粤电力B:2019年半年度报告(英文版)

                  Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019




GUANGDONG ELECTRIC POWER DEVELOPMENT CO., LTD.

            The Semi-annual Report 2019




                     August 2019




                                                                                          1
                                              Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019




             I. Important Notice, Table of Contents and Definitions

The Board of Directors , Supervisory Committee ,Directors, Supervisors and Senior Executives of the Company
hereby guarantees that there are no misstatement, misleading representation or important omissions in this report
and shall assume joint and several liability for the authenticity, accuracy and completeness of the contents hereof.
Mr.Wang Jin, The Company leader, Mr. Liu Wei, Chief financial officer and the Mr.Meng Fei, the person in
charge of the accounting department (the person in charge of the accounting )hereby confirm the authenticity and
completeness of the financial report enclosed in this semi- annual report.

     Other directors attending the Meeting for the Semi-annual report deliberation except for the followed:

       Name of director absent        Title for absent director     Reasons for absent               Attorney

            Wen Shufei                        Director                Due to business               Wang Jin

            Wen Lianhe                        Director                Due to business            Zheng Yunpeng

            Liang Peilu                       Director                Due to business              Yin Zhongyu

           Mao Qinghan                        Director                Due to business               Sha Qilin

            Ma Xiaoqian                Independent Director           Due to business             Shen Hongtao



This semi-annual report involves the forecasting description such as the future plans, and does not constitute the
actual commitments of the company to the investors. Investors and stakeholders should all maintain sufficient
awareness of risks for this and understand the differences between plans, forecasts and commitments.
The Company is mainly engaged in thermal power generation. The business of thermal power generation is
greatly affected by factors including electric power demand and fuel price. Refer to Section X(4) of Chapter 4 of
this annual report-situation faced and countermeasures for relevant information.
The Company Will not distribute cash dividend or bonus shares, neither capitalizing of common reserves for the
report period.




                                                                                                                       2
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                                          Table of Contents




2019 Semi- Annual Report

I. Important Notice and Definitions

II. Corporate Profile and Key Financial Results

III. Business Profile

IV. Performance Discussion and Analysis

V. Important Events

VI. Change of share capital and shareholding of Principal Shareholders

VII. Situation of the Preferred Shares

VIII. Information about Directors, Supervisors and Senior Executives

IX. Corporate Bonds.

X. Financial Report

XI. Documents available for inspection




                                                                                                                    3
                                             Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019



                                                  Definition
              Terms to be defined          Refers to                               Definition
Guangdong Energy Group                     Refers to Guangdong Energy Group Co., Ltd.
Guangqian Company                          Refers to Shenzhen Guangqian Electric Power Co., Ltd.
Bohe Company                               Refers to Guangdong Yudean Bohe Coal & Electricity Co., Ltd
Dapu Company                               Refers to Guangdong Dapu Power Generation Co., Ltd.
Wind Power Company                         Refers to Guangdong Wind Power Co., Ltd.
Lincang Company                            Refers to Lincang Yudean Energy Co., Ltd.
Qujie Wind Power Company                   Refers to Guangdong Yudean Qujie Wind Power Generation Co., Ltd.
Electric Power Sales Company               Refers to Guangdong Yudean Electric Power Sales Co., Ltd.
Anxin Electric Inspection & Installation
                                           Refers to Guangdong Yudean Anxin Electric Inspection & Installation Co., Ltd
Company
Tongdao Wind Power Company                 Refers to Tongdao Yuexin Wind Power Generation Co., Ltd.
Binhai Bay Company                         Refers to Guangdo9ng Yudean Binhai Bay Energy Co., Ltd.
Zhongyue Compamy                           Refers to Zhanjiang Zhongyue Energy Co., Ltd.
Yuejiang Company                           Refers to Guangdong Shaoguan Yuejiang Power Generation Co., Ltd.
Yongan Natural Gas Company                 Refers to Guangdong Yudean Yongan Natural Gas Thermal Power Co., Ltd.
Leizhou Wind Power Company                 Refers to Guangdong Yudean Leizhou Wind Power Generation Co., Ltd.
Zhanjiang Company                          Refers to Zhanjiang Electric Power Co., Ltd.
Zhanjiang Wind Power Company               Refers to Guangdong Yudean Zhanjiang Wind Power Co., Ltd.
Huizhou Natural Gas Company                Refers to Guangdong Huizhou Natural Gas Power Co., Ltd.
Zhenneng Company                           Refers to Maoming Zhenneng Thermal Power Co., Ltd.
Jinghai Company                            Refers to Guangdong Yudean Jinghai Power Co., Ltd.
Red Bay Company                            Refers to Guangdong Red Bay Power Co., Ltd.
Huadu Natural Gas Company                  Refers to Guangdong Huadu Natural GasT Thermal Power Co., Ltd.
Humen Power Company                        Refers to Guangdong Yudean Humen Power Co., Ltd.
Yuejia Company                             Refers to Guangdong Yuejia Electric Power Co., Ltd.
Pinghai Power Plant                        Refers to Guangdong Hluizhou Pinghai Power Co., Ltd.
Pingdian Integrated Energy Company         Refers to Huizhou Pingdian Integrated Energy Co., Ltd.
Zhencheng Integrated Energy Company        Refers to Guangdong Yudean Zhencheng Integrated Energy Co., Ltd.
Dianbai Wind Power Company                 Refers to Guangdong Yudean Dianbai Wind Power Co., Ltd.
Yangjiang Wind Power Company               Refers to Guangdong Yudean Yangjiang Offshore Wind Power Co., Ltd.
Heping Wind Power Company                  Refers to Guangdong Yudean Heping Wind Power Co., Ltd.
Pingyuan Wind Power Company                Refers to Guangdong Yudean Pingyuan Wind Power Co., Ltd.
Zhuhai Wind Power Company                  Refers to Guangdong Yudean Zhuhai Offshore Wind Power Co., Ltd.
Wuxuan Wind Power Company                  Refers to Guangxi Wuxuan Yudean New Energy Co., Ltd.
Xupu Wind Power Company                    Refers to Hunan Xupu Yuefeng New Energy Co., Ltd.
Shibeishan Wind Power                      Refers to Guangdong Yudean Shibeishan Wind Energy Development Co., Ltd.
Huilai Wind Power Company                  Refers to Huilai Wind Power Generation Co., Ltd.
Yudean Industry Fuel Company               Refers to Guangdong Power Industry Fuel Co., Ltd.
Yudean Insurance Captive Company           Refers to Guangdong Yudean Property Insurance Captive Co., Ltd.

                                                                                                                          4
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Shanxi Energy Company               Refers to Shanxi Yudean Energy Co., Ltd.
Yudean Shipping Company             Refers to Guangdong Yudean Shipping Co., Ltd.
Yudean Western Investment Company   Refers to Guangdong Yudeann Holdings Western Investment Co., Ltd.
Yudean Finance Company              Refers to Guangdong Yudean Finance Co., Ltd.
Guohua Taishan Company              Refers to Guangdong Guohua Yudean Taishan Power Generation Co., Ltd.
Weixin Energy Co., Ltd.             Refers to Yunnan Yuntou Weixin Energy Co., Ltd.
Zhongxinkeng hydropower station     Refers to Yangshan Zhongxinkeng Power Co., Ltd.
Jiangkeng hydropower station        Refers to Yangshan Jiangkeng hydropower station
Southern Offshore wind power        Refers to Southern Offshore wind power Union Development Co., Ltd.
Sunshine Insurance                  Refers to Sunshine Insurance Group Co., Ltd.
Shenzhen Capital                    Refers to Shenzhen Capital Group Co., Ltd.
GMG                                 Refers to GMG International Tendering Co., Ltd.
Shenzhen Energy                     Refers to Shenzhen Energy Group Co., Ltd.
Shenergy Company                    Refers to Shenergy Company Limited




                                                                                                              5
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                       II. Corporate Profile and Key Financial Results

I.Company information
Stock abbreviation              Yue Dian Li A, Yue Dian Li B         Stock code:                  000539、200539

Stock exchange for listing      Shenzhen Stock Exchange

Name in Chinese                 广东电力发展股份有限公司

Abbreviation of Registered
Company Name in Chinese(If 粤电力
any)

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

English abbreviation (If any)   GED

Legal Representative            Wang Jin


Ⅱ.Contact person and contact manner

                                       Board secretary                              Securities affairs Representative
Name                 Liu Wei                                           Qin Xiao
                     35F, South Tower, Yudean Plaza, No.2 Tianhe Road 36/F, South Tower, Yudean Plaza, No.2 Tianhe Road
Contact address
                     East, Guangzhou,Guangdong Province               East, Guangzhou,Guangdong Province
Tel                  (020)87570276                                     (020)87570251
Fax                  (020)85138084                                     (020)85138084
E-mail               liuw@ged.com.cn                                   qinxiao@ged.com.cn

III. Other info.

1. Way of contact

Whether registrations address, offices address and codes as well as website and email of the Company changed in
 reporting period or not
□ Applicable √ Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change in
reporting period, found more details in annual report 2018.

2. Information inquiry

Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
None of the official presses, website, and place of enquiry has been changed in the semi report period. For details
please find the Annual Report 2018.




                                                                                                                           6
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3. Other relevant information

Did any change occur to other relevant information during the Reporting Period?

√Applicable □ Not applicable

On May 21, 2019, the revision of some articles of the Company's Articles of Association was reviewed and
approved in the Company's 2018 Annual Shareholders’ General Meeting. The full text of the revised "Articles of
Association" can be found in the Cninfo website: http://www.cninfo.com.cn.,The disclosure date is May 22, 2019.

IV.Summary of Accounting data and Financial index

May the Company make retroactive adjustment or restatement of the accounting data of the previous years
□ Yes √ No
                                                  Reporting period           Same period of last year          YoY+/-(%)
Operating income(yuan)                                 12,874,181,250                13,894,985,179                         -7.35%
Net profit attributable to the shareholders
                                                            581,569,383                    448,833,518                       29.57%
of the listed company(yuan)
Net profit after deducting of non-recurring
gain/loss attributable to the shareholders of               588,588,917                    413,141,718                       42.47%
listed company(yuan)
Cash flow generated by business operation,
                                                          3,803,441,801                  3,795,532,708                        0.21%
net(yuan)
Basic earning per share(yuan/Share)                               0.1108                         0.0855                      29.59%
Diluted gains per share(yuan/Share)                               0.1108                         0.0855                      29.59%
Weighted average income/asset ratio(%)                             2.37%                       1.88%                        0.49%
                                                As at the end of the
                                                                             As at the end of last year        YoY+/-(%)
                                                 reporting period
Gross assets(yuan)                                     72,888,042,485                73,329,662,306                         -0.60%
Shareholders’ equity attributable to
                                                         24,551,367,214                24,227,302,288                         1.34%
shareholders of the listed company(yuan)


V.The differences between domestic and international accounting standards

1.Simultaneously pursuant to both Chinese accounting standards and international accounting standards disclosed
in the financial reports of differences in net income and net assets.

√ Applicable □Not applicable
                                                                                                                             In RMB

                                                Net profit attributable to the shareholders        Net Assets attributable to the
                                                          of the listed company                 shareholders of the listed company
                                                   Amount in the         Amount in the        End of the reporting Beginning of the
                                                  reporting period       previous period            period         reporting period
According to CAS                                        581,569,383            448,833,518        24,551,367,214      24,227,302,288
Items and amount adjusted according to IAS


                                                                                                                                       7
                                                    Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


The difference arising from recognition of
goodwill after merger of enterprises under the                                                  64,623,000           64,623,000
same control
Difference arising from recognition of land
                                                             -315,000         -315,000          17,285,000           17,600,000
use value after enterprise merger
Influence on minority interests                                27,060           27,060           4,837,279            4,810,219
According to IAS                                         581,281,443      448,545,578      24,638,112,493       24,314,335,507


2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese
accounting standards.

□ Applicable √Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign
accounting rules or Chinese GAAP(Generally Accepted Accounting Principles) in the period.

3.Note to the Difference in the Accounting Data based on the Accounting Standards of CAS and IAS.


√ Applicable □ Not applicable
(a) The difference arising from recognition of goodwill after merger of enterprises under the same control and
    recognition of land value after enterprise merger.
   As required by new Chinese accounting standards, the goodwill formed by the merger of enterprises under
   the same control shall not be recognized and capital surplus shall be adjusted. Under IFRS, the golldwill
   formed by the merger of enterprises under the same control shall be recognized and equal to the difference
   between merger cost and share of fair value of recognizable net assets of the purchased party obtained in
   merger. Meanwhile, all assets of the purchased party obtained in merger shall be accounted for according to
   their fair value while such assets shall be accounted for according to their book value according to original
   Chinese accounting standards for business enterprises. Therefore, this difference will continue to exist.
(b) Influence on minority interests
   Housing reform loss occurred to the Company and some holding subsidiaries. Therefore, there’s some
   influence on minority interests.

VI.Items and amount of deducted non-current gains and losses

√ Applicable □ Not applicable
                                                                                                                        In RMB


                              Items                                        Amount                            Notes
Non-current asset disposal gain/loss(including the write-off part
                                                                                  -13,971,117
for which assets impairment provision is made)
Govemment subsidy recognized in current gain and
loss(excluding those closely related to the Company’s business                     1,721,047
and granted under the state’s policies)
According to tax, accounting and other laws, regulations, the
requirements of the current Gain/loss for a one-time adjustment of                  -250,472
the impact of the current Gain/loss;


                                                                                                                                  8
                                                    Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


Other non-business income and expenditures other than the above                     -719,920
Less: Amount of influence of income tax                                            -3,243,410
  Influenced amount of minor shareholders’ equity (after tax)                     -2,957,518
Total                                                                              -7,019,534               --

For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Compaines Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
□ Applicable√ Not applicable
None of Non-recurring gain /loss items recorgnized as recurring gain /loss/items as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.




                                                                                                                            9
                                             Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019




                                  III. Outline of Company Business



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

Whether the company needs to comply with the disclosure requirements of the particular industry
No
The Company mainly engages in the investment, construction and operation management of power projects, and the
production and sales of electric power. It belongs to the power, heat production and supply industry classified in the
“Guidelines for the Industry Classification of Listed Companies” by the China Securities Regulatory Commission.
Since its foundation, the Company has always adhered to the business tenet of “Capital from the people, using it for
electricity, and benefiting the public” and adheres to the business policy of “Centering on the main business of
electricity, with diversified development”, focusing on the main business of power and making the power structure
go diversified. In addition to the development, construction and operation of large-scale coal-fired power plants, it
also has clean energy projects such as LNG power generation, wind power generation and hydropower generation,
which provides reliable and clean energy to users through the grid company. As of June 30,2019, the controllable
installed capacity is 21.42 million KW, where the controllable installed capacity of coal-burning power generation,
LNG generation and renewable energy generation like wind power and hydropower is 17.14 million KW, 3.72
million KW and 560,000 KW respectively.

Income source is primarily contributed by power production and sales, and main business income is derived from
Guangdong Province. The company electricity sales price is subject to the benchmark price verified by the price
authority per relevant policies based on National Development and Reform Commission (NDRC) and the
electricity transaction price through the market trade implementation per Guangdong Electricity Market Trade
Basic Rules and supporting files. In the reporting period, the electricity sold is 31.523 billion kwh, a decrease of
13.18% YOY; average price stated in the consolidated statements is 459.74 Yuan/ thousands kwh (tax
included ,the same below ), an increase of RMB 20.16 yuan and an increase of 4.59% YOY, the total operating
income was RMB 12,874.18 million, a decrease of RMB 1020.81 million and YoY drop of 7.35%

The company's business is dominated by coal-fired power generation, and the fuel costs account for a large portion
of operating costs, thus the fluctuations in coal prices have a significant impact on the company's operating
performance. During the reporting period, affected by the increase in power generation and the continuous increase
in coal prices, the company’s fuel costs were 7828.39 million yuan, which accounted for 65.04% of the main
business costs; Affected by the double drop of electricity generation and coal price , a decrease of -1425.87 million
yuan or a decrease of -15.41% over the same period of last year.

During the reporting period, due to the comprehensive impact of the year-on-year decline in the price of coal, the
dividend from the implementation of tax reduction and fee reduction policy and the Company's effective control
of various costs and expenses, the gross profit of power generation and the net profit attributable to the parent
company went up YOY. Realizing net profit attributable to shareholders of the parent company of RMB 581.57
million , a year-on-year increase of 29.57%; and the earnings per share was 0.1108 yuan.

                                                                                                                    10
                                              Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


Ⅱ.Major Changes in Main Assets

1.Major Changes in Main Assets




                Main assets                                            Major changes

Equity assets                        No major changes
Fixed assets                         No major changes
Intangible assets                    No major changes
Construction in process              No major changes


2. Main Conditions of Overseas Assets

□ Applicable √ Not applicable

Ⅲ. Analysis On core Competitiveness

Whether the company needs to comply with the disclosure requirements of the particular industry
No
1. The largest listed company of power in Guangdong
The Company's main power generation assets are located in Guangdong Province, with a total asset size of more
than 70 billion. It is the largest listed company of power in Guangdong Province.


2. Guangdong Energy Group has oriented our company as a sole listed platform for domestic power-generating
assets integration
We are the shareholder of Guangdong Energy Group , one of the biggest power-generating groups in south China,
which takes advantage of its source, assets scale, to give sustaining support to our company’s advancement and
expansion. It has oriented us as a sole listed platform for domestic power-generating assets integration. We are
endowed with a priority offered by it in power source development, asset acquisition.


3. State-of-the-art unit performance built on implementation of the energy-saving dispatching policy
By virtue of high parameters, large capacity, nice efficiency, low coal consumption, reliable operation and
environmental protection, our thermal power generating unit units are given priority in energy-saving dispatching.
As a result, our units are more competitive in on-grid price.


4. Stepwise optimization of industrial structure and power source structure
The 13th Five-Year Plan of the Company specified the overall strategy of taking power generation as the core
business, optimizing the development of coal-fired power, steadily developing gas power, vigorously developing
clean energy such as wind power and hydropower, continuously optimizing the power supply structure, and heading
to an efficient, clean and low-carbon road. In 2018, the Company continued to optimize and adjust the power supply
structure to further increase the proportion of clean energy such as wind power and natural gas power generation.
In the first half of 2019, the Company's new 300,000 KW controllable offshore wind power project was approved,

                                                                                                                     11
                                              Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


and a number of gas and wind power projects have been under construction and will be put into production during
the period of from 2018 to 2020. According to the overall goal of the Company's “13th Five-Year Plan”, the
proportion of clean energy at the end time of the “13th Five-Year Plan” will be raised from about 15% (including
natural gas power generation) to about 29% (including natural gas power generation).


5.Administrators and technical experts are veterans in operation and management of power plants, and key staff
have years of practical experience in the power sector. The Company continuously improved the quality and
efficiency of its operations by strengthening its management of safety production, energy conservation and emission
reduction, marketing and so on.


6. Hold fast to the opportunity of “electric price reform”, To realize the transformation from a power generation
enterprise to an energy comprehensive service enterprise.
In order to adapt to the power market reform, the Company established Guangdong Yudean Power Sales Co., Ltd in
July 2015 to participate in the market competition in the electricity sales side. Guangdong Yudean Power Sales Co.,
Ltd, which belongs to the first group of power-selling companies that obtained the market access, is numbered
“SD01”. Since its establishment in 2015, after undergoing the market competition, Yudean electricity selling has
become a well-known brand in the Guangdong electric power market, forming a leading position. In recent years, in
the annual long-term contracted electricity and monthly concentrated bidding, the winning bidding electricity
quantity and winning bidding rate steadily topped in the market. In the future, the Company will continue to
vigorously promote the business of sales of electricity, take active measures in accordance with the relevant policies
of the national power system reform, expand the distribution business of electricity and the integrated energy
services, so as to realize the transformation from a power generation enterprise to an energy comprehensive service
enterprise.


7. Actively participate in the energy layout of the Greater Bay Area of Guangdong, Hong Kong and Macao in
combination with the development plan of the Greater Bay Area of Guangdong, Hong Kong and Macau
As the main energy force in Guangdong Province, the Company is at the forefront of the construction of
Guangdong-Hong Kong-Macao Greater Bay Area. The Company will closely focus on the goal of “building a
clean, low-carbon, safe and efficient energy supply system” stated by the “Guangdong-Hong Kong-Macao Greater
Bay Area Development Plan” and the development of “one core, one belt and one district” new pattern proposed
by the provincial party committee and the provincial government, thus to provide the safe and reliable energy
supply guarantee for the construction of the greater bay area. First, it will make full use of the opportunities for
decommission and rebuilding of Shajiao A Power Plant, the expansion of natural gas development in Huizhou and
expansion of natural gas development in the pre-Guangzhou area to create a super energy supply base for gas,
electricity, heat and cold combined supply in the Greater Bay Area, and the Company will by cooperation speed
up the land development of Shajiao Power Plant land, actively explore the construction of the Greater Bay Area
Smart Energy Network and the high-end power technology integrated service headquarters. Secondly, it will
vigorously develop clean energy and continue to promote the construction of Huadu Natural Gas, Zhaoqing
Yongan Natural Gas, and Zhuhai Jinwan Offshore Wind Power Projects. The third is to serve the development of
the coastal economic belt, vigorously promote the clean development of coal-fired power, strengthen the exchange
and cooperation of low-carbon development, energy-saving and environmental protection technologies, further to
promote the clean production technologies, so as to help the Greater Bay Area to build a clean, low-carbon, safe
and efficient energy supply system.


                                                                                                                     12
                                             Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019



                       IV. Management’s Discussion and Analysis

Ⅰ.General

In the first half of 2019,the total electricity consumption of Guangdong Province was 302.61 billion kWh, a YOY
increase of 6%, the growth rate dropped by 6% compared with the same period of last year. The annual output of
West-area Power to Guangdong reached 91.85 billion kWh-over-delivering 22.57 billion kWh, an increase of
20.7%.Affected by the YOY growth of 20.7% from Western Power supply, the 28% growth of nuclear power (new
installed capacity of nuclear power of 2.84 million kilowatts) and the province's hydropower units, the on-grid
power of Gangdong's unified management for core-fired power units declined by nearly 15%, the Company's
on-grid power of the core-fired power units also fell by 13.65% YOY. In the first half of 2019, The Company
completed the on-grid power supply of 31.523 billion kWh, down 13.18% YOY; the average utilization hours of
holding coal-fired units was 1,824 hours, down 390 hours YOY; the average utilization hours of gas-fired units
was 1,984 hours, an increase of 324 hours; the average utilization hours of wind turbines was 1,136 hours, an
increase of 311 hours YOY.

In 2019, the scale of marketization transaction in Guangdong Province continued to expand, with the total volume
reached 200 billion kWh (an increase of 27% over 2018). According to the data released by the Guangdong
Electric Power Trading Center, the 2019 annual bilateral negotiation transaction volume organized by the
Guangdong Electric Power Trading Center was 118.9 billion kWh, and the average transaction price difference
was -4.509 Cent(RMB)/kWh. In the first half of 2019, the monthly concentrated bidding transaction power was
27.211 billion kWh, and the average clearing spread was -3.2 Cent(RMB)/kWh. In 2019, the Company's
budgetary on-grid electricity was 70.981 billion kWh, of which the base electricity was 21.12 billion kWh,
accounting for about 30%; the annual long-term contracted was 35.66 billion kWh, accounting for about 50%; the
rest was monthly bidding volume, accounting for about 20%. In the first half of 2019, the average selling price of
the Company's consolidated statements was 459.74 yuan / thousand kWh (excluding tax), an increase of 20.16
yuan / thousand kWh.

In the first half of 2019, by the comprehensive impact of the year-on-year decline in the price of coal, the dividend
from the implementation of tax reduction and fee reduction policy and the Company's effective control of various
costs and expenses, the Company's profit went up YOY. As of June 2019, the total assets of the Company's
consolidated statements were 72.888 billion yuan, a decrease of 0.6% from the beginning of the year, and the
equity attributable to shareholders of the parent company was 24.551 billion yuan, an increase of 1.34% over the
beginning of the year. The company achieved a consolidated statement operating income of 12.874 billion yuan,
down 7.35% year-on-year; the net profit attributable to shareholders of the parent company was 582 million yuan,
an increase of 29.57%; the earnings per share was 0.1108 yuan. The total liabilities in the Company's consolidated
statement were 40.758 billion yuan and the asset-liability ratio was 55.92%.


In the first half of 2019, the #6 machine of Huizhou Natural Gas Power Generation Project, which was controlled
by the Company, was put into commercial operation, increasing the controllable installed capacity of 460,000
kilowatts. As of June 2019, the Company's controllable installed capacity was 21.42 million kilowatts, of which:
the controllable installed capacity of coal-fired power was 17.14 million kilowatts, accounting for 80.03%; the
controllable installed capacity of gas-power was 3.72 million kilowatts, accounting for 17.37%; the controllable


                                                                                                                    13
                                                      Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


installed capacity of wind power, hydropower and other renewable energy power was 560,000 kilowatts,
accounting for 2.60%.

