Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Stock Code: 000539、200539 Stock Abbreviation: Yue Dian Li A、Yue Dian Li B
Bond Code:112162.SZ Bond short name: 12 Yudean Bond
Guangdong Electric Power Development Co., Ltd.
2015 Annual Report
April 2016
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
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.Li Zhuoxian, The Company leader, Mr. Li Xiaoqing, Chief financial officer and the Mr.Qin Jingdong, 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 Annual report.
All the directors attended the board meeting for reviewing the Annual Report except the follows:
The name of director who did The name of director who was
Positions Reason
not attend the meeting in person authorized
Zhong Weimin director due to business Hong Rongkun
Yang Xinli director due to business Yao Jiheng
Zhang Xueqiu director due to business Liu Tao
This annual report involves the forecasting description such as the future plans, and does not constitute the actual
commitments of the company to the investors. The investors should pay attention to the investment risks.
The Company is mainly engaged in thermal power generation. The business of thermal power generation is
greatly affected by factors including electric power demand and fuel price. Refer to Section IX(4) of Chapter 4
of this annual report-situation faced and countermeasures for relevant information.
The preplan profit distribution of the Company deliberated and approved by the Board is: Total share of of
5,250,283,986 for Base on the Company‘s total share capital ,the Company would distribute cash dividend to all t
he shareholders at the rate of CNY 2.3for every 10 shares (with tax inclusive) ,with 0 bonus shares
（including tax）, and not converting capital reserve into share capital.
IF THERE IS ANY CONFLICT BETWEEN THE CHINESE VERSION AND ITS ENGLISH
TRANSLATION, THE CHINESE VERSION WILL PREVAIL.
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Table of Contents
I.Important Notice, Table of contents and Definitions
II. Basic Information of the Company and Financial index
III. Outline of Company Business
IV. Management’s 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. Administrative structure
X. Financial Report
XI. Documents available for inspection
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Definition
Terms to be defined Refers to Definition
Yudean Group Refers to Guangdong Yudean Group Co., Ltd.
Zhanjiang Company Refers to Zhanjiang Electric Power Co., Ltd.
Yuejia Company Refers to Guangdong Yuejia Electric Power Co., Ltd.
Yuejiang Company Refers to Guangdong Shaoguan Yuejiang Power Generation Co., Ltd.
Zhenneng Company Refers to Maoming Zhenneng Thermal Power Co., Ltd.
Jinghai Company Refers to Guangdong Yudean Jinghai Power Co., Ltd.
Zhanjiang Wind Power Company Refers to Guangdong Yudean Zhanjiang Wind Power Co., Ltd.
Zhongyue Compamy Refers to Zhanjiang Zhongyue Energy Co., Ltd.
Bohe Company Refers to Guangdong Yudean Bohe Coal & Electricity Co., Ltd
Guangqian Company Refers to Shenzhen Guangqian Electric Power Co., Ltd.
Huihou Natural Gas Company Refers to Guangdong Huizhou Natural Gas Power Co., Ltd.
Shibeishan Wind Power Company Refers to Guangdong Shibeishan Wind Power Development Co., ltd.
Red Bay Company Refers to Guangdong Red Bay Power Co., Ltd.
Pinghai Power Plant Refers to Guangdong Hluizhou Pinghai Power Co., Ltd.
Humen Power Company Refers to Guangdong Yudean Humen Power Co., Ltd.
Anxin Electric Inspection & Installation Guangdong Yudean Anxin Electric Inspection & Installation
Refers to
Company Co., Ltd
Guangdong Guohua Yudean Taishan Power Generation Co.,
Guohua Taishan Refers to
Ltd.
Yudean Industry Fuel Company Refers to Guangdong Power Industry Fuel Co., Ltd.
Huadu Natural Gas Company Refers to Guangdong Huadu Natural GasT Thermal Power 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.
Weixin Yuntou Refers to Weixin Yuntou Yudean Zhaxi Energy Co., Ltd.
Binlangjiang Company Refers to Yunnan Baoshan Binlangjiang Hydroelectricity Development Co., Ltd.
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
II. Basic Information of the Company and Financial index
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 Li Zhuoxian
Registered address 23-26/F, South Tower, Yudean Plaza, No.2 Tianhe Road East, Guangzhou,Guangdong Province
Postal code of the Registered
510630
Address
Office Address 23-26/F, South Tower, Yudean Plaza, No.2 Tianhe Road East, Guangzhou,Guangdong Province
Postal code of the office
510630
address
Internet Web Site http://www.ged.com.cn
E-mail ged@ged.com.cn
Ⅱ.Contact person and contact manner
Board secretary Securities affairs Representative
Name Liu Wei Zhang Shaomin
26/F, South Tower, Yudean Plaza, No.2 26/F, South Tower, Yudean Plaza, No.2
Contact address Tianhe Road East, Guangzhou,Guangdong Tianhe Road East, Guangzhou,Guangdong
Province Province
Tel (020)87570276 (020)87570251
Fax (020)85138084 (020)85138084
E-mail liuw@ged.com.cn zhangsm@ged.com.cn
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Ⅲ. Information disclosure and placed
Newspapers selected by the Company for information China Securities Daily, Securities Times and Hong Kong Commercial
disclosure Daily(overseas newspaper for English version)
Internet website designated by CSRC for publishing
http://www.cninfo.com.cn
the Annual report of the Company
The place where the Annual report is prepared and
Affair Dept. Of the Board of directors of the Company
placed
Ⅳ.Changes in Registration
Organization Code 61741949-3
Changes in principal business activities
No change
since listing (if any)
Changes is the controlling shareholder in
No change
the past (is any)
Ⅴ. Other Relevant Information
CPAs engaged
Name of the CPAs KPMG Huazhen(SGP)
Office address 8/F, Bimawei tower, Orientl Plaza 1 East Chang An Avenue Beijing
Names of the Certified Public
Peng Jing, Chen Lijia
Accountants as the signatories
The sponsor performing persist ant supervision duties engaged by the Company in the reporting period.
□Applicable √Not Applicable
The Financial advisor performing persist ant supervision duties engaged by the Company in the reporting period
□Applicable √Not Applicable
Ⅵ.Summary of Accounting data and Financial index
May the Company make retroactive adjustment or restatement of the accounting data of the previous years due to
change of the accounting policy and correction of accounting errors.
□ Yes √ No
Changed over last year
2015 2014 2013
（％）
Operating Gross income（RMB） 25,723,810,816.00 29,046,568,685.00 -11.44% 30,830,757,337.00
Net profit attributable to the
shareholders of the listed company 3,237,733,312.00 3,003,977,134.00 7.78% 3,086,428,618.00
（RMB）
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Net profit after deducting of
non-recurring gain/loss attributable
2,953,985,089.00 3,113,672,193.00 -5.13% 3,199,745,325.00
to the shareholders of listed
company（RMB）
Cash flow generated by business
10,442,437,145.00 8,392,794,644.00 24.42% 9,709,896,440.00
operation, net（RMB）
Basic earning per
0.62 0.57 8.77% 0.59
share(RMB/Share)
Diluted gains per
0.62 0.57 8.77% 0.59
share(RMB/Share)(RMB/Share)
Net asset earning ratio（%） 14.42% 14.94% -0.52% 17.49%
End of Changed over last year
End of 2015 End of 2013
2014 （％）
Gross assets（RMB） 71,919,934,143.00 69,084,825,852.00 4.10% 67,918,719,035.00
Net assets attributable to
shareholders of the listed company 23,754,596,981.00 21,310,054,597.00 11.47% 19,054,914,050.00
（RMB）
Ⅶ.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 3,237,733,312.00 3,003,977,134.00 23,754,596,981.00 21,310,054,597.00
Items and amount adjusted according to IAS
The difference arising from
recognition of goodwill after
0 0 64,623,000.00 64,623,000.00
merger of enterprises under
the same control
Difference arising from
recognition of land use value -630,000.00 -630,000.00 19,490,000.00 20,120,000.00
after enterprise merger
Influence on minority interests 54,120.00 54,120.00 4,647,859.00 4,593,739.00
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
According to IAS 3,237,157,432.00 3,003,401,254.00 23,843,357,840.00 21,399,391,340.00
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards.
□ Applicable √Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign
accounting rules or Chinese GAAP(Generally Accepted Accounting Principles) in the period.
3.Note to the Difference in the Accounting Data based on the Accounting Standards of CAS and IAS.
√ Applicable □ Not applicable
(1).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.
(2). Influence on minority interests
Housing reform loss occurred to the Company and some holding subsidiaries. Therefore, there’s some influence
on minority interests.
Ⅷ.Main Financial Index by Quarters
In RMB
First quarter Second quarter Third quarter Fourth quarter
Operating income 6,068,031,708.00 6,843,521,524.00 6,776,239,369.00 6,036,018,215.00
Net profit attributable to the
758,001,796.00 962,993,219.00 919,135,346.00 597,602,951.00
shareholders of the listed company
Net profit after deducting of
non-recurring gain/loss attributable
627,568,982.00 888,807,540.00 908,409,117.00 529,199,450.00
to the shareholders of listed
company
Net Cash flow generated by
2,652,328,931.00 3,049,851,503.00 2,887,723,950.00 1,852,532,761.00
business operation
Whether significant variances exist between the above financial index or the index with its sum and the financial
index of the quarterly report as well as semi-annual report index disclosed by the Company.
□ Yes √No
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Ⅸ.Items and amount of non-current gains and losses
√Applicable □Not applicable
In RMB
Items Amount (2015) Amount (2014) Amount (2013) Notes
Mainly for oil shale
Non-current asset disposal Company and
gain/loss(including the write-off part for 238,178,694.00 -57,685,202.00 -27,133,645.00 Binliangjiang
which assets impairment provision is made) Company equity
disposal profits
Govemment subsidy recognized in current
gain and loss(excluding those closely related
16,112,458.00 20,895,756.00 17,577,691.00
to the Company’s business and granted
under the state’s policies)
Gains and losses from exchange of
21,977,012.00
non-monetary assets
Asset impairment provisions due to acts of
-101,877,473.00
God such as natural disasters
Gain/loss from change of fair value of
transactional financial asset and liabilities,
and investment gains from disposal of
transactional financial assets and liabilities 808,317.00
and sellable financial assets other than valid
period value instruments related to the
Company’s common businesses.
Switch back of provision for depreciation of
account receivable which was singly taken 20,790.00 1,623,216.00 4,737,368.00
depreciation test.
Gain/loss on loans obtained by entrusting
563,812.00 12,854,063.00
others
Other non-business income and expenditures
29,997,321.00 -40,486,215.00 6,576,176.00
other than the above
Provision for impairment of other current
-201,115,258.00
assets impairment made due to liquidation
Less: Amount of influence of income tax 17,651,335.00 -16,945,739.00 7,329,176.00
Influenced amount of minor shareholders’
4,886,717.00 -49,516,991.00 -80,516,074.00
equity (after tax)
Total 283,748,223.00 -109,695,059.00 -113,316,707.00 --
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
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.
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
III. Outline of Company Business
Ⅰ.Main Business the Company is Engaged in During the Report Period
We are mainly occupied in investment, construction and management of electric power projects. We have
been upholding “electricity-oriented, pluralistic development”, with power as the mainstay and diversified
structure of power source. With the exception of development, construction and operation of large-scale
coal-burning power-generating plants, we also set our feet on clean energy projects like LNG power generation,
wind power generation and hydroelectric generation, which are reliably transmitted to innumerable users through
power-grid companies. On or before the reporting period, the controllable installed capacity is 19.69 million KW,
where the controllable installed capacity of coal-burning power generation, LNG generation and renewable energy
generation like wind power and hydropower is 17.09 million KW, 2.34 million KW and 260000 KW respectively.
Income source is primarily contributed by power production and sales, and main business income is derived
from Guangdong Province. The on-grid price is checked and ratified by the department in charge of price with the
National Development and Reform Commission as dominant, which follows the revelant policies. In the reporting
period, the electricity sold is 60.341 billion KWH, 4.525 billion KWH YoY drop; average price stated in the
consolidated statements is 492.21 Yuan/ 1000 KWH (tax inclusive, the same below), YoY drop of 25.38
Yuan/1000 KWH.
Coal-burning power generation is our focus. As fuel costs hold a great proportion in operating costs,
fluctuations in coal price mean a lot to the business performance. In the reporting period, the power fuel cost is
11319.0138 million Yuan, accounting for 63% of main business, 2783.7654 million Yuan YoY drop, 19.80%
decline. Benefiting from the fuel cost fall, the net profits pertaining to the parent company are 3237.7333 million,
7.78% YoY growth.
The descending pace of economic growth made the Guangdong market demand for electricity in the
reporting period keeping falling. Guangxi Power Grid had supplied additional power beyond the original plan to
Guangdong province. The intra-provincial new-built nuclear and coal-based plants had gone into operation in
succession, where nuclear power was increased by 12% year on year, the hours and market shares intra-provincial
coal-burning units utilized and contributed declined considerably. The year-round generating capacity held 12.7%
market shares of power generation and purchase across the province, 0.08% YoY drop; average hours
coal-burning units utilized were 4068, 457h YoY drop. Power generation calculated by held 19.19% of total
power in the province, slightly lower than the installed capacity.
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
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
2. Main Conditions of Overseas Assets
□ Applicable √Not applicable
Ⅲ.Analysis On core Competitiveness
1. Regional power-generating company with installed capacity expanded in a stage-based and leap-frog way
The power-generating assets are mainly distributed in Guangdong. Major assets reorganization realized since
2012 has given great impetus to power-generating installed capacity. The controllable installed capacity has been
expanded to 19.69 million KW of year-end 2015 from 8.08 million KW of year-end 2011, power generation to
64.042 billion KWH in 2015 from 35.305 billion KWH in 2011.
2. Yudean Group has oriented our company as a sole listed platform for domestic power-generating assets
integration
We are the shareholder of Yudean Group, one of the biggest power-generating groups in south China, which
takes advantage of its source, assets scale, to give sustaining support to our company’s advancement and
expansion. It has oriented us as a sole listed platform for domestic power-generating assets integration. We are
endowed with a priority offered by it in power source development, asset acquisition. It has undertaken that in five
years of the last major asset reorganization, it will inject its asset complying with listed conditions through
acquisition, restructuring and other ways. Based on this, our installed capacity is going to embrace another
leap-frog growth.
3. State-of-the-art unit performance built on implementation of the energy-saving dispatching policy
By the end of the reporting period, the units in our hands include 4 sets of 1 million kilowatt unit, 12 sets of
600000 KW unit. The 300000 and above kilowatt units hold 95% of thermal power installed capacity. The
Guangqian Power and Huizhou Natural Gas Plant controlled by us are natural gas units, 3×390MW and
3×390MW respectively. Natural gas units take precedence over the thermal power generation units of the same
kind in energy-saving dispatching
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
We are making great endeavors to develop large-capacity and environmental-friendly thermal power projects
on one hand, and bringing forward a strategy of readjusting industrial structure and power source structure on the
other hand, which are gradually optimized accompanied by acquisition of and progress in clean energy projects.
With respect to wind power, we have taken over or built Yangqian wind power plant, Warrior wind power
plant, Shibei Mountain wind power plant, Haiwanshi wind power plant, and other plants. By the end of the
reporting period, total 212200 KW of wind power projects has been put into production with 250000 KW of wind
power projects under verification and construction.
In the field of hydropower, we purchased Lincang Company in 2015, thus putting an end to scarce
hydropower holding.
5. Experienced management, sophisticated production technology
Administrators and technical experts are veterans in operation and management of power plants, and key
staff have years of practical experience in the power sector. We have invested enormous efforts to the standard of
management, intensifying management and paying high priority to launch energy-conserving and
consumption-reducing programs. Finally, coal consumption on thermal power units is declining year by year in
return for these efforts.
6. Hold fast to the opportunity of “electric price reform”, exploit new realms of business
In July, 2015, we established a wholly-funded electric marketing company, aiming at competing with
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
electricity marketing, sharing dividend from “”electric price reform”, and cultivating a new point of profits
increment. The electric marketing company is being in nice state. It is now engaging in swiftly accumulating
clients and broadening electric market.
IV. Management’s Discussion and Analysis
Ⅰ.General
In 2015, the descending pace of economic growth made the Guangdong market demand for electricity
keeping falling. Guangxi Power Grid had supplied additional power beyond the original plan to Guangdong
province. Guangdong Power Grid Corporation’s year-round purchase of Guangxi Power Grid was 168.21 billion
KWH, 6.8% YoY growth, and had supplied additional power 12.8 billion KWH beyond the original plan. The
power supplied by Guangxi Power Grid accounted for 33.4% of the total purchased power dispatched from other
places. The intra-provincial new-built nuclear and coal-based plants had gone into operation in succession, where
nuclear power was increased by 12% year on year, the hours and market shares intra-provincial coal-burning units
utilized and contributed declined considerably.
In the reporting period, our total generation reached 64.091 billion KWH, declining 6.98% year on year;
on-grid energy is 60.341 billion KWH, which accomplished 89.5% of annual plan, declining 6.98% year on year.
Converted with interest percentage (including participated power plants), our interest generation was 52.22 billion
KWH and interest on-grid energy is 49.324 billion KWH, declining 7.63% and 7.65% year on year respectively.
Our annual generation took up 12.7% of provincial electricity market, 0.08% YoY drop.
In the reporting period, despite the falling price of coal, generation income experienced significant decline under
the impact of decreasing “electricity consumption” and “electricity price”. Our annual operating income was
25.724 billion Yuan, 11.44% YoY drop. However, benefited from cost control and investment optimization, the
annual operating profit reached 5.713 billion Yuan, increasing 1.28% YoY growth, among which, 3.238 billion
Yuan belongs to parent company shareholders, increasing 7.78% year on year. Our business performance reached
a new peak.
In the reporting period, we adhered to the principal industry and proactively promoted power source
construction. Shaoguan Power Plant “developing big units and suppressing small units” project and #1 Unit of
Taipo Power Plant “developing big units and suppressing small units” project, invested by company holdings, had
started commercial operation and capacity-increasing improvement of Lincang Hydropower Nanrongtian and
Gualanzi River power stations were accomplished. These two projects were estimated to increase controllable
installed capacity by 1.804 million KW. We kept in steps with favorable policy of clean energy, high-capacity,
high parameter, low-energy coal power, continued optimizing structure of power source and promoted Huadu
natural gas-thermoelectricity cogeneration, Zhaoqing natural gas-thermoelectricity cogeneration, Bohe coal power
and preparation of Guangzhou Wind Power Co., Ltd wind power project.
Facing power reform and competition marketization, we had put great efforts in market-oriented production
and marketing strategy, set up Guangdong Yudean Power Marketing Co., Ltd with wholly ownership, seized
every market opportunity in power reform and sought for new growth points.
Ⅱ.Main business analysis
1. General
Refer to relevant contents of “1.Summarization” in “Discussion and Analysis of Management”.
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
2. Revenue and cost
(1)Component of Business Income
In RMB
2015 2014
Increase /decrease
Amount Proportion Amount Proportion
Total operating
25,723,810,816.00 100% 29,046,568,685.00 100% -11.44%
revenue
Industry
Electric power ,
Steam sales and 25,527,421,644.00 99.24% 28,834,080,676.00 99.27% -11.47%
labor income
Other 196,389,172.00 0.76% 212,488,009.00 0.73% -7.58%
Products
Sales Electric Power 25,385,066,625.00 98.68% 28,695,501,698.00 98.79% -11.54%
Steam income 70,338,411.00 0.27% 80,952,215.00 0.28% -13.11%
Labor income 72,016,608.00 0.28% 57,626,763.00 0.20% 24.97%
Certified emission
reduction sales 2,805,445.00 0.01% 793,938.00 0.00% 253.36%
revenue
Lease revenue 11,071,005.00 0.04% 9,322,216.00 0.03% 18.76%
Comprehensive
171,093,179.00 0.67% 190,465,183.00 0.66% -10.17%
utilization of fly ash
Other 11,419,543.00 0.04% 11,906,672.00 0.04% -4.09%
Area
Guangdong 25,707,559,952.00 99.94% 29,046,568,685.00 100.00%
Yunnan 16,250,864.00 0.06%
(2)Situation of Industry, Product and District Occupying the Company’s Business Income and Operating
Profit with Profit over 10%
√ Applicable □Not applicable
In RMB
Increase/decrease Increase/decrease Increase/decrease
of revenue in the of business cost of gross profit
Gross profit
Turnover Operation cost same period of over the same rate over the same
rate(%)
the previous period of period of the
year(%) previous year (%) previous year (%)
Industry
Electric power ,
25,527,421,644.0 18,004,382,092.0
Steam sales and 29.47% -11.47% -13.76% 6.78%
0 0
labor income
Products
Electric power ,
25,527,421,644.0 18,004,382,092.0
Steam sales and 29.47% -11.47% -13.76% 6.78%
0 0
labor income
Area
25,707,559,952.0 18,043,998,518.0
Guangdong 29.81% -11.50% -13.83% 6.82%
0 0
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main
business based on latest on year’s scope of period-end.
□ Applicable √Not applicable
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(3)Whether the Company’s Physical Sales Income Exceeded Service Income
√ Yes □ No
Classification Items Unit 2015 2014 Changes
Sales volume Billion kwh 60.341 64.866 -6.98%
Electric Power
Production Billion kwh 64.091 68.903 -6.98%
Explanation for a year-on –year change of over 30%
□ Applicable √Not applicable
(4)Degree of Performance of the Significant Sales Contract Signed up to this Report Period
√ Applicable □Not applicable
In the reporting period, China Southern Power Grid was our No.1 client, taking up approximately 98.62% of
annual sales. Company and company’s holding subsidiaries had signed a Power Purchase Agreement with China
Southern Power Grid and its holding subsidiaries in accordance to related provisions. By the end of the reporting
period, the agreement had been executed rightfully.
(5)Component of business cost
Industry and product classification
In RMB
2015 2014
Industry Items Proportion in the Proportion in the Increase/Decrease
Amount operating costs Amount operating costs
(%) (%)
11,319,013,762.9 14,103,229,832.3
Electric Power Fuel cost 62.70% 67.35% -19.74%
6 2
Depreciation
Electric Power 3,620,711,809.67 20.06% 3,571,001,199.48 17.05% 1.39%
expense
Electric Power Labor cost 1,402,718,793.65 7.77% 1,399,872,849.93 6.69% 0.20%
Electric Power Other 1,711,256,290.59 9.48% 1,865,996,332.10 8.91% -8.29%
Notes
The Company is in power sector and mainly engaged in power generation at present. The cost is composed of
fuel cost, depreciation expenses, labour cost and other expenses. Fuel cost accounts for about 63% of total cost.
(6)Whether Changes Occurred in Consolidation Scope in the Report Period
√Yes □No
1. Non-unitary controlled enterprise merger
Lincang Company was founded in Licang city, on March 4, 2005, with its headquarter located in Lincang city,
Yunnan province. It main business was investment, development, construction and operation of electric projects.
Its parent company before merger was Yunnan Power Investment Co., Ltd, being in the hands of Yunnan
Provincial Energy Investment Group Co., Ltd and Yunnan provincial People's Government - Owned Assets
Supervision and Administration Commission. On January 5, 2015, we exchanged 14.34% stock right of Weixin
Yuntou Yudean Zhaxi Energy Co., Ltd., with 51.00% of Lincang Company held by the third party. After this
exchange, the share proportion of Lincang Company was increased to 100% from original 49%, making absolute
control on Lincang Company come true.
2. New Subsidiary Establishment of the Year
15
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Name Business place Registered Nature Registered capital Proportion (%) Acquired
address
Guangdong Yudean Electric Power Guangzhou Guangzhou Electric 500,000,000 100.00% Invested
Sales Co., Ltd. Power
Guangdong Yudean Qujie Wind Zhanjiang Zhanjiang Electric 200,000,000 100.00% Invested
Power Generation Co., Ltd. Power
Guangdong Yudean Yangjiang Yangjiang Yangjiang Electric 55,000,000 100.00% Invested
Offshore Wind Power Co., Ltd. Power
(7)Relevant Situation of Significant Changes or Adjustment of the Business, Product or Service in the
Company’s Report Period
□ Applicable √Not applicable
(8)Situation of Main Customers and Main Supplier
Information of the Company’s top 5 customers
Total sales amount to top 5 customers (RMB) 25,636,091,300.00
Proportion of sales to top 5 customers in the
99.65%
annual sales(%)
Information of the Company’s top 5 customers
No Name Amount(RMB) Proportion%
1 GPGC 25,385,066,625.00 98.68%
Guangdong Yudean Environmental
2 133,516,839.00 0.52%
Protection Co., Ltd.
3 Huizhou Huiling Huacheng Co., Ltd. 58,435,893.00 0.23%
Guangdong Yudean Group, Shajiao C Power
4 47,051,762.00 0.18%
Plant
Meizhou Jiayuan Investment Development Co.,
5 12,020,181.00 0.04%
Ltd.
Total -- 25,636,091,300.00 99.65%
Other explanation :
√Applicable □Not applicable
The Company with Guangdong Yudean Environmental Protection Co., Ltd., and Guangdong Yudean Group Co.,
Ltd Shajiao C Power Plant is controlled by Yudean Group, where relationship exists.
Principal suppliers
Total purchase of top 5 Suppliers（RMB） 11,059,708,768.62
Percentage of total purchase of top 5 suppliers In total
65.75%
annual purchase(%)
Information about the top 5 suppliers
No Name Amount（RMB） Proportion
Guandong Electric power Industry
1 8,288,420,119.10 49.27%
Fuel Co., Ltd.
2 Guangdong Dapeng ING Co., Ltd 1,574,482,213.24 9.36%
Guangdong Zhutou Electric Power
3 569,452,104.60 3.39%
Industry Fuel Co., Ltd.
4 Energy China GPEC 516,047,168.89 3.07%
5 MITSUBISHI heavy industries East gas 111,307,162.79 0.66%
16
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
turbine (Guangzhou) Co., Ltd.
Total -- 11,059,708,768.62 65.75%
Other explanation :
√ Applicable □Not applicable
Guangdong Electricity Power Industrial Fuel Co., Ltd is the joint venture of the Company and Yudean Group Co.,
Ltd., where relationship exists.
3.Expenses
In RMB
Increase/Decrea
2015 2014 Notes
se(%)
Sale expenses Declining in sales volume, strengthen
1,839,453.00 4,540,907.00 -59.49% the control in selling expense
simultaneously.
Administration
921,738,681.00 902,594,273.00 2.12%
expenses
Financial expenses 1,581,536,918.00 1,805,142,563.00 -12.39%
4.R& D Expenses
□ Applicable √ Not applicable
5.Cash Flow
In RMB
Items 2015 2014 Increase/Decrease(%)
Subtotal of cash inflow received
30,671,666,575.00 34,838,452,205.00 -11.96%
from operation activities
Subtotal of cash outflow
received from operation 20,229,229,430.00 26,445,657,561.00 -23.51%
activities
Net cash flow arising from
10,442,437,145.00 8,392,794,644.00 24.42%
operating activities
Subtotal of cash inflow received
1,117,139,770.00 700,048,533.00 59.58%
from investing activities
Subtotal of cash outflow for
5,456,331,056.00 6,794,508,482.00 -19.69%
investment activities
Net cash flow arising from
-4,339,191,286.00 -6,094,459,949.00 -28.80%
investment activities
Subtotal cash inflow received
23,365,281,996.00 24,773,933,487.00 -5.69%
from financing activities
Subtotal cash outflow for
28,769,398,444.00 26,921,302,044.00 6.86%
financing activities
Net cash flow arising from
-5,404,116,448.00 -2,147,368,557.00 151.66%
financing activities
Net increase in cash and cash
699,129,411.00 150,966,138.00 363.10%
equivalents
Notes to the year-on-year change of the relevant data
√Applicable □ Not applicable
17
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
（1）Cash in-flow from operation activity Increased by 24％, Mainly for the increase in cash flow of
electricity generation profit in the report period.
（2）cash out-flow from investment activity decreased by 29%, Mainly for the decrease in the cash paid for the
acquisition and construction for long-term asset and the increase in withdrawn investment cash
（3）The net cash out-flow from financing activities increased by 152%, Mainly for the increase in cash paid for
debt repayment in the report period
（4）Net increase in cash and cash equivalents increased by 363%，Mainly for the increase in cash flow of the
operating activities and investment activities in the report period.
Notes to the big difference between cash flow from operating activities and net profit in the reporting year
√Applicable □ Not applicable
The main impact of non-cash outflow of assets, depreciation and amortization, interest expense of non-business
activities.
Ⅲ.Analysis of Non-core Business
□Applicable √Not applicable
Ⅳ.Condition of Asset and Liabilities
1.Condition of Asset Causing Significant Change
In RMB
End of 2015 End of 2014 Proportio
Proportion in Proportion in n
Notes to the significant change
Amount the total Amount the total increase/d
assets(%) assets(%) ecrease
5,237,406,725. 4,548,277,314.
Monetary fund 7.28% 6.58% 0.70%
00 00
Accounts 2,484,683,890. 2,580,733,823.
3.45% 3.74% -0.29%
receivable 00 00
1,333,654,623. 1,623,199,010.
Inventories 1.85% 2.35% -0.50%
00 00
Investment real
9,567,835.00 0.01% 10,203,433.00 0.01% 0.00%
estate
Long-term equity 5,924,410,159. 6,604,709,646.
8.24% 9.56% -1.32%
investment 00 00
44,330,167,62 39,164,300,297
Fixed assets 61.64% 56.69% 4.95%
1.00 .00
Construction in 5,613,398,840. 6,349,045,387.
7.81% 9.19% -1.38%
process 00 00
6,288,060,000. 5,721,000,000.
Short-term loans 8.74% 8.28% 0.46%
00 00
21,303,229,91 20,614,916,646
Long-term loans 29.62% 29.84% -0.22%
0.00 .00
2.Asset and Liabilities Measured by Fair Value
√ Applicable □Not applicable
In RMB
Item Gain/loss on Cumulative fair Impairment Purchased Sold amount in
Amount at year fair value value change provisions in amount in the the reporting Amount at
18
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
change in the recorded into the reporting reporting period
beginning reporting equity period period year end
period
Financial assets
3.
Avaliable-for-sa 553,350,488.
452,482,335.00 97,268,153.00 298,021,872.00 0.00 0.00 0.00
le financial 00
assets
Subtotal of 553,350,488.
452,482,335.00 97,268,153.00 298,021,872.00 0.00 0.00 0.00
financial assets 00
553,350,488.
Total 452,482,335.00 97,268,153.00 298,021,872.00 0.00 0.00 0.00
00
Financial
0.00 0.00
Liability
Did great change take place in measurement of the principal assets in the reporting period ?
□ Yes √ No
Ⅴ.Investment situation
1. General
√Applicable □Not applicable
Investment Amount in 2015(RMB) Investment Amount in 2014(RMB) Change rate
1,761,257,008.00 1,427,045,100.00 23.42%
19
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
2.Condition of Acquiring Significant Share Right Investment during the Report Period
√Applicable □Not applicable
In RMB
Current
Way Ratio of Progress up Date of
Main Invest Source of Partne Term of Type of Expected investment Whether Index of disclosure (If
Name of sharehold to the balance disclosure(If
business amount funds r investment product return profit and litigation any)
invest ing sheet date any）
loss
Name of
Announcement :Announcem
ent of Establishment of
Guangdong
Established, Guangdong Yudean
Yudean
Electric New Businesses Electric Power Sales Co.,
Electric 230,000 Electric are developed
power establi 100.00% Ownfunds No Long-term -- -295,455.38 No July 21,2015
Power ,000.00 power gradually. Ltd.
sale shed
Sales Co.,
（ 2015-38 ） ，
Ltd.
Published in
China Securities Daily,
Securities Times and
http//.www.cninfo.com.cn.
Name of Announcement :
Announcement of Establishing
Guangdong Guangdong Yudean
Established,
Yudean Windpw Preliminary Qujie Wind Power
Establ
Qujie Wind er 140,000 Electric work of the
ishme 100.00% Ownfunds No Long-term -- 275,757.81 No October30,2014 Generation Co., Ltd.
Power generat ,000.00 power project is
nt
Generation ion being orderly
（ 2014-36 ） ，
promoted
Co., Ltd. Published in
China Securities Daily,
Securities Times and
http//.www.cninfo.com.cn
Guangdong Windpw Established, Name of
Yudean Establ Preliminary
er 55,000, Electric Announcement :Announcem
Yangjiang ishme 100.00% Ownfunds No Long-term work of the -- -2,189.91 No April 29,2015
generati 000.00 power
Offshore nt project is ent of Establishing Guangdong
on
Wind Power being orderly
20
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Co., Ltd. promoted Yudean Yangjiang Offshore Wind
Power Co., Ltd.
（ 2015-11 ） ，
Published in
China Securities Daily,
Securities Times and
http//.www.cninfo.com.cn
Changes in Name of
Guang the Announcement :Announce
dong registration of ment on Increasing
Guangdong Yudea registered Investment to Guangdong
Yudean Wind Capita n capital has Shaoguan Yuejiang Power
Leizhou Power l 80,800, Zhanji Electric been October Generation Co., Ltd
80.00% Ownfunds Long-term -- 0.00 No
Wind Power Generati increa 000.00 ang power completed, 30,2014 （ 2014-35 ） ，
Generation on se Wind Preliminary
Published in
Co., Ltd. Power work of the
Co., project is China Securities Daily,
Ltd. being orderly Securities Times and
promoted http//.www.cninfo.com.cn
Guang
dong
Electri
c
Power
Devel
opmen Name of
t Announcement :Announceme
Corpor
ation , nt on Equity Acquisition of
Maoming Maom The share MaomingZhennengThermal
Zhenneng ing right has been
Thermal Purch 92,453, Electric
Thermal 66.61% Ownfunds Electri Long-term power transferred. -- 1,752,097.15 No August 29,2015 Power Co., Ltd.
power aqse 008.00
Power Co., c
Ltd. Power （ 2015-46 ） ，
Devel Published in
opmen China Securities Daily,
t Co., Securities Times and
Ltd., http//.www.cninfo.com.cn
Maom
ing
Urban
&
Rural
Infrast
21
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
ructure
Constr
uction
Invest
ment
Co.,
Ltd.
Shaog
Name of
uanQ Unit #1 and
ujian Unit #2 were Announcement :Announceme
Guangdong g put into
nt on External Investment
Shaoguan Capita Publi official
Yuejiang Thermal l 563,004 c Electric production in （ 2014-30 ） ，
90.00% Ownfunds Long-term July and -- 0.00 No August 26,2014
Power power increa ,000.00 Asset power
Generation se Mana September Published in
Co., Ltd. geme 2015
respectively. China Securities Daily,
nt
Securities Times and
Cente
http//.www.cninfo.com.cn
r
Name of
Announcement :Announcem
Guangdong Unit #1 was
Yudean Capita put into ent onExternalInvestment
Dapu Thermal l 300,000 Electric official October
100.00% Ownfunds No Long-term -- 0.00 No （ 2012-45 ） ，
Power power increa ,000.00 power production in 31,2012
Generation se December Published in
Co., Ltd. 2015 China Securities Daily,
Securities Times and
http//.www.cninfo.com.cn
Name of
The general Announcement :Announcem
Guangdong rate of
Yudean Capita progress of ent onExternalInvestment
Thermal
Bohe l 300,000 Electric coal terminals October
power,lo 100.00% Ownfunds No Long-term -- 0.00 No （ 2012-45 ） ，
Coal-fired gistics increa ,000.00 power project has 31,2012
se been Published in
Power Co.,
completed to China Securities Daily,
Ltd
64%. Securities Times and
http//.www.cninfo.com.cn
Lincang Equity Share right Name of
Yudean Hydropo repla 427,689 Electric replacement December Announcement :Announce
100.00% Ownfunds No Long-term -- 1,181,703.97 No ment of Resolutions of the
Energy Co., wer ceme ,439.00 power has been 17,2014
Ltd. nt completed. 4th Meeting of the Eighth
Board of Director
22
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
（2014-41），Announcement
on Displacement of Partial Shares
from Weixin Yuntou Yudean Zhaxi
Energy Co., Ltd. with 51% Shares
from Lincang Yuntou Yudean
Hydropower Development Co.,
Ltd. （ 2014-42 ） ，
Published in
China Securities Daily,
Securities Times and
http//.www.cninfo.com.cn
2,188,9
Total -- -- 46,447. -- -- -- -- -- -- -- 2,911,913.64 -- -- --
00
23
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
□ Applicable √ Not applicable
Notes:Refer to “Note 14 Construction in Progress of Chapter X Financial Report ”of this report for more
information
4.Investment of Financial Asset
（1）Securities investment
√ Applicable □Not applicable
In RMB
Book
Book
value
Cumulat Purchas value
Mode of balance Changes Sale
ive fair e Gain/los balance
Stock Initial accounti at the in fair amount Account Source
Security Security value amount s of the at the
Abbrevi investm ng beginni value of in the ing of the
category code changes in the reportin end of
ation: ent cost measure ng of the this this items shares
in this g period the
ment the period period
equity period reportin
reportin
g period
g period
Financia
Domesti Fair
l assets
c and Shenerg 235,837 value 358,738 60,530, 183,430 419,268 Own-Fu
600642 0.00 0.00 availabl
foreign y ,988.00 measure ,335.00 153.00 ,500.00 ,488.00 nds
e for
stocks ment
sales
Financia
Domesti Fair
Shenzhe l assets
c and 15,890, value 93,744, 29,988, 107,841 123,732 Own-Fu
000027 n 0.00 0.00 availabl
foreign 628.00 measure 000.00 000.00 ,372.00 ,000.00 nds
Energy e for
stocks ment
sales
Financia
Domesti Fair
l assets
c and GMGIT 3,600,0 value 6,750,0 6,750,0 10,350, Own-Fu
831039 0.00 0.00 0.00 availabl
foreign C 00.00 measure 00.00 00.00 000.00 nds
e for
stocks ment
sales
255,328 452,482 97,268, 298,021 553,350
Total -- 0.00 0.00 0.00 -- --
,616.00 ,335.00 153.00 ,872.00 ,488.00
Notes ：On December 31, 2015, the Company held 1,800,000 shares of GMG International Tendering Co., Ltd. in
total, which were listed in the share transfer system of national small and medium-sized enterprises, of which the
investment cost was 3.6 million RMB. In the report period, the Company listed the project’s reference market
price with fair value.
（2）Investment in Derivatives
□ Applicable √ Not applicable
N/A.
5.Application of the raised capital
□ Applicable √ Not applicable
N/A.
24
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Ⅵ.Significant Asset and Right Offering
1.Situation of Significant Asset Sale
□ Applicable √ Not applicable
N/A.
25
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
2.Situation of Substantial Stake Sale
√ Applicable □ Not applicable
Proportion
on of the
Net profits
net profits
contribute
of the
d by the
contribute Whether execute
equities to Whether the
Transact d amount as scheduled and
the listed Pricing Whether involved
ion Influence of the of the Relation ship if failed, should
Sold Sold companies principles of was the equities all Disclosure
Counter party price(R selling of the equities with the state the reasons Disclosure Index
equities date from the the equities related completed the date
MB’000 Company selling to center party and the adopted
period-beg selling transaction ownership
0) the listed measurements of
in to the transfer
companies the company
sold date
to the total
(RMB’000
amo9unt
0)
of the net
profits
1.This share right Name of
transfer is Announcement :Annou
beneficial to ncement of Resolutions
protect the of the 5th Meeting of
Company’s the Eighth Board of
investment Directors by
interests and Correspondence in
Yunnan
eliminate the 2015
Baoshan
guarantee risks, Pricing is （ 2015-43 ） ，
Binlangj
and beneficial for negotiated Announcement to
Yunnan iang
Septem the Company to with the base transfer the owning
Baoshan Hydroel 26,131. August
ber -1,118 focus on the 1.44% of audit and No No Yes Yes 29% stock equity of
Electric Power ectricity 58 6,2015
17,2015 operation assessment Yunnan Baoshan
Co., Ltd. Develop
development of Binlangjiang
ment
controlling Hydroelectricity
Co.,
hydropower Development Co., Ltd.
Ltd.
projects. 2.This （ 2015-44 ） ，
share right
Published in
transfer increases
66.8593 million China Securities Daily,
RMB in the Securities Times and
Company’s http//.www.cninfo.com
current income. .cn
Yunnan Electric Weixin January 24,325. 1. The equity Pricing is December Name of
Power Yuntou 5,2015 0 replacement will 1.54% negotiated No No Yes Yes Announcement :Annou
25 17,2014
Investment Yudean enhance the with the base ncement of Resolutions
26
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Co., Ltd Zhaxi hydroelectric of audit and of the 4th Meeting of
Energy development in assessment the Eighth Board of
Co., the area of Directors（2014-41），
Ltd. Yunnan province Announcement on
and adjust the Displacement of Partial Shares
structure of from Weixin Yuntou Yudean
foreign Zhaxi Energy Co., Ltd. with
investments.2. 51% Shares from Lincang
The equity Yuntou Yudean Hydropower
replacement earns Development Co., Ltd.
additional 21.98 （ 2014-42 ） ，
million yuan for Published in
our company.
China Securities Daily,
Securities Times and
http//.www.cninfo.com
.cn
27
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
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 Sectors Registered Operating
Company type Total assets Net assets Turnover Net Profit
Name engaged in capital profit
Guangdong
Power
Yudean
generation
Jinghai 2,919,272,00 10,728,646,3 4,198,654,76 5,015,690,21 1,292,239,40 969,881,853.
Subsidiary and power
Power 0 13.00 6.00 0.00 2.00 00
station
Generation
construction.
Co., Ltd.
Guangdong Power
Red Bay generation
2,749,750,00 8,494,794,86 3,649,420,68 3,884,965,78 862,133,187. 646,579,058.
Power Subsidiary and power
0 0.00 3.00 9.00 00 00
Generation station
Co., Ltd. construction.
Guangdong
Power
Huizhou
generation
Pinghai 1,370,000,00 6,711,190,52 2,019,949,68 3,239,311,24 1,064,187,03 815,803,324.
Subsidiary and power
Power 0 3.00 8.00 3.00 1.00 00
station
Generation
construction.
Co., Ltd.
Power
Zhanjiang
generation
Electric 2,875,440,00 4,544,317,69 4,158,457,71 2,040,013,79 601,028,948. 457,330,230.
Subsidiary and power
Power Co., 0 0.00 9.00 7.00 00 00
station
Ltd.
construction.
Guangdong
Guohua Power
Yudean generation
Sharing 2,700,000,00 15,711,664,1 10,521,526,0 7,607,483,58 2,338,912,21 1,528,736,74
Taishan and power
Company 0 72.00 45.00 9.00 5.00 0.00
Power station
Generation construction.
Co., Ltd.
Acquirement and disposal of subsidiaries in the Reporting period
√Applicable □ Not applicable
Way of acquiring and disposing of
Impact on the whole producing operation
Company name subsidiary corporations within the
and performance
reporting period
The company replaced the share of 14.34%
of Weixin Yuntou Yudean Zhaxi Energy
Co., Ltd. with the share of 51.00% of
The profit and loss of Lincang company,
Lincang Company held by the Third Party
belonging to the parent company, was 1.18
within the reporting period. Upon
million Yuan within the reporting period.
completion of the replacement, the
Lincang Yudean Energy Co., Ltd. There was no significant impact on the
company achieved absolute control on
whole producing operation and
Lincang Energy. The shareholding
performance.
proportion of Lincang Energy was
increased to 100.00% from original
49.00%.
The profit and loss of Yudean Electric
Power Sales Company, belonging to the
Guangdong Yudean Electric Power Sales It was invested and established by the parent company, was 300 thousand Yuan
Co., Ltd. company. within the reporting period. There was no
significant impact on the whole producing
operation and performance.
Qujie wind power generation project was
Guangdong Yudean Qujie Wind Power It was invested and established by the
in the early working stage, and the
Generation Co.,Ltd. company.
construction had not yet started within the
28
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
reporting period.
Yangjiang Offshore Wind Power Project
Guangdong Yudean Yangjiang Offshore It was invested and established by the was in the early working stage, and the
Wind Power Co., Ltd. company. construction had not yet started within the
reporting period.
Overview of main share holding and share participating companies
(1) The impact of the power generation profit of holding subsidiaries of the company, including Jinghai, Pinghai,
Red Bay, and Zhanjiang Company, on the net profit of the company reached over 10%, while the profit
year-on-year was slid affected by the dropping of the electric quantity and the electricity price;
(2) We decreased investment on Taishan Company, one of our sharing subsidiaries due to its profits reduction
from power generation and the impairment loss of the equipment provision disassembled for unit transformation.
(3) Other holding subsidiaries, having more contribution to the profit of the company include Guangqian
Company, Yuejiang Company, Huizhou Natural Gas Company, Zhanjiang Zhongyue Company, Zhenneng
Company, Yuejia Company, and Zhanjiang Wind Power Company. The net profits belonging to the parent
company derived from these companies within the reporting period, were respectively 191.50 million Yuan,
162.14 million Yuan, 133.32 million Yuan, 105.22 million Yuan, 87.52 million Yuan, 25.89 million Yuan, 11.41
million Yuan.
Ⅷ.Special purpose vehicle controlled by the Company
□ Applicable √ Not applicable
Ⅸ.Prospect for future development of the Company
1. The Development Trend of the Industry
The competition is continuously pluralistic in Chinese power generation industry, which mainly includes
five power generation groups directly under the central government, other seven centrally administered power
generation companies and fifteen local state-owned power generation enterprises at relatively larger-scale, and so
on. Main power assets of the company gather in Guangdong Province. The independent power producers of the
region include the company and Cuangdong Province Yudean Group Co., Ltd., Shenzhen Energy Group Co., Ltd.,
China Guangdong Nuclear Group Co., Ltd., and Guangzhou Development Industry (Holdings) Co., Ltd., etc. In
2015, 640.91 billion KWH generated held 12.7% of Guangdong power generation and purchase market shares.
The power generation proportion of the company is 19.19% upon the calculation of the power generation caliber
of the province.
In China, the generator capacity still mainly relies on thermal power at present, while the hydropower,
nuclear power and wind power account for small proportion, thus bringing forth unbalanced power source
structure. The electric power supply tells scale of generator capacity still keeps rapid increasing, and the electricity
supply and demand is generally loose. Affected by the policy that clean power source is given priority to surf the
internet, thermal power is relatively inferior in the competition among power sources. The improvement of the
clean power source in energy production and generating efficiency poses a certain pressure on thermal power
supply.
(II) Development strategy
Pursuing the concept of “creating green energy intentionally”, we will positively arrange and distribute clean
energies including wind power, hydropower, and gas power in the future and optimize power generation structure;
actively promote the thermal power project to develop large units and suppress small ones, conduct upgrading and
transforming, and promote power quality; strive to explore the power-sold side business, conform to the
reformation of electric power system and open up new business areas and development space; finally realize the
strategic positioning and objective that “the company is built to be the domestic first-class listed company on
power generation with international competitiveness upon coordinated development of relative industries and
taking power generation as the core, specialization as the resort, capital as the link, and maximization of the
company value as the objective.”
