764.21 1,278,369,891.51

Southwest 3,200,331,260.13 7,939,715,709.02 744,760,120.14 7,577,133.32 11,892,384,222.61

North China 2,778,124,569.73 58,554,719.47 1,886,792.40 2,838,566,081.60

South China 13,235,068.90 1,750,776.23 14,985,845.13

East China 2,976,529,185.84 155,916,301.72 5,251,499.86 3,137,696,987.42

Overseas 126,870,802.90 126,870,802.90

Type of market or

customer


229 / 329

State-owned

enterprises

8,790,743,235.72 8,324,526,146.37 1,847,715,526.79 9,637,244.05 18,972,622,152.93

Private enterprises 161,048,505.64 8,732,316.10 2,783,946.01 172,564,767.75

Foreign-funded

enterprises

3,193,274.34 111,382,370.03 114,575,644.37

Others 1,730,373.85 20,551,934.51 6,828,957.76 29,111,266.12

Type of contract

Electric power

contract

8,632,283,238.50 8,318,028,995.56 1,928,608,876.70 18,878,921,110.76

Others 322,701,777.20 16,959,840.76 53,824,900.64 16,466,201.81 409,952,720.41

Transfer time of goods

Recognize at a point

of time

8,954,985,015.70 8,334,988,836.32 1,969,363,223.27 10,718,949.56 19,270,056,024.85

Recognize in a period

of time

13,070,554.07 5,747,252.25 18,817,806.32

Distribution channel

State Grid 5,530,030,919.16 7,742,807,038.75 1,353,481,402.21 14,626,319,360.12

Southern Power Grid 3,100,416,362.63 579,869,997.08 478,488,357.74 4,158,774,717.45

Others 324,537,733.91 12,311,800.49 150,464,017.39 16,466,201.81 503,779,753.60

Total 8,954,985,015.70 8,334,988,836.32 1,982,433,777.34 16,466,201.81 19,288,873,831.17


230 / 329

(3). Notes to performance obligations


① Electric power supply

When every power plant connects its electric power to the local power grid company or other customers,

the electric purchaser obtains the right to control the electric power, and meanwhile the Company

completes the performance obligations and recognizes its income.

② Heat supply

When the heat is sent to the purchaser, the heat purchaser obtains the right to control the heat, and

meanwhile the Company completes the performance obligations and recognizes its income.

③ Others

Owing to the execution of contract, the Company supplies its customer with other goods or service,

including the supply of desalinated seawater and coal ash and the rendering of lease service, etc.

If the supply of goods is involved, the performance obligations are fulfilled when the customer obtains

the right to control the goods; if the rendering of service is involved, the performance obligations are

confirmed as per the contract, and the incomes are recognized along with the fulfillment of performance

obligations.

(4). Notes of apportionment to residual performance obligations


The amount of income corresponding to the performance obligations which have been contracted, but

not fulfilled or not fulfilled completely at end of the report period was

RMB 17,302,658.42 Yuan, including

RMB 17,302,658.42 Yuan to be recognized as income in 2021

0 Yuan to be recognized as income in 2022

0 Yuan to be recognized as income in 2023

62. Taxes and surcharges



Item Amount incurred in the current

period

Amount incurred in the previous

period

Water resource tax 144,338,012.50 165,343,874.68


construction tax

102,818,736.12 94,779,886.72

Education fee surcharge 75,085,323.79 69,307,804.62

Housing property tax 41,981,736.63 39,221,257.27

Land use right 19,528,999.18 19,176,585.04


231 / 329

Environment protection tax 10,727,120.14 5,251,221.32

Stamp tax 9,247,387.87 8,097,467.94

Vehicle&vessel use tax 2,580,266.28 26,875.38

Others 6,621,130.31 10,433,734.74

Total 412,928,712.82 411,638,707.71

63. Sales expenses



Item Amount incurred in the

current period

Amount incurred in the

previous period

Employee's compensation 9,637,158.13 8,492,676.14

Traffic expense 337,656.05 564,490.62

Lease expense 218,466.48 235,609.35

Travel expense 246,431.14 161,906.89

Business entertainment expense 117,642.44 107,637.60

Other expenses 1,472,082.65 1,280,739.35

Total 12,029,436.89 10,843,059.95

64. Administration expenses




current period


previous period

Employee's compensation 358,955,250.48 303,245,142.90

Amortization of intangible assets 26,062,567.62 28,288,329.89

Property management expense 21,818,408.33 24,024,798.15

Property management expense 12,960,930.55 12,333,321.18

Payments to agencies 11,112,784.83 8,624,888.04

Consultancy expense 10,291,975.58 31,559,248.60


232 / 329

Lease expense 9,837,018.56 10,178,438.36

Travel expense 8,974,783.77 4,638,593.67

Office expense 6,358,666.51 4,597,514.27

Water and electricity charges 3,000,581.97 3,166,209.00

Traffic expense 1,868,913.38 1,430,329.73

Business entertainment expense 1,587,728.54 750,925.98

Labour expense 1,479,106.42 2,576,530.81

Meeting expense 1,436,107.94 350,836.65

Amortization of long-term unamortized

expense

659,832.19 783,523.38

Organization expense 10,950.26

Other expenses 63,273,827.58 74,306,396.89

Total 539,678,484.25 510,865,977.76

65. R&D expenses




current period


previous period

Independent R&D 649,751.52 84,984.53

Consigned R&D 4,519,135.41 381,512.26

Total 5,168,886.93 466,496.79

66. Financial expenses




current period


previous period

Interest expenses 1,967,562,711.77 2,189,574,514.75

Interest income (presented with negative

number)

-66,706,524.32 -46,968,096.44


233 / 329

Exchange gain or loss 7,861,864.76 5,140,048.96

Others 3,232,807.00 12,999,703.85

Total 1,911,950,859.21 2,160,746,171.12

67. Other incomes




current period


previous period

Government subsidies 53,803,253.45 31,755,465.31

Commission charge for withholding of

individual income taxes

2,526,865.31 2,333,035.00

Total 56,330,118.76 34,088,500.31

Government subsidies included in other incomes:


Project Amount in the

current period

Amount in the

previous period

In connection

with assets /

incomes

Subsidy for employment maintaining of the

headquarters of electric power company 111,039.81

In connection

with incomes

Tax-exempt Income of the headquarters of electric

power company 613.59

In connection

with incomes

Amortization of deferred income of Jinneng 1,274,545.98 In connection

with assets

Immediate collection and refund of VAT for

Jinneng 1,682,931.56 1,051,247.23

In connection

with incomes

Subsidy for employment maintaining in Jinneng 478,944.73 In connection

with incomes

Discount interest fund for central enterprise’s

import of Tianjin Jinneng in 2008 278,333.34

In connection

with assets

Land acquisition fund difference for Tianjin

Jinneng Power Plant Project 929,545.98

In connection

with assets

Modification of low-low temperature economizer

of Tianjin Jinneng #2 unit 66,666.66

In connection

with assets


234 / 329

Technical reformation of smoke condensation and

dehumidification of Tianjin Jinneng 533,333.34

In connection

with assets

Special fund subsidy for Tianjin municipal energy-

saving project from Jinneng Development and

Reform Commission in 2020

500,000.00 In connection

with incomes

VAT refund of New Energy 1,498,469.24 2,135,291.62 In connection

with incomes

Subsidy for employment maintaining of New

Energy 28,671.36

In connection

with incomes

Immediately collected and refunded VAT of New

Energy 12,215,689.72

In connection

with incomes

VAT refund of Yalong River 10,000,000.00 2,000,000.00 In connection

with incomes

Subsidy for employment maintaining in Yalong

River 4,000.00 1,984,262.34

In connection

with incomes

VAT exemption or reduction for retired soldiers in

Yalong River 1,449,741.37 1,366,612.73

In connection

with incomes

Additional deduction of input tax for Yalong River 262,571.31 202,127.14 In connection

with incomes

Exemption or reduction for focus groups of Yalong

River 123,900.00 39,000.00

In connection

with incomes

Financial support fund for Yalong River from

Sichuan province 191,000.00

In connection

with incomes

Tax exemption or reduction for registered poverty-

stricken people in Yalong River 85,800.00

In connection

with incomes

VAT exemption or reduction for Yalong River 253.72 In connection

with incomes

Subsidy for technical reformation of flue gas of

Huaxia Power Phase I 672,954.12 672,954.12

In connection

with assets

Award for #2 steam turbine flow path

reconstruction of Huaxia Power 113,563.26 113,563.26

In connection

with assets

Amortization of subsidy for addition of reserved

layer catalyst in flue gas denitrification system of

Huaxia Power

310,331.16 310,331.16 In connection

with assets

Amortization of financial award for energy saving

modification project of #1 steam turbine flow path

and thermal system of Huaxia Power

26,948.82 26,948.82 In connection

with assets

Amortization of subsidy for NOx emission control 78,438.72 78,438.72 In connection


235 / 329

reconstruction project of 4 units of Huaxia Power with assets

Amortization of subsidy for heating units

reconstruction of Huaxia Power Phase I 147,000.00 147,000.00

In connection

with assets

Amortization of subsidy for steam turbine flow path

reconstruction EPC project of Huaxia Power 333,333.36

In connection

with assets

Amortization of subsidy for 220kV booster station

GIS modification project of Huaxia Power Phase I 41,666.64 41,666.64

In connection

with assets

Subsidy for flue gas pollutant ultra-clean emission

and upgrade modification of units #1, #2, #3 and #4

of Huaxia Power

660,477.84 660,477.84 In connection

with assets

Amortization of environmental investment subsidy

for flue gas pollutant ultra-clean emission and

upgrade modification of #1 unit of Huaxia Power

172,064.52 172,064.52 In connection

with assets

Amortization of environmental investment subsidy

for flue gas pollutant ultra-clean emission and

upgrade modification of #2 unit of Huaxia Power

176,622.54 176,622.54 In connection

with assets

Amortization of investment award for flue gas

pollutant ultra-clean emission and upgrade

modification of #1 unit of Huaxia Power

85,935.48 85,935.48 In connection

with assets

Amortization of investment award for flue gas

pollutant ultra-clean emission and upgrade


88,211.94 88,211.94 In connection

with assets

Amortization of investment award for #2 steam

turbine flow path reconstruction EPC project of

Huaxia Power

22,251.66 22,251.66 In connection

with assets



Huaxia Power

23,172.42 23,172.42 In connection

with assets



Huaxia Power

23,013.72 23,013.72 In connection

with assets

Investment award for industrial fixed assets granted

to Huaxia Power by the Bureau of Economy and

Information Technology of Haicang District,

Xiamen City


with assets

Subsidy for environmental liability insurance

premiums granted to Huaxia Power by the Local

Financial Supervision and Administration of

Xiamen City in 2019


with assets



In connection

with assets


236 / 329



In connection

with assets



In connection

with assets

Award for technical reformation of coal-sludge

coupling power generation of Huaxia Power 12,259.14

In connection

with assets

Award for modification of reductant preparation

system of denitrification system of Huaxia Power 24,566.70

In connection

with assets

Investment Award for district-level industrial fixed

assets of Huaxia Power granted by the Bureau of

Industrial and Information Technology of Haicang

District, Xiamen City in 2020


with assets

Subsidy for employment maintaining of Xiaosanxia 580,795.83 In connection

with incomes

Balance of award received by Xiaosanxia over the

years from Gaolan County 207,000.00

In connection

with incomes

Management expense of housing fund of

Xiaosanxia 752,075.47

In connection

with incomes

Immediate collection and refund of gypsum of

Meizhouwan 397,149.81 382,729.05

In connection

with incomes

Subsidy for epidemic prevention&control of

Meizhouwan in 2020 306,661.80

In connection

with incomes

Award for "dedicated, special and new" medium-

small enterprises of Meizhouwan 100,000.00

In connection

with incomes

Award for continuous production and stable

employment during the Spring Festival and Spring

Festival celebration in Putian of Meizhouwan


with incomes

Subsidy for energy consumption online monitoring

system of key energy consumption units of

Meizhouwan


with incomes

Additional deduction of input tax of KingRock 17,881.75 16,663.57 In connection

with incomes

Additional deduction of input VAT for Dachaoshan 9,914.78 12,811.77 In connection

with incomes

VAT refund of Panjiang 13,155,855.01 14,690,550.41 In connection

with incomes

Subsidy for cleaning production of Panjiang 430,000.00 In connection

with incomes


237 / 329

Subsidy for unemployment and employment

maintaining of Panjiang 419,672.76

In connection

with incomes

Award for coal storage of Panajiang from the

Government 249,021.26

In connection

with incomes

Award for production recovery of Panjiang 20,000.00 In connection

with incomes

Refund of extras of Qinzhou Cargo Port 1,027,461.71 335,568.13 In connection

with incomes

Amortized amount of deferred income of Qinzhou 177,839.43 148,480.56 In connection

with assets

Special fund for small talent highland granted to

Qinzhou by Qinzhou Human Resources Bureau 50,000.00

In connection

with incomes

Incentive post-subsidy for Qinzhou high-tech

enterprise 100,000.00

In connection

with incomes

Subsidy for training of Qinzhou 500.00 In connection

with incomes

Special development fund for overseas investment

cooperation project granted to Huanneng by the

Bureau of Commerce of Xiamen City in 2019


with incomes

Subsidy for employment maintaining of Huanneng

in 2019-2020 74,304.66

In connection

with incomes

Subsidy for employment maintaining of Huanneng

in 2019-2020 3,176.37

In connection

with incomes

Subsidy for development fund of enterprises in

Hengfeng 2,914,152.84

In connection

with incomes

Immediately collected and refunded VAT of

Hainan 1,952,860.78

In connection

with incomes

Total 53,803,253.45 31,755,465.31

68. Investment incomes



Item Amount incurred in

the current period


previous period

Income from long-term equity investment

calculated by the equity method 169,826,928.68 398,342,246.37


238 / 329

Income from disposal of long-term equity

investments 543,093,104.18

Investment income from trading financial assets in

the holding period 45,283,019.04 24,053,553.05

Dividend income from other equity instrument

investments in the holding period

Interest income from credit right investments in

the holding period

Interest income from other credit right investments

in the holding period

Investment income from disposal of trading

financial assets

-46,220,000.00

Income from disposal of other equity instrument

investments

Income from disposal of credit right investments

Income from disposal of other credit right

investments

Income from debt reorganization

Others 5,724,194.17

Total 168,889,947.72 971,213,097.77

69. Net exposure hedging income


70. Income from change in fair value



Source of income from changes in

fair values


current period


previous period

Trading financial assets 32,521,845.45 -20,290,581.25

Including: Income from change in

fair values of derivative financial

instruments



239 / 329

Investment properties measured at

fair value

Total 32,521,845.45 -20,290,581.25

71. Credit impairment loss




current period


previous period

Bad debt loss of notes receivable 20,285.93 3,699.69

Bad debt loss of accounts receivable -67,768,470.89 -130,729,882.19

Bad debt loss of other receivables -1,713,441.33 -544,707.86

Bad debt loss of long-term receivables 7,951.41

Total -69,461,626.29 -131,262,938.95

72. Asset impairment loss




current period


period

I. Bad debt loss

II. Depreciation loss of inventories

and impairment loss of contract

performance costs

474,481.07 440,077.83

III. Impairment loss of long-term

equity investments

IV. Impairment loss of investment

properties

V. Impairment loss of fixed assets

VI. Impairment loss of engineering

materials

VII. Impairment loss of Projects

under construction


240 / 329

VIII. Impairment loss of productive

biological assets

IX. Impairment loss of oil and gas

assets

X. Impairment loss of intangible

assets

XI. Impairment loss of business

reputation

XII. Others

Total 474,481.07 440,077.83

73. Income from asset disposal




period


previous period

Income from disposal of fixed

assets

1,087,901.47 632,216.78

Total 1,087,901.47 632,216.78

Other notes:


74. Non-operating incomes



Item

Amount incurred in

the current period Amount incurred

in the previous

period

Amount included

in the current non-

recurring profits or

losses

Total income from disposal of non-

current assets 337,814.48 55,010.27 337,814.48

Income from acquisition of

subsidiaries 89,096,281.49 55,078,614.70 89,096,281.49

Government subsidies unrelated to

daily activities of enterprise 2,783,920.84 1,113,846.76 2,787,920.84


241 / 329

Others 14,544,300.08 37,049,310.06 14,544,300.08

Total 106,762,316.89 93,296,781.79 106,766,316.89

Government subsidies included in the current profits or losses



Project

Amount incurred

in the current

period

Amount incurred

in the previous

period

In connection with

assets / incomes

Working as training of Yalong River 2,763,000.00 In connection with

incomes

Refund of Provident Fund of Newsky

Energy (Thailand) during COVID-19 14,206.77 37,522.95

In connection with

incomes

Compensation for social security

insurance of Huanneng by the

Administration Commission of Xiamen

Huoju High-tech Industrial Development

Zone


incomes

Wealth award for Huanneng by the

Administration Commission of Xiamen

Huoju High-tech Industrial Development

Zone

1,000.00 500.00 In connection with

incomes

Subsidy for intelligent manufacturing of

Jinneng 500,000.00

In connection with

incomes

Award for stable growth, sales increase

and production promotion of Dachaoshan 400,000.00

In connection with

incomes

Award granted to Yalong River by

Mengzhuiwan Sub-district, Chenghua

District People’s Government

111,231.00 In connection with

incomes

Refund of social insurance premiums of

Newsky (China) during COVID-19 36,198.46

In connection with

incomes

Award for production and work

resumption of Guizhou Newsky during

COVID-19


incomes

Refund of Provident Fund of C&G

Environmental Protection (Thailand)CO

during COVID-19


incomes

Subsidy for provincial patent of Yalong

River granted by Chenghua District

Market Supervision and Administration


incomes


242 / 329

Total 2,783,920.84 1,113,846.76

Other notes:


75. Non-operating expenses



Item

Amount incurred in

the current period Amount incurred in

the previous period

Amount included

in the current non-

recurring profits or

losses

Total loss from disposal of

non-current assets 2,790,805.24 224,878.10 2,790,805.24

External donations 897,372.10 15,404,589.39 897,372.10

Others 1,025,687.20 1,340,499.34 1,025,687.20

Total 4,713,864.54 16,969,966.83 4,713,864.54

76. Income tax expenses

(1) List of income tax expenses




period


period

Income tax expenses in the current

period 891,522,090.37 1,102,080,301.93

Deferred income tax expenses -43,257,576.61 -42,939,627.67

Total 848,264,513.76 1,059,140,674.26

(2) Adjustment process of accounting profits and income tax expenses



Item Amount incurred in the current period


243 / 329

Total profit 5,035,577,545.18

Income tax expenses calculated at the legal/

applicable tax rate 1,258,894,386.29

Impacts resulting from different tax rates used by

subsidiaries -549,489,036.72

Impacts resulting from adjustment of income tax

of previous periods 142,314,073.30

Impacts resulting from non-taxable incomes -50,997,157.52

Impacts resulting from non-deductible costs,

expenses and losses 1,319,685.86

Impacts resulting from the use of deductible

losses of unrecognized deferred tax assets of the

previous period

-5,059,842.55

Impacts resulting from deductible temporary

differences or deductible losses of unrecognized

deferred income tax assets of the current period

51,282,405.10

Others

Income tax expenses 848,264,513.76

Other notes:


77. Other comprehensive incomes

□ Applicable □ Inapplicable

See "Note VII. 57 Other comprehensive incomes" for details.

78. Items in cash flow statement

(1). Other cash received relating to operating activities




period


previous period


Intercourse funds 177,355,070.96 119,855,955.00



244 / 329

Cash liquidation for Yunnan Coal

Chemical Industry Group Co., Ltd.

33,842,537.92

Agency funds 3,142,992.46 843,817.16

Rental incomes 7,802,190.36 10,269,172.79

Government subsidies 6,681,240.00 5,044,586.00

Insurance indemnities 15,792,906.57 1,381,396.00

Imprest funds 281,542.00 1,103,138.46

Carry-back of assets with restricted

fund reserved for debt payment 12,825,000.00

13,680,000.00

Special funds received 13,464,621.20 481,569.00

Others 77,654,069.53 24,469,493.41

Total 492,276,024.08 387,553,956.91

(2). Other cash paid relating to operating activities




period


previous period

Period expenses 126,855,712.36 171,114,638.37

Intercourse funds 43,454,358.78 21,063,664.50


Preliminary expenses of project 5,620,791.98 797,182.42

Imprest funds 2,264,722.68 2,021,913.34

Pollutant drainage fee and water

resource treatment fee

4,000.00

Fixed-term deposit transferred in 70,800,000.00

Others 61,098,329.91 24,032,649.92

Total 389,791,325.87 319,792,061.15

(3). Other cash received relating to investment activities




245 / 329


period


previous period

Shareholder loan 26,647,882.87

Total 26,647,882.87

(4). Other cash paid relating to investment activities




period


previous period

Others 66,700.00 14,950.00

Total 66,700.00 14,950.00

(5). Other cash received relating to financing activities




period


previous period

Financial loan discount 12,951,708.85 12,425,188.62

Total 12,951,708.85 12,425,188.62

(6). Other cash paid relating to financing activities




period


previous period

Financing commission charges 3,670,229.00 3,472,297.29

Others 19,132,432.23 34,129.00

Total 22,802,661.23 3,506,426.29

79. Supplementary data of cash flow statement

(1) Supplementary data of cash flow statement



246 / 329


Supplementary data Amount in the current period Amount in the previous

period

1. Conversion of net profit to cash

flow from operating activities:

Net profit 4,187,313,031.42 5,048,018,283.28

Plus: Asset impairment reserve -474,481.07 -440,077.83

Credit impairment loss 69,461,626.29 131,262,938.95

Depreciation of fixed assets,

impairment of oil and gas assets,

depreciation of productive biological

assets

3,529,516,646.79 3,335,811,846.01

Amortization of right-of-use assets 52,413,976.34

Amortization of intangible assets 171,443,765.59 183,915,136.13

Amortization of long-term

unamortized expense 20,756,666.14 16,462,599.97

Loss from disposal of fixed assets,

intangible assets and other long-term

assets ("-" for income)

-1,087,901.47 -632,216.78

Loss from scrapping of fixed assets

("-" for income) 2,452,990.76 169,867.83

Loss from change in fair value ("-"

for income) -32,521,845.45 20,290,581.25

Financial expenses ("-" for income) 1,967,562,711.77 2,194,714,563.71

Investment loss ("-" for income) -168,889,947.72 -971,213,097.77

Decrease in deferred income tax

assets ("-" for increase) -69,078,368.92 -47,922,530.68

Increase in deferred income tax

liabilities ("-" for decrease) 10,062,594.83 -752,432.32

Decrease in inventory ("-" for

increase) -215,755,757.30 113,838,274.43

Decrease in operating accounts

receivable ("-" for increase) -2,690,631,980.02 19,955,070.76

Increase in operating accounts

payable ("-" for decrease) -234,226,065.55 -1,327,474,420.31

Others


247 / 329


activities 6,598,317,662.43 8,716,004,386.63

2. Significant investment and

financing activities without cash

income or expense:

Conversion of debt to capital

Convertible corporate bonds due

within 1 year

Fixed assets under financing lease

3. Net change in cash and cash

equivalents:

Ending balance of cash 9,497,716,356.36 9,862,594,610.28

Minus: Beginning balance of cash 9,552,821,841.00 8,447,826,019.91

Plus: Ending balance of cash

equivalents

Minus: Beginning balance of cash

equivalents

Net increase in cash and cash

equivalents -55,105,484.64 1,414,768,590.37

(2) Net cash paid for acquisition of subsidiaries in the current period



Amount

Cash or cash equivalents paid in the current period due to business

combination in the current period

245,914,673.46

Including: Hengfeng County Jinko Electric Power Co., Ltd. 134,360,000.00

Hainan Dongfang Gaopai Wind Power Generation Co., Ltd. 12,712,156.79

Benbrack Wind Farm Limited 98,842,516.67

Less: Cash and cash equivalents held by subsidiaries on the date of

acquisition

18,092,476.31

Including: Hengfeng County Jinko Electric Power Co., Ltd. 17,646,883.71

Hainan Dongfang Gaopai Wind Power Generation Co., Ltd. 445,592.60


248 / 329

Plus: Cash or cash equivalents paid in the current period due to

business combination in the previous period

Net cash paid for acquisition of subsidiaries 227,822,197.15

(3) Net cash received from disposal of subsidiaries in the current period


(4) Composition of cash and cash equivalents




I. Cash 9,497,716,356.36 9,552,821,841.00

Including: Cash on hand 63,337.04 73,310.88

Deposit in bank available for

payment at any time 9,481,587,480.09 9,517,145,964.98

Other monetary capital

available for payment at any time 16,065,539.23 35,602,565.14

Deposit in central bank

available for payment

Inter-bank deposit

Inter-bank borrowing

II. Cash equivalents

Including: Bond investments due

within 3 months

III. Ending balance of cash and cash

equivalents 9,497,716,356.36 9,552,821,841.00

Including: Cash and cash

equivalents for which the parent

company or subsidiaries of the

Group are limited to use

Other notes:


80. Notes to items in statement of changes in owners' equities

Note to the name and adjusted amount of the “Others” item whose balance is adjusted at end of previous

year:


249 / 329


81. Assets with restricted ownership or use right



Item Ending book value Reason of restriction

Monetary capital 83,292,392.97

Performance bond, house maintenance fund,

security deposit of bank acceptance, performance

security, security deposit of Bureau of Commerce

for overseas businesses, land reclamation security

deposit, credit security deposit

Notes receivable 4,472,309.22 Fixed assets loan - Pledge of charge right

Fixed assets 4,758,409,540.00 Borrowing mortgage guarantee

Right-of-use assets 381,155,878.22 Financing leasing

Accounts receivable 3,587,989,630.90 Pledge borrowing for recovery right of electricity

charge, mortgage on borrowing charge right

Accounts receivable

financing 30,000,000.00 Bills pledged

Total 8,845,319,751.31

82. Foreign-currency monetary items

(1). Foreign-currency monetary items



Item

Foreign-currency

balance at end of the

period

Exchange rate for

conversion

RMB balance

converted at end of

the period

Monetary capital 1,702,533,706.90

Including: US dollar 166,487,955.78 6.4601 1,075,528,843.13

Euro 791,685.46 7.8629 6,085,052.81

Pound 60,453,205.49 8.9410 540,512,110.29

THB 399,095,572.58 0.2015 80,407,700.67

Accounts receivable 50,179,421.24


250 / 329

Including: Pound 2,704,459.16 8.9410 24,180,569.35

THB 129,042,698.59 0.2015 25,998,851.89

Other receivables 9,548,445.13

Including: Pound 942,437.83 8.9410 8,426,336.64

THB 5,569,473.14 0.2015 1,122,108.49

Long-term receivables 851,782,904.70

Including: Pound 95,267,073.56 8.9410 851,782,904.70

Short-term borrowings 18,215,177.42

Including: Pound 2,037,264.00 8.9410 18,215,177.42

Accounts payable 12,009,152.63

Including: THB 14,893,150.96 0.2015 3,000,594.61

Pound 1,007,555.98 8.9410 9,008,558.02

Other payables 74,896,756.74

Including: Pound 6,220,505.73 8.9410 55,617,541.73

Hong Kong dollar 18,811,000.00 0.8321 15,652,256.88

THB 18,002,043.56 0.2015 3,626,958.13

Long-term borrowings 3,267,965,014.73

Including: US dollar 25,039,222.91 6.4601 161,755,883.92

Pound 347,411,825.39 8.9410 3,106,209,130.81

Long-term payables 57,972,937.40

Including: US dollar 8,974,000.00 6.4601 57,972,937.40

(2). Notes to overseas business entities, including the disclosure of main overseas business places,

recording currency and selection basis of important overseas business entities, as well as the

reason for change (if any) of recording currency


(1) Upon the deliberation and approval of the 29th meeting of the 9th Board of Directors of the

Company held on February 24, 2016, the Company would acquire the 100% equities of Red Rock Power

Limited, a wholly-owned subsidiary of Repsol Nuevas Energias S.A., at a price of 185.4 million pounds

(the Company decided whether GBP 16.6 million is paid additionally according to the fact whether the

Inch Cape Offshore Wind Power Project of the acquisition target could obtain a price difference contract

or similar preferential support). The acquired company has its main place of business located in Scotland


251 / 329

region of the UK, and its recording currency is pound. This company is mainly engaged in wind power

development, and now it is operating two projects (Beatrice project and ASKA project) that have been

put into production and is developing a project (Inch Cape project) in the early stage of capital

construction.

(2) Upon the deliberation and approval of the 20th meeting of the 10th Board of Directors of the

Company held on December 15, 2017, Red Rock Power Limited would acquire 100% equities of Afton

Wind Farm (Holdings) Limited, a wholly-owned subsidiary of InfraRed Capital Partners, at the price of

120 million pounds. The acquired company has its main place of business located in Scotland region of

the UK, and its recording currency is pound. This company is mainly engaged in the onshore wind

power development, and now it is operating the Afton Wind Farm Limited project and a property

management company named Afton Wind Farm (BMO) Limited.

(3) Upon the resolution passed by the 51st meeting of the 10th Board of Directors of the Company held

on May 28, 2019, SDIC Huanneng, a subsidiary of the Company, increased its investment in Newsky

(China) Environment & Tech Co. Ltd. by USD 43 million, and then it held 60% equities of the

company. Newsky (China) has two main places of business, namely Guizhou Newsky Environment &

Tech Co. Ltd. located in Guizhou Province, China and “C&G Environment Protection (Thailand) CO

located in Thailand, and both of the two companies are mainly engaged in garbage power generation.

The recording currency of Guizhou Newsky is RMB Yuan, and that of C&G Environment Protection

(Thailand) CO is THB.

(4) Upon the deliberation and approval of the 15th meeting of General Manager Meeting of the company

held on January 22, 2021, Red Rock Power Limited was agreed to acquire 100 equities of Benbrack

Wind Farm Limited, a wholly-owned subsidiary of RWE Renewables UK Limited. The acquired

company has its main place of business located in Scotland region of the UK, and its recording currency

is pound. This company is mainly engaged in the onshore wind power development.