II. Main business analysis

Refer to relevant contents of “1.Summarization” in “Discussion and Analysis of Management”.
Changes in the financial data
                                                                                                                            In RMB

                              This report period      Same period last year YOY change(%)               Cause change
Operating income                     12,874,181,250        13,894,985,179            -7.35%
Operating cost                       11,024,143,476        12,200,856,427            -9.64%
                                                                                            In order to grasp the opportunity of
                                                                                            power market reform, the company
                                                                                            strengthened its investment in the
Sale expenses                           12,844,788             10,316,130            24.51%
                                                                                            power market marketing business, so
                                                                                            the sales expenses increased
                                                                                            significantly year-on-year.
Administrative expenses                270,884,804            270,794,513             0.03%
Financial expenses                     635,395,970            631,118,798             0.68%
Income tax expenses                    309,835,930            307,767,578             0.67%
                                                                                              Mainly Zhanjiang Electric Power,
                                                                                              Zhenneng Company and Shajiao A
      R & D Investment                     347,523              2,238,543           -84.48%
                                                                                              Power Plant have seen a significant
                                                                                              drop in R&D investment this year.
Cash flow generated by
                                      3,803,441,801          3,795,532,708            0.21%
business operation, net
Net cash flow generated
                                     -1,616,320,253         -1,699,538,040           -4.90%
by investment
                                                                                            Mainly due to the year-on-year
                                                                                            increase of 830 million yuan in
Net cash flow generated
                                     -2,560,881,610         -1,163,991,471          120.01% repayment of borrowings, and the
by financing
                                                                                            decrease in borrowings was 579
                                                                                            million yuan.
                                                                                            Mainly due to the repayment of
Net increasing of cash
                                       -373,760,017           932,003,290          -140.10% borrowings this year, the cash changes
and cash equivalents
                                                                                            were large.

Major changes to the profit structure or sources of the Company in the reporting period
□ Applicable √Not applicable
Nil

Breakdown of main business
                                                                                                                            In RMB

                                                                                                Increase/decrease Increase/decrease
                                                                             Increase/decrease
                                                                                                   of principal     of gross profit
                                                                              of reverse in the
                         Operating                           Gross profit                       business cost over rate over the
                                         operating costs                       same period of
                          revenue                              rate(%)                           the same period same period of
                                                                                the previous
                                                                                                 of previous year the previous year
                                                                                  year(%)
                                                                                                       (%)               (%)
Industry

                                                                                                                                    14
                                                Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


Electric power ,
Steam sales and    12,744,689,154     11,021,172,212          13.52%              -7.44%          -9.66%            2.12%
labor income
Products
Sales Electric
                   12,657,308,705     10,965,375,272          13.37%              -7.54%          -9.78%            2.16%
Power
Thermal sales         67,875,105         43,332,946           36.16%              8.55%           44.74%          -15.96%
Labor income          19,505,344         12,463,994           36.10%              9.06%          -19.12%           22.26%
Area
Guangdong          12,717,948,615     10,993,694,869          13.56%              -7.47%          -9.70%            2.13%
Yunnan                26,740,539         27,477,343            -2.76%             9.79%            7.09%            2.58%


III. Non-core business analysis

□ Applicable √Not applicable

IV. Analysis of assets and liabilities

1.Significant changes in asset composition

                                                                                                                   In RMB

                      End of Reporting period           End of same period of last year
                                      As a percentage                     As a percentage Change in        Reason for
                      Amount              of total        Amount              of total   percentage(%) significant change
                                         assets(%)                           assets(%)
Monetary fund         5,199,734,595             7.13%     5,928,583,780            8.14%        -1.01%
Accounts
                      3,264,118,313             4.48%     2,904,469,301            3.99%         0.49%
receivable
Inventories           1,812,173,995             2.49%     2,006,400,069            2.76%        -0.27%
Real estate
                         10,097,905             0.01%         7,978,840            0.01%           0%
Investment
Long-term equity
                      6,495,819,304             8.91%     5,926,328,997            8.14%         0.77%
investment
Fixed assets         40,097,107,758           55.01%     40,052,143,800             55 %         0.01%
Construction in
                      8,373,522,376           11.49%      9,122,852,147           12.53%        -1.04%
 process
Short-term loans      6,916,200,000             9.49%    10,035,000,000           13.78%        -4.29%
Long-term loans      17,660,996,020           24.23%     18,349,294,665           25.20%        -0.97%


2.Asset and Liabilities Measured by Fair Value

√ Applicable □Not applicable
                                                                                                                   In RMB
                                       Gain/loss on Cumulative fair Impairme                  Sold
                     Amount at year                                            Purchased              Amount at year
           Items                         fair value  value change      nt                   amount in
                       beginning                                              amount in the               end
                                       change in the recorded into provisions                  the

                                                                                                                        15
                                                 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


                                         reporting       equity          in the reporting period reporting
                                          period                       reporting                  period
                                                                        period
Financial assets
1. Tradable financial
assets (excluding
                                             30,626                                        6,577                   37,203
derivative financial
assets)
4.Investment in other
                         1,565,806,331   76,683,442      781,025,960                 78,162,240              1,720,652,013
equity instruments
Total                    1,565,806,331   76,683,442      781,025,960                 78,199,443              1,720,689,216
Financial Liability                 0                                                                                   0

Did great change take place in measurement of the principal assets in the reporting period ?
√Yes □ No
Explanation of the reasons for major changes in the measurement attributes of the Company's major assets during
the reporting period and its impact on the operating result and financial status
(1) Reason for change
1 Accounting policy for financial statement format adjustment
On June 15, 2018, the Ministry of Finance issued the Notice on Issuance of Amended 2018 Annual Financial
Statements of General Enterprises (No. 15 [2018] Accounting), required that non-financial enterprises that
implement the corporate accounting standards shall follow the accounting standards and the notice. According to
the requirements of the above-mentioned No. 15 [2018] Accounting, the Company will make corresponding
changes to the relevant contents of the financial statement format.
2 Accounting Policy for New Financial Instruments Standards
In 2017, the Ministry of Finance issued the revised " No. 22 Accounting Standards for Business
Enterprises-Recognition and Measurement of Financial Instruments", " No. 23 Accounting Standards for Business
Enterprises-Transfer of Financial Assets", " No. 24 Accounting Standards for Business Enterprises-Hedge
Accounting, " No. 37 Accounting Standards for Business Enterprises-Financial Instruments Presentation", and
required the domestic listed companies to implement the relevant accounting standards for new financial
instruments from January 1, 2019.
2) Impact
The changes of the accounting policy only affect the listing presentation of relevant subjects in the Company's
financial statements, and will not have any impact on the Company's total assets, total liabilities, net assets and net
profit in the current period and before the accounting policy change.
According to the commencement rules of the new financial instrument standards, the Company does not need to
restate the previous comparables, and the information presented in the financial statements that is not inconsistent
with the requirements by the new standard is not required to adjust. The difference adjustment on the first day of
implementation of the new standard is included in the retained earnings or other comprehensive income at the
beginning of 2019, and does not need to restate the comparables at the end of 2018. This accounting policy change
does not affect the Company's relevant financial indicators for 2018.
3. Restricted asset rights as of the end of this Reporting Period
As of June 30, 2019, the Company had a total of accounts receivable with a book value of 297,273,413 yuan (as
of December 31, 2018: 396,323,295 yuan), together with the power charge rights of several power generation

                                                                                                                        16
                                             Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


subsidiaries, were pledged to the bank to obtain long-term loans of 3,664,700,634 yuan, of which: the balance of
long-term loans due within one year was 234,638,568 yuan (as of December 31, 2018: 2,765,356,586 yuan).
including: the long-term borrowings due within one year amounted to RMB213,259,115 . The borrowings are
detailed as follows:


The borrowings are detailed as follows:
1.As at June 30, 2019, the long-term pledge borrowings of the following subsidiaries were based on their power
fee charging rights and accounts receivable as pledges:
                                                                                 In RMB

                Name                         June 30,2019               December 31,2018
Guangdong Shaoguan Yuejiang Power
                                                     2,070,813,700                2,151,963,439
Generation Co., Ltd.
Guangdong Yudean        Leizhou   Power
                                                          236,829,612              236,829,612
Generation Co., Ltd.
Guangdong Yudean Zhanjiang        Wind
                                                          130,185,000              138,945,000
Power Generation Co., Ltd.
Guangdong Yudean Xuwen Wind Power
                                                          164,714,222                74,798,535
Generation Co., Ltd.
Guangdong Yudean Qujie Wind Power
                                                     1,062,158,100                 162,820,000
Generation Co., Ltd.
                Total                                3,664,700,634                2,765,356,586




2.As at June 30, 2019, the long-term pledge borrowings of the following subsidiaries due within one
year were based on their power fee charging rights and accounts receivable as pledges:
                                                                                       In RMB
                Name                         June 30,2019               December 31,2018
Guangdong Shaoguan Yuejiang Power
                                                          188,255,792               186,859,840
Generation Co., ltd.
Guangdong Yudean        Leizhou   Power
                                                            1,597,115                 1,597,115
Generation Co., Ltd.
Guangdong Yudean Zhanjiang        Wind
                                                           18,274,167                18,274,167
Power Generation Co., Ltd.
Guangdong Yudean Xuwen Wind Power
                                                           18,355,494                 6,527,993
Generation Co., Ltd.
Guangdong Yudean Qujie Wind Power
                                                            8,156,000
Generation Co., Ltd.
                Total                                     234,638,568               213,259,115


2.As at June 30,2019, The book value of fixed assets leased by the company through finance leasing is about
RMB 1,583,671,996(Original value RMB 3,021,850,800 )
①.As at June 30,2019, The book value of fixed assets leased by Zhanjiang Zhongyue Energy Co., Ltd.
through finance leasing is about RMB 568,834,796 (Original value RMB 900,000,000 );


                                                                                                                    17
                                                Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


②As at June 30,2019, The book value of fixed assets leased by Guangdong Shaoguan Yuejiang Power Generation
Co., Ltd.through finance leasing is about RMB 814,420,533 (Original value RMB 1,121,850,800 );
③As at June 30,2019, The book value of fixed assets leased by Guangdong Yudean Jinghai Power Generation Co.,
Ltd.through finance leasing is about RMB200,416,667 (Original value RMB1,000,000,000);
3. On June 30, 2019, the book value of the construction in progress of the Company to form a finance lease after
sale and leaseback was RMB 1,231,242,021(December 31,2018: 1,147,811,958)
① The book value of the construction in progress by finance lease by Guangdong Yudean Bohe Coal and
Electricity Co., Ltd was RMB 906,843,8211(December 31,2018: 906,981,377).
②The book value of the construction in progress by finance lease by Guangdong Yudean Qujie Wind Power
Generation Co., Ltd was RMB324,398,200 (December 31,2018: 240,830,581).
4.On June 30, 2019, other monetary funds were RMB 3,111,720 (On December 31, 2018: RMB 4,000,000), which
was composed by the margin deposit for security of 2,000,000 yuan for applying for a performance guarantee by
the subsidiary of the Company-Huizhou Pingdian Integrated Energy Co., Ltd-for participating in the sale of
electricity at the Guangdong Electric Power Trading Center and the Company's restricted carbon-emission account
balance of 1,111,720 yuan.

V.Investment situation



1. General
√ Applicable □ Not applicable
        Investment of the period           Investment of same period of last year            Scale of change

                             980,162,240                               546,000,000                               79.52%




                                                                                                                       18
                                                                                                        Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019
2.Condition of Acquiring Significant Share Right Investment during the Report Period
√Applicable □ Not applicable
                                                                                                                                                                           In RMB

                                                                                                                                 Whether
                                                                                                                     Gain     or
Name of the                               Share                               Investm         Progress up to Anticip             to       Date of
             Main    Investme Investment         Capital                              Product                        Less or the
Company                                  Proport         Partner              ent             Balance   Sheet ated               Involve Disclosure Disclosure Index(if any)
            Business nt Way     Amount           Source                               Type                           Current
Invested                                  ion %                               Horizon         Date           Income              in       (if any)
                                                                                                                     Investment
                                                                                                                                 Lawsuit
                                                                                                 All 7 wind
                                                                                                                                                           Announcement
Guangdong                                                                                        turbines have
           Wind                                                                                                                                            No.:2018-46)Published in
Wind Power            Capital                          Self                    Long-ter Electric been hoisted and                             August 31,
           Power                  39,000,000 100 %             No                                                                  --   No                 China Securities Daily,
Generation            increase                         Funds                      m     power installed, waiting                              2018
           Generation                                                                                                                                      Securities Times and
Co., Ltd.                                                                                        to be connected
                                                                                                                                                           http//.www.cninfo.com.cn
                                                                                                 to the grid.
                                                                                                 EPC general
                                                                                                 contract bidding
                                                                                                 is completed, and
                                                                                                                                                           Announcement
Guangdong                                                                                        the pile
           Wind                                                                                                                               January      No.:2019-05)Published in
Wind Power            Capital                    Self                          Long-ter Electric foundation
           Power               200,000,000 100 %               No                                                           -156,758    No    26,          China Securities Daily,
Generation            increase                   Funds                            m     power construction of
           Generation                                                                                                                         2019         Securities Times and
Co., Ltd.                                                                                        onshore
                                                                                                                                                           http//.www.cninfo.com.cn
                                                                                                 centralized
                                                                                                 control center is
                                                                                                 under process.
                                                                                                As of the end of
                                                                                                the reporting
                                                                                                period, the
                                                                                                overall
Guangdong                                                                                       construction                                            Announcement
Yudean        Coal-fired                                       Guangdong                        progress of the                               September No.:2018-49)Published in
                         Capital                       Self                   Long-ter Electric
Bohe Coal power                   603,000,000   67 %           Energy Group:                   power plant               -6,735,031    No    20,       China Securities Daily,
                         increase                      Funds                     m     power
Electric Co., generation                                       33%                              project is                                    2018      Securities Times and
Ltd.                                                                                            approximately                                           http//.www.cninfo.com.cn
                                                                                                79.4%, and the
                                                                                                overall
                                                                                                construction
                                                                                                progress of the
                                                                                                                                                                                  19
                                                                                                      Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019
                                                                                              port terminal
                                                                                              project is
                                                                                              approximately
                                                                                              57%.
                                                                                              Units #1 and #2
Guangdong                                                                                                                                              Announcement
                                                                                              had been put into
Yudean     Coal-fired                                                                                                                       October    No.:2012-45)Published in
                      Capital                        Self                   Long-ter Electric production in
Dapu Power power                  40,000,000 100 %           No                                                        -18,252,297    No    31,        China Securities Daily,
                      increase                       Funds                     m     power December 2015
Generation generation                                                                                                                       2012       Securities Times and
                                                                                              and in June 2016
Co., Ltd.                                                                                                                                              http//.www.cninfo.com.cn
                                                                                              respectively.
                                                                                              The Xinliao
                                                                                              Project was
                                                                                              approved on
Guangdong
                                                                                              December 5,                                              Announcement
Yudean
           Wind                                                                               2018. The special                                        No.:2018-54)Published in
Qujie Wind            Capital                        Self                   Long-ter Electric                                               October
           Power                  20,000,000 100 %           No                               compiling                          --   No               China Securities Daily,
Power                 increase                       Funds                     m     power                                                  31,2018
           Generation                                                                         preparation                                              Securities Times and
Generation
                                                                                              required before                                          http//.www.cninfo.com.cn
Co., Ltd.
                                                                                              the start of
                                                                                              construction is
                                                                                              being carried out.
                                                             State-owned
                                                             assets
                                                             Supervision
                                                             and
                                                             Administration                                                                            Announcement
Shenzhen
                                                             Commission of                                                                             No.:2018-50)Published in
Capital               Capital                        Self                   Long-ter Venture In normal                                      September
           Investment             78,162,240 3.67%           Shenzhen                                                            --   No              China Securities Daily,
Group Co.,            increase                       Funds                     m     Capital operation                                      20,2018
                                                             Municipal                                                                                Securities Times and
Ltd.
                                                             people's                                                                                 http//.www.cninfo.com.cn
                                                             Government
                                                             (shareholding
                                                             ratio:
                                                             28.1952%)
Total           --        --     980,162,240   --      --          --          --       --            --             0 -25,144,086    --        --                 --

3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
□ Applicable √ Not applicable
                                                                                                                                                                              20
                                                                                                           Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019
4.Investment of Financial Asset
(1)Securities investment
√ Applicable □Not applicable
                                                                                                                                                                           In RMB

                                                                      Book value                                    Purchase Sale                 Book value
                                  Initial              Mode of       balance at the Changes      in Cumulative fair amount amount Gain/loss of balance at the
  Security    Security Stock                                                                                                                                  Accounting Source of
                                  investment           accounting    beginning of fair value of value changes in in the      in the the reporting end of the
  category     code Abbreviation:                                                                                                                               items    the shares
                                  cost                 measurement   the reporting the this period     equity         this    this     period      reporting
                                                                         period                                      period  period                 period
                                                                                                                                                              Investment
Domestic
                      Shenzhen                       Fair value                                                                                               in other
and foreign    000027                     15,890,628                   66,150,000     11,970,000      62,229,372                        630,000    78,120,000             Self funds
                      Energy                         measurement                                                                                              equity
stocks
                                                                                                                                                              instruments
                                                                                                                                                             Investment
Domestic
                                                     Fair value                                                                                              in other
and foreign    600642 Shenergy           235,837,988                  270,997,380    62,751,442       97,910,834                      11,106,450 333,748,822             Self funds
                                                     measurement                                                                                             equity
stocks
                                                                                                                                                             instruments
                                                                                                                                                              Investment
Domestic
                                                     Fair value                                                                                               in other
and foreign    831039 NEEQ                 3,600,000                    3,618,000      1,962,000       1,980,000                        360,000     5,580,000             Self funds
                                                     measurement                                                                                              equity
stocks
                                                                                                                                                              instruments
                                                                                                                                                              Financial
Domestic
                          Song Yang                  Fair value                                                                                               assets
and foreign    603863                          6,577                            0        30,626           30,626    6,577                      0       37,203             Self funds
                           Recycle                   measurement                                                                                              available
stocks
                                                                                                                                                              for sales
Total                                    255,335,193        --        340,765,380    76,714,068      162,150,832    6,577        0   12,096,450 417,486,025        --          --
Disclosure date for the notice of
                                         October 31,2018
approval by the Board (If any)
Disclosure date for the notice of
approval by shareholders’ Meeting (If
any)




                                                                                                                                                                                    21
                                                                                                 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019
(2)Investment in Derivatives

□ Applicable √ Not applicable
Nil


Ⅵ. Significant Asset and Right Offering

1.Situation of Significant Asset Sale

□ Applicable √ Not applicable
Nil


2.Situation of Substantial Stake Sale

□ Applicable √ Not applicable

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

√ Applicable □ Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company
                                                                                                                                                                 In RMB
                                   Company                             Registered
         Company Name                             Sectors engaged in                   Total assets      Net assets        Turnover       Operating profit   Net Profit
                                     type                               capital
                                               Power generation and
Guangdong Huizhou Pinghai Power
                                Subsidiary     power station           1,370,000,000   5,654,076,507     2,121,408,065    1,493,690,021       280,041,530     208,701,960
Generation Plant Co., Ltd.
                                               construction.
                                               Power generation and
Guangdong Huizhou Natural gas
                                  Subsidiary   power station           1,455,893,000   4,098,332,907     1,843,306,509    1,803,498,057       132,299,520       99,075,750
Power Generation Co., Ltd.
                                               construction.
Guangdong Red Bay Power                        Power generation and
                                  Subsidiary                           2,749,750,000   6,445,421,973     3,312,516,376    1,806,352,342       236,637,015     177,421,053
Generation Co., Ltd.                           power station

                                                                                                                                                                          22
                                                                                                       Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019
                                                construction.
                                                Power generation and
Shenzhen Guangqian Electric
                                  Subsidiary    power station               1,030,292,500     1,623,236,503     1,392,592,886     664,476,433      88,505,051        64,871,883
Power Co., Ltd.
                                                construction.
                                                Power generation and
Zhanjiang Electric Power Co., Ltd. Subsidiary   power station               2,875,440,000     4,466,327,667     4,111,030,557     838,699,914     175,009,973       145,678,540
                                                construction.
                                                Power generation and
Guangdong Yudean Jinghai Power
                                  Subsidiary    power station               2,919,272,000     8,707,447,364     3,526,079,234   2,001,094,521     164,763,068       123,407,270
Generation Co., Ltd.
                                                construction.
Guangdong Guohua Taishan Power Sharing          Power generation and
                                                                            4,669,500,000    11,206,433,834     8,304,717,114   2,972,152,342     548,109,271       406,942,250
Generation Co., Ltd.           Company          power station
                                  Sharing
Shanxi Yudean Energy Co., Ltd.                  Coal Investment             1,000,000,000     4,079,041,655     3,784,585,962       3,986,327     283,006,660       282,977,172
                                  company

Acquirement and disposal of subsidiaries in the Reporting period
√ Applicable □ Not applicable
                                      Way of acquiring and disposing of subsidiary Impact on the whole producing operation
Company name
                                      corporations within the reporting period     and performance
Guangdong Yudean Binhai Bay Energy                                               During the reporting period, no actual
                                   Invested
Co., Ltd.                                                                        operations have been carried out.

Notes
During the reporting period, by the comprehensive impact of the year-on-year decline in the price of coal, the dividend from the implementation of tax reduction and
fee reduction policy and the Company's effective control of various costs and expenses, the overall profitability of the Company's coal-fired power plants went up
YOY, the operating losses of Yuejiang Company, Zhenneng Company and Dapu Power Plant decreased significantly YOY, and the Zhongyue Company turned
losses into profit.




                                                                                                                                                                              23
                                             Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019



VIII.Structured vehicle controlled by the Company
□ Applicable √ Not applicable

IX. Prediction of business performance for January -September 2019

Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss
 probably or the warning of its material change compared with the corresponding period of the last year and
 explanation of reason.

□ Applicable √ Not applicable

X. Risks facing the Company and countermeasures

(1) Possible risks
1. West-to-East Power Transmission and Expansion of Provincial Installations Accelerate the Electricity
Competition
Affected by the international economic situation such as the Sino-US trade war and domestic economic conditions,
the electricity consumption of the whole society showed a moderate, low-speed growth trend, and due to that the
West-to-East Power increased significantly and the new units in the province were put into operation successively,
the utilization hours of the coal-fired power units in the province maintained in the low level, leading to the
average utilization hours of coal-fired units in January-June fell by 390 hours YOY. It’s expected that the
long-term low-load operation of coal-fired power units will continue for a considerable period of time.

2. The process of power marketization is accelerating, and the competition on the sales side is increasingly fierce.
In 2019, the scale of transactions in the Guangdong power market is expanded to 200 billion kWh, an increase of
40 billion kWh YOY and accounting for about 45% of the province's electricity generation. The process of power
marketization has been accelerated, and higher requirements have been placed on power marketing. It’s expected
that the power spot transaction in Guangdong Province will be put into trial operation in the second half of the
year. The competition in the power market in Guangdong will become increasingly fierce, and there will be new
challenges in the power spot trading.

3. The demand for coal in the summer picks up and the price of coal rebounds.
Affected by the coal de-capacity policy, the domestic coal supply and demand situation will continue to be tense
in the second half of the year. In particular, with the gradual pick-up of coal demand in the summer and the impact
of extreme weather, the short-term demand is strong, and the coal price may rebound.

4. The development of the project is limited, and the task of energy structure adjustment is arduous.
In the current policy environment, the overall economic benefits of coal-fired units are relatively poor, and only
large units in coastal areas are relatively stable. In recent years, although the Company's clean energy business has
made big progress, but the overall proportion is still low, and the investment income of the newly
put-into-operation cogeneration project yet needs to be improved. The main business structure optimization task is
arduous.

(2) Solutions

                                                                                                                    24
                                             Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


1. Strengthen management and strive to improve business performance
Actively respond to the deepening reform of the electricity market, organize the learning for policies and rules of
the electricity spot market, strengthen the training of trading personnel, and improve the business management
analysis and decision-making mechanism. Establish the concept of market first, do a good job in the establishment
of marketing organization, decision-making mechanisms and marketing work, and continue to improve the
marketing system in line with the reform of power market.

2. Adhere to the goal and problem orientation, strengthen financial management
Continuing to be goal-oriented and problem-oriented and giving the play of the guiding role of comprehensive
budget management, strengthen the positive impact of financial fund management, and focus on solving
management problems. Promote the registration work of 4 billion yuan corporate bonds and 4 billion yuan green
renewable corporate bonds, and open up all financing channels in the bond market.