(III) Production and operation plan
29
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
The base power is 43.896 billion KWH in the plan of 2016 issued jointly by the development and reform
commission and the economic and information commission of Guangdong province. And the total on-grid power
is 56.219 billion KWH, which includes the long time negotiated power of 8.162 billion KWH traded directly by
big users and the bidding share of 4.161 billion KWH. The company’s on-grid power budget target in 2016 is
62.777 billion KWH, and the expected investment is 892 million Yuan all for power project under construction or
(IV) The background and the countermeasures
In the new normal economic background, the slow growth of social electricity demand remains. Suffering the
new installed generator and the west-east electricity transmission project, the company’s generation market is
diverted, with the utilization time of company’s generator especially the coal unit continues to decrease. The
cutting down of coal unit on-grid price by 0.023 Yuan/KWH again since 2016 January 1st suggests a continuous
decline in generation profit. In addition, the electricity market-oriented reform goes deeper, the proportion of
direct trading power goes higher, and the competition of power supply market goes intensely.
We aim at promoting the supply side structural reforms in the new normal economic environment, and focus
on capacity removing, inventories reduction, de-leveraging, cost declining and leak filling in 2016 to meet the
opportunities and challenges brought by the reform of state-owned enterprises and electric power system.
Precisely, we will elaborate the management to complete the core target of this year, maintain sustainable
development as compiled 13th five-year plan, reconstruct energy saving system reasonably to improve the
environmental economy, engage in the new profit driving point by spreading power sales business steadily, blaze
a new way of capital and funding operation to maximize their efficiency, and optimize the corporation
management by seizing the opportunities of “two reforms”.
Ⅹ.Particulars about researches, visits and interviews received in this reporting period
1.Particulars about researches, visits and interviews received in this reporting period
√ Applicable □ Not applicable
Reception time Way of reception Types of visitors Basic index
Details can be found in the Record Chart
of the Investor Relation Activity
January 28,2015 Onsite investigation Organization disclosed on Juchao
website(www.cninfo.com.cn) on 30
January 2015.
Details can be found in the Record Chart
of the Investor Relation Activity
May 4, 2015 Onsite investigation Organization disclosed on Juchao
website(www.cninfo.com.cn) on 8 May
2015.
Details can be found in the Record Chart
of the Investor Relation Activity
May 5, 2015 Onsite investigation Organization disclosed on Juchao
website(www.cninfo.com.cn) on 8 May
2015.
Details can be found in the Record Chart
of the Investor Relation Activity
May 6,2015 Onsite investigation Organization disclosed on Juchao
website(www.cninfo.com.cn) on 8 May
2015.
Details can be found in the Record Chart
of the Investor Relation Activity
May 15,2015 Onsite investigation Organization disclosed on Juchao
website(www.cninfo.com.cn) on 25 May
2015.
Details can be found in the Record Chart
of the Investor Relation Activity
December 29,2015 Onsite investigation Organization
disclosed on Juchao
website(www.cninfo.com.cn) on 31
30
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
December 2015.
Reception times 6
Reception agency amount 15
Reception personal number 0
Others 0
Whether to disclose, reveal or disclose non-public
No
material information
31
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
V. Important Events
ⅠSpecification of profit distribution of common shares and capitalizing of common reserves
Formulation, implementation and adjustment of profit distribution policy of common shares especially cash
dividend policy during the reporting period
√Applicable□ Not applicable
During the reporting period, with the approval of the first time extraordinary shareholders’ meeting in 2015,
our company revised the constitution in the light of the Rules for the General Assemblies of Shareholders of
Listed Companies (revised in 2014), Guidelines for Articles of Association of Chinese Listed Companies (revised
in 2014), No. 3 Guidelines for Supervision of Association of Chinese Listed Companies: the Cash Dividends of
Listed Companies Promulgated by CSRC(China Securities Regulatory Commission).
The profit distribution policy in the Articles of Association of the company is as follows:
Article 155
The company highly valued the investors especially the reasonable investment returns for the small and
medium investors, and the company’s dividend policy is:
1) The company’s dividend shall be distributed according to the share proportion held by the shareholders.
(2) The company can use cash, stock, cash and stock combination or other means for the distribution of
dividends that allowed by the laws, but shall give the priority to the cash dividends distribution for profits
distribution. If it meets the conditions required for cash dividends distribution, then the company shall adopt the
cash dividends for the profits distribution.
(3) If the net profits attributable to shareholders of the parent company realized by the company in the year
are positive and the cumulative distributable profits in the end of the year are positive, the company shall
distribute dividends.
(4) The profits annually distributed by the company in cash dividends shall be not less than 10% of
distributable profits realized in the year, and the accumulative profits distributed in cash dividends in the most
recent three years shall be not less than 30% of the mean distributable profits realized in the most recent three
years. When the company carries out the profit distribution, the proportion of the cash dividends shall be not less
than 20% in the profits distribution.
(5) The company can carry out the interim profit distribution.
Special explanation on cash dividend policy
Satisfy regulations of General Meeting or requirement of Article
Yes
of Association (Yes/No)
Well-defined and clearly dividend standards and proportion
Yes
(Yes/No)
Completed relevant decision-making process and mechanism
Yes
(Yes/No)
Independent directors perform duties completely and play a Yes
32
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
proper role (Yes/No) Y
Minority shareholders have ample opportunities and their
Yes
legitimate rights and interests are effectively protected (Yes/No)
Condition and procedures are compliance and transparent while
Yes
the cash bonus policy adjusted or changed (Yes/No)
Statement on profit distribution plan and capitalization of capital reserve plan of the Company in nearly three years (including the
report period)
The company’s dividend distribution plan of the year 2015 was: Based on that the total share capital of the
company is 5,250,283,986 shares, for A-share, the company will distribute cash dividends of RMB 2.3 (tax
inclusive per 10 shares; for B-share, the company will distribute cash dividends of RMB 2.3 (tax inclusive) per 10
shares.
The company’s dividend distribution plan of the year 2014 was: Based on that the total share capital of the
company is 4,375,236,655 shares, for A-share, the company will distribute cash dividends of RMB 2 (tax
inclusive) and two bonus shares per 10 shares; for B-share, the company will distribute cash dividends of RMB 2
(tax inclusive) and two bonus shares per 10 shares.
The company’s dividend distribution plan of the year 2013 was: Based on that the total share capital of the
company is 4,375,236,655 shares, for A-share, the company will distribute cash dividends of RMB 2(tax inclusive
per 10 shares; for B-share, the company will distribute cash dividends of RMB 2(tax inclusive) per 10 shares.
Cash dividend in latest three years
In RMB
Net profit
Ratio in net profit
attributable to the Amount of cash Proportion of cash
attributable to the
Cash dividend over of the parent dividends from cash dividends from cash
Year parent company in
(Including Tax) company in the offer to repurchase offer to repurchase
the consolidated
consolidated shares of the funds shares of the funds
financial statements
financial statements
2015 1,207,565,316.78 3,237,733,312.00 37.30%
2014 875,047,331.00 3,003,977,134.00 29.13%
2013 875,047,331.00 3,086,428,618.00 28.35%
In the reporting period, both the Company’s profit and the parent company’s retained earnings were positive
however not cash dividend distribution proposal has been put forward.
□ Applicable √ Not applicable
II.Profit distribution plan and capitalizing of common reserves plan for the Period
√ Applicable □ Not applicable
Distributing bonus shares for every 10 shares
0
(share)
Distributing cash dividend for every 10 shares (tax 2.3
33
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
included) (RMB)
Shares added for every 10-share base (Share) 0
Equity base for distribution preplan (share) 5,250,283,986
Total amount distribution in cash (RMB) (tax
1,207,565,316.78
included)
Profit available for distribution (RMB) 3,506,854,546.00
Cash distributing accounted for the proportion of
100.00%
the total amount of profit distribution (％)
Particular about cash dividend in the period
If the company’s development is at the growth stage with arrangements of significant capital expenditures, the minimum proportion
of cash dividend in the profit distribution should reach 20%.
Details of proposal of profit distribution preplan or share conversion from capital public reserve
In 2015, the base number for the company’s net profits distribution is RMB 2,950,885,836, plus the non-distributed profits of RMB
1,588,778,753 in the prior year, thus the upper limit of the distributable profits is RMB 4,539,664,589. According to the Articles of
Association of the company, draw RMB 295,088,584 for the statutory surplus reserve taking for 10% of net profits, draw
RMB737,721,459 for the other surplus reserve taking 25% of the total net profits, then the upper limit of the distributable profits to
the shareholders is RMB3,506,854,546. The company's 2015 annual profits distribution plan is: Based on that the number of the
company’s total share capital at the end of 2015 is 5,250,283,986 shares, planned that the company will distribute cash dividends of
RMB 2.30 (tax inclusive) to A-share shareholders and the company will distribute cash dividends of RMB 2.30 (tax inclusive) to
B-share shareholders, thus the total distribution of profits is RMB 1,207,565,316.78, the remaining undistributed profits will be
carried forward for the future years of profit distribution.
III.Commitments to fulfill the situation
1.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
Time of
Period of
Commitment making Fulfillmen
Commitment Type Contents commitme
maker commitme t
nt
nt
Commitment on share
reform
Commitment in the
acquisition report or the
report on equity changes
Commitment made upon Guangdong Yue Dian Li is the only quoted November Within 5 y Under
the assets replacement Yudean Group platform of Yudean Group’s electricity 3, ears after t fulfillment
34
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Co., Ltd. asset integration within the boundary. 2011 he complet
② Except Yue Dian Li and the ion of maj
electricity assets controlled by it, or asset reo
within 5 years after the last rganization
recombination is done, Yudean Group
will pump the assets which meet the
conditions of launching after
reformation into Yue Dian Li
gradually through purchasing and
recombination and other ways,
according to the situation of solutions
to different problems, e.g. the
imperfect examination and approval
procedures, the situation of
profitability, cooperation agreement
and land utilization. ③ At the aspects
of the development of power project
and assets purchasing, Yudean Group
provides the priority for Yue Dian Li
choose. If Yue Dian Li gives up
development and purchasing,
Guangkong Group will join Yue Dian
Li under the situation that the project
is completed and put into production,
and that the purchase is done and the
project meets the conditions of
listing.For details,
see June 5, 2014, published in the des
ignated media "Announcement of Gua
ngdong Electric Power Development
Co.,Ltd. matters related to commitme
nts".
Commitments in initial
public offering or
re-financing
Equity incentive
commitment
To maintain the stability of the market,
Other commitments for Guangdong Yudean Group promised not to
July 8, Under
medium and small Yudean Group reduce the Yudean electric power 12 months
2015 fulfillment
shareholders Co., Ltd. shares within the next 12 months.
Completed on time(Y/N) Yes
35
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
2.The existence of the company's assets or projects earnings forecasts and earnings reporting period is still
in the forecast period, the company has assets or projects meet the original profit forecast made and the
reasons explained
□Applicable √ Not applicable
IV.Particulars about the non-operating occupation of funds by the controlling shareholder
□ Applicable √ Not applicable
No non-operating occupation from controlling shareholders and its related party in the period.
V.Explanation of the Supervisory Committee and Independent Directors (If applicable)on the Qualified
Auditor’s Report Issued by the CPAs.
□ Applicable √ Not applicable
VI.Explain change of the accounting policy, accounting estimate and measurement methods as compared
with the financial reporting of last year.
□ Applicable √ Not applicable
No particulars about the changes in aspect of accounting polcy, estimates or calculation method in the period.
VII.Explain retrospective restatement due to correction of significant accounting errors in the reporting
period
□Applicable √ Not applicable
No major accounting errors within reporting period that needs retrospective restatement for the Company in the
period.
VIII.Explain change of the consolidation scope as compared with the financial reporting of last year.
√Applicable □ Not applicable
1. Non-unitary controlled enterprise merger
Lincang Company was founded in Licang city, on March 4, 2005, with its headquarter located in Lincang city,
Yunnan province. It main business was investment, development, construction and operation of electric projects.
Its parent company before merger was Yunnan Power Investment Co., Ltd, being in the hands of Yunnan
Provincial Energy Investment Group Co., Ltd and Yunnan provincial People's Government - Owned Assets
Yuntou Yudean Zhaxi Energy Co., Ltd., with 51.00% of Lincang Company held by the third party. After this
exchange, the share proportion of Lincang Company was increased to 100% from original 49%, making absolute
control on Lincang Company come true.
2. New Subsidiary Establishment of the Year
Name Business place Registered Nature Registered capital Proportion (%) Acquired
address
36
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Guangdong Yudean Electric Power Guangzhou Guangzhou Electric 500,000,000 100.00% Invested
Sales Co., Ltd. Power
Guangdong Yudean Qujie Wind Zhanjiang Zhanjiang Electric 200,000,000 100.00% Invested
Power Generation Co., Ltd. Power
Guangdong Yudean Yangjiang Yangjiang Yangjiang Electric 55,000,000 100.00% Invested
Offshore Wind Power Co., Ltd. Power
IX. Engagement/Disengagement of CPAs
CPAs currently engaged
Name of the domestic CPAs KPMG（Special General Partnership）
Remuneration for domestic accounting firm
206.52
(RMB’0000)
Continuous life of auditing service for domestic
3
accounting firm
Name of domestic CPA Peng Jing, Chen Lijia
Has the CPAs been changed in the current period
□ Yes √ No
Description of the CPAs, financial adiver or sponsor engaged for intemal control auditing
√Applicable □Not applicable
In the report year, the Company engaged KPMG（Special General Partnership）as the certified public accountants and
internal control audit body in 2015. The audit remuneration was RMB 2.0652 million, if including subsidiary was
RMB 3.3922 million.
0.25 million (including traveling expenses).
X.Situation of Facing Listing Suspension and Listing Termination after the Disclosure of the Yearly Report
□Applicable √ Not applicable
XI.Bankruptcy reorganization
□Applicable √ Not applicable
No bankruptcy reorganization for the Company in reporting period.
XII.Significant lawsuits and arbitrations of the Company
□Applicable √ Not applicable
No significant lawsuits and arbitrations occourred in the reporting period.
37
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
XIII.Situation of Punishment and Rectification
□Applicable √ Not applicable
No penalty and rectification for the Company in reporting period.
XIV.Credit Condition of the Company and its Controlling Shareholders and Actual Controllers
□Applicable √ Not applicable
XV.Implementation Situation of Stock Incentive Plan of the Company, Employee Stock Ownership Plan or
Other Employee Incentive Measures
□Applicable √ Not applicable
During the reporting period, the company has no stock incentive plan, employee stock ownership plan or other
employee incentives that have not been implemented.
XVI.Material related transactions
1. Related transactions in connection with daily operation
□Applicable √ Not applicable
N/A
2. Related-party transactions arising from asset acquisition or sold
□Applicable √ Not applicable
No related transactions by assets acquisition and sold for the Company in reporting period.
3. Related-party transitions with joint investments
□Applicable √ Not applicable
No main related transactions of joint investment outside for the Company in reporting period.
4. Credits and liabilities with related parties
□Applicable √ Not applicable
N/A
5. Other significant related-party transactions
√ Applicable □ Not applicable
（1）In 2015, daily related transactions were carried out after examination and approval by 2014 annual
shareholders' general meeting. Refer to (5) Related transactions of XII. Relationship between related parties and
the transactions between them of the Financial Report of this report for details.
38
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(2) The Proposal on the Financial Services such as Making the Application of the Total Loan Limit of RMB 17
Billion and Handling the Deposit Settlement to the Related Party- Guangdong Yudean Finance Co., Ltd by the
Company and Some of its Subsidiaries was approved in the company’s 2014 annual general shareholder meeting
for implementation.
(3)The company’s share-controlling subsidiary-Guangdong Red Bay Power Generation Co., Ltd’s purchase on the
quota of shutting down unit capacity held by Guangdong Yueyang Power Generation Co., Ltd at the price of
RMB 78 million had been approved in 2015 fourth communication meeting of the eighth session board of
directors for implementation.
(4) The company together with Guangdong Yudean Group Co., Ltd jointly established Guangdong Yuden Captive
Insurance Company, which had been approved in the ninth board meeting of the eighth session board of directors
for implementation.
Website for temporary disclosure of the connected transaction
Announcement Date of disclosure Website for disclosure
Daily related transaction announcement April 18,2015 http//www.cninfo.com.cn.
Announcement on the Company’s Related
Transaction of Guangdong Yudean Finance April 18,2015 http//www.cninfo.com.cn.
Co., Ltd.
Announcement on the Controlling Subsidiary’s
Acquisition of the Volume Index of July 21,2015 http//www.cninfo.com.cn.
Closed-down Units
Related Transaction Announcement on
Establishing Guangdong Yudean Property December 12,2015 http//www.cninfo.com.cn.
Insurance Captive Co., Ltd. with Participation
XVII.Particulars about significant contracts and their fulfillment
1. Particulars about trusteeship, contract and lease
(1) Trusteeship
□Applicable √ Not applicable
No trusteeship, contract or leasing for the Company in reporting period.
(2) Contract
□ Applicable √ Not applicable
No any contract for the Company in the reporting period.
(3) Lease
□Applicable √ Not applicable
39
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
No any lease for the Company in the reporting period..
2.Guarantees
(1) Guarantee situation
√Applicable □ Not applicable
In RMB’0000
Particulars about the external guarantee of the Company (Barring the guarantee for subsidiaries)
Guarante
Relevant e
Date of
disclosure Complete for
happening Actual
date/No. of Amount of Guarantee Guarantee implemen associate
Name of the Company (Date of mount of
the Guarantee type term tation d
signing guarantee
guaranteed or not parties
agreement)
amount (Yes or
no)
The power pl
Weixin Yuntou Yudean Guaranteeing ant put into o
March
Zhaxi Energy Co., 27,400 April 11,2013 11,520 of joint peration and t No No
8,2012
Ltd. liabilities. erminated aft
er two years
Yunnan Baoshan
Binlangjiang Guaranteeing
May November
Hydroelectricity 1,305 261 of joint 12 years No No
24,2007 30,2007
Development Co., liabilities.
Ltd.
Yunnan Baoshan
Binlangjiang Guaranteeing
May December
Hydroelectricity 4,350 2,900 of joint 15 years No No
24,2007 19,2007
Development Co., liabilities.
Ltd.
Yunnan Baoshan
Binlangjiang Guaranteeing
December December
Hydroelectricity 4,350 1,450 of joint 15 years No No
19,2007 25,2007
Development Co., liabilities.
Ltd.
Yunnan Baoshan
Binlangjiang Guaranteeing
December
Hydroelectricity 12,000 March 18,2008 11,000 of joint 18 years No No
19,2007
Development Co., liabilities.
Ltd.
40
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Yunnan Baoshan
Binlangjiang Guaranteeing
August
Hydroelectricity 5,800 October 31,2008 4,300 of joint 17 years No No
22,2008
Development Co., liabilities.
Ltd.
Yunnan Baoshan
Binlangjiang Guaranteeing
November November
Hydroelectricity 7,250 2,088 of joint 10 years No No
12,2008 14,2008
Development Co., liabilities.
Ltd.
Yunnan Baoshan
Binlangjiang Guaranteeing
May
Hydroelectricity 7,250 May 27,2009 4,350 of joint 12 years No No
27,2009
Development Co., liabilities.
Ltd.
Yunnan Baoshan
Binlangjiang Guaranteeing
May
Hydroelectricity 9,367 June 22,2009 7,047 of joint 18 years No No
27,2009
Development Co., liabilities.
Ltd.
Yunnan Baoshan
Binlangjiang Guaranteeing
September December
Hydroelectricity 14,500 6,245 of joint 10 years No No
10,2010 16,2010
Development Co., liabilities.
Ltd.
Total actually amount of
Total amount of approved external
0 external guarantee in the -68,890.99
guarantee in the report period(A1)
report period(A2)
Total amount of approved external Total actually amount of
guarantee at the end of the report 190,835 external guarantee at the 51,161
period(A3) end of the report period(A4)
Guarantee of the company for its subsidiaries
Guarante
Related Date of Complete
Actually e for
Name of the company announcem Amount of happening(date Guarantee Guarantee implemen
guarantee related
guaranteed ent date guarantee of signing type term tation or
amount party(yes
and no. agreement) not
or no)
Guaranteein
Lincang Yudean July 22, December
3,430 1,029 g of joint 14 years No No
Energy Co., Ltd. 2006 25,2006
liabilities.
Lincang Yudean July 1,372 July 29,2008 411.6 Guaranteein 10 years No No
41
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Energy Co., Ltd. 22,2006 g of joint
liabilities.
Zhanjiang Wind Guaranteein
April
Power Generation Co., 18,571.7 October 9,2010 18,571.7 g of joint 18 years No No
29,2009
Ltd. liabilities.
Guangdong Shaoguan Guaranteein
June
Yuejiang Power 23,075 July 28,2011 2,986.47 g of joint 7 years No No
29,2011
Generation Co., Ltd. liabilities.
Guangdong Shaoguan Guaranteein
November
Yuejiang Power 23,400 July 3,2014 16,920 g of joint 5 years No No
16,2013
Generation Co., Ltd. liabilities.
Total of actual guarantee for
Total of guarantee for subsidiaries
3,920 subsidiaries in the period -13,968.74
approved in the period(B1)
(B2)
Total of actual guarantee for
Total of guarantee for subsidiaries
141,536 subsidiaries at 39,918.77
approved at period-end(B3)
period-end(B4)
Total amount of guarantee of the Company( total of two abovementioned guarantee)
Guarante
Related Date of Complete
Actually e for
Name of the company announcem Amount of happening(date Guarantee Guarantee implemen
guarantee related
guaranteed ent date guarantee of signing type term tation or
amount party(yes
and no. agreement) not
or no)
Total of Company’s guarantee（namely total of the large three aforementioned）
Total of guarantee in the Period Total of actual guarantee in
3,920 -82,859.73
（A1+B1+C1） the Period（A2+B2+C2）
Total of actual guarantee at
Total of guarantee at Period-end
332,371 Period-end 91,079.77
（A3+B3+C3）
（A4+B4+C4）
The proportion of the total amount of actually guarantee in the net
3.83%
assets of the Company(that is A4+B4+C4)
Including
The debts guarantee amount provided for the
Guaranteed parties whose assets-liability ratio exceed 71,067.47
70% directly or indirectly（E）
Total guarantee Amount of the abovementioned guarantees
71,067.47
（D+E+F）
Description of the guarantee with complex method
42
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(2) Illegal external guarantee
□ Applicable √ Not applicable
No Illegal external guarantee in the report period.
3.Situation of Entrusting Others for Managing Spot Asset
(1)Situation of Entrusted Finance
□ Applicable √ Not applicable
No any Entrusted Finance for the Company in the reporting period..
（2）Situation of Entrusted Loans
□ Applicable √ Not applicable
No any Entrusted loans for the Company in the reporting period..
4. Other significant contract
□ Applicable √ Not applicable
No other significant contracts for the Company in reporting period.
XVIII. Explanation about other significant matters
□ Applicable √ Not applicable
No Explanation about other significant matters other for the Company in reporting period.
XIX. Major issues of subsidiary
□ Applicable √ Not applicable
XX. Social responsibility
√Applicable □ Not applicable
The company actively fulfilled the social responsibilities. From 2008, the company disclosed its annual social
responsibility report. Please see the full text of the reports issued on www.cninfo.com.cn.
Whether the listed company and its subsidiaries belong to the heavy polluting industries regulated by the state
environmental protection department.
□ Yes √ No □Not applicable
XXI. Information about the corporate bonds
Whether the listed company failed to honor the corporate bonds public issued and listed on the Stock Exchange in
43
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
due or undue at the approval date of the annual report
No
44
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
1.Basic information of corporate bonds
Bond short Bond balance
Bond name Bond code Issue day Due day Interest rate Servicing way
name ‘0000
Using simple
interest rate on
a yearly basis,
2012 Corporate regardless of
compound
bonds of
interest. Due
Guangdong Electric payments once
12 Yudean
112162.SZ March 18,2013 March 17,2020 120,000 4.95% a year,
Power Bond maturing debt
Development Co., at a time. In the
final phase,
Ltd..
interest is paid
together with
the principal
redemption.
Corporate bonds listed or
Shenzhen Stock Exchange
trading places
During the reporting period, The company paid the bond interests of the current year on March 18, 2015 to all the bond holders
interest payment situation of the who were registered in China Securities Depository and Clearing Co., Ltd. Shenzhen branch as of
company bonds the afternoon of March 17, 2015 when the Shenzhen Stock Exchange closed.
If the corporate bonds attached
to special clauses to the issuer
or the investors such as option The duration of the bonds is 7 years, with redemption option, option of raising coupon rate by the
clause and exchangeable clause, issuer and the puttable right for the investors at the end of the fifth year. During the reporting
please specify the period, the relevant clauses have not met the conditions for implementation.
implementation status of the
corresponding clauses. (When
applicable)
2、 Bond trustee and the credit rating agency information
Bond trustee：
Liu
Longwen,Zha
o Xinxin,
22/F, CITIC Wang
Securities Chaonan,
Building , Song Yilan,
CITIC No.48. He Shen, Guo
Name Securities Co., Office Liangmaqiao Contact Jianhan, Chen Tel 010-60838888
Ltd. Road, Yali, Wang
Chaoyang Hongfeng,
District , Zhang
Beijing Zengwen, Wu
Annan, Chen
Xi and Chang
Wei.
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.
3、 The usage of corporate bonds to raise money
The usage and performance of raised funds According to the relevant contents in the Prospectus of the Issuance of Bonds
45
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
from Corporate bonds announced on March 14, 2013, the company planned to use RMB 820 million of the
raised funds to repay the loans, thus to adjust the debt structure; the remaining RMB
380 million of the raised funds planned for supplementing the company’s liquidity, so
as to improve the company’s funds status. The net amount of the funds raised by the
bonds had been remitted to the company’s designated bank account on March 20,
2013, of which the amount of RMB 820 million of the raised funds had been used for
repaying the loans, so as to adjust the debt structure; the remaining RMB 380 million
of the raised funds used for supplementing the company’s liquidity, so as to improve
the company’s funds status.
At the end of balance (ten thousand) 0
Whether the usage of the raised money
corresponding to the purposes of promise, Yes
use plans, and other agreement
4、 Corporate bond rating information
On June 18, 2015, CCXR traced and analyzed the credit status of the company and the company’s bonds of
“12-Yuedian Bonds”, maintained the credit rating of AAA for the main body of the company, with a stable
outlook; maintained the credit rating of AAA for the corporate bonds.(The rating results were disclosed on the
website: http://www.ccxr.com.cn/, with the title of Tracking and Rating Report for the 2012-Corpoprate Bonds of
Guangdong Electric Power Development Co., Ltd(2015).
5、 Corporate bond credit mechanism, the debt repayment plans and other security measures
(1)The credit-raising mechanism: No guarantee of the company’s bonds. After the comprehensive assessment by
CCXR, the credit rating of the main body of the company is AAA with a stable outlook, and the credit rating of
the corporate bonds is AAA.
(2)The repayment plan: The interest of the bonds commenced from the date of March 18, 2013, and the interest of
the bonds shall be paid once each year within the duration of the bonds after the commencement date of the
interest. The date of March 18 of each year in the period from 2014 to 2020 shall be the interest paying day for
paying the recent full year’s bond interests (If it is not a working day, the payment day will be postponed to the
first working day after the day). If the issuer performs the redemption option or the investors perform the puttable
right, then the date of March 18 of each year in the period from 2014 to 2018 is the interest paying day for paying
the recent full year’s interests of the bonds being redeemed or the bonds being sold back. The maturity date of the
bonds is March 18, 2020, and the company will repay the principal and pay the last full year’s interest when the
bond is due. If the issuer performs the redemption option or the investors perform the puttable right, the maturity
date of the bonds being redeemed or the bonds being sold back is March 18, 2018, and the corresponding
principal and the last full year’s interest will be repaid.
(3) Safeguard measures for the repayment: in order to fully and effectively safeguard the interests of the
bondholders, the company had made a series of work plans for the full repayment of the bonds that can be
implemented on time, including the designated department and personnel, arrangement of repaying the bonds,
establishment of the management measures, doing good organization and coordination, strengthening the
information disclosure and so on, strived to form a set of safeguard measures for ensuing the repayment of the
bonds.
6、 During the reporting period the bondholder meeting
During the reporting period, the company did not hold bondholders meeting.
7、 During the reporting period the bond trustee perform his duties
The company’s bond trustee- CITIC Securities Co., Ltd safeguarded the legal rights of the bond holders with in
accordance with the law and performed the obligations stipulated in the Prospectus of the Issuance of Bonds and
other publicly disclosed documents, hence continuously followed up and acquainted the relevant information of
the company during the entrusting period, issued and provided the regular report of the bond trustee, with in
accordance with the company’s information being followed up and acquainted.
46
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
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 2014) on April 30, 2015, and the report was disclosed
on the cninf website on May 8, 2015 by the company.
8、 During the reporting period, the company's major accounting data and financial indicators for last 2
years
In RMB’0000
Items 2015 2014 At the same time rate of change
EBITDA 1,115,030.95 1,109,645.33 0.49%
The net cash flow generated by
-433,919.13 -609,445.99 -28.80%
investment activities
The net cash flow generated by
-540,411.64 -214,736.86 151.66%
financing activities
The final cash and balance of
522,740.67 452,827.73 15.44%
cash equivalents
liquidity ratio 66.99% 67.38% -0.39%
Asset-liability ratio 57.98% 59.78% -1.80%
Quick action ratio 54.93% 53.38% 1.55%
EBITDA total debt ratio 31.51% 31.06% 0.45%
The multiple of interest
3.87 3.67 5.45%
safeguard
The multiple of cash interest
7.15 6.27 14.04%
safeguard
EBITDA multiple of interest
5.8 5.48 5.84%
safeguard
loan payment rate 100.00% 100.00% 0.00%
Interest rate of pay 100.00% 100.00% 0.00%
The main reason that the accounting data and financial indicators yoy change more than 30%
√ Applicable □not applicable
The net outflow of the cash flow from financing activities increased by 151.66%, which mainly due
to the increase of cash payments repaid for the debt during the reporting period.
9. Property rights limits by the end of report period
None
10.During the report period interest payment for other bonds and debt financing tool
1.The Company issued corporate bonds of RMB 2 billion with coupon rate of 5.5% on March 10, 2008.
Construction Bank of China Co., Ltd. authorized its Guangdong Branch to provide full-amount, unconditional and
irrevocable guarantee of joint and several liabilities. The corporate bonds were listed for trading at Shenzhen
Stock Exchange on March 27, 2008. Stock code: 112001; Stock abbreviation: 08 Yudean Bond. Term: 7 years. Put
provision is attached. March 3, 2015 is the trading termination day.
During the reporting period, the transaction for "08-Yudean Bond” on the Shenzhen Stock Exchange was
terminated on March 3, 2015. The company completed the works of honoring the bonds and paying the bonds
interests on March 10, 2015.
2. On August 19, 2014,The company issued 400,000,000 yuan of short-term financing bonds with a time limit of
365 days, during the reporting period, the company has repaid the principal and interests of RMB 413,361,187.
3.On December 24, 2014,The company issued 100,000,000 yuan of short-term financing bonds with a time limit
of 365 days, during the reporting period, the company has repaid the principal and interests of RMB 101,774,520.
4. The company’s subsidiary- Guangdong Huizhou Pinghai Power Generation Plant Co., Ltd issued 300,000,000
yuan of short-term financing bonds with a time limit of 365 days, during the reporting period, the company has
47
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
repaid the principal and interests of RMB 314,427,312.
11、During the report period obtain bank credit, its use situation and repayment of bank loans
On December 31, 2015, the company signed an unconditional available bank amount limit of about RMB 43.117
billion, of which the used amount limit was RMB 16.068 billion, thus the remaining available bank amount limit
was about RMB 27.049 billion. The company repaid the back loans of about RMB 21.556 billion in the current
year, and the balance of the bank loans was RMB 27.591 billion.
12、During the reporting period the situation of performing the related agreement or commitment in the
corporate bond prospectus
During the reporting period, the company strictly implemented the provisions stipulated in the Prospectus of
Issuance of Bonds, timely paid the bond interests to the bond holders according to the time stipulated in the basic
clauses of the bonds and performed the obligation of information disclosure related to the bonds with in
accordance with relevant laws, and there was no situation of jeopardizing the interests of the bond investors.
13、Major events occurring in the period of report
None
14、Whether there is a guarantor corporate bonds
□ Yes √No
48
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
VI. Change of share capital and shareholding of Principal
Shareholders
(1) Changes in share capital
1. Changes in share capital
In Shares
Before the change Increase/decrease（+，-） After the Change
Amount Proportio Capitaliza
n tion of
Share Bonus Proportio
common Other Subtotal Quantity
allotment shares n
reserve
fund
I. Share with conditional 1,582,205, 316,327,8 315,761,4 1,897,966
36.16% -566,370 36.15%
subscription 389 04 34 ,823
2. State-owned legal person 1,577,865, 315,557,1 315,477,3 1,893,342
36.06% -79,740 43.27%
shares 257 04 64 ,621
3.Other domestic shares 4,340,132 0.10% 770,700 -486,630 284,070 4,624,202 0.09%
Of which：Domestic legal
4,272,301 0.10% 770,111 -421,746 348,365 4,620,666 0.09%
person shares
Domestic natural person
67,831 0.00% 589 -64,884 -64,295 3,536 0.00%
shares
II. Shares with unconditional 2,793,031, 558,719,5 559,285,8 3,352,317
63.84% 566,370 63.85%
subscription 266 27 97 ,163
2,127,691, 425,651,5 426,217,8 2,553,909
1.Common shares in RMB 48.63% 566,370 48.64%
266 27 97 ,163
2.Foreign shares in domestic 665,340,0 133,068,0 133,068,0 798,408,0
15.21% 15.21%
market 00 00 00 00
4,375,236, 875,047,3 875,047,3 5,250,283
III. Total of capital shares 100.00% 100.00%
655 31 31 ,986
Reasons for share changed:
√ Applicable □ Not applicable
1. The total shares have additional 875,047,331 shares on June 26, 2015 owing to the implementation of 2014
annual equity distribution program.
2. 566,370 Share A stocks have become the unrestricted circulation stocks since May 25, 2015 due to the dissolution
of restriction procedure handled by some corporate shareholders in the equity division reform.
Approval of Change of Shares
□ Applicable √ Not applicable
Ownership transfer of share changes
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
common shareholders of Company in latest year and period
√ Applicable □ Not applicable
After the implementation of stock dividend program in this time, the annual earnings per share is RMB0.57 in
2014 and the semi-annual earnings per share is RMB0.33, which are calculated according to the dilution of
49
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
5,250,283,986 new capital stocks.
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
□ Applicable √ Not applicable
Explanation on changes in aspect of total shares, shareholders structures as well as structure of assets and liability
of the Company
□ Applicable √ Not applicable
After the implementation of the stock dividend plan, according to the new share capital of 5,250,283,986 shares
for the calculation, the 2014 annual earnings per share was RMB 0.57 and the earnings per share in the first three
quarters of 2015 was RMB 0.50.
2. Change of shares with limited sales condition
In Shares
√ Applicable □ Not applicable
Non-circulated Decrease during Increase during Non-circulated Reason for
Name of Date for the
shares held at the the reporting the reporting shares held at the non-circulated
shareholders circulated shares
year-beginning period period year-end shares
The relevant
procedures for
the stock right
Peng Guoqing 64,884 64,884 0 0 2015-05-25
dividing reform
have not been
completed.
The relevant
Shenzhen
procedures for
Zhongceyuan
the stock right
Investment 421,746 421,746 0 0 2015-05-25
dividing reform
Development Co.,
have not been
Ltd.
completed.
The advance
repayment shares
Guangdong Yudean
1,577,865,257 79,740 315,557,104 1,893,342,621 acquired in the 2015-05-25
Group Co., Ltd.
stock right
dividing reform
Total 1,578,351,887 566,370 315,557,104 1,893,342,621 -- --
Ⅱ.Issuing and listing
1.Explanation of the Situation of the Security Issue(No Preferred Shares) in the Report Period
□Applicable √Not applicable
2.Change of asset and liability structure caused by change of total capital shares and structure
√ Applicable □ Not applicable
During the reporting period, the company implemented the 2014 profits distribution plan, according to the total
share capital of 4375236655 shares, for A-share, the company will distribute cash dividends of RMB 2 (tax
inclusive) and two bonus shares per 10 shares; for B-share, the company will distribute cash dividends of RMB 2
(tax inclusive) and two bonus shares per 10 shares. The company’s total share capital increased 875,047,331
shares on June 26, 2015, thus the total share capital changed to 5,250,283,986 shares.
50
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
3.About the existing employees’ shares
□Applicable√Not applicable
Ⅲ.Shareholders and actual controlling shareholder
1. Number of shareholders and shareholding
In Share
Total
Total number preferred shareh
Total The total number o
of common olders at the end
shareholders at f preferred shareho
shareholders at of the month
the end of the lders voting rights
the end of the 112,666 112,579 0 from the date of 0
month from the restored at period-e
disclosing the
reporting date of disclosing nd(if any)(See
annual report(if
period the annual report Notes 8)
any)(See Notes
8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Number Amount Amount Number of share pledged/frozen
Proportio Changes
Shareholders of shares of of
Nature of n of in
held at restricted un-restrict
shareholder shares reporting State of share Amount
period shares ed shares
held（%） period
-end held held
Guangdong
State-owned legal 3,538,005 589,667,5 1,893,342 1,644,662,
Yudean Group Co., 67.39%
person ,285 48 ,621 664
Ltd.
China Securities State-owned legal 145,748,9 145,748,9 145,748,9
2.78%
Finance Co., Ltd. person 80 80 80
Guangdong
Guangfa Electric State-owned legal 116,693,6 14,916,41 116,693,6
2.22%
Power Investment person 02 7 02
Co., Ltd.
Guangdong
Electric Power State-owned legal 94,367,34 15,727,89 94,367,34
1.80%
Development person 10 1
Corporation
GOLDEN CHINA Overseas Legal 32,393,06 32,393,06
0.62% 5,398,843
MASTER FUND person 0 0
Domestic non
National social State-owned 23,999,68 23,999,68 23,999,68
0.46%
security fund 102 55 5
Legal person
GREENWOODS
Overseas Legal 20,238,88 20,238,88
CHINA ALPHA 0.39% 3,373,148
person 6 6
MASTER FUND
Overseas Legal 18,209,31 -2,240,10 18,209,31
NORGES BANK 0.35%
person 88 8
CHINA INT'L
CAPITAL CORP Overseas Legal 15,682,33 15,682,33
0.30% 5,034,093
HONG KONG person 6 6
SECURITIES LTD
BBH A/C
VANGUARD
EMERGING Overseas Legal 15,675,14 15,675,14
0.30% 2,344,607
MARKETS person 4 4
STOCK INDEX
FUND
51
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Strategy investors or general legal
person becomes top 10 shareholders
Not applicable
due to rights issued (if applicable)（See
Notes 3）
The fourth largest shareholder Guangdong Electric Power Development Corporation is the
Explanation on associated relationship wholly-owned subsidiaries of the largest shareholder Yudean Group. These two companies
among the aforesaid shareholders 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 of the Share type
Name of the shareholder
reporting period Share type Quantity
RMB Common
Guangdong Yudean Group Co., Ltd. 1,644,662,664
shares
RMB Common
China Securities Finance Co., Ltd. 145,748,980
shares
Guangdong Guangfa Electric Power RMB Common
116,693,602
Investment Co., Ltd. shares
Guangdong Electric Power RMB Common
94,367,341
Development Corporation shares
Foreign shares
placed in
GOLDEN CHINA MASTER FUND 32,393,060
domestic
exchange
RMB Common
National social security fund 102 23,999,685
shares
Foreign shares
GREENWOODS CHINA ALPHA placed in
20,238,886
MASTER FUND domestic
exchange
Foreign shares
placed in
NORGES BANK 18,209,318
domestic
exchange
Foreign shares
CHINA INT'L CAPITAL CORP placed in
15,682,336
HONG KONG SECURITIES LTD domestic
exchange
Foreign shares
BBH A/C VANGUARD EMERGING placed in
15,675,144
MARKETS STOCK INDEX FUND domestic
exchange
Explanation on associated relationship
or consistent action among the top 10
The fourth largest shareholder Guangdong Electric Power Development Corporation is the
shareholders of non-restricted
wholly-owned subsidiaries of the largest shareholder Yudean Group. These two companies
negotiable shares and that between the
have relationships; whether the other shareholders have relationships or unanimous acting
top 10 shareholders of non-restricted
was unknown.
negotiable shares and top 10
shareholders
Explanation on shareholders
participating in the margin trading Not applicable
business(if any )(See Notes 4)
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.
52
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
2.Controlling shareholder
Nature of Controlling Shareholders: Local state holding
Type of Controlling Shareholders:Legal person
Legal
Name of the Controlling
representative/Leade Date of incorporation Organization code Principal business activities
shareholder
r
Management and sales of
the electricity investment
construction operation
management，electricity
power(Thermal Power)，
The industry of
Guangdong Yudean Group transportation resources
Li Zhuoxian August 3,2001 73048602-2
Co., Ltd. environmental protection，
new source of energy
electricity investment;
investment planning and
consulting ; information
consulting service; sales of
production materials.
Change of the actual controller in the reporting period
□Applicable √Not applicable
N/A
3．Information about the controlling shareholder of the Company
Actual controller nature：Local state owned assets management
Actual controller type：Legal person
Legal
Name of the controlling Date of
representative/per Organization code Principal business activities
shareholder establishment
son in charge
As the special institution directly
State-owned Assets supervision subordinate to Guangdong
and administration Commission Provincial People's Government,
of Guangdong Lv Yesheng August 26,2006 758336165 performed the obligation of
Provincial People’s provincial state-asset contributor
Government entrusted by the provincial
government.
Equity of other
domestic/foreign listed
company with share
controlling and share Not applicable
participation by
controlling shareholder in
reporting period
Changes of the actual controller in the reporting period
□Applicable √Not applicable
No Changes of the actual controller in the reporting period
Block Diagram of the ownership and control relations between the company and the actual controller
53
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
The actual controller controls the company by means of trust or managing the assets in other way
□Applicable √Not applicable
4.Particulars about other legal person shareholders with over 10% shareheld
□Applicable √Not applicable
5.Situation of Share Limitation Reduction of Controlling Shareholders, Actual Controllers, Restructuring
Party and Other Commitment Subjects
□Applicable √Not applicable
54
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
VII. Situation of the Preferred Shares
□ Applicable √Not applicable
The Company had no preferred shares in the reporting period.
55
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
VIII. Information about Directors, Supervisors and Senior Executives
I. Change in shares held by directors, supervisors and senior executives
Amount Amount
Shares of shares of shares Shares
Other
Starting Expiry held at increased decreased held at
Office changes
Name Positions Sex Age date of date of the at the at the the
status increase/d
tenure tenure year-begi reporting reporting year-end(
ecrease
n(share) period(sh period(sh share)
are) are)
Li Board May May
In office Male 52
Zhuoxian chairman 7,2015 20,2017
Zhong May May
Director In office Male 59
Weimin 20,2014 20,2017
Hong May May
Director In office Male 58
Rongkun 20,2014 20,2017
Gao May May
Director In office Male 58
Shiqiang 20,2014 20,2017
Kong May May
Director In office Male 59
Huitian 20,2014 20,2017
Li
May May
Minglian Director In office Male 51
20,2014 20,2017
g
Yang May May
Director In office Male 53
Xinli 20,2014 20,2017
Director,
Yao May May
General In office Male 50
Jiheng 20,2014 20,2017
Manager
Hu May May
Director In office Male 50
Xiaolei 20,2014 20,2017
Zhang May May
Director In office Male 49
Xueqiu 20,2014 20,2017
Independ
May May
Liu Tao ent In office Male 44
20,2014 20,2017
director
Zhang Independ May May
In office Male 50
Hua ent 20,2014 20,2017
56
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
director
Independ
ent May May
Sha Qilin In office Male 55
Superviso 20,2014 20,2017
r
Independ
Mao ent May May
In office Male 52
Fugen Superviso 20,2014 20,2017
r
Independ
Ding ent May May
In office Male 46
Yougang Superviso 20,2014 20,2017
r
Independ
ent May May
Lu Jun In office Male 53
Superviso 20,2014 20,2017
r
Chairman
of the
Zhang Superviso May May
In office Male 54
Dewei ry 20,2014 20,2017
Committe
e
Superviso May May
Zhao Li In office Female 43
r 20,2014 20,2017
Independ
Zhu ent May May
In office Male 58
Weiping Superviso 20,2014 20,2017
r
Independ
Jiang ent May May
In office Male 47
Jinsuo Superviso 20,2014 20,2017
r
Employee
Lin May May
superviso In office Male 47 3,930 786 0 4,716
Weifeng 20,2014 20,2017
r
Employee
May May
Li Qing superviso In office Male 38
20,2014 20,2017
r
Yang Deputy May May
In office Male 50
Xuanxing GM 20,2014 20,2017
57
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Deputy
Li GM, May May
In office Female 44
Xiaoqing Finance 20,2014 20,2017
manager
Deputy May May
Liu Hui In office Female 50
GM 20,2014 20,2017
Board May May
Liu Wei In office Male 36
secretary 20,2014 20,2017
Board May May
Pan Li Retired Male 61
chairman 20,2014 7,2015
Zhu May July
Director Retired Male 55
Dejun 20,2014 4,2015
Total -- -- -- -- -- -- 3,930 786 0 4,716
II. Change in shares held by directors, supervisors and senior executives
Name Positions Types Date Reason
Pan Li Board Chairman Retired May 7,2015 Job Changes
After the 2st meeting of the Eighth Board of Directors of
Appoint and
Li Zhuoxian Board Chairman May 7,2015 company by correspondence in 2015,the election of Mr.
remove
Li Zhuoxian as chairman of the company.
Zhu Dejun Director Retired July 4,2015 Job Changes
III.Posts holding
Work Experience in the past five years of Directors, supervisors and senior Executives in Current office
Mr.Li Zhuoxian, Male, born in June 1963, CPC member ,Han nationality, from Meixian Guangdong, bachelor’s
degree holder, Senior engineer, He had served as the technician staff of the Chemical department,
Deputy-department director, director, Deputy-Section Chief of the technique and production section, Vice-General
Engineer, and Vice-factory director of Shaoguan Electric Power Plant, director, General Manager of Guandong
Yudean Group Co., Ltd. He now serves as board Chairman and secretary of CCP of Guandong Yudean Group Co.,
Ltd. Board Chairman of the Guangdong Electric Power Development Co., Ltd.
Mr. Zhong Weimin,Male, born in August 1956, CPC member ,Han nationality, from Huadu Guangdong, bachelor
’s degree, He had served as deputy head of Cadre Appointment, Dismissal and Transfer Dransfer Division
of Organization Dept. of Guangdong Provincial Party Committee, acting mayor of Sanshui City and investigator o
f the same division and No. 1 Cadre Division of the same department. He now serves as director ,Vice secretary of
Party committee ,secretary of Committee for Disciplinary inspection and Chairman of Labour union of Guangdo
ng Yudean Group Co., Ltd. and director of Guangdong Electric Power Development Co., Ltd.
Mr. Hong Rongkun, Male, born in September 1957 , CPC member ,Han nationality, from Zhanjiang Guangdong,
58
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
bachelor’s degree holder, Senior engineer, He had served as the Party Branch Secretary for boiler department and
Deputy director of the Maoming Thermal Power Co., Ltd., deputy director of Health and Technology Department
and Vice General engineer for the Power industry Bureau , He now serves as director ,Deputy General manager
and member of CCP of Guangdong Yudean Group Co., Ltd., Director of the Guangdong Electric Development Co
Ltd.