252 / 329

83. Hedging


Relevant qualitative and quantitative information of hedging items, associated hedging instruments and hedged risks disclosed as per type of hedging:


Book value of

hedged item

Accumulated amount of

hedging adjustment of fair

value of hedged item

(included in the book value of

hedged item)

Presentation

items

(including

hedged items)

in balance

sheet

Change in

fair value

of hedged

item used

as basis for

recognizin

g invalid

hedging in

the current

period

Nomi

nal

amou

nt of

hedgi

ng

instru

ment

Book value of

hedging

instrument Presentation

items

(including

hedging

instruments) in

balance sheet

Change in

fair value of

hedging

instrument

used as basis

for

recognizing

invalid

hedging in

the current

period

Invalid

hedging

included

in the

current

profit

and loss

Invalid hedging

included in other

comprehensive

income

Presentatio

n items

(including

invalid

hedging) in

profit

statement

included in

the current

profit and

loss

Asset Liability Asset Liability Asset Liability

Rate

risk

31,667,5

18.57 31,667,518.57

Derivative

financial

liability

31,667,5

18.57

Derivative

financial

liability

31,667,518.57

84. Government subsidies

1. Basic information of government subsidies



Type Amount Presented

item

Amount included

in the current

profit and loss

Refund of land acquisition fund difference for Jinneng Beijiang power plant project 60,730,337.75 Other income 929,545.98


253 / 329

Modification of low-low temperature economizer of Jinneng #2 unit 1,388,888.95 Other income 66,666.66

Discount interest fund for imported equipment of Jinneng allocated by the central government in

2008 3,525,555.40 Other income 278,333.34

Technical reformation of smoke condensation and dehumidification of Tianjin Jinneng 14,844,444.44 Other income 533,333.34

Environmental special subsidy for flue gas pollutant ultra-clean emission and upgrade

modification of #1 unit of Huaxia Power 1,313,816.56 Other income 57,962.52

Financial award for energy-saving modification project of #1 steam turbine flow path and thermal

system of Huaxia Power 363,809.48 Other income 26,948.82



Financial award for #2 steam turbine flow path reconstruction project of Huaxia Power 28,697.51 Other income 3,188.64

Financial award for #2 steam turbine flow path reconstruction and other energy system

optimization project of Huaxia Power 993,371.96 Other income 110,374.62

Subsidy for flue gas pollutant ultra-clean emission and upgrade modification of #3 unit of Huaxia

Power 2,409,056.50 Other income 114,717.00



Award for flue gas pollutant ultra-clean emission and upgrade modification of #3 unit of Huaxia


Subsidy for flue gas pollutant ultra-clean emission and upgrade modification of #4 unit of Huaxia


Environmental special subsidy for flue gas pollutant ultra-clean emission and upgrade 1,296,318.64 Other income 61,243.38


254 / 329


Award for flue gas pollutant ultra-clean emission and upgrade modification of #4 unit of Huaxia


Environmental investment subsidy for flue gas pollutant ultra-clean emission and upgrade


Investment award for flue gas pollutant ultra-clean emission and upgrade modification of #1 unit

of Huaxia Power 1,947,870.98 Other income 85,935.48

Environmental investment subsidy for flue gas pollutant ultra-clean emission and upgrade


Investment award for flue gas pollutant ultra-clean emission and upgrade modification of #2 unit

of Huaxia Power 1,940,662.19 Other income 88,211.94

Subsidy for #2 steam turbine flow path reconstruction EPC project of Huaxia Power 1,435,866.56 Other income 65,266.68

Investment award for #2 steam turbine flow path reconstruction EPC project of Huaxia Power 489,536.41 Other income 22,251.66





Award for technical reformation of coal-sludge coupling power generation of Huaxia Power 339,168.75 Other income 12,259.14

Subsidy for NOx emission control reconstruction project of 4 units of Huaxia Power 1,085,068.50 Other income 78,438.72

Award for modification of reductant preparation system of denitrification system of Huaxia Power 687,867.77 Other income 24,566.70


255 / 329

Environmental subsidy for addition of reserved layer catalyst in flue gas denitrification system of

Huaxia Power 2,792,979.99 Other income 310,331.16

Subsidy for 220kV booster station GIS modification project of Huaxia Power Phase I 1,159,722.44 Other income 41,666.64

Subsidy for heating units reconstruction of Huaxia Power Phase I 3,038,000.00 Other income 147,000.00

Subsidy for technical reformation of flue gas cleaning project of Huaxia Power Phase I (subsidy

from Xiamen Government) 370,905.61 Other income 222,543.24

Subsidy for technical reformation of flue gas cleaning project of Huaxia Power Phase I (subsidy

from Central Government) 585,268.91 Other income 351,161.46

Subsidy for technical reformation of flue gas denitrification project of Huaxia Power Phase I

(subsidy from Xiamen Government) 115,791.17 Other income 99,249.42

Investment Award for district-level industrial fixed assets of Huaxia Power granted by the Bureau

of Industrial and Information Technology of Haicang District, Xiamen City in 2020 25,000.00 Other income 25,000.00

Special funds for Guizhou provincial new urbanization development from Huanneng 2,000,000.00

Deferred

income

Financial subsidy for energy-saving reconstruction of Qinzhou granted by Qinzhou Port Economy

and Technology Development Zone 58,333.31 Other income 58,333.31

Subsidy for denitrification and emission reduction of SDIC Qinzhou 119,506.12 Other income 119,506.12

Tax-exempt income of the headquarters of electric power company 613.59 Other income 613.59

Special fund subsidy for Tianjin municipal energy-saving project from Jinneng Development and

Reform Commission in 2020 500,000.00 Other income 500,000.00

Technical reformation of smoke condensation and dehumidification of Tianjin Jinneng 533,333.34 Other income 533,333.34


256 / 329

Subsidy for employment maintaining of Yalong River 4,000.00 Other income 4,000.00

VAT exemption or reduction for retired soldiers in Yalong River 1,449,741.37 Other income 1,449,741.37

Exemption or reduction for focus groups of Yalong River 123,900.00 Other income 123,900.00

VAT refund of Yalong River 10,000,000.00 Other income 10,000,000.00

Financial support fund for Yalong River from Sichuan Province 191,000.00 Other income 191,000.00

Tax exemption or reduction for registered poverty-stricken people in Yalong River 85,800.00 Other income 85,800.00

Additional deduction of input tax for Yalong River 262,571.31 Other income 262,571.31

VAT exemption or reduction of Yalong River 253.72 Other income 253.72

VAT refund of New Energy 1,498,469.24 Other income 1,498,469.24

Immediately collected and refunded VAT of New Energy 12,215,689.72 Other income 12,215,689.72

Balance of award received by Xiaosanxia over the years from Gaolan County 207,000.00 Other income 207,000.00

Management expense of housing fund of Xiaosanxia 752,075.47 Other income 752,075.47

VAT refund of Meizhouwan 397,149.81 Other income 397,149.81

Award for continuous production and stable employment during the Spring Festival and Spring

Festival celebration in Putian of Meizhouwan 189,900.00 Other income 189,900.00

Subsidy for energy consumption online monitoring system of key energy consumption units of

Meizhouwan 40,000.00 Other income 40,000.00

VAT refund of Panjiang 13,155,855.01 Other income 13,155,855.01


257 / 329

Additional deduction of input tax of KingRock 17,881.75 Other income 17,881.75

Compensation for social security insurance of Huanneng by the Administration Commission of

Xiamen Huoju High-tech Industrial Development Zone 5,714.07

Non-

operating

income

5,714.07

Wealth award for Huanneng by the Administration Commission of Xiamen Huoju High-tech

Industrial Development Zone 1,000.00

Non-

operating

income

1,000.00

Refund of Provident Fund of Newsky Energy (Thailand) by Huanneng during COVID-19

14,206.77

Non-

operating

income

14,206.77

Award subsidy for Qinzhou high-tech enterprise by Guangxi Department of Science and

Technology 100,000.00 Other income 100,000.00

Refund of harbour dues of Qinzhou 1,027,461.71 Other income 1,027,461.71

Subsidy for training of Qinzhou Employment Service Center 500.00 Other income 500.00

Subsidy for development of enterprises in Hengfeng 79,167,819.59 Other income 2,914,152.84

Immediately-collected and refunded VAT of Hainan 1,952,860.78 Other income 1,952,860.78

Additional deduction of input tax of Dachaoshan 9,914.78 Other income 9,914.78

Working as training of Yalong River

2,763,000.00

Non-

operating

income

2,763,000.00

2. Refund of government subsidy



258 / 329

85. Others


VIII. Change in consolidation scope

1. Business consolidation not under the same control


(1). Business consolidation not under the same control in the current period



Name of

acquiree

Time of

equity

acquisition

Cost of equity

acquisition

Proportion of

equity

acquisition

(%)

Method of

equity

acquisition

Date of

acquisition

Basis for

determination

of date of

acquisition

Income of acquiree

from the date of

acquisition to the

end of period

Net profit of

acquiree from the

date of acquisition

to the end of period

Hengfeng

County

Jinko

Electric

Power Co.,

Ltd.

January 2021 158,400,000.00 90.00 Acquisition January 2021 Change of

equity 29,445,350.38 8,235,651.21

Yancheng

Zhihui

Energy

Power Co.,

Ltd.

March 2021 81.00 Acquisition March 2021 Change of

equity - -17,753.94


259 / 329

Hainan

Dongfang

Gaopai

Wind Power

Generation

Co., Ltd.

May 2021 16,200,000.00 100.00 Acquisition May 2021 Change of

equity 11,346,038.51 2,018,983.63

Benbrack

Windfarm

Limited

February

2021 98,842,516.67 100.00 Acquisition

February

2021

Obtaining the

control right - -

Other notes:

① In January 2021, SDIC Power acquired 90% equities of Hengfeng County Jinko Electric Power Co., Ltd. at the price of RMB 158,400,000.00 and controlled the

company.

② In March 2021, SDIC Power acquired 81% equities of Yancheng Zhihui Energy Power Co., Ltd. at the price of RMB 0.00 and controlled the company.

③ In May 2021, SDIC Power acquired 100% equities of Hainan Dongfang Gaopai Wind Power Generation Co., Ltd. at the price of RMB 16,200,000.00 and

controlled the company.

④ Upon deliberation and approval of General Manager Office Meeting of SDIC Power in January 2021, Red Rock Power Limited was agreed to acquire 100%

equities of Benbrack Wind Farm Limited, and substantial control right was obtained in February in the same year.

(2). Consolidation cost and business reputation



Consolidation cost

Hengfeng

County Jinko

Electric Power Co., Ltd.

Yancheng Zhihui

Energy Power

Co., Ltd.

Hainan

Dongfang

Gaopai Wind

Power Generation Co.,

Ltd.

Benbrack Windfarm

Limited


260 / 329

-- Cash 158,400,000.00 16,200,000.00 98,842,516.67

-- Fair value of non-cash assets

-- Fair value of issued or undertaken debts

-- Fair value of issued equity securities

-- Fair value of contingent consideration

-- Fair value of equity on the date of acquisition that is held before the date of

acquisition

-- Others

Total consolidation cost 158,400,000.00 16,200,000.00 98,842,516.67

Less: Fair value of acquired identifiable net assets 242,641,580.53 21,054,700.96 98,842,516.67

Difference between the business reputation/consolidation cost and the fair value

of acquired identifiable net assets -84,241,580.53 -4,854,700.96 -

Notes to determination method of fair value of consolidation cost, contingent consideration and its change:

① Hengfeng County Jinko Electric Power Co., Ltd.: Fair value of consolidation cost is determined based on payment consideration.

② Hainan Dongfang Gaopai Wind Power Generation Co., Ltd.: Fair value of consolidation cost is determined based on payment consideration.

③Benbrack Windfarm Limited: Fair value of consolidation cost is determined based on payment consideration and capitalization expense attributable to

transactions.

Note: Yancheng Zhihui Energy Power Co., Ltd. is acquired at the price of RMB 0.


261 / 329

(3). Identifiable assets and liabilities of the acquiree on the date of acquisition



Hengfeng County Jinko Electric Power Co., Ltd. Hainan Dongfang Gaopai Wind Power Generation Co., Ltd.

Fair value on the date of

acquisition

Book value on the date of

acquisition

Fair value on the date of

acquisition

Book value on the date of

acquisition

Assets: 582,352,424.87 504,761,640.03 356,912,846.89 449,484,009.29

Monetary capital 17,646,883.71 17,646,883.71 445,592.60 445,592.60

Accounts receivable 173,155,416.80 173,155,416.80 32,164,948.32 32,164,948.32

Inventories 1,014,479.92 1,014,479.92

Fixed assets 367,934,690.73 290,343,905.89 415,856,508.45 323,285,346.05

Intangible assets 2,480.00 2,480.00


Other current assets 217,667.69 217,667.69

Long-term unamortized

expenses 1,305,604.69 1,305,604.69

Deferred tax assets 21,338,144.33 21,338,144.33

Liabilities: 312,750,668.73 312,750,668.73 337,878,631.66 337,878,631.66


262 / 329

Borrowings 222,354,147.49 222,354,147.49 253,501,561.30 253,501,561.30

Accounts payable 4,867,889.98 4,867,889.98 80,445,971.21 80,445,971.21

Deferred income tax

liabilities

Taxes payable 3,446,658.83 3,446,658.83 3,931,099.15 3,931,099.15

Deferred incomes 82,081,972.43 82,081,972.43

Net assets 269,601,756.14 192,010,971.30 19,034,215.23 111,605,377.63

Less: Minority

shareholders’ equities

Acquired net assets 269,601,756.14 192,010,971.30 19,034,215.23 111,605,377.63

Benbrack Windfarm Limited

Fair value on the date of acquisition Book value on the date of acquisition

Assets: 98,842,516.67 24,533,038.17

Monetary capital

Accounts receivable

Inventories

Fixed assets


263 / 329


Liabilities:

Borrowings

Accounts payable


Net assets 98,842,516.67 24,533,038.17

Less: Minority shareholders’ equities

Acquired net assets 98,842,516.67 24,533,038.17

Note: Yancheng Zhihui Energy Power Co., Ltd. is acquired at the price of RMB 0.

Method for determination of fair value of identifiable assets and liabilities:

① Hengfeng County Jinko Electric Power Co., Ltd.: Fair value of identifiable net assets is determined based on assessment report.

② Hainan Dongfang Gaopai Wind Power Generation Co., Ltd.: Fair value of identifiable net assets is determined based on assessment report.

③Benbrack Windfarm Limited: Fair value of identifiable net assets is determined based on market value.

(4). Profits or losses from fair-value re-measurement of equities held before the date of acquisition

Existence of transaction aiming at step-by-step implementation of business consolidation and the acquisition of control right in the report period through multiple

transactions



264 / 329

(5). Notes to consolidation consideration or fair value of identifiable assets and liabilities of the acquiree that cannot be determined reasonably on the date

of acquisition or at the end of the consolidation period


(6). Other notes


2. Business consolidation under the same control


3. Counter purchase


4. Disposal of subsidiaries

Existence of situation resulting in the losing of control right due to single disposal of investments in subsidiaries


Other notes:


5. Changes in consolidation scope for other reasons

Notes to changes in consolidation scope for other reasons (such as establishment of new subsidiary and liquidation of subsidiary) and relevant situations:


Name Reason for increase


265 / 329

SDIC Qinzhou Second Power Generation Co., Ltd. Newly-established

Hezhang Wenyuan New Energy Co., Ltd. Newly-established

SDIC Tibet New Energy Co., Ltd. Newly-established

SDIC Jiuquan New Energy Co., Ltd. Newly-established

SDIC Jimsar New Energy Co., Ltd. Newly-established

6. Others


IX. Equities in other entities

1. Equities in subsidiaries

(1) Composition of enterprise group


Name of subsidiary Main place of

business Registered address

Business

nature

Shareholding

proportion (%) Method of acquisition

Direct Indirect

1 Tianjin SDIC Jinneng Electric Power

Co., Ltd. Tianjin Tianjin

Thermal

power 64.00 Investment for establishment

1-1 Tianjin Beijiang Environmental

Building Materials Co., Ltd. Tianjin Tianjin

Building

materials

production

100.00 Investment for establishment


266 / 329

2 Yalong River Hydropower


Chengdu City,

Sichuan Province

Chengdu City,

Sichuan Province Hydropower 52.00 Investment for establishment

2-1 Sichuan Ertan Construction and

Consultation Co., Ltd.