3. Implement the development strategy and promote the construction of infrastructure projects
Scientifically promote the construction of Bohe Power Plant and the Terminal, and actively promote the upfront
work of a number of gas turbine projects such as Yong’an Thermal Power. The Huadu Thermal Power Project will
be promoted as fast as it can to complete the conditions for start-up construction and to organize the construction.
The replacement power supply project at the Ningzhou site in Dongguan will be implemented according to the
unified deployment of the provincial government.

4. Centering on the core work and strengthening supervision and management
Give full play to the work of discipline inspection and supervision, audit, risk control, and the work of the
supervisory board, and strive to build a great supervision structure to promote the compliance management and
risk control. Focusing on the core work and serving the overall situation, improve the internal audit system,
orderly conduct the internal audit, internal control evaluation, risk management report, etc., strengthen the
supervision of investment and related transactions, and closely monitor the benchmarking of key indicators such
as coal price, coal consumption and electricity volume, thus to ensure the standard operation of the listed company.
Strengthen the supervision and accountability, implement the supervision measures, continue to correct the "four
behaviors", and soundly promote the party's work style and the clean government construction and anti-corruption
work, for creating a smooth and positive development environment for the Company.

5. Practice the concept of green development and vigorously promote the “clear water project”
In accordance with the concept of “Clear waters and green mountains are as good as mountains of gold and silver”,
we actively respond to the requirements by Guangdong Energy Group’s “Green Mountains and Clear Water
Project”, promote the construction of zero-emission wastewater project for subordinate core-fired power plants,
and carry out the whole process project supervision and management. We safely and smoothly promoted the
natural gas unit denitration system transformation, and implemented the ultra-low emission transformation project
of Yuejiang W-type flame boiler and circulating fluidized bed boiler. Upon in-depth study of environmental
regulations and policy situation, the Company strengthened the policy research and risk forecast, improved the
Company's environmental supervision institution and system construction, and actively identified and prevented
the environmental risks.




                                                                                                                    25
                                                   Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019




                                              V. Important Events
I. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period

1.Annual General Meeting

                                         Investor
                                                        Convened      Disclosure
      Meeting              Type        participation                                       Index to disclosed information
                                                          date           date
                                           ratio
First Provisional     Provisional
                                                                                   Announcement No.:2019-10)..
Shareholders’        Shareholders’                   February 21, February 22,
                                             72.72%                                Published in China Securities Daily, Securities
general meeting of    general                          2019         2019
                                                                                   Times and http//.www.cninfo.com.cn.
2019                  meeting
                      Annual
                                                                            Announcement No.:2019-25)..
2018 Shareholders’   Shareholders’
                                             73.26% May 21,2019 May 22,2019 Published in China Securities Daily, Securities
general meeting       General
                                                                            Times and http//.www.cninfo.com.cn.
                      Meeting
2. Preferred stockholders restored voting rights to request to convene Provisional Shareholders’ Meeting.
□Applicable√Not applicable

II. Proposal for profit distribution and converting capital Reserve into share actual for the reporting period

□ Applicable √Not applicable
For the reporting period, the Company plans not to distribute cash dividends or bonus shares or convert capital
reserve into share capital.

III. The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of the
reporting period made by the company, shareholder, actual controller, acquirer, director, supervisor,
senior management personnel and other related parities.

□ Applicable √Not applicable
There are no commitments that the company, shareholders, actual controller, offer or, directors, supervisors, senior
management or other related parties have fulfilled during the reporting period and have not yet fulfilled by the end
of reporting period.

IV. Particulars about engagement and disengagement of CPAs firm

Whether the semi-annual financial report had been audited?
□ Yes √ Not
The semi-annual report was not audited.

V. Explanations given by board of directors and supervisory board regarding “ Modified auditor’s” Issued
by CPAs firm for the reporting period

□ Applicable √ Not applicable




                                                                                                                                 26
                                                     Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


VI. Explanations given by Board of Directors regarding “ Modified auditor’s Report” Issued for last year

□ Applicable √ Not applicable

VII. Bankruptcy and restructuring

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

VIII. Legal matters

Significant lawsuits or arbitrations

√ Applicable □Not applicable
                                                                                                     Situation of
                                         Lawsuit      Whether
                                                                   Process of     Trial results and execution of Disclo
                                          amount     form into                                                            Disclosure
Basic situation of lawsuit(arbitration)                          lawsuit(arbitr    influences of     judgment of sure
                                        (RMB Ten     estimated                                                              index
                                                                     ation)     lawsuit(arbitration)    lawsuit    date
                                        thousands)   liabilities
                                                                                                     (arbitration)
On April 1, 2019, Guangdong
Huizhou Pinghai Power Plant Co.,
Ltd., a holding subsidiary to the
Company, received a set of legal
documents including the “Notice of
Responding to action”, “Subpoena”
and “Civil Indictment” from Huizhou
Intermediate People's Court of
                                                               The two
Guangdong Province, involving the
                                                               pre-trial
case of contract dispute of China
                                                               preparation
Energy Construction Group
                                                               meetings for
Guangdong Thermal Power
                                                               the case were    The lawsuit has not
Engineering Co., Ltd suing Pinghai                                                                                    Announceme
                                                               held in the      yet been heard.
Power Plant on Construction Project,                                                                                  nt
                                                               Intermediate     There are
with the case number of No.                                                                                           No.:2019-12)
                                                               People's         uncertainties in the
363-(2018) Yue Civil Action. The                                                                                      Published in
                                                               Court of         final judgment and
lawsuit claims include: 1. The Pinghai                                                                          April China
                                                               Huizhou City     execution, so it is
Power Plant is ordered to pay the      23,845.74        No                                             No       4,    Securities
                                                               Guangdong        temporarily
project amount of RMB 165,978,408                                                                               2019 Daily,
                                                               Province         impossible to judge
(principal) and interest of RMB                                                                                       Securities
                                                               respectively     the impact on the
72,478,979 (temporarily calculated as                                                                                 Times and
                                                               on May 14,       company's profits
for the period from May 1, 2011 to                                                                                    http//.www.c
                                                               2019 and July    in 2019 and
October 31, 2018, with the final                                                                                      ninfo.com.cn
                                                               18, 2019, the    beyond.
interest calculated as of the date of
                                                               court session
actual payment shall be calculated in
                                                               time is yet to
accordance with the benchmark
                                                               be
interest rate of similar loans of the
                                                               determined.
people's bank of China in the same
period) to Guangdong Thermal
Power; the above principal and
interest amount to RMB 238,457,387;
2. The Pinghai Power Plant is ordered
to bear all the litigation costs
including the acceptance fee and the
appraisal fee.
Other lawsuits


                                                                                                                                   27
                                                  Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


√ Applicable □Not applicable

                                         Whether
                                                                                                    Situation of
                               Lawsuit      form
                                                                            Trial results and       execution of
     Basic situation of         amount      into     Process of                                                   Disclosure Disclosure
                                                                             influences of          judgment of
    lawsuit(arbitration)      (RMB Ten estimate lawsuit(arbitration)                                                 date      index
                                                                          lawsuit(arbitration)         lawsuit
                              thousands)      d
                                                                                                    (arbitration)
                                         liabilities
On January 30, 2019, the
Company's holding                                                       There are uncertainties
                                                 The case was
subsidiary, Guangdong                                                   to the final judgment
                                                 originally scheduled
Huizhou Pinghai Power                                                   result and execution of
                                                 to be heard by
Plant Co., Ltd, received a                                              this lawsuit, and it’s
                                                 Huidong County
set of legal documents                                                  temporarily impossible
                                                 People's Court on
including the “Subpoena”                                              to judge the impact on
                                                 March 19, 2019. On
from the Huidong County                                                 the Company's profit in
                                                 February 2, 2019,
People's Court of                                                       2019 and beyond.
                                                 Pinghai Power Plant
Guangdong Province,
                                                 submitted an           The amount involved
involving the case China
                                                 “Application for      in this lawsuit is
Energy Construction Group
                                                 Jurisdiction           17,634,800 yuan. Upon
Guangdong Thermal Power
                                                 Objection” to the     the net profit of 474
Engineering Co., Ltd suing
                                                 Huidong County         million yuan
Pinghai Power Plant on
                                                 Court, requesting      attributable to the
construction contract
                                                 that the case be       shareholders of the
dispute of the flue gas
                                                 transferred to the     parent company in the
desulfurization project of
                                                 Huizhou                most recent period
Pinghai Power Plant, with      1,763.48    No                                                           No
                                                 Intermediate Court     (2018) of the
the case number of No.
                                                 for judge. The         Company, the net
164-(2019) Yue 1323 Civil
                                                 Huidong County         profit attributable to
Action. The litigation
                                                 People's Court made    shareholders of the
claims include: 1. Pinghai
                                                 a "Civil Ruling" on    parent company
Power Plant shall pay the
                                                 April 17, 2019,        affected by the amount
principal of RMB
                                                 dismissing Pinghai     involved in the above
12,080,480 and interest of
                                                 Power Company's        lawsuit is
RMB 5,554,310 for the
                                                 objection to the       approximately
construction payment to the
                                                 jurisdiction of the    7,935,700 yuan,
Guangdong Thermal Power
                                                 case. The court        accounting for 1.67%
company, with a total
                                                 session time of this   of the audited net profit
principal and interest of
                                                 case shall be          of the most recent
RMB 17,634,790; 2.
                                                 determined by the      period, which does not
Pinghai Power Plant shall
                                                 Huidong County         have a significant
bear all litigation costs
                                                 People's Court in      impact on the
including the acceptance
                                                 writing notice.        Company.
fee and the appraisal fee
incurred in the case.


IX. Punishments and rectifications

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

X. Credit conditions of the Company as well as its Controlling shareholder and actual Controller

□ Applicable √ Not applicable

XI. Equity incentive plans, employee stock ownership plans or other incentive measures for employees

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



                                                                                                                                    28
                                                  Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


XII. Material related transactions

1. Related transactions in connection with daily operation

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

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

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

3. Related-party transitions with joint investments

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

4. Related-party transitions with joint investments

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

5. Credits and liabilities with related parties

√ Applicable □Not applicable


(1)2019 daily related transactions were carried out after examination and approval by 2019 first provisional
shareholders' general meeting. Refer to (5) Related transactions of XII. Relationship between related parties and
the transactions between them of the Financial Report of this report for details.
(2) The Proposal on the Financial Services such as Making the Application of the Total Loan Limit of RMB 22
Billion and Handling the Deposit Settlement to the Related Party- Guangdong Yudean Finance Co., Ltd by the
Company and Some of its Subsidiaries was approved in the company’s 2018 annual general shareholder meeting
for implementation.
Website for temporary disclosure of the connected transaction
                     Announcement                            Date of disclosure              Website for disclosure
Estimates announcement of the Daily Related Party
                                                        January 26,2019             http//www.cninfo.com.cn.
Transactions of 2019
Announcement on the related party Transactions of
Guangdong Electric Power Development Co., Ltd. with     April 12,2019               http//www.cninfo.com.cn.
Guangdong Yudean Finance Co., Ltd.


XIII. Particulars about the non-operating occupation of funds by the Controlling shareholder and other
 related parties of the Company

□Applicable √ Not applicable
The company was not involved in the non-operating occupation of funds by the controlling shareholder and other
related parties during the reporting period.




                                                                                                                         29
                                             Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


XIV. Significant contracts and execution

1.Entrustments, contracting and leasing
(1) Trusteeship
√ Applicable □Not applicable
Statement of Trusteeship Situation :
According to the statement of GuangDong Energy Group on fulfilling relevant matters, and to avoid the horizontal
competition and fulfill the relevant commitment of the horizontal competition, the Company signed Stock
Trusteeship Agreement with GuangDong Energy Group, wherein the shareholder's rights within the trusteeship
range, except the ownership, right of earning and right of disposition, will be trusted to the Company, which is
predicted to charge 245,000 yuan as trustee fee per year. See details at the " Related Transaction Announcement
on Stock Trusteeship Agreement signed with GuangDong Energy Group Co., Ltd." published by the Company in
China Securities Daily, Securities Times and http://www.cninfo.com.cn on January 13, 2018(Announcement
No.2018-04).
Gains/losses to the Company from projects that reached over 10% in total profit of the Company in reporting
period
□Applicable √ Not applicable
No gains or losses to the Company from projects that reached over 10% in total profit of the Company in
reporting period

(2) Contract

□ Applicable √ Not applicable
No any contract for the Company in the reporting period.

(3) Lease

√Applicable □ Not applicable
Note As a lessee, the Company rented houses and billboards from Yudean Real Estate Company, and the rental fee
incurred this year was RMB3,455,180;
Note As a lessee, the Company rented Power Generation equipment from Yudean Finance Lease Comapny , and
the rental fee incurred this year was RMB31,569,867;
The parent company of the Company, as a leassor, leases the houses and parking spaces to units and individuals
such as Guangdong Electric Power Communication and Information Company and Guangdong Electric Power
Dispatching Center. The rental income for this year was confirmed to be RMB 680,980.
Project which generates profit or loss reaching over 10% of total profits of the Company during the Reporting
Period
□ Applicable √ Not applicable
There were no leases with a 10% or greater impact on the Company’s gross profit in the Reporting Period.

2.Guarantees

√Applicable □ Not applicable

                                                                                                                    30
                                                     Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


(1)Guarantees

                                                                                                                  Ten thousands yuan
                                         External Guarantee (Exclude controlled subsidiaries)
                              Relevant                                                                                     Guarantee
                                                           Date of                                              Complete
                             disclosure     Amount                          Actual                                             for
                                                      happening (Date                    Guarantee    Guarantee implemen
 Name of the Company date/No. of the           of                         mount of                                         associated
                                                          of signing                         type       term     tation or
                             guaranteed Guarantee                         guarantee                                          parties
                                                         agreement)                                                 not
                              amount                                                                                       (Yes or no)
Yunnan Baoshan
                                                                                       Guaranteeing
Binlangjiang                                          December 19,
                          May 24,2007           4,350                           2,030 of joint         15 years      No        No
Hydroelectricity                                      2007
                                                                                       liabilities.
Development Co., Ltd.
Yunnan Baoshan
                                                                                       Guaranteeing
Binlangjiang              December 19,                November 30,
                                                4,350                             319 of joint         15 years      No        No
Hydroelectricity          2007                        2007
                                                                                       liabilities.
Development Co., Ltd.
Yunnan Baoshan
                                                                                       Guaranteeing
Binlangjiang
                          May 27,2009           9,367 June 22,2009              5,307 of joint         18 years      No        No
Hydroelectricity
                                                                                       liabilities.
Development Co., Ltd.
Yunnan Baoshan
                                                                                       Guaranteeing
Binlangjiang
                          May 27,2009           7,250 May 27,2009               1,450 of joint         14 years      No        No
Hydroelectricity
                                                                                       liabilities.
Development Co., Ltd.
                                                                          Total actually amount of
   Total amount of approved external
                                                                          external guarantee in the                               -725
   guarantee in the report period(A1)
                                                                              report period(A2)
                                                                          Total actually amount of
   Total amount of approved external
                                                                          external guarantee at the
    guarantee at the end of the report                          190,835                                                          9,106
                                                                               end of the report
               period(A3)
                                                                                  period(A4)
                                            Guarantee of the company for its subsidiaries
                                                             Date of                                            Complete Guarantee
                              Related                                      Actually
 Name of the company                       Amount of happening(date                      Guarantee    Guarantee implemen for related
                           announcement                                   guarantee
       guaranteed                           guarantee      of signing                       type        term     tation or    party
                            date and no.                                   amount
                                                          agreement)                                                not    (yes or no)
                                                                                       Guaranteeing
Zhanjiang Wind Power                                    October 9,
                          April 29,2009       18,571.7                          7,152 of joint         18years      No         No
Generation Co., Ltd.                                    2010
                                                                                       liabilities.
Guangdong Shaoguan                                                                     Guaranteeing
                          November 16,                  January 28,
Yuejiang Power                                    9,000                         1,350 of joint         7 years      No         No
                          2013                          2014
Generation Co., Ltd.                                                                   liabilities.
Guangdong Shaoguan                                                                     Guaranteeing
                          November 16,                  January 29,
Yuejiang Power                                    8,100                           450 of joint         7 years      No         No
                          2013                          2014
Generation Co., Ltd                                                                    liabilities.
                                                                         Total of actual guarantee
   Total of guarantee for subsidiaries
                                                                         for subsidiaries in the                              -2,488.3
       approved in the period(B1)
                                                                         period (B2)
                                                                         Total of actual guarantee
Total of guarantee for subsidiaries
                                                                141,536 for subsidiaries at                                   8,951.55
approved at period-end(B3)
                                                                         period-end(B4)
                                     Guarantee of the subsidiaries for the controlling subsidiaries
   Name of the       Relevant disclosure                Date ofhappening Actual                                 Complete Guarantee
                                           Amount of                                      Guarantee   Guarantee
     Company            date/No. of the                  (Date osigning mount of                                implemen     for
                                           guarantee                                           type     term
    guaranteed        guaranteed amount                    agreement)       guarantee                             tation associated


                                                                                                                                     31
                                                  Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


                                                                                                              or not     parties
                                                                                                                       (Yes or no)
The Company’s total guarantee(i.e.total of the first three main items)
Total guarantee quota approved                                     Total amount of guarantee
in the reporting period                                            actually incurred in the                               -3,213.3
(A1+B1+C1)                                                       reporting period(A2+B2+C2)
Total guarantee quota already                                      Total balance of the actual
   approved at the end of the                             332,371 guarantee at the end of the                            18,057.55
   reporting period(A3+B3+C3)                                    reporting period(A4+B4+C4)
The proportion of the total amount of actually guarantee in the
                                                                                                                            0.74%
net assets of the Company (that is A4+B4+C4)%
Including:
The debts guarantee amount provided for the
Guaranteed parties whose assets-liability ratio exceed                                                                     10,906
70% directly or indirectly(E)
Total guarantee Amount of the abovementioned guarantees
                                                                                                                           10,906
(D+E+F)
Description of the guarantee with complex method

(2) Illegal external guarantee

□ Applicable √ Not applicable

No Illegal external guarantee in the report period.

3. Other significant contract

□ Applicable √ Not applicable
No other significant contracts for the Company in reporting period.
XV. Social responsibilities


1.Major environmental protection

The Listed Company and its subsidiary whether belongs to the key sewage units released from environmental
protection department
Yes
                Main
                pollutant                        Emission                                                  Verified
  Company or                            Emission                Emission                            Total           Excessive
                and       Emission               port                       Implemented pollutant          total
   subsidiary                           port                  concentration                       emission          emission
                specific way                     distribution                 emission standards           emission
     name                               number                  (mg/Nm3)                           (Tons)           condition
                pollutant                        condition                                                 (Tons)
                name
                                                                            Emission Standard of
                          Concentrat
                                                                            Air Pollutants for
Shajiao A power           ed emission             Within the
                Smoke                      2                           1.73 Thermal Power Plants      20.05      20.05      No
plant                     through                  factory
                                                                            (GB13223-2011)
                          chimney
                                                                            special emission limit
                                                                            Emission Standard of
                          Concentrat
                                                                            Air Pollutants for
Shajiao A power           ed emission             Within the
                SO2                        2                          16.20 Thermal Power Plants     187.75     187.75      No
plant                     through                  factory
                                                                            (GB13223-2011)
                          chimney
                                                                            special emission limit
Shajiao A power           Concentrat              Within the                Emission Standard of
                NOX                        2                          26.13                          302.89     302.89      No
plant                     ed emission              factory                  Air Pollutants for

                                                                                                                                 32
                                            Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


                          through                                    Thermal Power Plants
                          chimney                                    (GB13223-2011)
                                                                     special emission limit
                                                                     Emission Standard of
                          Concentrat
Guangdong                                                            Air Pollutants for
                          ed emission       Within the
Yudean Dapu       Smoke                 2                       1.51 Thermal Power Plants      13.776       593    No
                          through            factory
Power Plant                                                          (GB13223-2011)
                          chimney
                                                                     special emission limit
                                                                     Emission Standard of
                          Concentrat
Guangdong                                                            Air Pollutants for
                          ed emission       Within the
Yudean Dapu       SO2                   2                       8.45 Thermal Power Plants      77.257      1447    No
                          through            factory
Power Plant                                                          (GB13223-2011)
                          chimney
                                                                     special emission limit
                                                                     Emission Standard of
                          Concentrat
Guangdong                                                            Air Pollutants for
                          ed emission       Within the
Yudean Dapu       NOX                   2                      24.75 Thermal Power Plants     226.303      1502    No
                          through            factory
Power Plant                                                          (GB13223-2011)
                          chimney
                                                                     special emission limit
                                                                     Emission Standard of
                          Concentrat
Zhanjiang                                                            Air Pollutants for
                          ed emission       Within the
Zhongyue         Smoke                  2                       1.38 Thermal Power Plants       11.33       480    No
                          through            factory
Energy Co., Ltd.                                                     (GB13223-2011)
                          chimney
                                                                     special emission limit
                                                                     Emission Standard of
                          Concentrat
Zhanjiang                                                            Air Pollutants for
                          ed emission       Within the
Zhongyue         SO2                    2                      13.10 Thermal Power Plants      107.92      1200    No
                          through            factory
Energy Co., Ltd.                                                     (GB13223-2011)
                          chimney
                                                                     special emission limit
                                                                     Emission Standard of
                          Concentrat
Zhanjiang                                                            Air Pollutants for
                          ed emission       Within the
Zhongyue         NOX                    2                      25.07 Thermal Power Plants      206.53      1587    No
                          through            factory
Energy Co., Ltd.                                                     (GB13223-2011)
                          chimney
                                                                     special emission limit
Guangdong                                                            Emission Standard of
                          Concentrat                     330MW:
Shaoguan                                                             Air Pollutants for
                          ed emission       Within the   6.35
Yujiang Power     Smoke                 2                            Thermal Power Plants       28.18     358.89   No
                          through            factory     600MW:
Generation Co.,                                                      (GB13223-2011)
                          chimney                        1.16
Ltd.                                                                 special emission limit
Guangdong                                                            Emission Standard of
                          Concentrat                     330MW:
Shaoguan                                                             Air Pollutants for
                          ed emission       Within the   80.84
Yujiang Power     SO2                   2                            Thermal Power Plants      355.70 1151.78      No
                          through            factory     600MW:
Generation Co.,                                                      (GB13223-2011)
                          chimney                        12.22
Ltd.                                                                 special emission limit
Guangdong                                                            Emission Standard of
                          Concentrat                     330MW:
Shaoguan                                                             Air Pollutants for
                          ed emission       Within the   93.46
Yujiang Power     NOX                   2                            Thermal Power Plants      499.12     1404.5   No
                          through            factory     600MW:
Generation Co.,                                                      (GB13223-2011)
                          chimney                        25.42
Ltd.                                                                 special emission limit
                                                                     Emission Standard of
                          Concentrat
Zhanjiang                                                            Air Pollutants for
                          ed emission       Within the                                                       Not
Electric Power    Smoke                 2                          1 Thermal Power Plants       14.40              No
                          through            factory                                                    approved
Co., Ltd.                                                            (GB13223-2011)
                          chimney
                                                                     special emission limit
                          Concentrat                                 Emission Standard of
Zhanjiang
                          ed emission       Within the               Air Pollutants for                      Not
Electric Power    SO2                   2                         13                           141.14              No
                          through            factory                 Thermal Power Plants               approved
Co., Ltd.
                          chimney                                    (GB13223-2011)


                                                                                                                        33
                                            Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