Mr. Gao Shiqiang,Male, born in December 1957, CPC member,Han nationality, from Dapu Guangdong, a postgra
duate, A master’s degree in engineering,Senior engineer. He had served as deputy manager and deputy director of
Lianping County Power Supply Company, deputy director and director of Engineering Dept. and deputy director
general of Heyuan Power Industry Bureau, director general of Shanwei Power Industry Bureau, head of preparatio
n team of Shanwei Power Plant and head of Cadre Division of Guangdong Electric Power Group Company. He no
w serves as director, deputy General Manager,member of CCP and Chief Counselor of Guangdong Yudean Group
Co., Ltd. and director of Guangdong Electric Power Development Co., Ltd.
Mr.Li Mingliang: Male, Born in October 1964, CPC member, Han Nationality, Form Fuping Shanxi, bachelor’s
degree holder, He is a senior engineer (professor level) with master's degree. He once served as director of
Operation Dept., deputy chief engineer, deputy plant director, plant director of Zhuhai Power Plant and member of
Party committee, deputy chief engineer and director of Human Resource Dept. of Guangdong Yudean Group Co.,
Ltd. He now serves as deputy general manager, member of Party committee of Guangdong Yudean Group Co.,
Ltd. and Director of Guangdong Electric Power Development Co., Ltd.
Mr. Yang Xinli, Male, Born in November, CPC member , Han Nationality, Form Shanyang Shanxi,，Master
Degree holder, Senior Engineer. He Once served as Deputy director of the operation Center of Guangdong
Province Electric Power Industry Bureau,Director of Power Energy Dept. of Guangdong Provincial Economic &
Trade Commission Committee and Director of Personnel Dept. of Guangdong Provincial Economic &
Information Commission, He now serves as Deputy General Manager and Member of Party committee of
Gufangdong Yudean Group Co., Ltd. and Director of Guangdong Electric Power Development Co., Ltd.
Mr. Yao Jiheng, male, born in November 1965, From Chenzhou of Hunan, CPC member, Han Nationality,
Bachelor degree, Master Degree holder ,He is a (professor-level) senior engineer with bachelor's degree. He once
served as deputy factory director of Yunfu Power Plant and Huangpu Power Plant, factory director of Shajiao A
Power Plant, member of Party committee, deputy chief engineer and director of Safety Monitor and Production
Technology Dept. of Guangdong Yudean Group Co., Ltd. He now serves as a director and general manager of
Guangdong Electric Power Development Co., Ltd.and board Chairman of Guangdong Shaoguan Yuejiang Power
Generation Co., Ltd.
Mr. Hu Xiaolei, male, born in February 1965, CPC member, Han Nationality, Form Jiangjing of Chongqing, a
Postgraduate, Doctor’s degree holder, He is a (professor-level) senior engineer. He once served as Teacher of the
Thermal power professional of Wuhan hydraulic and electric engineering institute, Deputy chief engineer of
Shajiao Power Plant, Deputy, Deputy Chief Economist of Shajiao C Power Plant, Deputy Director of Personnel
Dept of Guangdong Yudean Group Co., Ltd. Director of Biotechnology Dept of Guangdong Yudean Group Co.,
Ltd.and General Manager of Guangdong Shipping Co., Ltd. He Now serves as Director of Guangdong Electric
Power Development Co., Ltd. and director of Shajiao A power Plant.
59
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Mr.Zhang Xueqiu, Male born in January 1966, CPC member, Han nationality, from Hunan, He is an economic
engineer with master's degree. He once served as clerk, deputy section chief, section chief and manager assistant
of Management Dept., deputy general manager and general manager of Guangzhou Development Group Co., Ltd.
He now serves as vice president of administration and board secretary of Guangzhou Development Industrial
Holding Group Co., Ltd. and Director of Guangdong Electric Power Development Co., Ltd.
Mr.Liu Tao,Male , born in March 1971, Han nationality, from Anyang Henan, He is a level-1 lawyer with doctor's
degree in laws. He now serves as a partner of Guangdong Fazhi Shengbang Law Office and member of the Ninth
and Tenth CPPCC of Guangdong Province and Social and Legal Affairs Committee of CPPCC of Guangdong
Province and concurrently serves as member of Expert Consultation Committee of Guangdong People's
Procuratorate, supervisor of registration of letters and visits for Guangdong Higher People's Court, arbitrator of
Guangzhou Arbitration Commission. And independent director of Guangdong Electric Power Development Co.,
Ltd
Mr. Zhang Hua, Male, born in March 1965, Han nationality, From Xingguo Jiangxi, Master of Economics, an
Economist, He once served as Business Manager of Credit Dept of Nation Development Bank. Guangzhou
Branch, Senior Analyst of Guangdong Gold Finger Investment Consultants Co., Ltd. Deputy Manager of
Fanincial Dept of Guangdong Baoxin Holding Group Co., Ltd. Majordomo of Investment Bank and Assistant of
president of Junhua Group, Deputy General Manager of Guangzhou Yingzhi Caihua Investment Co., Ltd. He now
serves as Deputy General Manager of Guangzhou Derui Investment Co., Ltd., Deputy Geneal Manager of
Shenzhen Dongying Ruitong Management Partnership (Limited partnership) and Independent director of
Guangzhou Yuyin Technology Co., Ltd and Guangdong Electric Power Development Co., Ltd.
Mr. Sha Qilin,Male, born in October 1960, CPC member ,Han nationality, from Honghu Hubei, doctor's degree
holder, Associate professor, A lawyer. He once served as associate professor of Automobile Engineering Dept. of
Wuhan Engineering College (now named as Wuhan Science and Engineering University) and person in charge of
Investment and Development Dept., deputy chief engineer and head of overseas listing leading team of China
Huandao Group Company. He now serves as the lawyer of Nanguo Desai Lawyer Office, member of finanical
securties Committee of Guangzhou Lawyers Association and independent superviser director of Guangdong
Electric Power Development Co., Ltd.
Mr. Mao Fugen, Male, born in October 1963,Nan nationality, from Pinghu Zhejiang,Doctor of Economics , He
Now serves as Professor of Accounting Dept of Xiamen,
served as long-term EMBA Professor at Xiamen University and other Universities ，and Independent director of
Xiamen International Trade Group Co., Ltd.,Zhejiang Aokang Shoes Industry Co., Ltd. And Guangdong Electric
Power Development Co., Ltd
Mr. Ding Yougang , Male, born in August 1969, Han Nationality, from Wuwei Anhui,Doctor of Business
administration(Accounting)，CPA, Professor ,Doctoral supervisor. He Now serves as Professor and director of
Accounting Dept of Jinan University ,Director of MPACCEducation Center of Jinan University,
Treasury accounting academic leading talent, the Treasury Internal Control Standards expert advisory committee
of experts, internal control Accounting Society of China Professional Committee, vice chairman of the Guangdon
g Provincial Accounting Association, vice president of the Guangzhou Municipal Audit Society, Kexin Communi
cation Technology Co., Ltd., An Biping Guangzhou pharmaceutical Technology Co., Ltd., Independent director
of Guangdong Electric Power Development Co., Ltd, External supervisor of Zhuhai Rural Commercial Bank
60
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Mr. Lu Jun, Male, born in August 1962, Han nationality, form Xianfeng Hubei, Doctor of Economics, Professor.
The current vice president of Lingnan Zhongshan University, Zhongshan University Institute of Finance served as
executive vice president, director of the Research Center of Zhongshan University , expert advisory committee
member of the People's Government of Guangdong Province, China Finance Society, "Finance Quarterly," deputy
editor, Guangdong provincial People's Government development Research Center Research Fellow, Guangdong
Finance Association executive director, Finance Committee of the Guangdong Provincial Committee to promote
cooperation between Guangdong and Hongkong executive director of the Arbitration Institute of Finance,
Guangzhou Automobile Industry Group, Dongguan Bank, an independent director of Guangdong electric Power
Development Co. , Ltd.
Mr. Zhang Dewei, Male, born in January 1961, Han nationality, Form Ningbo Zhejiang, bachelor’s degree holder,
MBA and senior economist, Senior economist .He had served as Geography lecturer of Guangzhou Normal
University. He had served as board secretary of the Board of Directors of Guangdong Electric Power
Development Co., Ltd. and deputy director of Capital Operation and Legal Affairs Dept. of Guangdong Yudean
Group Co., Ltd. He now serves as director of Working Department of auditing and supervisory committee,
secretary of Party branch of Guangdong Yudean Group Co., Ltd. and Chairman of Supervisory committee of
Guangdong Electric Power Development Co., Ltd.
Ms. Zhao Li, born in October 1972, CPC member, Han nationality, from Tieling Liaoning, bachelor’s degree,
Master’s degree, Senior accountant, She once served as Manager of Financial Dept and of Guangdong Yudean
Group Co., Ltd.She Now serves as Vice Minister of Finanical Dept of Guangdong Yudean Group Co., Ltd.and
concurrently serves as Supervisor of Supervisory committee of Guangdong Electric Power Development Co., Ltd.
Mr.Zhu Weiping,Male, born in May 1957, Han nationality, from Yiyang Hunan, doctor degree in Economics,
professor and tutor of Ph. D. students. Zhu was a professor of the Management College of Jinan University. Now
he is the executive dean of Industrial Economy Institute of Jinan University, executive member of Chinese
Industrial Economic Association and Guangdong Economic Association, deputy secretary-general of Guangdong
Non-state-owned Economic Association and executive member of Guangdong Young & Middle-aged Economic
Association., independent director of Baiyun Airport and Zhongjin Lingnan and independent director of
Guangdong Electric Power Development Co., Ltd.
Mr.Jiang Jinshuo, Male, Born in March 1968, CPC member, Han Nationality, from Hongan Hubei, Professor,
Doctor of accountancy, CPA. He Now serves as Deputy director of Accounting Dept of Guangdong Finance
College, member of Guangdong CPA Association and independent Supervisor of Guangdong Electric Power
Development Co., Ltd.
Mr. Lin Weifeng, Male, born in February 1968, CPC member , Han nationality , from Jiexi Guangdong,
bachelor’s degree holder , Senior Accountant, He once worked at Xinfengjiang Hydroelectric Power Plant and
Shanjiao Power Plant and served as audit director of Shajiao General Power Plant and director of finance
department of Shajiao A Power Plant. He now serves as employee supervisor of Guangdong Electric Power
Development Co., Ltd. and deputy chief economic engineer of Shajiao A Power Plant.
Mr. Li Qing, Male, born in May 1977, CPC member , Han nationality, from Guiping Guangxi, Bachelor degree
61
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
holder, Senior Accountant, He once served as Accounting of Financial Dept of Yunfu Power Generation Plant,
Assistant Director of Financial Dept of Guangdong Yuelong Power Generation Plant, He Now serves as
Employee Supervisor and director Audit office of Guangdong Electric Power Development Co., Ltd.
Mr. Yang Xuanxing, male, born in November 1965, CPC member, Han nationality, Form Shaoyang Hunan, senior
auditor with bachelor's degree He once served as deputy chief of Audit Division of Guangdong Power Industry
Bureau, director of Audit and Supervision Dept. of Guangdong Yudean Assets Operation Co., Ltd., deputy
secretary of the discipline committee and director and deputy chief accountant of Finance Dept. of Guangdong
Yudean Group Co., Ltd. He now serves as deputy general manager of Guangdong Electric Power Development
Co., Ltd.
Ms Li Xiaoqing, Female, born in September 1971, CPC member, Han nationality, from Chongqing, master’s
degree holder, Senior Economist engineer . Ms. Li has took the position as person in charge being responsible to
the General Manager Secretary of the Board of Directors and Manager of Affair Dept. of Board of Directors of
Guangdong Electric Power Development Co., Ltd, she now serves as General Manager, Manager of Financial
Dept. of Guangdong Electric Power Development Co., Ltd. and director of Guangdong Yudean Shipping Co., Ltd.
Ms Liu Hui, Female, born in October 1965，CPC member ,Han nationality, From Wusheng Sichuan, bachelor’s
degree holder, a senior engineer, She had served as Deputy General Manager and director of Budget Dept. Of
Guangdong Thermal power Engineering Corporation and Manager of Project Management Dept. of Guangdong
Electric Power Development Co., Ltd. She now serves as Deputy General Manager of Guangdong Electric Power
Development Co., Ltd. and concurrently serves as director of Guangdong Guangqian Electric Power Co., Ltd.
Mr. Liu Wei, Male, born in April 1979, CPC member, Han nationality, from Wuhan Hubei, bachelor’s degree,
Economist engineer He once served as secretary of Supervises committee, securities affair representative and
special responsible person of Board Affair Dept. of Guangdong Electric Power Development Co., Ltd. and
Preparation Team of Guangdong Yudean Finance Co., Ltd. He now serves as board secretary and manager of
Board Affair Dept. of Guangdong Electric Power Development Co., Ltd. and concurrently serves as collector of
Supervisory committee of Guangdong Yudean Shipping Co., Ltd.
Office taking in shareholder companies
√Applicable □Not applicable
Does he /she
Titles
Names of the receive
engaged in Sharing date of Expiry date of
persons in Names of the shareholders remuneration or
the office term office term
office allowance from the
shareholders
shareholder
Board
chairman,
December
Li Zhuoxian Guangdong Yudean Group Co., Ltd. Secretary of Yes
1,2014
Party
committee
Director, Vice February
Zhong Weimin Guangdong Yudean Group Co., Ltd. Yes
Secretary of 9,2007
62
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Party
committee,
secretary of
Committe
e for Discip
linary inspe
ction
Director, February
Hong Rongkun Guangdong Yudean Group Co., Ltd. Yes
Deputy GM 9,2007
Director,
Deputy GM, February
Gao Shiqiang Guangdong Yudean Group Co., Ltd. Yes
Chief 9,2007
Counselor
Chief eco February
Kong Huitian Guangdong Yudean Group Co., Ltd. Yes
nomist 26,2009
November
Li Mingliang Guangdong Yudean Group Co., Ltd. Deputy GM Yes
4,2011
December
Yang Xinli Guangdong Yudean Group Co., Ltd. Deputy GM Yes
30,2012
Vice
President ,
Zhang Xueqiu Guangdong Yudean Group Co., Ltd. Secretary to May 8,2009 Yes
the board of
directors
Secretary of
Audit
Zhang Dewei Guangdong Yudean Group Co., Ltd. July 1,2012 Yes
Supervise
Dept
Vice
November
Zhao Li Guangdong Yudean Group Co., Ltd. Secretary of Yes
1,2010
Finance Dept
Offices taken in other organizations
□Applicable √Not applicable
Punishments to the current and leaving board directors, supervisors and senior managers during the report period
by securities regulators in the recent three years
□ Applicable √Not applicable
IV. Remuneration to directors, supervisors and senior executives
Decision-making procedures, basis for determination and actual payment of the remuneration to directors ,
supervisors and senior executives
63
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Directors, supervisors and senior executives of the Company shall obtain labor remuneration and enjoy
corresponding employee benefits according to their position and the Company's wage system. Except such
remuneration and benefits, no other remuneration and fringe benefits shall be additionally provided；The
allowance for the independent directors and independent supervisors of the Company shall be paid according to
the standards approved by the shareholders' general meeting.
At the end of the report period, the directors, supervisors and senior executives received the actual remuneration b
efore tax was total RMB 5.2707 million .
Remueration to directors, supervisors and senior executives in the reporting period
Unit ：RMB’0000
Total Remuneration
remuneration actually receivect
Name Positions Sex Age Office status
received from the at the end of the
shareholder reporting period
Li Zhuoxian Board chairman Male 52 In Office 0 Yes
Zhong Weimin Director \Male 59 In office 0 Yes
Hong Rongkun Director Male 58 In Office 0 Yes
Gao Shiqiang Director Male 58 In office 0 Yes
Kong Huitian Director Male 59 In Office 0 Yes
Li Mingliang Director Male 51 In Office 0 Yes
Yang Xinli Director Male 53 In office 0 Yes
Director General
Yao Jiheng Male 50 In Office 75.44 No
Manager
Hu Xiaolei Director Male 50 In office 61.23 No
Zhang Xueqiu Director Male 49 In Office 0 Yes
Independent
Liu Tao Male 44 In Office 7.46 No
director
Independent
Zhang Hua Male 50 In office 8.53 No
director
Independent
Sha Qilin Male 55 In Office 9.6 No
director
Independent
Mao Fugen Male 52 In office 8 No
director
Independent
Ding Yougang Male 46 In Office 6.92 No
director
Independent
Lu Jun Male 53 In Office 8 No
director
Chairman of the
Zhang Dewei Male 54 In office 0 Yes
Supervisory
64
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Committee
Zhao Li Supervisor Female 43 In Office 0 Yes
Independent
Zhu Weiping Male 58 In office 5 No
Supervisor
Independent
Jiang Jinshuo Male 47 In Office 5.36 No
Supervisor
Employee
Lin Weifeng Male 47 In Office 38.69 No
supervisor
Employee
Li Qing Male 38 In office 37.12 No
supervisor
Deputy General
Yang Xuanxing Male 50 In Office 73.05 No
Manager
Deputy GM,
Li Xiaoqing Female 44 In office 70.88 No
Finance manager
Liu Hui Deputy GM Female 50 In Office 70.57 No
Liu Wei Board secretary Male 36 In Office 41.22 No
Original Board
Pan Li Male 61 Retired 0 Yes
chairman
Zhu Dejun Original director Male 55 Retired 0 Yes
Total -- -- -- -- 527.07 --
Incentive equity to directors, supervisors or/and senior executives in the reporting period
□Applicable√Not applicable
V. Particulars about employees.
1. Staff jobs, education, job title number and proportion refer to the following pie chart:
Number of in-service staff of the parent company（person） 1,303
Number of in-service staff of the main subsidiaries（person） 5,640
Total number of the in-service staff（person） 6,943
Total number of staff receiving remuneration in the current
6,943
period（person）
The number of the parent company and the main subsidiary’s
3,161
retired staffs who need to bear the cost（person）
Professional
Classified according by Professions Number of persons（person）
Production 4,419
Sales 32
65
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Technical 1,293
Financial 163
Administrative 1,036
Total 6,943
Education
Classified according by education background Number of persons（person）
Doctor 4
Master 199
Universities 2,888
Colleges 2,021
Technical secondary school 490
High school and Below 1,341
Total 6,943
2. Remuneration policies
The company’s staff received the salaries and enjoyed the benefits according to the relevant provisions stipulated
in the company’s Salary Management Approach. The salary of the company’s staff (Except the management staff
who categorized in the annual salary system) basically constituted by the basic salary, post salary, performance
salary, allowance, overtime wages and special bounties and so on.
3.Training plan
The company formulated the Temporary Provisions for the Management of Staff Education and Training. The
staff training was adhered to the principle of learning integrated with application, learning by the needs and
stressing of practical effect, focused on the main contents of the post and the practical operation skills. The
training contents included the new staff orientation training, post training, continuing education, overseas training
and other trainings.
4. Outsourcing situation
□ Applicable √ Not applicable
66
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
IX. Administrative structure
I.Basic state of corporate governance
The company is strictly in accordance with “Company Law”, “Securities Law”, “Governance Standards of Listed
Company”, “Listing Rules of Stocks” and other laws and regulations requirements, constantly perfects the
corporate governance structure, standardizes corporate operations and further enhances the level of corporate
governance. The company has established the corporate “Articles of Association”, the rules of procedure of three
meetings’ operation, the working rules of the board of directors special committee, the working rules of the
general manager of company and working conditions and internal control system which basically covers all
aspects of the operation management like financial management, investment management, information disclosure,
associated trade, external guarantees and fund-raising. These systems are implemented better. During the
reporting period, the company has amended part of the clauses in “Inside Information Management System” based
on the original systems and the requirements of the CSRC.
Does there exist any difference in compliance with the corporate governance , the PRC Company Law and the
relevant provisions of CSRC,
□ Yes √ No
There exist no difference in compliance with the corporate governance , the PRC Company Law and the relevant
provisions of CSRC.
II. Independence and Completeness in business, personnel , assets, organization and finance
The company has implemented separation of operation,separation of human resource, separation of assets, separat
ion of organization and financial independence between controlling shareholder. And it has a complete business
and operations management ability. 1. Separation of operation: the Company is principally engaged in the
electricity generation and sales to Guangdong Electric Power Holding Co.(“GPHC”) directly. The Company has
subcontracted the subsidiary of Yudean, the holding company, to purchase the fuels, which is solely for the
purpose of better utilization of large-scale purchase and cost control. 2. Separation of human resource: the General
Manager and all his subordinates, Secretary to the Board of Directors, Financial Manager are paid by the
Company and take no position in the holding company. 3. Separation of assets: the Company has independent
production system, supporting system and other facilities. The Company owns its intangible assets such as
intellectual property rights, trademarks and non-patent technology; 4. Separation of organization: the Company
has established integrated operating institution of its own.5.. Financial independence: the Company has an
independent financial department and has established independent accounting system and financial management
system. It opened independent bank accounts for its own operation.
III. Competition situations of the industry
√Applicable □ Not Applicable
Name of the Property of the Time Schedule of
Problems and
Problem Types Controlling Controlling Countermeasures Works and
Causes
Shareholders Shareholders Follow-up Program
Guangdong Yudean In order to To achieve the above
Group is the thoroughly eliminate commitments,
strongest power horizontal specific plan of
generation company competitions Guangdong Yudean
Horizontal Guangdong Yudean of largest scale in between the Group to avoid and
Local SASAC
competitions Group Co., Ltd. Guangdong Guangdong Yudean resolve
Province. It was Group and others intro-industry
founded by the companies, the competition is as
Guangdong Yudean Guangdong Yudean follows: (1) the
Group as a division Group has issued previous
67
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
of the company, "commitment letter" restructuring
when the electricity about horizontal mentioned in
system reform competitions on "proposal about
"separation of power November 3, 2011. associated business
plants from network" And they plan and major
was initially carried Standardized the assets restructuring
out by Guangdong commitments about for the company to
provincial avoiding and issue shares to buy
government resolving assets ", which is
nationwide. intro-industry adopted by
Guangdong Electric competitions in Guangdong Electric
Power Development, accordance with Power Development
as the only listed regulatory Fourth Extraordinary
company of requirements on General Assembly ,
Guangdong Power June 5, has been completed
Group, is engaged in 2014 .Concrete for one year, and
the electricity contents are as related works about
business. Parts of its follows: 1, asset injection will
remaining generation Guangdong Electric be finished as well.
assets of Guangdong Power Development This work was
Power Group are is the only listed launched in May
currently not platform of 2013, and there is
included into integrated domestic currently an
Guangdong Electric generation assets. 2, inventory of related
Power Apart from assets about its
Development , as generation assets of existence defects and
most of the parts are Guangdong Electric a research solutions
still not up to the Power Development, to this disorders on
listing requirements the Guangdong the way. (2)
and some problems Yudean Group will Remaining
of them cannot be access problems in generation assets of
resolved in short remaining generation GuangdongYudean
term, thus incurring assets in terms of Group, which have a
to some extent imperfect approval good profitability
horizontal Industry process, earnings, and are up to the
competitions. cooperation listing requirements,
agreement and will be injected into
land utilization, and Guangdong Electric
will inject the Power Development
reformed assets that within the last five
are up to the listing years after the
requirements by restructuring,
acquisitions and achieving the
restructuring in the holistic listing of
last five years after domestic high-class
the completion of the generation assets in
reorganization 3, the the Guangdong
Guangdong Yudean Yudean Group. (3)
Group offers the Within five years
first refusal rights for after the completion
Guangdong Electric of the
Power Development reorganization, if
administration in there are still risk of
terms of domestic closing down and
power project unprompted
development and profitability of
asset acquisition, and power generation
if Guangdong enterprises under the
Electric Power control of the
Development give Guangdong Yudean
up the development Group or failing to
or acquisition. eliminate the defect
Generation assets of domestic power
Guangdong Yudean generation
Group, that are that enterprises, it is the
are up to the listing Guangdong Electric
requirements will Power Development
68
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
be injected in put that will decide
into Guangdong whether the
Electric Power Guangdong Yudean
Development after Group can hold such
the completion of the generation
acquisition in the companies' equity.
project.
IV. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
Investor
Sessions Type
participation ratio
Meeting Date Disclosure date Disclosure index
Name of
Announcement :Ann
ouncement of
Resolution of 2014
shareholders’ general
meeting ，
2014 Shareholders’ Annual General
13.95% May 20,2015 May 21,2015 Announcement
general meeting Meeting
No.:2015-17.
Published in China S
ecurities Daily, Secu
rities Times and http
//.www.cninfo.com.c
n.
Name of
Announcement :Ann
ouncement of
Resolution of the
first Provisional
The first provisional shareholders’ general
Provisional
shareholders’ meeting in 2015，
shareholders’ 16.10% June 30,2015 July 1,2015
General meeting in Announcement
General Meeting
2015 No.:2015-27,
Published in China S
ecurities Daily, Secu
rities Times and http
//.www.cninfo.com.c
n
Name of
Announcement :Ann
ouncement of
Resolution of the
second Provisional
The second
shareholders’ general
provisional Provisional
meeting in 2015，
shareholders’ shareholders’ 9.38% December 28,2015 December 29,2015
Announcement
General meeting in General Meeting
2015 No.:2015-58,
Published in China S
ecurities Daily, Secu
rities Times and http
//.www.cninfo.com.c
n
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √Not applicable
69
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
V. Responsibility performance of independent directors in report period
1. The attending of independent directors to board meetings and shareholders’ general meeting
The attending of independent directors
Number of Failure to
Number of
Board meetings Number of personally attend
Independent Number of spot meetings Number of
necessary to be attendances by board meetings
Directors attendances attended by absence
attended in the representative successively
Communication
reporting period twice (Yes/No)
Liu Tao 11 3 6 2 0 No
Zhang Hua 11 4 6 1 0 No
Sha Qilin 11 5 6 0 0 No
Mao Fugen 11 4 6 1 0 No
Ding Yougang 11 3 6 2 0 No
Lu Jun 11 4 6 1 0 No
Number of general meetings attended
by independent directors as non-voting 3
delegates
Notes to failure to personally attend Board Meetings Successively Twice
2.Objection of independent directors on some relevant issues
Objection of independent directors on some relevant issues
□ Yes √No
Independent directors proposed no objection against the relevant matters in the reporting period.
3. Other notes to duty performance of independent directors
Has an independent director’s advice to the Company been accepted
√Yes □No
Explanation on acceptance of or failure to accept an independent director’s advice to the Company.
In the report period, the independent directors of the Company earnestly performed the requirement assigned, The
independent directors of the Company earnestly performed the requirement assigned by laws and regulations and
Articles of Association of the Company, cared for the Company's production and business and financial perform
ance and corporate governance structure , expressed independent opinions on the Company's operation and decis
ion making and all related transactions, According to the regulation, conducting verification & giving independe
nt opinion on important issues such as company’s internal control, external guarantee performance, connected tra
nsaction and appointing or dismissing of executives, company’s management level had been improved
and definitely ensure the lawful rights and interests of most shareholders.
VI. Duty Performance of Special Committees under the Board of Directors in the Reporting Period
The board of directors of the company comprises committee of strategy, audit, budget, nomination and
remuneration and appraisal. Each professional committee has established their corresponding working rules and
put forward related professional opinions and suggestions according to their respective duties to the company
operating development, which promoted the standardized operation of the company. In 2015, the duty fulfillment
conditions of each special committee of the company's board of directors are as follows:
1.According to the relevant provisions of the China securities regulatory commission and Shenzhen stock
exchange as well as the working discipline of annual report of the board of directors audit committee, the
company’s board of directors audit committee has earnestly performed their duties and participated in all course
of the company's 2015 annual audit work. On December 28, 2015, the 5th board of directors audit committee held
its Eighth meeting, the independent boards, accounting firms and managers attended the meeting, listened to the
70
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
“report on the company’s 2015 annual financial audit work schedule report ", and communicated with the
company management and the annual report certified public accountants abut possible problems in
pre-qualification and the annual audit work. After entering the audit procedures, the audit committee kept close
communication with the company's management layer and an accounting firm. On April 7, 2016, the 6th board of
directors audit committee held its Eighth meeting. On the meeting, the committee reviewed and voted on
company's financial and accounting reports, the company's 2015 annual internal audit summary and annual
internal audit plan, “Self-Assessment Report of Internal Control of the Company”, and public accounting firms
engaged in the work of this year the company audit summary report and so on has carried on the, and formed
relevant audit opinion
2.The remuneration and appraisal committee of the board of directors audited the remuneration condition of the
directors, supervisors and senior managers disclosed in this report. The committee regarded that the payment
standard and the determination of the total amount of annual payment conformed to their position and the
company's payment management regulations; the payment conditions of the directors, supervisors and senior
managers disclosed in Annual report is real.
3. The budget committee of the Eight board held its 1st meeting on April 2, 2015 , reviewed and adopted the
“Proposal on Illustration of Budget Implementation in 2014 and Budget Preparation in 2015”.
4. The strategy committee of the board of directors did not hold meetings in 2015.
VII. Work of the supervisory Committee
Did the supervisory Committee find any risk existing in performing the supervision activities in the reporting
period
□Yes √No
The supervisory Committee has no objection against any matters under supervision in the reporting period
VIII. Assessment and incentive Mechanism for Senior executives
Performance evaluation and incentive system will be employed by senior managers on the basis of enterprise
salary management system.
IX. Internal control situations
1.Specific situations on major defects of internal control discovered during report period
□ Yes √ No
2.Self-evaluation report on internal control
Disclosure date of appraisal report on
April 30,2016
internal control
Juchao Website:（http://www.cninfo.com.cn）, Selfevaluation report of internal control
Disclosure index of appraisal report on
in 2015
internal control
Proportion of total unit assets covered by
appraisal in the total assets of the
88.85%
consolidated financial statements of the
company
Proportion of total unit incomes covered
by appraisal in the total business incomes
99.25%
of the consolidated financial statements of
the company
Standards of Defects Evaluation
Category Financial Report Non-financial Report
Qualitative criteria Qualitative criteria of evaluation towards Qualitative criteria of evaluation towards
71
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
inner control deficiency of financial report inner control deficiency of non-financial
made by company are as follows: Ⅰ, the report made by company are as follows:
inner control of financial report should be ① significant deficiency means one or
considered as “significant deficiency” if the more combinations of control deficiency
following circumstances (including but not which may result in seriously deviating
limited to) occurred: ① the ineffective from control goals. ② serious deficiency
environmental control; ② irregularities means one or more combinations of
appearing between company directors, control deficiency whose severity and
supervisors and senior executives; ③ serious financial result are less than those of
mistakes in the financial statements of the significant deficiency with possibility of
current period found by external audit but deviating company from its control
not the inner control in the process of goals. ③ common deficiency means
operating; ④ ineffective supervision of inner other control deficiencies apart from
control from directorate and inner audit significant and serious deficiencies.
institution. Ⅱ, the inner control of financial
report should be considered as “serious
deficiency” if the following circumstances
occurred: ① accounting policy chosen and
applied is not based on the GAAP; ②
anti-irregularity procedure and control
measures are not established; ③ very few
relative control measures are established or
implemented in terms of the accounting
treatment related to unconventional or
special transaction; ④ one or more
deficiencies exist in the control process of
final financial report and the authenticity,
accuracy and integrity of establishment can
not be assured reasonably. Ⅲ common
deficiency means, apart from the above
“significant deficiency” and “serious
deficiency”, other deficiencies exist in the
inner control process.
A quantitative criterion regards operating
receipt and gross value of assets as its yard
stick. ① inner control deficiency may lead to
loss related to profit statement, which is
measured by operating receipt. The amount
of misstatement in financial report resulted
from the control deficiency or its
combination is less than 0.5 percent of the
operating receipt, which could be considered
as the common deficiency. That would be Quantitative criteria of evaluation
considered as serious deficiency if the towards inner control deficiency of
amount of misstatement in financial report non-financial report made by company
resulted from the control deficiency or its are as follows: the common deficiency
combination is more than 0.5 percent but means that the direct property loss is
less than 1 percent of the operating receipt. between 100,000 (including 100,000)
Quantitative criteria And that would be regarded as significant and 30 million; the serious deficiency
deficiency if that is more than 1 percent of means that the direct property loss is
the operating receipt. ② inner control between 30 million (including 30
deficiency may lead to loss related to assets million) and 50 million; and the
management, which is measured by total significant deficiency means that the
assets. The amount of misstatement in direct property loss is more than
financial report resulted from the control 50million.
deficiency or its combination is less than 0.5
percent of the total assets, which could be
considered as the common deficiency. That
would be considered as serious deficiency if
the amount of misstatement in financial
report resulted from the control deficiency or
its combination is more than 0.5 percent but
less than 1 percent of the total assets. And
that would be regarded as significant
deficiency if that is more than 1 percent of
72
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
the total assets.
Number of major defects in financial
0
reporting（a）
Number of major defects in non financial
0
reporting (a)
Number of important defects in financial
0
reporting（a）
Number of important defects in non
0
financial reporting（a）
X. Internal Control audit report
√ Applicable □Not applicable
Review opinions in the internal control audit report
We believe that, Guangdong Electric Power Development Co., Ltd. maintained efficient internal control of financial reports in all
significant aspects according to “ Basic Standards of Corporate Internal Control” and relevant regulations on December 31, 2015.
Disclosure date of audit report
Disclosure
of internal control (full-text)
Index of audit report of
April 30,2016
internal control (full-text)
Internal audit report’s opinion Juchao Website: （http://www.cninfo.com.cn）;Audit report of internal control
Type of audit report on internal
Unqualified auditor’s report
control
Whether there is significant
No
defectin non-financial report
Has the CPAs issued a qualified auditor’s report of internal control .
□ Yes √No
Does the internal control audit report issued by the CPAs agree with the self-assessment report of the Board of
Directors
√Yes □No
73
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
X. Financial Report
AUDITORS’ REPORT
毕马威华振审字第 1601344 号
To the Shareholders of Guangdong Electric Power Development Co., Ltd.:
We have audited the accompanying financial statements of Guangdong Electric Power
Development Co., Ltd. (the “Company”), which comprise the consolidated balance sheet and
balance sheet as at 31 December 2015, the consolidated income statement and income
statement, the consolidated cash flow statement and cash flow statement, the consolidated
statement of changes in shareholders’ equity and statement of changes in shareholders’ equity
for the year then ended, and notes to the financial statements.
I. Management’s Responsibility for the Financial Statements
The Company’s management is responsible for the preparation and fair presentation of
these financial statements. This responsibility includes: (1) preparing these financial
statements in accordance with Accounting Standards for Business Enterprises issued by the
Ministry of Finance of the People’s Republic of China, and fairly presenting them; (2)
designing, implementing and maintaining internal control which is necessary to enable that
the financial statements are free from material misstatement, whether due to fraud or error.
II. Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our
audit. We conducted our audit in accordance with China Standards on Auditing for Certified
Public Accountants. Those standards require that we comply with China Code of Ethics for
Certified Public Accountants, and plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditors’
judgement, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditors
consider internal control relevant to the entity’s preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of accounting policies
used and the reasonableness of accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
74
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
AUDITORS’ REPORT (continued)
毕马威华振审字第 1601344 号
III. Opinion
In our opinion, the financial statements present fairly, in all material respects, the
consolidated financial position and financial position of the Company as at 31 December
2015, and the consolidated financial performance and financial performance and the
consolidated cash flows and cash flows of the Company for the year then ended in accordance
with the requirements of Accounting Standards for Business Enterprises issued by the
Ministry of Finance of the People’s Republic of China.
KPMG Huazhen LLP Certified Public Accountants
Registered in the People’s Republic
of China
Peng Jing
Beijing, China Chen Li Jia
28 April 2016
75
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Guangdong Electric Power Development Co., Ltd.
Consolidated balance sheet as at 31 December 2015
(Expressed in Renminbi Yuan)
Note 2015 2014
Assets
Current assets:
Cash at bank and on hand V.1 5,237,406,725 4,548,277,314
Accounts receivable V.2 2,484,683,890 2,580,733,823
Prepayments V.3 1,063,701,630 1,529,371,276
Interests receivable V.4 10,232,658 5,471,097
Dividends receivable V.5 4,000,000 -
Other receivables V.6 188,899,280 214,346,505
Inventories V.7 1,333,654,623 1,623,199,010
Other current assets V.8 638,461,972 704,977,094
Total current assets 10,961,040,778 11,206,376,119
---------------------- ----------------------
76
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Guangdong Electric Power Development Co., Ltd.
Consolidated balance sheet as at 31 December 2015 (continued)
(Expressed in Renminbi Yuan)
Note 2015 2014
Assets (continued)
Non-current assets:
Available-for-sale financial assets V.9 1,094,350,488 997,082,335
Long-term receivables V.10 128,640,631 121,334,809
Long-term equity investments V.11 5,924,410,159 6,604,709,646
Investment properties V.12 9,567,835 10,203,433
Fixed assets V.13 44,330,167,621 39,164,300,297
Construction in progress V.14 5,613,398,840 6,349,045,387
Construction materials V.15 1,673,547 6,791,093
Disposal of fixed assets V.16 3,475,384 1,493,296
Intangible assets V.17 1,663,430,069 1,487,859,824
Goodwill V.18 27,486,780 2,449,886
Long-term deferred expenses V.19 28,843,225 31,000,707
Deferred tax assets V.20 116,237,351 60,234,315
Other non-current assets V.21 2,017,211,435 3,041,944,705
Total non-current assets 60,958,893,365 57,878,449,733
---------------------- ----------------------
Total assets 71,919,934,143 69,084,825,852
77
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Guangdong Electric Power Development Co., Ltd.
Consolidated balance sheet as at 31 December 2015 (continued)
(Expressed in Renminbi Yuan)
Note 2015 2014
Liabilities and shareholders’ equity
Current liabilities:
Short-term loans V.22 6,288,060,000 5,721,000,000
Bills payable V.23 593,971,146 321,711,616
Accounts payable V.24 1,739,227,291 1,913,294,877
Advances from customers V.25 244,798 179,708
Employee benefits payable V.26 123,477,922 105,824,243
Taxes payable V.27 404,729,354 462,231,344
Interests payable V.28 105,492,698 214,956,543
Dividends payable V.29 8,640,994 7,918,730
Other payables V.30 3,536,133,625 2,577,102,293
Non-current liabilities due 1,850,970,652 4,483,962,344
within one year V.31
Provisions V.32 700,000 14,000,000
Other current liabilities V.33 1,711,348,630 808,630,228
Total current liabilities 16,362,997,110 16,630,811,926
---------------------- ----------------------
Non-current liabilities:
Long-term loans V.34 21,303,229,910 20,614,916,646
Debentures payable V.35 1,196,029,762 1,195,076,905
Long-term payables V.36 2,495,443,111 2,649,435,371
Long-term employee 85,827,126 53,839,983
benefits payable V.37
Special payables V.38 24,711,974 16,192,269
Deferred tax liabilities V.20 87,243,028 42,136,023
Deferred income V.39 103,256,725 98,197,020
Other non-current liabilities V.40 39,000,000 -
Total non-current liabilities 25,334,741,636 24,669,794,217
---------------------- ----------------------
Total liabilities 41,697,738,746 41,300,606,143
---------------------- ----------------------
78
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Guangdong Electric Power Development Co., Ltd.
Consolidated balance sheet as at 31 December 2015 (continued)
(Expressed in Renminbi Yuan)
Note 2015 2014
Liabilities and shareholders’
equity (continued)
Shareholders’ equity:
Share capital V.41 5,250,283,986 4,375,236,655
Capital reserve V.42 5,007,077,158 4,998,433,067
Other comprehensive income V.43 245,708,715 172,496,403
Surplus reserve V.44 5,812,191,775 4,810,903,365
Retained earnings V.45 7,439,335,347 6,952,985,107
Total equity attributable to 23,754,596,981 21,310,054,597
shareholders of the Company
Non-controlling interests 6,467,598,416 6,474,165,112
Total shareholders’ equity 30,222,195,397 27,784,219,709
---------------------- ----------------------
Total liabilities and shareholders’ equity 71,919,934,143 69,084,825,852
These financial statements were approved by the Board of Directors of the Company on 28
April 2016.
Zhuoxian Li Xiaoqing Li Jingdong Qin (Company stamp)
Legal Representative The person in charge The head of the
of accounting affairs accounting department
(Signature and stamp) (Signature and stamp) (Signature and stamp)
79
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Guangdong Electric Power Development Co., Ltd.
Balance sheet as at 31 December 2015
(Expressed in Renminbi Yuan)
Note 2015 2014
Assets
Current assets:
Cash at bank and on hand 682,950,639 468,233,799
Accounts receivable XV.1 134,539,664 233,268,283
Prepayments 115,303,150 142,923,390
Interests receivable 1,818,442 1,786,468
Dividends receivable 21,512,934 -
Other receivables XV.2 318,483,048 360,853,242
Inventories 141,559,999 110,192,735
Other current assets 10,508,362 85,145,999
Total current assets 1,426,676,238 1,402,403,916
---------------------- ----------------------
Non-current assets:
Available-for-sale financial assets 1,094,350,488 997,082,335
Long-term receivables 100,000,000 550,000,000
Long-term equity investments XV.3 22,588,550,554 21,651,878,481
Investment properties 9,567,835 10,203,433
Fixed assets 1,217,618,892 1,269,105,391
Construction in progress 26,156,889 43,403,794
Intangible assets 95,876,179 99,372,754
Other non-current assets 653,004,000 90,000,000
Total non-current assets 25,785,124,837 24,711,046,188
---------------------- ----------------------
Total assets 27,211,801,075 26,113,450,104
80
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Guangdong Electric Power Development Co., Ltd.
Balance sheet as at 31 December 2015 (continued)
(Expressed in Renminbi Yuan)
2015 2014
Liabilities and shareholders’ equity
Current liabilities:
Short-term loans 900,000,000 1,050,000,000
Accounts payable 292,714,747 92,264,357
Employee benefits payable 30,063,156 25,676,736
Taxes payable 21,266,249 46,543,086
Interests payable 52,100,633 141,345,087
Dividends payable 8,640,994 7,918,730
Other payables 112,031,125 143,109,145
Non-current liabilities due within one - 1,999,548,864
year
Other current liabilities 1,509,599,589 507,146,666
Total current liabilities 2,926,416,493 4,013,552,671
---------------------- ----------------------
Non-current liabilities:
Long-term loans 1,500,000,000 1,500,000,000
Debentures payable 1,196,029,762 1,195,076,905
Long-term employee benefits payable 24,192,962 11,640,351
Special payables - 11,297,686
Deferred tax liabilities 54,572,001 32,839,813
Deferred income 52,918,949 43,105,866
Total non-current liabilities 2,827,713,674 2,793,960,621
---------------------- ----------------------
Total liabilities 5,754,130,167 6,807,513,292
---------------------- ----------------------
81
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Guangdong Electric Power Development Co., Ltd.
Balance sheet as at 31 December 2015 (continued)
(Expressed in Renminbi Yuan)
2015 2014
Liabilities and shareholders’ equity
(continued)
Shareholders’ equity:：
Share capital 5,250,283,986 4,375,236,655
Capital reserve 5,609,821,843 5,607,138,564
Other comprehensive income 245,708,715 172,496,403
Surplus reserve 5,812,191,775 4,810,903,365
Retained earnings 4,539,664,589 4,340,161,825
Total shareholders’ equity 21,457,670,908 19,305,936,812
---------------------- ----------------------
Total liabilities and shareholders’ equity 27,211,801,075 26,113,450,104
These financial statements were approved by the Board of Directors of the Company on 28
April 2016.
Zhuoxian Li Xiaoqing Li Jingdong Qin (Company stamp)
Legal Representative The person in charge The head of the
of accounting affairs accounting department
(Signature and stamp) (Signature and stamp) (Signature and stamp)
82
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Guangdong Electric Power Development Co., Ltd.
Consolidated income statement for the year ended 31 December 2015
(Expressed in Renminbi Yuan)
Note 2015 2014
I. Operating income V.46 25,723,810,816 29,046,568,685
II. Less: Operating costs V.46 (18,053,754,759) (20,940,100,214)
Business taxes and surcharges V.47 (230,127,055) (204,827,418)
Selling and distribution expenses (1,839,453) (4,540,907)
General and administrative (921,738,681) (902,594,273)
expenses V.48
Financial expenses V.49 (1,581,536,918) (1,805,142,563)
Impairment losses V.50 (22,907,440) (160,135,462)
Investment income V.51 801,398,115 612,109,129
Including: Income from
investment in associates and
jointly controlled enterprises 485,710,643 584,712,096
III. Operating profit (“( )” for loss) 5,713,304,625 5,641,336,977
Add: Non-operating income V.52 98,430,653 40,112,173
Including: Income from disposal 2,053,224 3,244,404
of non-current assets
Less: Non-operating expenses V.53 (18,607,598) (107,243,577)
Including: Loss from disposal (10,075,720) (60,929,606)
of non-current assets
IV. Profit before income tax (“( )” for total 5,793,127,680 5,574,205,573
loss)
Less: Income tax expense V.54 (1,162,984,273) (1,245,455,584)
V.Net profit for the year (“( )” for net loss) 4,630,143,407 4,328,749,989
Attributable to:
Shareholders of the Company 3,237,733,312 3,003,977,134
Minority interests 1,392,410,095 1,324,772,855
83
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Guangdong Electric Power Development Co., Ltd.
Consolidated income statement for the year ended 31 December 2015 (continued)
(Expressed in Renminbi Yuan)
Note 2015 2014
V.Net profit (“( )” for net loss) 4,630,143,407 4,328,749,989
---------------------- ----------------------
VI. Other comprehensive income after tax,
net V.43
Attributable to owners of the Company 73,212,312 115,475,888
Other comprehensive income
subsequently reclassified
to profit and loss
1. Share in investees’ other
comprehensive
income subsequently
reclassified
to profit and loss under
equity method 261,197 267,940
2. Profit and loss arising from
changes in fair value of
available-for-sale
financial assets 72,951,115 115,207,948
Attributable to minority interests - -
---------------------- ----------------------
84
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Guangdong Electric Power Development Co., Ltd.
Consolidated income statement for the year ended 31 December 2015 (continued)
(Expressed in Renminbi Yuan)
Note 2015 2014
VII. Total comprehensive income 4,703,355,719 4,444,225,877
Attributable to:
Shareholders of the Company 3,310,945,624 3,119,453,022
Minority interests 1,392,410,095 1,324,772,855
VIII. Earnings per share
(1) Basic earnings per share V.55 0.62 0.57
(2) Diluted earnings per share V.55 0.62 0.57
These financial statements were approved by the Board of Directors of the Company on 28
April 2016.
Zhuoxian Li Xiaoqing Li Jingdong Qin (Company stamp)
Legal Representative The person in charge The head of the
of accounting affairs accounting department
(Signature and stamp) (Signature and stamp) (Signature and stamp)
85
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Guangdong Electric Power Development Co., Ltd.
Income statement for the year ended 31 December 2015
(Expressed in Renminbi Yuan)
Note 2015 年 2014 年
I. Operating income XV.4 2,165,343,994 2,648,266,587
Less: Operating costs XV.4 (1,618,676,768) (2,039,143,268)
Business taxes and surcharges (18,406,421) (16,117,288)
Selling and distribution expenses (39,868) (488,026)
General and administrative (161,485,630) (146,406,583)
expenses
Financial expenses (286,215,799) (361,030,388)
Reversal of Impairment losses - 1,502,098
Investment income XV.5 2,907,200,029 2,802,552,306
Including: Income from
investment
in associates and jointly
controlled enterprises 480,914,756 582,033,705
II. Operating profit (“( )” for loss) 2,987,719,537 2,889,135,438
Add: Non-operating income 23,817,223 6,618,483
Including: Income from disposal - 910,256
of non-current assets
Less: Non-operating expenses (8,385,896) (8,034,321)
Including: Loss from disposal of (7,426,110) (1,899,358)
non-current assets
III. Profit before income tax 3,003,150,864 2,887,719,600
(“( )” for total loss)
Less: Income tax expense (52,265,028) (26,895,571)
IV.Net profit (“( )” for net loss) 2,950,885,836 2,860,824,029
---------------------- ----------------------
86
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Guangdong Electric Power Development Co., Ltd.