Chengdu City,

Sichuan Province

Chengdu City,

Sichuan Province

Construction

consulting 66.67 Investment for establishment

2-2 Sichuan Ertan Industrial Development

Co., Ltd.

Chengdu City,

Sichuan Province

Chengdu City,

Sichuan Province

Property

service 90.00 Investment for establishment

2-3 Yalong River Hydropower Liangshan

Co., Ltd.

Liangshan, Sichuan

Province

Liangshan, Sichuan

Province Hydropower 100.00 Investment for establishment

2-4 Yalong River Hydropower Panzhihua

Dongzilin Co., Ltd.

Panzhihua City,

Sichuan Province

Panzhihua City,


2-5 Yalong River Sichuan Energy Co.,

Ltd.

Chengdu City,

Sichuan Province

Chengdu City,

Sichuan Province

Electric

power

purchase and

sales


2-6 Yalong River Huili New Energy Co.,

Ltd.

Liangshan, Sichuan

Province

Liangshan, Sichuan

Province

Photovoltaic

power 51.00

Business consolidation not

under the same control

2-7 Yalong River Mianning New Energy

Co., Ltd.

Liangshan, Sichuan

Province

Liangshan, Sichuan

Province

Photovoltaic

power 60.00



2-8 Yalong River Hydropower Ganzi Co.,

Ltd.

Ganzi Prefecture,

Sichuan Province

Ganzi Prefecture,


2-9 Dechang Wind Power Devel Co., Ltd. Liangshan, Sichuan

Province

Liangshan, Sichuan

Province Wind power 100.00



2-10 Yalong River Yanyuan Photovoltaic

Co., Ltd.

Liangshan, Sichuan

Province

Liangshan, Sichuan

Province

Photovoltaic



267 / 329

3 SDIC New Energy Investment Co., Ltd. Lanzhou City,

Gansu Province Beijing

Electric

power

investment


3-1 SDIC Baiyin Wind Power Co., Ltd. Baiyin City, Gansu

Province

Baiyin City, Gansu

Province Wind power 100.00 Investment for establishment

3-2 SDIC Jiuquan 1st Wind Power Co.,

Ltd.

Jiuquan City, Gansu

Province

Jiuquan City, Gansu


3-3 SDIC Jiuquan 2nd Wind Power Co.,

Ltd.

Jiuquan City, Gansu

Province

Jiuquan City, Gansu


3-4 SDIC Qinghai Wind Power Co., Ltd. Haixi Prefecture,

Qinghai Province

Haixi Prefecture,

Qinghai Province Wind power 79.60 Investment for establishment

3-5 SDIC Turpan Wind Power Co., Ltd. Turpan City,

Xinjiang

Turpan City,

Xinjiang Wind power 100.00 Investment for establishment

3-6 SDIC Ningxia Wind Power Co., Ltd. Zhongwei City,

Ningxia Province

Zhongwei City,

Ningxia Province Wind power 100.00 Investment for establishment

3-7 SDIC Dunhuang Photovoltaic Power

Co., Ltd.

Dunhuang City,

Gansu Province

Dunhuang City,

Gansu Province

Photovoltaic


3-8 SDIC Shizuishan Photovoltaic Power

Co., Ltd.

Shizuishan City,

Ningxia Province

Shizuishan City,

Ningxia Province

Photovoltaic


3-9 SDIC Golmud Photovoltaic Power

Co., Ltd.

Golmud City,

Qinghai Province

Golmud City,

Qinghai Province

Photovoltaic


3-10 SDIC Yunnan Wind Power Co., Ltd. Kunming City,

Yunnan Province Kunming City,

Yunnan Province Wind power 90.00 Investment for establishment


268 / 329

3-11 SDIC Chuxiong Wind Power Co.,

Ltd.

Chuxiong City,

Yunnan Province

Chuxiong City,

Yunnan Province Wind power 90.00 Investment for establishment

3-12 SDIC Dali Photovoltaic Power Co.,

Ltd.

Dali City, Yunnan

Province

Dali City, Yunnan

Province

Photovoltaic


3-13 SDIC Guangxi Wind Power Co., Ltd.

Qinzhou City,

Guangxi Zhuang

Autonomous

Region

Qinzhou City,

Guangxi Zhuang

Autonomous

Region

Wind power 100.00 Investment for establishment

3-14 SDIC Hami Wind Power Co., Ltd. Hami City, Xinjiang Hami City, Xinjiang Wind power 100.00 Investment for establishment

3-15 Tianjin SDIC New Energy Co., Ltd. Tianjin Tianjin Wind power 100.00 Investment for establishment

3-16 SDIC Yan’an New Energy Co., Ltd. Yan'an City,

Shaanxi Province

Yan'an City,

Shaanxi Province Wind power 100.00 Investment for establishment

3-17 SDIC Gansu New Energy Co., Ltd. Lanzhou City,

Gansu Province

Lanzhou City,

Gansu Province

Electric

power

investment


3-18 SDIC Barkol New Energy Co., Ltd. Hami City, Xinjiang Hami City, Xinjiang Wind power 100.00 Investment for establishment

4 Xiamen Huaxia International Power


Xiamen City, Fujian

Province

Xiamen City, Fujian

Province

Thermal

power 56.00

Business consolidation under

the same control

5 SDIC Xiaosanxia Power Generation

Co., Ltd.

Lanzhou City,

Gansu Province

Lanzhou City,

Gansu Province Hydropower 60.45 Investment for establishment

6 SDIC Genting Meizhouwan Electric

Power Co., Ltd.

Putian City, Fujian

Province

Putian City, Fujian

Province

Thermal



269 / 329

6-1 SDIC Meizhouwan Electricity Sales

Co., Ltd.

Putian City, Fujian

Province

Putian City, Fujian

Province

Electric

power

purchase and

sales


7 SDIC Gansu Electricity Sales Co., Ltd. Lanzhou City,

Gansu Province

Lanzhou City,

Gansu Province

Electric

power

purchase and

sales


8Red Rock Investment Limited London, UK London, UK

Electric

power

investment


8-1Red Rock Power Limited Scotland, UK Scotland, UK

Electric

power

investment

100.00 Business consolidation not


8-1-1Beatrice Windfarm Limited Scotland, UK Scotland, UK

Electric

power

investment



8-1-2Afton Wind Farm (Holdings)

Limited Scotland, UK Scotland, UK

Assets

management 100.00



8-1-2-1Afton Wind Farm Limited Scotland, UK Scotland, UK Wind power 100.00 Business consolidation not


8-1-2-2Afton Wind Farm (BMO) Limited Scotland, UK Scotland, UK Assets

management 100.00



8-1-3Benbrack Wind Farm Limited Scotland, UK Scotland, UK Wind power 100.00 Business consolidation not



270 / 329

9 SDIC KingRock Overseas Investment

Management Co., Ltd.

Xiamen City, Fujian

Province

Xiamen City, Fujian

Province

Investment

management 100.00 Investment for establishment

10Jaderock Investment Singapore Pte Ltd Singapore Singapore

Electric

power

investment


11 SDIC Dachaoshan Hydropower Co.,

Ltd.

Kunming City,

Yunnan Province

Kunming City,

Yunnan Province Hydropower 50.00 Investment for establishment

11-1 Yunnan Dachao Industry Co., Ltd. Kunming City,

Yunnan Province

Kunming City,

Yunnan Province

Property

management 100.00



12 SDIC Aksay New Energy Co., Ltd. Jiuquan City, Gansu

Province

Jiuquan City, Gansu

Province

Photovoltaic


13 SDIC New Energy (Honghe) Co., Ltd.

Honghe

Autonomous

Prefecture, Yunnan

Province

Honghe

Autonomous

Prefecture, Yunnan

Province

Photovoltaic

power 90.00 10.00



14 Toksun Trina Solar Co., Ltd. Turpan City,

Xinjiang

Turpan City,

Xinjiang

Photovoltaic

power 100.00



15 SDIC Panjiang Electric Power Co.,

Ltd.

Liupanshui City,

Guizhou Province

Liupanshui City,

Guizhou Province

Thermal


15-1 SDIC Guizhou Electricity Sales Co.,

Ltd.

Liupanshui City,

Guizhou Province

Liupanshui City,

Guizhou Province

Electric

power

purchase and

sales


16 Huzhou Xianghui Photovoltaic Power

Co., Ltd.

Huzhou City,

Zhejiang Province

Huzhou City,

Zhejiang Province

Photovoltaic

power 100.00




271 / 329

17 SDIC Huanneng Electric Power Co.,

Ltd. Beijing Beijing

Electric

power

investment


17-1 Newsky (China) Environment &

Tech Co., Ltd.

Xiamen City, Fujian

Province

Xiamen City, Fujian

Province

Electric

power

investment



17-1-1 Guizhou Newsky Environment &

Tech Co., Ltd.

Liupanshui City,

Guizhou Province

Liupanshui City,

Guizhou Province

Garbage

power 100.00



17-1-1-1 Guizhou Newsky Kitchen

Sludge Treatment Co., Ltd.

Liupanshui City,

Guizhou Province

Liupanshui City,

Guizhou Province

Garbage

treatment 99.00



17-1-2Newsky Energy (Thailand)

Company Limited Thailand Thailand

Electric

power

investment



17-1-2-1C&G Environment Protection

(Thailand) Company Limited Thailand Thailand

Garbage

power 100.00



17-1-2-2Newsky Energy (Bangkok)

Company Limited Thailand Thailand

Electric

power

investment



17-1-3Newsky (Philippines) Holdings

Corporation Philippines Philippines

Electric

power

investment


18 SDIC Qinzhou Electric Power Co.,

Ltd.

Qinzhou City,

Guangxi Zhuang

Autonomous

Region

Qinzhou City,

Guangxi Zhuang

Autonomous

Region

Thermal

power 61.00

Business consolidation under

the same control


272 / 329

18-1 Guangxi Guoqin Energy Co., Ltd.

Qinzhou City,

Guangxi Zhuang

Autonomous

Region

Qinzhou City,

Guangxi Zhuang

Autonomous

Region

Electric

power

purchase and

sales


19 SDIC Inner Mongolia New Energy

Co., Ltd.

Ordos City, Inner

Mongolia

Ordos City, Inner

Mongolia Wind power 100.00 Investment for establishment

20 Dingbian County Only Photovoltaic

Technology Co., Ltd.

Yulin City, Shaanxi

Province

Yulin City, Shaanxi

Province

Photovoltaic

power 100.00



21 SDIC Jiangsu New Energy Co., Ltd. Nanjing City,

Jiangsu Province

Nanjing City,

Jiangsu Province

Electric

power

investment


22 Xiangshui Hengneng Solar Power


Yancheng City,

Jiangsu Province

Yancheng City,

Jiangsu Province

Photovoltaic

power 100.00



23 Xiangshui Yongneng Solar Power


Yancheng City,

Jiangsu Province

Yancheng City,

Jiangsu Province

Photovoltaic

power 100.00



24 Jingbian County Zhiguang New

Energy Development Co., Ltd.

Yulin City, Shaanxi

Province

Yulin City, Shaanxi

Province

Electric

power

investment



25 SDIC New Energy Co., Ltd. Zhangjiakou City,

Hebei Province

Zhangjiakou City,

Hebei Province

Investment


26 Guyuan County Guanghui New

Energy Power Generation Co., Ltd.

Zhangjiakou City,

Hebei Province

Zhangjiakou City,

Hebei Province

Photovoltaic

power 100.00



27 Zhangjiakou Jinko New Energy Co.,

Ltd.

Zhangjiakou City,

Hebei Province

Zhangjiakou City,

Hebei Province

Photovoltaic

power 100.00




273 / 329

28 Shenyang Jingbu Photovoltaic Power

Co., Ltd.

Shenyang City,

Liaoning Province

Shenyang City,

Liaoning Province

Photovoltaic

power 100.00



28-1 Fuxin Jingbu Solar Power Co., Ltd. Fuxin City,

Liaoning Province

Fuxin City,

Liaoning Province

Photovoltaic

power 100.00



29 Hengfeng CountyJinko Power Co.,

Ltd.

Shangrao City,

Jiangxi Province

Shangrao City,

Jiangxi Province

Photovoltaic

power 90.00



30 Yancheng Zhihui Energy Power Co.,

Ltd.

Yancheng City,

Jiangsu Province

Yancheng City,

Jiangsu Province

Energy

storage 81.00



31 Hainan Dongfang Gaopai Wind Power

Co., Ltd.

Dongfang City,

Hainan Province

Dongfang City,

Hainan Province Wind power 100.00



31-1 Dongfang Zhengwei Electric Power

Engineering Co. LTD

Dongfang City,

Hainan Province

Dongfang City,

Hainan Province

Technical

service 100.00



32 SDIC Qinzhou Second Power


Qinzhou City,

Guangxi Zhuang

Autonomous

Region

Qinzhou City,

Guangxi Zhuang

Autonomous

Region

Thermal


33 Hezhang Wenyuan New Energy Co.,

Ltd.

Bijie City, Guizhou

Province

Bijie City, Guizhou

Province

Photovoltaic


34 SDIC Tibet New Energy Co., Ltd. Lhasa, Tibet Lhasa, Tibet Investment


35 SDIC Jiuquan New Energy Co., Ltd. Jiuquan City, Gansu

Province

Jiuquan City, Gansu


36 SDIC Jimsar New Energy Co., Ltd. Changji City,

Xinjiang

Changji City,

Xinjiang

Photovoltaic



274 / 329

(2). Significant non-wholly owned subsidiaries



Name of subsidiary Shareholding proportion

of minority shareholders

Profits and losses attributable

to minority shareholders in the

current period

Dividends declared to be

allocated to minority

shareholders in the current

period

Ending balance of minority

shareholders’ equities

Tianjin SDIC Jinneng Electric

Power Co., Ltd.

36.00% 2,253,779.16 108,864,353.12 1,406,379,271.60



48.00% 1,308,870,935.10 2,400,000,000.00 25,042,458,617.73

SDIC New Energy Investment Co.,

Ltd.

35.11% 118,771,378.35 1,100,929,300.64

Xiamen Huaxia International Power


44.00% 37,528,758.63 65,651,583.14 675,692,363.77

SDIC Xiaosanxia Power Generation

Co., Ltd.

39.55% 67,693,427.30 9,718,386.60 588,463,730.87

SDIC Genting Meizhouwan Electric

Power Co., Ltd.

49.00% 35,831,045.59 251,502,264.14 1,655,838,349.77

SDIC Gansu Electricity Sales Co.,

Ltd.

35.00% -211,644.20 27,911,967.95

SDIC Dachaoshan Hydropower Co.,

Ltd.

50.00% 181,514,555.03 235,531,740.06 1,593,603,058.29


275 / 329

SDIC Panjiang Electric Power Co.,

Ltd.

45.00% 23,893,505.78 19,350,000.00 266,256,882.18

SDIC Qinzhou Electric Power Co.,

Ltd.

39.00% 60,072,653.44 111,119,728.25 1,014,101,693.16

Hengfeng County Jinko Electric

Power Co., Ltd.