                                                                   special emission limit
                                                                   Emission Standard of
                          Concentrat
Zhanjiang                                                          Air Pollutants for
                          ed emission       Within the                                                    Not
Electric Power   NOX                    2                       28 Thermal Power Plants     298.65              No
                          through            factory                                                 approved
Co., Ltd.                                                          (GB13223-2011)
                          chimney
                                                                   special emission limit
                                                                   Emission Standard of
Guangdong                 Concentrat
                                                                   Air Pollutants for
Yudean Jinghai            ed emission       Within the
                 Smoke                  2                     1.99 Thermal Power Plants      46.08      1770    No
Power General             through            factory
                                                                   (GB13223-2011)
Co., Ltd.                 chimney
                                                                   special emission limit
                                                                   Emission Standard of
Guangdong                 Concentrat
                                                                   Air Pollutants for
Yudean Jinghai            ed emission       Within the
                 SO2                    2                    17.54 Thermal Power Plants     405.84      6502    No
Power General             through            factory
                                                                   (GB13223-2011)
Co., Ltd.                 chimney
                                                                   special emission limit
                                                                   Emission Standard of
Guangdong                 Concentrat
                                                                   Air Pollutants for
Yudean Jinghai            ed emission       Within the
                 NOX                    2                    32.86 Thermal Power Plants     760.13      4687    No
Power General             through            factory
                                                                   (GB13223-2011)
Co., Ltd.                 chimney
                                                                   special emission limit
                                                                   Emission Standard of
                          Concentrat
Guangdong Red                                                      Air Pollutants for
                          ed emission       Within the                                                    Not
Bay Power         Smoke                 4                     3.12 Thermal Power Plants      52.35              No
                          through            factory                                                 approved
General Co., ltd.                                                  (GB13223-2011)
                          chimney
                                                                   special emission limit
                                                                   Emission Standard of
                          Concentrat
Guangdong Red                                                      Air Pollutants for
                          ed emission       Within the                                                    Not
Bay Power         SO2                   4                     9.10 Thermal Power Plants     163.18              No
                          through            factory                                                 approved
General Co., ltd.                                                  (GB13223-2011)
                          chimney
                                                                   special emission limit
                                                                   Emission Standard of
                          Concentrat
Guangdong Red                                                      Air Pollutants for
                          ed emission       Within the                                                    Not
Bay Power         NOX                   4                    23.88 Thermal Power Plants     421.55              No
                          through            factory                                                 approved
General Co., ltd.                                                  (GB13223-2011)
                          chimney
                                                                   special emission limit
                                                                   Emission Standard of
Maoming                   Concentrat
                                                                   Air Pollutants for
Zhenneng                  ed emission       Within the
                 Smoke                  2                     1.69 Thermal Power Plants      11.06     168.12   No
Thermal power             through            factory
                                                                   (GB13223-2011)
Co., Ltd.                 chimney
                                                                   special emission limit
                                                                   Emission Standard of
Maoming                   Concentrat
                                                                   Air Pollutants for
Zhenneng                  ed emission       Within the
                 SO2                    2                    12.35 Thermal Power Plants      88.72     385.51   No
Thermal power             through            factory
                                                                   (GB13223-2011)
Co., Ltd.                 chimney
                                                                   special emission limit
                                                                   Emission Standard of
Maoming                   Concentrat
                                                                   Air Pollutants for
Zhenneng                  ed emission       Within the
                 NOX                    2                    35.85 Thermal Power Plants     214.58     689.58   No
Thermal power             through            factory
                                                                   (GB13223-2011)
Co., Ltd.                 chimney
                                                                   special emission limit
                                                                   Emission Standard of
Guangdong                 Concentrat
                                                                   Air Pollutants for
Huizhou Pinghai           ed emission       Within the
                 Smoke                  2                     2.54 Thermal Power Plants      16.59       700    No
Power Plant Co.,          through            factory
                                                                   (GB13223-2011)
Ltd.                      chimney
                                                                   special emission limit
Guangdong        SO2      Concentrat    2   Within the       25.16 Emission Standard of     317.55      3500    No


                                                                                                                     34
                                              Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


Huizhou Pinghai          ed emission          factory                Air Pollutants for
Power Plant Co.,         through                                     Thermal Power Plants
Ltd.                     chimney                                     (GB13223-2011)
                                                                     special emission limit
                                                                     Emission Standard of
Guangdong                Concentrat
                                                                     Air Pollutants for
Huizhou Pinghai          ed emission         Within the
                 NOX                   2                       38.46 Thermal Power Plants     476.21      1750    No
Power Plant Co.,         through              factory
                                                                     (GB13223-2011)
Ltd.                     chimney
                                                                     special emission limit
Guangdong                                                            Emission Standard of
                         Concentrat
Guohua Yudean                                                        Air Pollutants for
                         ed emission         Within the                                                     Not
Taishan Power Smoke                    6                        2.17 Thermal Power Plants      60.26              No
                         through              factory                                                  approved
Generation Co.,                                                      (GB13223-2011)
                         chimney
Ltd.                                                                 special emission limit
Guangdong                                                            Emission Standard of
                         Concentrat
Guohua Yudean                                                        Air Pollutants for
                         ed emission         Within the                                                     Not
Taishan Power SO2                      6                       14.05 Thermal Power Plants     390.45              No
                         through              factory                                                  approved
Generation Co.,                                                      (GB13223-2011)
                         chimney
Ltd.                                                                 special emission limit
Guangdong                                                            Emission Standard of
                         Concentrat
Guohua Yudean                                                        Air Pollutants for
                         ed emission         Within the                                                     Not
Taishan Power NOX                      6                       27.61 Thermal Power Plants     767.16              No
                         through              factory                                                  approved
Generation Co.,                                                      (GB13223-2011)
                         chimney
Ltd.                                                                 special emission limit
                                                                     Emission Standard of
                         Concentrat
                                                                     Air Pollutants for
Qianwan LNG              ed emission         Within the
                   NOX                 3                       15.42 Thermal Power Plants     100.77     1312.5   No
power plant              through              factory
                                                                     (GB13223-2011)
                         chimney
                                                                     special emission limit
                                                                     Emission Standard of
                         Concentrat
                                                                     Air Pollutants for
Huizhou LNG              ed emission         Within the
                   NOX                 6                       28.69 Thermal Power Plants      636.5      2033    No
power plant              through              factory
                                                                     (GB13223-2011)
                         chimney
                                                                     special emission limit
Prevention and control of pollution facilities construction and operation
In accordance with the national environmental protection plan, each power plant of the company implements
positively requirements of Coal-fired Power Energy Saving and Emission Reduction Upgrading and Transform
Action Plan (2014-2020) and National Energy Administration Comprehensive Division Notice about
Decomposition and Implementation of Coal-fired Power Energy Saving and Emission Reduction Upgrading and
Transform Target Tasks, etc. and promotes the ultra-low emission transformation project. At present, the
company's subordinate coal-fired units have all completed ultra-low emission transformation work, and the
emission concentration of export flue gas pollutants has been greatly reduced on the basis of the original
environmental emission standards, During the reporting period, the pollution control facilities built in the
subordinate power plants operated normally.
Conditions of environmental impact assessment and other environmental protection administrative licensing of
construction projects

The company's construction projects that have been approved by government agencies have all undergone
environmental impact assessments and have obtained other necessary environmental protection administrative
licenses.

Emergency plan for emergency environmental incidents


                                                                                                                       35
                                              Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


Combining with the Environmental Protection Law of the People's Republic of China and the Opinions of the
Ministry of Environmental Protection on Strengthening Environmental Emergency Management Work and other
laws and regulations on the monitoring of environmental risks, the company’s subordinate power generation
enterprises have formulated the Emergency Plan for Emergency Environmental Incidents according to their actual
conditions, which has standardized and improved the handling of emergent environmental events from the aspects
of environmental accident risk analysis, emergency command organization and responsibilities, disposal
procedures, and disposal measures, improved the ability to respond to unexpected environmental events, and
ensured that after an outbreak of an environmental incident, the company can organize emergency rescue work in
a timely, orderly and efficient manner to prevent pollution of the surrounding environment, minimize the damage
and social harm caused by the incident, maintain social stability, and protect public health and property safety.

Environmental self-monitoring program

During the reporting period, the company’s subordinate power generation companies organized annual
environmental self-monitoring programs in accordance with the national Administrative Measures on Automatic
Monitoring of Pollution Sources (No. 28 order of State Environmental Protection Administration) and other laws
and regulations, and conducted self-monitoring of the environment in accordance with the monitoring program,
and announced its own monitoring results in Guangdong Province's key pollution source regulatory information
platform and the national pollution source monitoring information and sharing platform. Both the announced rate
and completion rate had reached 100%.

Other environmental information that should be disclosed

Nil
Other environmental protection related information

Nil
2.Overview of the annual targeted poverty alleviation
(1)Precise poverty plan
The Company will in depth implement the spirits of the Central work Conference on Poverty Alleviation and the
Development and General Secretary Xi Jinping's series of important speeches on poverty alleviation and the
development, and in accordance with the Guangdong Provincial people's Government's "Opinions on the
implementation of Three years Strongly Tackling Difficulties on Precision Poverty Alleviation and Precision
Poverty Reduction in the New Time" and the overall plan and arrangement of Guangdong Province's 2016-2018
of new time of "Precision Poverty Alleviation and Precision Poverty Reduction", by adhering the concept of
innovation, coordination, green, open and shared development, the Company will strengthen the awareness of the
overall situation and the sense of responsibility of “The Rich fist leads latter, and realize the common prosperity”,
fully utilize the advantages, carry out the measures of precision poverty alleviation to the village-under-aid,
effectively enhance the local “vitality-making” function, focus on boosting the village’s collective economic
strength, developing the environment and society and people’s livelihood, thus to increase the income of
poverty-alleviation objects, so as to ensure the accomplishment of various project goals and tasks.
1. Soundly do the work of the poverty alleviation by industry development. Formulate the characteristic industry
development for the village-under-aid, implement the “one village, one product” industry promotion action, tap
into the resources advantages, precisely select the dominant industry and the dominant products, support the
construction of characteristic agricultural bases with high participation of poverty households, support the large
agricultural households and professional cooperatives , small and micro enterprises and so forth agricultural


                                                                                                                     36
                                              Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


operation bodies to speed up the development. Explore the “Internet + Precision Poverty Alleviation” model,
strengthen the training of rural E-commerce merchants in poor villages, and encourage farmers to open online
stores for self-development.
2. Explore the poverty alleviation by shares. Promote the income-increase mode of poor village collective
economy, allow the financial special poverty alleviation funds and other agricultural-related funds to invest in
facilities such as agriculture, farming, industrial parks, hydropower, rural tourism and so forth without changing
their use purposes, and the resulting asset income can be converted to shares quantization to poor villages and
poor households. Cooperate with the local to explore and promote the rights confirmation of land management
with accordingly converting to shares, guide poverty-stricken households, especially those who are incapable of
working, to voluntarily transfer the land management rights according to law, and use assets such as land,
agricultural facilities, and poverty alleviation funds to price to convert into shares, gaining the operating income
according to shares.
3. Cooperation in training and employment. Oriented towards enhancing the ability of the poor to get employment,
assist to carry out the all kinds of policy training, promote the relevant vocational and technical colleges to recruit
children from poor families, thus to enable them to achieve skills to get out of poverty.
4. Improve the infrastructure. Cooperate with the local to improve the traffic conditions and development
environment in the village-under-aid; support and help key villages-under-aid of the safe drinking water projects;
improve farmland water conservancy facilities; improve sewage facilities; improve the garbage collection and
treatment and the cleaning system; improve village cultural and leisure activities, public toilets, landscaping and
greening and other facilities; ensure that the relevant indicators meet the provincial standards.
5. Boost the education culture. In coordination with the local education and cultural departments, the Company
will vigorously promote the poverty alleviation through education so that all children in the villages-under-aid can
receive a good education, increase the education subsidies for poor families, ensure that children from poor
households do not drop out of school due to poverty, pay attention to left-behind children, and build left-behind
children's service centers.
6. Help to improve the environment. Cooperate with the local to raise funds by multi-channels to help
impoverished households complete the renovation of dilapidated buildings and fully complete the task of assisting
low-income people in housing reconstruction, assisting in the improvement of domestic garbage disposal, sewage
treatment, public toilets and greening and beautification of villages. We will use the entire village as a platform to
accelerate the improvement of production and living conditions of poor villages, and steadily promote the
construction of beautiful livable villages to realize the new appearance of the old villages.
7. Consolidate the grassroots foundation. Cooperate with the local people to adhere to the Party building and
poverty alleviation both at the same time, with the party building to help the poor and with the poverty alleviation
to promote the party building. Organize and hold regular meetings of the "two committees" meetings of the
villages to study the work of aiding the poor; the assigned cadres should assist the "two committees of the village"
to do a good job in organizing the masses, serving the masses, uniting the masses, and enhancing the ability of the
cadres of the "two committees" of the poor villages to lead the people out of poverty and run to health; It’s
necessary to constantly strengthen the development consciousness, market awareness, teaching ideas, teaching
methods and teaching experience of cadres at the grass-root level, mobilizing the grass-root level cadres,
strengthen the grass-root organizations, muster up the drive to fight against poverty, and build up “The
never-leaving Task Force on Poverty Alleviation”, thus to lay the foundation for the sustainable and healthy
development of poor villages.
8. Lead multiple parties to participate in. Guide industries, enterprises, social organizations and individuals to


                                                                                                                     37
                                              Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


participate in poverty alleviation, and encourage companies to actively undertake social responsibilities, fully
stimulate the market's vitality, and help villages to invest in industries, develop training skills, absorb employment,
and help the poor with donated money through various forms such as resource development and joint construction
of villages and enterprises.


9. Strengthen the publicity for poverty alleviation. Adhere to the guidance of public opinion, comprehensively
publicize and accurately interpret the decision-making and deployment of “Precision poverty alleviation and
Precision poverty reduction”, strengthen the ideological education and guidance, and strengthen the cadres and the
masses' centripetal force and cohesion in poverty alleviation work and the development work. Guide the villagers
to change the obsolete customs and habits, stimulate the impoverished people to work hard and develop good
enthusiasm, and create a positive atmosphere for self-reliance, hard-working and getting rid of poverty and
becoming better off.

(2)Half-year poverty relieving summary

During the reporting period, the company actively implemented the overall deployment and arrangement of
Guangdong province's work on "targeted poverty relief and targeted poverty alleviation", actively invest human,
material and financial resources in poverty relief work, and its six subsidiaries, namely Yuejiang company, Red
bay company, Zhenneng company, Zhanjiang company, Dabu company and Zhanjiang wind power company,
actively carried out targeted poverty relief assistance work.
I Counterpart assistance of Yuejiang Company on Mi Xiashui village, Quan’an Town, Nan Xiong City
2019 is the key year for winning the first 100-year goal of building a well-off society in an all-round way and
winning the battle against poverty. According to the arrangement of relevant documents of the provinces and cities,
Yuejiang Power Generation Company selected a cadre to serve as the party building instructor in the villages in
the second phase of provincial poverty-stricken villages to assist Shaoguan Municipal Government Office in
carrying out targeted poverty relief and targeted poverty alleviation work in Mixiashui Village:
1. Strengthen Party building. Centering on the deployment requirements of the central government, provinces,
cities and counties on the Party's construction to promote poverty alleviation, and in combination with the actual
situation in Nanxiong City and Quan'an Town, efforts are focused on "grasping points, expanding areas,
improving quality and strengthening capabilities" to give full play to the exemplary and leading role of Party
members. On June 27, a meeting of members of the general party branch of Mixiashui Village was held to
organize party lectures-Interpretation of the Regulations on Education Management of Party Members and
Interpretation of the Regulations on the Work of Party Branch.
2. Well ensure the people's livelihood. Fully implement the "Three Guarantees" policy and complete the reporting
of information on the dilapidated house reconstruction project for poor household Ye Chengxiang; Fully
implement poverty relief education guarantee for poor households in accordance with the policy requirements;
Promote full coverage of medical insurance, fully implement the medical insurance policy, and subsidize 41 poor
households to purchase urban and rural medical insurance; Send warm condolences to poor households, and send
warm condolences to all poor households in January before the Spring Festival.
3. Accurate identification: in early June, the work team stationed in the village, together with town cadres and
village cadres, conduct on-door visit to acquire the poverty information of Yao Shihui and Ye Chengming, and
reported the information to Nanxiong Poverty Relief Office after comprehensive analysis and verification. Yao
Shihui and Ye Chengming are to be included in the poor households.


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                                              Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


4. In 2019, it will continue to build 4 boutique villages, including Liaowu Village, Yaowu Village, Liuwu Village
and Shigang Village. In the first half of the year, it has basically completed the "three clean-ups and three
dismantlements" of relevant sections, actively won the support of superior policies, and made solid progress in the
construction of new rural demonstration villages.
5. According to the requirements of the Implementation Plan of "Award Instead of Compensation" for Targeted
Poverty Relief and Targeted Poverty Alleviation in Nanxiong City in 2019, the" Award instead of Compensation"
will be implemented for pig raising and peanut planting by poor households in the first half of the year.
6. Work hard to promote poverty relief through high-quality rice and passion fruit industries. Urge Mixiahui
Village Zhongzhi Cooperative to sign a high-quality rice purchase agreement with Nanxiong Jinyou Company, to
unify the external sales through the cooperative, open up the high-quality rice sales market, and improve the
market bargaining power; Relying on Mixiashui Village Passion Fruit Planting Demonstration Base, actively
guide and help 10 poor households in Mixiashui Village to participate in passion fruit planting, regularly provide
technical guidance to growers, and operate it through the "enterprise+cooperative+poor households" business
model, carry out planting and management according to unified standards, and adopt reserve price for purchase to
ensure the income of poor households.


II. Counterpart assistance of Red Bay Company on Outian Village, Luoxi Town, Luhe County

(I) Actively complete and promote village project construction
1. Assist on the village collective economic development projects. Organize poor households to carry out sweet
potato planting and bee breeding projects.
2. Implement the income from the investment in Xinhe Industrial Park Targeted Poverty Relief Industrial Park
Project. In order to establish a long-term poverty alleviation mechanism and prevent repoverty after poverty
alleviation, with the village collective as the main body, use the aid fund to invest by shares in the industrial park.
The aid unit helps the village by investing 1 million yuan aid fund, with a 10% guaranteed bonus every year. The
revenue of OCT Luoxigu tourism project is 500,000 yuan, with a 10% guaranteed bonus every year, for poverty
alleviation of poor households.
3. Carry out the training program on poor people's labor skills and transfer of employment. According to the needs
of the poor, 50 people from poor households are organized for training in agricultural applicable technologies and
50 people for training in relevant contents of employment transfer. A total of 15,620 yuan is invested in training.
4. Actively introduce OCT Luoxi Valley Project. The stationed work team actively coordinated and communicated
with the OCT in eastern Shenzhen and actively contacted relevant county departments. In June 2017, the OCT
Eastern Group in Shenzhen officially settled in Otian Village to launch the OCT Luoxigu rural tourism project. In
June 2018, the OCT Luoxigu rural tourism project was officially put into use. In the first half of 2019, through the
development of the rural tourism industry, poverty alleviation were conducted for poor households.
5. A total of 295,000 yuan was invested to complete the construction of Outian Village Party and Mass Service
Center.
(II) Conduct full deployment and active implementation, and actively promote the completion of household
project construction.
1. Actively implement the poverty reduction plan. According to the plan issued by the county poverty relief office,
217 people from 52 households have completed poverty alleviation by the first half of 2019, and 11 people from
the remaining 3 households failed. The main reason for the poverty alleviation failure is that the renovation of
dilapidated houses has not been accepted, and the economic income has reached the conditions for poverty
alleviation. The poverty alleviation plan issued by the county poverty relief office is completely overfulfilled.

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                                              Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


2. Vigorously promote medical insurance and social security assistance. 240 people are helped on purchasing
health insurance and social security costs.
3. Provide the living allowance for 59 students from poor families.
(III) Strengthen the grass-roots party building work, arrange the team to actively participate in and organize the
three meetings & one lesson, and two studies & one practice of the village and the spirit of the party's 19th
congress special study activities to lay a good political foundation for the village's poverty alleviation and new
rural construction work.
(IV) Renovation of dilapidated buildings. Of the 22 dilapidated buildings to be renovated for poor households, 19
have been accepted, and 3 are to be accepted.
III. Counterpart assistance of Zhenneng Company on Xinpo Village, Shalang Town, Dianbai District, Maoming
City

1. Well ensure in preparing for the two-stage 2018 targeted poverty relief assessment in Dianbai District and
Maoming City, successfully pass the two-stage poverty relief effectiveness assessment, and finally score 98 points
in the Maoming municipal assessment.
2. Carry out partner assistance. According to personnel changes and work needs, timely adjust the person
responsible for partner assistance, and implement the "one-on-one" partner assistance requirements; Those
responsible for assistance should visit poor households at least once a quarter to understand the existing problems,
analyze the causes, formulate and implement assistance measures, adhere to the combination of poverty relief and
motivation, daily assistance and temporary relief, material assistance and spiritual encouragement, continuously
improve the awareness of poor households, play their main roles, and achieve stable poverty alleviation through
their own efforts. Carry out the identification of poor households and new work. In 2019, Xinbei Village plans to
add 1 poor household. After the application of villager Liao Taohua's household (with a population of 3, secondary
physical disability, no labor force, 8-year-old boy and 5-year-old boy) of Xinbei Zhaixia Village, the site
inspection by the village two committees and the poverty alleviation team stationed in the village, the discussion
at the meeting of the village two committees, the voting at the villagers' congress, the publicity at the village level
and other procedures, Xinbei Village submitted relevant materials to the poverty relief office of Shalang Town on
June 3 and has now entered the publicity stage at the township level. In addition, in mid-June, the Social Affairs
Office of Shalang Town has been urged to submit materials to the higher authorities to include Liao Taohua's two
sons in the minimum living allowance. They are with no labor force, thus should be guaranteed for living by the
Guangdong Development Bank Maoming Branch in form of partner assistance.
3. Poverty Relief Industrial Park. According to the work plan, from April 2019, the leek industrial park (60 mu) in
Xinbei Village will be transformed into pomegranate industrial park (50 mu). It is planned to invest 300,000 yuan
in 2019 to plant red heart guava, which will bear fruits in the beginning of 2020, with a planting duration of 10
years. By June 30, 2019, land leveling, planting and the first weeding have been completed. The construction of
water and fertilizer integration is almost completed, with an investment of more than 180,000 yuan.
4. Poverty relief condolences. On the eve of the Spring Festival and July 1, support units and support responsible
persons are organized to visit poor households in the village and send gifts and holiday greetings.
5. Organize people with working ability in some poor households to participate in the car beauty related business
skills training in Shalang Town, to improve the skill level of poor workers; On the other hand, mobilize and assist
poor workers to participate in job fairs organized by Dianbai District, to go out for work or to find jobs nearby, so
as to raise their incomes through active working. Follow up the provision of public welfare posts and the
implementation of relevant treatment.
IV. Counterpart assistance of Zhanjiang Company on Waiyuan Village, Nanxing Town, Leizhou City

                                                                                                                     40
                                              Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


In the first half of 2019, the company's poverty relief staff, under the care and leadership of the company's party
committee and in accordance with the unified arrangements of the provincial party committee, the provincial
government and Zhanjiang city, have carried out all kinds of poverty relief work in a down-to-earth and earnest
manner. The stationed working group has visited the poor households many times to understand the situation of
the poor households, held meetings with all the village cadres to study the poverty relief work and worked out
assistance measures. Now, all the projects for the poor households have been implemented and have yielded
benefits. This is summarized as follows:
(I) Long-term poverty relief projects
1. The investment in photovoltaic power generation projects has been completed and has yielded benefits.
2. The investment in Guangdong Yujie Ecological Agriculture Development Co., Ltd. has been completed, and
began to make profits in 2019.
3. The investment in Leizhou city grazing pig breeding integration industry has been completed, and began to
make profits in 2019.
(II) Public welfare projects supported by Zhanjiang Power Company until the first half of 2019
1. Two villager drinking water construction projects, with an investment of 79,900 yuan.
2. Construction of sewage ditches and garbage ponds, with an investment of 62,000 yuan.
3. Sports facilities construction, with an investment of 124,000 yuan.
4. Construction of village committee and party building, with an investment of 110,000 yuan.
5. Renovation of dilapidated buildings for poor households, costing 38,000 yuan.
6. Festival condolences to poor households, costing 90,000 yuan.
(III) Work to be carried out in the first half of 2019
1. Organize and improve the poverty relief materials.
2. Organize to assist the village committee to carry out party building work.
3. Organize and hold eight poverty relief work meetings.
4. Organize and assist the village committee to carry out the rural revitalization work.
5. Organize to assist the village committee to carry out the "anti-crime" work.
6. Organize and assist village committees to carry out anti-drug work.
7. Organize to assist the village committee to carry out the "three demolitions and three clean-ups".
8. Organize party members to attend two party classes and six party day activities.
9. Visit poor households from time to time.
V. Counterpart assistance of Dapu Company on Xiamu Village, Fenglang Town, Dapu County, Meizhou City

In 2019, the company continued to send a middle management officer as the first secretary to assist Jianghai
Sub-district Office in Haizhu District of Guangzhou to help Xiamu Village, Fenglang Town, Dabu County,
Meizhou City, and carried out the following assistance work:
1. Solid Party building at the grass-roots level: It invested 29,500 yuan in the construction of the activity room for
new members of the village committee, purchased a number of office desks and chairs, and ensured to display the
publicity column for Party building and system on the wall;
2. Carry out activities to celebrate the 98th anniversary of the Party founding, offer condolences to four
60-year-old Party members, and organize Party members to carry out revolutionary traditional education on the
theme of "Stay true to the mission, and keep in mind the mission";
3. Invest 21,000 yuan for the Spring Festival condolences of 70 poor households;
4. As of June 30, 2019, through dynamic management, the whole village has 70 poor households with 142 people,
in which 65 households with 133 people completed the poverty alleviation, accounting for 93.7% of the

                                                                                                                     41
                                                     Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


poverty-stricken population. Among them, there are 19 people from 8 general poor households, 15 people from 15
households with five living guarantees and 99 people from 42 households with minimum living guarantees.