Income statement for the year ended 31 December 2015 (continued)
(Expressed in Renminbi Yuan)
Note 2015 2014
V. Other comprehensive income 73,212,312 115,475,888
after tax, net V.43
Other comprehensive income
subsequently reclassified
to profit and loss
1. Shares in investees’ other
comprehensive
income subsequently
reclassified
to profit and loss under
equity method 261,197 267,940
2. Profit and loss arising from
changes in fair value of
available-for-sale
financial assets 72,951,115 115,207,948
---------------------- ----------------------
VI. Total comprehensive income 3,024,098,148 2,976,299,917
These financial statements were approved by the Board of Directors of the Company on 28
April 2016.
Zhuoxian Li Xiaoqing Li Jingdong Qin (Company stamp)
Legal Representative The person in charge The head of the
of accounting affairs accounting department
(Signature and stamp) (Signature and stamp) (Signature and stamp)
87
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Guangdong Electric Power Development Co., Ltd.
Consolidated cash flow statement for the year ended 31 December 2015
(Expressed in Renminbi Yuan)
Note 2015 2014
I. Cash flows from operating
activities:
Cash received from sale of goods 30,520,140,122 34,681,656,661
and rendering of services
Refund of taxes 14,443,818 9,410,754
Cash received relating to other 137,082,635 147,384,790
operating activities V.57(1)
Sub-total of cash inflows 30,671,666,575 34,838,452,205
--------------------- ----------------------
Cash paid for goods and services (14,057,756,199) (20,417,380,860)
Cash paid to and for employees (1,808,136,239) (1,763,643,034)
Cash paid for all types of taxes (3,896,301,670) (3,778,941,928)
Cash paid relating to other (467,035,322) (485,691,739)
operating activities V.57(2)
Sub-total of cash outflows (20,229,229,430) (26,445,657,561)
--------------------- ----------------------
Net cash inflow from operating 10,442,437,145 8,392,794,644
activities V.58(1)(a)
--------------------- ----------------------
88
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Guangdong Electric Power Development Co., Ltd.
Consolidated cash flow statement for the year ended 31 December 2015 (continued)
(Expressed in Renminbi Yuan)
Note 2015 年 2014 年
II. Cash flows from investing activities:
Cash received from disposal of 448,768,620 95,095,391
investments
Cash received from return on 612,292,965 585,827,640
investments
Net cash received from disposal of
fixed assets, intangible assets and
other long-term assets 4,049,408 19,125,502
Net cash received from acquisition
of subsidiaries and other
operating units 52,028,777 -
Sub-total of cash inflows 1,117,139,770 700,048,533
---------------------- ----------------------
Cash paid for acquisition of fixed
assets, intangible assets and other
long-term assets (5,363,878,048) (6,657,922,382)
Cash paid for acquisition of - (136,586,100)
investments
Cash paid for acquisition of (92,453,008)
minority interests -
Sub-total of cash outflows (5,456,331,056) (6,794,508,482)
---------------------- ----------------------
Net cash outflow from investing (4,339,191,286) (6,094,459,949)
activities
---------------------- ----------------------
89
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Guangdong Electric Power Development Co., Ltd.
Consolidated cash flow statement for the year ended 31 December 2015 (continued)
(Expressed in Renminbi Yuan)
2015 2014
III. Cash flows from financing activities:
Cash received from investors 39,000,000 30,000,000
Including: Cash received from
minority shareholders of
subsidiaries 39,000,000 30,000,000
Cash received from borrowings 21,628,567,512 22,680,701,543
Cash received from issuance of 1,697,712,500 797,612,500
debentures and short-term
financing notes
Cash received from finance leases - 1,265,567,825
resulting from sale and
leaseback
Cash received relating to other 1,984 51,619
financing activities V.57(3)
Sub-total of cash inflows 23,365,281,996 24,773,933,487
-------------------- -------------------
Cash repayments of borrowings (24,313,422,024) (21,710,793,905)
Cash paid for dividends, profit (4,028,946,933) (4,185,125,648)
distributions or interests
Including: Dividends and profit paid (1,250,162,971) (1,418,364,545)
to minority shareholders of
subsidiaries
Cash paid for finance leases resulting (376,629,487) (1,025,382,491)
from sale and leaseback
Cash paid for minority shareholders (50,400,000) -
for capital reduction of subsidiaries
Sub-total of cash outflows (28,769,398,444) (26,921,302,044)
-------------------- -------------------
Net cash outflow from financing (5,404,116,448) (2,147,368,557)
activities
-------------------- -------------------
IV. Effect of foreign exchange rate changes
on cash and cash equivalents - -
-------------------- -------------------
90
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Guangdong Electric Power Development Co., Ltd.
Consolidated cash flow statement for the year ended 31 December 2015 (continued)
(Expressed in Renminbi Yuan)
Note 2015 2014
V. Net increase in cash and cash 699,129,411 150,966,138
equivalents (“( )” for net
decrease) V.58(1)(b)
Add: cash and cash equivalents at
the beginning of the year 4,528,277,314 4,377,311,176
VI. Cash and cash equivalents at the 5,227,406,725 4,528,277,314
end of the year V.58(2)
These financial statements were approved by the Board of Directors of the Company on 28
April 2016.
Zhuoxian Li Xiaoqing Li Jingdong Qin (Company stamp)
Legal Representative The person in charge The head of the
of accounting affairs accounting department
(Signature and stamp) (Signature and stamp) (Signature and stamp)
91
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Guangdong Electric Power Development Co., Ltd.
Cash flow statement for the year ended 31 December 2015
(Expressed in Renminbi Yuan)
2015 2014
I. Cash flows from operating activities:
Cash received from sale of goods and 2,626,251,815 3,112,939,588
rendering of services
Cash received relating to other 28,738,089 37,258,836
operating activities
Sub-total of cash inflows 2,654,989,904 3,150,198,424
---------------------- ----------------------
Cash paid for goods and services (1,153,128,204) (2,154,038,591)
Cash paid to and for employees (386,460,091) (391,659,259)
Cash paid for all types of taxes (283,379,618) (190,679,628)
Cash paid relating to other operating (64,921,710) (59,025,302)
activities
Sub-total of cash outflows (1,887,889,623) (2,795,402,780)
---------------------- ----------------------
Net cash inflow from operating 767,100,281 354,795,644
activities
---------------------- ----------------------
92
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Guangdong Electric Power Development Co., Ltd.
Cash flow statement for the year ended 31 December 2015 (continued)
(Expressed in Renminbi Yuan)
2015 2014
II. Cash flows from investing activities:
Cash received from disposal of 1,368,368,620 307,274,041
investments
Cash received from return on 2,776,757,775 2,765,772,458
investments
Net cash received from disposal of
fixed assets, intangible assets and
other long-term assets 180,482 2,609,849
Sub-total of cash inflows 4,145,306,877 3,075,656,348
---------------------- ----------------------
Cash paid for acquisition of fixed
assets, intangible assets and other
long-term assets (124,175,374) (196,868,365)
Cash paid for acquisition of (2,111,357,008) (1,326,586,100)
investments
Sub-total of cash outflows (2,235,532,382) (1,523,454,465)
---------------------- ----------------------
Net cash inflow from investing 1,909,774,495 1,552,201,883
activities
---------------------- ----------------------
93
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Guangdong Electric Power Development Co., Ltd.
Cash flow statement for the year ended 31 December 2015 (continued)
(Expressed in Renminbi Yuan)
2015 2014
III. Cash flows from financing activities:
Cash received from borrowings 2,550,000,000 1,750,000,000
Cash received from issuance of 1,498,312,500 498,512,500
debentures and short-term financing
notes
Cash received relating to other 1,984 51,619
financing activities
Sub-total of cash inflows 4,048,314,484 2,248,564,119
---------------------- ----------------------
Cash repayments of borrowings (5,199,999,300) (2,789,000,000)
Cash paid for dividends or interests (1,250,473,122) (1,254,804,700)
Sub-total of cash outflows (6,450,472,422) (4,043,804,700)
---------------------- ----------------------
Net cash outflow from financing (2,402,157,938) (1,795,240,581)
activities
---------------------- ----------------------
IV. Effect of foreign exchange rate
changes
on cash and cash equivalents - -
---------------------- ----------------------
94
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Guangdong Electric Power Development Co., Ltd.
Cash flow statement for the year ended 31 December 2015 (continued)
(Expressed in Renminbi Yuan)
2015 2014
V.Net increase in cash and cash equivalents
(“( )” for net decrease) 274,716,838 111,756,946
Add: cash and cash equivalents at the 408,233,801 296,476,855
beginning of the year
VI. Cash and cash equivalents at the end 682,950,639 408,233,801
of the year
These financial statements were approved by the Board of Directors of the Company on 28
April 2016.
Zhuoxian Li Xiaoqing Li Jingdong Qin (Company stamp)
Legal Representative The person in charge The head of the
of accounting affairs accounting department
(Signature and stamp) (Signature and stamp) (Signature and stamp)
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Guangdong Electric Power Development Co., Ltd.
Consolidated statement of changes in shareholders’ equity for the year ended 31 December 2015
(Expressed in Renminbi Yuan)
Note Attributable to shareholders of the Company
Share capital Capital reserve Other comprehensive Surplus reserve Retained earnings Minority interests Total
income
I. Balance at the beginning of the year 4,375,236,655 4,998,433,067 172,496,403 4,810,903,365 6,952,985,107 6,474,165,112 27,784,219,709
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
II. Changes in equity for the year
(“( )” for decreases)
(1) Total comprehensive income V.43 - - 73,212,312 - 3,237,733,312 1,392,410,095 4,703,355,719
(2) Shareholders capital reduction - - - - - (50,400,000) (50,400,000)
(3) Appropriation of profit V.45 - - - - - - -
1. Appropriation for surplus
reserve - - - 1,001,288,410 (1,001,288,410) - -
2. Distribution to shareholders - -
- in cash - - - - (875,047,331) (1,250,162,971) (2,125,210,302)
- in share 875,047,331 - - - (875,047,331) - -
(4) Share of equity in associates
based on shareholding V.42 - 2,681,295 - - - - 2,681,295
(5) Increase in capital reserve resulting from
acquisition of minority interests VII.2 - 5,960,812 - - - (98,413,820) (92,453,008)
(6) Others - 1,984 - - - - 1,984
Sub-total of (1) to (6) 875,047,331 8,644,091 73,212,312 1,001,288,410 486,350,240 (6,566,696) 2,437,975,688
--------------- ---------------- --------------- --------------- --------------- --------------- ---------------
III. Balance at the end of the year 5,250,283,986 5,007,077,158 245,708,715 5,812,191,775 7,439,335,347 6,467,598,416 30,222,195,397
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Guangdong Electric Power Development Co., Ltd.
Consolidated statement of changes in shareholders’ equity for the year ended 31 December 2014 (continued)
(Expressed in Renminbi Yuan)
Note Attributable to shareholders of the Company
Share capital Capital reserve Other comprehensive Surplus reserve Retained earnings Minority interests Total
income
I. Balance at the beginning of the year 4,375,236,655 4,987,698,211 57,020,515 4,203,571,276 5,431,387,393 6,537,756,802 25,592,670,852
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
II. Changes in equity for the year
(“( )” for decreases)
(1) Total comprehensive income - - 115,475,888 - 3,003,977,134 1,324,772,855 4,444,225,877
(2) Shareholders’ contribution - - - - - 30,000,000 30,000,000
(3) Appropriation of profit V.45 - - - - - - -
1. Appropriation for surplus
Reserve - - - 607,332,089 (607,332,089) - -
2. Distribution to shareholders - - - - (875,047,331) (1,418,364,545) (2,293,411,876)
(4) Share of equity in associates
based on shareholding - 10,683,237 - - - - 10,683,237
(5) Acquisition of minority interests - 51,619 - - - - 51,619
Sub-total of (1) to (5) - 10,734,856 115,475,888 607,332,089 1,521,597,714 (63,591,690) 2,191,548,857
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
III. Balance at the end of the year 4,375,236,655 4,998,433,067 172,496,403 4,810,903,365 6,952,985,107 6,474,165,112 27,784,219,709
Zhuoxian Li Xiaoqing Li Jingdong Qin (Company stamp)
Legal The person in The head of the
Representative charge of accounting accounting
affairs department
(Signature and (Signature and (Signature and
stamp) stamp) stamp)
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Guangdong Electric Power Development Co., Ltd.
Statement of changes in shareholders’ equity for the year ended 31 December 2015
(Expressed in Renminbi Yuan)
Note Share capital Capital reserve Other Surplus reserve Retained earnings Total
comprehensive
income
I. Balance at the beginning of the
year 4,375,236,655 5,607,138,564 172,496,403 4,810,903,365 4,340,161,825 19,305,936,812
II. Changes in equity for the year
(“( )” for
decreases)
(1) Total comprehensive
income - - 73,212,312 - 2,950,885,836 3,024,098,148
(2) Share of equity in
investees based on
shareholding - 2,681,295 - - - 2,681,295
Others - 1,984 - - - 1,984
(3) Appropriation of profit V.45
1. Appropriation for
surplus
Reserve - - - 1,001,288,410 (1,001,288,410) -
2. Distribution to
shareholders
- in cash - - - - (875,047,331) (875,047,331)
- in share 875,047,331 - - - (875,047,331) -
III. Balance at the end of the
year 5,250,283,986 5,609,821,843 245,708,715 5,812,191,775 4,539,664,589 21,457,670,908
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Guangdong Electric Power Development Co., Ltd.
Statement of changes in shareholders’ equity for the year ended 31 December 2014 (continued)
(Expressed in Renminbi Yuan)
Note Share capital Capital reserve Other Surplus reserve Retained earnings Total
comprehensive
income
I. Balance at the beginning of the
year 4,375,236,655 5,596,404,133 57,020,515 4,203,571,276 2,961,717,216 17,193,949,795
II. Changes in equity for the year
(“( )” for
decreases)
(1) Total comprehensive
income - - 115,475,888 - 2,860,824,029 2,976,299,917
(2) Share of equity in
investees based on
shareholding - 10,682,812 - - - 10,682,812
Others - 51,619 - - - 51,619
(3) Appropriation of profit V.45
1. Appropriation for
surplus
Reserve - - - 607,332,089 (607,332,089) -
2. Distribution to shar
eholders - - - - (875,047,331) (875,047,331)
III. Balance at the end of the
year 4,375,236,655 5,607,138,564 172,496,403 4,810,903,365 4,340,161,825 19,305,936,812
These financial statements were approved by the Board of Directors of the Company on 28 April 2016.
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Zhuoxian Li Xiaoqing Li Jingdong Qin (Company stamp)
Legal Representative The person in charge The head of the
of accounting affairs accounting department
(Signature and stamp) (Signature and stamp) (Signature and stamp)
100
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Guangdong Electric Power Development Co., Ltd.
Notes to the financial statements
(Expressed in Renminbi Yuan, unless otherwise indicated)
I. Company status
Guangdong Electric Power Development Co., Ltd. (the “Company”) is a limited
liability company founded in Guangzhou City, Guangdong Province with
headquarter located in Guangzhou City. The Company’s parent company is
Guangdong Province Yudean Group Co., Ltd. (“Yudean”, formerly Guangdong
Province Yudean Assets Management Co., Ltd.) and its ultimate holding company is
the State-owned Assets Supervision and Administration Commission of the People’s
Government of Guangdong Province.
The Company and its subsidiaries (the “Group”) are principally engaged in the
businesses of developing and operating electric power plants in Guangdong
Province, the PRC. For the information of subsidiaries of the Company, please refer
to Note VII.1.
For new subsidiaries of the Group founded during the reporting period, please refer
to Note VI.
II. Basis of preparation
As at 31 December 2015, the Group’s current liabilities exceeded its current assets
by RMB 5.402 billion. The Group is committed to a capital expenditure of RMB
3.137 billion in the coming year. As such, it is exposed to liquidity risk to some
extent.
The Company’s management has taken the following measures to ensure that
sufficient operating funds are available to meet its operating needs in the coming 12
months. Therefore, the financial statements have been prepared on the basis of going
concern.
(a) The Group’s profit has continued to increase after its generator sets have
successively launched into production in recent years. Management expects
stable cash inflows from operating activities in the future; and
(b) As at 31 December 2015, the Group had credit facilities of approximately
RMB 27.049 billion provided by banks, which was contracted for without
conditions.
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
III. Significant accounting policies and accounting estimates
1 Statement of compliance
The financial statements have been prepared in accordance with the requirements of
Accounting Standards for Business Enterprises issued by the Ministry of Finance
(“MOF”) of the People’s Republic of China (“PRC”). These financial statements
present truly and completely the consolidated financial position and financial
position of the Company as at 31 December 2015, and the consolidated financial
performance and financial performance and the consolidated cash flows and cash
flows of the Company for the year then ended.
These financial statements also comply with the disclosure requirements of
“Regulation on the Preparation of Information Disclosures of Companies Issuing
Public Shares, No. 15: General Requirements for Financial Reports” as revised by
the China Securities Regulatory Commission (“CSRC”) in 2014.
2 Accounting period
The accounting year of the Group is from 1 January to 31 December.
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.
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5 Accounting treatments for a business combination involving enterprises under and
not under common control
(1) Business combinations involving enterprises under common control
A business combination involving enterprises under common control is a business
combination in which all of the combining enterprises are ultimately controlled by
the same party or parties both before and after the business combination, and that
control is not transitory. The assets and liabilities obtained are measured at the
carrying amounts as recorded by the enterprise being combined at the combination
date. The difference between the carrying amount of the net assets obtained and the
carrying amount of consideration paid for the combination (or the total par value of
shares issued) is adjusted to share premium (or capital premium) in the capital
reserve. If the balance of share premium (or capital premium) is insufficient, any
excess is adjusted to retained earnings. Any costs directly attributable to the
combination are recognised in profit or loss for the current period when occurred.
The combination date is the date on which one combining enterprise effectively
obtains control of the other combining enterprises.
(2) Business combinations not involving enterprises under common control
A business combination involving enterprises not under common control is a
business combination in which all of the combining enterprises are not ultimately
controlled by the same party or parties both before and after the business
combination. Where 1) the aggregate of the fair value at the acquisition date of assets
transferred (including the acquirer’s previously held equity interest in the acquiree),
liabilities incurred or assumed, and equity securities issued by the acquirer, in
exchange for control of the acquiree, exceeds 2) the acquirer’s interest in the fair
value at the acquisition date of the acquiree’s identifiable net assets, the difference is
recognised as goodwill (see Note III.18). Where 1) is less than 2), the difference is
recognised in profit or loss for the current period. 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. Other
acquisition-related costs arising from the business combination are recognised as
expenses in the periods in which the costs are incurred. The difference between the
fair value and the carrying amount of the assets transferred is recognised in profit or
loss. The acquiree’s identifiable assets, liabilities and contingent liabilities, if
satisfying the recognition criteria, are recognised by the Group at their fair value at
the acquisition date. The acquisition date is the date on which the acquirer effectively
obtains control of the acquiree.
For a business combination not involving enterprises under common control and
achieved in stages, the Group remeasures its previously-held equity interest in the
acquiree to its fair value at the acquisition date and recognises any resulting
difference between the fair value and the carrying amount as investment income for
the current period. In addition, any amount recognised in other comprehensive
income that can be reclassified to profit or loss, in prior reporting periods relating to
the previously-held equity interest, and any other changes in the owners’ equity
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
under equity accounting (see Note III. 12(2)(b)), are transferred to investment
income in the period in which the acquisition occurs.
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
6 Consolidated financial statements
(1) General principle
The scope of consolidated financial statements is based on control and the
consolidated financial statements comprise the Company and its subsidiaries. Control
is the power to govern the financial and operating policies of the investee so as to
obtain benefits from its operating activities, and the power to influence its investment
return. In accessing control, the Group only takes into account the substantive rights
relevant to the investee, including those entitled to the Group and other parties. The
financial position, financial performance and cash flows of subsidiaries are included
in the consolidated financial statements from the date that control commences until
the date that control ceases.
Non-controlling interests are presented separately in the consolidated balance sheet
within shareholders’ equity. Net profit or loss attributable to non-controlling
shareholders is presented separately in the consolidated income statement below the
net profit line item. Comprehensive income attributable to non-controlling
shareholders is presented separately in the consolidated income statement below the
total comprehensive income line item.
When the amount of loss for the current period attributable to the non-controlling
shareholders of a subsidiary exceeds the non-controlling shareholders’ portion of the
opening balance of owners’ equity of the subsidiary, the excess is allocated against
the non-controlling interests.
When the accounting period or accounting policies of a subsidiary are different from
those of the Company, the Company makes necessary adjustments to the financial
statements of the subsidiary based on the Company’s own accounting period or
accounting policies. Intra-group balances and transactions, and any unrealised profit
or loss arising from intra-group transactions, are eliminated in preparing the
consolidated financial statements. Unrealised losses resulting from intra-group
transactions are eliminated in the same way as unrealised gains, but only to the extent
that there is no evidence of impairment.
(2) Acquisition of subsidiaries through business combinations
Where a subsidiary was acquired during the reporting period, through a business
combination involving enterprises under common control, the financial statements of
the subsidiary are included in the consolidated financial statements as if the
combination had occurred at the date that the ultimate controlling party first obtained
control. The opening balances and the comparative figures of the consolidated
financial statements are also restated.
Where a subsidiary was acquired during the reporting period, through a business
combination involving enterprises not under common control, the identifiable assets
and liabilities of the acquired subsidiaries are included in the scope of consolidation
from the date that control commences, based on the fair value of those identifiable
assets and liabilities at the acquisition date.
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(3) Disposal of subsidiaries
When the Group loses control of a subsidiary due to the disposal of a portion of an
equity investment, the Group derecognises assets, liabilities, non-controlling interests
and other related items in owners’ equity in relation to that subsidiary. The remaining
equity investment is remeasured at its fair value at the date when control is lost. Any
gains or losses therefor incurred are recognised as investment income for the current
period when control is lost.
When the disposal of a long-term equity investment in a subsidiary is achieved
through multiple deals in stages to the extent that the control of the subsidiary is lost,
apply the following criteria to determine whether these deals can be defined as a
package deal:
- these deals are concluded simultaneously or taking into account the inter-relations
of each deal;
- only when all the deals are combined can complete business results be achieved;
- the existence of a deal is dependent on the existence of at least one other deal;
- a deal is uneconomical when considered separately, but economical when
considered in combination with other deals.
If the deals do not satisfy the above criteria, deals before the loss of control of will be
accounted for based on the accounting policy set out for the disposal of a portion of
an equity investment in an subsidiary when the Group still has control (see Note III.
6(4)).
If the deals satisfy the above criteria, the deals will be accounted for as the disposal
of a subsidiary where control is lost. The difference between the amount of
consideration received from each deal and the share in the carrying amount of net
assets in the subsidiary immediately before the loss of control is recognised in other
comprehensive income in the consolidated financial statements and transferred to
profit and loss for the current period when control is lost.
(4) Changes in non-controlling interests
Where the Company acquires a non-controlling interest from a subsidiary’s
non-controlling shareholders or disposes of a portion of an interest in a subsidiary
without a change in control, the difference between the amount by which the
non-controlling interests are adjusted and the amount of the consideration paid or
received is adjusted to the capital reserve (share premium) in the consolidated
balance sheet. If the credit balance of capital reserve (share premium) is insufficient,
any excess is adjusted to retained earnings.
7 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.
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8 Foreign currency transactions and translation of financial statements denominated in
foreign currencies
When the Group receives capital in foreign currencies from investors, the capital is
translated to Renminbi at the spot exchange rate at the date of the receipt. Other
foreign currency transactions are, on initial recognition, translated to Renminbi at the
spot exchange rates on the dates of the transactions.
Monetary items denominated in foreign currencies are translated to Renminbi at the
spot exchange rate at the balance sheet date. The resulting exchange differences,
except for those arising from the principal and interest of specific foreign currency
borrowings for the purpose of acquisition and construction of qualifying assets (see
Note III.16), are recognised in profit or loss. Non-monetary items denominated in
foreign currencies that are measured at historical cost are translated to Renminbi
using the foreign exchange rate at the transaction date.
9 Financial instruments
Financial instruments include cash at bank and on hand, receivables, equity securities
other than long-term equity investments (see Note III.12), payables, loans and
borrowings, debentures payable and share capital.
(1) Recognition and measurement of financial assets and financial liabilities
A financial asset or financial liability is recognised in the balance sheet when the
Group becomes a party to the contractual provisions of a financial instrument.
The Group classifies financial assets and liabilities into different categories at initial
recognition based on the purpose of acquiring assets or assuming liabilities: financial
assets and financial liabilities at fair value through profit or loss, loans and
receivables, held-to-maturity investments, available-for-sale financial assets and
other financial liabilities.
During the year, the Group’s financial assets include receivables and
available-for-sale financial assets. The Group’s financial liabilities are mainly other
financial liabilities, including payables, loans and borrowings, and debentures
payable. Payables include accounts payable, other payables, bills payable and
long-term payables.
Financial assets and financial liabilities are measured initially at fair value.
Transaction costs attributable to receivables and available-for-sale financial assets
and liabilities are included in their initial costs. Subsequent to initial recognition,
financial assets and liabilities are measured as follows:
- Receivables
Receivables are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market.
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Subsequent to initial recognition, receivables are measured at amortised cost using
the effective interest method.
- Available-for-sale financial assets
Available-for-sale financial assets include non-derivative financial assets that are
designated upon initial recognition as available for sale and other financial assets
which do not fall into any of the above categories.
Available-for-sale investments in equity instruments whose fair value cannot be
measured reliably are measured at cost subsequent to initial recognition. Other
available-for-sale financial assets are measured at fair value subsequent to initial
recognition and changes therein, except for impairment losses and foreign
exchange gains and losses from monetary financial assets which are recognised
directly in profit or loss, are recognised as other comprehensive income. When an
investment is derecognised, the cumulative gain or loss is reclassified from equity
to profit or loss. Dividend income from the available-for-sale equity instruments is
recognised in profit or loss when the investee declares the dividends. Interest on
available-for-sale financial assets calculated using the effective interest method is
recognised in profit or loss (see Note III. 23(5)).
- Other financial liabilities
Financial liabilities other than the financial liabilities at fair value through profit
or loss are classified as other financial liabilities.
Other financial liabilities include the liabilities arising from financial guarantee
contracts. Financial guarantees are contracts that require the Group (i.e. the
guarantor) to make specified payments to reimburse the beneficiary of the
guarantee (the holder) for a loss the holder incurs because a specified debtor fails
to make payment when due in accordance with the terms of a debt instrument.
Where the Group issues a financial guarantee, subsequent to initial recognition,
the guarantee is measured at the higher of the amount initially recognised less
accumulated amortisation and the amount of a provision determined in accordance
with the principles of contingencies (see Note III. 22).
Except for the liabilities arising from financial guarantee contracts described
above, subsequent to initial recognition, other financial liabilities are measured at
amortised cost using the effective interest method.
(2) Presentation of financial assets and financial liabilities
Financial assets and financial liabilities are presented separately in the balance sheet,
and are not offset. However, a financial asset and a financial liability are offset and
the net amount is presented in the balance sheet when both of the following
conditions are satisfied:
- the Group has a legal right to set off the recognised amounts and the legal right
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
is currently enforceable;
- the Group intends either to settle on a net basis, or to realise the financial asset
and settle the financial liability simultaneously.
(3) Derecognition of financial assets and financial liabilities
A financial asset is derecognised if the Group’s contractual rights to the cash flows
from the financial asset expire or if the Group transfers substantially all the risks and
rewards of ownership of the financial asset to another party.
Where a transfer of a financial asset in its entirety meets the criteria for
derecognition, the difference between the two amounts below is recognised in profit
or loss:
- the carrying amount of the financial asset transferred；
- the sum of the consideration received from the transfer and any cumulative gain
or loss that has been recognised directly in shareholders’ equity.
The Group derecognises a financial liability (or part of it) only when the underlying
present obligation (or part of it) is discharged, cancelled or expired.
(4) Impairment of financial assets
The carrying amounts of financial assets (other than those at fair value through profit
or loss) are reviewed at each balance sheet date to determine whether there is
objective evidence of impairment. If any such evidence exists, an impairment loss is
recognised.
Objective evidence that a financial asset is impaired includes but is not limited to:
(a) significant financial difficulty of the issuer or obligor；
(b) a breach of contract by the borrower, such as a default or delinquency in
interest or principal payments;
(c) it becoming probable that the borrower will enter bankruptcy or other financial
reorganisation；
(d) the disappearance of an active market for that financial asset because of
financial difficulties faced by the issuer;
(e) significant changes with an adverse effect that have taken place in the
technological, market, economic or legal environment in which the issuer
operates, indicating that the cost of an investment in an equity instrument may
not be recovered by the investor;
(f) a significant decline in the fair value (i.e. the fair value becomes 50% or more
lower than the initial investment cost) or a prolonged decline in the fair value
(i.e. the fair value persisting at a level lower than the initial investment cost for
a year or longer) of an investment in an equity instrument below its cost. If the
fair value of the investment becomes 20% (or more) but less than 50% lower
than its initial cost at the balance sheet date, the Group considers other related
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
factors (such as fluctuations in prices) on the whole to determine whether the
investment is impaired.
For the calculation method of impairment of receivables, please refer to Note III.10.
The impairment of available-for-sale financial assets is measured as follows:
- Available-for-sale financial assets
Available-for-sale financial assets are assessed for impairment both on an
individual basis and on a collective group basis. When an available-for-sale
financial asset is impaired, the cumulative loss arising from decline in fair value
that has been recognised directly in shareholders’ equity is reclassified to profit or
loss even though the financial asset has not been derecognised.
If, after an impairment loss has been recognised on an available-for-sale debt
instrument, the fair value of the debt instrument increases in a subsequent period
and the increase can be objectively related to an event occurring after the
impairment loss was recognised, the impairment loss is reversed through profit or
loss. An impairment loss recognised for an investment in an equity instrument
classified as available-for-sale is not reversed through profit or loss. However, the
impairment loss recognised for equity instruments whose fair value cannot be
measured reliably that are not quoted in an active market cannot be reversed.
(5) Equity instrument
The consideration received from the issuance of equity instruments net of transaction
costs is recognised in shareholders’ equity.
10 Impairment of receivables
Receivables are assessed for impairment both on an individual basis and on a
collective group basis.
Where impairment is assessed on an individual basis, an impairment loss in respect
of a receivable is calculated as the excess of its carrying amount over the present
value of the estimated future cash flows (exclusive of future credit losses that have
not been incurred) discounted at the original effective interest rate. All impairment
losses are recognised in profit or loss.
The assessment is made collectively where receivables share similar credit risk
characteristics (including those having not been individually assessed as impaired),
based on their historical loss experiences, and adjusted by the observable factors
reflecting present economic conditions.
If, after an impairment loss has been recognised on receivables, there is objective
evidence of a recovery in value of the financial asset which can be related objectively
to an event occurring after the impairment was recognised, the previously recognised
impairment loss is reversed through profit or loss. A reversal of an impairment loss
will not result in the asset’s carrying amount exceeding what the amortised cost
would have been had no impairment loss been recognised in prior years.
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
An individually significant receivable is any of the five largest accounts receivables
of the Company and its subsidiaries, or other receivables or all long-term receivables
of more than RMB 5 million in the financial statements of the Company and its
subsidiaries. The Group tests such receivables for impairment on an individual basis.
For individually insignificant receivables, the Group tests them for impairment on an
individual basis when there is evidence of impairment. Where no impairment is
detected when assessed individually, the Group tests the receivables collectively for
impairment. The Group’s accounts receivables mainly comprise receivables due
from Guangdong Power Grid ( “GPGC” ) and from the Group’s related parties, as
well as government grants. According to historical experience and impairment tests
made on an individual basis, the Group’s undue receivables were considered to be
portfolios with low credit risk, and thus the Group did not provide allowance for
doubtful accounts on these customer portfolios.
11 Inventories
(1) Classification and cost
Inventories include fuel and spare parts. Inventories are initially measured at cost.
Cost of inventories comprises all costs of purchase and other expenditures incurred
in bringing the inventories to their present location and condition.
(2) 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.
(3) Basis for determining the net realisable value of inventories and provisioning
methods for decline in value of inventories
At the balance sheet date, inventories are carried at the lower of cost and net
realisable value.
Net realisable value is the estimated selling price in the ordinary course of business
less the estimated costs necessary to make the sale and relevant taxes.
Any excess of the cost over the net realisable value of inventories is recognised as a
provision for diminution in the value of inventories, and is recognised in profit or
loss.
(4) Inventory system
The Group maintains a perpetual inventory system.
12 Long-term equity investments
(1) Investment cost of long-term equity investments
(a) Long-term equity investments acquired through a business combination
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
- The initial cost of a long-term equity investment acquired through a business
combination involving enterprises under common control is the Company’s share
of the carrying amount of the subsidiary’s equity in the consolidated financial
statements of the ultimate controlling party at the combination date. The
difference between the initial investment cost and the carrying amount of the
consideration given is adjusted to share premium in the capital reserve, with any
excess adjusted against retained earnings.
- For a long-term equity investment obtained through a business combination not
involving enterprises under common control, the initial cost comprises the
aggregate of the fair value of assets transferred, liabilities incurred or assumed,
and equity securities issued by the Company, in exchange for control of the
acquiree. For a long-term equity investment obtained through a business
combination not involving enterprises under common control and achieved
through multiple transactions in stages by which do not form a bundled
transaction, the initial cost comprises the carrying amount of the previously-held
equity investment in the acquiree immediately before the acquisition date, and the
additional investment cost at the acquisition date.
(b) Long-term equity investments acquired other than through a business combination
- A long-term equity investment acquired other than through a business
combination is initially recognised at the actual consideration paid if the Group
acquires the investment by cash, or at the fair value of the equity securities issued
if an investment is acquired by issuing equity securities.
(2) Subsequent measurement
(a) Investments in subsidiaries
In the Company’s separate financial statements, long-term equity investments in
subsidiaries are accounted for using the cost method for subsequent measurement.
Except for cash dividends or profit distributions declared but not yet distributed that
have been included in the price or consideration paid in obtaining the investments,
the Company recognises its share of the cash dividends or profit distributions
declared by the investee as investment income in the current period.
The investments in subsidiaries are stated in the balance sheet at cost less
accumulated impairment losses.
Test and provision for impairment of investment in subsidiaries are described in Note
III. 20.
In the Group’s consolidated financial statements, investments in subsidiaries are
accounted for in accordance with the policies described in Note III.6.
(b) Investments in joint ventures and associates
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A joint ventures is an enterprise which operates under joint control (see Note III.12
(3)) in accordance with a contractual agreement between the Group and other parties.
An associate is an enterprise over which the Group has significant influence (see
Note III.12 (3)).
An investment in a joint ventures or an associate is accounted for using the equity
method for subsequent measurement, unless the investment is classified as held for
sale.
Under the equity method:
- Where the initial cost of a long-term equity investment exceeds the Group’s
interest in the fair value of the investee’s identifiable net assets at the date of
acquisition, the investment is initially recognised at cost. Where the initial
investment cost is less than the Group’s interest in the fair value of the investee’s
identifiable net assets at the date of acquisition, the investment is initially
recognised at the investor’s share of the fair value of the investee’s identifiable net
assets, and the difference is recognised in profit or loss.
- After the acquisition of the investment, the Group recognises its share of the
investee’s net profit or loss and other comprehensive income as investment
income or losses and other comprehensive income respectively, and adjusts the
carrying amount of the investment accordingly. Once the investee declares any
cash dividends or profit distributions, the carrying amount of the investment is
reduced by that amount attributable to the Group. The Group adjusts the carrying
amount of the long-term equity investment for changes in owners’ equity of the
investee other than those arising from net profits or losses, other comprehensive
income or profit distributions, and recognises the corresponding adjustment in
shareholders’ equity.
The Group recognises its share of the investee’s net profits or losses as investment
income and other comprehensive income after making appropriate adjustments to
align the accounting policies or accounting periods with those of the Group based
on the fair value of the investee’s identifiable net assets at the date of acquisition.
Unrealised profits and losses resulting from transactions between the Group and
its associates or joint ventures are eliminated to the extent of the Group’s interest
in the associates or joint ventures. Unrealised losses resulting from transactions
between the Group and its associates or joint ventures are eliminated in the same
way as unrealised gains but only to the extent that there is no evidence of
impairment.
- The Group discontinues recognising its share of further losses of the investee after
the carrying amount of the long-term equity investment and any long-term interest
that in substance forms part of the Group’s net investment in the joint venture or
associate is reduced to zero, except to the extent that the Group has an obligation
to assume additional losses. If the joint venture or associate subsequently reports
net profits, the Group resumes recognising its share of those profits only after its
share of the profits equals the share of losses not recognised.
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For the impairment of the investments in joint ventures and associates, refer to Note
III. 20.
(3) Basis for determining the existence of joint control or significant influence over an
investee
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 parties
sharing the control. The following factors are usually considered when assessing
whether the Group can exercise joint control over an investee:
- Whether no single investor is in a position to control the investee’s related
operating activities unilaterally;
- Whether strategic decisions relating to the investee’s related operating activities
require the unanimous consent of all investors;
Significant influence is the power to participate in the financial and operating policy
decisions of an investee but does not have control or joint control over those policies.
13 Investment properties
Investment properties are properties held either to earn rental income or for capital
appreciation or for both. Investment properties are accounted for using the cost
model and stated in the balance sheet at cost less accumulated depreciation,
amortisation and impairment losses. The cost of investment property, less its
estimated residual value and accumulated impairment losses, is depreciated using the
straight-line method over its estimated useful life, unless the investment property is
classified as held for sale. For the method of impairment testing and measurement,
please refer to Note III. 20.
The estimated useful lives, residual value rates and depreciation rates of each class of
investment properties are as follows:
Estimated useful Residual value Depreciation rate
Item life (years) rate (%) (%)
Plant and buildings 30 years 5% 3.17%
14 Fixed assets
(1) Recognition of fixed assets
Fixed assets represent the tangible assets held by the Group for use in the generation
of electricity or for administrative purposes with useful lives of more than one
accounting year.
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The initial cost of a purchased fixed asset comprises the purchase price, related taxes,
and any directly attributable expenditure for bringing the asset to working condition
for its intended use. The initial cost of self-constructed assets is measured in
accordance with the policy set out in Note III.15. Fixed assets contributed by
state-owned shareholders at the incorporation of the Company are initially recorded
at the valuation amount recognised by the state-owned assets supervision and
administration department.
Where the parts of an item of fixed assets have different useful lives or provide
benefits to the Group in a different pattern, thus necessitating use of different
depreciation rates or methods, each part is recognised as a separate fixed asset.
The subsequent costs including the cost of replacing part of an item of fixed assets
are recognised as assets when it is probable that the economic benefits associated
with teh costs will flow to the Goup, and the carrying amount of the replaced part is
derecognised. The costs of the day-to-day maintenance of fixed assets are recognised
in profit or loss as incurred.
Fixed assets are stated in the balance sheet at cost less accumulated depreciation and
impairment losses.
(2) Depreciation of fixed assets
The cost of fixed asset, less its estimated residual value and accumulated impairment
losses, is depreciated using the straight-line method over its estimated useful life,
unless the fixed asset is classified as held for sale.
The estimated useful lives, residual value rates and depreciation rates of each class of
fixed assets are as follows:
Estimated useful Residual value Depreciation rate
Class life (years) (%) (%)
Plant and buildings 10 - 50 years 0 - 10% 1.80% - 10.00%
Power generation
equipment 6 - 31 years 0 - 10% 2.90% - 16.67%
Motor vehicles 5 - 10 years 0 - 10% 9.00% - 20.00%
Other equipment 5 - 25 years 0 - 10% 3.60% - 20.00%
Useful lives, estimated net residual value and depreciation methods are reviewed at
least at each year-end.
(3) For the method of impairment testing and measurement, please refer to Note III. 20.
(4) For the recognition, measurement and depreciation of fixed assets acquired under
finance leases, please refer to the accounting policy set out in Note III.27 (3).
(5) Disposal of fixed assets
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The carrying amount of a fixed asset is derecognised:
- when the fixed asset is on disposal; or
- when no future economic benefit is expected to be generated from its use or
disposal.
Gains or losses arising from the retirement or disposal of an item of fixed asset are
determined as the difference between the net disposal proceeds and the carrying
amount of the item, and are recognised in profit or loss on the date of retirement or
disposal.
15 Construction in progress
The cost of self-constructed assets includes the construction cost, installation cost,
cost of materials, direct labour, capitalised borrowing costs (see Note III.16), and any
other costs directly attributable to bringing the asset to working condition for its
intended use. The cost of self-constructed fixed assets includes the cost incurred less
income generated during the test run before the generator units are launched into
operation.
A self-constructed asset is included in construction in progress before it is transferred
to fixed asset when it is ready for its intended use. No depreciation is provided
against construction in progress.
Construction in progress is stated in the balance sheet at cost less accumulated
impairment losses (see Note III.20).
16 Borrowing costs
Borrowing costs incurred directly attributable to the acquisition or construction of a
qualifying asset are capitalised as part of the cost of the asset. Other borrowing costs
are recognised as financial expenses when incurred.
During the capitalisation period, the amount of interest (including amortisation of
any discount or premium on borrowing) to be capitalised in each accounting period is
determined as follows:
- Where funds are borrowed specifically for the acquisition or construction of a
qualifying asset, the amount of interest to be capitalised is the interest expense
calculated using effective interest rates during the period less any interest income
earned from depositing the borrowed funds or any investment income on the
temporary investment of those funds before being used on the asset.
- Where funds are borrowed generally and used for the acquisition or construction
of a qualifying asset, the amount of interest to be capitalised on such borrowings
is determined by applying a capitalisation rate to the weighted average of the
excess amounts of cumulative expenditures on the asset over the above amounts
of specific borrowings. The capitalisation rate is the weighted average of the
interest rates applicable to the general-purpose borrowings.
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The effective interest rate is determined as the rate that exactly discounts estimated
future cash flow through the expected life of the borrowing or, when appropriate, a
shorter period to the initially recognised amount of the borrowings.
During the capitalisation period, exchange differences related to the principal and
interest on a specific-purpose borrowing denominated in foreign currency are
capitalised as part of the cost of the qualifying asset. The exchange differences
related to the principal and interest on foreign currency borrowings other than a
specific-purpose borrowing are recognised as a financial expense in the period in
which they are incurred.
The capitalisation period is the period from the date of commencement of
capitalisation of borrowing costs to the date of cessation of capitalisation, excluding
any period over which capitalisation is suspended. Capitalisation of borrowing costs
commences when expenditure for the asset is being incurred, borrowing costs are
being incurred and activities of acquisition or construction that are necessary to
prepare the asset for its intended use are in progress, and ceases when the assets
become ready for their intended use. Capitalisation of borrowing costs is suspended
when the acquisition or construction activities are interrupted abnormally and the
interruption lasts for more than three months.
17 Intangible assets
Intangible assets are stated in the balance sheet at cost less accumulated amortisation
(where the estimated useful life is finite) and impairment losses (see Note III.20). For
an intangible asset with finite useful life, its cost less estimated residual value and
accumulated impairment losses is amortised using the straight-line method over its
estimated useful life, unless the intangible asset is classified as held for sale.
Intangible assets mainly including land use rights, sea use rights, software,
concession contracts, 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. 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. Associated projects for electricity transmission and transformation and
microwave engineering are for the grid connection project between the Guangdong
Electric Holding Co., and Guangdong Power Grid Corporation.
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The respective amortisation periods for such intangible assets are as follows:
Item Amortisation period (years)
Associated projects for electricity
transmission and transformation,
microwave engineering 16 years
Land use right 20 - 70 years
Sea use right 50 years
Transportation engineering 10 - 20 years
Concession contracts 10 - 25 years
Software 2 - 10 years
Non-patent technology 2 - 6 years
An intangible asset is regarded as having an indefinite useful life and is not
amortised when there is no foreseeable limit to the period over which the asset is
expected to generate economic benefits for the Group. At the balance sheet date, the
Group does not have any intangible assets with indefinite useful lives.
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18、 Goodwill
The initial cost of goodwill represents the excess of cost of acquisition over the
acquirer’s interest in the fair value of the identifiable net assets of the acquiree under
the business combination not involving enterprises under common control.
Goodwill is not amortised and is stated in the balance sheet at cost less accumulated
impairment losses (see Note III. 20). On disposal of an asset group or a set of asset
groups, any attributable amount of purchased goodwill is written off and included in
the calculation of the profit or loss on disposal.
19 Long-term deferred expenses
Long-term deferred expenses are amortised using a straight-line method within the
benefit period. The respective amortisation periods for such expenses are as follows:
Item Amortisation period
Expenses on improvement of fixed assets 15 - 180 months
Long-term lease expenses 79 - 180 months
20 Impairment of assets other than inventories and financial assets
The carrying amounts of the following assets are reviewed at each balance sheet date
based on the internal and external sources of information to determine whether there
is any indication of impairment:
- fixed assets
- construction in progress
- construction materials
- intangible assets
- investment properties measured using a cost model
- long-term equity investments
- goodwill
- long-term deferred expenses
If any indication exists that an asset may be impaired, the recoverable amount of the
asset is estimated. In addition, the Group estimates the recoverable amounts of
goodwill at each year-end, irrespective of whether there is any indication of
impairment. Goodwill is allocated to each asset group or set of asset groups, that is
expected to benefit from the synergies of the combination for the purpose of
impairment testing.
The recoverable amount of an asset, or asset group, set of asset groups is the higher
of its fair value (see Note III. 21) less costs to sell and its present value of expected
future cash flows.
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An asset group is the smallest identifiable group of assets that generates cash inflows
that are largely independent of the cash inflows from other assets or asset groups. An
asset group is composed of assets directly relating to cash-generation.
The present value of expected future cash flows of an asset is determined by
discounting the future cash flows, estimated to be derived from continuing use of the
asset and from its ultimate disposal, to their present value using an appropriate
pre-tax discount rate.
If the result of the recoverable amount calculation indicates the recoverable amount
of an asset is less than its carrying amount, the carrying amount of the asset is
reduced to its recoverable amount. That reduction is recognised as an impairment
loss and charged to profit or loss for the current period. A provision for impairment
of the asset is recognised accordingly. For impairment losses related to an asset
group or a set of asset groups, first to reduce the carrying amount of any goodwill
allocated to the asset group or set of asset groups, and then to reduce the carrying
amount of the other assets in the asset group or set of asset groups on a pro rata basis.
However, the carrying amount of an impaired asset will not be lower than the
greatest amount of its individual fair value less costs to sell (if determinable), the
present value of expected future cash flows (if determinable) and zero.
Once an impairment loss is recognised, it is not reversed in a subsequent period.
21 Fair value measurement
Unless otherwise specified, the Group determines fair value measurement as below:
Fair value is the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement
date.