10.00% 823,565.12 27,783,740.74

Notes to shareholding proportion of monitory shareholders of subsidiary different from the proportion of their voting rights


Other notes:


(3). Main financial information of significant non-wholly owned subsidiaries



Name of

subsidiary


Current assets Non-current assets Total assets Current liabilities Non-current

liabilities Total liabilities Current assets Non-current assets Total assets Current liabilities

Non-current

liabilities Total liabilities

Tianjin SDIC

Jinneng

Electric

Power Co.,

Ltd.

1,457,866,676.76 11,130,767,151.26 12,588,633,828.02 1,915,150,541.63 6,766,874,198.60 8,682,024,740.23 1,206,236,272.02 11,581,399,985.49 12,787,636,257.51 3,320,153,580.45 5,264,733,106.07 8,584,886,686.52

Yalong River

Hydropower

Development

Co., Ltd.

4,022,361,826.50 155,134,442,969.76 159,156,804,796.26 23,402,011,419.89 83,521,816,075.20 106,923,827,495.09 3,535,275,175.39 152,838,021,555.82 156,373,296,731.21 22,045,237,195.31 79,824,075,587.76 101,869,312,783.07

SDIC New

Energy 3,661,984,460.32 9,188,066,791.74 12,850,051,252.06 3,330,931,583.10 6,271,225,349.44 9,602,156,932.54 3,182,581,341.21 9,377,262,139.22 12,559,843,480.43 2,906,836,886.41 6,746,472,873.78 9,653,309,760.19


276 / 329

Investment

Co., Ltd.

Xiamen

Huaxia

International

Power

Development

Co., Ltd.

552,189,269.34 1,849,081,294.71 2,401,270,564.05 336,074,420.68 529,531,680.26 865,606,100.94 540,872,236.77 1,901,756,281.66 2,442,628,518.43 317,244,879.61 525,803,665.46 843,048,545.07

SDIC

Xiaosanxia

Power

Generation

Co., Ltd.

323,379,811.46 2,164,284,335.40 2,487,664,146.86 550,885,140.45 448,880,824.69 999,765,965.14 225,394,520.98 2,212,731,804.95 2,438,126,325.93 616,114,003.52 480,700,842.84 1,096,814,846.36

SDIC

Genting

Meizhouwan

Electric

Power Co.,

Ltd.

1,325,933,648.72 4,995,508,604.01 6,321,442,252.73 1,072,866,167.56 1,869,314,146.86 2,942,180,314.42 1,464,982,802.30 5,228,770,788.29 6,693,753,590.59 870,145,908.15 2,004,200,400.14 2,874,346,308.29

SDIC Gansu

Electricity

Sales Co.,

Ltd.

77,321,844.73 2,621,188.35 79,943,033.08 194,553.23 194,553.23 79,394,368.09 2,548,550.96 81,942,919.05 1,589,741.49 1,589,741.49

SDIC

Dachaoshan

Hydropower

Co., Ltd.

805,267,570.57 2,565,202,450.66 3,370,470,021.23 144,582,288.74 38,681,615.92 183,263,904.66 822,005,254.21 2,635,775,866.45 3,457,781,120.66 123,000,634.02 39,540,000.00 162,540,634.02

SDIC

Panjiang

Electric

Power Co.,

Ltd.

219,458,639.23 1,798,135,874.73 2,017,594,513.96 257,345,412.57 1,168,567,140.98 1,425,912,553.55 231,777,425.32 1,863,586,476.70 2,095,363,902.02 344,968,182.73 1,168,810,438.38 1,513,778,621.11

SDIC

Qinzhou

Electric

Power Co.,

Ltd.

895,918,311.81 4,928,138,568.90 5,824,056,880.71 1,120,928,579.20 2,091,086,570.82 3,212,015,150.02 586,723,241.70 5,196,958,464.73 5,783,681,706.43 771,930,767.48 2,268,869,559.68 3,040,800,327.16

Hengfeng

County Jinko

Electric

Power Co.,

Ltd.

314,014,717.41 382,722,354.59 696,737,072.00 9,691,617.79 409,208,046.86 418,899,664.65


277 / 329

Name of subsidiary

Amount incurred in the current period Amount incurred in the previous period

Operating income Net profit Total

comprehensive

income

Cash flows from

operating activities Operating income Net profit

Total comprehensive

income

Cash flows from


Tianjin SDIC Jinneng Electric Power

Co., Ltd. 2,778,124,569.73 6,260,497.68 6,260,497.68 226,450,418.01 2,595,617,669.98 333,231,883.37 333,231,883.37 851,147,629.40

Yalong River Hydropower Development Co., Ltd.

7,620,459,204.18 2,724,209,747.68 2,728,993,353.03 4,041,472,095.75 7,356,844,864.78 2,483,713,802.98 2,483,713,802.98 4,923,838,934.69


Ltd. 999,114,027.59 351,220,950.85 351,220,950.85 312,787,287.67 741,987,332.16 123,477,807.34 123,366,680.87 206,011,626.24

Xiamen Huaxia International Power Development Co., Ltd.

998,561,397.13 83,267,573.65 85,292,633.25 175,376,532.28 756,029,830.34 104,630,900.19 104,630,900.19 222,184,772.25


Co., Ltd. 395,273,127.30 171,105,315.88 171,159,108.23 147,624,063.56 452,116,988.97 200,747,136.10 200,995,575.57 222,802,527.29

SDIC Genting Meizhouwan Electric

Power Co., Ltd. 1,977,967,788.71 73,124,582.83 73,124,582.83 526,434,896.23 1,829,526,061.02 276,409,103.31 276,409,103.31 863,501,468.87

SDIC Gansu Electricity Sales Co.,

Ltd. 5,578,377.41 -604,697.71 -604,697.71 -3,919,022.12 174,734.72 -1,520,117.01 -1,520,117.01 -572,191.71

SDIC Dachaoshan Hydropower Co.,

Ltd. 595,028,041.48 359,600,859.55 363,029,110.05 397,004,450.49 590,455,634.66 409,755,649.48 409,755,649.48 252,261,918.14

SDIC Panjiang Electric Power Co., Ltd.

395,811,994.14 53,096,679.50 53,096,679.50 147,386,606.78 385,450,471.10 51,977,392.02 51,977,392.02 205,498,272.45

SDIC Qinzhou Electric Power Co.,

Ltd. 2,804,519,265.99 154,082,731.55 154,082,731.55 483,351,251.84 2,224,774,357.01 295,575,375.30 295,575,375.30 851,950,379.07

Hengfeng County Jinko Electric Power Co., Ltd.

29,445,350.38 8,235,651.21 8,235,651.21 55,320,244.82


278 / 329

(4). Major restrictions on use of assets of enterprise group and liquidation of debts of enterprise

group


(5). Financial or other supports provided to structured entities included in the consolidated financial

statement


Other notes:


2. Transaction changing the owner’s equities of subsidiary but still maintaining the control on the

subsidiary


3. Equities in joint venture or affiliated company


(1). Significant joint venture or affiliated company



Name of joint venture

or affiliated company

Main

place of

business

Registered

address

Business

nature

Shareholding

proportion (%)

Method for

accounting

treatment of

investment in

joint venture

or affiliated

company

Direct Indirect

SDIC Finance Co., Ltd. Beijing Beijing Financial

investment 0.8 34.6

Equity

method

Jiangxi Ganneng Co.,

Ltd.

Nanchang

City,

Jiangxi

Province

Nanchang

City,

Jiangxi

Province

Electricity

production 33.72

Equity

method

Lestari Listrik Pte. Ltd Singapore Singapore

Investment

manageme

nt

42.11 Equity

method

Grandblue Environment

Co., Ltd.

Foshan

City,

Guangdo

ng

Province

Foshan

City,

Guangdong

Province

Environme

ntal

industry

8.10 Equity

method

Beatrice Offshore

Windfarm Hold co

Limited

UK UK Wind

power 25

Equity

method


279 / 329

Tongshan CR Power

Co., Ltd.

Xuzhou

City,

Jiangsu

Province

Xuzhou

City,

Jiangsu

Province

Thermal

power 21

Equity

method

Jiangsu Ligang Electric

Power Co., Ltd.

Wuxi

City,

Jiangsu

Province

Wuxi City,

Jiangsu

Province

Thermal

power 17.47

Equity

method

Xuzhou CR Power Co.,

Ltd.

Xuzhou

City,

Jiangsu

Province

Xuzhou

City,

Jiangsu

Province

Thermal

power 30

Equity

method

Jiangyin Ligang Power


Jiangyin

City,

Jiangsu

Province

Jiangyin

City,

Jiangsu

Province

Thermal

power 9.17

Equity

method

Cloud Wind Farm

Holdings AB Sweden Sweden

Wind

power 50

Equity

method

Inch Cape Offshore

Limited Holdings UK UK

Wind

power 50

Equity

method

Basis for judgement of the case with less than 20% voting rights but having a significant influence, or

the case with 20% or more voting rights but having no significant influence:

① Shareholding ratio of Jiangsu Ligang Electric Power Co. Ltd. is less than 20%, but it is the second

largest shareholder of the affiliated company and appoints the directors to the affiliated company.

Therefore, it can significantly affect the production and operation decisions of the affiliated company.

② Shareholding ratio of Jiangyin Ligang Power Generation Co. Ltd. is less than 20%, but it is the third

largest shareholder of the affiliated company and appoints the directors to the affiliated company.

Therefore, it can significantly affect the production and operation decisions of the affiliated company.

③ Shareholding ratio of Grandblue Environment Co. Ltd. is less than 20%, but it is the third largest

shareholder of the affiliated company and appoints the directors to the affiliated company. Therefore, it

can significantly affect the production and operation decisions of the affiliated company.

(2). Main financial information of major joint ventures



Ending balance/ amount incurred in the

current period

Beginning balance/ amount incurred in

the previous period

Cloud Wind Farm

Holdings AB

Inch Cape Offshore

Limited Holdings

Cloud Wind Farm

Holdings AB

Inch Cape Offshore

Limited Holdings

Current

assets 309,742,121.78 16,170,184.66 771,218,285.16 13,891,054.01


280 / 329

Includi

ng: Cash

and cash

equivalents

135,938,555.94 5,671,561.07 610,359,760.28 8,084,577.62

Non-

current

assets

1,923,881,447.36 1,075,886,032.09 2,042,148,994.90 1,011,563,742.21

Total assets 2,233,623,569.14 1,092,056,216.75 2,813,367,280.06 1,025,454,796.22

Current

liabilities 154,027,743.25 811,218,696.03 173,815,039.87 738,932,102.23

Non-

current

liabilities

1,972,407,333.34 104,863,997.42 2,502,181,229.07 103,944,369.75

Total

liabilities 2,126,435,076.59 916,082,693.45 2,675,996,268.94 842,876,471.98

Minority

shareholder

s’ equities

Shareholder

s' equities

attributable

to the

parent

company

107,188,492.55 175,973,523.30 137,371,011.12 182,578,324.24

Net assets

calculated

as per the

shareholdin

g

proportion

53,594,246.28 87,986,761.65 68,685,505.56 91,289,162.12

Adjusted

items 127,831,662.37 2,837,373.37 138,279,990.06 3,229,344.40

- Business

reputation

- Profits

unrealized

in internal

transaction

-7,351,626.69 -4,348,686.51


281 / 329

- Others 127,831,662.37 10,189,000.06 138,279,990.06 7,578,030.91

Book value

of equity

investment

in joint

venture

181,425,908.64 90,824,135.02 206,965,495.62 94,518,506.52

Fair value

of equity

investment

in joint

venture

with public

offer

Operating

income 26,145,955.53

Financial

expenses 21,861,146.12 -4,846,272.77

Income tax

expenses

Net profit -53,706,825.42 -7,684,242.66

Net profit

from

discontinui

ng

operation

Other

comprehens

ive incomes

Total

comprehens

ive income

-53,706,825.42 -7,684,242.66

Dividends

received

from joint

ventures

this year


282 / 329

(3). Main financial information of major affiliated company




current period


the previous period

SDIC Finance Co.,

Ltd.

Jiangxi Ganneng

Co., Ltd.

SDIC Finance Co.,

Ltd.

Jiangxi Ganneng

Co., Ltd.

Current assets 8,572,430,833.27 1,766,724,557.52 8,659,676,449.18 1,566,054,479.94

Non-current

assets 23,334,811,829.76 6,480,481,722.55 23,147,876,600.54 5,816,949,465.51

Total assets 31,907,242,663.03 8,247,206,280.07 31,807,553,049.72 7,383,003,945.45

Current

liabilities 24,531,061,729.68 2,194,610,907.35 24,332,492,670.68 1,773,162,581.04

Non-current

liabilities 98,318,700.51 1,681,237,414.99 8,580,402.31 1,180,061,376.18

Total liabilities 24,629,380,430.19 3,875,848,322.34 24,341,073,072.99 2,953,223,957.22

Minority

shareholders’

equities

33,689,468.35 33,688,989.19

Shareholders'

equities

attributable to

the parent

company

7,277,862,232.84 4,337,668,489.38 7,466,479,976.73 4,396,090,999.04

Net assets

calculated as

per the

shareholding

proportion

2,576,363,230.43 1,462,661,814.62 2,643,133,911.76 1,482,361,884.88

Adjusted items 548,791,390.89 548,791,390.89

- Business

reputation

- Profits

unrealized in


283 / 329

internal

transaction

- Others 548,791,390.89 548,791,390.89

Book value of

equity

investment in

affiliated

company

2,576,363,230.43 2,011,453,205.51 2,643,133,911.76 2,031,153,275.77

Fair value of

equity

investment in

affiliated

company with

public offer

1,645,000,000.00 2,335,900,000.00

Operating

income 459,650,749.98 1,374,294,770.36 11,533,612.69 1,158,486,024.54

Net profit 209,389,753.43 38,578,760.51 233,997,901.38 108,343,785.65

Net profit from

discontinuing

operation

Other

comprehensive

incomes

31,890,702.30

Total

comprehensive

income

241,280,455.73 38,578,760.51 233,997,901.38 108,343,785.65

Dividends

received from

affiliated

company this

year

118,797,334.40 32,900,000.00 129,700,358.42 32,900,000.00


current period


the previous period

Lestari Listrik Pte.

Ltd

Grandblue

Environment Co.,

Ltd.

Lestari Listrik Pte.

Ltd 瀚蓝环境股份有限

公司

Current assets 1,623,312,131.98 4,992,404,727.10 1,950,578,935.66 3,710,531,127.83


284 / 329

Non-current

assets 6,346,880,862.28 22,486,158,635.93 5,688,693,930.34 21,218,379,422.52

Total assets 7,970,192,994.26 27,478,563,363.03 7,639,272,866.00 24,928,910,550.35

Current

liabilities 472,596,975.84 7,947,111,039.15 534,255,967.14 7,793,238,858.29

Non-current

liabilities 5,869,910,683.76 9,991,371,082.23 5,546,618,774.17 8,965,198,170.16


Minority

shareholders’

equities

67,674,014.98 608,459,994.45 72,721,445.98 612,995,438.86

Shareholders'

equities

attributable to

the parent

company

1,560,011,319.68 8,931,621,247.20 1,485,676,678.71 7,557,478,083.04

Net assets

calculated as

per the

shareholding

proportion

656,920,766.72 723,148,714.28 625,563,479.37 650,713,977.91

Adjusted items 433,446,440.91 414,928,591.88 469,377,654.55 414,928,591.88

- Business

reputation

- Profits

unrealized in

internal

transaction

- Others 433,446,440.91 414,928,591.88 469,377,654.55 414,928,591.88

Book value of

equity

investment in

affiliated

company

1,090,367,207.63 1,138,077,306.16 1,094,941,133.92 1,065,642,569.79

Fair value of

equity 1,438,456,456.17 1,637,820,315.63


285 / 329

investment in

affiliated

company with

public offer

Operating

income 705,775,999.11 4,551,022,685.73 789,274,559.81 3,136,354,596.60

Net profit 23,674,666.68 628,445,774.57 131,529,202.20 456,993,370.51

Net profit from

discontinuing

operation

Other

comprehensive

incomes

Total

comprehensive

income

23,674,666.68 628,445,774.57 131,529,202.20 456,993,370.51

Dividends

received from

affiliated

company this

year

18,839,394.14 25,013,487.26 14,523,195.06


current period


the previous period

Beatrice Offshore

Windfarm Hold co

Limited

Tongshan CR

Power Co., Ltd.