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

In the first half of 2019, Zhanjiang Wind Power Company will continue to carry out targeted poverty relief work
in Houhai Village, Xinliao Town, Xuwen County, and Shuitou Village, He'an Town (serving as the party
construction instructor in the village). Under the strong leadership of the Party committee at the higher level, the
strong cooperation of the cadres of the "two committees" in the village and the efforts of the stationed team,
various poverty relief projects have been actively implemented for poor households, and the utilization rate of
special funds for poverty relief in provinces and cities has reached 100%. In addition, self-raised funds from
support units are used to help poor households and village collectives to solve practical difficulties. In addition, in
order to achieve targeted policy implementation, targeted assistance, fully reflect the characteristics of one
policy for one family, and actively explore highlights, thus affecting and driving the poor households around to
find ways to increase their income, achieve stable poverty alleviation and prosperity, and achieved remarkable
results. As of June 30, 2019, there were 95 poor households and 368 poor people in Houhai village. 337 people
from 89 households have completed poverty alleviation, reaching the poverty alleviation standard, accounting for
91.58% of 368 poor people in Houhai Village, achieving good phased results, which has been fully affirmed and
praised by the higher party committee. Under the leadership of the town party committee, the party construction
instructors closely rely on the village party organizations to guide the party construction work, publicize policies
and regulations, and collect social conditions and public opinions, effectively promoting the construction of
grass-roots party organizations and providing strong support for targeted poverty relief work.
(3)Targeted Poverty Alleviation Result
                                                                         Measurement
                                   Index                                                             Quantity / Status
                                                                         unit
I. General situation                                                           ——                       ——
Thereinto: 1.Capital                                                     Ten thousands                                   243.65
             2. Cash supplies                                             Ten thousands                                     4.82
   3. Ecological protection to poverty alleviation                            Person                                       1,028
II.Breakdown Input                                                             ——                        ——
1. Poverty alleviation by industrial development                               ——                        ——
                                                                                          Poverty Alleviation by agriculture and
Among them: 1.1 Project type of poverty alleviation by industrial                         forestry; poverty alleviation through
                                                                               ——
development                                                                               tourism; poverty alleviation from asset
                                                                                          income
1.2 Number of poverty alleviation projects in industrial development    Person                                                  4
1.3 Investment amount of industrial development poverty alleviation
                                                                     Ten thousands                                            19
project
1.4 The number of poverty population who had been helped to create a
                                                                        Person                                               195
file
2. Poverty alleviation by transfer employment                            ——                             ——
Among them: 2.1 Investment amount of vocational skill training       Ten thousands                                           0.5
2.2 Number of people of vocational skill training                       Person                                                45
2.3 Quantity of employment of poverty population who had been helped
                                                                        Person                                                36
create a file
3. Poverty alleviation by relocation                                     ——                             ——
4. Educational poverty alleviation                                       ——                             ——
Among them: 4.1 Investment amount of subsidizing poverty students    Ten thousands                                         10.21
4.2 Number of subsidized poverty students                               Person                                                51


                                                                                                                               42
                                                    Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


          4.3 Improving the investment amount for education in poor
                                                                              Ten thousands                                      0.3
areas
5. Health poverty alleviation                                                     ——                        ——
Among them: 5.1 Investment amount for medical and health resources in
                                                                              Ten thousands                                     1.44
poor areas
6. Ecological protection poverty alleviation                                      ——                         ——
                                                                                              We will carry out ecological
Among them:6.1 Project type                                                       ——
                                                                                              protection and development
             6.2 Investment amount                                            Ten thousands                                     6.27
7. Guarantee of all the details                                                   ——                        ——
8. Social poverty alleviation                                                     ——                        ——
9. Other projects                                                                 ——                        ——
Among them: 9.1 Number of project                                                   a                                              9
9.2 Investment amount                                                         Ten thousands                                   126.75
9.3 Number of poverty population who had been helped to create a file            Person                                         563
III. Awards (Content and level)                                                   ——                        ——


(4)Subsequent targeted poverty alleviation program

The Company will continue to implement the relevant provincial, municipal and county regulations on targeted
poverty alleviation, adjust measures to local conditions, and explore an accurate path for targeted poverty
alleviation. Firstly, it will continue to strengthen the Party's style of work, promote the "two committees" in the
villages to strengthen ideological construction. Secondly, it will improve its ability by learning, continue to learn
the spirit of Comrade Xi Jinping's series of important speeches, the spirit of targeted poverty alleviation
documents, the relevant business knowledge of poverty alleviation, the ways and means of dealing with the
masses, and further improve its ability to solve problems for the masses. Thirdly, prioritize the tasks and promote
their implementation. All poverty alleviation working groups will continue to focus on the core of targeted poverty
alleviation, seize the core work of poverty alleviation and carry out and implement relevant work in an all-round
and coordinated manner. For poverty alleviation projects and village collective projects that are included in the
establishment of cards for archives, the support of relevant departments is actively sought in accordance with the
established objectives and tasks, to assist the villages and poor households in implementing poverty alleviation
projects, and ensure the full completion of poverty alleviation objectives and tasks in a pragmatic manner.


XVI.Other material events

√ Applicable □Not applicable
                     Summary of important matters                                    Name                 Date of       Website for
                                                                                                         disclosure     disclosure
Since January 1, 2019, the company has adjusted the depreciation
period of fixed assets of Shajiao A Power Plant. The net profit
                                                                           Announcement       of  the
attributable to the parent company is expected to decrease by about 174
                                                                           adjustment of depreciation January         http//.www.cni
million yuan in 2019, and 49 million yuan annually from 2020 to 2023,
                                                                           period of fixed assets in 26,2019          nfo.com.cn
and the owners' equity attributable to the parent company is expected to
                                                                           Shajiao A Power plant
decrease by about 174 million yuan in 2019 and 49 million yuan
annually from 2020 to 2023.
In order to further promote the Company's large-scale development of          Announcement        on
offshore wind power in Guangdong Province and in the southeast coast,         Investment         and
                                                                                                     January          http//.www.cni
the Board of directors agreed to invest in Zhuhai Jinwan offshore wind        Construction of Zhuhai
                                                                                                     26,2019          nfo.com.cn
farm project (300,000 kilowatts), with a total dynamic investment of          Jinwan Offshore Wind
RMB 5643.17 million-of which the capital is RMB 1128.634                      Power Project


                                                                                                                                      43
                                                     Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


million-accountting for 20% of the total dynamic investment-that shall
be appropriated by the Company.
The Company's 2019 daily related party transactions are approved and Estimates announcement of
implemented by the 2019 first extraordinary shareholders' meeting held the Daily Related Party 2    January http//.www.cni
on February 21, 2019.                                                  Transactions of 2019    26,2019      nfo.com.cn

The controlling shareholder-Guangdong GuangDong Energy Group
Co., Ltd. has been changed to “Guangdong Energy Group Co., Ltd”
from the date of February 18,2019. Except for the above change, other
                                                                          Announcement on Change of
business registration items remained unchanged. The above matter does                                     February    http//.www.cni
                                                                          Controlling        Shareholder
not involve changes in the shareholding of the controlling shareholder                                    18,2019     nfo.com.cn
                                                                          Name
and does not affect the Company's business activities. The controlling
shareholder and the actual controller of the Company remain
unchanged.
Mr. Zhou Xi'an, the former director of the company, ceased to hold the Announcement                   of
post of director of the company due to job changes. After the election of Resolutions of the First
the first extraordinary shareholders' meeting in 2019 held on February provisional          shareholders'
                                                                                                          February    http//.www.cni
21, 2019, Mr. Yan Ming served as a director of the Company.               general       meeting       of
                                                                                                          22,2019     nfo.com.cn
                                                                          Guangdong Electric Power
                                                                          Development Co., Ltd. of
                                                                          2019
The company bonds - "12 Yudean Bonds", completed the annual interest Announcement                     of
payment for 2019 on March 18, 2019.                                       Concerning Payment of
                                                                                                          March 12,   http//.www.cni
                                                                          Corporate      “12    Yudean
                                                                                                          2019        nfo.com.cn
                                                                          Bonds”
                                                                          Interest of 2019
On April 1, 2019,The controlling subsidiary- Guangdong Huizhou
Pinghai Power Generation Plant Co., Ltd. that it received a set of legal
documents such as Notice of Appearance, Summon and Complaint for                 Announcement on conc
Civil Action, issued by Intermediate People's Court of Huizhou City,        erning subsidiaries involved i April 4,   http//.www.cni
Guangdong Province, concerning Guangdong Thermal Power                      n major Litigation             2019       nfo.com.cn
Engineering Co., Ltd. of China Energy Engineering Corporation suing
Pinghai Power Plant for a dispute over a construction contract.

According to the Ministry of Finance's Notice on Revising and Issuing
the Format of Financial Statements for General Enterprises in 2018 (CK
                                                                       Announcement on changes in April               http//.www.cni
[2018] No.15) and notices on the relevant accounting standards for new
                                                                       Accounting Policy          12,2019             nfo.com.cn
financial instruments, the company's accounting policies will be
changed.
In order to actively implement the decision-making arrangements of
“promoting the decommissioning of Shajiao Power Plant Units on
schedule, doing a good job in the construction of alternative power
supply of natural gas power and so on” by the Guangdong Provincial
Party Committee and the provincial government, and for accelerating         Announcement on the External
the work related to the alternative power supply project in Dongguan        Investment of the Company to
                                                                                                                     http//.www.cni
Ningzhou site, The company has established the Ningzhou site                Establish   the    Dongguan June 12,2019
                                                                                                                     nfo.com.cn
alternative power supply project company in Dongguan in a                   Ningzhou Site Alternative
wholly-owned manner, with its registered place in Humen Town of             Power Project Company
Dongguan City, and its initial registered capital is 30 million yuan. The
project company will carry out the preliminary work of the Ningzhou
project according to the requirements approved by the project, and the
cost will be controlled at 19.6 million yuan.




                                                                                                                                   44
                                              Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


XVII. Material events of subsidiaries

√ Applicable □Not applicable
The company's holding subsidiary, Guangdong Yudean Pinghai Power Plant Co., Ltd, received the
“Administrative Punishment Decision” issued by the Guangdong Provincial Ocean & Fisheries Bureau on
November 14, 2016 (No. 019-2016 Yuehai Executive Punishment), and the punishment decision “ordered Pinghai
to return the illegally occupied sea areas and restore the sea areas to their original state, and sentenced 10 times
fines to the use fees of sea areas that shall be imposed within the period of that illegally occupied 16.3947 hectares,
amounted to RMB 172,144,350.00” for that Pinghai Power Plant carried out the site leveling and bank protection
work of Pinghai power plant without approval and did the reclamation of 16.3947 hectares and its behavior
violated the provisions of Article 3 of the Law of the People's Republic of China on the Administration of the Use
of Sea areas. Based on the audited net profit of RMB 3.238 billion attributable to the shareholders of the parent
company in 2015, the amount involved in the above-mentioned administrative penalty affects the net profit
attributable to shareholders of the parent company of about 77.4 million-which accounts for 2.39% of the net
profit of the most recently audited period.
Pinghai Power Plant disagreed with the punishment measures of the “Administrative Punishment Decision" and
applied for administrative reconsideration to the People's Government of Guangdong Province on January 16,
2017 in accordance with Article 6 of the "Administrative Reconsideration Law of the People's Republic of China".
On June 16, 2017, the People's Government of Guangdong Province issued a decision on the administrative
reconsideration, which stated “According to the provisions of Item 1 of Paragraph 1 of Article 28 of the
Administrative Reconsideration Law of the People's Republic of China, the Administrative Punishment Decision
(No. 019-2016 Yuehai Executive Punishment) made by the respondent’s Provincial Department of Ocean and
Fisheries is maintained.” Pinghai Power Plant disagreed with the aforementioned administrative reconsideration
decision and filed an administrative litigation to the Guangzhou Maritime Court on July 18, 2017. On December
28, 2017, the Guangzhou Maritime Court issued an administrative decision, stated “In accordance with the
provisions of Article 69 of the Administrative Procedure Law of the People's Republic of China, the decision is as
follows: the claim of the plaintiff Guangdong Huizhou Pinghai Power Plant Co., Ltd was rejected”. Pinghai Power
Plant disagreed with the verdict, and lodged an appeal to the Guangdong Provincial Higher People's Court against
the verdict, which has not yet been determined. According to the net profit of RMB 937 million attributable to
shareholders of the parent company in the previous year (2016), the amount involved in the above lawsuit affects
the net profit attributable to shareholders of the parent company of approximately RMB 77.4 million, which
accounts for approximately 8.26 % of the net profit of the most recently audited period, which does not constitute
a major impact on the Company.


As of the disclosure date of this report, the above-mentioned administrative punishment and the administrative
litigation matter are still in the process of multi-party communication and coordination. According to the “Asset
Purchase Agreement by Share Issuance” signed between Energy Group and the Company in 2012, Energy Group
shall compensate the Company for the actual loss caused by the above-said matter in accordance with the result of
the matter.


2. Guangdong Yudean Pinghai Power General Plant Co., Ltd., a controlling subsidiary of the Company, received
the Decision on Administrative Punishment (YHDCF [2019] No.042-1) issued by Huidong County Oceanic and
Fishery Bureau on November 13, 2018. The act of illegally occupying 1.2813 hectares of sea area by Pinghai


                                                                                                                     45
                                             Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


Power Plant to construct a sand barrier violated the provisions of the second paragraph of Article 3 of the Law of
the People's Republic of China on the Use of Sea Areas and the decision was that "It is ordered to return the
illegally occupied sea area, restore the sea area to its original state, and imposed an administrative penalty of RMB
11,531,700". According to the Company's audited net profit attributable to the shareholders of the parent company
of 743 million yuan in 2017, the amount of the above administrative penalty affects the net profit attributable to
the shareholders of the parent company of about 5,189,300 yuan, accounting for about 0.7% of the latest audited
net profit. Pinghai Power Plant refused to accept the punishment measures in the Decision on Administrative
Punishment and filed an application for administrative reconsideration.
On April 7, 2019, Huidong County People's Government issued the Administrative Reconsideration Decision
(HDFXF [2019] No.2), maintaining the original decision of Huidong County Bureau of Ocean and Fisheries on
administrative punishment. Pinghai Power Plant refused to accept the above-mentioned administrative
reconsideration decision and brought an administrative lawsuit to Guangzhou Maritime Court on April 29, 2019.
Guangzhou Maritime Court held a hearing on June 12, 2019. No judgment has yet been reached.


As of the disclosure date of this report, the above-mentioned administrative punishment and the administrative
litigation matter are still in the process of multi-party communication and coordination. According to the “Asset
Purchase Agreement by Share Issuance” signed between Energy Group and the Company in 2012, Energy Group
shall compensate the Company for the actual loss caused by the above-said matter in accordance with the result of
the matter.




                                                                                                                    46
                                                 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019




             VI. Change of share capital and shareholding of Principal
                                  Shareholders
I. Changes in share capital
1. Changes in share capital

                                                                                                                      In shares
                                  Before the change                Increase/decrease(+,-)            After the Change
                                  Amount      Proportion                     Capitaliz
                                                                             ation of
                                                             Share Bonus
                                                                             common Other Subtotal     Quantity      Proportion
                                                           allotment shares
                                                                              reserve
                                                                               fund
I. Share with conditional
                                1,897,968,946   36.15%                                               1,897,968,946     36.15%
subscription
2. State-owned legal person
                                1,893,342,621   36.06%                                               1,893,342,621     36.06%
shares
3.Other domestic shares             4,626,325     0.09%                                                 4,626,325        0.09%
Of which:Domestic legal
                                    4,620,666     0.09%                                                 4,620,666        0.09%
person shares
Domestic natural person
                                        5,659       0%                                                      5,659          0%
shares
II. Shares with unconditional
                                3,352,315,040   63.85%                                               3,352,315,040     63.85%
subscription
1.Common shares in RMB          2,553,907,040   48.64%                                               2,553,907,040     48.64%
2.Foreign shares in domestic
                                  798,408,000   15.21%                                                798,408,000      15.21%
market
III. Total of capital shares    5,250,283,986     100%                                               5,250,283,986       100%
Reasons for share changed
□Applicable √Not applicable
Approval of Change of Shares
□Applicable √Not applicable
Ownership transfer of share changes
□Applicable √Not applicable
Progress on any share repurchase:
□ Applicable √ Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
common shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
□ Applicable √Not applicable




                                                                                                                              47
                                                    Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


2. Change of shares with limited sales condition

□ Applicable √Not applicable

Ⅱ.Issuing and listing

□ Applicable √Not applicable

III. Shareholders and shareholding

                                                                                                                           In Shares
Total number of common                                  Total number of preferred
shareholders at the end of the                  98,303 shareholders that had restored the voting right at the                        0
reporting period                                        end of the reporting period (if any) (note 8)
                           Particulars about shares held above 5% by shareholders or top ten shareholders
                                                                           Changes                                    Number of share
                                             Proportion Number of                       Amount of       Amount of
                               Nature of                                      in                                      pledged/frozen
      Shareholders                            of shares shares held at                   restricted    un-restricted
                             shareholder                                   reporting                                 State of
                                             held(%) period -end                      shares held     shares held           Amount
                                                                            period                                     share
Guangdong Energy          State-owned
                                                 67.39% 3,538,005,285                 1,893,342,621 1,644,662,664
Group Co., Ltd.           legal person
China Securities          State-owned
                                                  2.84% 148,862,420
 Finance Co., Ltd.        legal person
Shenzhen Guangfa
                          State-owned
Electric Power                                    2.22% 116,693,602
                          legal person
Investment Co., Ltd.
Guangdong Electric
                          State-owned
Power Development                                 1.80%      94,367,341
                          legal person
Corporation
                          Domestic
Li Zhuo                                           0.61%      31,932,923 390,600
                          Natural person
                          Domestic
Zheng Jianxiang                                   0.43%      22,625,098       57,400
                          Natural person
                          Domestic
Harbin Hali Industry
                          Non-State owned         0.41%      21,758,045 815,400
Co., Ltd.
                          legal person
                          Domestic
National Social Security
                          Non-State owned         0.36%      18,994,982 -6,000,000
Fund 103 portfolio
                          legal person
CHINA INT'L
CAPITAL CORP              Overseas Legal
                                                  0.29%      15,316,066
HONG KONG                 person
SECURITIES LTD
                          Domestic
Harbin Daoli District
                          Non-State owned         0.26%      13,730,793        7,900
Charity Foundation
                          legal person
                                             The fourth largest shareholder Guangdong Electric Power Development Corporation is
Explanation on associated relationship       the wholly-owned subsidiaries of the largest shareholder Energy Group. These two
among the aforesaid shareholders             companies have relationships; whether the other shareholders have relationships or
                                             unanimous acting was unknown
                                      Shareholding of top 10 shareholders of unrestricted shares
                                           Quantity of unrestricted shares held at the end                   Share type
         Name of the shareholder
                                                       of the reporting period                      Share type           Quantity
Guangdong Energy Group Co., Ltd.                                             1,644,662,664 RMB Common shares
China Securities Finance Co., Ltd.                                             148,862,420 RMB Common shares

                                                                                                                                    48
                                                     Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


Shenzhen Guangfa Electric Power
                                                                              116,693,602 RMB Common shares
Investment Co., Ltd.
Guangdong Electric Power Development
                                                                               94,367,341 RMB Common shares
Corporation
Li Zhuo                                                                        31,932,923 RMB Common shares
                                                                                          Foreign shares placed
Zheng Jianxiang                                                                22,625,098
                                                                                          in domestic exchange
Harbin Hali Industry Co., Ltd.                                                 21,758,045 RMB Common shares
National Social Security Fund 103
                                                                               18,994,982 RMB Common shares
portfolio
CHINA INT'L CAPITAL CORP HONG                                                               Foreign shares placed
                                                                               15,316,066
KONG SECURITIES LTD                                                                         in domestic exchange
Harbin Daoli District Charity
                                                                               13,730,793 RMB Common shares
Foundation
Explanation on associated relationship
or consistent action among the top 10       The fourth largest shareholder Guangdong Electric Power Development Corporation is
shareholders of non-restricted negotiable   the wholly-owned subsidiaries of the largest shareholder Energy Group. These two
shares and that between the top 10          companies have relationships; whether the other shareholders have relationships or
shareholders of non-restricted negotiable   unanimous acting was unknown.
shares and top 10 shareholders
                                            The Fifth largest shareholder Li Zhuo holds425,600 A shares of the Company through A
                                            shares ordinary stock account, and holds 31,507,323A shares of the Company through
                                            stock account with credit transaction and guarantee, hold31,932,923 shares of the
                                            Company's stock totally.
                                            The seventh largest shareholder Harbin Hali Industry Co., Ltd. holds815,400 A shares of
Explanation on shareholders
                                            the Company through A shares ordinary stock account, and holds 20,942,645A shares of
participating in the margin trading
                                            the Company through stock account with credit transaction and guarantee,
business(if any )(See Notes 4)
                                            hold21,758,045 shares of the Company's stock totally.
                                             The Tenth largest shareholder Harbin Daoli District Charity Foundation holds80,187 A
                                            shares of the Company through A shares ordinary stock account, and holds 13,650,606A
                                            shares of the Company through stock account with credit transaction and guarantee, hold
                                            13,730,793 shares of the Company's stock totally.
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a
buy-back agreement dealing in reporting period.
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
have no buy –back agreement dealing in reporting period.

IV. Change of the controlling shareholder or the actual controller

Change of the controlling shareholder in the reporting period
□ Applicable √ Not Applicable
There was no any change of the controlling shareholder of the Company in the reporting period.
Change of the actual controller in the reporting period
□ Applicable √ Not applicable
There was no any change of the actual controller of the Company in the reporting period.




                                                                                                                                      49
                                           Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019




                         VII. Situation of the Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares in the reporting period




                                                                                                                  50
                                               Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019




VIII. Information about Directors, Supervisors and Senior Executives

I. Change in shares held by directors, supervisors and senior executives
□Applicable √Not applicable
There was no change in shareholding of directors, supervisors and senior management staffs, for the specific
information please refer to the 2018 Annual Report.

II. Changes in directors, supervisors and senior management staffs
√ Applicable □ Not applicable
     Name            Title           Type                 Date                                 Reason
                                                                       Elected as Director of the Ninth Board of directors
   Yan Ming         Director        Elected       February 21,2019     of the Company by the First Provisional General
                                                                       shareholder’s Meeting of 2019
   Zhou Xian        Director       Dismissal      February 21,2019     Job changes




                                                                                                                             51
                                                      Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019




                                                 IX. Corporate Bond

Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and
 not yet due or due but not folly cashed on the approval date of annual report
Yes

1.Basic information of corporate bonds

                       Bond short                                          Bond balance Interest
      Bond name                   Bond code Issue day          Due day                                          Servicing way
                         name                                             (Ten thousand ) rate
                                                                                                    Using simple interest rate on a
2012 Corporate                                                                                      yearly basis, regardless of
bonds of Guangdong                                                                                  compound interest. Due payments
                   12 Yudean           March                 March
Electric Power               112162.SZ                                           4,030.65     4.95% once a year, maturing debt at a
                   Bond                18,2013               17,2020
Development Co.,                                                                                    time. In the final phase, interest is
Ltd..                                                                                               paid together with the principal
                                                                                                    redemption.
Corporate bonds listed or trading
                                     Shenzhen Stock Exchange
places
Investor Proper Arrangement          Not applicable
                                     On March 19, 2019, the company paid the bond interest for the current year to all the current
During the reporting period,
                                     bondholders who have registered in China Securities Depository and Clearing Co., Ltd.
interest payment situation of the
                                     Shenzhen Branch by the closing of Shenzhen Stock Exchange on the afternoon of March 15,
company bonds
                                     2019.
If the corporate bonds attached to
special clauses to the issuer or the The term of the current bonds is 7 years, attaching the option that the issuer will redeem at the
investors such as option clause      end of the fifth year, the option that the issuer raises the coupon rate and the option that the
and exchangeable clause, please investors will put back. The above terms and conditions have been implemented in 2018. For
specify the implementation status details, please refer to the company's "2018 Annual Report".
of the corresponding clauses.
(When applicable)

2. Bond trustee and the credit rating agency information

Bond trustee:
                                          22/F, CITIC Securities
                 CITIC
                                          Building , No.48.                           Song Yilan,
Name             Securities Co., Office                                Contact                      Tel             010-60838888
                                          Liangmaqiao Road,                           Yang Xin
                 Ltd.
                                          Chaoyang District , Beijing
The credit rating agencies which follow and rate the corporate bond during the reporting period
                                                                                   8/F, Anji Building, No.760, Tibet South Road,
Name             CCXR                                             Office address
                                                                                   Huangpu District, Shanghai.