When measuring fair value, the Company takes into account the characteristics of the
particular asset or liability (including the condition and location of the asset and
restrictions, if any, on the sale or use of the asset) that market participants would
consider when pricing the asset or liability at the measurement date, and uses
valuation techniques that are appropriate in the circumstances and for which
sufficient data and other information are available to measure fair value. Valuation
techniques mainly include the market approach, the income approach and the cost
approach.
22 Provisions
A provision is recognised for an obligation related to a contingency if the Group has
a present obligation that can be estimated reliably, and it is probable that an outflow
of economic benefits will be required to settle the obligation.
A provision is initially measured at the best estimate of the expenditure required to
settle the related present obligation. Where the time value of money is material,
provisions are stated at the discounted value of estimated future cash flow. Factors
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pertaining to a contingency such as the risks, uncertainties and time value of money
are taken into account as a whole in reaching the best estimate. If there is a range for
the required expenditure where all results within the range are equally probable, the
best estimate will be the median value of the range; otherwise, the best estimate will
be determined based on the following conditions:
- the best estimate will be the value with the highest probability if the contingency
involves single item;
- the best estimate will be calculated based on the probability of each result if the
contingency involves multiple items.
The carrying amounts of provisions are reviewed at each balance sheet date and
adjusted based on the latest best estimates.
23 Revenue recognition
Revenue is the gross inflow of economic benefit arising in the course of the Group’s
ordinary activities when the inflows result in increase in shareholders’ equity, other
than increase relating to contributions from shareholders. Revenue is recognised in
profit or loss when it is probable that the economic benefits will flow to the Group,
the revenue and costs can be measured reliably and the following respective
conditions are met.
(1) Revenue from sales of electricity and heat energy
Revenue is recognised when electricity and heat energy are supplied to grid
companies or customers.
(2) Revenue from sales of by-products
Revenue from the sales of goods is recognised when the Group transfers by-products
(such as coal ash) produced by electricity generations to the designated delivery
place pursuant to the contract or agreement and the recipient resource utilization
confirms receipt.
(3) Rendering of services
Revenue from rendering of services is measured at the fair value of the consideration
received or receivable under the contract or agreement.
At the balance sheet date, where the outcome of a transaction involving the rendering
of services can be estimated reliably, revenue from the rendering of services is
recognised by reference to the stage of completion of the transaction based on the
proportion of costs incurred to date to the estimated total costs.
Where the outcome of rendering of services cannot be estimated reliably, if the costs
incurred are expected to be recoverable, revenues are recognised to the extent of the
costs incurred that are expected to be recoverable, and an equivalent amount is
charged to profit or loss as service cost; if the costs incurred are not expected to be
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recoverable, the costs incurred are recognised in profit or loss and no service revenue
is recognised.
(4) Revenue from sale of certified emission reductions (CERs)
The Group sells CERs provided by its wind power facilities. These wind power
facilities are registered with the Clean Development Mechanism (CDM) Executive
Board (EB) of the United Nations as CDM projects under the Kyoto Protocol. The
Company also sells voluntary emission reductions (“VERs”) attributable to the
electricity generated from CDM projects before getting registered with CDMEB.
Revenue related to CERs and VERs is recognised when the following conditions are
met:
- The counterparty has committed to buy CERs or VERs;
- The amount of income from selling CERs or VERs can be reliably measured;
- The Company has generated the related electricity.
(5) Interest income
Interest income is recognised based on the length of time of the deposits or principal
outstanding and the applicable effective interest rate.
(6) Revenue from operating leases
Rental income from operating leases is recognised as income on a straight-line basis
over the lease term.
24 Employee benefits
(1) Short-term employee benefits
Employee wages or salaries, bonuses, social security contributions such as medical
insurance, work injury insurance, maternity insurance and housing fund, measured at
the amount incurred or at the applicable benchmarks and rates, are recognised as a
liability as the employee provides services, with a corresponding charge to profit or
loss or included in the cost of assets where appropriate.
(2) Post-employment benefits – defined contribution plans
Pursuant to the relevant laws and regulations of the People’s Republic of China, the
Group participated in a defined contribution basic pension insurance in the social
insurance system established and managed by government organisations. The
Company makes contributions to basic pension insurance plans based on the
applicable benchmarks and rates stipulated by the government. The Company also
purchases and makes contributions to supplementary pension insurance based on the
applicable benchmarks and rates stipulated by Yudean. Basic pension and
supplementary pension insurance contributions are recognised as a liability as the
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related services are rendered by the employees, with a corresponding charge to profit
or loss or included in the cost of assets where appropriate.
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(3) Termination benefits
When the Group terminates the employment with employees before the employment
contracts expire, or provides compensation under an offer to encourage employees to
accept voluntary redundancy, a provision is recognised with a corresponding expense
in profit or loss at the earlier of the following dates:
- The Group is not allowed to withdraw termination benefits from termination plan
or redundancy offer unilaterally;
- The Group has a detailed and formal restructuring plan related to the payment of
termination benefits; and the Group has launched the plan or notified the affected
parties of its main content, thereby making the restructuring plan reasonably
expected by all related parties.
(4) Other long-term employee benefits
According to the Urban Employee Basic Medical Insurance (UEBMI) policy
governing the Company and some of the Group’s subsidiaries, if an employee’s
UEBMI contribution period who participates in basic medical insurance for urban
residents, fails to reach the time requirement when the employee reaches the
statutory retirement age, the employee shall continue to contribute to the UEBMI till
the contribution period meets the required time. The Group determines the amount to
be contributed in the residual service period of an employee based on the present
value of the future cash flow expected to be paid for UEBMI till the required time is
met, which will be recognised as long-term employee benefits liabilities with a
corresponding charge to profit or loss or included in cost of related assets.
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25 Government grants
Government grants are non-reciprocal transfers of monetary or non-monetary assets
from the government to the Group at no consideration except for any capital
contribution from the government as an investor in the Group. Special funds such as
investment grants allocated by the government, if clearly defined in official
documents as part of “capital reserve” are dealt with as capital contributions, and not
regarded as government grants.
A government grant is recognised when there is reasonable assurance that the grant
will be received and that the Group will comply with the conditions attaching to the
grant.
If a government grant is in the form of a transfer of a monetary asset, it is measured
at the amount that is received or receivable. If a government grant is in the form of a
transfer of a non-monetary asset, it is measured at its fair value.
Government grants related to assets are grants whose primary condition is that the
Group qualifying for them should purchase, construct or otherwise acquire long-term
assets. Government grants related to income are grants other than those related to
assets. A government grant related to an asset is recognised initially as deferred
income and amortised to profit or loss on a straight-line basis over the useful life of
the asset. A grant that compensates the Group for expenses to be incurred in the
subsequent periods is recognised initially as deferred income and recognised in profit
or loss in the same periods in which the expenses are recognised. A grant that
compensates the Group for expenses incurred is recognised in profit or loss
immediately.
26 Income tax
Current tax and deferred tax are recognised in profit or loss except to the extent that
they relate to a business combination or items recognised directly in equity
(including other comprehensive income).
Current tax is the expected tax payable calculated at the applicable tax rate on
taxable income for the year, plus any adjustment to tax payable in respect of previous
years.
At the balance sheet date, current tax assets and liabilities are offset if the Group has
a legally enforceable right to set them off and also intends either to settle on a net
basis or to realise the asset and settle the liability simultaneously.
Deferred tax assets and deferred tax liabilities arise from deductible and taxable
temporary differences respectively, being the differences between the carrying
amounts of assets and liabilities for financial reporting purposes and their tax bases,
which include the deductible losses and tax credits carried forward to subsequent
periods. Deferred tax assets are recognised to the extent that it is probable that future
taxable profits will be available against which deductible temporary differences can
be utilised.
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Deferred tax is not recognised for the temporary differences arising from the initial
recognition of assets or liabilities in a transaction that is not a business combination
and that affects neither accounting profit nor taxable profit (or tax loss). Deferred tax
is not recognised for taxable temporary differences arising from the initial
recognition of goodwill.
At the balance sheet date, the amount of deferred tax recognised is measured based
on the expected manner of recovery or settlement of the carrying amount of the
assets and liabilities, using tax rates that are expected to be applied in the period
when the asset is recovered or the liability is settled in accordance with tax laws.
The carrying amount of a deferred tax asset is reviewed at each balance sheet date.
The carrying amount of a deferred tax asset is reduced to the extent that it is no
longer probable that sufficient taxable profits will be available to allow the benefit of
the deferred tax asset to be utilised. Such reduction is reversed to the extent that it
becomes probable that sufficient taxable profits will be available.
At the balance sheet date, deferred tax assets and deferred tax liabilities are offset if
all the following conditions are met:
- the taxable entity has a legally enforceable right to offset current tax liabilities and
current tax assets
- they relate to income taxes levied by the same tax authority on either:
the same taxable entity; or
different taxable entities which intend either to settle the current tax liabilities
and current tax assets on a net basis, or to realise the assets and settle the
liabilities simultaneously, in each future period in which significant amounts of
deferred tax liabilities or deferred tax assets are expected to be settled or
recovered.
27 Operating leases and finance leases
A lease is classified as either a finance lease or an operating lease. A finance lease is
a lease that transfers substantially all the risks and rewards incidental to ownership of
a leased asset to the lessee, irrespective of whether the legal title to the asset is
eventually transferred. An operating lease is a lease other than a finance lease.
(1) Operating lease charges
Rental payments under operating leases are recognised as part of the cost of another
related asset or as expenses on a straight-line basis over the lease term.
(2) Assets leased out under operating leases
Fixed assets leased out under operating leases, except for investment properties (see
Note III.13), are depreciated in accordance with the Group’s depreciation policies
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described in Note III.14 (2). Impairment losses are recognised in accordance with the
accounting policy described in Note III. 20. Income derived from operating leases is
recognised in the profit or loss using the straight-line method over the lease term. If
initial direct costs incurred in respect of the assets leased out are material, the costs
are initially capitalised and subsequently amortised in profit or loss over the lease
term on the same basis as the lease income. Otherwise, the costs are charged to profit
or loss immediately.
(3) Assets acquired under finance leases
When the Group acquires an asset under a finance lease, the asset is measured at an
amount equal to the lower of its fair value and the present value of the minimum
lease payments, each determined at the inception of the lease. At the commencement
of the lease term, the minimum lease payments are recorded as long-term payables.
The difference between the fair value of the leased assets and the minimum lease
payments is recognised as unrecognised finance charges. Initial direct costs that are
attributable to a finance lease incurred by the Group are added to the amounts
recognised for the leased asset. Depreciation and impairment losses are accounted for
in accordance with the accounting policies described in Notes III.14 (2) and Notes
III.20, respectively.
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.
Unrecognised finance charge under finance lease is amortised using an effective
interest method over the lease term. The amortisation is accounted for in accordance
with the principles of borrowing costs (see Note III.16).
At the balance sheet date, long-term payables arising from finance leases, net of the
unrecognised finance charges, are separately presented as long-term payables or
non-current liabilities due within one year, respectively, in the balance sheet.
Leaseback is a transaction in which the seller (the lessee) sells a self-made or
purchased asset, then leases it back from the buyer (the lender) for a long-term
period. When a sale and leaseback transaction is considered to be a financing lease in
economic substance, the difference between the selling price and the asset’s carrying
amount will be deferred and allocated based on the depreciation years of the leased
asset and recorded as an adjustment to the depreciation expense.
28 Profit distributions to shareholders
Dividends or profit distributions proposed in the profit appropriation plan, which will
be authorised and declared after the balance sheet date, are not recognised as a
liability at the balance sheet date but disclosed in the notes separately.
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29 Related parties
If a party has the power to control, jointly control or exercise significant influence
over another party, or vice versa, or where two or more parties are subject to
common control or joint control from another party, they are considered to be related
parties. Related parties may be individuals or enterprises. Enterprises with which the
Company is under common control only from the State and that have no other related
party relationships are not regarded as related parties of the Group.
30 Segment reporting
Reportable segments are identified based on operating segments which are
determined based on the structure of the Group’s internal organisation, management
requirements and internal reporting system, taking into account the materiality
principle. Two or more operating segments may be aggregated into a single operating
segment if the segments have similar economic characteristics and are same or
similar in respect of the nature of each segment’s product and service, the nature of
production processes, the types or classes of customers for the products and services,
the methods used to distribute the products or provide the services, and the nature of
the regulatory environment.
Inter-segment revenues are measured on the basis of the actual transaction price for
such transactions for segment reporting. Segment accounting policies are consistent
with those for the consolidated financial statements.
31 Significant accounting estimates and judgments
The preparation of the financial statements requires management to make estimates
and assumptions that affect the application of accounting policies and the reported
amounts of assets, liabilities, income and expenses. Actual results may differ from
these estimates. Estimates as well as underlying assumptions uncertainties involved
are reviewed on an ongoing basis. Revisions to accounting estimates are recognised
in the period in which the estimate is revised and in any future periods affected.
The Group’s key sources of estimation uncertainties are as follows:
(a) Impairment of assets other than inventories and financial assets
As described in Note III.20, assets other than inventories and financial assets
are reviewed at each balance sheet date to determine whether the carrying
amount exceeds the recoverable amount of the assets. If any such indication
that the carrying amount of long-term assets may not be fully recovered exists,
the related assets will be deemed as impaired, and an impairment loss is
recognised.
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
When judging whether there is evidence of impairment in the above assets,
management assesses and analyses the following: (1) whether any event that
causes impairment has occurred; (2) whether the estimated available present
value of cash flows from continual use or disposal of assets is lower than the
carrying value of the asset; and (3) whether the repeated assumptions used for
the estimated present value of future cash flows are appropriate.
The Group adopted assumptions in determining whether assets are impaired.
Any changes in the discounted rate and growth rate used in calculating the
present value of future cash flows may significantly affect the present value
used in the impairment test, resulting in the impairment of the above long-term
assets.
(b) Useful lives of plants, buildings and equipment
The estimated useful lives of plants, buildings and equipment are determined
by management after taking into account their durability and past maintenance
records based on the industry practice. The estimated useful life of the assets is
reviewed at each year-end with appropriate adjustments made accordingly.
Any changes in the estimated useful life of fixed assets may have significant
impact on the Group’s net profits.
(c) Income tax
The decision whether to recognise deferred tax assets arising from deductible
tax losses and deductible temporary differences depends largely on
management’s judgement as to whether sufficient future taxable profits will be
available against which the assets can be utilised in the future periods. The
calculation of future taxable profits involves much judgements and estimations,
and is affected by the Group’s tax planning strategy and overall economic
environment. Different judgements and estimates will affect the recognition of
deferred tax assets and their recognised amounts.
(d) Deferred tax assets
When assessing whether there will be sufficient future taxable profits available
against which the deductible temporary differences can be utilised, the Group
recognises deferred tax assets to the extent that it is probable that future taxable
profits will be available against which the deductible temporary differences can
be utilised, using tax rates that would apply in the period when the asset would
be utilised. In determining the amount of deferred tax assets, the Group
exercises judgements about the estimated timing and amount of taxable profits
of the following periods, and of the tax rates applicable in the future according
to the existing tax policies and other relevant regulations. Differences between
such estimates and the actual timing and amount of future taxable profits and
the actual applicable tax rates affect the amount of deferred tax assets that
should be recognised.
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
IV Taxation
1 Main types of taxes and corresponding tax rates applicable to the Group:
Tax type Tax basis Tax rate
Value added tax Output VAT is calculated on product sales and 17% and 13%
(VAT) taxable services revenue, based on tax laws.
The remaining balance of output VAT, after
subtracting the deductible input VAT of the
period, is VAT payable.
Business tax Based on taxable revenue 3% or 5%
City maintenance Based on business tax and VAT paid 5% - 7%
and construction
tax
Education Based on business tax and VAT paid 3%
surcharges
Local education Based on business tax and VAT paid 2%
surcharges
Corporate income Based on taxable profits Note 1
tax
Note 1: The corporate tax rate applicable to the Group and its subsidiaries was 25%,
with the exception of the subsidiary, Guangdong Xuwen Wind Electric Power
Co., Ltd. (“Xuwen Wind”).(For details please see Note IV. 2)
2 Tax preferential and approvals
Pursuant to the approval documents (Cai Shui [2008] No.46 and Guo Shui Fa [2009]
No.80), Xuwen Wind is exempted from paying corporate income tax in the first three
years counting from the year profits are recorded, and can enjoy half rate reduction in
the following three years. As the local taxation bureau considered that Xuwen Wind
posted profits for the first time in 2012, the applicable corporate income tax rate for
Xuwen Wind is 12.5% in 2015 (2014: 0%).
In addition, 50% of VAT levied on the sales of electricity generated by Guangdong
Yudean Shibeishan Wind Power Co., Ltd (“Shibeishan”), Guangdong Yudean
Zhanjiang Wind Power Generation Co., Ltd.(“Zhanjiang Wind Power”), Xuwen
Wind and Huilai Wind Power Co., Ltd. (“Huilai Wind”) will be refunded
immediately in accordance with the Notice Concerning Value Added Tax Policies on
Wind Power Generation (Notice Cai Shui [2015] No.74).
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
V Notes to the consolidated financial statements
1 Cash at bank and on hand
Item Note 2015 2014
Cash on hand 78,223 88,728
Deposits with bank (a) 779,724,597 1,466,266,988
Deposits with Yudean Finance (b) 4,447,603,905 3,061,921,598
Other monetary funds (c) 10,000,000 20,000,000
Total 5,237,406,725 4,548,277,314
(a) Deposits at bank as at 31 December 2014 includes cash of RMB 60,000,000 which is
the capital contribution to be injected in Zhanjiang Qujie Wind Electric preparatory
group (湛江曲界风电筹备组).
(b) Deposits with Yudean Finance refers to the deposits placed with Guangdong Yudean
Finance Co., Ltd. (“Yudean Finance”). Yudean Finance is a financial institution
established with the approval of the People’s Bank of China. Yudean is the parent
company of Yudean Finance.
(c) The Group’s other monetary funds of RMB10,000,000 are used as security deposit
for bank acceptance (31 December 2014: RMB20,000,000, used as security deposit
for bank acceptance).
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
2 Accounts receivable
(1) Accounts receivable by customer types are as follows:
Customer type 2015 2014
Related parties 32,724,817 24,481,435
Third parties 2,451,959,073 2,556,252,388
Sub-total 2,484,683,890 2,580,733,823
Less: Provision for bad debts - -
Total 2,484,683,890 2,580,733,823
(2) The ageing analysis of accounts receivable is as follows:
Ageing 2015 2014
Within 1 year (inclusive) 2,484,683,890 2,580,733,823
Less: Provision for bad debts - -
Total 2,484,683,890 2,580,733,823
The ageing is counted starting from the date when accounts receivable are
recognised.
(3) As at 31 December 2015, the Group’s accounts receivable with the carrying amount
of RMB 498,786,073 (31 December 2014: RMB 172,806,399) and the on-grid power
tariff collection right were pledged to banks to obtain long-term loans of RMB
2,526,301,960, including RMB 70,645,920 due within one year (31 December 2014:
RMB 547,888,400 (RMB 131,520,000 of which was due within one year)) (see Note
V.31 (2) (a) and V.34 (1) (a)).
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(4) Accounts receivable by category:
2015 2014
Carrying Carrying
Book value Provision for bad debts value Book value Provision for bad debts value
Amount Percentage Amount Percentage Amount Percentage Amount Percentage
Category Note (%) (%) (%) (%)
Individually significant
and assessed
individually for impairment (5) 2,464,272,746 99.18% - - 2,464,272,746 2,565,462,568 99.41% - - 2,565,462,568
Individually insignificant
but assessed
individually for impairment 20,411,144 0.82% - - 20,411,144 15,271,255 0.59% - - 15,271,255
Total 2,484,683,890 100.00% - - 2,484,683,890 2,580,733,823 100.00% - - 2,580,733,823
Note: The Group does not hold any collateral over the above accounts receivable.
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(5) Five largest accounts receivable by debtor at the end of the year
Relationship Percentage of
with the total accounts
Company name Company Amount Ageing receivable (%)
GPGC Third party 2,288,218,593 Within 1 year 92.09%
Shenzhen Power Supply
Bureau Third party 131,251,004 Within 1 year 5.28%
Guangdong Yudean Group
Co., Ltd. Shajiao
Power
Plant C (“Shajiao C” ) Related party 24,221,331 Within 1 year 0.98%
GPGC – Zhanjiang
Power Supply Bureau Third party 11,057,761 Within 1 year 0.45%
GPGC – Jieyang Power
Supply Bureau Third party 9,524,057 Within 1 year 0.38%
Total 2,464,272,746 99.18%
3 Prepayments
(1) Prepayments by category:
Item 2015 2014
Prepayments for construction equipment 2,867,791 1,487,295
Prepayments for fuel 982,750,864 1,489,624,560
Prepayments for materials 8,746,400 3,111,339
Prepayment for insurances 20,725,264 17,563,051
Freight prepaid 41,085,073 13,584,445
Others prepaid 7,526,238 4,000,586
Total 1,063,701,630 1,529,371,276
(2) The ageing analysis of prepayments is as follows:
Ageing 2015 2014
Amount Percentage Amount Percentage
(%) (%)
Within 1 year (inclusive) 1,061,957,143 99.84% 1,524,462,657 99.68%
1 to 2 years (inclusive) 264,229 0.02% 1,990,267 0.13%
2 to 3 years (inclusive) 457,834 0.04% 2,057,901 0.13%
Over 3 years 1,022,424 0.10% 860,451 0.06%
Total 1,063,701,630 100.00% 1,529,371,276 100.00%
The ageing is counted starting from the date when prepayments are recognised.
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
As at 31 December 2015, the prepayments of significant amounts with ageing over
one year included prepayments for fuel, materials and freight.
(3) Five largest balances of prepayments by debtor at the end of the year
The Group’s the five largest balances of prepayment totalled RMB 1,015,006,151,
accounting for 95% of the total balance of prepayment.
4 Interest receivable
Interest receivable by category
Item 2015 2014
Interest receivable from
fixed term deposit 10,232,658 5,447,764
Interests receivable from
entrusted loans - 23,333
Total 10,232,658 5,471,097
5 Dividends receivable
Investee 2015 2014
Shanxi Yudean Energy Co. Ltd. ("Shanxi
Energy") 4,000,000 -
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
6 Other receivables
(1) Other receivables by category:
Item 2015 2014
Entrusted loans - 50,000,000
Prepayments for construction 30,660,145 25,670,161
By-product sales 94,220,368 80,858,769
Petty cash 9,263,643 6,636,284
Government grants 32,485,261 5,193,307
Others 28,635,154 52,371,738
Sub-total 195,264,571 220,730,259
Less: Provision for bad debts (6,365,291) (6,383,754)
Total 188,899,280 214,346,505
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(2) The ageing analysis of other receivables is as follows:
Ageing 2015 2014
Within 1 year (inclusive) 161,748,873 187,744,674
Over 1 year but within 2 years (inclusive) 1,812,363 6,324,875
Over 2 years but within 3 years (inclusive) 5,323,449 665,191
Over 3 years 26,379,886 25,995,519
Sub-total 195,264,571 220,730,259
Less: Provision for bad debts (6,365,291) (6,383,754)
Total 188,899,280 214,346,505
The ageing is counted starting from the date when other receivables are recognised.
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(3) Other receivables by category:
2015 2014
Carrying Carrying
Book value Provision for bad debts value Book value Provision for bad debts value
Amount Amount Amount Percentage Amount
Percentage Percentage (%) Percentage
Category (%) (%) (%)
Individually significant and assessed
individually for impairment 138,170,845 70.76% - - 138,170,845 164,168,157 74.38% - - 164,168,157
Individually insignificant but
assessed individually for
impairment 57,093,726 29.24% (6,365,291) 11.15% 50,728,435 56,562,102 25.62% (6,383,754) 11.29% 50,178,348
Total 195,264,571 100.00% (6,365,291) 3.26% 188,899,280 220,730,259 100.00% (6,383,754) 2.89% 214,346,505
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(4) Five largest balances of other receivables are as follows:
Provision for
bad and
doubtful debts
% of other Balance at
Balance at the Receivables in the end
Debtor Nature end of the year Aging total of the year
Guangdong Yudean
Environmental
Protection Co., Ltd. By-product sales 86,039,277 Within 1 year 45.55% -
Economy, Trade and
Information
Commission of
Shenzhen Subsidies for
Municipality natural gas 30,643,893 Within 1 year 16.22% -
Huidong Finance
Bureau Advances for land 21,318,970 Over 3 years 11.29% -
ICBC Financial Leasing
Co., Ltd. Refunds 2,831,566 Within 1 year 1.50% -
Guangzhou Huading Over 2 years
Building Materials but within 3
Co., Ltd By-product sales 2,803,641 years 1.48% (2,803,641)
Total 143,637,347 76.04% (2,803,641)
(5) Government grants
Expected date of
Name of receipt, amount and
Debtor government grant Closing balance Ageing basis of the grant
Economy, Trade and Within 1 Expected to be fully
Information Commission Subsidies for natural year recovered in June
of Shenzhen Municipality gas 30,643,893 (inclusive) 2016
Huilai County Office, Within 1 Expected to be fully
State Administration of Immediate Refund year recovered in June
Taxation of VAT 1,626,072 (inclusive) 2016
Xuwen County Office, Within 1 Expected to be fully
State Administration of Immediate Refund year recovered in June
Taxation of VAT 215,296 (inclusive) 2016
Total 32,485,261
139
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(6) Addition, recovery or reversal, and write-off of provision for bad and doubtful debts
during the year
2015 2014
Balance at the
beginning of
the year (6,383,754) (2,024,770)
Addition during the year (2,327) (4,480,102)
Recovery or reversals
during the year 20,790 1,623,216
Write-off during the year - (1,502,098)
Balance at the end
of the year (6,365,291) (6,383,754)
140
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
7 Inventories
(1) Inventories by category:
2015 2014
Provision for Provision for
impairment of impairment of
Item Book value inventories Carrying value Book value inventories Carrying value
Fuel 617,225,212 - 617,225,212 920,420,055 - 920,420,055
Spare parts 762,897,800 (62,309,494) 700,588,306 735,994,949 (61,454,752) 674,540,197
Others 15,841,105 - 15,841,105 28,238,758 - 28,238,758
Total 1,395,964,117 (62,309,494) 1,333,654,623 1,684,653,762 (61,454,752) 1,623,199,010
(2) An analysis of the movements of inventories for the year is as follows:
Balance at the
beginning of the Additions during Reductions Balance at the
Item year the year during the year end of the year
Fuel 920,420,055 11,058,888,008 (11,362,082,851) 617,225,212
Spare parts 735,994,949 701,690,554 (674,787,703) 762,897,800
Others 28,238,758 255,019,435 (267,417,088) 15,841,105
Total 1,684,653,762 12,015,597,997 (12,304,287,642) 1,395,964,117
(3) Provision for impairment of inventories
Balance at
the Balance at
beginning Additions Written back the end of
Item of the year during the year during the year the year
Reversal or
Provision Others write-off Others
Spare parts (61,454,752) (854,742) - - - (62,309,494)
As at 31 December 2015, the Group made provision for impairment of inventories
because some spare parts were rendered useless and impaired as a result of
technology upgrade.
8 Other current assets
Item Note 2015 2014
Deductible VAT 583,680,487 589,611,053
Other current assets to
be disposed of (1) - 57,387,152
Prepayment of income tax 3,921,884 10,170,681
Others (2) 50,859,601 47,808,208
141
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Total 638,461,972 704,977,094
(1) Guangdong Yudean Oil Shale Electric Co., Ltd. (“Oil Shale Electric”), originally the
Company’s subsidiary, entered the liquidation stage on 20 September 2012, and was
therefore no longer included in the Group’s consolidation scope. Consequently, the
net amount of long-term investment in Oil Shale Electric was transferred to other
current assets. As at the end of 2015, the liquidation of Oil Shale Electric was
completed. The Company's proceed from the liquidation amounted to RMB
187,452,820, exceeding the carrying amount by RMB 130,065,668, which was
recognized as investment income.
(2) Other current assets mainly represented the remaining balance of the USD loan of the
Company’s subsidiary – Zhanjiang Wind Power – obtained from the “Chinese
Climate Change Framework Loan” agreed between the Department of Finance of
Guangdong Province and European Investment Bank (EIB). As at 31 December
2015, Zhanjiang Wind Power had withdrawn USD 28,600,000, or RMB 185,716,960
(31 December 2014: USD 28,600,000, or RMB 175,003,400) from EIB, of which
USD 20,895,810, or RMB 135,689,029 (2014: USD 20,895,810, or RMB
127,195,192) was used to purchase equipment for Yongshi Wind Power Plant. The
balance and interest income amounting to USD 7,832,266, or RMB 50,859,601 (31
December 2014: USD 7,813,075, or RMB 47,808,208) were still placed with the
Department of Finance of Guangdong Province.
9 Available-for-sale financial assets
(1) Available-for-sale financial assets
2015 2014
Provision for Provision for
Item Book value impairment Carrying value Book value impairment Carrying value
Available-for-sale
equity instruments
- measured at fair
value 553,350,488 - 553,350,488 452,482,335 - 452,482,335
- measured at cost 541,000,000 - 541,000,000 544,600,000 - 544,600,000
Total 1,094,350,488 - 1,094,350,488 997,082,335 - 997,082,335
(2) Available-for-sale financial assets measured at fair value at the end of the year:
Equity instruments
Cost of equity instruments 255,328,616
Fair value 553,350,488
Accumulative fair value changes
recognised in other comprehensive
income 298,021,872
Provision for impairment -
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(a) As at 31 December 2015, the Company held 12,600,000 tradable A shares in
Shenzhen Energy and the investment cost was RMB 15,890,628. The investment was
stated at fair value determined with reference to the market price. During the year,
gains of RMB 29,988,000 (2014: gains of RMB 47,544,000) in fair value were
recognized in other comprehensive income accordingly.
(b) As at 31 December 2015, the Company held 55,532,250 tradable A shares in
Shenergy and the investment cost was RMB 235,837,988. The investment was stated
at fair value determined with reference to the market price. During the year, gains of
RMB 60,530,153 (2014: gains of RMB 106,066,597) in fair value were recognized
in other comprehensive income accordingly.
(c) As at 31 December 2015, the Company held 1,800,000 shares of GMG International
Tendering Co., Ltd. traded at the National Equities Exchange and Quotations system
and the investment cost was RMB 3,600,000. The investment was stated at fair value
determined with reference to the market price. During the year, gains of RMB
6,750,000 (2014: nil) in fair value were recognized in other comprehensive income
accordingly.
143
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(3) Available-for-sale financial assets measured at cost at the end of the year
Shareholding Cash
ratio in dividends for
Investee Book value Provision for impairment investees (%) the year
Balance at Increase Decrease Balance at the Balance at Increase Decrease Balance at the
the beginning during the during the end of the the beginning during the during the end of the
of the year year year year of the year year year year
Shenzhen Capital
Group Co., Ltd. 115,000,000 - - 115,000,000 - - - - 3.67% 15,435,000
Sunshine Insurance Group Corporation 356,000,000 - - 356,000,000 - - - - 5.22% 17,500,000
GMG International Tendering Co.,Ltd 3,600,000 - (3,600,000) - - - - - - -
South Sea Wind
Electricity Development
Co., Ltd. 70,000,000 - - 70,000,000 - - - - 10.00% -
Total 544,600,000 - (3,600,000) 541,000,000 - - - - 32,935,000
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
10 Long-term receivables
2015 2014
Provision for Carrying Provision for Carrying Range of
Item Book value bad debts amount Book value bad debts amount discount rate
Sales and
leaseback 4.93% -
deposits 128,640,631 - 128,640,631 121,334,809 - 121,334,809 7.30%
As at 31 December 2015, the Group’s long-term receivables mainly represented the
present value of RMB 50,000,000 of deposits paid by Zhanjiang Zhongyue Energy
Co.,Ltd (“Zhongyue Energy”) for its fixed assets (31 December 2014: RMB
50,000,000) held under sales and leaseback and RMB 110,000,000 of deposits paid
by Guangdong Jinghai Power Co.,Ltd (“Jinghai Power”) for its fixed assets (31
December 2014: RMB 110,000,000) held under sales and leaseback.
11 Long-term equity investments
(1) Long-term equity investments by category:
Item 2015 2014
Investment in joint ventures 601,637,346 597,811,376
Investment in associates 5,322,772,813 6,006,898,270
Total 5,924,410,159 6,604,709,646
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(2) Movements of long-term equity investments for the year are as follows:
Closing
Balance at the balance of
beginning of Balance at the impairment
Investee Note the year Increase / decrease during the year end of the year provision
Investment
income Declared
recognised Other distribution of
Increase in Decrease in under equity comprehensive Other equity cash dividends Provision for Disposal
capital capital method income movements or profits impairment during the year
Joint venture
Guangdong Electric Power
Industry Fuel Co., Ltd.(“Industry Fuel”) 597,811,376 - - 78,598,223 - - (74,772,253) - - 601,637,346 -
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Associates
Shanxi Yudean Energy Co., Ltd.
(“Shanxi Yudean Energy”) 869,294,193 - - 48,312,457 - - (4,000,000) - - 913,606,650 -
Guangdong Yudean Finance Co., Ltd.
(“Yudean Finance”) 648,047,185 - - 79,717,646 - - (57,535,462) - - 670,229,369 -
Guangdong Guohua Yudean Taishan Power
Generation Company (“Taishan Electric”) 2,208,688,289 - - 305,747,348 - - (410,130,428) - - 2,104,305,209 -
Yunnan Baoshan Binlang River
Electric Development Co., Ltd.
(“Binlang River”) （i） 205,634,475 - - (11,177,975) - - - - (194,456,500) - -
Guangdong Yudean Shipping Co., Ltd.
(“Yudean Shipping”) 945,671,363 - - 7,837,967 70,449 2,681,295 (15,835,300) - - 940,425,774 -
Yudean Holding West Investment Co., Ltd.
(“West Investment”) 256,008,451 - - 8,612,092 190,748 - - - - 264,811,291 -
Lincang Yudean Energy Co., Ltd.
(formerly Lincang Yuntou Yudean
Hydroelectric Development Co., Ltd.,
“Lingcang Yudean” ) （ii） 184,436,952 - - - - - - - (184,436,952) - -
Weixin Yuntou Yudean Zhaxi Energy Co.,Ltd
(“Weixin Yuntou”) （ii） 617,225,872 - - (38,274,657) - - - - (221,275,475) 357,675,740 -
Huaneng Shantou Wind Power
Company (“Shantou Wind Power”) 58,176,055 - - 4,795,887 - - (5,425,000) - - 57,546,942 -
Yangshan Jiangkeng Hydropower Station
Co., Ltd. (“Jiangkeng Hydropower”) 5,867,441 - - 123,614 - - - - - 5,991,055 -
Yangshan Centre Keng Electric
Co., Ltd. (“Centre Keng Electric”) 7,847,994 - - 1,418,041 - - (1,085,252) - - 8,180,783 -
Sub-total 6,006,898,270 - - 407,112,420 261,197 2,681,295 (494,011,442) - (600,168,927) 5,322,772,813 -
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Total 6,604,709,646 - - 485,710,643 261,197 2,681,295 (568,783,695) - (600,168,927) 5,924,410,159 -
146
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
（i） In 2015, the company transferred 29% of equity shares in Binlang River to a third
party with a consideration of RMB 261,315,800, generating investment income of
RMB 66,859,300.
（ii） On 5 January 2015, the Company replaced its 14.34% share in Weixin Yuntou with a
third party’s 51.00% share in Lincang Energy. After the equity replacement, the
Company obtained the control of Lincang Energy by increasing its shareholding ratio
from 49.00% to 100.00%. According to Note III. 5(2) , for a business combination
not involving enterprises under common control and achieved in stages, the Group
remeasures its previously-held equity interest in the acquiree to its fair value at the
acquisition date and recognises any resulting difference between the fair value and
the carrying amount as investment income for the current period. In addition, any
amount recognised in other comprehensive income that can be reclassified to profit
or loss, in prior reporting periods relating to the previously-held equity interest, and
any other changes in the owners’ equity under equity accounting, are transferred to
investment income in the period in which the acquisition occurs. As at the
acquisition date, the fair value of the Company’s 49% share in Lincang Energy held
prior to the acquisition was RMB 233,713,174. Based on the fair value measured on
the acquisition date, the investment income was RMB 49,276,222. On the other hand,
the Company’s shareholding ratio in Weixin Yuntou decreased from 40.00% to
25.66% while recognising an investment income of RMB 21,977,012 based on the
fair value of the Company’s 14.34% share in Weixin Yuntou amounting to RMB
243,252,487 as at the acquisition date.
12 Investment properties
Plant and buildings
Cost
Balances at the beginning and end of the year 20,135,165
----------------------
Accumulated depreciation
Balance at the beginning of the year (9,931,732)
Charge for the year (635,598)
Balance at the end of the year (10,567,330)
----------------------
Carrying amount
At the end of the year 9,567,835
At the beginning of the year 10,203,433
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
13 Fixed assets
(1) Fixed assets
Plant and Power generation
Item building equipment Motor vehicles Other equipment Total
Cost
Balance at the beginning
of the year 13,834,307,849 47,775,699,632 612,368,738 1,014,042,348 63,236,418,567
Additions during the year
-Acquisition 552,311 18,451,432 9,452,213 23,897,768 52,353,724
-Transfer from
construction
in progress 3,093,319,010 5,386,856,382 - 49,161,117 8,529,336,509
-Increase from business
combination
involving
enterprises under
common control 176,576,673 30,224,424 739,545 497,088 208,037,730
-Adjustment for project
settlement
differences 35,186,657 10,909,136 - - 46,095,793
Disposal during the year (275,270,808) (126,213,479) (16,478,511) (10,180,361) (428,143,159)
Balance at the end of the
year 16,864,671,692 53,095,927,527 606,081,985 1,077,417,960 71,644,099,164
--------------------- --------------------- --------------------- -------------------- ---------------------
Accumulated depreciation
Balance at the beginning
of the year (4,575,546,265) (17,734,197,932) (380,854,757) (633,443,892) (23,324,042,846)
Charge for the year (592,659,573) (2,896,182,961) (56,297,398) (96,134,473) (3,641,274,405)
Disposal during the year 151,567,373 95,636,961 14,889,451 9,335,662 271,429,447
Balance at the end of the
year (5,016,638,465) (20,534,743,932) (422,262,704) (720,242,703) (26,693,887,804)
--------------------- --------------------- --------------------- -------------------- ---------------------
Provision for impairment
Balance at the beginning
of the year (240,233,419) (500,953,423) (2,892,966) (3,995,616) (748,075,424)
Charge for the year (286,755) (12,468,800) (18,908) (1,853,572) (14,628,035)
Disposal during the year 123,199,188 17,387,215 229,828 1,843,489 142,659,720
Balance at the end of the
year (Note (b)) (117,320,986) (496,035,008) (2,682,046) (4,005,699) (620,043,739)
--------------------- --------------------- --------------------- -------------------- ---------------------
Carrying amount
At the end of the year 11,730,712,241 32,065,148,587 181,137,235 353,169,558 44,330,167,621
At the beginning of the year 9,018,528,165 29,540,548,277 228,621,015 376,602,840 39,164,300,297
(a) As at 31 December 2015, the Group’s fixed assets with restrictions imposed
represented: power generators at the carrying value of RMB 971,940,400 (original
cost: RMB 2,549,783,097) (31 December 2014: carrying value of RMB
1,137,751,562 (original cost: RMB 2,542,882,598)) were pledged as collateral for
long-term loans of RMB 346,400,000 (31 December 2014: long-term loans of RMB
346,400,000); and plants and buildings at the carrying value of RMB 177,120,517
(original cost: 210,072,027) were pledged as collateral for long-term loans of RMB
29,400,000 (31 December 2014: nil) (see Note V.31 (2)(b) and 34(1)(b)).
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(b) Impairment of Fixed assets
As at 31 December 2015, the Group’s balance of impairment provision for fixed
assets included: (1) provisions of RMB 481,910,703 for the impairment of fixed
assets related to the generator units of Guangdong Yuejia Electric Co.,Ltd (“Yuejia
Electric”); (2) provisions of RMB 126,877,473 for the impairment of fixed assets
related to the generator units of Xuwen Wind Power; (3) and provisions of RMB
10,598,065 for the impairment of fixed assets related to the generator units of
Guangdong Shaoguan Yuejiang Electric Power Co.,Ltd (“Yuejiang Power”) ; (4) and
provision of RMB 657,498 for the impairment of fixed assets of Maoming Zhenneng
Thermal Power Co.,Ltd (“Maoming Zhenneng”) related to the damage or
retirement of equipment resulting from prolonged service time or idling period.
Impairment of fixed assets related to generator units of Yuejia Electric
As of 31 December 2012, management expected the four generator units of Yuejia
Electric to be gradually shut down by the end of 2015. Therefore, management made
provisions totalling RMB 487,898,352 for impairment of fixed assets.
Approximately RMB 72,673,468 of impairment of fixed assets was written off as a
result of the disposal of some equipment. Pursuant to the notice issued by the
Development and Reform Commission of Guangdong Province in 2013,
management expected the four generator units of Yuejia Electric to be shut down in
early 2016. As Yuejia Electric’s volume of on-grid electricity and the disposal price
of the retiring generator units were forecast to decline, management considered these
were indications for further impairment of generator assets in the remaining
operation period of Yuejia Electric. The Group assessed the recoverable amounts of
the assets at as 31 December 2013 and made another provision of RMB 190,330,782
for impairment of fixed assets accordingly. Meanwhile, management disposed some
production equipment and wrote off RMB 232,900 of impairment of fixed assets. As
at 31 December 2013, the Group recorded a provision of RMB 605,322,766 for the
impairment of fixed assets related to the above generator units of Yuejia Electric.
Management continued to dispose some production equipment in 2014, and wrote
off RMB 74,108 for impairment of fixed assets accordingly. As at 31 December
2014, the Group recorded a provision of RMB 605,248,658 for the impairment of
fixed assets related to the above generator units of Yuejia Electric. There was no
evidence of further impairment of the related assets of Yuejia Electric for the year.
As a result, no provision for further impairment was made. As at 31 December 2015,
the Group recorded a provision of RMB 481,910,703 for the impairment of fixed
assets related to the above generator units of Yuejia Electric, and wrote off RMB
123,337,955 of impairment of fixed assets for the disposal of some of the above
equipment.
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Impairment of generator units of Xuwen Wind Power
In July 2014, super typhoon Rammasun slammed the Yongshi Wind Power Plant
owned by Xuwen Wind Power. Eighteen generator units were destroyed (Cost of the
generator units was RMB 138,358,965, with accumulated depreciation of RMB
11,481,492). Management recorded provisions of RMB 126,877,473 for impairment
of these units against their full carrying amounts, as the units were completely
destroyed. As at 31 December 2015, the fixed assets were still in the clearing
process, thus were yet to be disposed of or reversed.
Impairment of other asset groups
In 2014, Yuejiang Power and Zhanjiang Electric recorded provisions of RMB
33,535,951 for the impairment of fixed assets based on their valuation as some fixed
assets were suspended or retired because of reformation of generator units. The
impaired fixed assets of Zhanjiang Electric were disposed of in 2014, with RMB
17,586,658 of impairment provision written off accordingly.
In 2015, Yuejiang Power and Zhanjiang Electric recorded provisions of RMB
3,146,968 and RMB 10,823,569 for the impairment of fixed assets based on their
valuation as some fixed assets were suspended or retired because of the reformation
of generator units, respectively. Maoming Zhenneng recorded provisions of RMB
657,498 for the impairment of fixed assets related to damage or retirement of
equipment resulting from prolonged service time or idling period. Some of the
impaired fixed assets of Yuejiang Power were disposed of during the year, with
RMB 8,498,196 of impairment provision written off accordingly. The impaired fixed
assets of Zhanjiang Electric were disposed of during the year, with RMB 10,823,569
of impairment provision written off accordingly. The recoverable amount of the
above impaired assets was calculated based the fair value of the fixed assets
determined with reference to the recent transaction prices for similar assets in the
industry less disposal expenses.
(2) Fixed assets acquired under sales and leaseback
2015 2014
Accumulated Net book Accumulated Net book
Item Cost depreciation value Cost depreciation value
Power generator 2,820,280,000 (1,039,861,567) 1,780,418,433 3,131,080,000 (606,636,003) 2,524,443,997
(3) Fixed assets leased out under operating leases
Item Carrying amount
Plant and buildings 54,966,344
Power generator 205,418
Total 55,171,762
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(4) Fixed assets held for sale at the end of the year
As at 31 December 2015, the Group did not have any significant fixed asset held for
sale (2014: Nil).
(5) Fixed assets with pending certificates of ownership
As at 31 December 2014 and 2015, the plants and buildings of some of the Group’s
subsidiaries were still pending certificates of ownership. After consulting the
Group’s legal consultant, management believed that there were no legal obstacles in
obtaining the certificates and no material adverse impact on the normal operation of
the Group will be incurred.
151
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
14 Construction in progress
(1) Construction in progress
2015 2014
Impairment Carrying Impairment Carrying
Item Book value provision amount Book value provision amount
Yuejiang Power 2*600MW
upgrade project - - - 3,787,247,455 - 3,787,247,455
Da Pu Electric 2*600MW
generator construction 1,267,286,429 - 1,267,286,429 541,350,180 - 541,350,180
Bohe Coal Integration
project 2,105,426,029 - 2,105,426,029 1,229,219,826 - 1,229,219,826
Lincang Dayakou
Hydropower Station 984,023,323 - 984,023,323 - - -
Dianbai Reshui wind power
plant project 338,264,433 - 338,264,433 59,452,711 - 59,452,711
Humen Electric 2*1000MW
project 137,354,887 (10,354,156) 127,000,731 137,253,230 (2,916,126) 134,337,104
Xuwen Yongshi Rebuild
project 62,959,412 - 62,959,412 - - -
LeiZhou Hongxinlou wind
power project 49,736,645 - 49,736,645 12,925,651 - 12,925,651
Red Bay No. 5 & 6
generator units 34,640,172 - 34,640,172 40,470,000 - 40,470,000
Other infrastructure projects 458,948,444 - 458,948,444 282,812,028 - 282,812,028
Technology improvement
and other projects 185,999,685 (886,463) 185,113,222 262,111,799 (881,367) 261,230,432
Total 5,624,639,459 (11,240,619) 5,613,398,840 6,352,842,880 (3,797,493) 6,349,045,387
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(2) Movements of major construction projects in progress during the year
including: Interest rate
Balance at the Accumulated interest for
beginning of Addition for Transfer to Balance at the Actual cost / Project capitalised capitalised for capitalisation
Item Budget the year the year fixed assets Other decreases end of the year budget (%) progress interest the year in 2015 (%) Source of funding
(Note (i))
Borrowing,
Yuejiang Power 2*600MW proprietary
upgrade project 5,128,000,000 3,787,247,455 1,142,331,999 (4,929,579,454) - - 96.13% 100.00% - 102,457,052 3.44% funding
Borrowing,
Da Pu Electric 2*600MW proprietary
generator construction 4,807,272,526 541,350,180 3,781,841,217 (2,971,352,443) (84,552,525) 1,267,286,429 89.93% 89.93% 60,207,344 102,537,442 5.93% funding
Borrowing,
proprietary
Bohe Coal Integration project 9,785,950,000 1,229,219,826 894,494,449 (18,288,246) - 2,105,426,029 21.70% 21.70% 60,615,072 36,130,174 5.60% funding
Borrowing,
Lincang Dayakou Hydropower proprietary
Station 998,754,400 - 984,023,323 - - 984,023,323 98.53% 98.53% 34,985,021 34,985,021 5.67% funding
Borrowing,
Dianbai Reshui wind power proprietary
plant project 483,714,800 59,452,711 278,811,722 - - 338,264,433 69.93% 69.93% 7,156,735 5,872,303 4.95% funding
Humen Electric 2*1000MW Proprietary
project 7,789,510,000 134,337,104 101,657 - (7,438,030) 127,000,731 1.77% 1.77% - - - funding
Proprietary
Xuwen Yongshi Rebuild project 186,980,000 - 62,959,412 - - 62,959,412 33.67% 33.67% - - - funding
Borrowing,
LeiZhou Hongxinlou wind power proprietary
project 462,920,000 12,925,651 36,810,994 - - 49,736,645 10.74% 10.74% 301,475 301,475 5.61% funding
Red Bay No. 5 & 6 Proprietary
generator units 7,714,370,000 40,470,000 5,361,501 - (11,191,329) 34,640,172 0.59% 0.59% - - - funding
Lincang Nanrongtian Hydropower
Station technical improvement Proprietary
project 63,491,110 - 83,782,659 (83,782,659) - - 131.96% 100.00% - - - funding
Lincang Gualanzi River
Hydropower Station technical Proprietary
improvement project 22,780,000 - 34,707,308 (34,707,308) - - 152.36% 100.00% - - - funding
Proprietary
Other infrastructure projects N.A 282,812,028 187,677,541 (8,675,079) (2,866,046) 458,948,444 N.A N.A - - - funding
Technology improvement Proprietary
and other projects N.A 261,230,432 413,053,502 (482,951,320) (6,219,392) 185,113,222 N.A N.A - - - funding
Total 6,349,045,387 7,905,957,284 (8,529,336,509) (112,267,322) 5,613,398,840 163,265,647 282,283,467
(i) Other decreases during the year mainly represented the adjustment on the project costs based on the actual costs (previously
accounted for based on estimated project progress) during the year; transfer to intangible assets; and transfer out of upfront expenses
which cannot bring economic benefits.