Beatrice Offshore

Windfarm Hold co

Limited

Tongshan CR

Power Co., Ltd.

Current assets 1,265,697,767.49 754,104,529.64 1,286,388,502.11 761,963,536.25

Non-current

assets 21,553,093,980.07 3,019,357,409.26 21,310,047,799.52 3,206,242,112.32

Total assets 22,818,791,747.56 3,773,461,938.90 22,596,436,301.63 3,968,205,648.57

Current

liabilities 149,606,453.43 1,481,442,456.24 129,859,862.38 1,586,566,098.87

Non-current

liabilities 23,208,099,690.54 22,305,641.51 22,963,273,855.74 64,977,575.85


286 / 329


Minority

shareholders’

equities

Shareholders'

equities

attributable to

the parent

company

-538,914,396.41 2,269,713,841.15 -496,697,416.49 2,316,661,973.85

Net assets

calculated as

per the

shareholding

proportion

-134,728,599.10 476,639,906.64 -124,174,354.12 486,499,014.51

Adjusted items 1,047,425,682.40 -1,538,341.76 1,052,321,474.09 -1,538,341.76

- Business

reputation

- Profits

unrealized in

internal

transaction

- Others 1,047,425,682.40 -1,538,341.76 1,052,321,474.09 -1,538,341.76

Book value of

equity

investment in

affiliated

company

912,697,083.30 475,101,564.88 928,147,119.97 484,960,672.75

Fair value of

equity

investment in

affiliated

company with

public offer

Operating

income 1,470,849,856.78 292,618,657.98 1,522,869,067.61 1,402,591,433.20

Net profit 323,763,008.94 -12,654,859.57 542,078,786.04 148,820,533.34


287 / 329

Net profit from

discontinuing

operation

Other

comprehensive

incomes

600,856,519.90 -611,818,759.42

Total

comprehensive

income

924,619,528.84 -12,654,859.57 -69,739,973.38 148,820,533.34

Dividends

received from

affiliated

company this

year


current period


the previous period

Jiangsu Ligang

Electric Power Co.

Ltd.

Xuzhou CR Power

Co., Ltd.

Jiangsu Ligang

Electric Power Co.

Ltd.

Xuzhou CR Power

Co., Ltd.

Current assets 703,808,884.29 805,263,125.48 687,122,587.86 739,539,007.05

Non-current

assets 1,534,282,237.72 1,420,649,358.94 1,638,168,178.87 1,480,192,899.64

Total assets 2,238,091,122.01 2,225,912,484.42 2,325,290,766.73 2,219,731,906.69

Current

liabilities 283,281,854.18 936,020,607.50 89,284,887.32 937,947,570.09

Non-current

liabilities 32,085,750.34 59,825,906.51 32,557,188.98 60,669,333.57

Total

liabilities 315,367,604.52 995,846,514.01 121,842,076.30 998,616,903.66

Minority

shareholders’

equities

4,214,529.14 5,866,582.62

Shareholders'

equities 1,922,723,517.49 1,225,851,441.27 2,203,448,690.43 1,215,248,420.41


288 / 329

attributable to

the parent

company

Net assets

calculated as

per the

shareholding

proportion

335,899,798.51 367,755,432.38 384,942,486.22 364,574,526.12

Adjusted items 17,787,227.96 -6,208,291.56 17,787,227.96 -6,208,291.56

- Business

reputation

- Profits

unrealized in

internal

transaction

- Others 17,787,227.96 -6,208,291.56 17,787,227.96 -6,208,291.56

Book value of

equity

investment in

affiliated

company

353,687,026.47 361,547,140.82 402,729,714.18 358,366,234.56

Fair value of

equity

investment in

affiliated

company with

public offer

Operating

income 1,527,885,983.16 1,121,236,112.39 1,024,794,033.89 754,047,347.11

Net profit -78,470,359.23 8,950,967.38 35,297,403.24 43,745,772.84

Net profit

from

discontinuing

operation

Other

comprehensiv

e incomes

Total

comprehensiv

e income

-78,470,359.23 8,950,967.38 35,297,403.24 43,745,772.84


289 / 329

Dividends

received from

affiliated

company this

year

38,308,005.73

Ending balance/ amount

incurred in the current

period

Beginning balance/

amount incurred in the

previous period


Generation Co. Ltd.


Generation Co. Ltd.

Current assets 1,433,075,634.96 1,385,974,095.84

Non-current assets 7,233,093,389.35 7,533,704,700.91

Total assets 8,666,169,024.31 8,919,678,796.75

Current liabilities 2,808,465,762.35 2,709,097,582.09

Non-current liabilities 2,239,240,765.48 2,207,386,716.40


Minority shareholders’ equities 173,218,021.55 165,935,305.34

Shareholders' equities attributable to the

parent company

3,445,244,474.93 3,837,259,192.92

Net assets calculated as per the

shareholding proportion

315,928,918.35 351,876,667.99

Adjusted items -23,005,992.39 -23,005,992.39

- Business reputation

- Profits unrealized in internal transaction

- Others -23,005,992.39 -23,005,992.39

Book value of equity investment in

affiliated company

292,922,925.96 328,870,675.60


290 / 329

Fair value of equity investment in

affiliated company with public offer

Operating income 3,413,143,214.76 2,781,110,956.01

Net profit 148,202,578.99 369,678,317.90

Net profit from discontinuing operation

Other comprehensive incomes

Total comprehensive income 148,202,578.99 369,678,317.90

Dividends received from affiliated

company this year

54,314,416.06

(4). Financial information summary of insignificant joint ventures and affiliated companies



Ending balance/ amount

incurred in the current

period

Beginning balance/

amount incurred in the

previous period

Joint venture:

Affiliated company:

Fujian Sanchuan Offshore Wind Power Co.,

Ltd.

259,497,980.84 206,717,814.78

Baiyin Daxia Electric Power Co., Ltd. 35,011,719.00 33,245,968.46

Xiamen Haicang Thermal Energy

Investment Co., Ltd.

24,541,626.40 23,381,090.27

Xiamen Haihua Electric Power Technology

Co., Ltd.

19,685,214.78 19,894,363.02

Hainan Holdings Smart Energy Co., Ltd. 11,256,894.15 11,619,933.39

Lanzhou New District Vocational Education

Park Power Distribution&Sales Co., Ltd.

2,458,637.19 2,458,637.19

Total book value of investment 352,452,072.36 297,317,807.11

Total amount of following items calculated as per shareholding ratio

- Net profit 19,338,226.59 1,537,580.53


291 / 329

- Other comprehensive incomes

-Total comprehensive income 19,338,226.59 1,537,580.53

(5). Notes to significant restrictions on ability of joint venture or affiliated company to transfer

capital to the Company


(6). Excess loss incurred by joint venture or affiliated company


(7). Unrecognized commitments relating to investments in joint ventures


(8). Contingent liabilities relating to investments in joint ventures or affiliated companies


4. Significant joint operations


5. Equities in the structured entities that are not incorporated in the consolidated financial

statements

Relevant notes to structured entities not incorporated in the consolidated financial statements


6. Others


X. Risks relating to financial instruments


During operation, the Company may encounter various financial risks, such as credit risk, market risk and

liquidity risk. The Board of Directors of the Company is fully responsible for the determination of risk

management objectives and policies, and bears the final responsibility for risk management objectives and

policies. However, the Board of Directors has authorized the audit department of the Company to design

and implement the program that can ensure the effective execution of risk management objectives and

policies. Through the monthly report submitted by the audit director, the Board of Directors reviews the

effectiveness of the executed program and the rationality of risk management objectives and policies. The

internal auditor of the Company will also audit the risk management policies and programs and report the

findings, if any, to the audit committee.

The overall risk management objective of the Company is to formulate the risk management policies that

can minimize the risks as much as possible under the condition that the competitiveness and strain capacity

of the Company are not affected excessively.

1. Credit risk

The largest credit risk on financial assets of the Company is the book value of bank deposits, accounts

receivable, other receivables, short-term entrusted loans and long-term entrusted loans included in the

statements of financial condition. The bank deposits of the Company are mostly saved in several large


292 / 329

state-owned banks and one non-bank financial agency which is an affiliated party of the Company. As

these state-owned banks are supported strongly by the state and the Company has directors in the

affiliated non-bank financial agency, the directors believe that there is no significant credit risk on such

assets. For the accounts receivable arising from the sale of electric power, most power plants of the

Company sell their electric power to single customer (power grid company) located in the province or

region where the power plant is located. The Company communicates with each power grid company

regularly and ensures that the accounts receivable can be recovered in full. On June 30, 2021, the total

arrears of top five debtors was RMB 4,894,534,748.48 Yuan (RMB 3,756,111,055.38 Yuan in 2020),

accounting for 50.17% of total accounts receivable (50.08% in 2020). In addition to the accounts

receivable, the Company has no significant centralized credit risk. Other receivables, short-term

entrusted loans and long-term entrusted loans mainly include the accounts receivable from the affiliated

party. The Company evaluates the credit risk by regularly checking the operating results and asset-

liability ratio of the affiliated party.

2. Liquidity risk

The prudent circulating capital risk management is to maintain enough cash and cash equivalents, make

ready the capital by using the sufficient quota of committed credit financing and be capable of settling

the market position. Considering the change in basic business, the Company maintains the capital

flexibility by using the committed credit quota. The Company monitors the estimate of accumulated

circulating capital reserve at the end of each month, including the undrawn credit quota and the available

cash and cash equivalents, to meet the demand for debt repayment.

3. Market risk

The market risk of financial instruments refers to the risks of the fluctuation in fair value of financial

instruments or in future cash flow due to change in market price, including the exchange rate risk,

interest rate risk and other price risk.

(1) Interest rate risk

The interest rate risk means the risk of the fluctuation in fair value of financial instruments or in future

cash flow due to change in market interest rate. The interest-bearing financial instruments with fixed

interest rate and floating interest rate can cause the interest rate risks respectively on fair value and cash

flow to the Company. The Company determines the proportions of instruments with fixed and floating

interest rates according to the market environment, and maintains the suitable combination of

instruments with fixed and floating interest rates through the periodic review and supervision. When

necessary, the Company can offset the interest rate risk with the interest-rate swap instruments.

(2) Exchange rate risk

The exchange rate risk refers to the risk caused by the foreign-currency business implemented by the

Company due to change in exchange rate. The foreign exchange risks of the Company are mainly from

the borrowings and deposits in pound, THB and Hong Kong dollar. The Company pays close attention

to the changes in exchange rates on the international foreign exchange market, and considers the impact

of exchange rate when financing with foreign-currency loan and investing with foreign-currency deposit.

The Company continuously monitors the foreign-currency transactions and the scale of foreign-currency

assets and liabilities to minimize the possible foreign exchange risks.

The equivalent RMB amounts of foreign-currency financial assets and liabilities at end of the period are

listed below:


293 / 329

Item USD THB EUR GBP HKD Total

Monetary capital 1,075,528,843.13 80,407,700.67 6,085,052.81 540,512,110.29 1,702,533,706.90

Accounts receivable 25,998,851.89 24,180,569.35 50,179,421.24

Other receivables 1,122,108.49 8,426,336.64 9,548,445.13

Long-term

receivables 851,782,904.70 851,782,904.70

Short-term

borrowings 18,215,177.42 18,215,177.42

Accounts payable 3,000,594.61 9,008,558.02 12,009,152.63

Other payables 3,626,958.13 55,617,541.73 15,652,256.88 74,896,756.74

Long-term

borrowings 161,755,883.92 3,106,209,130.81 3,267,965,014.73

Long-term payables 57,972,937.40 57,972,937.40

Total 1,295,257,664.45 114,156,213.79 6,085,052.81 4,613,952,328.96 15,652,256.88 6,045,103,516.89

(3) Other price risks

The Company holds the convertible corporate bonds of 790,000 shares of Zhongmin Energy and 5,642,900 shares of ST Yunwei; the Management think that the

market price risks on those investment activities are acceptable.

The equity investments in listed companies held by the Company are listed below:




294 / 329

Total 132,515,544.60 946,213,699.15

On June 30, 2021, under the condition that all the other variables remain the same, the net profit of the Company will increase or decrease by RMB 6.6258 million

Yuan if the value of equity instrument increases or decreases by 5%. The Management think that 5% reasonably reflects the reasonable range of possible change in

value of equity instrument in next year.


295 / 329

XI. Disclosure of fair value

1. Ending fair value of assets and liabilities measured at fair value



Item

Ending fair value

Measurement of

1st-level fair value

Measurement of

2nd-level fair

value

Measurement of

3rd-level fair value Total

I. Continuous

measurement of fair value

(I) Trading financial assets 226,396,044.60 226,396,044.60

1. Financial assets measured

at fair value and with change

included in current profits or

losses

13,768,590.60 13,768,590.60

(1) Investments in equity

instruments 13,768,590.60 13,768,590.60

2. Financial assets

designated to be measured at

fair value and with change

included in current profits or

losses

212,627,454.00 212,627,454.00

(1) Investments in debt

instruments 118,746,954.00 118,746,954.00

(2) Others 93,880,500.00 93,880,500.00

(II) Accounts receivable

financing 189,719,611.89 189,719,611.89

(III) Investments in other

equity instruments 148,939,847.79 148,939,847.79

Total amount of assets

measured continuously at

fair value

226,396,044.60 189,719,611.89 148,939,847.79 565,055,504.28

2. Basis for determination of market price of continuous and discontinuous 1st-level fair value

measuring items


The Company holds 5,642,865 A-shares (stock code: ST Yunwei 600725), and their market price is

measured based on the public offer on the security market.


296 / 329

.

The Company holds the convertible corporate bonds (referred as “ZMD02”, stock code: 110806) of

790,000 shares of Zhongmin Energy, and their market price is measured based on the public offer on the

security market.

3. Valuation technology and Qualitative& quantitative information of important parameters

adopted for continuous and discontinuous 2nd-level fair value measuring items


Item Ending fair value Valuation

technology

Important parameters

Qualitative

information

Quantitative

information

Accounts

receivable

financing

189,719,611.89 Discount cash

flow method Discount rate 1.95%-2.99%

4. Valuation technology and Qualitative& quantitative information of important parameters

adopted for continuous and discontinuous 3rd-level fair value measuring items


Item Ending fair value Valuation

technology

Non-observable

input value

Range (wed

average)

Investment in

other equity

instruments

148,939,847.79

Discount cash

flow method

Weighted average

cost of capital 7.34%-10.80%

Long-term

income growth

rate

1.27%-23.78%

Listed companies

comparison

method

Liquidity discount 36.8%


297 / 329

5. Adjustment information between the beginning and ending book values and the sensitive analysis of non-observable parameters of continuous and

discontinuous 3rd-level fair value measuring items


Item

Balance at

end of last

year

Convert

ed into

the 3rd-

level

Converte

d out

from the

3rd-level

Total profit or loss in

the current period Purchase, issue, sale and settlement

Ending balance

For the assets

held at end of

report period,

unrealized profit

or loss in the

current period

included in

profits and

losses

Include

d in

profits

and

losses

Included in

other

comprehensi

ve incomes

Purchase Issue Sale Settle

ment

Investment

in other

equity

instruments

137,904,321.8

1 11,035,525.98 148,939,847.79

Total 137,904,321.8

1 11,035,525.98 148,939,847.79

6. Reason for conversion and policy for conversion time determination for the convention of continuous fair value measuring items between different levels

in the current period


7. Change in valuation technology in the current period and reasons



298 / 329

8. Fair values of financial assets and liabilities not measured at fair value


9. Others



299 / 329

XII. Affiliated party and affiliated transaction

1. Information of parent company


Monetary unit: RMB 10,000 Yuan

Name of

parent

company

Registered

address

Business

nature

Registered

capital

Shareholding

proportion of

parent company

(%)

Voting right

proportion of

parent company

(%)

State

Developmen

t &

Investment

Group Co.,

Ltd.