III. The usage of corporate bonds to raise money

                                          According to the relevant contents in the Prospectus of the Issuance of Bonds
                                          announced on March 14, 2013, the company planned to use RMB 820 million of the
The usage and performance of raised funds
                                          raised funds to repay the loans, thus to adjust the debt structure; the remaining RMB
from Corporate bonds
                                          380 million of the raised funds planned for supplementing the company’s liquidity, so
                                          as to improve the company’s funds status.
At the end of balance (Ten thousand)                                                                                             0
Special fund raising account operation    The net amount of the funds raised by the bonds had been remitted to the company’s

                                                                                                                                         52
                                                Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


                                         designated bank account on March 20, 2013, of which the amount of RMB 820 million
                                         of the raised funds had been used for repaying the loans, so as to adjust the debt
                                         structure; the remaining RMB 380 million of the raised funds used for supplementing
                                         the company’s liquidity, so as to improve the company’s funds status.
Whether the usage of the raised money
corresponding to the purposes of promise, Yes
use plans, and other agreement

IV.Corporate bond rating information

On May 14, 2019, CCXR traced and analyzed the credit status of the company and the company’s bonds of
“12-Yudean Bonds”, Finalized by the China Credit Rating Credit Rating Committee, maintained the credit rating of AAA
for the main body of the company, with a stable outlook; maintained the credit rating of AAA for the corporate
bonds.(The rating results were disclosed on the website: http://www.ccxr.com.cn/, with the title of Tracking and
Rating Report for the 2012-Corpoprate Bonds of Guangdong Electric Power Development Co., Ltd(2019).

V.Corporate bond credit mechanism, the debt repayment plans and other security measures

(1)The credit-raising mechanism: No guarantee of the company’s bonds. After the comprehensive assessment by
CCXR, the credit rating of the main body of the company is AAA with a stable outlook, and the credit rating of
the corporate bonds is AAA.
(2)The repayment plan: The interest of the bonds commenced from the date of March 18, 2013, and the interest of
the bonds shall be paid once each year within the duration of the bonds after the commencement date of the
interest. The date of March 18 of each year in the period from 2014 to 2020 shall be the interest paying day for
paying the recent full year’s bond interests (If it is not a working day, the payment day will be postponed to the
first working day after the day).
During the reporting period, some investors exercised the put-back option. The put-back quantity of “12 Yudean
Debt” was 11,596,935 sheets, and the put-back amount was RMB 1,217,087,933.25 (including interest). On
March 16, 2018, the company paid the principal and interest of some of the bonds of this “12 Yudean Debt” back
to the designated bank account of China Securities Depository and Clearing Co., Ltd. Shenzhen Branch in full
amount, and paid to the investor’s fund account on March 16, 2018.
The quantity of remaining bonds is 403,065 sheets, and the maturity date is March 18, 2020. The principal and the
final interest will be paid at the expire date. and the corresponding principal and the last full year’s interest will be
repaid.
(3) Safeguard measures for the repayment: in order to fully and effectively safeguard the interests of the
bondholders, the company had made a series of work plans for the full repayment of the bonds that can be
implemented on time, including the designated department and personnel, arrangement of repaying the bonds,
establishment of the management measures, doing good organization and coordination, strengthening the
information disclosure and so on, strived to form a set of safeguard measures for ensuing the repayment of the
bonds.




                                                                                                                           53
                                                 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


VI. During the reporting period the bondholder meeting

During the reporting period, the company did not hold bondholders meeting.

VII. During the reporting period the bond trustee perform his duties

The company’s bond trustee- CITIC Securities Co., Ltd safeguarded the legal rights of the bond holders with in
accordance with the law and performed the obligations stipulated in the Prospectus of the Issuance of Bonds and
other publicly disclosed documents, hence continuously followed up and acquainted the relevant information of
the company during the entrusting period, issued and provided the regular report of the bond trustee, with in
accordance with the company’s information being followed up and acquainted.
During the reporting period, CITIC Securities Co., Ltd issued the Report of the 2012 Corporate Bonds Trustee for
Guangdong Electric Power Development Co., Ltd(year of 2018) on May 9, 2019, and the report was disclosed on
the cninf website on May 10, 2019 by the company.

VIII.During the reporting period, the company's major accounting data and financial indicators for last 2 years

                                                                                                          Ten Thousands yuan
                Items                     2018                            2017                At the same time rate of change
Current ratio                                      60.28%                            62.89%                            -2.61%
Debt ratio                                         55.92%                            57.02%                            -1.10%
Quick ratio                                        46.63%                            47.35%                            -0.72%
                                   Reporting period            The same period of last year At the same time rate of change
EBITDA interest coverage ratio                        2.41                               2.56                          -5.86%
Loans repayment rate                                100 %                              100 %                              0%
Interest payment rate                               100 %                              100 %                              0%
The material reasons for the changed ratio of the accounting data or financial indicators exceeds 30% over the last
year
□ Applicable √Not applicable

IX. The company fails to repay the debt

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

X. Information about the repayment of interest and principal for other bonds or debt financing instruments

1. the Company publicly issued 12 Yudean bonds to the public with a nominal amount of RMB 1,200,000,000 and
a term of 5+2 years. It is a kind of real-name book-entry corporate bonds. The interest paid back during the
reporting period was RMB 1,995,172.
2.The Company issued 18 Yudean MTN001 on August 24, 2018, with an issue amount of RMB 800,000,000 for a
period of 3 years. During the reporting period, the Company repaid the principal and interest of RMB 0.
3.The Company issued 18 Yudean SCP002 on August 24, 2018, with an issue amount of RMB 600,000,000 for a
period of 180 days. During the reporting period, the Company repaid the principal and interest of
RMB610,652,055.
4.The Company issued 18 Yudean SCP004 on December 27, 2018, with an issue amount of RMB 500,000,000 for
a period of 152 days. During the reporting period, the Company repaid the principal and interest of
RMB506,413,151.


                                                                                                                           54
                                            Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


5.The Company issued 18 Yudean SCP001 on February 18, 2019, with an issue amount of RMB 600,000,000 for
a period of 180 days. During the reporting period, the Company repaid the principal and interest of RMB0.
6.The Company issued 18 Yudean SCP002 on May 24, 2019, with an issue amount of RMB 600,000,000 for a
period of 180 days. During the reporting period, the Company repaid the principal and interest of RMB0.

XI.Information about the bank credit obtaining and use, as well as repayment of the bank loans during the
reporting period

In ther report period, the company signed an unconditional available bank amount limit of about RMB 47.299
billion, of which the used amount limit was RMB 24.688 billion, thus the remaining available bank amount limit
was about RMB 22.611 billion. In this year, the company repaid bank loans of about RMB7.932 billion, and the
balance of bank loans was RMB 26.804 billion.

XII. Information about fulfillment of the stipulations or commitments specified in the Prospectus of the issuance
of the bonds during the reporting period

The company had committed to pay the principal and interests to the bondholders according to the stipulations of
the prospectus of “Yudean Bonds” issuance. During the reporting period, the company strictly fulfilled the above
commitments. On March 18, 2019, and paid the bond interest to all the current bondholders who have registered
in China Securities Depository and Clearing Co., Ltd. Shenzhen Branch by the closing of Shenzhen Stock
Exchange on the afternoon of March 15, 2019.

XIII. Major events occurred during the reporting period

Nil
XIV. Whether the corporate bonds have a guarantor
□ Yes √No

                                             X. Financial Report



I. Audit report

Has this semi-annual report been audited?
□ Yes √ No
The semi-annual financial report has not been audited.

II. Financial statements

Currency unit for the statements in the notes to these financial statements: RMB

1. Consolidated balance sheet

Prepared by:Guangdong Electric Power Development Co., Ltd.
                                                                                                             In RMB
                  Items                          June 30,2019                          December 31,2018
Current asset:

                                                                                                                   55
                                           Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


             Monetary fund                                   5,199,734,595                            5,574,382,892
          Settlement provision
Outgoing call loan
Transactional financial assets                                     37,203
  Financial assets measured at fair
value with variations accounted into
current income account
  Derivative financial assets
  Notes receivable
     Account receivable                                      3,264,118,313                            3,358,331,949
     Financing of receivables
              Prepayments                                     844,155,255                               906,261,046
          Insurance receivable
        Reinsurance receivable
  Provisions of Reinsurance contracts
              receivable
     Other account receivable                                 298,620,587                               222,976,826
     Including:Interest receivable                            23,038,895                                18,856,569
            Dividend receivable
     Repurchasing of financial assets
     Inventories                                             1,812,173,995                            1,481,817,270
     Contract assets
     Assets held for sales
Non-current asset due within 1 year
     Other current asset                                      309,914,282                               617,853,476
        Total of current assets                            11,728,754,230                            12,161,623,459
         Non-current assets:
 Loans and payment on other’s behalf
             disbursed
Debt investment
  Available for sale of financial assets                                                              1,565,806,331
    Other investment on bonds
  Expired investment in possess
  Long-term receivable                                         90,938,922                                89,762,071
  Long term share equity investment                          6,495,819,304                            6,395,134,754
Other equity instruments investment                          1,720,652,013
Other non-current financial assets
  Property investment                                          10,097,905                                10,810,722
     Fixed assets                                          40,097,107,758                            41,157,594,848
Construction in progress                                     8,373,522,376                            7,740,754,343
     Production physical assets
     Oil & gas assets
     Use right assets
     Intangible assets                                       1,845,115,425                            1,863,588,771
  Development expenses
    Goodwill                                                    2,449,886                                 2,449,886
  Long-germ expenses to be amortized                           20,482,276                                22,089,179



                                                                                                                  56
                                           Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


  Deferred income tax asset                                   456,618,087                               448,431,684
  Other non-current asset                                    2,046,484,303                            1,871,616,258
Total of non-current assets                                61,159,288,255                            61,168,038,847
Total of assets                                            72,888,042,485                            73,329,662,306
Current liabilities
  Short-term loans                                           6,916,200,000                            7,526,000,000
 Loan from Central Bank
  Borrowing funds
     Transactional financial liabilities
Financial liabilities measured at fair
value with variations accounted into
current income account
        Derivative financial liabilities
        Notes payable                                        1,247,696,862                              941,161,107
     Account payable                                         2,251,908,661                            2,196,600,415
     Advance receipts                                             292,713                                   343,894
 Selling of repurchased financial assets
    Deposit taking and interbank
deposit
 Entrusted trading of securities
Entrusted selling of securities
 Employees’ wage payable                                     251,270,338                               235,741,179
 Tax payable                                                  489,590,123                               397,001,706
        Other account payable                                3,842,521,518                            4,152,518,495
     Including:Interest payable                              147,098,684                                59,316,077
             Dividend payable                                   9,796,594                                 9,703,930
     Fees and commissions payable
     Reinsurance fee payable
Contract Liabilities
     Liabilities held for sales
  Non-current liability due within 1
                                                             3,249,068,381                            2,779,347,654
year
Other current liability                                      1,207,789,479                            1,107,904,110
Total of current liability                                 19,456,338,075                            19,336,618,560
Non-current liabilities:
     Reserve fund for insurance
contracts
  Long-term loan                                           17,660,996,020                            18,802,292,664
 Bond payable                                                 798,457,333                               838,326,742
  Including:preferred stock
  Sustainable debt
        Lease liability
             Long-term payable                               2,267,578,098                            2,311,513,249
   Long-term remuneration payable to
                                                              107,427,012                               122,913,388
staff
 Expected liabilities
     Deferred income                                          132,740,704                               133,043,646
  Deferred income tax liability                               167,777,137                               100,726,841


                                                                                                                  57
                                           Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


Other non-current liabilities                                   166,405,569                               166,405,569
Total non-current liabilities                                 21,301,381,873                         22,475,222,099
Total of liability                                            40,757,719,948                         41,811,840,659
Owners’ equity
  Share capital                                                5,250,283,986                          5,250,283,986
  Other equity instruments
  Including:preferred stock
  Sustainable debt
 Capital reserves                                              5,102,846,886                          5,102,846,886
  Less:Shares in stock
Other comprehensive income                                      607,522,715                               550,010,133
     Special reserve
  Surplus reserves                                             8,245,767,593                          7,834,155,143
Common risk provision
Retained profit                                                5,344,946,034                          5,490,006,140
Total of owner’s equity belong to the
                                                              24,551,367,214                         24,227,302,288
parent company
Minority shareholders’ equity                                 7,578,955,323                          7,290,519,359
Total of owners’ equity                                      32,130,322,537                         31,517,821,647
Total of liabilities and owners’ equity                      72,888,042,485                         73,329,662,306


Legal representative :Wang Jin

Person-in-charge of the accounting work:Liu Wei

Person-in -charge of the accounting organ:Meng Fei

2. Balance sheet of Parent Company

                                                                                                              In RMB
                     Items                     June 30,2019                           December 31, 2018
Current asset:
Monetary fund                                                   438,191,159                               385,577,463
Transactional financial assets                                       37,203
  Financial assets measured at fair
value with variations accounted into
current income account
  Derivative financial assets
     Notes receivable
     Account receivable                                         225,163,808                               264,537,475
Financing of receivables
     Prepayments                                                 47,036,819                                44,826,500
  Other account receivable                                       94,567,387                               375,296,228
     Including:Interest receivable                                 700,566                                 1,121,522
           Dividend receivable                                                                               447,956
     Inventories                                                159,909,737                               187,058,140
     Contract assets
     Assets held for sales

                                                                                                                    58
                                             Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


       Non-current asset due within 1
year
       Other current asset                                          199,679                                   199,679
Total of current assets                                         965,105,792                             1,257,495,485
Non-current assets:
Debt investment
  Available for sale of financial assets                                                                1,565,806,331
       Other investment on bonds
  Expired investment in possess
  Long-term receivable                                          306,460,000                               306,460,000
  Long term share equity investment                          25,698,970,548                            24,699,820,321
Other equity instruments investment                            1,720,652,013
Other non-current financial assets
  Property investment                                             7,343,242                                 7,661,041
  Fixed assets                                                  842,115,992                               978,022,437
         Construction in progress                                12,665,153                                 9,394,075
       Production physical assets
       Oil & gas assets
       Use right assets
       Intangible assets                                         84,959,102                                86,681,362
  Development expenses
    Goodwill
  Long-germ expenses to be amortized
  Deferred income tax asset
  Other non-current asset                                       356,004,000                               356,004,000
Total of non-current assets                                  29,029,170,050                            28,009,849,567
Total of assets                                              29,994,275,842                            29,267,345,052
Current liabilities
       Short-term loans                                        1,500,000,000                            1,500,000,000
       Transactional financial liabilities
Financial liabilities measured at fair
value with variations accounted into
current income account
         Derivative financial liabilities
       Notes payable
       Account payable                                          155,190,455                               223,827,319
  Advance receipts
       Contract Liabilities
 Employees’ wage payable                                        46,544,032                                53,346,100
 Tax payable                                                     46,340,743                                48,590,195
         Other account payable                                  114,622,158                                98,528,954
       Including:Interest payable                               31,200,062                                15,787,356
               Dividend payable                                   9,796,594                                 9,703,930
       Liabilities held for sales
  Non-current liability due within 1
                                                                 40,284,563
year
Other current liability                                        1,207,789,479                            1,107,904,110



                                                                                                                    59
                                           Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


Total of current liability                                   3,110,771,430                            3,032,196,678
Non-current liabilities:
  Long-term loan                                             1,500,000,000                            1,500,000,000
 Bond payable                                                 798,457,333                               838,326,742
  Including:preferred stock
  Sustainable debt
        Lease liability
     Long-term payable                                            3,025,750                                 4,340,898
   Long-term remuneration payable to
                                                               30,668,978                                  32,170,769
staff
 Expected liabilities
     Deferred income                                           48,362,943                                  48,362,943
  Deferred income tax liability                               166,511,917                                  99,461,621
Other non-current liabilities
Total non-current liabilities                                2,547,026,921                            2,522,662,973
Total of liability                                           5,657,798,351                            5,554,859,651
Owners’ equity
  Share capital                                              5,250,283,986                            5,250,283,986
  Other equity instruments
  Including:preferred stock
  Sustainable debt
  Capital reserves                                           5,605,794,601                            5,605,794,601
  Less:Shares in stock
Other comprehensive income                                    607,522,715                               550,010,133
     Special reserve
  Surplus reserves                                           8,245,767,593                            7,834,155,143
     Retained profit                                         4,627,108,596                            4,472,241,538
Total of owners’ equity                                   24,336,477,491                            23,712,485,401
Total of liabilities and owners’ equity                   29,994,275,842                            29,267,345,052


3.Consolidated Income Statement

                                                                                                              In RMB
                     Item                   Semi-annual of 2019                      Semi-annual of 2018
     I. Income from the key business                        12,874,181,250                           13,894,985,179
          Incl:Business income                             12,874,181,250                           13,894,985,179
              Interest income
           Insurance fee earned
      Fee and commission received
           II. Total business cost                          12,036,981,919                           13,213,530,804
            Incl:Business cost                             11,024,143,476                           12,200,856,427
              Interest expense
         Fee and commission paid
       Insurance discharge payment
          Net claim amount paid
      Insurance policy dividend paid
      Insurance policy dividend paid

                                                                                                                   60
                                             Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


            Reinsurance expenses
        Business tax and surcharge                                93,365,358                               99,532,565
                Sales expense                                     12,844,788                               10,316,130
            Administrative expense                               270,884,804                              270,794,513
            R & D expense                                           347,523                                   912,371
            Financial expenses                                   635,395,970                              631,118,798
     Including:Interest expense                                 664,009,453                              657,904,963
     Interest income                                              31,661,505                               29,906,705
     Add:Other income                                            39,472,856                               17,030,759
Investment gain(“-”for loss)                                 304,451,356                              291,018,592
   Including: investment gains from
                                                                 273,618,214                              272,404,985
affiliates
  Financial assets measured at amortized
cost cease to be recognized as income
        Gains from currency exchange
     Net exposure hedging income
        Changing income of fair value                                 30,626
        Credit impairment loss                                      -523,441
     Impairment loss of assets
  Assets disposal income                                                                                      388,507
III. Operational profit(“-”for loss)                       1,180,630,728                              989,892,233
  Add :Non-operational income                                     5,293,187                               52,608,901
  Less: Non-operating expense                                     20,234,696                                1,814,323
IV. Total    profit(“-”for loss)                             1,165,689,219                            1,040,686,811
  Less:Income tax expenses                                      309,835,930                              307,767,578
V. Net profit                                                    855,853,289                              732,919,233
  (I) Classification by business
continuity
1.Net continuing operating profit                                855,853,289                              732,919,233
2.Termination of operating net profit
  (II) Classification by ownership
1.Net profit attributable to the owners of
                                                                 581,569,383                              448,833,518
parent company
2.Minority shareholders’ equity                                 274,283,906                              284,085,715
VI. Net after-tax of other comprehensive
                                                                  57,512,582                              -46,851,817
income

Net of profit of other comprehensive inco                         57,512,582                              -46,851,817
me attributable to owners of the parent co
mpany.
(I)Other comprehensive income items
that will not be reclassified into                                57,512,582
gains/losses in the subsequent accounting
period
1.Re-measurement of defined benefit pla
ns of changes in net debt or net assets
2.Other comprehensive income under the
equity method investee can not be reclass
ified into profit or loss.
3. Changes in the fair value of                                   57,512,582


                                                                                                                    61
                                              Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


investments in other equity instruments
4. Changes in the fair value of the
company’s credit risks
             5.Other
   (II)
Other comprehensive income that will be                                                                    -46,851,817
reclassified into profit or loss.

1.Other comprehensive income under the
equity method investee can be reclassifie
d into profit or loss.
2. Changes in the fair value of
investments in other debt obligations

3.Gains and losses from changes in fair v                                                                  -46,851,817
alue available for sale financial assets
4. Other comprehensive income arising
from the reclassification of financial
assets

5.Held-to-maturity investments reclassifi
ed to gains and losses of available for sal
e financial assets
6. Allowance for credit impairments in
investments in other debt obligations
7. Reserve for cash flow hedges
8.Translation differences in currency fina
ncial statements
             9.Other
Net of profit of other comprehensive inco
me attributable to Minority shareholders’
equity
VII. Total comprehensive income                                   913,365,871                              686,067,416
Total comprehensive income attributable
                                                                  639,081,965                              401,981,701
to the owner of the parent company
 Total comprehensive income
                                                                  274,283,906                              284,085,715
attributable minority shareholders
VIII. Earnings per share
(I)Basic earnings per share                                          0.1108                                   0.0855
 (II)Diluted earnings per share                                        0.1108                                   0.0855


Legal representative :Wang Jin

Person-in-charge of the accounting work:Liu Wei

Person-in -charge of the accounting organ:Meng Fei

4. Income statement of the Parent Company

                                                                                                               In RMB
                  Items                        Semi-annual of 2019                      Semi-annual of 2018
    I. Income from the key business                              984,909,082                             1,148,346,022
          Incl:Business cost                                    978,133,881                             1,083,181,215

                                                                                                                     62
                                           Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


       Business tax and surcharge                               5,890,693                                 4,615,124
              Sales expense                                       675,889                                   917,618
         Administrative expense                                36,863,889                                37,549,008
           R & D expense                                          269,693                                   912,371
     Financial expenses                                       100,956,761                               100,072,564
        Including:Interest expenses                          101,909,495                               100,909,911
                      Interest income                           2,477,731                                 2,753,042
  Add:Other income                                                10,000                                   284,896
  Investment gain(“-”for loss)                           1,065,475,482                            1,075,719,889
Including: investment gains from
                                                              270,083,891                            270,075,688.23
affiliates
   Financial assets measured at
amortized cost cease to be recognized
as income
        Net exposure hedging income
        Changing income of fair value                              30,626
        Credit impairment loss                                   -303,753
     Impairment loss of assets
  Assets disposal income                                        3,218,915                                   -32,933
II. Operational profit(“-”for loss)                       930,549,546                               997,069,974
     Add :Non-operational income                                   7,842                                   127,262
  Less:Non -operational expenses                               1,181,405                                   676,668
III. Total profit(“-”for loss)                              929,375,983                               996,520,568
     Less:Income tax expenses                                 47,879,436
IV. Net profit                                                881,496,547                               996,520,568
1.Net continuing operating profit                             881,496,547                               996,520,568
2.Termination of operating net profit
V. Net after-tax of other comprehensive
                                                               57,512,582                               -46,851,818
income
(I)Other comprehensive income items
that will not be reclassified into                             57,512,582
gains/losses in the subsequent
accounting period
1.Re-measurement of defined benefit pl
ans of changes in net debt or net assets
2.Other comprehensive income under th
e equity method investee can not be recl
assified into profit or loss.
3. Changes in the fair value of
                                                               57,512,582
investments in other equity instruments
4. Changes in the fair value of the
company’s credit risks
             5.Other
(II)
Other comprehensive income that will b                                                                  -46,851,818
e reclassified into profit or loss.
1.Other comprehensive income under th
e equity method investee can be reclassi
fied into profit or loss.
2. Changes in the fair value of
investments in other debt obligations


                                                                                                                  63
                                             Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


3.
Gains and losses from changes in fair v                                                                   -46,851,818
alue available for sale financial assets
   4. Other comprehensive income
arising from the reclassification of
financial assets
5.Held-to-maturity investments reclassif
ied to gains and losses of available for s
ale financial assets
   6. Allowance for credit impairments
in investments in other debt obligations
  7. Reserve for cash flow hedges
  8.
Translation differences in currency fina
ncial statements
             9.Other
VI. Total comprehensive income                                  939,009,129                               949,668,750
VII. Earnings per share
(I)Basic earnings per share                                          0.1680                                   0.1898
 (II)Diluted earnings per share                                        0.1680                                   0.1898


5. Consolidated Cash flow statement

                                                                                                                In RMB
                  Items                       Semi-annual of 2019                      Semi-annual of 2018
 I.Cash flows from operating activities
 Cash received from sales of goods or
                                                             14,705,585,514                            16,141,817,697
         rending of services
     Net increase of customer deposits
and capital kept for brother company
Net increase of loans from central bank
Net increase of inter-bank loans from
other financial bodies
Cash received against original insurance
contract
Net cash received from reinsurance
business
Net increase of client deposit and
investment
  Cash received from interest,
commission charge and commission
Net increase of inter-bank fund received
Net increase of repurchasing business
  Net cash received by agent in
securities trading
   Tax returned                                                     40,296,334                               21,858,952
Other cash received from business
                                                                162,228,929                               214,249,915
operation
   Sub-total of cash inflow                                  14,908,110,777                            16,377,926,564
Cash paid for purchasing of
                                                               9,504,880,179                           10,919,230,182
 merchandise and services
Net increase of client trade and advance



                                                                                                                     64
                                             Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