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(3) Provision for impairment of construction in progress
Project Charge for the year Reason for provision
Humen Electric 2*1000MW Upfront expenses for
project 7,438,030 construction in progress
Zhanjiang Electric technical
improvement project 5,096 old plant renovation
Total 7,443,126
(4) As at 31 December 2015, some generator units under construction were pending the
approval documents. Management expected to obtain the relevant approval
documents as scheduled. In addition, management expected stable cash inflows from
operating activities once the new generator units were put into production. Therefore,
the risk of impairment of such generators was low.
15 Construction materials
Item 2015 2014
Special materials 1,504,247 2,157,295
Special equipment 169,300 4,633,798
Sub-total 1,673,547 6,791,093
Less: Provision - -
Total 1,673,547 6,791,093
16 Fixed assets to be disposed of
Item 2015 2014
Retirement of power equipment
parts due to technology
improvement 2,881,645 1,394,895
Administrative resources 202,396 98,401
Plants and buildings 391,343 -
Total 3,475,384 1,493,296
As at 31 December 2015 and 2014, there were no fixed assets transferred to “fixed
assets to be disposed of” for more than one year.
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
17 Intangible assets
(1) Intangible assets
Associated
projects for
electricity
transmission and Non-patent
microwave Transportation technology and
Item engineering Land use right Sea use right project Concession contract Software others Total
Cost
Balance at the beginning
of the year 442,517,684 1,551,639,042 89,256,779 22,468,672 13,720,736 73,875,462 618,319 2,194,096,694
Additions during the year
- Purchase - 25,344,628 40,649,765 - - 4,570,646 6,271,008 76,836,047
- Transfer from construction
in progress - 84,552,525 - - - 3,844,272 - 88,396,797
- Increase from business combinations not
involving enterprises under common control - 68,339,480 - - - - - 68,339,480
Disposal during the year - - - - - - (6,196,008) (6,196,008)
Balance at the end of the
year 442,517,684 1,729,875,675 129,906,544 22,468,672 13,720,736 82,290,380 693,319 2,421,473,010
----------------------- ----------------------- ----------------------- ----------------------- ----------------------- ----------------------- ----------------------- -----------------------
Accumulated amortisation
Balance at the beginning
of the year (403,724,304) (177,635,457) (12,829,171) (21,300,811) (7,054,279) (49,290,881) (190,989) (672,025,892)
Charge for the year (1,201,573) (37,627,589) (2,416,244) (125,363) (952,142) (9,404,699) (78,461) (51,806,071)
Balance at the end of the
year (404,925,877) (215,263,046) (15,245,415) (21,426,174) (8,006,421) (58,695,580) (269,450) (723,831,963)
----------------------- ----------------------- ----------------------- ----------------------- ----------------------- ----------------------- ----------------------- -----------------------
Impairment provision
Balance of impairment provision at the
beginning and end of the year (33,189,374) - - (1,021,604) - - - (34,210,978)
----------------------- ----------------------- ----------------------- ----------------------- ----------------------- ----------------------- ----------------------- -----------------------
Carrying amount
At the end of the year 4,402,433 1,514,612,629 114,661,129 20,894 5,714,315 23,594,800 423,869 1,663,430,069
At the beginning of the year 5,604,006 1,374,003,585 76,427,608 146,257 6,666,457 24,584,581 427,330 1,487,859,824
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(2) Before 2013, management expected the four generator units of Yuejia Electric to be
gradually shut down by the end of 2015. Therefore, management made a provision of
RMB 23,426,500 for impairment of intangible assets of the use rights of associated
projects for electricity transmission and transformation and microwave engineering,
and transportation engineering as at 31 December 2012 based on the shutdown plan.
As disclosed in Note V.13 (1) (b), further evidence of impairment was detected in the
related asset groups of Yuejia Electric generator units in 2013. As at 31 December
2013, management tested such asset groups for impairment and made a further
impairment provision of RMB 10,784,478 for intangible assets of the use rights of
associated projects for electricity transmission and transformation and microwave
engineering, and transportation engineering of the above four generator units. In
2015, there was no further evidence of impairment in the related asset groups of
Yuejia Electric, therefore no further provision was made.
(3) As at 31 December 2015, the Group had obtained land use right certificates for all its
lands, except for the land use right certificates under application and approval
procedures for the lands with the carrying value of RMB 37,811,419. After
consulting the Group’s legal consultant, management believed that there were no
substantial legal obstacles in obtaining the certificates and no material adverse
impact on the normal operation of the Group will be incurred.
18 Goodwill
Impairment
provision at
Balance at the
Name of investee or the Additions Decreases Balance at beginning
events generating beginning during the during the the end of and end of
goodwill Note of the year year year the year the year
Guangdong Province
Wind Power
Generation Co., Ltd.
(“Guangdong Wind
Power”) (1) 2,449,886 - - 2,449,886 -
Lincang Energy (2) - 25,036,894 - 25,036,894 -
Total 2,449,886 25,036,894 - 27,486,780 -
(1) In 2013, the Group acquired 55% shares in Guangdong Wind Power with a
combined cost of RMB 5,994,670. The excess of the combined cost over the fair
value of the Group’s share of Guangdong Wind Power’s identifiable assets and
liabilities amounted to RMB 2,449,886 and was recognised as good will.
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(2) As stated in Note V. 11(2)(ii), the Company replaced its 14.34% shares in Weixin
Yuntou with a third party’s 51.00% shares in Lincang Energy. The excess of the
combined cost over the fair value of the Company’s share in Lincang Energy’s
identifiable assets and liabilities amounted to RMB 25,036,894, and was recognised
as good will. As the Group acquired equity shares of Lincang Energy at the
beginning of 2015, and Lincang Energy’s business operation did not incurred any
adverse changes from the acquisition date to the balance sheet date, no impairment
provision was made for good will related to Lincang Energy.
19 Long-term deferred expenses
Balance at the
beginning of Additions Amortisation Balance at the
Item the year during the year during the year end of the year
Leased assets
improvement 5,572,416 644,010 (773,326) 5,443,100
Long-term lease charges 25,428,291 - (2,028,166) 23,400,125
Total 31,000,707 644,010 (2,801,492) 28,843,225
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
20 Deferred tax assets and liabilities
(1) Deferred tax assets and liabilities
2015 2014
Deductible or Deductible or
taxable temporary taxable temporary
differences differences
(“()”for taxable Deferred tax assets / (“()”for taxable Deferred tax assets /
temporary liabilities temporary liabilities
Item differences) (“()”for liabilities) differences) (“()”for liabilities)
Deferred tax assets:
Impairment provision 107,427,844 26,374,328 133,188,421 31,140,365
Pre-operating expenses 6,459,331 807,416 9,829,416 1,361,496
Deductible losses 493,320 123,330 - -
Depreciation of fixed assets 66,617,909 16,654,477 66,617,909 16,654,477
Employee benefits payable 70,926,428 17,731,607 49,254,790 12,313,698
Net income from test run included
in construction in
progress 27,816,165 6,874,116 26,896,029 6,604,120
Government grants related to
assets 47,600,568 11,900,142 47,889,337 11,972,334
Amortisation of land use
right 3,072,296 768,073 3,108,146 777,036
Intra-Group transactions 234,495,579 58,623,895 - -
Sub-total 564,909,440 139,857,384 336,784,048 80,823,526
Amount of off-setting (94,480,137) (23,620,033) (82,356,846) (20,589,211)
Amount after off-setting 470,429,303 116,237,351 254,427,202 60,234,315
Deferred tax liabilities:
Changes in fair value of
available-for-sale financial
assets included in capital
reserve (298,021,872) (74,505,468) (200,753,719) (50,188,427)
Net expenses in test run included
in construction in
progress (47,835,721) (11,958,930) (46,892,153) (11,723,038)
Revaluation upon acquisition (97,594,651) (24,398,663) (3,255,066) (813,769)
Sub-total (443,452,244) (110,863,061) (250,900,938) (62,725,234)
Amount of off-setting 94,480,137 23,620,033 82,356,846 20,589,211
Amount after off-setting (348,972,107) (87,243,028) (168,544,092) (42,136,023)
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(2) Details of unrecognised deferred tax assets
Item 2015 2014
Deductible temporary differences 749,873,728 912,430,704
Deductible tax losses 121,380,071 461,474,828
Total 871,253,799 1,373,905,532
(3) Expiration of deductible tax losses for unrecognised deferred tax assets
Year 2015 2014
2015 - 108,707,352
2016 36,164,017 227,073,101
2017 67,959,606 113,780,436
2018 2,504,832 2,637,971
2019 7,350,102 9,275,968
2020 7,401,514 -
Total 121,380,071 461,474,828
Management believed that the tax entity’s taxable income by the expiry date would
be insufficient to offset deductible tax losses. Therefore, the relevant deferred tax
assets were not recognised.
21 Other non-current assets
Item Note 2015 2014
Prepayments for construction
equipment 1,615,366,249 2,773,281,452
Unrealised losses on sale and
leaseback (1) 212,312,445 231,510,352
Prepayments for house purchase 150,799,140 -
Prepayments for land 38,733,601 37,152,901
Total 2,017,211,435 3,041,944,705
(1) Unrealised loss on sale and leaseback represents the remaining value of the
difference between the selling price and the carrying value of the power generation
equipment, amortised according to the depreciation level.
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
22 Short-term loans
(1) Short-term loans by category:
Item Note 2015 2014
Credit loan (a) 6,288,060,000 5,721,000,000
(a) As at 31 December 2015，balance of short-term credit loans provided by Yudean
Finance amounted to RMB 4,315,000,000 (31 December 2014: RMB
4,149,000,000).
(b) As at 31 December 2015, the annual interest rates of the short-term loans ranged
from 3.92% ~ 5.80% (31 December 2014: 5.04% ~ 6.30%).
(2) As at 31 December 2015, all due short-term loans had been repaid (2014: Nil).
23 Bills payable
Item Note 2015 2014
Acceptance bills of other
financial institutions (1) 150,000,000 70,000,000
Bank acceptance bills (2) 443,971,146 251,711,616
Total 593,971,146 321,711,616
The above bills payable are all due within one year.
(1) As at 31 December 2015, the Group had RMB 150,000,000 acceptance bills for
Yuedian Finance (31 December 2014: RMB 70,000,000).
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(2) The Group used acceptance bills to pay for coal or fuel procured from the
Company’s joint venture, Fuel Supply. According to the three-party agreement
signed among the Group, Yudean Finance and Fuel Supply, discounting expenses
will be borne by the Group when Fuel Supply discounts the bills they receive. As at
31 December 2015, the balance of bank acceptance bills issued by the Group and
discounted by Fuel Supply with Yudean Finance amounted to RMB 250,000,000 (31
December 2014: RMB 100,000,000) with discounting rate of 3.87% ~ 4.08% (31
December 2014: 4.98%). The acceptance bills were ranging from three to six months
(31 December 2014: due within six months). The amount of the above discounted
bills payable represented the amount payable to Yudean Finance. The Group paid a
total of RMB 11,027,433 (31 December 2014: RMB 29,317,009) of discounting
interest to Yudean Finance in 2015.
24 Accounts payable
(1) Accounts payable:
Item 2015 2014
Fuel payable 1,169,095,741 1,361,267,039
Materials and spare parts payable 438,231,110 426,407,376
Maintenance and administrative
fees payable 94,009,782 94,009,782
Others 37,890,658 31,610,680
Total 1,739,227,291 1,913,294,877
(2) Significant accounts payable ageing more than one year:
Balance at the end
Item of the year
Maintenance and administrative
fees payable 94,009,782
Fuel payable 11,753,524
Total 105,763,306
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
25 Advances
Details of advances are as follows:
Item 2015 2014
Advances from disposal of
renewable resources 244,798 179,708
As at 31 December 2015, the Group did not have any significant advances ageing
more than one year (31 December 2014: Nil).
26 Employee benefits payable
(1) Employee benefits payable:
Increase
Balance at the from Balance at the
beginning of business Accrued during Decrease during end of the
Note the year combination the year the year year
Short-term
employee
benefits (2) 91,157,716 656,744 1,771,940,712 (1,753,807,570) 109,947,602
Post-employment
benefits
- defined
contribution
plans (3) 1,497,384 - 214,853,137 (216,402,627) (52,106)
Termination
benefits (a) 13,169,143 - 16,250,886 (15,837,603) 13,582,426
Total 105,824,243 656,744 2,003,044,735 (1,986,047,800) 123,477,922
(a) Termination benefits are the internal retirement salaries payable to the employees
due within one year. Details have been disclosed in Note V. 37.
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(2) Short-term benefits
Balance at the Increase from Accrued Balance at the
beginning of business during the Decrease end of the
the year combination year during the year year
Salaries, bonuses,
allowances - 62,400 1,195,940,210 (1,195,940,210) 62,400
Staff welfare 4,221,970 - 137,098,739 (137,091,739) 4,228,970
Social insurance 30,595,525 - 78,810,828 (71,352,019) 38,054,334
- Medical insurance 30,593,711 - 72,717,011 (65,256,388) 38,054,334
- Work-related injury
insurance 1,814 - 3,531,917 (3,533,731) -
- Maternity insurance - - 2,561,900 (2,561,900) -
Housing fund 33,064 - 241,932,124 (241,965,188) -
Labour union fee and staff
and workers’ education fee
54,787,346 594,344 50,989,621 (41,524,023) 64,847,288
Others 1,519,811 - 67,169,190 (65,934,391) 2,754,610
Total 91,157,716 656,744 1,771,940,712 (1,753,807,570) 109,947,602
(3) Post-employment benefits – defined contribution plans
Balance at the
beginning of the Additions Decrease during Balance at the
year during the year the year end of the year
Pension insurance 973,508 150,050,352 (151,079,639) (55,779)
Unemployment insurance 523,876 6,854,156 (7,374,359) 3,673
Annuity - 57,948,629 (57,948,629) -
Total 1,497,384 214,853,137 (216,402,627) (52,106)
163
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
27 Taxes payable
Item 2015 2014
Value added tax 92,133,107 116,279,995
Business tax 2,083,421 2,480,359
Corporate income tax 246,968,994 281,556,788
Individual income tax 40,151,510 31,973,720
Land use tax 905,014 1,190,672
Education surcharges 4,890,004 6,594,531
City maintenance and construction tax 5,613,910 7,976,346
Property tax 830,606 1,240,728
Pollution discharge fee 4,100,793 3,786,528
Price adjustment fund 4,710,949 5,598,220
Others 2,341,046 3,553,457
Total 404,729,354 462,231,344
28 Interests payable
Item 2015 2014
Interest payable for long-term loans with
interest paid in installments and principal
repaid on maturity 43,836,517 51,758,493
Interest payable for debentures 44,398,814 136,065,449
Interest payable for short-term loans 17,257,367 27,132,601
Total 105,492,698 214,956,543
As at 31 December 2015, the Group did not have any overdue interest (31 December
2014: Nil).
164
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
29 Dividend payable
Item Note 2015 2014
Payable to non-tradable
shareholders of the Company (1) 8,640,994 7,918,730
(1) It mainly represents the dividends attributable to non-tradable shareholders pending
for the completion of share reform procedures and will be distributed once the
procedures have been completed.
30 Other payables
(1) Other payables are analysed as follows:
Item 2015 2014
Payment for project warranty 261,377,223 206,292,851
Payment for construction and equipment 3,118,101,571 2,208,802,539
Purchase of unit capacity 4,448,301 33,000,000
Payables to advances from Shaoguan Plant D 9,937,230 25,366,557
Others 142,269,300 103,640,346
Total 3,536,133,625 2,577,102,293
(2) Other payables aged over one year are detailed as below:
As at 31 December 2015, other payables of RMB1,153,892,553 (31 December 2014:
RMB1,411,944,130) aged over one year mainly represent construction payables and
warranty. They have not been settled because the related projects have not completed
their final inspection or are still within their warranty periods.
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
31 Non-current liabilities due within one year
(1) Non-current liabilities due within one year are as follows:
Item 2015 2014
Long-term loans due within one year 1,471,898,209 2,016,890,836
Debentures payables due within one year - 1,999,548,864
Long-term payables due within one year 379,072,443 467,522,644
Total 1,850,970,652 4,483,962,344
(2) Long-term loans due within one year
Item 2015 2014
Pledged loans (a) 70,645,920 131,520,000
Loan secured by mortgages (b) 9,800,000 -
Guaranteed loan (c) 56,525,000 7,625,000
Credit loan 1,334,927,289 1,877,745,836
Total 1,471,898,209 2,016,890,836
(a) As at 31 December 2015, Yuejiang Power’s long-term loans of RMB38,840,000 due
within one year are secured by future revenue from power generation and accounts
receivable (31 December 2014: RMB114,000,000). Zhanjiang Wind Power’s
long-term loans of RMB17,520,000 due within one year are secured by future
revenue from power generation and accounts receivable (31 December 2014:
RMB17,520,000). Xuwen Wind’s long-term loans of RMB14,285,920 due within
one year are secured by future revenue from power generation and accounts
receivable (31 December 2014: Nil).
(b) Lincang Energy’s long-term loans of RMB9,800,000 due within one year are secured
by plant and buildings of RMB177,120,517 (Original cost: RMB210,072,027) (31
December 2014: Nil). Such loans are pledged by future revenue from power
generation and accounts receivable of Xintangfang Hydropower Station.
(c) As at 31 December 2015, Zhanjiang Wind Power provides maximum guarantee for
Xuwen Wind’s long-term loan of RMB8,525,000 (31 December 2014:
RMB7,625,000) due within one year. The Company provides joint and several
guarantee for Yuejiang Power’s long-term loan of RMB48,000,000 (31 December
2014: Nil) due within one year.
(d) As at 31 December 2015, the annual interest rate of long-term loans due within one
year ranges from 0.92% to 6.15% (31 December 2014: from 1.30% to 6.55%). The
loans will be due within 12 months.
166
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(3) Long-term payables due within one year
As at 31 December 2015, the long-term payables due within one year is a sale and
leaseback payable of RMB379,072,443 (i.e. the net balance of RMB464,277,338 less
unrecognised finance cost of RMB85,204,895). As at 31 December 2014, the
long-term payables due within one year are a sale and leaseback payable of
RMB467,522,644 (i.e. the net balance of RMB586,175,359 less unrecognised
finance cost of RMB118,652,715).
As at 31 December 2015, the long-term payables due within one year has been
detailed in note V.36.
32 Provisions
The balance of provisions represents the provision for dispute between the
Company’s subsidiary Guangdong Huizhou Pinghai Power Plant Co.,Ltd (“Pinghai
Power”) and Haoxing abalone farm in Pinghai Town, Huidong County. As at 31
December 2014, balance of such payment amounted to RMB14,000,000. In 2015,
RMB 13,300,000 was paid, and the balance was RMB700,000 at 31 December 2015.
33 Other current liabilities
Item 2015 2014
Short-term financing notes payable 1,711,348,630 808,630,228
167
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Changes in short-term debentures payable:
Balance at the Issuance Amortisation Balance at the
Issuance Maturity Issuance beginning of during the Interests at of discounts Repayments end of the
Name Face value date period amounts the year year face value or premium for the period year
First batch of short-term financing bonds issued
by Guangdong Electric Power Development
Co., Ltd. in 2014 400,000,000 19/08/2014 365 days 400,000,000 407,048,858 - 6,312,329 - (413,361,187) -
Second batch of short-term financing bonds
issued by Guangdong Electric Power
Development Co., Ltd. in 2014 100,000,000 24/12/2014 90 days 100,000,000 100,097,808 - 1,676,712 - (101,774,520) -
First batch of short-term financing bonds issued
by Guangdong Electric Power Development
Co., Ltd. in 2015 1,500,000,000 20/10/2015 270 days 1,500,000,000 - 1,500,000,000 9,599,589 - - 1,509,599,589
First batch of short-term financing bonds issued
by Guangdong Huizhou Pinghai Power Plant
(“Pinghai Power”) in 2014 300,000,000 24/11/2014 365 days 300,000,000 301,483,562 - 12,943,750 - (314,427,312) -
First batch of short-term financing bonds issued
by Guangdong Huizhou Pinghai Power Plant
(“Pinghai Power”) in 2015 200,000,000 09/10/2015 365 days 200,000,000 - 200,000,000 1,749,041 - - 201,749,041
Total 2,500,000,000 808,630,228 1,700,000,000 32,281,421 - (829,563,019) 1,711,348,630
168
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(1) As approved by National Association of Financial Market Institutional Investors, the
Company issued short-term financing bonds at face value of RMB 1,500,000,000
with a 270-day maturity in October 2015. The Company raised RMB1,498,312,500
after deducting an issue expense of RMB1,687,500. The loan, including its principal
and interests, has to be settled at one time. It is subject to an annual interest rate of
3.29% from 22 October 2015.
(2) As approved by National Association of Financial Market Institutional Investors, the
Company’s subsidiary Pinghai Power Plant issued short-term financing bonds at face
value of RMB 200,000,000 in October 2015. Pinghai Power Plant raised
RMB199,400,000 after deducting an issue expense of RMB600,000. The loan,
including its principal and interests, has to be settled at one time. It is subject to an
annual interest rate of 3.80% from 9 October 2015.
34 Long-term loans
(1) Classification of long-term loans
Item Note 2015 2014
Pledged loans (a) 2,455,656,040 416,368,400
Loan secured by mortgages (b) 366,000,000 346,400,000
Guaranteed loan (c) 1,691,350,000 1,743,375,000
Credit loan 16,790,223,870 18,108,773,246
Total 21,303,229,910 20,614,916,646
(a) As at 31 December 2015, the long-term loans of the following subsidiaries are
secured by the future revenue from power generation and accounts receivable:
Item Note 2015 2014
Yuejiang Power (i) 2,110,240,000 49,860,000
Zhanjiang Wind Power (ii) 173,985,000 191,505,000
Xuwen Yongshi Wind Power
project (iii) 171,431,040 175,003,400
Total 2,455,656,040 416,368,400
(i) As at 31 December 2015, the Company’s subsidiary Yuejiang Power borrows
RMB2,149,080,000 from the banking consortium. The loans are secured by Yuejiang
Power’s future revenue from power generation and accounts receivable. The annual
interest rate is from 4.13% to 4.85% and will be matured on 21 June 2020. Included
in the loans is a long-term loan of RMB38,840,000 due within one year (2014:
included in the loans of RMB163,860,000 was a long-term loan of RMB114,000,000
due within one year).
169
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(ii) As at 31 December 2015, the Company’s subsidiary Zhanjiang Wind Power borrows
RMB191,505,000 from the Industrial and Commercial Bank of China. The loan is
secured by Zhanjiang Wind Power’s future revenue from power generation and has
an annual interest rate of 5.09% (2014: 5.90%) with a maturity date on 7 May 2024.
Long-term loan of RMB17,520,000 due within one year (2014: included in the loans
of RMB209,025,000 was a long-term loan of RMB17,520,000 due within one year).
(iii) Based on the Loan Transfer Agreement of Yuedian Yongshi Wind Power Project for
Loan Protocol under the Climate Change Framework of European Investment Banks
between Zhanjiang Wind Power and Department of Finance of Guangdong Province,
the Company’s subsidiary Zhanjiang Wind Power acquired an US loan transferred
from the Loan Protocol under Chinese Climate Change Framework between China
and European investment banks. The loan has been used on Xuwen Yongshi Wind
Power project and is secured by the electricity revenue from the same project. As at
31 December 2015, the balance of the loan above is totalled at USD28,600,000
(equivalent to RMB185,716,960) (2014: USD28,600,000 (equivalent to
RMB175,003,400)), among which balance of the long-term loan due within one year
amounted to USD2,200,000 (equivalent to RMB14,285,920) (2014: Nil)). The loan
will be matured on 2 March 2029 with an annual interest rate from 0.92% to 1.76%
(2014: from 0.92% to 1.55%)). The loans are guaranteed by the Company (Note X.
5(5)).
(b) As at 31 December 2015, the long-term loan of RMB346,400,000 (31 December
2014: RMB346,400,000) is secured by electric utilities in service at carrying value of
RMB971,940,400 (Original cost of RMB2,549,783,097) (31 December 2014:
RMB1,137,751,562 (Original cost of RMB2,542,882,598)). The loans have an
annual interest rate from 4.41% to 5.09% (31 December 2014: from 5.54% to
5.90%). Included in Lincang Energy’s long-term loans of RMB29,400,000 is a
long-term loan due within one year of RMB9,800,000 (31 December 2014: Nil). The
loan is secured by plant and buildings of RMB177,120,517 (Original cost of
RMB210,072,027) (Note V.13(1)(a)) and has an annual interest rate from 4.41% to
4.86% (31 December 2014: Nil). The loan is also pledged by power generation and
accounts receivable of Xintangfang Hydropower station.
(c) As at 31 December 2015, Zhanjiang Wind Power provides guarantee for Xuwen
Wind’s long-term loan of RMB52,000,000. Included in the loan is a long-term loan
due within one year of RMB7,400,000 (2014: RMB52,000,000, among which
balance of the long-term loan due within one year amounted to RMB6,500,000). The
loan has an annual interest rate of 4.90% (2014: 6.22%) with a maturity date on 21
August 2022.
As at 31 December 2015, the balance of the long-term loan borrowed by Xuwen
Wind Power from Bank of Communication Co., Ltd. amounted to RMB7,875,000,
among which balance of the long-term loan due within one year is RMB1,125,000.
The loan is secured by the guarantee (31 December 2014: RMB9,000,000, among
balance of the long-term loans due within one year is RMB1,125,000) provided by
Zhanjiang Wind Power, and has an annual interest rate of 5.65% (2014: 6.55%) with
a maturity date on 5 December 2022.
170
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
As at 31 December 2015, Yudean provides a guarantee for the Company’s long-term
loan of RMB1,500,000,000 (2014: RMB1,500,000,000). The loan has an interest rate
of 5.00% (2014: 5.47%) with a maturity date on 13 August 2020.
As at 31 December 2015, the long-term loan of Yuejiang Power of RMB188,000,000
(31 December 2014: RMB190,000,000, among which balance of long-term loan due
within one year was nil) (Note X.5(5)) is secured by the guarantee provided by the
Company based on its shareholding proportion. Balance of the long-term loan due
within one year included in the loan amounted to RMB48,000,000. The loan has an
interest rate from 5.00% to 6.00% (2014: 6.40%) with a maturity date on 2 July
2019.
35 Debentures payable
(1) Debentures payable
Item 2015 2014
12 Yudean Bond 1,196,029,762 1,195,076,905
171
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(2) Changes in debentures payable
Balance at the Amortisation Repayments Debentures to Balance at the
Maturity Issuance beginning of Interests atof discounts during due within end of the
Name Face value Issuance date period amount the year face value or premium the year one year year
12 Yudean Bond 1,200,000,000 18/03/2013 7 years 1,200,000,000 1,195,076,905 59,400,000 952,857 (59,400,000) - 1,196,029,762
(a) As approved by CSRC, the Company issued book-entry corporate bonds face value of RMB1,200,000,000 (“12 Yedean Bond”) in
March 2013. The Company raised RMB1,193,330,000 after deducting an issue expense of RMB6,670,000. The loan is subject to an
annual interest rate of 4.95% from 18 March 2013 and shall be payable annually on simple interest. As at 31 December 2015,
debentures payable are measured at amortised cost using effective interest method. The effective interest rate is 5.04%.
172
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
36 Long-term payables
Items Note 2015 2014
Sales and leaseback and other
payable (1) 2,874,515,554 3,116,958,015
Less: sales and leaseback and
other payable due
within
1 year (379,072,443) (467,522,644)
Total 2,495,443,111 2,649,435,371
(a) The sales and leaseback is the balance of minimum lease payment less unrecognised
finance cost of sales and leaseback for electric power equipment by subsidiaries -
Jinghai Power, Yuejiang Power and Zhongyue Energy. The Company provided
guarantee for Yuejiang Power’s finance lease based on its 65% equity interest in
Yuejiang Power and signed a counter guarantee contract with Yuejiang Power.
(1) Sales and leaseback and other payable under long-term payables
As at 31 December 2015, the Group’s minimum finance lease payments are as
follows:
Minimum finance lease payments 2015 2014
Within 1 year (inclusive) 464,277,338 586,175,359
Over 1 year but within 2 year (inclusive) 852,664,261 471,049,003
Over 2 year but within 3 year (inclusive) 448,217,202 862,977,162
Over 3 year 1,312,920,933 1,540,378,303
Sub-total 3,078,079,734 3,460,579,827
Less: Unrecognised finance expense (203,564,180) (343,621,812)
Total 2,874,515,554 3,116,958,015
The net balance of finance lease payable due within one year less unrecognised
finance expense is disclosed in note V.31.
173
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
37 Long-term employee benefits payable
Item Note 2015 2014
Termination benefits (a) 61,863,384 67,009,126
Others (b) 42,577,766 -
Sub-total 104,441,150 67,009,126
Less: Payment due within one year (18,614,024) (13,169,143)
Total 85,827,126 53,839,983
(a) According to the Group’s regulations for internal retirement of employees,
employees can apply for early retirement before statutory retirement age. Employees
can obtain salary on a monthly basis by a certain ratio of the original salary until they
reach the statutory retirement age. Management expects the termination benefits to
be paid in the future are determined by the present value of cash flow, when accrued
the above termination benefits. As at 31 December 2015, the Group calculated the
expected expense for each employee eligible for early retirement in each year before
the statutory retirement age in accordance with the related regulations for internal
retirement and estimated the present value of future termination benefits by treasury
bond interest rate of 2.80% to 4.91% (2014: 3.77% to 5.41%) of the same period. On
31 December 2015, the Group transferred the termination benefits of
RMB48,280,958 (2014: RMB53,839,983) due over one year into long-term
employee benefits payable of RMB48,280,958 (2014: RMB53,839,983) in
accordance with the Accounting Standards for Business Enterprises No. 9 -
Employee Compensation effective on 1 July 2014. Termination benefit due within
one year totalled at RMB13,582,426 (2014: RMB13,169,143) are recognised in
employee benefits payable.
(b) According to the relevant regulations in Dongguan, Shaoguan and Zhanjiang,
individual participating basic medical insurance for urban residents shall continue to
make contribution until he reaches the regulated contribution years after he reaches
the statutory retirement age, if his accumulated contribution years do not satisfy the
local regulations. The Group makes provisions for medical insurance by estimating
the present value of cash flow for medical insurance payment. As at 31 December
2015, the Group, by a certain ratio of the original salary, calculated the expected
expense for each employee in each year in accordance with the related regulations
for internal retirement and estimated the present value of future termination benefits
by treasury bond interest rate of 2.80% to 4.91% of the same period. As at 31
December 2015, other long-term employee benefits payable totalled at
RMB42,577,766, and the other long-term employee benefits payable due within
one year amounted to RMB5,031,598 charged into employee benefits payable.
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
38 Special payables
Balance at the
beginning of the Additions Deductions Balance at the
Item year during the year during the year end of the year
Relocation and construction
of windy power plant 4,894,583 - (2,642,609) 2,251,974
Demolition and construction
of pump house 11,297,686 - (11,297,686) -
Extension support funds - 22,460,000 - 22,460,000
Total 16,192,269 22,460,000 (13,940,295) 24,711,974
39 Deferred income
Item Note 2015 2014
Income from sales and
leaseback of fixed assets (1) 236,738 9,712,758
Deferred income from government
grant (2) 103,019,987 88,484,262
Total 103,256,725 98,197,020
(1) Income from sales and leaseback of fixed assets is the balance amortised over the
depreciation period of electrical power equipments based on the difference between
their selling prices and their carrying amounts.
175
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(2) Deferred income from government grant
Recognisi
Balance at the on as non –
beginning of Additions operating Balance at the Related to
Item Note the year during this year income end of the year assets/revenue
5# generation set of
desulfurization
project (a) 12,307,693 - (3,076,923) 9,230,770 Assets
Expansion on flow
reconstruction
project (b) 4,850,312 - (350,625) 4,499,687 Assets
Energy saving funds (c) 2,810,000 6,200,000 (730,000) 8,280,000 Assets
Denitration project (d) 3,508,547 - (307,692) 3,200,855 Assets
Refurbishment on air
preheater (e) 2,997,949 1,150,000 (483,333) 3,664,616 Assets
Tax refund for
PRC-produced
equipment (f) 25,517,767 - (3,000,000) 22,517,767 Assets
Water-freshing project (g) 1,538,462 - (153,846) 1,384,616 Assets
Shajiao A Zhenkou
Pump house (h) 11,902,314 11,297,686 (64,445) 23,135,555 Assets
Dianbai Reshui wind
power plant project (i) 3,000,000 - - 3,000,000 Assets
Special funds for
differential
electricity price (j) 1,433,000 - (115,000) 1,318,000 Assets
Special prize funds of
recycle economy and
energy saving by
Shenzhen city (k) 412,500 3,090,000 (301,845) 3,200,655 Assets
Incentives for energy
efficiency of power
plant by Dongguan
city (l) 6,705,006 3,182,580 (700,120) 9,187,466 Assets
Development fund for
Dayakou Project (m) - 400,000 - 400,000 Assets
Development and
competitiveness
funds from SASAC (n) 10,666,667 - (666,667) 10,000,000 Assets
Port construction fee
and charge (o) 834,045 389,782 (1,223,827) - Revenues
Total 88,484,262 25,710,048 (11,174,323) 103,019,987
(a) This represents the government subsidy granted for the 5# generation set of
desulfurization project of Shajiao Power Plant A (“Shajiao A”), which is a branch of
the Company in 2005. It is amortised over the estimated useful lives of 13 years from
the completion date of the project.
(b) This represents the energy conservation and emission reduction fund received by
Shajiao A for expansion on flow reconstruction project in 2011. It is amortised over
the estimated useful lives of 13 years from the completion date of the project.
(c) This represents the energy-saving funds received by Shajiao A for stepping up the
rubber ball cleaning device for the 5# generation set of desulfurization project in
2012. It is amortised over the estimated useful lives of 13 years from the completion
date of the project.
176
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(d) This represents the grant for denitration project received by Shajiao A in 2013 year.
It is amortised over the estimated useful lives of 13 years from the completion date of
the project.
177
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(e) This represents the energy-saving funds received by Shajiao A for refurnishing 4#
and 5# air preheaters in 2013. The addition of RMB 1,150,000 is the special
energy-saving funds for 2# air preheater. It is amortised over the estimated useful
lives of 13 years from the completion date of the project.
(f) This represents the value-added tax refunded for purchase of PRC-produced
equipment received by Shibeishan. It is amortised over the estimated useful lives of
13 years from the completion date of the project.
(g) This represents the subsidy from government of Zhanjiang granted for water-freshing
project of Zhongyue Energy. It is amortised over the estimated useful lives of 13
years from the completion date of the project.
(h) As required by the local government, the pump house of Shaojiao A located in
Changdi Road, Dianchang town, was required to relocate with a relocation indemnity
of RMB23,200,000. Such indemnity shall be accounted for as special payable upon
receipt, and transferred into deferred income when relocation expenses incur. It is
amortised over the estimated useful lives of 30 years from the completion date of the
project.
(i) This represents the reform and development funds. The grant aims at promoting
Dianbai Wind Power’s Reshui wind power plant project. It has not been amortised as
the project was not completed as at 31 December 2015.
(j) This represents the subsidy received by Yuejiang Power and after the completion of
denitration project. It is amortised over the estimated useful lives of 13 years from
the completion date of the project.
(k) This represents the special prize funds of recycle economy and energy saving in
respect of condensate pump transducer of No.1, No.2 and No.3 generator received by
Guangqian Electric from Shenzhen government. It is amortised over the estimated
useful lives of 13 years from the completion date of the project.
(l) This represents the No.1918 and No. 1692 incentives of energy efficiency of power
plant of Dongguan city received by Shaojiao A in 2014 and 2015 respectively. It is
amortised over the estimated useful lives of 13 years from the completion date of the
project.
(m) This represents the government grant received from Zhenkang government in
relation to Dayakou Hydropower station hit by typhoon “Rammasun” in 2015.
However, such government grant is not amortised as the project has not been
finished as at 31 December 2015.
(n) This represents the reform and development fund received by Zhanjiang Wind Power
in 2011 in relation to Yongshi Wind Project. The Group amortises the fund during
the income period of the project on an average basis.
(o) This represents the construction funds received by Shajiao A for the construction of
Humen Harbour. Import and export of goods and containers handled by port would
178
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
be first levied by the Port Authority in accordance with the provisions of port
charges, of which 50% amount of refund would be used for maintenance of terminals
and frontier waters. The government refunds the harbour construction fee on a
quarterly basis. The Group amortises the maintenance fees when they incur.
40 Other non-current liabilities
Item Note 2015 2014
Capital injection （1） 39,000,000 -
(1) Balance at the end of 2015 represents the capital injection received by Yuejiang
Power from minority shareholders. However, such capital injection was recorded as
other non-current liabilities as the registration for changes of business licence has not
been completed.
41 Share capital
Balance at the end
Item of the year
Restricted shares
- Shares held by stated-owned companies 1,893,342,621
- Shares held by domestic shareholders
Including: Shares held by domestic non-state-owned
companies 4,620,666
Shares held by domestic natural
persons 3,536
Sub-total 1,897,966,823
----------------------
Non-restricted shares
- A shares 2,553,909,163
- B shares 798,408,000
Sub-total 3,352,317,163
----------------------
Total
5,250,283,986
According to the resolution of the general meeting of shareholder held on 21 May
2015, the Company declared stock dividends to all share shareholders by paying 2
shares for every 10 shares totalling at 4,375,236,655 shares on 31 December 2014.
As a result, RMB875,047,331 in total is transferred as the addition to registered
capital (share capital). The registered capital amounted to RMB5,250,283,986 after
the Company changed it on 22 May 2015.
179
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
42 Capital reserve
Additions during
Item Opening balance the year Closing balance
Share premium 4,439,517,054 5,960,812 4,445,477,866
Revaluation reserve 119,593,718 - 119,593,718
Transfer from capital
reserve recognised under
previous accounting
system 20,474,592 - 20,474,592
Investment from Yudean 395,000,000 - 395,000,000
Share of interest in
investees 22,194,784 2,681,295 24,876,079
Others 1,652,919 1,984 1,654,903
Total 4,998,433,067 8,644,091 5,007,077,158
180
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
43 Other comprehensive income
Accrued during the year
Balance at the end
Balance at the of
beginning of the Less: Net-of-tax amount Net-of-tax amount the year
year attributable to transfer to profit Less: attributable to attributable to attributable to
shareholders of or loss previously Income shareholders of non-controlling shareholders of
Item the Company Before-tax amount recognised tax expense the Company interests the Company
Items that will not reclassified to
profit or loss
Including: Remeasurement of
changes
in
liabilities under defined
benefit
plans - - - - - - -
Share of other
comprehensive
income of
an equity- accounted
investee - - - - - - -
Items that may be reclassified to profit
or loss
Including: Share of other
comprehensive income of
an
equity-accounted
investee 21,931,111 261,197 - - 261,197 - 22,192,308
Gain or loss on changes
in
fair value of
available-for-
sale financial assets 150,565,292 97,268,153 - (24,317,038) 72,951,115 - 223,516,407
Total 172,496,403 97,529,350 - (24,317,038) 73,212,312 - 245,708,715
181
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
44 Surplus reserve
Balance at the Balance at the
beginning of the Addition during end
Item year the year of the year
Statutory surplus reserve 1,847,576,221 286,082,403 2,133,658,624
Discretionary surplus reserve 2,963,327,144 715,206,007 3,678,533,151
Total 4,810,903,365 1,001,288,410 5,812,191,775
In accordance with the PRC Company Law and the Company’s Articles of Association,
the Company should appropriate 10% of net profit for the year to the statutory surplus
reserve. The Company can cease appropriation when the statutory surplus reserve
accumulates to more than 50% of the registered capital. The appropriation from
discretionary surplus reserve should be approved by the Board of Directors at the
general meeting of shareholders. The surplus reserve can be used to cover the loss or
increase the share capital upon approval.
According to the resolution at the general meeting of shareholders on 21 May 2015, the
Company appropriated 10% of net profit for 2014, amounted to RMB286,082,403, to
the statutory surplus reserve, and appropriate 25% of net profit for 2014, amounted to
RMB715,206,007, to discretionary surplus reserve.
45 Retained earning
Item Note 2015 2014
Retained earnings at the beginning
of the year 6,952,985,107 5,431,387,393
Add: Net profits for the year
attributable to
shareholders
of the Company 3,237,733,312 3,003,977,134
Less: Appropriation for statutory
surplus reserve 44 (286,082,403) (173,523,454)
Appropriation for
Discretionary surplus
reserve 44 (715,206,007) (433,808,635)
Dividends payable on
ordinary shares (1) (875,047,331) (875,047,331)
Ordinary share
dividend
transferred to share
capital (1) (875,047,331) -
Retained earnings at the end of the
year (2) 7,439,335,347 6,952,985,107
182
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(1) Distribution of common stock dividends during the year
Under the approval of the general meeting of shareholders on 21 May 2015, the
Company distributed RMB 2 of cash dividends for every 10 shares of 4,375,236,655
shares held by the shareholders with total amount of RMB 875,047,331, and
distributed 2 shares for every 10 shares to shareholders, totalling at RMB
875,047,331 transferred into registered capital (share capital).
(2) Retained earnings at the end of the year
The surplus reserve attributable to the parent company appropriated by subsidiaries
this year was RMB235,868,227 (2014: RMB228,128,799).
As at 31 December 2015, the consolidated retained earnings attributable to the
company included an appropriation of RMB2,007,561,876 (2014: RMB
1,771,693,649) to surplus reserve made by the Company’s subsidiaries.
46 Operating income and operating costs
(1) Operating income and operating costs
2015 2014
Item Income Cost Income Cost
Principal activities 25,527,421,644 (18,004,382,092) 28,834,080,676 (20,876,641,483)
Other business 196,389,172 (49,372,667) 212,488,009 (63,458,731)
Total 25,723,810,816 (18,053,754,759) 29,046,568,685 (20,940,100,214)
183
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Details of operating income:
2015 2014
Operating income from principal activities
- Sales of electricity 25,385,066,625 28,695,501,698
- Sales of steam 70,338,411 80,952,215
- Service income 72,016,608 57,626,763
Sub-total 25,527,421,644 28,834,080,676
---------------------- ----------------------
Other businesses income
- Sales revenue from CDM 2,805,445 793,938
- Rental income 11,071,005 9,322,216
- Income from coal ash 171,093,179 190,465,183
- Others 11,419,543 11,906,672
Sub-total 196,389,172 212,488,009
---------------------- ----------------------
Total 25,723,810,816 29,046,568,685
Details in respect of income, expenses and profit from principal activities are
included in segment reporting.
47 Business taxes and surcharges
Item 2015 2014
Business tax 8,128,839 6,407,981
Urban maintenance and construction tax 122,178,031 108,633,455
Education surcharge 99,820,185 89,785,982
Total 230,127,055 204,827,418
184
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
48 General and administrative expenses
Item 2015 2014
Labour cost 310,515,312 301,271,932
Depreciation 45,909,330 49,537,973
Taxation 113,682,709 112,360,522
Sewage charges 28,038,849 44,392,836
Labour insurance 105,314,711 58,804,900
Office expenses 18,327,901 23,905,903
Amortisation of intangible assets 50,575,510 43,144,332
Fire safety expenses 40,804,802 37,983,292
Entertainment expenses 8,556,131 21,300,005
Traffic expenses 11,291,512 16,963,904
Maintenance cost 9,914,787 10,297,882
Agency fee 19,368,819 16,070,645
Bank protection fee 13,051,380 16,438,967
Travel expenses 7,303,369 9,560,879
Rental expenses 9,946,563 11,913,078
Research and development expenses 21,608,868 18,036,130
Expenses on board meetings 1,181,100 3,576,324
Property management fee 26,754,016 25,535,732
Insurance expenses 3,830,063 3,849,378
Afforestation fees 15,443,272 14,237,498
Service charge 7,124,899 8,895,789
Others 53,194,778 54,516,372
Total 921,738,681 902,594,273
185
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
49 Financial expenses
Item 2015 2014
Interest expenses of debt and financing
bonds 115,159,263 186,359,697
Interest expenses of borrowings 1,659,564,930 1,662,575,467
Interest expenses of discounted bills 19,259,944 31,401,657
Amortisation of interest adjustment on
long-term bonds 1,403,262 3,655,288
Less: Capitalised interest expenses (282,283,467) (167,914,751)
Interest income (72,648,355) (64,414,222)
Net exchange income 7,035,148 (1,772,646)
Amortisation of unrecognised finance
expenses 126,881,204 142,486,844
Other financial expenses 7,164,989 12,765,229
Total 1,581,536,918 1,805,142,563
The capitalisation rate at which the borrowing expenses were capitalised this year
ranged from 3.44% to 5.93% (2014：from 5.85% to 6.31%).