Beijing Investment 3,380,000.00 47.91 47.91

The ultimate controlling party of the Company is the State-owned Assets Supervision and

Administration Commission of the State Council.

2. Information of subsidiaries of the Company


See “Note IX. Equities in other entities” for the information of subsidiaries of the Company.

3. Information of joint ventures and affiliated companies


See “Note IX. Equities in other entities” for the information of significant joint ventures or affiliated

companies of the Company.

Other joint ventures or affiliated businesses which have affiliated transactions with the Company in the

current period or whose affiliated transactions with the Company in the previous period have balance are

detailed below:


Name of joint venture or affiliated company Relation with the Company

SDIC Finance Co., Ltd. Affiliated company

Xiamen Haicang Thermal Energy Investment Co., Ltd. Affiliated company

Lestari Listrik Pte. LTD Affiliated company

Inch Cape Offshore(Holdings)Ltd Affiliated company

Inch Cape Offshore Limited Joint venture


300 / 329

Cloud Wind Farm Holdings AB Joint venture

Cloud Snurran AB Affiliated company

Beatrice Offshore Windfarm Holdco Limited Affiliated company

Other notes


4. Information of other affiliated parties


Name of other affiliated party Relation between other affiliated party and the

Company

Beijing Yahua Real Estate Development

Co., Ltd.

Wholly-owned subsidiary of parent company

SDIC High-tech Investment Co., Ltd. Wholly-owned subsidiary of parent company

SDIC Qinzhou Port Co., Ltd. Wholly-owned subsidiary of parent company

SDIC Human Resource Service Co., Ltd. Wholly-owned subsidiary of parent company

SDIC Financing Lease (Hainan) Co., Ltd. Wholly-owned subsidiary of parent company

Beijing No.1 Branch of SDIC Property



SDIC Intelligence Co. Ltd. Wholly-owned subsidiary of parent company

Rongshi International Treasury



Rongshi International Holding Company

Limited


China Electronics Engineering Design

Institute Ltd.


Beijing Shiyuan Xida Engineering

Technology Co., Ltd.


SDIC Finance Co., Ltd. Holding subsidiary of parent company

China National Investment Consulting Co.,

Ltd.

Holding subsidiary of parent company

China National Investment and Guaranty

Corporation

Holding subsidiary of parent company

Xiamen Meiya Pico Information Co., Ltd. Holding subsidiary of parent company


301 / 329

SDIC Financing Lease (Hainan) Co., Ltd. Holding subsidiary of parent company

5. Information of affiliated transactions

(1). Affiliated transactions relating to the purchase and sale of goods and the provision and receiving

of labor service

List of purchase of goods/ receiving of service



Affiliated party Content of affiliated

transaction

Amount

incurred in the

current period

Amount incurred

in the previous

period

SDIC Meizhouwan Port Co., Ltd. Port operation 79,707,875.38 61,734,908.00

SDIC Qinzhou Port Co., Ltd. Port operation 4,422,930.96 9,738,136.96

Beijing No.1 Branch of SDIC Property

Management Co., Ltd. Property fee 2,602,277.80

SDIC Intelligence Co. Ltd. Purchase of software and

office equipment 1,246,524.64 1,305,432.83

SDIC Human Resource Service Co., Ltd. Outsourcing of labor

service and human

resource affairs

791,373.34

Xiamen Meiya Pico Information Co., Ltd. Information system

running fee 410,943.39

China National Investment Consulting

Co., Ltd.

Purchase of bidding agent

and labor service 88,000.00 266,350.94

Beijing Zhongcheng Haida Import &

Export Co., Ltd.

Purchase of masks and

labour protection

appliances

212,389.38

List of sales of goods and provision of labor service



Affiliated party Content of affiliated

transaction

Amount incurred

in the current

period

Amount incurred

in the previous

period

Xiamen Haicang Thermal Energy


Sales of heating power 10,971,103.56 7,583,318.45

SDIC Qinzhou Port Co., Ltd. Sale of electricity 27,782,962.69 1,894,331.88


302 / 329

Notes to affiliated transactions relating to the purchase and sale of goods and the provision and receiving

of labor service


(2). Affiliated entrusted management/ contracting and consigned management/ outsourcing

List of entrusted management/ contracting of the Company:



Name of entrusting

party/outsourcing

party

Name of

trustee/contra

ctor

Type of

entrusted/co

ntracted

asset

Starting

date of

entrusting/

contracting

Expiration

date of

entrusting/c

ontracting

Basis for

pricing of

trusteeship

income/contra

cting income

Trusteeship

income/contra

cting income

recognized in

the current

period

Inch Cape Offshore

Limited Holdings

Redrock

Power

Limited

Other assets

trusteeship 2020/11/5 / Agreed price 14,743,253.28

Note to affiliated trusteeship/ contracting:


List of consigned management/ outsourcing of the Company


Note to affiliated management/ outsourcing


(3). Affiliated lease

The Company acts as a leaser:


The Company acts as a leasee:



Name of leaser Type of leased assets

Rental expenses

recognized in the current

period

Rental expenses recognized

in the previous period

Beijing Yahua Real

Estate Development Co.,

Ltd.

House leasing 5,971,212.86 5,711,269.82


303 / 329

SDIC Financing Lease

Co., Ltd.

Machine and

equipment, etc. 4,227,328.86 3,284,251.25

Note to affiliated lease


(4). Affiliated guarantee

The Company acts as a guarantor:



Guaranteed party Guaranteed

amount

Starting date of

guarantee

Expiration date of

guarantee

Whether the

guarantee has

been

completed

fully

SDIC Golmud Photovoltaic

Power Co., Ltd. 7,622.16 2010/8/27 2025/8/27 No

SDIC Dunhuang Photovoltaic

Power Co., Ltd. 5,290.00 2012/11/23 2030/11/23 No


Power Co., Ltd. 3,650.00 2012/8/30 2030/8/30 No


Power Co., Ltd. 2,127.00 2011/4/21 2025/8/19 No


Power Co., Ltd. 1,417.00 2010/8/19 2025/8/19 No


Power Co., Ltd. 566.00 2011/3/15 2025/8/19 No

SDIC Shizuishan Photovoltaic

Power Co., Ltd. 6,480.00 2013/12/6 2028/12/6 No


Power Co., Ltd. 1,362.00 2011/4/8 2025/10/20 No


Power Co., Ltd. 492.00 2011/1/19 2025/10/20 No


Power Co., Ltd. 402.50 2010/10/20 2025/10/20 No

Toksun Trina Solar Co., Ltd. 59,050.00 2019/7/20 2030/5/22 No

SDIC New Energy (Honghe)

Co., Ltd. 45,400.00 2018/11/2 2030/11/26 No


304 / 329

Inch Cape Offshore Limited 4,470.50 2016/5/11 2064/10/10 No

The Company acts as the guaranteed party:


Note to affiliated guarantee


A subsidiary of the Company acts as a guaranteed party:


Guaranteed party Guaranteed

amount

Starting date of

guarantee

Expiration

date of

guarantee

Whether the

guarantee has

been

completed

fully

C&G Environment Protection

(Thailand) Company Limited 7,839.18 2017-3-1 2022-3-1 No

Newsky Energy (Thailand)

Company Limited 6,044.24 2017-3-1 2022-3-1 No

Newsky Energy (Bangkok)

Company Limited 5,802.17 2019-5-17 2022-5-6 No

Afton Wind Farm Limited 61,958.00 2019-5-2 2034-5-1 No

Cloud Snurran AB 1,537.24 2020-12-20 2033-12-20 No

(5). Inter-bank lending of affiliated parties



Affiliated party Inter-bank lending

amount Starting date Due date Description

Inter-bank borrowings

State Development &

Investment Group Co., Ltd. 1,152,000,000.00 2016-8-26 2022-8-26

Long-term

borrowings

State Development &

Investment Group Co., Ltd. 1,054,490,000.00 2020-11-13 2023-11-13

Long-term

borrowings

State Development &

Investment Group Co., Ltd. 520,000,000.00 2021-6-28 2024-6-28

Long-term

borrowings


305 / 329

State Development &


Long-term

borrowings

State Development &


Long-term

borrowings

State Development &


Long-term

borrowings

State Development &


Long-term

borrowings

State Development &


Long-term

borrowings

SDIC Finance Co., Ltd. 700,000,000.00 2017-5-10 2022-5-9

Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


306 / 329


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


307 / 329


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings

SDIC Finance Co., Ltd. 789,300.00 2017-2-24 2031-12-16

Long-term

borrowings


Long-term

borrowings


308 / 329


Long-term

borrowings


Long-term

borrowings


Long-term

borrowings


Short-term

borrowings


Short-term

borrowings


Short-term

borrowings


Short-term

borrowings


Short-term

borrowings


Short-term

borrowings


Short-term

borrowings


Short-term

borrowings


Short-term

borrowings


Short-term

borrowings


Short-term

borrowings


Short-term

borrowings


Short-term

borrowings


Short-term

borrowings


Short-term

borrowings


309 / 329


Short-term

borrowings


Short-term

borrowings


Short-term

borrowings


Short-term

borrowings


Short-term

borrowings


Short-term

borrowings


Short-term

borrowings


Short-term

borrowings


Short-term

borrowings


Short-term

borrowings


Short-term

borrowings


Short-term

borrowings


Short-term

borrowings


Short-term

borrowings


Short-term

borrowings


Short-term

borrowings


Short-term

borrowings


Short-term

borrowings


310 / 329


Short-term

borrowings


Short-term

borrowings


Short-term

borrowings


Short-term

borrowings


Short-term

borrowings


Short-term

borrowings


Short-term

borrowings


Short-term

borrowings


Short-term

borrowings


Short-term

borrowings


Short-term

borrowings

SDIC Financing Lease Co.,

Ltd. 500,000,000.00 2016-5-23 2021-5-22

Long-term

borrowings


Ltd. 500,000,000.00 2016-6-20 2021-6-16

Long-term

borrowings


Ltd. 190,000,000.00 2018-1-19 2021-1-19

Long-term

borrowings


Ltd. 180,000,000.00 2018-1-23 2021-1-23

Long-term

borrowings


Ltd. 11,666,666.67 2021-03-20 2023-12-15

Long-term

borrowings


Ltd. 8,000,000.00 2020-03-20 2023-1-3

Long-term

borrowings


Management Co., Ltd. 1,304,980,000.00 2019-5-19 2024-5-20

Long-term

borrowings


311 / 329


Management Co., Ltd. 161,502,503.60 2020-3-20 2023-3-21

Long-term

borrowings

Rongshi International Holding

Company Limited 639,835,842.00 2019-7-23 2021-7-23

Long-term

borrowings


Management Co., Ltd. 621,595,571.21 2019-2-25 2023-9-29

Long-term

borrowings

Rongshi International Holding

Company Limited 1,877,610,000.00 2017-8-17 2022-4-20

Long-term

borrowings

(6). Details of asset transfer and debt reorganization of affiliated party


(7). Remuneration of key management staff




period


previous period

Remuneration of key management

staff

268.37 213.50

(8). Other affiliated transactions


6. Accounts receivable and accounts payable of affiliated party

(1). Receivables



Item Affiliated party


Book balance Bad debt

reserve Book balance

Bad debt

reserve

Monetary

capital

SDIC Finance Co., Ltd. 6,222,522,237.40 5,072,692,680.69

Rongshi International

Treasury Management

Co., Ltd.

13,094,460.65

Accounts

receivable

SDIC Qinzhou Port Co.,

Ltd. 440,328.96 1,398,572.82


312 / 329

Xiamen Haicang

Thermal Energy


2,766,465.98

Advance

payments

SDIC Qinzhou Port Co.,

Ltd. 504,000.00

Other

receivables

Inch Cape Offshore

Limited 5,111,088.32 3,207,546.36 4,192.84

Long-term

receivables

Lestari Listrik Pte. LTD 320,983,085.73 327,301,838.18

Cloud Snurran AB 415,347,724.28 424,299,773.76 555,359.78

Inch Cape Offshore

Holidings Limited 395,743,716.64 364,923,613.54 477,643.19

Beatrice Offshore

Windfarm Holdco

Limited

560,907.79

(2). Payables



Item Affiliated party Ending book value Beginning book value

Short-term

borrowings SDIC Finance Co., Ltd. 1,707,190,616.60 1,619,798,332.63

Accounts

payable

SDIC Qinzhou Port Co., Ltd. 14,377,615.51 39,156,929.49

China Electronics Engineering Design

Institute Ltd. 84,198.74

Beijing Shiyuan Xida Engineering

Technology Co., Ltd. 45,000.00

SDIC Meizhouwan Port Co., Ltd. 8,770,450.00

SDIC Intelligence Co., Ltd. 772,744.00

Other payables SDIC High-tech Investment Co., Ltd. 7,412,833.95 7,412,833.95

Non-current

liabilities due

within a year

State Development & Investment Group

Co., Ltd. 690,098,446.12 1,072,045,169.43


Limited 625,523,442.00 1,137,915,118.20

SDIC Financing Lease (Hainan) Co., Ltd. 18,952,075.54


313 / 329

Long-term

borrowings


Management Co., Ltd. 4,607,321,887.00 2,115,811,734.84

SDIC Finance Co., Ltd. 3,214,662,121.06 2,200,400,119.22

State Development & Investment Group

Co., Ltd. 2,680,383,959.23 2,331,424,396.46


Limited 2,461,133,442.00 1,875,405,302.94

China National Investment and Guaranty

Corporation 70,318,164.36 70,344,342.47

SDIC Financing Lease Co., Ltd. 25,833,333.32 1,411,058,676.43

Leasing

liabilities SDIC Financing Lease (Hainan) Co., Ltd. 307,250,534.17 335,721,444.80

SDIC Financing Lease Co., Ltd. 45,500,000.00 24,528,374.88

Long-term

payables SDIC Financing Lease (Hainan) Co., Ltd. 115,964,056.82

SDIC Financing Lease Co., Ltd. 443,133,522.89 201,211,772.43

7. Commitments of affiliated party


8. Others


XIII. Share-based payment

1. General information of share-based payment


2. Share-based payment settled with equity


3. Share-based payment settled with cash


4. Modification or termination of share-based payment


5. Others



314 / 329

XIV. Commitments and contingencies

1. Major commitments


2. Contingencies

(1). Major contingencies existing on the date of balance sheet


(2). Notes to be made even if the Company has no major contingencies to be disclosed:


3. Others


XV. Events after the date of balance sheet

1. Major non-adjusting events



Item Content

Impact on financial

condition and

operating result

Cause for failure to

estimate the impact

Significant outward

investment

Jiangsu Tiansai New

Energy Development

Co., Ltd.