Net increase of savings in central bank
and brother company
  Cash paid for original contract claim
   Net increase in financial assets held
for trading purposes
  Net increase for Outgoing call loan
 Cash paid for interest, processing fee
and commission
 Cash paid for policy dividend
Cash paid to staffs or paid for staffs                          779,694,520                               729,285,216
 Taxes paid                                                     468,777,176                               691,950,014
Other cash paid for business activities                         351,317,101                               241,928,444
Sub-total of cash outflow from business
                                                             11,104,668,976                            12,582,393,856
  activities
Net cash generated from /used in
                                                               3,803,441,801                            3,795,532,708
operating activities
II. Cash flow generated by investing
Cash received from investment
retrieving
Cash received as investment gains                               197,809,412                               165,708,684
Net cash retrieved from disposal of
fixed assets, intangible assets, and other                                                                  2,295,896
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash received
Sub-total of cash inflow due to
                                                                197,809,412                               168,004,580
investment activities
Cash paid for construction of fixed
    assets, intangible assets and other                        1,735,190,767                            1,769,542,620
    long-term assets
Cash paid as investment                                          78,938,898                                98,000,000
Net increase of loan against pledge
Net cash received from subsidiaries and
other operational units
Other cash paid for investment
activities
Sub-total of cash outflow due to
                                                               1,814,129,665                            1,867,542,620
investment activities
Net cash flow generated by investment                         -1,616,320,253                           -1,699,538,040
III.Cash flow generated by financing
Cash received as investment                                     297,000,000                                 4,000,000
Including: Cash received as investment
                                                                297,000,000                                 4,000,000
from minor shareholders
Cash received as loans                                         6,396,276,411                            7,575,961,501
Cash received from bond placing
Other financing –related cash received
Sub-total of cash inflow from financing
                                                               6,693,276,411                            7,579,961,501
activities
Cash to repay debts                                            7,933,799,586                            7,102,027,135
Cash paid as dividend, profit, or
                                                               1,320,358,435                            1,505,845,837
interests


                                                                                                                    65
                                             Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


Including: Dividend and profit paid by
                                                                282,847,942                               327,712,545
subsidiaries to minor shareholders
Other cash paid for financing activities                                                                  136,080,000
Sub-total of cash outflow due to
                                                               9,254,158,021                            8,743,952,972
financing activities
Net cash flow generated by financing                          -2,560,881,610                           -1,163,991,471
IV. Influence of exchange rate
                                                                           45                                       93
alternation on cash and cash equivalents
V.Net increase of cash and cash
                                                               -373,760,017                               932,003,290
equivalents
Add: balance of cash and cash
                                                               5,570,382,892                            4,996,580,490
equivalents at the beginning of term
VI ..Balance of cash and cash
                                                               5,196,622,875                            5,928,583,780
equivalents at the end of term


6. Cash flow statement of the Parent Company

                                                                                                                In RMB
                  Items                       Semi-annual of 2019                      Semi-annual of 2018
I.Cash flows from operating activities
Cash received from sales of goods or
                                                               1,136,209,449                            1,280,393,400
rending of services
 Tax returned
Other cash received from business
                                                                    26,129,308                               30,151,895
operation
Sub-total of cash inflow                                       1,162,338,757                            1,310,545,295
Cash paid for purchasing of
                                                                881,437,635                             1,071,447,386
merchandise and services
Cash paid to staffs or paid for staffs                          139,542,668                               142,438,363
Taxes paid                                                          40,999,760                               30,081,576
Other cash paid for business activities                             26,198,514                               34,140,083
Sub-total of cash outflow from business
                                                               1,088,178,577                            1,278,107,408
  activities
Net cash generated from /used in
                                                                    74,160,180                               32,437,887
operating activities
II. Cash flow generated by investing
Cash received from investment
                                                                300,209,927                               187,920,000
retrieving
Cash received as investment gains                               969,950,713                               959,750,429
Net cash retrieved from disposal of
fixed assets, intangible assets, and other                           3,808,750                                  19,137
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash received
 Sub-total of cash inflow due to
                                                               1,273,969,390                            1,147,689,566
investment activities
Cash paid for construction of fixed
    assets, intangible assets and other                             11,242,719                               57,108,206
    long-term assets
     Cash paid as investment                                    980,554,158                               546,000,000
Net cash received from subsidiaries and
other operational units

                                                                                                                     66
                                           Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


Other cash paid for investment
activities
Sub-total of cash outflow due to
                                                              991,796,877                               603,108,206
investment activities
Net cash flow generated by investment                         282,172,513                               544,581,360
III. Cash flow generated by financing
  Cash received as investment
     Cash received as loans                                  1,499,400,000                            3,030,805,608
 Cash received from bond placing
Other financing –related ash received
  Sub-total of cash inflow from
                                                             1,499,400,000                            3,030,805,608
financing activities
  Cash to repay debts                                        1,401,515,857                            3,059,693,500
Cash paid as dividend, profit, or
                                                              401,603,186                               567,661,585
interests
Other cash paid for financing activities
  Sub-total of cash outflow due to
                                                             1,803,119,043                            3,627,355,085
financing activities
Net cash flow generated by financing                         -303,719,043                              -596,549,477
IV. Influence of exchange rate
                                                                       45                                        93
alternation on cash and cash equivalents
V.Net increase of cash and cash
                                                               52,613,695                               -19,530,137
equivalents
Add: balance of cash and cash
                                                              385,577,463                               429,724,538
equivalents at the beginning of term
VI ..Balance of cash and cash
                                                              438,191,158                               410,194,401
equivalents at the end of term




                                                                                                                  67
                                                                                                                Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019
 7. Consolidated Statement on Change in Owners’ Equity

 Amount in this period
                                                                                                                                                                                       In RMB


                                                                                                Semi-annual of 2019
                                                               Owner’s equity Attributable to the Parent Company
                                        Other Equity
                                         instrument                                     Spec                    Com
        Items                                                          Less:                                                                                      Minor
                                                                                Other   ializ                   mon                                                             Total of owners’
                                                          Capital      Share                      Surplus                                                      shareholders’
                        share Capita prefe Sust                              Comprehens ed                       risk Retained profit Other     Subtotal                             equity
                                                         reserves       s in                      reserves                                                        equity
                                                Oth                          ive Income reser                   provi
                                      rred aina                        stock
                                                er                                       ve                     sion
                                     stock ble
                                           debt
I.Balance at the end
                        5,250,283,986                  5,102,846,886         550,010,133        7,834,155,143          5,490,006,140          24,227,302,288   7,290,519,359 31,517,821,647
of last year
Add: Change of
    accounting
    policy
Correcting of
previous errors
Merger of entities
under common
control
       Other
II.Balance at the
beginning of current 5,250,283,986                     5,102,846,886         550,010,133        7,834,155,143          5,490,006,140          24,227,302,288   7,290,519,359 31,517,821,647
year
III.Changed in the
                                                                              57,512,582         411,612,450            -145,060,106            324,064,926      288,435,964        612,500,890
current year
(1)Total
comprehensive                                                                 57,512,582                                 581,569,383            639,081,965      274,283,906        913,365,871
income
(II)Investment or
decreasing of capital                                                                                                                                            297,000,000        297,000,000
by owners
1.Ordinary Shares i                                                                                                                                             297,000,000        297,000,000

                                                                                                                                                                                              68
                                      Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019
nvested by sharehold
ers
2.Holders of other
equity instruments in
vested capital
3.Amount of shares
paid and accounted
as owners’ equity
4.Other
(III)Profit
                        411,612,450          -726,629,489           -315,017,039   -282,847,942    -597,864,981
allotment
1.Providing of
                        411,612,450           -411,612,450
surplus reserves
 2.Providing of
common risk
provisions
3.Allotment to the
owners (or                                   -315,017,039           -315,017,039   -282,847,942    -597,864,981
shareholders)
4.Other
(IV) Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves (or
to capital shares)
3.Making up losses
by surplus reserves.
4.Change amount of
defined benefit plans
that carry forward
Retained earnings
5.Other
comprehensive
income carry-over

                                                                                                             69
                                                                                                                    Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019
retained earnings
6.Other
(V). Special reserves
1. Provided this year
2.Used this term
   (VI)Other
IV. Balance at the
                          5,250,283,986                   5,102,846,886        607,522,715       8,245,767,593              5,344,946,034           24,551,367,214    7,578,955,323 32,130,322,537
end of this term
  Amount in last year
                                                                                                                                                                                             In RMB
                                                                                                      Semi-annual of 2018
                                                                     Owner’s equity Attributable to the Parent Company
                                           Other Equity
                                            instrument
         Items                                                              Less:            Speci                     Comm                                                  Minor
                                                                                     Other                                                                                                 Total of
                                                               Capital      Share            alized      Surplus       on risk     Retained                               shareholders’
                            share Capita prefe Sust                               Comprehens                                                     Other     Subtotal                      owners’ equity
                                                    Othe      reserves       s in            reser       reserves      provisi      profit                                   equity
                                          rred aina                               ive Income
                                                     r                      stock              ve                        on
                                         stock ble
                                               debt
I.Balance at the end of
                           5,250,283,986                    5,004,250,685         137,001,523          7,590,363,724             5,713,290,735           23,695,190,653 6,007,669,360 29,702,860,013
last year
Add:    Change      of
    accounting policy
Correcting of previous
errors
Merger of entities
under common control
       Other
II.Balance at the
beginning of current       5,250,283,986                    5,004,250,685         137,001,523          7,590,363,724             5,713,290,735           23,695,190,653 6,007,669,360 29,702,860,013
year
III.Changed in the
                                                                                  -46,851,817            243,791,419             -215,017,477               -18,077,875    -175,706,830    -193,784,705
current year
(1)Total
                                                                                  -46,851,817                                     448,833,518              401,981,701     284,085,715      686,067,416
comprehensive income

                                                                                                                                                                                                    70
                                    Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019
(II)Investment or
decreasing of capital by                            -36,857               -36,857   -132,080,000   -132,116,857
owners
1.Ordinary Shares inv
                                                                                       4,000,000      4,000,000
ested by shareholders
2 . Holders of other eq
uity instruments investe
d capital
3.Amount of shares
paid and accounted as
owners’ equity
4.Other                                            -36,857               -36,857   -136,080,000   -136,116,857
(III)Profit allotment     243,791,419        -663,814,138          -420,022,719   -327,712,545   -747,735,264
1.Providing of surplus
                            243,791,419        -243,791,419
reserves
 2.Providing           of
common               risk
provisions
3.Allotment to the
owners (or                                     -420,022,719          -420,022,719   -327,712,545   -747,735,264
shareholders)
     4.Other
(IV) Internal
transferring of owners’
equity
1. Capitalizing of
capital reserves (or to
capital shares)
2. Capitalizing of
surplus reserves (or to
capital shares)
3.Making up losses by
surplus reserves.
4.Change amount of
defined benefit plans
that carry forward
Retained earnings
5.Other
                                                                                                           71
                                                                                                               Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019
comprehensive income
carry-over retained
earnings
6.Other
(V). Special reserves
1. Provided this year
2.Used this term
  (VI)Other
IV. Balance at the end
                          5,250,283,986                   5,004,250,685          90,149,706         7,834,155,143         5,498,273,258       23,677,112,778 5,831,962,530 29,509,075,308
of this term


  8. Statement of change in owner’s Equity of the Parent Company

  Amount in this period
                                                                                                                                                                                      In RMB
                                                                                                               Semi-annual of 2019
                                                                     Other Equity instrument                                   Speci
                         Items                                                                              Less:     Other
                                                                              Sustain                                          alized        Surplus                        Oth Total of owners’
                                                     Share capital   preferre             Capital reserves Shares Comprehensiv                            Retained profit
                                                                               able Other                                      reser         reserves                        er      equity
                                                                     d stock                               in stock e Income
                                                                               debt                                              ve

  I.Balance at the end of last year                  5,250,283,986                             5,605,794,601           550,010,133        7,834,155,143 4,472,241,538            23,712,485,401

  Add: Change of accounting policy
  Correcting of previous errors
           Other
  II.Balance at the beginning of current year        5,250,283,986                             5,605,794,601           550,010,133        7,834,155,143 4,472,241,538            23,712,485,401

  III.Changed in the current year                                                                                       57,512,582          411,612,450     154,867,058             623,992,090
  (I)Total comprehensive income                                                                                       57,512,582                          881,496,547             939,009,129
  (II) Investment or decreasing of capital by
  owners
  1.Ordinary Shares invested by shareholders
  2 . Holders of other equity instruments investe
  d capital
  3.Amount of shares paid and accounted as
                                                                                                                                                                                            72
                                                                                                                  Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019
owners’ equity
4.Other
(III)Profit allotment                                                                                                                        411,612,450   -726,629,489            -315,017,039
1.Providing of surplus reserves                                                                                                                411,612,450   -411,612,450
2.Allotment to the owners (or shareholders)                                                                                                                 -315,017,039            -315,017,039
3.Other
(IV) Internal transferring of owners’ equity
1. Capitalizing of capital reserves (or to capital
shares)
2. Capitalizing of surplus reserves (or to capital
shares)
3.Making up losses by surplus reserves.
4.Change amount of defined benefit plans that
carry forward
Retained earnings
5.Other comprehensive income carry-over
retained earnings
6.Other
(V) Special reserves
1. Provided this year
2.Used this term
(VI)Other
IV. Balance at the end of this term                  5,250,283,986                              5,605,794,601             607,522,715        8,245,767,593 4,627,108,596           24,336,477,491
Amount in last year
                                                                                                                                                                                       In RMB
                                                                                                                  Semi-annual of 2018
                                                                     Other Equity instrument
                        Items                                                                                     Less:    Other   Special
                                                                     preferr                      Capital                                      Surplus       Retained                Total of
                                                     Share Capital           Sustaina                            Shares Comprehensi ized                                   Other
                                                                        ed            Other      reserves                                      reserves       profit               owners’ equity
                                                                             ble debt                           in stock ve Income reserve
                                                                      stock
I.Balance at the end of last year                    5,250,283,986                             5,605,794,601             137,001,523         7,590,363,724 3,960,056,960           22,543,500,794

Add: Change of accounting policy
Correcting of previous errors
                                                                                                                                                                                             73
                                                                                     Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019

        Other
II.Balance at the beginning of current year          5,250,283,986   5,605,794,601         137,001,523          7,590,363,724 3,960,056,960       22,543,500,794

III.Changed in the current year                                                             -46,851,817           243,791,419   332,669,573          529,609,175
(I)Total comprehensive income                                                             -46,851,817                         996,520,568          949,668,751
(II) Investment or decreasing of capital by
                                                                                                                                     -36,857             -36,857
owners
1.Ordinary Shares invested by shareholders
2 . Holders of other equity instruments investe
d capital
3.Amount of shares paid and accounted as
owners’ equity
4.Other                                                                                                                             -36,857             -36,857
(III)Profit allotment                                                                                           243,791,419 -663,814,138          -420,022,719
1.Providing of surplus reserves                                                                                   243,791,419 -243,791,419
2.Allotment to the owners (or shareholders)                                                                                    -420,022,719        -420,022,719
3.Other
(IV) Internal transferring of owners’ equity
1. Capitalizing of capital reserves (or to capital
shares)
2. Capitalizing of surplus reserves (or to capital
shares)
3.Making up losses by surplus reserves.
4.Change amount of defined benefit plans that
carry forward Retained earnings
5.Other comprehensive income carry-over
retained earnings
6.Other
(V) Special reserves
1. Provided this year
2.Used this term
(VI)Other
IV. Balance at the end of this term                  5,250,283,986   5,605,794,601           90,149,706         7,834,155,143 4,292,726,533       23,073,109,969


                                                                                                                                                            74
                                              Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


III.Basic Information of the Company

Guangdong Electric Power Development Co., Ltd. (the “Company”) is a limited liability company jointly
established by Guangdong Electric Power Holding Company, China Construction Bank Guangdong Province
Trust Investment Company, Guangdong Power Development Co., Ltd, Guangdong International Trust, China
Guangfa Bank(now named as Guangdong Province Guangkong Group Co., Ltd.). The address of the Company’s
registered office and head office is F33~F36 South Tower Building of Yudean Square on 2nd Tianhe East Road,
Guangzhou City, Guangdong Province, the People’s Republic of China. The Company’s parent company is
Guangdong Energy Group Co., Ltd. (“Energy Group ”) , The actual controller of the company is the State-owned
Assets Supervision and Administration Commission of the People’s Government of Guangdong Province.


The Company’s issuing RMB ordinary shares (“A-share”) and domestic listed foreign shares (“B-share”) are
listed for transactions in Shenzhen Stock Exchange respectively on 26 November 1993 and 28 June 1995. As at 30
June 2019, the total share capital of the Company is RMB 5,250,283,986 with par value of RMB 1 each.


The financial statement has been approved for issue by the Company’s Board of Directors on 29 August 2019.


The Company and its subsidiaries (hereinafter collectively referred to as the “Group”) are principally engaged in the
development and operation of power plants in Guangdong Province.
For the Consolidation scope changed of the Group, please refer to VIII.
For the information of subsidiaries of the Company, please refer to Note IX.

IV.Basis for the preparation of financial statements

1.Basis for the preparation

The financial statements are prepared in accordance with the Accounting Standard for Business Enterprises -
Basic Standard, and the specific accounting standards and other relevant regulations issued by the Ministry of
Finance on 15 February 2006 and in subsequent periods (hereafter collectively referred to as “the Accounting
Standard for Business Enterprises” or “CAS”), and “Information Disclosure Rule No. 15 for Companies with
Public Traded Securities - Financial Reporting General Provision” issued by China Security Regulatory
Commission.

2. Continuous operation.

The Company since 12 months after the reporting period does not exist on the company's continued viability of si
gnificant concern events or circumstances.


V. Significant accounting policies and accounting estimates




                                                                                                                     75
                                               Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


Specific accounting policies and accounting estimates tips:
The Group continually evaluates the critical accounting estimates and key judgements applied based on historical
experience and other factors, including expectations of future events that are believed to be reasonable under the
circumstances. The critical accounting estimates and key assumptions that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within the next accounting year are outlined
below:

(a) Estimates on impairment of other long-term assets
Fixed assets, construction in progress, intangible assets with finite useful lives, investment properties that are
measured at cost and long-term equity investments in subsidiaries, joint ventures and associates are tested for
impairment if there’s indications that the assets may be impaired the balance sheet date.
When assessing whether there’s indication that the above assets are impaired, management mainly evaluate and
analyse: (1) whether events affecting asset impairment occurred; (2) whether the present value of expected cash
flows arising from the continuing use or disposal of the asset is lower than its carrying amount; (3) whether the
assumptions used in estimating the present value of future cash flows is appropriate.
Relevant assumptions adopted by the Group to determine impairment, e.g. changes in assumptions on discount
rate and growth rate used to calculate the present value of future cash flows may have material impact on the
present value used in the impairment test, and cause impairment in the above-mentioned long-term assets of the
Group.


(b) Enterprise income tax
  The Group pays corporate income tax in many areas. In normal business activities,, there are uncertainties in
the final tax treatment of partial transactions and matters. When counting and drawing the income tax costs in
various areas, the Group needs to make a major judgement. If there is any difference between the final
determination of these tax matters and the amount originally recorded, the difference will have an impact on the
amount of the income tax expenses and the deferred income tax during the period of final determination above.


(c) Deferred tax assets
Whether to confirm the assets of the deferred income tax assets arising from deductible losses and deductible
temporary differences largely depends on the management’s judgement that whether to acquire sufficient amount
of income of future taxable which can be used to deduct deductible losses and deductible temporary differences in
the future period, while the calculation of this amount of income of future taxable needs applying plenty of
judgement and estimation, and it needs combined consideration for the tax planning strategy and the influence
from the overall economic environment in the meanwhile. Different judgement and estimation will have an impact
on the confirmation and the amount of the deferred income tax assets.
When assessing whether there will be sufficient future taxable profits available against which the deductible
temporary differences can be utilised, the Group recognises deferred tax assets to the extent that it is probable that
future taxable profits will be available against which the deductible temporary differences can be utilised, using
tax rates that would apply in the period when the asset would be utilised. In determining the amount of deferred
tax assets, the Group exercises judgements about the estimated timing and amount of taxable profits of the
following periods, and of the tax rates applicable in the future according to the existing tax policies and other
relevant regulations. Differences between such estimates and the actual timing and amount of future taxable
profits will affect the amount of deferred tax assets.


                                                                                                                      76
                                               Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019




1.Complying with the statements in Accounting Standards for Business Enterprises
  The financial Report and statements are prepared with compliance to the requirement of the Enterprise
Accounting Standard. They reflect the financial position as of June 30, 2019 as well as the business performance
and cash flow situation in the first half of 2019 of the Company frankly and completely.

2. Accounting period

Fiscal year is dated from Gregorian calendar Jan., 1 to Gregorian calendar December., 31.
The accounting of the financial statements during the period starts from January 1, 2019 to 6 months ended June 3
0,2019.

3.Business cycle

The Company’s normal business cycle is the period from the acquisition of assets such as those for the generation
of electricity to the realisation of cash or cash equivalents. The business cycles for principal activities are usually
less than 12 months.

4. Functional currency

The Company’s functional currency is Renminbi and these financial statements are presented in Renminbi.
5. Accounting process method of enterprise consolidation under same and different controlling.

(1) Business combinations involving enterprises under common control


The consideration the combining party paid for the combination and the carrying amount of the net assets
obtained are measured at carrying amount. The difference between the carrying amount of the net assets obtained
and the carrying amount of consideration paid for the combination is adjusted to share premium (capital premium)
in the capital reserve. If the balance of share premium (capital premium) is insufficient, any excess is adjusted to
retained earnings. Any costs directly attributable to the combination are recognized in profit or loss for the current
period when occurred. The transaction costs of issuing equity or debt securities for business combinations.
(2) Business combinations not involving enterprises under common control
The acquirer’s combining costs and the identifiable net assets obtained at the acquisition date are measured at fair
value. If the combining costs are greater than the fair value of identifiable net assets at the acquisition date, the
difference is recognized as goodwill; if the combining costs are less than the fair value of identifiable net assets at
the acquisition date, the difference is recognized in profit or loss for the current period. The direct
acquisition-related costs arising from the business combination are recognized as expenses in the periods in which
the costs are incurred. The costs of the issuance of equity or debt securities as a part of the consideration paid for
the acquisition are included as a part of initial recognition amount of the equity or debt securities.

6.Preparation of the consolidated financial statements

The consolidated financial statements comprise the financial statements of the Company and all of its subsidiaries.


Subsidiaries are consolidated from the date on which the Group obtains control and are de-consolidated from the


                                                                                                                      77
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date that such control ceases. For a subsidiary that is acquired in a business combination involving enterprises
under common control, it is included in the consolidated financial statements from the date when it, together with
the Company, comes under common control of the ultimate controlling party. The portion of the net profits
realised before the combination date is presented separately in the consolidated income statement.


In the preparation of consolidated financial statements, if the accounting policies or accounting period among the
Company and subsidiaries are inconsistent, the financial statements of subsidiaries have been adjusted to conform
to the Company’s policies and accounting period. For business combination not obtained under common control,
the financial statements have been adjusted based on the fair value of net recognisable asset on the acquisition
date.


All significant intra-group balances, transactions and unrealised profits are eliminated in the consolidated financial
statements. The portion of subsidiaries’ owners’ equity and the portion of subsidiaries’ net profits and losses and
comprehensive incomes for the period not attributable to the Company are recognised as minority interests, net
profit attributed to minority interests and total comprehensive incomes attributed to minority interests and
presented separately in the consolidated financial statements under owners’ equity, net profits and total
comprehensive income respectively. When the Company sells assets to subsidiaries, the unrealised gains and
losses should fully offset the net profit attributed to shareholders of the parent company; when subsidiaries sell
assets to the Company, the unrealised gains and losses should be assigned and offset between the net profit
attributed to shareholders of the parent company and minority interests according to the Company’s distribution
ratio of the subsidiary. The unrealised gains and losses between subsidiaries should be assigned and offset
between the net profit attributed to shareholders of the parent company and minority interests according to the
parent company’s distribution ratio of the subsidiary.


In preparing the consolidated financial statements, where the accounting policies and the accounting periods of the
Company and subsidiaries are inconsistent, the financial statements of the subsidiaries are adjusted in accordance
with the accounting policies and the accounting period of the Company. For subsidiaries acquired from business
combinations involving enterprises not under common control, the individual financial statements of the
subsidiaries are adjusted based on the fair value of the identifiable net assets at the acquisition date.

7. The joint-venture arrangement classification and pooling of interests accounting processing methods

The joint-venture arrangement comprises the pooling of interests and joint-venture enterprise. The pooling of
interests is the joint-venture arrangement where the participant possesses the relevant assets arranged and will
undertake relevant debts. The joint venture enterprise is the arrangement where the participant only reserves rights
on the net assets. The Group, based on the rights and obligations in the normal operation of the joint-venture
arrangement, determines the classes of the joint-venture arrangement. And it also takes account of the structure
and legal form of the joint-venture arrangement, the agreed terms and conditions, other relevant facts and
conditions, etc. among the joint-venture arrangement upon evaluation of rights and obligations.
The Group determines the following projects sharing interests in the pooling of interests and conducts the
accounting processing based on relevant accounting standards for business enterprises:
(I) determining assets possessed solely and the jointly-possessed assets based on its share;



                                                                                                                      78
                                                Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


 (II) determining debts undertaken solely and the shared debts based on its share;


 (III) determining the revenues produced by the pooling of interests owned by the on-sale group;


 (IV) determining the revenues produced by the pooling of interests through sale based on the group share;


 (V) determining the fees occurred solely and those of the pooling of interests based on the its share.
 If the Group invests or sells the assets, etc. to the pooling of interests (except for the business constituted by the
assets), it will only ascertain the partial profits and losses produced by such trade and attributable to the other
participants of the pooling of interests before selling such assets, etc. to any third party. If the invested or sold
assets have the impairment losses per Accounting Standards for Business Enterprises No. 8 - Assets Impairment,
the group will ascertain such losses wholly.
If the Group purchases the assets, etc. from the pooling of interests (except for the business constituted by the
assets), it will only ascertain the partial profits and losses produced by such trade and attributable to the other
participants of the pooling of interests before selling such assets, etc. to any third party. If the purchased assets
have the impairment losses per Accounting Standards for Business Enterprises No. 8 - Assets Impairment, the
group will ascertain such losses wholly based on its share.