50 Impairment losses
Item 2015 2014
Provision for / (Reversal of) other
receivables (18,463) 2,856,886
Inventories 854,742 21,780,246
Fixed assets 14,628,035 135,413,424
Construction in progress 7,443,126 84,906
Total 22,907,440 160,135,462
186
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
51 Investment income (“( )” for losses)
(1) Items under investment income are as below:
Item 2015 2014
Gain from long-term equity investments under
equity method 485,710,643 584,712,096
Gain from disposal of available-for-sale
financial assets 196,924,968 -
Investment income recognised from share
swap 71,253,234 -
Loss from disposal of available-for-sale
financial assets - (808,317)
Investment income from holding of
available-for-sale financial assets 46,909,270 26,698,950
Interest income from entrusted loans - 563,812
Others 600,000 942,588
Total 801,398,115 612,109,129
52 Non-operating income
(1) Items of non-operating income are as follows:
Amount
recognised in
extraordinary
gain and loss in
Item 2015 2014 2015
Total gain on disposal of
non-current assets 2,053,224 3,244,404 2,053,224
Including: Gain on
disposal of
fixed assets 2,053,224 3,244,404 2,053,224
Government grants 57,848,230 31,040,013 16,112,458
Claim indemnity income 35,073,591 252,330 35,073,591
Payables not required to be
settled - 700,610 -
Others 3,455,608 4,874,816 3,455,608
Total 98,430,653 40,112,173 56,694,881
187
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(2) Breakdown of government grants
Item 2015 2014
VAT refund 11,091,879 10,144,257
Amortisation of government grants 11,174,323 8,136,856
Subsidy for dam reinforcement 1,765,474 -
Special incentive on energy conservation and
emission reduction 2,846,311 10,728,900
Allowance on technology 20,000 2,030,000
Subsidy for stock generation 30,643,893 -
Subsidy for financing of capital market 173,750 -
SME support fund 132,600 -
Total 57,848,230 31,040,013
53 Non-operating expenses
Amount
recognised in
extraordinary
gain and loss in
Item 2015 2014 2015
Total loss from disposal of
non-current assets 10,075,720 60,929,606 10,075,720
Including: Loss from
disposal of
fixed assets 10,075,720 60,929,606 10,075,720
Fine for delaying payment 5,642,743 23,617,717 5,642,743
Others 2,889,135 22,696,254 2,889,135
Total 18,607,598 107,243,577 18,607,598
54 Income tax expense
Item 2015 2014
Current tax expense for the year based on tax
laws and related regulations 1,225,822,566 1,262,275,057
Changes in deferred tax assets / liabilities (60,388,679) (21,762,493)
Tax filling differences (2,449,614) 4,943,020
Total 1,162,984,273 1,245,455,584
188
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Reconciliation between income tax expense and accounting profit is as follows:
Item 2015 2014
Profits before taxation 5,793,127,680 5,574,205,573
---------------------- ----------------------
Expected income tax expense at the rate of
25% 1,448,281,920 1,393,551,393
Effect of tax preferential from subsidiaries (788,462) 1,234,293
Non-taxable income (174,378,606) (152,261,376)
Cost, expense and loss not deductible for tax
purposes 26,531,472 20,270,664
Deductible losses of unrecognised deferred
tax assets in current period 1,910,226 2,314,866
Temporary difference on unrecognised
deferred tax assets in current period 11,988,552 22,597,380
Deductible losses of unrecognised deferred
tax assets in prior period (88,393,676) (43,231,541)
Temporary difference on unrecognised
deferred tax assets in prior period (59,717,539) (3,963,115)
Tax filling difference of income tax in prior
years (2,449,614) 4,943,020
Income tax expense 1,162,984,273 1,245,455,584
55 Calculation of basic and diluted earnings per share
(1) Basic earnings per share
The basic earnings per share is calculated by dividing the consolidated net profits
attributable to the ordinary shareholders of the Company by the weighted average
number of outstanding ordinary shares :
2015 2014
Consolidated net profits attributable to the
ordinary shareholders of the Company 3,237,733,312 3,003,977,134
Weighted average number of outstanding
ordinary shares 5,250,283,986 5,250,283,986
Basic earnings per share (RMB/share) 0.62 0.57
189
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Weighted average number of ordinary shares is calculated as follows:
2015 2014
Issued ordinary shares at the
beginning of the year 4,375,236,655 4,375,236,655
Effect of additional issuance of shares
arising from distribution of stock
dividend (Note 1)/(Note 2) 875,047,331 875,047,331
Weighted average number of ordinary
shares at the end of the year 5,250,283,986 5,250,283,986
Note 1: Under the approval of the general meeting of shareholders on 21 May 2015, the
Company distributed 2 shares of stock dividends for every 10 shares of
4,375,236,655 shares held by the shareholders with total amount of
RMB875,047,331 transferred into registered capital (share capital).
Note 2: According to CAS, upon the completion of filing procedures for the above stock
dividend transferred to share capital, the Company considered the effect of weighted
average number of such stock dividends transferred to share capital, as if adjustment
is made to the weighted average number of ordinary share at the end of the previous
year and the earning per share of the previous year is re-calculated accordingly.
(2) Diluted earnings per share
Diluted earnings per share is calculated by dividing consolidated net profit
attributable to ordinary shareholders of the Company (diluted) by the weighted
average number of ordinary shares outstanding (diluted). In 2015 and 2014, the
diluted and basic earnings per share are the same since the Company has no diluted
potential ordinary shares. The Company re-calculated to the diluted earnings per
share of the previous year as the effect of transformation from stock dividend to
share capital which is mentioned in Note 2.
190
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
56 Supplement to income statement
Expenses in income statement categorised by nature:
Item 2015 2014
Operating income 25,723,810,816 29,046,568,685
Less: Raw material used (11,459,301,948) (14,267,430,973)
Employee benefits expenses (1,867,344,212) (1,768,882,893)
Depreciation and amortisation
expense (3,701,616,264) (3,635,994,677)
Impairment losses from non-current
assets (22,071,161) (135,498,330)
Rental expense (15,471,029) (18,739,205)
Financial expense (1,581,536,918) (1,805,142,563)
Other expenses (1,363,164,659) (1,773,543,067)
Operating profit 5,713,304,625 5,641,336,977
57 Cash flow statement
(1) Proceeds relating to other operating activities
Item 2015 2014
Interest income 67,886,794 64,161,434
Government grant 21,697,888 71,583,360
Rental income 8,968,754 9,322,216
Claim and indemnity income 35,073,591 252,330
Others 3,455,608 2,065,450
Total 137,082,635 147,384,790
191
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(2) Payment relating to other operating activities
Item 2015 2014
Sewage charges 65,502,256 71,730,188
Insurance expenses 83,660,025 72,019,608
Entertainment expenses 10,394,788 25,840,912
Fire safety expenses 40,804,802 37,983,292
Office expense 36,858,382 47,907,893
Agency fee 19,368,819 16,070,645
Maintenance expense 9,914,787 10,297,882
Traffic expense 24,116,166 35,546,111
Bank protection fee 13,237,050 17,371,924
Travel expenses 12,827,835 16,075,819
Rental expenses 17,645,723 18,739,205
Research and development expenses 21,608,868 18,036,130
Property management fees 42,197,288 39,697,455
Labour union funds 21,187,737 20,067,616
Utilities cost 26,384,932 20,994,593
Others 21,325,864 17,312,466
Total 467,035,322 485,691,739
(3) Proceeds relating to other investment activities
Item 2015 2014
Fractional share revenue 1,984 51,619
192
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
58 Supplementary information on cash flow statement
(1) Supplement to cash flow statement
(a) Reconciliation from net profit to cash flows from operating activities:
Item 2015 2014
Net profit 4,630,143,407 4,328,749,989
Add: Provision for asset impairment 22,907,440 160,135,462
Depreciation of fixed assets and
investment properties 3,648,575,190 3,591,830,186
Amortisation of intangible assets and
long-term deferred expenses 53,041,074 44,164,491
Losses on disposal of fixed assets,
intangible assets and other
long-term
assets 8,022,496 57,685,202
Financial expenses 1,649,758,920 1,859,179,056
Investment gains (801,398,115) (612,109,129)
Increase in deferred income tax (60,388,679) (21,762,493)
Decrease / (increase) in inventories 288,689,645 (41,332,846)
Decrease in operating receivables 594,071,602 1,062,896,566
Decrease / (increase) in operating
payables 409,014,165 (2,036,641,840)
Net cash flows from operating activities 10,442,437,145 8,392,794,644
(b) Change in cash and cash equivalent:
Item 2015 2014
Cash at the end of the year 5,227,406,725 4,528,277,314
Less: Cash at the beginning of the year (4,528,277,314) (4,377,311,176)
Net increase in cash and cash equivalents 699,129,411 150,966,138
193
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(2) Composition of cash and cash equivalents
Item 2015 2014
Cash
Cash at bank and on hand 5,237,406,725 4,548,277,314
Less: Restricted cash (10,000,000) (20,000,000)
Closing balance of cash and cash
equivalents 5,227,406,725 4,528,277,314
Including: Cash on hand 78,223 88,728
Bank deposits
available on
demand 5,227,328,502 4,528,188,586
59 As at 31 December 2015, assets with restrictions placed on their ownership were as
follows:
Balance at the
beginning of the Additions during Decrease during the Balance at the Reason for
Item Note year the year year end of the year restriction
Cash at bank Margin deposits at bank
and on hand V.1 20,000,000 40,000,000 (50,000,000) 10,000,000
Pledged accounts
Accounts receivables of
receivable V.2 172,806,399 2,572,248,278 (2,246,268,604) 498,786,073 electricity bills
Mortgaged generating
Fixed assets V.13 1,137,751,562 189,160,383 (177,851,028) 1,149,060,917 equipment
Total 1,330,557,961 2,801,408,661 (2,474,119,632) 1,657,846,990
Please see Note V.1, 2(3) and 13 (1) (a) for cash at bank and on hand, fixed assets
and accounts receivable which were used for mortgage and pledge loans.
194
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
195
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
VI Changes in consolidation scope
1 Business combinations involving enterprises not under common control
(1) Business combinations involving enterprises not under common control during the year
Acquiree-from acquisition
date to 31 December 2015
Cost of equity Proportion of
Acquisition date of Acquisition Acquisition Net cash
equity investment investment equity investment method date Basis of acquisition date determination Income Net profit outflow
(%)
Lincang The date when the Company obtain
Energy 05/01/2015 476,965,661 100% Equity swap 05/01/2015 control over the acquiree 16,250,864 1,181,704 （15,856,114）
Lincang Energy was established and headquartered in Lincang city, Yunnan province on 4 March 2005. It mainly engages in
investment, development, construction and operation of electricity projects. Prior to the acquisition, the parent company of Lincang
Energy was Yunan Provincial Power Investment Co., Ltd, and the ultimate holding company was Yunan Investment Group Co., Ltd.
and State-owned Assets Supervision and Administration Commission of Yunnan Provincial People’s Government.
196
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(2) Acquisition cost and goodwill
Acquisition cost Lincang Energy
Carrying
amount Fair value
Non-cash assets 221,275,475 243,252,487
Equity investments held
before acquisition date 184,436,952 233,713,174
Total acquisition cost 405,712,427 476,965,661
Less: share of the fair
value of the
identifiable
net
assets
acquired 451,928,767
Goodwill 25,036,894
As disclosed in Note V.11 (2)(ii), the Company exchanged for 51.00% of the equity in
Lincang Energy held by third parties with 14.34% of equity in Weixin Yuntou on 5
January 2015, after which the Company obtained control over Lincang as the
Company’s shareholding proportion was increased to 100.00% from 49.00%. The
Company determined the acquisition cost including the fair value of 14.34% of equity
in Weixin Yuntou for equity replacement and the fair value of the 49% of equity in
Lincang Energy held prior to the acquisition date according to Zhong He Ping Bao Zi
(2014) No. KMV 1214 and Zhong He Ping Bao Zi (2014) No. KMV 1215 issued by
ZhongHe Appraisal Co., Ltd.
197
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(3) Identifiable assets and liabilities of the acquiree at the acquisition date
Lincang Energy
Carrying
Fair value amount
Assets
Cash on hand and at bank 52,028,777 52,028,777
Fixed assets 208,037,730 183,708,445
Construction in progress 819,005,594 805,034,714
Intangible assets 68,339,480 5,937,213
Other assets 33,134,721 33,134,721
Liabilities
Short-term loans 239,000,000 239,000,000
Non-current liabilities due
within one year 15,800,000 15,800,000
Long-term loans 383,400,000 383,400,000
Special payable 17,470,000 17,470,000
Deferred income tax
liabilities 25,175,608 -
Other liabilities 47,771,927 47,771,927
Net asset 451,928,767 376,401,943
Less: Non-controlling
interests - -
Net assets acquired 451,928,767 376,401,943
If there is an active market for the above identifiable assets, the quoted prices in the
active market are used to establish their fair value; if there is no active market, their
fair value is determined based on the market prices of the same or similar types of
assets which have an active market; if there is no active market for the same asset or
similar types of assets, valuation techniques are used to determine the fair value.
For the above identifiable liability, the payable amount or the present value of the
payable amount is its fair value.
198
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(4) Gain or loss from remeasurement of equity investments held prior to acquisition date
at fair value
Equity investments held prior to acquisition date
Investment income or
Determination loss transferred from
method and key other comprehensive
income related to
Gain or loss from assumption equity investments
Name of Carrying amount Fair value at remeasurement of fair value held prior to
acquiree at acquisition date acquisition date at fair value at acquisition date acquisition date
Income approach
Asset-based
Lincang Energy 184,436,952 233,713,174 49,276,222 approach -
2 Subsidiaries established during the year
Shareholding
Place of Nature of Registered proportion in Acquisition
Name Principal place registration business capital Company (%) method
Guangzhou Electricity
Yudean Power Sales Co., Ltd. Guangzhou city city generation 500,000,000 100.00% Investment
Yudean Qujie Wind Power Zhanjiang Electricity
Generation Co., Ltd. Zhanjiang city city generation 200,000,000 100.00% Investment
Yudean Yangjiang Offshore Yangjiang Electricity
Wind Power Co., Ltd. Yangjiang city city generation 55,000,000 100.00% Investment
199
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
VII Interest in other entities
1 Interest in subsidiaries
(1) Composition of business group
Principal
place of Place of Nature of Registered Shareholding Acquisition
Name business registration business capital percentage (%) method
Direct Indirect
Maoming Zhenneng Thermal
Power Co., Ltd (“Maoming Maoming Electricity
Zhenneng”) Maoming city city generation 1,019,535,500 66.61% - Investment
Guangdong Yudean Jinghai Power Electricity
Co., Ltd. (“Jinghai Power”) Jieyang city Jieyang city generation 2,919,272,000 65.00% - Investment
Zhanjiang Electricity
Zhanjiang Wind Power Zhanjiang city city generation 346,110,000 70.00% - Investment
Guangdong Yudean Anxin
Electric Co.,Ltd (“Anxin Dongguan Electricity
Electric”) Dongguan city city generation 20,000,000 100.00% - Investment
Guangdong Yudean Humen
Electric Co.,Ltd (“Humen Dongguan Electricity
Electric”) Dongguan city city generation 150,000,000 60.00% - Investment
Guangdong Yudean Bohe
Coal Power Co.,Ltd (“Bohe Maoming Electricity
Coal”) Maoming city city generation 1,685,000,000 100.00% - Investment
Business
combination
Zhanjiang Yuheng Electric Co., Zhanjiang Electricity under common
Ltd (“Yuheng Electric”) Zhanjiang city city generation 20,000,000 - 76.00% control
Zhanjiang Electricity
Xuwen Wind Power Zhanjiang city city generation 173,190,000 - 70.00% Investment
Guangzhou Guangzhou Electricity
Yudean Huadu Natural Gas city city generation 120,000,000 65.00% - Investment
Guangdong Yudean Dabu Electric Meizhou Electricity
Co.,Ltd (“Dabu Electric”) Meizhou city city generation 1,000,000,000 100.00% - Investment
Guangdong Yudean Leizhou Wind
Power Co.,Ltd (“Leizhou Wind Electricity
Power”) Leizhou city Leizhou city generation 100,000,000 80.00% 14.00% Investment
Maoming Electricity
Yudean Dianbai Wind Power Maoming city city generation 121,872,900 - 100.00% Investment
Business
Guangdong Yudean Zhanjiang combination
Wind Power Gerneration Zhanjiang Electricity under common
Co.,Ltd (“Zhanjiang Wind”) Zhanjiang city city generation 2,875,440,000 76.00% - control
Business
combination
Guangdong Yuejia Electric Co., Meizhou Electricity under common
Ltd (“Yuejia Electric”) Meizhou city city generation 1,080,000,000 58.00% - control
Business
combination
Shaoguan Electricity under common
Yuejiang Power Shaoguan city city generation 1,070,000,000 90.00% - control
Business
combination
Zhanjiang Zhongyue Energy Co., Zhanjiang Electricity under common
Ltd (“Zhongyue Energy”) Zhanjiang city city generation 1,454,300,000 90.00% - control
Yudean Power Sales Co., Ltd. Guangzhou Guangzhou Electricity
(“Power Sale”) city city generation 500,000,000 100.00% - Investment
Yudean Qujie Wind Power
Generation Co., Ltd. (“Qujie Zhanjiang Electricity
Wind Power) Zhanjiang city city generation 200,000,000 100.00% - Investment
Yudean Yangjiang Offshore Wind
Power Co., Ltd. (“Yangjiang Yangjiang Electricity
Wind Power”) Yangjiang city city generation 55,000,000 100.00% - Investment
Business
combination not
Lincang Yudean Energy Co., Ltd. Electricity under common
(“Lincang Energy”) Lincang city Lincang city generation 396,490,000 100.00% - control
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Principal Place of
place of registratio Nature of Registered Shareholding Acquisition
Name business n business capital percentage (%) method
Direct Indirect
Business
combination
under
Shenzhen Shenzhen Electricity common
Guangqian Electric city city generation 1,030,292,500 100.00% - control
Business
combination
under
Huizhou Electricity common
Huizhou Natural Gas Huizhou city city generation 963,000,000 67.00% - control
Business
combination
under
Huizhou Electricity common
Pinghai Power Huizhou city city generation 1,370,000,000 45.00% - control
Business
combination
under
Jieyang Electricity common
Shibeishan Jieyang city city generation 231,700,000 - 70.00% control
Business
combination
under
Shanwei Electricity common
Red Bay Shanwei city city generation 2,749,750,000 65.00% - control
Business
combination
not under
Guangdong Province Wind Guangzhou Guangzho Electricity common
Power Co., Ltd city u city generation 551,452,900 100.00% - control
Business
combination
not under
Jieyang Electricity common
Huilai Wind Power Jieyang city city generation 20,000,000 - 70.00% control
Guangdong Yuejiang Hongrui
Power Technology
Development Co., Ltd. Shaoguan Shaoguan Electricity
(“Hongrui Technology”) city city generation 20,000,000 - 90.00% Investment
(a) Pinghai power was bought by the Company in 2012 by offered non-public shares
from Yudean. According to the agreement between Yudean and Huaxia Electric,
which holds 40% share interest in Pinghai Power, the delegated shareholder and
director from Huaxia Electric maintain consensus with those of Yudean when
exercising their voting rights during shareholder and board meeting; while after
Yudean transferred its 45% shareholding of Pinghai Power to the Company, the
delegated shareholder and director from Huaxia Electric also maintain consensus
with those of the Company when exercising their voting rights during shareholder
and board meeting. On account of the above facts, with the control power of Pinghai
Power, Huaxia Electric enjoys variable returns through involving in its relevant
activities and has the ability to make use of its power to influence the amount of
returns. Therefore, the Company owns the control power over Pinghai Power.
(b) The voting rights proportion of the Company over its subsidiary: Zhanjiang Wind
Power, Xuwen Wind Power, Leizhou Wind Power, Yuejia Electric and Shibeishan
are 60.00%, 60.00%, 60.00%, 56.00% and 60.00%, respectively, determined based
on relevant rules of these subsidiaries’ articles of association. As such, the
Company’s voting proportion and shareholding percentage are not consistent.
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(2) Material non-wholly owned subsidiaries
Profit and loss Dividend declared Balance of
Proportion of ownership allocated to non- to non-controlling non-controlling
interest held by non- controlling interests interests during interests at the end
Name of the subsidiary controlling interests during the year the year of the year
Jinghai Power 35.00% 339,458,649 326,152,880 1,469,529,168
Zhanjiang Electric 24.00% 109,759,255 87,328,538 998,029,853
Zhongyue Energy 10.00% 11,690,868 5,817,296 157,926,515
Pinghai Power 55.00% 448,691,828 505,118,597 1,110,972,328
Red Bay 35.00% 226,302,670 231,651,012 1,277,297,239
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(3) Key financial information of material non-wholly owned
Key financial information for above subsidiaries without offsetting internal transaction is set out as follows:
Pinghai Power Zhongyue Energy Zhanjiang Electric Jinghai Electric Red Bay
2015 2014 2015 2014 2015 2014 2015 2014 2015 2014
Current assets 1,112,094,074 2,198,924,204 555,657,794 631,073,543 2,694,755,639 2,533,610,385 1,101,435,458 1,561,659,528 991,869,726 1,463,840,846
Non-current assets 5,599,096,449 5,959,689,376 4,779,246,579 4,882,255,394 1,849,562,051 1,992,214,977 9,627,210,855 10,381,718,869 7,502,925,134 8,201,086,069
Total assets 6,711,190,523 8,158,613,580 5,334,904,373 5,513,328,937 4,544,317,690 4,525,825,362 10,728,646,313 11,943,378,397 8,494,794,860 9,664,926,915
Current liabilities 1,041,438,685 994,172,766 2,220,685,027 1,736,162,188 378,318,484 456,081,675 1,542,006,215 2,104,505,777 2,423,774,177 1,311,625,258
Non-current liabilities 3,649,802,150 5,041,897,000 1,534,954,199 2,256,637,324 7,541,487 4,747,289 4,987,985,332 5,678,234,335 2,421,600,000 4,688,600,000
Total liabilities 4,691,240,835 6,036,069,766 3,755,639,226 3,992,799,512 385,859,971 460,828,964 6,529,991,547 7,782,740,112 4,845,374,177 6,000,225,258
Operating income 3,239,311,243 3,837,401,385 1,808,350,497 2,083,466,970 2,040,013,797 2,303,196,128 5,015,690,210 6,075,568,206 3,884,965,789 4,722,896,250
Net profit 815,803,324 907,871,678 116,908,678 64,636,619 457,330,230 394,203,054 969,881,853 1,035,405,970 646,579,058 735,400,037
Total comprehensive income 815,803,324 907,871,678 116,908,678 64,636,619 457,330,230 394,203,054 969,881,853 1,035,405,970 646,579,058 735,400,037
Cash flow from operating
activities 1,749,301,834 1,224,362,651 841,451,871 137,731,751 770,306,905 587,581,392 2,435,723,560 2,509,070,670 1,900,348,504 1,977,432,456
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2 Transactions that cause changes in the Group’s interests in subsidiaries that do not
result in loss of control
（1） Changes in the Group’s interests in subsidiaries:
The Company acquired 6.406% and 1.931% of non-controlling equity in its
subsidiary – Maoming Zhenneng with RMB70,615,500 and RMB21,286,100,
respectively, on 28 October 2015. The relevant transaction cost was RMB551,408.
Subsequent to the transaction, the Company’s shareholding proportion in Maoming
Zhenneng is increased to 66.61% from 58.27%.
（2） Impact from transactions with non-controlling interests and equity attributable to the
shareholders of the Company:
Maoming Zhenneng
Acquisition cost
-Cash 92,453,008
Less: share of net assets in
subsidiaries based on the
shares acquired 98,413,820
Difference (5,960,812)
Adjustment of capital reserve (5,960,812)
3 Interests in joint ventures or associates
Item 2015 2014
Joint ventures
- material joint ventures 601,637,346 597,811,376
Associates
- material associates 4,986,242,742 5,288,926,902
- immaterial associates 336,530,071 717,971,368
Total 5,924,410,159 6,604,709,646
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(1) Material joint ventures or associates
Accounting
treatment for
investment in Strategic to the
Name of Principal place Registered Nature of joint ventures Registered Group’s
enterprise of business place business Shareholding percentage or associates capital activities
Direct Indirect
Joint ventures
Industry Fuel Guangzhou city Guangzhou city Fuel trade 50.00% - Equity method 630,000,000 Yes
Associates
Power
Taishan Electric Taishan city Taishan city generation 20.00% - Equity method 4,669,500,000 Yes
Coal mine
Shanxi Yudean Energy Taiyuan city Taiyuan city business 40.00% - Equity method 1,000,000,000 Yes
Yudean Finance Guangzhou city Guangzhou city Finance 25.00% - Equity method 2,000,000,000 Yes
Yudean Shipping Shenzhen city Shenzhen city Shipping 35.00% - Equity method 2,465,800,000 Yes
Power
Weixin Yuntou Zhaotong city Zhaotong city generation 25.66% - Equity method 2,118,277,400 Yes
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(2) Key financial information of material joint ventures
The following table sets out the key financial information of the Group’s material
joint ventures, adjusted for fair value adjustments at the time of acquisition and the
differences in accounting policies of the Group. The table also reconciles the key
financial information to the carrying amount of the Group’s investments in the joint
ventures when using the equity method:
Industry Fuel
Item 2015 2014
Current assets 4,076,268,154 4,079,683,355
Including: cash and cash equivalents 2,887,513,348 2,745,465,152
Non-current assets 249,325,646 274,183,838
Total assets 4,325,593,800 4,353,867,193
--------------------- ---------------------
Current liabilities 3,121,089,652 3,156,796,026
Non-current liabilities - 218,959
Total liabilities 3,121,089,652 3,157,014,985
--------------------- ---------------------
Net asset 1,204,504,148 1,196,852,208
Non-controlling interests - -
Equity attributable to the shareholders of the
Company 1,204,504,148 1,196,852,208
Group’s share of net assets 602,252,074 598,426,104
Others (614,728) (614,728)
Carrying value of equity investment in joint
ventures 601,637,346 597,811,376
Operating income 15,772,612,090 19,734,268,933
Financial expense (29,221,828) (26,057,748)
Interest income 36,736,862 30,814,439
Interest expense - 1,486,194
Income tax expense 58,151,568 54,674,648
Net profit 157,196,446 166,160,562
Other comprehensive income - -
Total comprehensive income 157,196,446 166,160,562
Dividends received from associates during
the current period 74,772,253 66,524,888
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(3) Key financial information of material associates
The following table sets out the key financial information of the Group’s material associates, adjusted for fair value adjustments at the time
of acquisition and the differences in accounting policies of the Group. The table also reconciles the key financial information to the
carrying amount of the Group’s investments in the associates when using the equity method:
Yudean Shipping Weixin Yuntou Yudean Finance Shanxi Energy Taishan Electric
Item 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014
Current assets 417,158,415 614,192,403 738,200,355 814,365,573 5,864,097,820 5,296,047,633 179,821,429 88,116,751 1,309,902,206 1,869,119,309
Non-current assets 5,066,354,163 5,418,402,047 8,104,713,694 7,823,443,918 11,228,042,973 11,111,720,508 2,430,269,499 2,421,256,448 14,401,761,966 15,233,384,664
Total assets 5,483,512,578 6,032,594,450 8,842,914,049 8,637,809,491 17,092,140,793 16,407,768,141 2,610,090,928 2,509,373,199 15,711,664,172 17,102,503,973
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Current liabilities 1,287,603,159 1,626,332,408 1,188,322,978 848,995,694 14,464,523,324 13,868,879,408 166,074,304 22,937,719 4,912,638,127 5,559,062,528
Non-current liabilities 1,508,978,638 1,704,343,619 5,877,409,775 6,362,471,717 - - 160,000,000 313,200,000 277,500,000 500,000,000
Total liabilities 2,796,581,797 3,330,676,027 7,065,732,753 7,211,467,411 14,464,523,324 13,868,879,408 326,074,304 336,137,719 5,190,138,127 6,059,062,528
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Net assets 2,686,930,781 2,701,918,423 1,777,181,296 1,426,342,080 2,627,617,469 2,538,888,733 2,284,016,624 2,173,235,480 10,521,526,045 11,043,441,445
Non-controlling interests - - - - - - - - - -
Equity attributable to the
shareholders of the Company 2,686,930,781 2,701,918,423 1,777,181,296 1,426,342,080 2,627,617,469 2,538,888,733 2,284,016,624 2,173,235,480 10,521,526,045 11,043,441,445
Group’s share of net assets 940,425,774 945,671,448 456,024,721 570,536,832 656,904,369 634,722,185 913,606,650 869,294,193 2,104,305,209 2,208,688,289
Add: Goodwill derived from
acquiring
investments - - - - 13,325,000 13,325,000 - - - -
Not synchronize with all
shareholders - - （98,348,981） 46,689,040 - - - - - -
Others - (85) - - - - - - - -
Carrying value of equity
investment in associates 940,425,774 945,671,363 357,675,740 617,225,872 670,229,369 648,047,185 913,606,650 869,294,193 2,104,305,209 2,208,688,289
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Yudean Shipping Weixin Yuntou Yudean Finance Shanxi Energy Taishan Electric
Item 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014
Operating income 1,378,367,191 1,717,370,636 748,458,944 1,033,568,328 662,345,486 716,931,715 561,087 - 7,607,483,589 9,455,483,471
Financial expense 151,436,533 193,995,997 310,298,216 317,496,211 (88,953) (203,254) 19,769,501 20,716,039 190,266,292 265,065,763
Interest income 2,567,260 4,512,297 - - 101,843 216,781 660,949 956,624 - -
Interest expense 157,918,073 198,313,702 - - - - 20,426,641 21,666,323 - -
Income tax expense 9,892,626 30,021,871 - (56,007) 83,110,080 84,165,144 - 6,272 637,359,428 763,332,658
Net profit / (loss) 22,394,191 48,491,457 (149,160,784) (195,525,499) 318,870,586 307,708,299 120,781,143 217,345,956 1,528,736,740 2,278,502,380
Other comprehensive income 201,298 (800) - - - - - - - -
Total comprehensive income 22,595,489 48,490,657 (149,160,784) (195,525,499) 318,870,586 307,708,299 120,781,143 217,345,956 1,528,736,740 2,278,502,380
Dividends received from
associates during the current
period 15,835,300 8,977,900 - - 57,535,462 53,750,722 4,000,000 - 410,130,428 420,305,320
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(4) Financial information of immaterial associates is summarised as follows:
2015 2014
Associates:
Aggregate carrying value of investment 336,530,071 717,971,368
Aggregate amount of share of
- Net profit / (loss) 3,771,659 (33,629,924)
- Other comprehensive income 190,748 114,664
- Total comprehensive income / (loss) 3,962,407 (33,515,260)
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
VIII Risks related to financial instruments
The Group has exposure to the following risks from its use of financial instruments
in the normal course of the Group’s operations, which mainly include:
- Credit risk
- Liquidity risk
- Interest rate risk
- Foreign exchange risk
This note presents information about the Group’s exposure to each of the above risks
and their sources and changes during the year, the Group’s objectives, policies and
processes for measuring and managing risks and their changes during the year.
The Group aims to seek the appropriate balance between the risks and benefits from
its use of financial instruments and to mitigate the adverse effects that the risks of
financial instruments have on the Group’s financial performance. Based on such
objectives, the Group’s risk management policies are established to identify and
analyse the risks faced by the Group, to set appropriate risk limits and controls, and
to monitor risks and adherence to limits. Risk management policies and systems are
reviewed regularly to reflect changes in market conditions and the Group’s activities.
(1) Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial
loss for the other party by failing to discharge an obligation. The Group’s credit risk
is primarily attributable to cash at bank and receivables. Exposure to these credit
risks are monitored by management on an ongoing basis.
The cash at bank of the Group is mainly held with well-known financial institutions
in China, which have no any default records of paying deposits and interests.
Management does not foresee any significant credit risks from these deposits and
does not expect that these financial institutions may default and cause losses to the
Group.
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Accounts receivable of the Group are mainly electricity payment due from GPGC,
entrusted loans due from related parties. Management continues to perform credit
assessment on the debtors’ financial position, but usually does not require collaterals
for outstanding debts. In view of the liquidity of outstanding amounts, management
had provision for corresponding bad debts and the actual losses on bad debts were
within their expectation. Based on the past record of debtors and the positive
recovery of accounts receivable, management thinks the Group has no significant
credit risk over accounts receivable.
As at 31 December 2015 and 2014, the debtors that are past due but not impaired
based on individual or collective assessment are not significant.
(2) Liquidity risk
Liquidity risk is the risk that an enterprise will encounter difficulty in meeting
obligations associated with financial liabilities. As disclosed in Note II, the Group’s
current liabilities was more than its current assets of RMB5,402,000,000 (31
December 2014: RMB5,424,000,000) as at 31 December 2015, implying the Group
is exposed to certain liquidity risks. Management ensures the liquidity risk is within a
controllable range with the following measures:
(a) Use the existing financing credit to repay the Group’s liabilities and fulfil the
requirement of the Group’s capital expenditure;
(b) Expedite the approval procedure of relevant documents to secure credit line
subject to the approval of the construction of new units;
(c) Obtain stable cash inflow from operating activities;
(d) Closely monitor and control the payment amount and time required for the
construction of new power station and the purchase of new generators.
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
The following tables show the remaining contractual maturities at the balance sheet
date of the Group’s financial liabilities, which are based on contractual cash flows
(including interest payments computed using contractual rates or, if floating, based
on rates current on 31 December) and the earliest date the Group can be required to
pay:
2015 contractual undiscounted cash flow
More than 1 year More than 2 Carrying amount
Within 1 year or but less than 2 years but less More than 5 at balance sheet
Item on demand years than 5 years years Total date
Short-term loans (6,460,218,032) - - - (6,460,218,032) (6,288,060,000)
Bills payable (593,971,146) - - - (593,971,146) (593,971,146)
Accounts payable (5,389,494,608) - - - (5,389,494,608) (5,389,494,608)
Long-term loans and long-
term loans with a
maturity
of less than 1 year (2,626,747,358) (4,178,954,674) (8,315,163,497) (19,436,917,046) (34,557,782,575) (22,775,128,119)
Debentures payable and
debentures with a
maturity
of less than 1 year (59,400,000) (59,400,000) (1,269,300,000) - (1,388,100,000) (1,196,029,762)
Long-term payables and long-
term payables with a
maturity of less than 1
year (464,277,337) (852,664,261) (1,245,949,367) (515,188,768) (3,078,079,733) (2,874,515,554)
Provisions (700,000) - - - (700,000) (700,000)
Other current liabilities (1,744,261,507) - - - (1,744,261,507) (1,711,348,630)
Total (17,339,069,988) (5,091,018,935) (10,830,412,864) (19,952,105,814) (53,212,607,601) (40,829,247,819)
2014 contractual undiscounted cash flow
More than 1 year More than 2 Carrying amount
Within 1 year or but less than 2 years but less More than 5 at balance sheet
Item on demand years than 5 years years Total date
Short-term loans (5,863,629,738) - - - (5,863,629,738) (5,721,000,000)
Bills payable (321,711,616) - - - (321,711,616) (321,711,616)
Accounts payable (4,713,272,443) - - - (4,713,272,443) (4,713,272,443)
Long-term loans and long-term
loans with a maturity of less
than 1 year (3,212,124,975) (3,003,394,754) (7,519,618,983) (19,958,854,816) (33,693,993,528) (22,631,807,482)
Debentures payable and
debentures with a maturity of
less than 1 year (1,999,548,864) (59,400,000) (178,200,000) (1,214,850,000) (3,451,998,864) (3,194,625,769)
Long-term payables and
long-term payables with a
maturity of less than 1 year (586,175,359) (471,049,003) (1,738,441,440) (664,914,024) (3,460,579,826) (3,116,958,015)
Provisions (14,000,000) - - - (14,000,000) (14,000,000)
Other current liabilities (808,630,228) - - - (808,630,228) (808,630,228)
Total (17,519,093,223) (3,533,843,757) (9,436,260,423) (21,838,618,840) (52,327,816,243) (40,522,005,553)
(3) Interest rate risk
The Group has no other significant interest-bearing assets except for cash at banks
and entrusted loans. The Group earns interest income from cash at banks at floating
rates published by the banks from time to time. Any change in the interest rate
published by the banks is not considered to have significant impact to the Group.
The Group’s interest rate risk mainly arises from long-term interest-bearing
borrowings, including long-term bank borrowings, corporate bonds issued and
finance lease payable. Interest-bearing financial instruments at fixed rates and
variable rates expose the Group to fair value interest rate risk and cash flow interest
risk, respectively. The Group determines the appropriate weightings of the fixed and
floating rate interest-bearing instruments based on the current market conditions and
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
performs regular reviews and monitoring to achieve an appropriate mix of fixed and
floating rate exposure. The Group does not enter into financial derivatives to hedge
interest rate risk.
(a) As at 31 December, the Group held the following interest-bearing financial
instruments:
Fixed rate instruments:
2015 2014
Annual interest Annual interest
Item rate Amount rate Amount
Financial assets
- Cash at bank and on hand 1.43% ~ 3.30% 1,281,000,000 1.49% ~ 3.30% 737,183,709
Financial liabilities
- Long-term loans 1.30% (9,895,525) 1.30% ~ 6.55% (653,624,003)
- Non-current liabilities due
within 1 year 1.30% ~ 6.15% (398,232,440) 1.30% ~ 6.55% (2,031,039,700)
- Debentures payable 5.04% (1,196,029,762) 4.95% (1,195,076,905)
- Other current liabilities 3.29% ~ 3.80% (1,711,348,630) 4.75% ~ 5.10% (808,630,227)
- Bills payable 3.04% ~ 4.08% (593,971,146) 4.70% ~ 5.10% (251,711,616)
Total (2,628,477,503) (4,202,898,742)
Variable rate instruments：
2015 2014
Annual interest Annual interest
Item rate Amount rate Amount
Financial assets
- Cash at bank and on hand 0.01% ~ 0.44% 3,956,328,502 0.35% ~ 1.15% 3,751,093,605
- Long-term receivables 4.93% ~ 7.30% 128,640,631 5.31% ~ 7.05% 121,334,809
- Other receivables - - 5.60% 50,000,000
- Other current assets 0.05% ~ 0.32% 50,859,601 0.13% ~ 0.37% 47,808,208
Financial liabilities
- Short-term loans 3.92% ~ 5.80% (6,288,060,000) 5.04% ~ 6.30% (5,721,000,000)
- Long-term loans 0.92% ~ 6.15% (21,293,334,385) 0.92% ~ 6.55% (19,961,292,643)
- Long-term payables 4.30% ~ 7.38% (2,495,443,111) 5.54% ~ 7.79% (2,649,435,371)
- Non-current liabilities due
within 1 year 0.92% ~ 7.38% (1,452,738,212) 5.40% ~ 7.79% (2,452,922,644)
Total (27,393,746,974) (26,814,414,036)
(b) Sensitivity analysis
As at 31 December 2015, it is estimated that a general increase or decrease of 10
basis points in interest rates, with all other variables held constant, would decrease or
increase the Group’s shareholders’ equity and net profit by RMB20,545,310 (31
December 2014: Approximately RMB20,110,811).
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
The sensitivity analysis above indicates the instantaneous change in the net profit and
equity that would arise assuming that the change in interest rates had occurred at the
balance sheet date and had been applied to re-measure those financial instruments
held by the Group which expose the Group to fair value interest rate risk at the
balance sheet date. In respect of the exposure to cash flow interest rate risk arising
from floating rate non-derivative instruments held by the Group at the balance sheet
date, the impact on the net profit and equity is estimated as an annualised impact on
interest expense or income of such a change in interest rates. The analysis is
performed on the same basis for the previous year.
(4) Foreign exchange risk
Exchange risks that the Group is exposed to are generally related to USD, EUR and
HKD. The Group settles all major business transactions in RMB except for capital
contribution from foreign investors, income from certified emission reduction,
long-term loans and dividends to foreign investors. RMB is still not able to exchange
into other currencies because of the restrictions announced by the Chinese
government on RMB exchange rate and foreign currency control. Therefore, all
monetary assets and liabilities denominated in foreign currencies are exposed to any
fluctuation in exchange rates.
(a) As at 31 December, the Group’s exposure to foreign exchange risk arising from
recognised assets or liabilities denominated in foreign currencies is presented in the
following tables. For presentation purposes, the amounts of the exposure are shown
in Renminbi, translated using the spot rate at the balance sheet date.
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
2015 2014
Foreign currency Translating RMB Foreign currency Translating RMB
balance balance balance balance
Cash at bank and on hand
- USD 20,075 130,358 189 1,156
- HKD 12,879 10,835 12,878 10,159
Other current assets
- USD 7,832,266 50,859,602 7,813,075 47,808,208
Long-term loans
- USD (26,400,000) (171,431,040) (28,600,000) (175,003,400)
- EUR (1,394,679) (9,895,525) (1,709,320) (12,744,003)
Non-current liabilities due
within 1 year
-
- USD (2,200,000) (14,285,920) -
- EUR (314,641) (2,232,440) (314,641) (2,345,836)
Gross balance sheet exposure
- USD (20,747,659) (134,727,000) (20,786,736) (127,194,036)
- EUR (1,709,320) (12,127,965) (2,023,961) (15,089,839)
- HKD 12,879 10,835 12,878 10,159
Notional amounts of forward
exchange contracts used as
economic hedges - - - -
Net balance sheet exposure
- USD (20,747,659) (134,727,000) (20,786,736) (127,194,036)
- EUR (1,709,320) (12,127,965) (2,023,961) (15,089,839)
- HKD 12,879 10,835 12,878 10,159
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(b) The following are the exchange rates for Renminbi against foreign currencies applied
by the Group:
Average rate Reporting date mid-spot rate
2015 2014 2015 2014
USD 6.2284 6.1453 6.4936 6.1190
EUR 6.9141 8.1481 7.0952 7.4556
HKD 0.8034 0.7919 0.8378 0.7889
(c) Sensitivity analysis
Assuming all other risk variables remained constant, a 10% weakening of the
Renminbi against the US dollar, Euro and HK dollar at 31 December would have
increased / (decrease) the Group’s shareholders’ equity and net profit, whose effect is
in Renminbi and translated using the spot rate at the balance sheet date.
Shareholders’
equity Net profit
As at 31 December 2015
USD (10,104,525) (10,104,525)
EUR (909,598) (909,598)
HKD 809 809
Total (11,013,314) (11,013,314)
As at 31 December 2014
USD (9,539,553) (9,539,553)
EURO (1,131,738) (1,131,738)
HKD 762 762
Total (10,670,529) (10,670,529)
A 10% strengthening of the Renminbi against the US dollar, Euro and HK dollar at
31 December would have had the equal but opposite effect on them to the amounts
shown above, on the basis that all other variables remained constant.
216
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
IX Fair value disclosure
The following table presents the fair value information and the fair value hierarchy at
the end of the current reporting period, of the Group’s assets and liabilities which are
measured at fair value at each balance sheet date on a recurring or non-recurring
basis. The level in which fair value measurement is categorised is determined by the
level of the fair value hierarchy of the lowest level input that is significant to the
entire fair value measurement. The levels are defined as follows:
Level 1 inputs: unadjusted quoted prices in active markets that are observable at
the measurement date for identical assets or liabilities;
Level 2 inputs： inputs other than Level 1 inputs that are either directly or
indirectly observable for underlying assets or liabilities;
Level 3 inputs： inputs that are unobservable for underlying assets or liabilities.
1 Fair value of asset and liability measured at fair value at year-end
31 December 2015
Asset Note Level 1 Level 2 Level 3 Total
Available-for-sale
financial assets
Available-for-sale
equity
instruments V.9 553,350,488 - - 553,350,488
31 December 2014
Asset Note Level 1 Level 2 Level 3 Total
Available-for-sale
financial assets
Available-for-sale
equity
instruments V.9 452,482,335 - - 452,482,335
In 2015, there were no significant transfers between instruments in Level 1 and Level
2.
In 2015, there were no changes in valuation technique of fair value.
2 Basis of determining the market price for recurring and non-recurring fair value
measurements categorised within Level 1
For the available-for-sale financial assets in an active market, their fair values are
measured at the quoted price at balance sheet date.
217
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
3 Fair values of financial assets and financial liabilities not measured at fair value
Except for available-for-sale financial assets that measured at historical cost not
being able to gain fair value, the carrying amounts of financial assets and financial
liabilities not measured at fair value are not materially different from their fair
values.
218
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
X Related party relationships and related party transactions
1 Parent of the Company
Percentage of
Place of Shareholding voting rights
Name of parent registration Nature of business Registered capital percentage (%) (%)
Yudean Guangzhou Operation of power 23,000,000,000 67.39% 67.39%
plant, management of
electricity assets,
construction of power
plant and sales of
electricity
2 Details of the Company’s subsidiaries
Details of the Group’s subsidiaries are set out in Note VII.1.
3 Information of joint venture and associates
Please see VII.3 for the Company’s significant joint venture or associates. Related
party transactions with the Gompany during the current and prior year, details of
other joint ventures and associates which have outstanding balances with the
Gompany during the current and prior year are as follows:
Entity name Relationship with the Company
Industry Fuel Joint venture
Taishan Electric Associate
Shanxi Yudean Energy Associate
Yudean Finance Associate
Western Investment Associate
Yudean Shipping Associate
Weixin Yuntou Associate
Huaneng Shantou Wind Power Associate
Jiangkeng Hydropower Associate
Yangshan Zhongxinkeng Electric Associate
219
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
4 Information of other related parties
Relationship with the
Name of other related parties Company
Maoming Thermal Controlled by Yudean
Shaoguan Electric Power Plant Controlled by Yudean
Shaoguan Plant D Controlled by Yudean
Shajiao C Controlled by Yudean
Xinfengjiang Electric Service Controlled by Yudean
Guangdong Province Zhuhai Power Generation Co., Ltd.
(“Zhuhai Electric”) Controlled by Yudean
Zhuhai Jinwan Electric Controlled by Yudean
Biomass Electric Power Controlled by Yudean
Yudean PM Controlled by Yudean
Guangdong Yueyang Electric Power Co., Ltd. (“Yueyang
Electric”) Controlled by Yudean
Yudean Technology Controlled by Yudean
Yudean PI Controlled by Yudean
Zhuhai Grand Power Controlled by Yudean
GYEP Controlled by Yudean
Shenzhen Tianxin Controlled by Yudean
Huangpu Electric Controlled by Yudean
Guangzhou Huangpu Yuehua Power Plant Human
Resources Co., Ltd. (“Huangpu Yuehua Human
Resources”) Controlled by Yudean
Inner Mongolia Yudean Menghua New Energy Co., Ltd.
(“Menghua New Energy”) Controlled by Yudean
Chaokang Investment Controlled by Yudean
Guangdong Yuehua Power Co., Ltd. (“Yuehua Power”) Controlled by Yudean
Guangdong Yangjiang Hailingwan LNG Co., Ltd.
(“Hailingwan LNG”) Controlled by Yudean
Guangdong Lianzhou Yuelian Power Plant Co., Ltd.
(“Lianzhou Power”) Controlled by Yudean
Guangdong Yudean Yunhe Power Co., Ltd. (“Yunhe
Power”) Controlled by Yudean
Guangdong Yuelong Power Generation Co., Ltd.