151,200,000.00

Significant outward

investment

Changzhou Tiansui

New Energy Co., Ltd. 41,000,000.00

Notes:

(1) As approved on the 84thGeneral Manager’s Office Meeting of SDIC Power held on June 15, 2021,

the Company acquired 90% of stock equity of Jiangsu Tiansai New Energy Development Co., Ltd. at

RMB 151.2 million Yuan. As at June 30, 2021, the transfer of control right has not completed.

(2)As approved on the 84thGeneral Manager’s Office Meeting of SDIC Power held on June 15, 2021,

the Company was approved to acquire 100% of stock equity of Changzhou Tiansui New Energy Co.,

Ltd. at RMB 41 million Yuan. On June 22, 2021, the Company signed the equity transfer agreement. As

at June 30, 2021, the transfer of control right has not completed.

2. Profit distribution


3. Sale return


4. Note to other affairs after the date of balance sheet



315 / 329

XVI. Other major affairs

1. Correction of previous accounting errors

(1). Retroactive restatement method


(2). Prospective application method


2. Debt reorganization


3. Asset exchange

(1). Exchange of non-monetary assets


(2). Exchange of other assets


4. Annuity plan


5. Discontinuing operation


6. Segment information

(1). Determination basis and accounting policies of reporting segment


(2). Financial information of reporting segment


(3). Reason for no reporting segment or being unable to disclose the total assets and liabilities of

every reporting segment


(4). Other notes


7. Significant transactions and affairs affecting the decisions of other investors


8. Others


XVII. Notes to main items in the financial statements of parent company


(1). Disclosure based on account age


(2). Classified disclosure based on bad debt provision method



316 / 329

(3). Details of bad debt reserves


Including: the bad debt reserves with significant recovered or taken-back amount in the current period:


(4). Accounts receivable actually written off in the current period


(5). Accounts receivable from top five debtors in respect of ending balance


(6). Accounts receivable derecognized due to transfer of financial assets


(7). Amount of assets and liabilities established by transfer and further involvement of accounts

receivable


Other notes:



Presentation





Dividends receivable 1,994,438,340.76 109,255,639.65


Total 2,185,763,465.11 299,921,822.54

Other notes:



(1). Classification of interests receivable


(2). Significant overdue interest


(3). Provision of bad debt reserve



317 / 329

Other notes:



(1). Dividends receivable



Project (or investee) Ending balance Beginning balance



1,820,000,000.00


Ltd.

19,006,177.56 19,006,177.56

SDIC New Energy (Honghe) Co., Ltd. 33,015,520.78


Co., Ltd.

90,249,462.09

SDIC Panjiang Electric Power Co.,

Ltd.

23,650,000.00

Grandblue Environment Co., Ltd. 14,523,195.00

Jiangsu Ligang Electric Power Co.,

Ltd.

35,333,915.95

Jiangyin Ligang Power Generation

Co., Ltd.

48,909,531.47

Total 1,994,438,340.76 109,255,639.65

(2). Significant dividends receivable aged over 1 year



Project (or investee) Ending balance Age Reason for

recovery failure

Impairment and

judgement basis

SDIC New Energy Investment

Co., Ltd. 19,006,177.56 2-3 years Unpaid

No

Total 19,006,177.56 / / /




318 / 329

Other notes:


Other receivables

(1). Disclosure based on account age

□ Applicable □ Inapplicable


Age Ending book balance

Within 1 year

Including: sub-items within 1 year

Within 6 months (inclusive) 86,728,997.99

6 months - 1 year (inclusive) 19,463,634.44

Subtotal of sub-items within 1 year 106,192,632.43

1-2 years 33,954,616.33

2-3 years 20,567,245.07

Over 3 years

3-4 years 17,013,279.06

4-5 years 18,970,971.47

Over 5 years 31,921,336.35

Total 228,620,080.71

(2). Classification based on nature of accounts



Nature Ending book balance Beginning book balance

Previous advance payment of

project

148,900,214.22 143,864,510.41

Money for standby letter of

credit

46,780,743.93 46,780,743.93

Others 32,939,122.56 33,667,674.23

Total 228,620,080.71 224,312,928.57


319 / 329




Bad debt reserve


Total Expected

credit loss in

the following

12 months


in the whole

duration (without

credit impairment)


in the whole

duration (with

credit impairment)

Balance on Jan. 1,

2020 105,163.41 2,269,245.92 31,272,336.35 33,646,745.68

Balance on Jan. 1,

2020 in the current

period

105,163.41 2,269,245.92 31,272,336.35 33,646,745.68

- Transfer to the 2nd

stage

- Transfer to the 3rd

stage

- Back to the 2nd

stage

- Back to the 1st stage

Provision in the

current period 3,649,166.32 3,649,166.32

Recovery in the

current period 955.64 955.64

Offset in the current

period

Write-off in the

current period

Other change

Balance on June 30,

2021 104,207.77 5,918,412.24 31,272,336.35 37,294,956.36

Notes to significant change in book balance of other receivables with change in loss reserve in the current

period:


Basis for the provision of bad debt reserve and the assessment of significant increase in credit risk of

financial instruments:


320 / 329


(4). Details of bad debt reserves



Type Beginning

balance

Change in this period

Ending balance

Provision

Recovery

or take-

back

Offset or

write-off

Other

change

Provision of

bad debt

based on

single item

33,646,745.68 3,649,166.3

2 955.64 37,294,956.36

Total 33,646,745.68 3,649,166.3

2 955.64 37,294,956.36

Including: bad debt reserves with significant taken-back or recovered amount in the current period:


(5). Other receivables actually written off in the current period


Note to write-off of other receivables:


(6). Other receivables from top five debtors in respect of ending balance



Name of

company

Nature of

money Ending balance Age

Proportion of

total ending

balance of other

receivables (%)

Ending balance

of bad debt

reserve

Preliminary

expense of

Qinzhou Phase

III project

Preliminary

expense of

project

99,000,000.00 Within 1

year 43.30 1,218,535.96

Redrock

Investment

Limited

Expense of

standby

letter of

credit

46,780,743.93 1-5 years 20.46 61,150.59


321 / 329

Hangjin Qi

Energy Bureau

Project

performance

bond

30,000,000.00 1-2 years 13.12 39,215.23

Preliminary

expense of

Myanmar Nam

Lwe Project

Preliminary

expense of

project

24,703,055.01 Over 5 years 10.81 24,703,055.01

Preliminary

expense of

Liupanshui

Power Plant

Project

Preliminary

expense of

project

8,880,200.00 Over 2 years 3.88 3,674,071.68

Total / 209,363,998.94 / 91.57 29,696,028.47

(7). Accounts receivable involving government subsidies


(8). Other receivables derecognized due to transfer of financial assets


(9). Amount of assets and liabilities established by transfer and further involvement of other

receivables


Other notes:



322 / 329

3. Long-term equity investments



Item


Book balance Impairment

reserve Book value Book balance Impairment reserve Book value

Investments in subsidiaries 36,601,781,513.82 36,601,781,513.82 35,923,621,313.82 35,923,621,313.82

Investments in affiliated companies

and joint ventures 4,644,046,063.95 4,644,046,063.95 4,683,343,076.04 4,683,343,076.04

Total 41,245,827,577.77 41,245,827,577.77 40,606,964,389.86 40,606,964,389.86

(1) Investments in subsidiaries



Investee Beginning

balance

Increase in the

current period

Decrease in the


Provision of

impairment

reserve in the

current period

Ending balance

of impairment

reserve

Yalong River Hydropower Development

Co., Ltd.

22,243,077,741.

92

22,243,077,741

.92

SDIC Dachaoshan Hydropower Co., Ltd. 2,716,163,606.6

5

2,716,163,606.

65


323 / 329

Tianjin SDIC Jinneng Electric Power Co.,

Ltd.

2,389,336,617.4

6

2,389,336,617.

46

SDIC Genting Meizhouwan Electric Power

Co., Ltd.

1,637,490,000.0

0

1,637,490,000.

00

SDIC Qinzhou Electric Power Co., Ltd. 1,353,960,836.5

9

1,353,960,836.

59

SDIC New Energy Investment Co., Ltd. 1,241,000,000.0

0

1,241,000,000.

00

Xiamen Huaxia International Power

Development Co., Ltd. 662,562,474.52 662,562,474.52

SDIC Xiaosanxia Power Generation Co.,

Ltd. 657,470,034.43 657,470,034.43

SDIC New Energy (Honghe) Co., Ltd. 539,678,000.00 539,678,000.00

Toksun Trina Solar Co., Ltd. 446,732,488.20 446,732,488.20

Xiangshui Hengneng Solar Power

Generation Co., Ltd. 438,000,000.00 438,000,000.00

SDIC Huanneng Electric Power Co., Ltd. 413,000,000.00 413,000,000.00

SDIC Panjiang Electric Power Co., Ltd. 283,794,500.00 283,794,500.00

Huzhou Xianghui Photovoltaic Power Co.,

Ltd. 177,000,000.00 177,000,000.00

Dingbian County Only Photovoltaic

Technology Co., Ltd. 155,580,000.00 155,580,000.00


324 / 329

Xiangshui Yongneng Solar Power

Generation Co., Ltd. 100,000,000.00 100,000,000.00

Shenyang Jingbu Photovoltaic Power Co.,

Ltd. 95,000,000.00 95,000,000.00

Jingbian County Zhiguang New Energy

Development Co., Ltd. 82,000,000.00 82,000,000.00

SDIC Gansu Electricity Sales Co., Ltd. 71,500,000.00 71,500,000.00

Guyuan County Guanghui New Energy

Power Generation Co., Ltd. 63,000,000.00 63,000,000.00

SDIC KingRock Overseas Investment

Management Co., Ltd. 50,000,000.00 50,000,000.00

Zhangjiakou Jinko New Energy Co., Ltd. 40,000,000.00 40,000,000.00

SDIC Inner Mongolia New Energy Co., Ltd. 25,000,000.00 75,000,000.00 100,000,000.00

SDIC Jiangsu New Energy Co., Ltd. 20,000,000.00 20,000,000.00

SDIC New Energy Co., Ltd. 20,000,000.00 20,000,000.00

SDIC Aksay New Energy Co., Ltd. 2,275,000.00 2,275,000.00

Redrock Investment Limited 9.45 412,360,200.00 412,360,209.45

Jaderock Investment Pte. Ltd. 4.60 4.60

Hengfeng County Jinko Electric Power Co.,

Ltd. 158,400,000.00 158,400,000.00


325 / 329

Yancheng Zhihui Energy Power Co., Ltd. 16,200,000.00 16,200,000.00

Hainan Dongfang Gaopai Wind Power Co.,

Ltd. 16,200,000.00 16,200,000.00

Total 35,923,621,313.

82 678,160,200.00

36,601,781,513

.82

(2) Investments in affiliated companies and joint ventures



Investment unit Beginning

balance

Increase or decrease in the current period

Ending

balance

Ending

balance of

impairment

reserve Additional

investment

Negative

investme

nt

Profit or loss

of investment

recognized by

equity method

Adjustment

of other

comprehensiv

e incomes

Other

equity

change

Declared

issuance of

cash dividend

or profit

Provision

of

impairment

reserve

Others

I. Joint ventures

II. Affiliated companies

Jiangxi Ganneng Co.,

Ltd.

2,031,153,2

75.77 13,199,142.54 787.20 32,900,000.00

2,011,453,2

05.51



328,870,675

.60 12,934,180.54 27,601.29 48,909,531.47

292,922,925

.96

Jiangsu Ligang Electric

Power Co., Ltd.

402,729,714

.18

-

13,708,771.76 35,333,915.95

353,687,026

.47

Tongshan CR Power Co.,

Ltd.

484,960,672

.75 -9,859,107.87

475,101,564

.88


326 / 329

Xuzhou CR Power Co.,

Ltd.

358,366,234

.56 3,180,906.26

361,547,140

.82

Grandblue Environment

Co., Ltd.

1,065,642,5

69.79 50,765,761.88

36,192,169.

49 14,523,195.00

1,138,077,3

06.16

Hainan Holdings Smart

Energy Co., Ltd.

11,619,933.

39 -363,039.24

11,256,894.

15

Subtotal 4,683,343,0

76.04 56,149,072.35

36,220,557.

98

131,666,642.4

2

4,644,046,0

63.95

Total 4,683,343,0

76.04 56,149,072.35

36,220,557.

98

131,666,642.4

2

4,644,046,0

63.95

Other notes:



327 / 329

4. Operating incomes and costs

(1). Details of operating incomes and costs



Item

Amount incurred in the current

period


previous period

Incomes Costs Incomes Costs

Main businesses

Other businesses 504,245.28

Total 504,245.28

(2). Incomes arising from contracts


(3). Notes to performance obligations


(4). Notes of apportionment to residual performance obligations


5. Investment incomes



Item Amount incurred in

the current period

Amount incurred in

the previous period

Income from long-term equity investments calculated by

the cost method 3,619,714,783.00 3,167,289,689.51

Income from long-term equity investments calculated by

the equity method 56,149,072.35 152,732,942.10

Investment income from disposal of long-term equity

investments 118,242,888.04

Investment income from trading financial assets in the

holding period 45,283,019.04 24,053,553.05

Dividend income from other equity instrument

investments in the holding period 2,684,685.52 2,931,081.55

Investment income from disposal of trading financial

assets -46,220,000.00


328 / 329

Others 35,544,401.61 43,322,807.63

Total 3,713,155,961.52 3,508,572,961.88

6. Others


XVIII. Supplementary data

1. List of non-recurring profits and losses in the current period



Item Amount

Profit or loss from disposal of non-current assets 1,087,901.47

Government subsidies included in current profits or losses

(excluding the government subsidies with close relation of

corporate business and enjoyed as per the national uniform

standard quota or quantity)

9,030,804.42

Income from the cost of investment for acquisition of

subsidiary, affiliated company or joint venture less than the

fair value of net identifiable assets of investee held upon

investment

89,096,281.49

Profit and loss from the change in fair value of trading

financial assets, derivative financial assets, trading financial

liabilities and derivative financial liabilities held, and

investment profit and loss from the disposal of trading

financial assets, derivative financial assets, trading financial

liabilities, derivative financial liabilities and other credit right

instruments, other than the effective hedging service related to

normal operation of the Company

31,584,864.49

Other non-operating incomes and expenses other than the

above items 10,168,250.02

Other profits and losses meeting the definition of non-

recurring profit and loss

Impact on income tax -4,503,298.59

Impact on minority shareholders’ equities -5,879,842.74

Total 130,584,960.56


329 / 329

Reasons shall be explained if the Company classifies the non-recurring profits and losses defined and

listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering their

Securities to the Public - Non-recurring Profits and Losses as the recurring profits and losses.


2. Net assets income rate and earnings per share


Profits in the report period

Weighted average

income rate of net

assets (%)

Earnings per share

Basic earnings per

share

Diluted earnings per

share

Net profit attributable to

ordinary shareholders of the

Company

5.21 0.3190 0.3190

Net profit attributable to

ordinary shareholders of the

Company after deducting the

non-recurring profit and loss

4.90 0.3002 0.3002

3. Accounting data difference under domestic and foreign accounting standards


4. Others


Chairman of Board of Directors: Zhu Jiwei

Date of submission approved by the Board of Directors:

2021/08/30

Date post:	16-Oct-2021
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SDIC Power Holding Co., Ltd. Semiannual Report of 2021

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