8.Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, demand deposits, and short-term, highly liquid investments,
which are readily convertible into known amounts of cash and are subject to an insignificant risk of change in
value.

9.Foreign currency transactions

Foreign currency transactions are translated into recording currency using the exchange rates prevailing at the
dates of the transactions. At the balance sheet date, monetary items denominated in foreign currencies are
translated into RMB using the spot exchange rates on the balance sheet date. Exchange differences arising from
these translations are recognised in profit or loss for the current period, except for those attributable to foreign
currency borrowings that have been taken out specifically for acquisition or construction of qualifying assets,
which are capitalised as part of the cost of those assets. Non-monetary items denominated in foreign currencies
that are measured at historical costs are translated at the balance sheet date using the spot exchange rates at the
date of the transactions. The effect of exchange rate changes on cash is presented separately in the cash flow
statement.

10. Financial instruments

Financial instruments refer to contracts that form financial assets of one party and financial liabilities or equity
instruments of other parties. When the Group becomes a party to a financial instrument contract, the relevant
financial assets or financial liabilities are recognized.
(a) Financial assets
(i) Classification and measurement


                                                                                                                       79
                                              Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


According to the business model for managing financial assets and the contractual cash flow characteristics of
financial assets, the Group classifies financial assets into: (1) Financial assets measured in amortized cost; (2)
Financial assets measured at fair value, whose changes are included in other comprehensive income; (3) Financial
assets measured at fair value and whose changes are included in current profits and losses.
The initial measurement of financial assets is calculated by using fair value. For financial assets measured at fair
value, whose changes are included in current profits and losses, relevant transaction costs are directly included in
current profits and losses; For other types of financial assets, relevant transaction costs are included in the initial
recognition amount. Accounts receivable or notes receivable arising from the sale of products or the provision of
labor services that do not include or take into account significant financing components are initially recognized by
the Group in accordance with the amount of consideration that the Group is expected to be entitled to receive.
Debt instrument
Debt instruments held by the Group refer to instruments that meet the definition of financial liabilities from the
perspective of the issuer and are measured in the following ways:
Measured in amortized cost:
The Group's business model for managing such financial assets is to collect the contractual cash flow, and the
contractual cash flow characteristics of such financial assets are consistent with the basic lending arrangements,
that is, the cash flow generated on a specific date is only the payment of principal and interest based on the
amount of outstanding principal. The Group recognizes interest income for such financial assets according to the
effective interest rate method. Such financial assets mainly include monetary funds, accounts receivable, other
receivables and long-term receivables. The Group lists long-term receivables due within one year (including one
year) from the balance sheet date as non-current assets due within one year.
Equity instruments
The Group will measure the equity instrument investments that it has no control, joint control and significant
influence on at fair value, and their changes are included in the current profits and losses, and listed as trading
financial assets.
In addition, the Group designated some non-trading equity instrument investments as financial assets measured at
fair value with changes included in other comprehensive income and listed them as other equity instrument
investments. Dividend income related to such financial assets is included in current profits and losses.
 (ii) Impairment
For financial assets measured in amortized cost, the Group recognizes loss reserves on the basis of expected credit
losses.
The Group takes into account reasonable and reliable information on historical events, current situation and future
economic situation forecasts, and uses the risk of default as the weight to calculate the probability weighted
amount of the present value of the difference between the cash flow receivable from the contract and the cash flow
expected to be received to confirm the expected credit loss.
On each balance sheet date, the Group separately measures the expected credit losses of financial instruments at
different stages. If the credit risk of financial instruments has not increased significantly since the initial
confirmation, it is in the first stage. The Group measures the loss reserve according to the expected credit loss in
the next 12 months; If the credit risk of a financial instrument has increased significantly since its initial
recognition but no credit impairment has occurred, it is in the second stage. The Group measures the loss reserve
according to the expected credit loss of the instrument throughout the duration; If a financial instrument has
suffered credit impairment since its initial recognition, it is in the third stage. The Group measures the loss reserve
according to the expected credit loss of the instrument throughout the duration.


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                                               Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


For financial instruments with low credit risk on the balance sheet date, the Group assumes that their credit risk
has not increased significantly since the initial confirmation, and measures the loss reserve according to the
expected credit loss in the next 12 months.
For financial instruments in the first and second stages and with low credit risk, the Group calculates interest
income based on the book balance before deducting impairment provisions and the actual interest rate. For
financial instruments in the third stage, the interest income shall be calculated according to their book balance
minus the amortized cost after impairment provision and the actual interest rate.
For accounts receivable, regardless of whether there is any significant financing component, the Group measures
the loss reserve according to the expected credit loss throughout the duration.
When a single financial asset cannot evaluate the expected credit loss information at a reasonable cost, the Group
divides the receivables into several combinations according to the credit risk characteristics, calculates the
expected credit loss on the basis of the combinations, and determines the combination on the following basis:
Low-risk portfolio: Accounts receivable from electricity sales, government and related parties, supplementary
medical insurance funds, etc.
Other portfolios: This portfolio is receivables other than low-risk portfolios.
For accounts receivable divided into combinations, the Group refers to the historical credit loss experience,
combines the current situation with the forecast of future economic situation, compiles a comparison table of
overdue days of accounts receivable and the expected credit loss rate for the whole duration, and calculates the
expected credit loss.
For other receivables divided into portfolios, the Group refers to the historical credit loss experience, combines the
current situation with the forecast of future economic situation, and calculates the expected credit loss through
default risk exposure and the expected credit loss rate within the next 12 months or the whole duration.
The Group includes the accrued or reversed loss reserves into the current profits and losses.
(iii) Derecognition of financial assets
A financial asset is derecognised when: (i) the contractual rights to the cash flows from the financial asset expire,
(ii) the financial asset has been transferred and the Group transfers substantially all the risks and rewards of
ownership of the financial asset to the transferee, or (iii) the financial asset has been transferred and the Group has
not retained control of the financial asset, although the Group neither transfers nor retains substantially all the
risks and rewards of ownership of the financial asset.
When the investment in other equity instruments is derecognized, the difference between the book value and the
consideration received and the accumulated amount of the changes in fair value originally included in other
comprehensive income shall be included in the retained income; On derecognition of a financial asset, the
difference between the carrying amount and the sum of the consideration received and the cumulative changes in
fair value that had been recognised directly in owners’ equity, is recognised in profit or loss.


(b) Financial liabilities
Financial liabilities are classified into the following categories at initial recognition: financial liabilities at fair
value through profit or loss and other financial liabilities.
The financial liabilities of the Group are other comprise financial liabilities, including payables, borrowings and
debentures payable. This kind of financial liabilities are initially measured according to their fair value after
deducting transaction costs, and are subsequently measured using the effective interest rate method. If the term is
less than one year (including one year), it shall be listed as current liabilities; If the term is more than one year but
expires within one year (including one year) from the balance sheet date, it shall be listed as non-current liabilities


                                                                                                                      81
                                               Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


due within one year; The rest is listed as non-current liabilities.
When the current obligation of the financial liability has been discharged in whole or in part, the Group terminates
the recognition of the part of the financial liability or obligation that has been discharged. The difference between
the book value of the termination recognition and the consideration paid shall be included in the profit and loss of
the current period.
(c) Determination of the fair value of the financial instruments
The fair value of a financial instrument that is traded in an active market is determined at the quoted price in the
active market. The fair value of a financial instrument that is not traded in an active market is determined by using
a valuation technique. Valuation techniques include using prices of recent market transactions between
knowledgeable and willing parties, reference to the current fair value of another financial asset that is substantially
the same with this instrument, and discounted cash flow analysis, etc. When a valuation technique is used to
establish the fair value of a financial instrument, it makes the maximum use of observable market inputs and relies
as little as possible on entity-specific inputs. When the observable inputs are not available or are unrealistic to
obtained, unobservable inputs shall be used

11.Notes receivable

12. Account receivable

13. Financing of receivables

14.Other account receivable

Determination method of expected credit loss of other receivables and accounting treatment method

15. Inventories

Whether the company needs to comply with the disclosure requirements of the particular industry
No
(a) Classification
Inventories include fuel and spare parts measured at the lower of cost and net realisable value..


(b) Cost of inventories transferred out


Cost of fuel transferred out is calculated using the weighted average method. Spare parts are amortised in full
when received for use.


(c) Basis for determining the net realisable value of inventories and provisioning methods for decline in value of
inventories
 Any excess of the cost over the net realisable value of inventories is recognised as a provision for diminution in
the value of inventories. Net realisable value is measured by the estimated selling price in the ordinary course of
business less the estimated costs necessary to make the sale and relevant taxes.
(d) The Group maintains a perpetual inventory system..


                                                                                                                      82
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 16. Contract assets

 17.Contract cost

 18. Held-for-sale assets

 The non-liquid assets or the treatment group complied with the following conditions will be classified into the
 possessed assets for sale: (I) the non-liquid assets or the treatment group is ready for sale subject to the common
 terms and conditions for such assets or the treatment group under the current conditions; (II) the group has already
 made a resolution on treatment of such non-liquid assets or the treatment group and obtained proper approval; (III)
 the Group has already concluded an irrevocable transfer agreement with the assignee; (IV) such transfer will be
 completed within one year.
 The non-liquid assets complied with the conditions for the possessed assets for sale (excluding the financial assets,
 the investment real estate calculated based on its fair value and the deferred income tax assets) will be the lower
 amount between the book value and the fair value minus the treatment cost. If the fair value minus the treatment
 cost is lower than the original book value, then it will be deemed as the asset deprecation loss.
 The non-liquid assets classified into the processed assets ready for sale and the assets and debts in the treatment
 group comprise the liquid assets and liquid debts to be listed separately in the balance sheet.
 Termination is a separately distinguishable component meeting one of the following conditions, and the
 component has been disposed of or classified as held for sale: (a) The component represents an independent major
 business or a separate major business area; (b) This component is part of an associated plan to dispose of an
 independent major business or a separate major business area; (c) This component is a subsidiary acquired
 specifically for resale.
 Net profit from discontinued operations listed in the income statement includes its operating profit and loss and
 disposal profit and loss.

 19. Creditor's rights investment

 20.Other Creditor's rights investment

 21.Long-term account receivable

22. Long-term equity investment

 Long-term equity investments comprise the Company’s long-term equity investments in its subsidiaries and the
 Group’s long-term equity investments in its associates.
 Subsidiaries are the investees over which the Company is able to exercise control. Associates are the investees
 over which the Group has significant influence, but not control, on their financial and operating policies.
 Investments in subsidiaries are presented in the Company’s financial statements using the cost method, and are
 adjusted to the equity method when preparing the consolidated financial statements. Investments in associates are
 accounted for using the equity method.
 (a) Determination of investment cost
 For long-term equity investments acquired through a business combination: for long-term equity investments
 acquired through a business combination involving enterprises under common control, the investment cost shall
 be the absorbing party’s share of the carrying amount of owners’ equity of the party being absorbed at the


                                                                                                                       83
                                                Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


combination date; for long-term equity investment acquired through a business combination involving enterprises
not under common control, the investment cost shall be the combination cost. For long-term equity investments
acquired not through a business combination: if the long-term equity investments are acquired in cash, the initial
investment cost shall be the purchase price actually paid; if the long-term equity investments are acquired by
issuing equity securities, the initial investment cost shall be the fair value of the equity securities.
(b) Subsequent measurement and recognition of related profit and loss


For long-term equity investments accounted for using the cost method, they are measured at the initial investment
costs, and cash dividends or profit distribution declared by the investees are recognised as investment income in
profit or loss.
For long-term equity investments accounted for using the equity method, where the initial investment cost exceeds
the Group’s share of the fair value of the investee’s identifiable net assets at the time of acquisition, the investment
is initially measured at cost. Where the initial investment cost is less than the Group’s share of the fair value of the
investee’s identifiable net assets at the time of acquisition, the difference is included in profit or loss for the
current period and the cost of the long-term equity investment is adjusted accordingly.
For long-term equity investments accounted for using the equity method, the Group recognises the investment
income or losses according to its share of net profit or loss of the investee. The Group discontinues recognising its
share of net losses of an investee after the carrying amount of the long-term equity investment together with any
long-term interests that, in substance, form part of the investor’s net investment in the investee are reduced to zero.
However, if the Group has obligations for additional losses and the criteria with respect to recognition of
provisions under the accounting standards on contingencies are satisfied, the Group continues recognising the
investment losses and the provisions. The Company shall adjust the carrying amount of the long term investment
for other changes in shareholders’ equity of the investee (other than net profits or losses), and include the
corresponding adjustment in shareholders’ equity. The carrying amount of the investment is reduced by the
Group’s share of the profit distribution or cash dividends declared by an investee. The unrealised profits or losses
arising from the intra-group transactions amongst the Group and its investees are eliminated in proportion to the
Group’s equity interest in the investees, and then based on which the investment gains or losses are recognised.
For the loss on the intra-group transaction amongst the Group and its investees attributable to asset impairment,
any unrealised loss is not eliminated.
(c) Basis for determining existence of control and significant influence over investees
Control is the power to govern the investee so as to obtain variable returns by participating in the related business
activities of the investees and the ability to affect the returns by exercising its power over the investees.
Joint control is the contractually agreed sharing of control over an investee’s economic activities, and exists only
when the strategic financial and operating decisions relating to the activities require the unanimous consent of the
Group and the parties sharing the control.
Significant influence is the power to participate in the financial and operating policy decisions of the investee, but
is not control or joint control over those policies.
(d) Impairment of long-term equity invest
The carrying amount of long-term equity investments in subsidiaries, joint venture, and associates is reduced to
the recoverable amount when the recoverable amount is less than the carrying amount




                                                                                                                       84
                                                   Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


23. Investment properties

The measurement mode of investment property
The measurement by the cost method
Depreciation or amortization method
Investment properties, including land use rights that have already been leased out and buildings that are held for
the purpose of leasing are measured initially at cost. Subsequent expenditures incurred in relation to an investment
properties are included in the cost of the investment property when it is probable that the associated economic
benefits will flow to the Group and their costs can be reliably measured; otherwise, the expenditures are
recognised in profit or loss in the period in which they are incurred.
The Group adopts the cost model for subsequent measurement of investment properties. Buildings and land use
rights are depreciated or amortised to their estimated net residual values over their estimated useful lives. The
estimated useful lives, the estimated net residual values that are expressed as a percentage of cost and the annual
depreciation (amortisation) rates of investment properties are as follows:
   Estimated       useful   lives    Estimated      net    residual     value      Annual      depreciation      rates      Building
30 years     5%        3.17%    When an investment property is transferred to owner-occupied properties, it is
reclassified as fixed asset at the date of the transfer. The carrying amount of the fixed asset shall be measured on
the basis of fair value of the investment property.
The investment property’s estimated useful life, net residual value and depreciation (amortisation) method applied
are reviewed and adjusted as appropriate at each year-end.
An investment property is derecognised on disposal or when the investment property is permanently withdrawn
from use and no future economic benefits are expected from its disposal. The net amount of proceeds from sale,
transfer, retirement or damage of an investment property after its carrying amount and related taxes and expenses
is recognised in profit or loss for the current period.



24. Fixed assets

(1)Recognition of fixed assets

Fixed assets comprise plant and building, power generator equipment, motor vehicles and other equipment. Fixed
asset is recognised when it is probable that the related economic benefits will flow to the Group and its cost can be
reliably measured. Fixed assets purchased or constructed by the Group are initially measured at cost at the
acquisition date. The fixed assets injected by the state-owned shareholder during the restructuring of corporation
were initially recorded at the valuated amount approved by the relevant authorities managing state-owned assets.
Subsequent expenditures incurred for a fixed asset are included in the cost of the fixed asset when it is probable
that the economic benefits associated with the fixed asset will flow to the Group and the costs can be reliably
measured. The carrying amount of those parts that are replaced is derecognised and all the other subsequent
expenditures are recognised in income statement when they are incurred.
(2)Depreciation of fixed assets
                              The method for           Expected useful life
       Category                                                                 Estimated residual value        Depreciation
                                depreciation                (Year)
House and building          Straight-line method    6 - 50 years              5%                           1.90% - 15.83%
Generation equipment        Straight-line method    3 - 31 years              0% - 5%                      3.06% - 33.33%

                                                                                                                                  85
                                                 Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


Transportation            Straight-line method
                                                  5 - 15 years            0% - 5%                 6.33% - 20 %
equipment
Other equipment           Straight-line method    3 - 22 years            0% - 5%                 4.32% - 33.33%
According to the current unit shutdown plan of Shajiao A Power Plant, the Company expects that the service life
of some of its fixed assets will be greatly shortened. According to Article 19 of the Accounting Standards for
Business Enterprises No.4-Fixed Assets, the Company plans to adjust the depreciation period of fixed assets
related to houses and buildings, power generation equipment and other equipment of Shajiao A Power Plant to
make it more in line with the actual use of fixed assets.

 (3)Cognizance evidence and pricing method of financial leasing fixed assets

The lease that essentially transfers all the risks and returns related to the ownership of the asset is classified as
finance lease. The entry value of the fixed assets under finance lease the lower of its fair value and the present
value of the minimum lease payments. The difference between the entry value of the fixed asset under finance
lease and the present value of the minimum lease payment is recognised as unrecognised financing charges. Fixed
assets under finance lease share the same depreciation method with company owned fixed assets. If there is
reasonable certainty that the Group will obtain ownership of a leased asset at the end of the lease term, the leased
asset is depreciated over its estimated useful life. Otherwise, the leased asset is depreciated over the shorter of the
lease term and its estimated useful life.

25.Construction in progress

Construction in progress is measured at its actual costs incurred. Actual costs include construction cost,
installation cost, capitalised borrowing costs, and any other costs directly attributable to bringing the asset to
working condition for its intended use. When the construction in progress is ready for its intended use, it is
transferred to fixed assets and starts depreciation the following month. When recoverable amount of the
construction in progress is lower than its carrying value, its carrying value is then reduced to the recoverable
amount.

26.Borrowing costs

The borrowing costs that are directly attributable to the acquisition and construction of a fixed asset that needs a
substantially long period of time of acquisition and construction for its intended use commence to be capitalised
and recorded as part of the cost of the asset when expenditures for the asset and borrowing costs have been
incurred, and the activities relating to the acquisition and construction that are necessary to prepare the asset for its
intended use have commenced. The capitalisation of borrowing costs ceases when the asset under acquisition or
construction becomes ready for its intended use, the borrowing costs incurred thereafter are recognised in income
statement. Capitalisation of borrowing costs is suspended when the acquisition or construction of a fixed asset is
interrupted abnormally and the interruption lasts for more than 3 months, until the acquisition or construction is
resumed.
 For the specific borrowings obtained for the acquisition or construction of a fixed asset qualifying for
capitalisation, the amount of borrowing costs eligible for capitalisation is determined by deducting any interest
income earned from depositing the unused specific borrowings in the banks or any investment income arising on
the temporary investment of those borrowings during the capitalisation period.


                                                                                                                        86
                                               Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


For the general borrowings obtained for the acquisition or construction of a fixed asset qualifying for
capitalisation, the amount of borrowing costs eligible for capitalisation is determined by applying the weighted
average effective interest rate of general borrowings, to the weighted average of the excess amount of cumulative
expenditures on the asset over the amount of specific borrowings. The effective interest rate is the rate at which
the estimated future cash flows during the period of expected duration of the borrowings or applicable shorter
period are discounted to the initial amount of the borrowings.

27. Biological assets

28. Oil-gas assets

29. Assets of the right to use

30. Intangible assets

1. Valuation Method, Service Life and Impairment Test of Intangible Assets

Intangible assets mainly including land use rights, sea use rights, software, associated projects for electricity
transmission and transformation, microwave engineering and transportation engineering are measured at cost.
Intangible assets contributed by the state-owned shareholders at the incorporation of a limited company are
initially recorded at the valuation amount recognised by the state-owned assets supervision and administration
department.
(a) Land use right and sea use right
Land use rights are amortised on a straight-line basis over their approved period of 20 to 70 years. If the purchase
costs of land and attached buildings cannot be reasonably allocated between the land use right and the buildings,
the purchase costs are recognised as fixed assets.
(a)Associated projects for electricity transmission and transformation, microwave engineering and transportation
engineering
Projects for electricity transmission and transformation and microwave engineering are undertaken by the Group
for the grid connection project for loading to Guangdong Guangdian Power Grid. From the start of use, they are
amortised on a straight-line basis over their benefit period of 16 years.
Transportation engineering projects are amortised on a straight-line basis over their benefit period of 10 years to
20 years
(c) Other intangible assets
Besides land use right, sea use right, associated projects for electricity transmission and transformation,
microwave engineering and transportation engineering, other intangible assets are amortized on a straight-line
basis over their expected life of 2 years to 25 years.
(d) Periodic review on useful life and method of amortisation
For intangible assets with finite useful life, their expected life and amortisation method are reviewed and adjusted
at the end of every year.
(e) Impairment of intangible assets
The carrying amount of intangible assets is reduced to the recoverable amount when the recoverable amount is
less than the carrying amount.


                                                                                                                      87
                                              Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


(2)Accounting policies for the internal research and development expenditure

The internal R&D project expenditure is classified into the research expenditure and the development expenditure
based on the property thereof and the large uncertainty existence for the final formation of the intangible assets of
the R&D activities.
The expenditure for the planned survey, evaluation and selection phases for the R&D projects is that for the
research phase and will be included into the current profits and losses upon occurrence; the expenditure for
relevant design and test phases applied finally for the R&D projects is that for the development phase, among
which, that complied with the following conditions will be capitalized:
The development of R&D projects has been demonstrated sufficiently by the technology team;
The Management Layer has already approved the budget for the development of R&D projects;
It has sufficient technical and capital support for the project development activities and following large-scale
production;
The expenditure related to the development may be collected reliably.
The expenditure of the development phase in unconformity with conditions above will be included into the current
profits and losses upon occurrence. The expenditure of the previous periods included into the profits and losses
will not be re-deemed as the asset in the following periods. The capitalized expenditure in the development phase
 is listed as the development expenditure in the balance sheet and will become the intangible asset from the date
when the project meeting the intended usage.

31. Impairment of long-term assets

Fixed assets, construction in progress, intangible assets with finite useful lives, investment property measured at
cost and long-term equity investments in subsidiaries, joint venture, and associates are tested for impairment if
there is any indication that an asset may be impaired at the balance date. If the result of the impairment test
indicates that the recoverable amount of the asset is less than its carrying amount, a provision for impairment and
an impairment loss are recognised for the amount by which the asset’s carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and the present value of the
future cash flows expected to be derived from the asset. A provision for asset impairment is determined and
recognised on an individual asset basis. If it is not possible to estimate the recoverable amount of an individual
asset, the recoverable amount of the group of assets to which the asset belongs is determined. A group of assets is
the smallest group of assets that is able to generate independent cash inflows.
Goodwill that is separately presented in the financial statements is tested at least annually for impairment,
irrespective of whether there is any indication that it may be impaired. In conducting the test, the carrying value of
goodwill is allocated to the related asset group or groups of asset groups which are expected to benefit from the
synergies of the business combination. If the result of the test indicates that the recoverable amount of an asset
group or a group of asset groups, including the allocated goodwill, is lower than its carrying amount, the
corresponding impairment loss is recognised. The impairment loss is first deducted from the carrying amount of
goodwill that is allocated to the asset group or group of asset groups, and then deducted from the carrying
amounts of other assets within the asset group or group of asset groups in proportion to the carrying amounts of
assets other than goodwill.
Once the asset impairment loss mentioned above is recognised, it is not allowed to be reversed for the value
recovered in the subsequent periods.


                                                                                                                     88
                                               Guangdong Electric Power Development Co., Ltd. The Semi-annual Report 2019


32.Long-term deferred expenses

Long-term prepaid expenses include the expenditure for improvements to fixed assets held under operating leases,
and other expenditures that have been incurred but should be recognised as expenses over more than one year in
the currentand subsequent periods. Long-term prepaid expenses are amortised on the straight-line basis over the
expected beneficial period and are presented at actual expenditure net of accumulated amortisation.
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