(“Yuelong Power”) Controlled by Yudean
Guangdong Yudean Zhongshan Thermal Power Plant
(“Zhongshan Thermal”) Controlled by Yudean
Guangdong Port of Yangjiang Harbour Service Co., Ltd.,
Co. (“Port of Yangjiang”) Controlled by Yudean
220
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
5 Related party transactions
(1) Purchase of goods / receiving services (excluding key management personnel
emolument)
The Group
2015 2014
Pricing policy
Type of and decision
related party making % of similar % of similar
Related parties transaction process Amount transactions Amount transactions
Fuel purchase Agreement
Industry Fuel price 8,288,420,119 91.74% 11,300,462,642 91.46%
Material Agreement
GYEP purchase price 105,842,766 16.49% 128,505,527 14.53%
Equipment Agreement
Zhuhai Grand Power purchase price 377,774 0.72% 1,164,188 0.89%
Purchase of
carbon Agreement
Chaokang Investment emission right price - - 600,000 5.99%
Purchase of
carbon Agreement
Yuelong Power emission right price - - 4,800,000 47.90%
Acceptance of
Huangpu Electrical repairment Agreement
Engineering services price 35,620,584 3.53% 29,562,649 2.60%
Acceptance of Agreement
Maoming Thermal leasing service price 1,251,483 7.09% 1,251,483 6.68%
Acceptance of
tugboat Agreement
Yudean Shipping services price 26,375,472 55.29% 28,667,925 53.89%
Acceptance of
property
Yudean PM management Agreement
service price 24,830,755 92.81% 19,086,629 74.97%
Acceptance of
management Agreement
Yudean Technology service price 2,709,896 0.27% 2,339,230 0.21%
Acceptance of
Huangpu Yuehua human
Human resources Agreement
Resources services price 5,760,000 9.38% 3,050,000 4.04%
Acceptance of
human
resources Agreement
Yuehua Power services price - - 2,520,000 29.14%
Acceptance of Agreement
Yuehua Power leasing service price 36,156 0.20% - -
Acceptance of Agreement
Yudean PI i leasing service price 6,205,571 35.17% 6,156,489 32.85%
Shaoguan Electric Acceptance of Agreement
Power Plant leasing service price 62,696 0.36% - -
Acceptance of
advisory Agreement
Chaokang Investment services price 242,380 8.55% 63,672 22.15%
Acceptance of
tugboat Agreement
Port of Yangjiang services price 8,152,039 17.09% 2,828,941 5.32%
Acceptance of
management Agreement
Zhuhai Jinwan Eletric service price 314,371 2.26% - -
221
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(2) Payment of pocket expenses
2015 2014
Shaoguan Electric Power Plant 12,712,137 11,429,869
222
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(3) Sales of goods / rendering of services
The Group
2015 2014
Pricing policy
and decision
Type of related making % of similar % of similar
Related parties party transaction process Amount transactions Amount transactions
Sale income from Agreement
GYEP by-products price 133,516,839 78.04% 123,783,462 64.99%
Chaokang Sales of carbon Agreement
Investment emission right price - - 600,000 100.00%
Provision of
maintenance Agreement
Shajiao C services price 47,051,762 62.38% 42,792,298 74.26%
Provision of
Zhuhai Jinwan maintenance Agreement
Electric services price 5,473,335 7.26% 3,702,600 6.43%
Provision of
Biomass Electric maintenance Agreement
Power services price - - 3,624,795 6.29%
Provision of
maintenance Agreement
Zhuhai Electric services price 2,510,049 3.33% 2,213,675 3.84%
Zhongshan
Thermal Power Provision of Agreement
Plant training services price 1,801,568 100.00% 158,757 93.95%
Provision of Agreement
Yudean Shipping training services price - - 10,228 6.05%
Provision of
maintenance Agreement
Huangpu Electric services price 142,313 0.19% - -
Provision of
maintenance Agreement
Yunhe Power services price 5,974,359 7.92% - -
223
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(4) Leases
The Group as a lessee:
Leasing
Pricing basis payment
Name of Type of of leasing recognised in
Name of lessor Lessee leased assets Starting date Maturity date payment 2015
Maoming Maoming Agreement
Thermal Zhenneng Land lease 1/1/2007 31/12/2037 price 364,861
Maoming Maoming Agreement
Thermal Zhenneng Land lease 1/8/2010 1/8/2040 price 731,217
Maoming Maoming Housing Agreement
Thermal * Zhenneng rental 1/1/2013 31/12/2015 price 155,405
Housing Agreement
Yudean PI * The Company rental 1/1/2015 31/12/2015 price 3,586,584
Billboard Agreement
Yudean PI * The Company rental 1/1/2015 31/12/2015 price 798,720
Sales of Housing Agreement
Yudean PI * electricity rental 24/7/2015 31/12/2015 price 95,387
Guangdong Housing Agreement
Yudean PI * Wind Power rental 1/1/2015 31/12/2015 price 1,724,880
Shaoguan
Electric Power Hongrui Housing Agreement
Plant Technology rental 1/3/2015 Long term price 52,440
Shaoguan
Electric Power Hongrui Equipment Agreement
Plant Technology rental 1/1/2015 Long term price 10,256
Huadu Natural Housing Agreement
Yuehua Power Gas rental 1/1/2015 31/12/2015 price 36,156
Total 7,555,906
* The above contracts will be updated every year and they have been renewed on 1
January 2016.
224
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(5) Guaranty
The Group as the guarantor
Whether the
guarantee has
been fulfilled
Guarantor Guarantee Amount Starting date Maturity date or not
The Yuejiang Power
Company 88,200,000 03/07/2014 02/07/2019 No
The Yuejiang Power
Company 81,000,000 03/07/2014 02/07/2019 No
The Yuejiang Power
Company 29,864,700 28/07/2011 20/07/2018 No
The Lincang Energy
Company 10,290,000 20/01/2007 25/12/2020 No
The Lincang Energy
Company 4,116,000 29/07/2008 29/07/2020 No
The Weixin Yuntou
Company 115,200,000 19/04/2013 18/04/2030 No
The Zhanjiang Wind
Company Power 185,571,960 03/03/2011 02/03/2029 No
The Binlang River
Company 110,000,000.00 18/03/2008 05/06/2026 No
The Binlang River
Company 43,000,000.00 31/10/2008 31/10/2025 No
The Binlang River
Company 2,610,000.00 30/06/2005 30/06/2017 No
The Binlang River
Company 29,000,000.00 19/12/2007 18/12/2022 No
The Binlang River
Company 14,500,000.00 31/08/2005 30/08/2020 No
The Binlang River
Company 43,616,000.00 25/08/2009 24/08/2027 No
The Binlang River
Company 26,854,000.00 14/12/2009 24/08/2027 No
The Binlang River
Company 20,880,000.00 14/11/2008 14/11/2018 No
The Binlang River
Company 43,500,000.00 27/05/2009 27/05/2021 No
The Binlang River
Company 62,450,000.00 29/06/2010 15/07/2020 No
Binglang River was no long a related party of the Group from 17 September 2015 as
the company transferred 29% of equity shares in Binlang River to a third party in
2015 which is mentioned in Note V.11 (2) (i).
The Group and the Company as the guarantee holders (Note V.34 (1) (c))
225
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Whether the
guarantee has
been fulfilled
Guarantor Guarantee Amount Starting date Maturity date or not
The
Yudean Company 1,500,000,000 14/08/2013 13/08/2022 No
(6) Related party funding
(a) According to the 2015 Framework Agreement on Financial Services between the
Company and Yudean Finance, Yudean Finance has committed to offer the Group a
banking facility of less than RMB17 billion in 2015. In 2015, the Group borrowed a
total of RMB12,232,701,463 (2014: RMB11,987,730,000) from Yudean Finance
based on its actual capital requirement. The Group paid an interest of
RMB313,372,347 (2014: RMB325,207,841) for such borrowing (Note Ⅹ.5(10)).
(b) In 2015, the net amount of the Group’s deposits with Yudean Finance increased by
RMB1,385,682,307 (2014: a net increase of RMB223,440,431). Interests due from
Yudean Finance amounted to RMB59,388,723 (2014: RMB49,892,101). In light of
the frequent deposits and withdrawals, only the amount of net change in deposits is
disclosed.
(c) As disclosed in Note V.23, according to the three-party agreement signed among the
Group, Yudean Finance and Industry Fuel, the amount of the bills issued to Industry
Fuel by the Group and discounted with Yudean Finance represents the amount
payable to Yudean Finance. Given the frequent transactions, only the net change of
the balance of commercial acceptance bills discounted with Yudean Finance as at 31
December was disclosed. As at 31 December 2015, the net amount of Yudean
Finance’s discounting of acceptance bills issued by the Group to Industry Fuel
increased by RMB150,000,000. In 2015, the discounting interest charged by Yudean
Finance and borne by the Group which was included in the discounting interest
expenses in the year amounted to RMB11,027,433.
226
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(d) Transactions between the Company and its subsidiaries
In 2015, the net decrease in non-secured loans borrowed by the Company from its
subsidiaries was RMB100,000,000 (2014: net decrease of RMB100,000,000) with an
annual interest rate from 4.14% to 5.32% (2014: from 5.32% to 6.00%). An interest
expense of RMB57,555,042 (2014: RMB62,889,722) was recognised. The balance
of borrowings at the end of 2015 was RMB900,000,000 (2014: RMB1,000,000,000).
The Company only disclosed the net change in loan of capital with its subsidiaries
due to the frequent transaction of funds.
In 2015, the net decrease in non-secured loans provided by the Company to its
subsidiaries was RMB500,000,000 (2014: net increase of RMB350,000,000) with an
annual interest rate from 5.60% to 6.00% (2014: 5.83% to 6.77%). An interest
income of RMB37,105,403 (2014: RMB37,994,941) was recognised. The balance of
borrowings at the end of 2015 was RMB400,000,000 (2014: RMB900,000,000). The
Company only disclosed the net change in loan of capital with its subsidiaries due to
the frequent transaction of funds.
227
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(7) Purchase of capacity of small firepower units
2015
Related party % of similar
Purchaser Seller transaction Pricing policy Amount transaction
Purchase of
Yuejiang Power Yuehua Power units capacity Agreement price 20,000,000 30%
Lianzhou Purchase of Agreement
Bohe Coal Power units capacity price 45,600,000 70%
Total 65,600,000 100%
2014
Related party % of similar
Purchaser Seller transaction Pricing policy Amount transaction
Maoming Purchase of Agreement
Maoming Zhenneng Thermal units capacity price 12,000,000 7%
Shaoguan Plant Purchase of Agreement
Yuejiang Power D units capacity price 56,000,000 31%
Purchase of Agreement
Yuejiang Power Yuehua Power units capacity price 10,000,000 6%
Lianzhou Purchase of Agreement
Bohe Coal Power units capacity price 100,000,000 56%
Total 178,000,000 100%
(8) Allocation of common expenses
The Company’s branches Shajiao A and Shajiao C agreed to share common expenses
based on their agreed allocation basis. In 2015, the common expenses received by the
Group from Shajiao C was RMB3,393,310 (2014: RMB5,740,015).
228
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(9) Interest income
2015 2014
Deposit income paid from Yudean Finance 59,388,723 49,892,101
Weixin Yuntou - 607,511
Lincang Energy - 23,333
Total 59,388,723 50,522,945
Percentage of interest income 81.75% 77.67%
(10) Interest expense
2015 2014
Loan interest paid to Yudean Finance 313,372,347 325,207,841
Bill discounting interest paid to Yudean
Finance 11,027,433 29,317,009
Total 324,399,780 354,524,850
Percentage of interest expenses 19.78% 19.08%
In 2015, the loans provided by Yudean Finance to the Group carry an annual interest
rate from 3.92% to 5.60% (2014: from 5.04% to 6.55%).
(11) Joint investment
As at 31 December 2015, the Group invests in the following subsidiaries, joint
ventures and associates with Yudean:
Percentage of equity attributable to Yudean
Yudean Finance 65%
Industry Fuel 50%
Shanxi Yudean Energy 60%
Western investment 35%
229
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(12) Compensation for The Follow-Ups on Project 101
To purchase assets, the Company issued non-public offering of RMB ordinary shares
(A shares) to Yudean in 2012. According to the Agreement on Purchase of Assets by
Issuing Shares, Yudean promised that, any losses incurred by potential significant
litigation, arbitration, administrative penalties and / or other violation of relevant laws
and regulations before settlement day, which failed to reflect on the amount in the
evaluation report, would be afforded by Yudean. Yudean will compensate the
Company in cash prorated on the basis of the share transaction of target assets, totally
in time in 30 days after the actual losses were to be determined legally. In 2015, the
Company and Yudean signed the Memorandum of Compensation for the Follow-Ups
on Project 101, in regards to the actual losses by targets (Pinghai Power and Red Bay).
Yudean paid the Company RMB16,760,920 yuan in total as compensation.
(13) Remuneration of key management personnel
2015 2014
Remuneration of key management personnel 4,681,890 4,628,802
(14) Commitment to related parties
As at the balance sheet date, the capital expenditures contracted for by the Group
with related parties but not necessary to be recognised in the balance sheet are as
follows:
31 December 2015 31 December 2014
Assets under leased
Yudean PI 6,110,184 3,637,434
Maoming Thermal 26,000,255 27,254,176
Total 32,110,439 30,891,610
(14) Investment commitments
As at 31 December 2015, investment commitments between the Group and its related
parties are disclosed in Note XII.1 (3).
230
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
6 Amount due from/due to related parties
Amount due from related parties
The Group
Item Related party 2015 2014
Cash at bank and on
hand Yudean Finance 4,447,603,905 3,061,921,598
Accounts receivable Shajiao C 24,221,331 18,072,681
Zhuhai Jinwan Electric 168,889 -
Zhuhai Electric 2,018,914 2,590,000
Biomass Electric
Power 3,153,754 3,818,754
Yunhe Power 3,161,929 -
Total 32,724,817 24,481,435
231
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Item Related party 2015 2014
Other receivables GYEP 86,039,277 76,349,187
Lincang Energy - 50,000,000
Shajiao C 1,509,650 517,252
Yudean PI 942,476 885,244
Yudean PM 308,048 289,360
Chaokang Investment - 220,434
Menghua New Energy 380,895 -
Hailingwan LNG 272,703 -
Total 89,453,049 128,261,477
Interest receivable Yudean Finance 10,232,658 5,447,764
Lincang Energy - 23,333
Total 10,232,658 5,471,097
Dividend receivable Shanxi Yudean Energy 4,000,000 -
Prepayment Industry Fuel 1,034,675,387 1,373,757,103
As at 31 December 2014 and 2015, the Group does not provide bad debt impairment
for accounts receivable, other receivables and prepayment of the related parties
above.
232
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Amount due to related parties
The Group
Item Related party 2015 2014
Accounts payable Industry Fuel 1,090,694,619 1,275,148,310
Maoming Thermal 94,009,782 94,009,782
GYEP 27,097,883 46,176,613
Yudean Technology - 163,700
Zhuhai Grand Power - 390,618
Shaoguan Electric - 3,544,826
Total 1,211,802,284 1,419,433,849
Other payables Maoming Thermal 4,200,000 12,000,000
Shaoguan Electric 9,949,230 25,366,557
GYEP 1,384,284 -
Huangpu Electric 12,931,844 14,250,499
Yudean Shipping 4,580,000 20,000
Yudean PM 2,439,992 1,955,783
Xinfengjiang Electric
Service 37,500 75,000
Huangpu Yuehua
Human Resources 3,313,500 1,728,333
Yudean Technology 142,500 21,000
Shenzhen Tianxin 70,000 70,000
Yuehua Power 36,156 226,667
Yueyang Electric - 18,000,000
Total 39,085,006 73,713,839
Interest payable Yudean Finance 8,839,015 10,483,449
Bills payable Industry Fuel - 70,000,000
Yudean Finance 250,000,000 100,000,000
Total 250,000,000 170,000,000
Item Related party 2015 2014
Short-term loans Yudean Finance 4,315,000,000 4,419,000,000
Non-current Yudean Finance 133,781,362 76,500,000
233
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
liabilities due within
one year
Long-term loans Yudean Finance 2,213,072,401 1,963,900,000
The short-term loans and long-term loans borrowed from related parties are detailed
in Note V.22, 31 and 34. Bills payable discounted by Yudean Finance are detailed in
Note V.23. Except for the borrowings and bills payable mentioned above, other
amounts due from/to related parties were non-interest bearing, unsecured current
accounts, which shall be repayable on demand.
XI Capital management
The Group’s primary objectives when managing capital are to safeguard the Group’s
ability to continue as a going concern, so it can continue to provide returns for
shareholders and maintain best capital structure to reduce capital cost.
The Group employs asset-liability ratio to manage its capital structure. The ratio is
based on total liabilities divided by total assets. The strategy adopted in 2015 is the
same as the one in 2014. As at 31 December 2015, the Group’s asset-liability ratio is
57.98% (2014: 59.78%).
234
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
XII Commitments and Contingencies
1 Major commitments
(1) Capital commitments
Item 2015 2014
Buildings and equipments 5,455,254,576 15,771,518,200
The above capital commitments will be primarily used for the construction of new
electric plants and the purchase of new generators. Management expected the above
commitment will be realised gradually in the coming three to five years. It will be
secured by the funds and bank borrowings incurred from the operation of the
Group’s existing generators.
(2) Operating lease commitments
As at 31 December, the total future minimum lease payments under non-cancellable
operating leases of buildings were payable as follows:
Item 2015 2014
Within 1 year (inclusive) 10,885,897 10,420,298
After 1 year but within 2 years (inclusive) 4,557,653 3,209,388
After 2 years but within 3 years (inclusive) 1,909,133 2,552,278
After 3 years 31,181,818 37,229,439
Total 48,534,501 53,411,403
235
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(3) Investment commitments
(a) The Eighth Session of the Board passed the resolution of “Establishment of
Guangdong Yudean Property Self-Insurance Co., Ltd.” during its 9th meeting on 12
November 2015, to enhance the Company’s capability of managing quantitative risks
and insurance. The board agreed to establish Guangdong Yudean Property
Self-Insurance Co., Ltd. with Yudean, the controlling shareholders, in which the
Company contributed RMB147,000,000 and accounted for 49% of the equity. As at
31 December 2015, the Company has not made capital contribution.
(b) The board meeting held on 20 July 2015 passed (vote and sign) the resolution of
“Proposal on the Establishment of Guangdong Yudean Electricity Sale Co., Ltd.”. To
seize the opportunity of power system reform, adapt to the market development and
create new profits, the board agreed the Company to establish a wholly-owned
company - Guangdong Yudean Electricity Sale Co., Ltd. with RMB500,000,000
registered capital. The registered name is subject to the approval of industrial and
commercial department. Subsequent to the initial injection of RMB200,000,000, the
Company will inject the capital in batches based on the business development. As at
31 December 2105, the Company has made the initial injection.
(c) The board meeting held on 20 July 2015 passed (vote and sign) the resolution of
“Capital Increase in Guangdong Yudean Huadu Natural Gas Thermal Power Co.,
Ltd.”. To promote the subsequent development of natural gas thermal power project
in Huadu, the board agreed the Company to increased capital of RMB19,500,000 to
Guangdong Yudean Huadu Natural Gas Thermal Power Co., Ltd. based on its 65%
shareholding proportion. As a 31 December 2015, the Company has not made capital
contribution.
236
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(4) Implementation of prior commitments
(a) The Seventh Session of the Board passed the resolution of “Investment in Guishan
Offshore Wind Power Project” during its first meeting in 2012 on 19 January,
pursuant to which the Company will invest in the construction of South Wind Power
based on its 10% shareholding proportion and take part in Guishan Offshore Wind
Power Project. The registered capital is tentatively set at RMB900,000,000. The
Company is required to invest RMB90,000,000 as 10% of the total capital of the
project. As at 31 December 2015, the Company injected RMB70,000,000 to South
Wind Power.
(b) The Seventh Session of the Board passed the resolution of “Establishment of
Guangdong Yudean Dabu Electric Ltd” during its 11th meeting on 29 October 2012,
pursuant to which the Company will establish Dabu Electric as its wholly-owned
subsidiary. The Company is required to inject RMB1,104,000,000 (20% of the total
project investment RMB5,520,000,000) in batches based on the construction
progress. As at 31 December 2015, the Company invested RMB1,000,000,000 to
Dabu Electric.
(c) The Seventh Session of the Board passed the resolution of “Capital Increase in
Guangdong Yudean Bohe Coal Power Co., Ltd” during its 11th meeting on 29
October 2012, pursuant to which the Company agreed to inject RMB854,570,000 in
cash to Bohe Coal for the construction of terminal project. The injection would be
made in batches based on the capital requirement of the project. On 22 August 2013,
the Seventh Session of the Board passed the resolution of “Investment in Guangdong
Maoming Bohe Electric power generation project” during its 15th meeting, pursuant
to which the Company agreed to inject RMB1,375,000,000 to Bohe Coal for the
construction of Bohe electric plant. The injection of the initial capital of Bohe Coal
of RMB285,000,000 was completed. The subsequent injection of
RMB1,090,000,000 will be made in batches based on the capital requirement of the
project. The foresaid capital commitment is totalled at RMB2,229,570,000. As at 31
December 2015, the Company injected RMB1,685,000,000 to Bohe Coal.
(d) The Sixth Session of the Board agreed to increase its capital in the Company’s
associated company Shantou Wind Power for the construction of a wind power
project in Nanao East Island during its eighth meeting on 29 June 2009. The
Company agreed to inject RMB35,000,000 to Shantou Wind Power based on its 25%
shareholding proportion. The injection would be made in batches based on the
construction progress. As at 31 December 2015, the Company injected
RMB12,470,000 to Shantou Wind Power.
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(e) The Sixth Session of the Board passed the resolution of “Capital Increase in
Guangdong Yudean Jinghai Power Co., Ltd.” during its 11th meeting on 15 April
2010, pursuant to which the Company agreed to inject RMB565,025,500 to its
subsidiary Jinghai Power based on its 65% shareholding proportion. The Company’s
proportion of shareholding in Jinghai Power remains unchanged following the
completion of capital increase. As at 31 December 2015, the Company injected
RMB445,010,000 to Jinhai Power.
(f) The Seventh Session of the Board passed the resolution of “Investment in Offshore
Wind Power Project by Guangdong Yudean Zhanjiang Wind Power Generation Co.,
Ltd.” during its second meeting on 28 June 2011, pursuant to which the Company
agreed to inject RMB140,000,000 to its subsidiary Zhanjiang Wind Power for the
investment in Xuwen offshore wind power project. The injection would be made in
batches based on the actual progress of the project. As at 31 December 2015, the
Company injected RMB75,730,000 to Zhanjiang Wind Power.
(g) The Board passed the resolution (vote & sign) of “Guangdong Yudean Zhanjiang
Wind Power Generation Co., Ltd. to Establish Guangdong Yudean Leizhou Wind
Power Co., Ltd.” on 9 January 2013, pursuant to which the Company established
Leizhou Wind Power based on its 70% shareholding proportion of Zhanjiang Wind
Power. The registered capital of Leizhou Wind Power does not exceed
RMB162,450,000 and is responsible for the development of Hongxinlou wind power
project (49.5MW). Zhanjiang Wind Power shall inject capital in Leizhou Wind
Power through the Company and other shareholders of Zhanjiang Wind Power, in
which the injections of the Company will not surpass RMB106,718,700 and that of
Zhanjiang Wind Power not more than RMB162,450,000. As at 31 December 2015,
the Company has made RMB80,800,000 of capital injection while Zhanjiang Wind
Power has already offered RMB20,000,000.
(h) The Eighth Session of the Board passed the resolution of “Capital Increase in
Guangdong Shaoguan Yuejiang Electric Power Co.Ltd” during its 2nd meeting on 24
August 2014, pursuant to which the Company is required to inject RMB923,000,000
(20% of the total project investment) on its 90% shareholding proportion to promote
the Upgrade Project (2×600MW) of Shaoguan Power invested by Yuejiang Electric,
i.e. to offer supplementary capital injection of RMB232,310,000 on the basis of the
initial injection of RMB690,690,000 approved during 11th meeting of The Sixth
Session of the Board. As at 31 December 2015, the capital injection from the
Company to Yuejiang Electric was RMB923,000,000.
(i) The Eighth Session of the Board passed the resolution of “Capital Increase in
Guangdong Yudean Leizhou Wind Power Co.Ltd” during its 3rd meeting on 28
October 2014, pursuant to which the Board of the Company agreed to inject
RMB80,800,000 in cash to Leizhou Wind Power on its 70% shareholding proportion
to ensure the construction of Hongxinlou Wind Power Project invested by Leizhou
Wind Power. The Company’s shareholding proportion of Leizhou Wind Power has
increased to 80% after capital injection (injection price is based on the asset
assessment result recorded by authorised institutions). As at 31 December 2015, the
Company has injected RMB80,800,000 for this project.
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(j) The Eighth Session of the Board passed the resolution of “Establishment of
Guangdong Yudean Qujie Wind Power Co., Ltd” during its 3rd meeting on 28
October 2014, pursuant to which the Company agrees to establish Guangdong
Yudean Qujie Wind Power Co., Ltd as its wholly-owned subsidiary to promote the
subsequent development and construction of wind power project in Xuwen area of
Zhanjiang. The Company is required to inject RMB231,750,000 for the construction
and operation of Shibanling Wind Power project (total installed capacity of
49.5MW) and Qujie Wind Power project (total installed capacity of 99MW), in
which the first batch of injection is RMB60,000,000 and the rest will be made in
batches based on the project progress. As at 31 December 2015, the Company has
made accumulated capital injection of RMB200,000,000.
(k) The Eighth Session of the Board passed the resolution of “Equity Replacement
between partial stock rights of Weixin Yuntou Yudean Zhaxi Energy Co., Ltd.
(“Weixin Yuntou") and 51% stock rights of Lincang Yuntou Yudean Hydroelectric
Development Co., Ltd. (“Lincang Yuntou”) ” during its 4th meeting on 15 December
2014, pursuant to which the Board of the Company agrees to the equity replacement
between its shareholding proportion of Weixin Yuntou and 51% shareholding
proportion of Lincang Yuntou by Yunnan Provincial Power Development Co., Ltd.,
so as to expand the hydroelectric development in Yunnan and adjust its external
investment structure. The Company’s management is authorized to determine and
sign the concrete equity replacement plan and agreement. As at 31 December 2015,
this equity replacement has been fulfilled.
2 Contingencies
Contingent liability
As at 31 December 2015, the Company provided joint guarantee for bank borrowings
amounted to RMB333,960,000 and finance leases amounted to RMB62,450,000 of
Binlangjiang; bank borrowings amounted to RMB115,200,000 of Weixin Yuntou
(Note Ⅹ.5(5)).
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
XIII Post balance sheet date event
1、 According to a resolution of the Board of Directors (“BOD”) dated 28th Apr
2016, the BOD suggested that the Group appropriate statutory surplus reserve of
RMB 295,088,584 , representing10% of net profit, and discretionary surplus reserve
of RMB 737,721,459 , representing 25% of net profit (2014: statutory surplus reserve
of RMB 286,082,403 and discretionary surplus reserve of RMB715,206,007);
furthermore, the BOD suggested that the Group distribute cash dividends to
shareholders at the rate of RMB 2.3 for every 10 shares, amounting to a total of
RMB 1,207,565,317 (2014: RMB 2 for every 10 shares for shareholders, with a total
of RMB 875,047,331 ). This suggestion is yet to be approved by the shareholders’
meeting. Cash dividends were not recognised as liabilities as at the balance sheet
date since the suggestion was made after the balance sheet date.
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
XIV Other significant events
1 Lease
The Group’s payables related to finance lease are set out in Note V.31 and V.36.
2 Segment reporting
In accordance with internal organisation structure, management requirements and
internal report system, the Group has identified eight reportable segments, which are
independent business units that provide different products or service, or operate in
the different areas. Different businesses or areas require different technologies and
marketing strategies, the Group, therefore, separately manages the production and
operation of each reportable segment and evaluates their operating results
respectively, in order to make decisions about resources to be allocated to these
segments and to assess their performance.
The reportable segments are generating and selling electricity in different areas of
Guangdong.
(1) Segment profits and losses, assets and liabilities
Inter-segment transfers are measured by making reference to the sales to third
parties.
The assets are allocated based on relevant incomes and expenses, assets and
liabilities of segment operation.
For the purposes of assessing segment performance and allocating resources between
segments, the Group’s management regularly reviews the assets, liabilities, revenue,
expenses and financial performance, attributable to each reportable segment on the
following bases:
Segment assets include all tangible, intangible, other long-term assets and current
assets, such as accounts receivable, with the exception of deferred tax assets and
other unallocated corporate assets. Segment liabilities include payables and
advances, bank borrowings and interest payable, long-term and short-term bonds and
dividends payable attributable to the individual segments, but exclude deferred tax
liabilities.
Financial performance is operating income (including operating income from
external customers and inter-segment operating income) after deducting expenses,
depreciation, amortisation and impairment losses attributable to the individual
segments, and interest income and expense from cash balances and borrowings
managed directly by the segments. Inter-segment sales are determined with reference
to prices charged to external parties for similar orders.
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Information regarding the Group’s reportable segments set out below is the measure of segment profit or loss and segment assets and
liabilities reviewed by the chief operating decision maker or is otherwise regularly provided to the chief operating decision maker,
even if not included in the measure of segment profit or loss and segment assets and liabilities:
The Company Jinghai Power Pinghai Power Red Bay Maoming Zhenneng
Item 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014
Revenue from external customers 2,165,294,698 2,648,177,505 5,015,690,210 6,075,568,206 3,238,860,035 3,837,401,385 3,884,965,789 4,722,896,250 1,636,589,131 1,825,360,530
Inter-segment revenue 49,296 89,082 - - 451,208 - - - - -
Investment gain in associates and
joint ventures 480,914,756 582,033,705 - - - - - - - -
Impairment losses - 1,502,097 - - - - (2,327) (38,368) (657,498) -
Depreciation and amortisation (151,647,058) (157,747,756) (815,617,402) (835,713,042) (384,306,315) (381,288,939) (723,782,992) (715,441,824) (249,462,963) (245,390,057)
Interest income 8,565,091 8,243,482 2,560,153 2,422,080 14,592,781 8,853,848 5,646,132 6,966,001 1,865,755 1,642,093
Interest expense (292,447,317) (367,430,385) (351,033,273) (429,572,688) (262,880,303) (260,303,854) (250,825,293) (336,581,102) (106,092,989) (119,390,829)
Total profit (“( )”for total loss) 852,623,399 740,690,762 1,294,178,690 1,381,069,552 1,074,450,184 1,209,121,550 864,040,464 984,786,861 191,337,898 114,171,885
Income tax expense (52,265,028) (26,895,571) (324,296,837) (345,663,582) (258,646,860) (301,249,872) (217,461,406) (249,386,824) (44,142,829) (29,450,610)
Net profit (“( )”for net loss) 800,358,371 713,795,191 969,881,853 1,035,405,970 815,803,324 907,871,678 646,579,058 735,400,037 147,195,069 84,721,275
Total assets 10,490,113,735 11,008,105,214 10,728,646,313 11,943,378,397 6,711,190,523 8,158,613,580 8,477,987,671 9,648,120,308 3,342,686,769 3,634,783,645
Total liabilities 5,699,558,166 6,774,673,479 6,529,991,547 7,782,740,111 4,691,240,835 6,036,069,766 4,845,374,177 6,000,225,258 2,144,610,783 2,506,975,719
Other items:
- Operating income from
principal activities 2,130,075,020 2,612,429,707 4,990,165,086 6,046,296,248 3,197,768,004 3,791,762,399 3,873,064,835 4,707,053,492 1,625,823,379 1,814,508,950
- Operating cost from principal
activities (1,599,104,824) (2,014,433,226) (3,244,422,145) (4,121,501,320) (1,846,384,565) (2,261,794,891) (2,647,427,616) (3,257,072,308) (1,285,348,515) (1,518,645,353)
- Investments in associates
and joint ventures 5,866,863,217 6,546,533,591 - - - - - - - -
- The amounts of additions to
non-current assets other
than long-term equity
investments 490,138,423 (187,033,776) (759,830,990) (923,043,664) (360,592,927) (347,025,141) (698,161,517) (523,088,015) (184,813,729) (142,512,765)
242
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Zhanjiang Electric Zhongyue Energy Others Elimination Total
Item 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014
Revenue from external customers 2,031,283,448 2,295,998,778 1,808,350,497 2,083,466,970 5,942,777,008 5,557,699,061 - - 25,723,810,816 29,046,568,685
Inter-segment revenue 8,730,349 7,197,350 - - 47,413,708 49,898,635 (56,644,561) (57,185,067) - -
Investment gain in associates and
joint ventures - - - - 4,795,887 2,678,391 - - 485,710,643 584,712,096
Impairment losses (11,662,618) (19,322,745) - - (10,584,997) (142,276,446) - - (22,907,440) (160,135,462)
Depreciation and amortisation (213,483,688) (229,433,184) (348,593,140) (323,937,050) (813,220,463) (745,568,015) (1,502,243) (1,474,810) (3,701,616,264) (3,635,994,677)
Interest income 18,506,045 14,898,266 4,502,676 4,286,283 37,294,745 17,102,169 (20,885,023) - 72,648,355 64,414,222
Interest expense - - (194,063,102) (209,812,370) (247,989,192) (221,976,012) 65,346,333 86,503,038 (1,639,985,136) (1,858,564,202)
Total profit (“( )”for total loss) 603,293,718 523,300,726 157,868,762 90,006,963 969,890,855 565,498,885 (214,556,290) (34,441,611) 5,793,127,680 5,574,205,573
Income tax expense (145,963,488) (130,380,662) (40,960,084) (25,370,344) (139,462,347) (138,089,152) 60,214,606 1,031,033 (1,162,984,273) (1,245,455,584)
Net profit (“( )”for net loss) 457,330,230 392,920,064 116,908,678 64,636,619 830,428,509 427,409,733 (154,341,685) (33,410,578) 4,630,143,407 4,328,749,989
Total assets 4,526,264,386 4,502,867,697 5,334,904,373 5,513,328,938 25,880,002,056 17,425,440,446 (3,571,861,683) (2,749,812,373) 71,919,934,143 69,084,825,852
Total liabilities 385,859,971 460,828,964 3,748,955,330 3,984,317,069 16,879,389,591 10,395,413,474 (3,227,241,654) (2,640,637,697) 41,697,738,746 41,300,606,143
Other items:
- Operating income from
principal activities 2,021,383,912 2,286,083,414 1,794,091,466 2,067,518,516 5,955,263,827 5,564,969,835 (60,213,884) (56,541,885) 25,527,421,644 28,834,080,676
- Operating cost from principal
activities (1,368,827,911) (1,689,440,233) (1,403,392,993) (1,708,787,884) (4,675,654,013) (4,368,369,062) 66,180,490 63,402,794 (18,004,382,092) (20,876,641,483)
- Investments in associates
and joint ventures - - - - 57,546,942 64,684,916 - (6,508,861) 5,924,410,159 6,604,709,646
- The amounts of additions to
non-current assets other than
long-term equity investments (137,748,565) (84,959,984) (304,991,662) (167,812,957) 6,299,299,278 4,021,074,079 (768,169,097) 153,840,644 3,575,129,214 1,799,438,421
243
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(2) Geographical information
The Group’s operating income comes from the development and operation of electric
plants in China and all assets are in China.
(3) Major customer
In 2015, the revenue from GPGC and its subsidiaries was RMB25,368,815,761
(2014: RMB28,695,501,698), which took up 99% of the Group’s operating income
(2014: 99%).
244
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
XV Notes to significant items in the Company’s financial statement
1 Accounts receivable
(1) Accounts receivable by customer type:
Type of customers 2015 2014
Third parties 134,539,664 233,268,283
(2) The ageing analysis of accounts receivable is as follows:
As at 31 December 2015, the Company’s accounts receivable are aged within one
year. The ageing is counted starting from the date when accounts receivable are
recognised. Management considers the bad debt risk is comparatively insignificant
and therefore has not provided for bad debts (31 December 2014: nil).
245
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(3) Accounts receivable by category
2015 2014
Provision for bad Carrying Provision for bad Carrying
Book value and doubtful debts amount Book value and doubtful debts amount
Percentage Percentage Percentage Percentage
Category Note Amount (%) Amount (%) Amount (%) Amount (%)
Individually significant and
assessed individually for
impairment 134,539,664 100% - - 134,539,664 233,268,283 100% - - 233,268,283
Note: This type includes accounts receivable that are individually assessed but not impaired.
246
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
2 Other receivables
(1) Other receivables by customer type:
Customer type 2015 2014
Entrusted loans 300,000,000 350,000,000
Advance - 500,146
Petty cash 529,203 559,514
Others 17,953,845 9,793,582
Sub-total 318,483,048 360,853,242
Less: Provision for bad debts - -
Total 318,483,048 360,853,242
(2) The aging analysis of other receivables is as follows:
Ageing 2015 2014
Within 1 year (inclusive) 316,937,428 359,068,791
After 1 year but within 2 years (inclusive) - 488,831
After 2 years but within 3 years (inclusive) 276,183 117,436
After 3 years 1,269,437 1,178,184
Total 318,483,048 360,853,242
The ageing is counted starting from the date when accounts receivable for
recognised. Management considers the bad debt risk is comparatively insignificant
and therefore has not provided for bad debts (31 December 2014: nil).
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(3) Other receivables by category
2015 2014
Provision for bad Carrying Provision for bad Carrying
Book value and doubtful debts amount Book value and doubtful debts amount
Percentage Percentage Percentage Percentage
Category Note Amount (%) Amount (%) Amount Amount (%) Amount (%)
Individually significant and
assessed individually for
impairment 313,536,154 98.45% - - 313,536,154 356,573,505 98.81% - - 356,573,505
Individually insignificant but
assessed individually for
impairment 4,946,894 1.55% - - 4,946,894 4,279,737 1.19% - - 4,279,737
Total 318,483,048 100% - - 318,483,048 360,853,242 100% - - 360,853,242
Note: This type includes other receivables that are individually assessed but not impaired.
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(4) Addition, recovery or reversal, and write-off of provision for bad and doubtful debts
during the year
2015 2014
Balance at the beginning of the year - -
Additions during the year - -
Recovered or reversals during the year - 1,502,097
Write-off during the year - (1,502,097)
Balance at the end of the year - -
(5) The Company’s five largest closing balances of other receivables by debtor are as
follows:
Provision for
Balance % of other bad and
at the end receivables in doubtful debts
Debtor Nature of loan of the year Aging total at year-end
Less than 1
Bohe Coal Entrusted loan 300,000,000 year 94.92% -
Less than 1
GYEP Daily operation 13,536,154 year 4.28% -
Less than 1
Shaojiao C Daily operation 1,509,650 year 0.48% -
Over 5
Yudean PI Daily operation 597,764 years 0.19% -
Guangdong Dongguan Fuel
Branch, Sinopec Sales Co., Long-term Less than 1
Ltd deposit 400,100 year 0.13% -
Total 316,043,668 100.00% -
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
3 Long-term equity investments
(1) Long-term equity investments are categorised as follows:
2015 2014
Provision for Carrying Provision for Carrying
Item Book value impairment amount Book value impairment amount
Investment in subsidiaries 17,177,271,604 (455,584,267) 16,721,687,337 15,560,929,157 (455,584,267) 15,105,344,890
Investment in joint ventures 601,637,346 - 601,637,346 597,811,376 - 597,811,376
Investment in associates 5,265,225,871 - 5,265,225,871 5,948,722,215 - 5,948,722,215
Total 23,044,134,821 (455,584,267) 22,588,550,554 22,107,462,748 (455,584,267) 21,651,878,481
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(2) Investment in subsidiaries:
Impairment
Opening Impairment provision for
Name of investee balance Increase Decrease Closing balance provision the year
Zhanjiang Electric 2,185,334,400 - - 2,185,334,400 - -
Yuejia Electric 701,279,338 - (69,600,000) 631,679,338 - (455,584,267)
Maoming Zhenneng 595,005,970 92,453,008 - 687,458,978 - -
Jinghai Power 1,930,395,668 - - 1,930,395,668 - -
Zhanjiang Wind Power 242,277,000 - - 242,277,000 - -
Zhongyue Energy 1,150,248,115 - - 1,150,248,115 - -
Humen Power 90,000,000 - - 90,000,000 - -
Anxin 20,000,000 - - 20,000,000 - -
Bohe Electric 1,385,000,000 300,000,000 - 1,685,000,000 - -
Pinghai Power 720,311,347 - - 720,311,347 - -
Red Bay 2,220,023,386 - - 2,220,023,386 - -
Huizhou Natural Gas 845,846,646 - - 845,846,646 - -
Guangqian Electric 1,353,153,223 - - 1,353,153,223 - -
Yuejiang Power 856,694,674 - - 856,694,674 - -
Huadu Natural Gas 78,000,000 - - 78,000,000 - -
Dapu Power 700,000,000 300,000,000 - 1,000,000,000 - -
Province Wind Power 487,359,390 55,000,000 - 542,359,390 - -
Leizhou Wind Power - 80,800,000 - 80,800,000 - -
Qujie Wind Power - 200,000,000 - 200,000,000 - -
Electricity Sale - 230,000,000 - 230,000,000 - -
Lincang Energy - 427,689,439 - 427,689,439 - -
Total 15,560,929,157 1,685,942,447 (69,600,000) 17,177,271,604 - (455,584,267)
Relevant information of the Company’s subsidiaries is set out in Note VII.1.
As disclosed in Note V.13 (1) (b), management had anticipated that the four
generator units of Yuejia Electric to be shut down successively around 2016.
Therefore, the Company’s management has provided for an impairment (a total of
RMB455,584,267) on the difference between the Company’s entitlement in Yuejia
Electric’s equity and its investment costs in Yuejia Electric in 2009, 2011and 2013
after assessing the recoverable amounts of this long-term equity investment.
As at 31 December 2015, the balance of impairment provision for long-term equity
investments of Yuejia Electric was RMB455,584,267 (2014: RMB455,584,267).
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
(3) Investment in joint ventures and associates:
Movements during the year
Balance at the Investment Other Cash dividend
beginning of Increase in Decrease in income under comprehensive Other changes or profit Disposal during Impairment Balance at the
Name of investee the year investment investment equity method income in equity distribution the year provision end of the year
Joint venture
Industry Fuel 597,811,376 - - 78,598,223 - - (74,772,253) - - 601,637,346
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Associates
Shanxi Yudean
Energy 869,294,193 - - 48,312,457 - - (4,000,000) - - 913,606,650
Yudean Finance 648,047,185 - - 79,717,646 - - (57,535,462) - - 670,229,369
Taishan Electric 2,208,688,289 - - 305,747,348 - - (410,130,428) - - 2,104,305,209
Binglang River
Electric 205,634,475 - - (11,177,975) - - - (194,456,500) - -
Yudean Shipping 945,671,363 - - 7,837,967 70,449 2,681,295 (15,835,300) - - 940,425,774
Western Investment 256,008,451 - - 8,612,092 190,748 - - - - 264,811,291
Lincang Energy 184,436,952 - - - - - - (184,436,952) - -
Weixin Yuntou 617,225,872 - - (38,274,657) - - - (221,275,475) - 357,675,740
Jiangkeng
Hydropower 5,867,441 - - 123,614 - - - - - 5,991,055
Yangshan
Zhongxinkeng
Electric 7,847,994 - - 1,418,041 - - (1,085,252) - - 8,180,783
Sub-total 5,948,722,215 - - 402,316,533 261,197 2,681,295 (488,586,442) (600,168,927) - 5,265,225,871
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total 6,546,533,591 - - 480,914,756 261,197 2,681,295 (563,358,695) (600,168,927) - 5,866,863,217
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
4 Operating income and operating costs
(1) Operating income and operating costs
2015 2014
Operating Operating
Item income Operating cost income Operating cost
Principal activities 2,130,075,020 (1,599,104,824) 2,612,429,707 (2,014,433,226)
Other activities 35,268,974 (19,571,944) 35,836,880 (24,710,042)
Total 2,165,343,994 (1,618,676,768) 2,648,266,587 (2,039,143,268)
Income and cost from principal activities (by product):
Item 2015 2014
Income from principal activities
- Income from sales of electricity 2,129,825,061 2,610,231,680
- Income from sales of steam 249,959 2,198,027
Sub-total 2,130,075,020 2,612,429,707
Other business incomes 35,268,974 35,836,880
Total 2,165,343,994 2,648,266,587
(2) Operating income of main customer of the Company
The primary income of the Company came from the sales of electricity to GPGC,
which contributed RMB2,129,825,061 or 98.36% (2014: RMB2,610,231,680 or
98.56%) to its total operating income.
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
5 Investment gain (“( )”for loss)
Item 2015 2014
Gain from long-term equity investments under
cost method 2,150,527,465 2,147,028,838
Gain from long-term equity investments under
equity method 480,914,756 582,033,705
Investment gain from available-for-sale financial
assets 46,909,270 26,698,950
Interest income from entrusted loans 37,105,403 36,261,622
Investment gain on disposal of long-term equity
investments 169,166,123 10,394,920
Investment income recognised as a result of
equity swap 21,977,012 -
Investment loss on disposal of available-for-sale
financial assets - (808,317)
Others 600,000 942,588
Total 2,907,200,029 2,802,552,306
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
XVI Extraordinary gain and loss in 2015
Item Amount
(1) Disposal of non-current assets (238,178,694)
(2) Government grants recognised in profit or loss
(excluding those having close relationships with
the Group’s operation and enjoyed in fixed amount
or quantity according to uniform national standard) (16,112,458)
(3) Exchange of non-monetary assets (21,977,012)
(4) Reversal of provision for bad and doubtful debts
assessed on an individual basis (20,790)
(5) Other non-operating income and expenses besides
items above (29,997,321)
(6) Tax effect 17,651,335
(7) Effect on non-controlling interests after taxation 4,886,717
Total (283,748,223)
Note: Extraordinary gain and loss items listed above are presented in the amount
before taxation.
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Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
XVII Return on net assets and earnings per share
The Group calculated its return on net assets and its earnings per share in accordance
with the Regulations on Information Disclosure of Securities Issuers No.9 –
Calculation and Disclosure of Return on Equity and Earning per Share (2010
Revision) issued by CSRC and the relevant CAS regulations. Details are as follows:
Weighted average
return on net assets Basic earning per Diluted earning per
Profit for reporting period (%) share share
Net profit attributable to ordinary
shareholders of the Company 14.42% 0.62 0.62
Net profit attributable to ordinary
shareholders of the Company
(deducted extraordinary gain
and loss) 13.15% 0.56 0.56
256
Guangdong Electric Power Development Co., Ltd. 2015 Annual Report
Supplementary information: Difference in accounting figures under different accounting
standards
(Expressed in Renminbi Yuan)
Difference in net profit and net asset included in consolidated financial statement prepared under
the International Financial Reporting Standards (IFRSs) and the China Accounting Standards
(CASs):
Net profit Net asset
2015 2014 2015 2014
Under the CASs 3,237,733,312 3,003,977,134 23,754,596,981 21,310,054,601
Items and amounts adjusted against
IFRSs
a. difference on recognition of
goodwill on business combination
under common control - - 64,623,000 64,623,000
b. difference on recognition of land
use value on business combination
under common control (630,000) (630,000) 19,490,000 20,120,000
c. Impact on non-controlling interests 54,120 54,120 4,647,859 4,593,739
Under the IFRSs 3,237,157,432 3,003,401,254 23,843,357,840 21,399,391,340
(1) Difference on recognition of goodwill on business combination under common control and
difference on recognition of land use value on business combination
Under the requirement of new CASs, goodwill arising from business combination under
common control should not be recognised and capital reserve should be adjusted
accordingly, whereas under the requirement of IFRSs, goodwill arising from business
combination under common control should be recognised and it represents the excess on
acquisition costs over the share of identifiable fair value of net asset from the acquiree on
business combination. All assets obtained from the acquiree on business combination
should be measured on their fair values. The measurement of the two standards will
continue to show a difference.
(2) Impact on non-controlling interests
The amortisation of the above land use rights has taken place in the Company and some of
its not-wholly owned subsidiaries and therefore has an impact on non-controlling interests.
257
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