Introduction to the Report Guangdong Yudean Group Co., Ltd. is also referred to as “Yudean Group”, “Yudean”, “the Company” and “we” in the Report. Time Range of the Report The Report refers to the fifth social responsibility report issued by Yudean Group, with the time range from Jan. 1, 2014 to Dec. 31, 2014. In order to enhance the comparability and foresight of the Report, the time period of partial contents may exceed the above time range. Release Cycle of the Report The corporate social responsibility report of Yudean Group is an annual report. Report Boundary Unless otherwise specified, data, cases and most of the information in this Report are from Yudean Group and its subsidiaries and controlled subsidiaries, and some of the information is related to non- controllable units, such as upstream and downstream enterprises or partners. Report Reference Standard This Report is formulated according to the Guidelines on Formulation of Corporate Social Responsibility Report (CASS-CSR3.0)_and Sustainability Reporting Guidelines (G4) issued by Global Reporting Initiative (GRI). See the index at the end of the Report for the disclosure of relevant indexes in the Report. Report Data Specification The data cited in the Report come from the statistical reports and formal documents of the Company. In addition to the Report, the Company’s social responsibility information is also disclosed in the Company’s Annual Report and official website. In case of any discrepancy, the latest disclosed information shall prevail. Contact Details of the Report The Report is separately released in both Chinese and English and the Chinese version of the report audit and inspection shall prevail. The Report is released to the public in two forms, namely printed report and electronic report. You can download the electronic text of the Report in our website (http:// www.gdyd.com/) or can obtain the Report by scanning the two-dimensional code or can download the Yudean Group makes efforts to guarantee the substantiality, integrity and balance annual reports of the Company of previous years in order to get a more comprehensive understanding of the report contents, systematically explains the company’s idea, system, action, of the performance of social responsibility by Yudean Group. performance and planning on pursuit of the maximum comprehensive value of security, economy, environment and society. We undertake that all disclosed materials are true, objective and timely and we hope that we can enhance the communication and exchange between Yudean Group and interested parties and enhance mutual understanding and value identity by release of report in order to achieve the sustainable development of enterprise. If you have any question on the contents or need a paper report, please send an e-mail to xu_rui@ gdyd.com or call 86-020-85136662. 2014 Corporate Social Responsibility Report Contents 16 21 25 Special Subject Responsibility Safety of Responsibility Management 26 Safety Production 16 Full Completion 22 Responsibility Governance Management of Denitration and Promotion 27 Safety Production Activity Transformation Project 23 Issue on Substantial Social 19 Support on Western Responsibility 28 Benchmarking Management Development 24 Communication between Interested Parties 28 Reliability of Power Generation Equipment 30 Emergency Management 31 Technological Innovation 32 Information Construction Contents 32 Outlook 05 Speech 07 Key Performance 09 Profile of the Company 14 Ten Events 15 Glories of the Company 63 Index of the Report 65 Interpretation of Terms 33 45 55 Excellence Environmental Harmony Protection 34 Benefit of Power 46 Save Resource and 56 Employee Generation Energy Development 35 Power Development 48 Reduce Emission and 59 Win-win Cooperation 39 Diversified Industry Pollution 61 Public Welfare 41 Industrial Distribution 50 Protect Ecological 62 Outlook Environment 42 Funds, Asset Management and 53 Develop Clean Energy Capital Operation 54 Outlook 43 Compliance 44 Risk Control 44 Outlook Speech about us Responsibility Corporate Social Responsibility Report2014 Speech The Report mainly discloses Yudean’s performance in four fields namely safety, economy, environment and society and the four fields can not only reflect Yudean’s idea and mode on promoting social responsibility governance and achieving sustainable development but also represent Yudean’s commitment to producing green energy with heart! This is the fifth social responsibility report issued by Yudean consecutively. The release of social responsibility report by Yudeam aims to disclose the Company’s management, performance and deficiencies during performance of social responsibilities to the public and related parties. Similar to the previous four reports, this report mainly discloses Yudean’s performance in four fields namely safety, economy, environment and society and the four fields can not only reflect Yudean’s idea and mode on promoting social responsibility governance and achieving sustainable development but also represent Yudean’s commitment to producing green energy with heart! Safety In 2014, we implemented the new Safety Production Law, strengthened safety hazards investigation and response mechanisms, continuously improved the reliability of power generation equipment and coped with extreme weathers such as super typhoon, and the production safety situation was generally stable; in the face of the adverse conditions such as low unit load and increase in power consumption of new environmental protection facility plant, we still remained 91.26% of the equivalent availability factor, but the coal consumption for power supply declined on a year-on-year basis; we made a breakthrough in technological innovation and won the second prize of National Prize for Progress in Science and Technology for the first time; moreover, we also continuously Li Zhuoxian, Chariman pushed forward the standardization of safety management and our 24 power plants had achieved national safety standardization certification. Economy We continued to refer to Guidelines on Formulation of Corporate Social Responsibility Report (CSR3.0) and Sustainability Reporting Guidelines (GRI-G4) issued by Global Reporting Initiative and combined with the comments In 2014, our business was facing grim situations such as economic slowdown and decrease in operating hours of generating sets. and suggestions put forward in research report on Guangdong Provincial Social Responsibility Report; we amended Therefore, on one hand, we tried to generate more power and generate high-effective power; on the one hand, we took lots and improved Guidelines on Social Responsibility Report of Yudean and Index System as the basis for preparation of measures to reduce the cost and increase the efficiency so as to effectively control the coal price and constantly improve the of this year’s report. This Report remains the usual features, including illustrations, special subject of responsibility, operational effectiveness of related industries; we have been assessed as “enterprise with outstanding operation performance” for 13 targeted cases, evaluation of the related parties, historical data of core indicators and interpretation of proper consecutive years by SASAC; actively participated in the direct power supply for large consumers with generating capacity accounting nouns, and we hope that you can easily read and understand it and feel Yudean’s high sense of responsibility for for 35.3% of the power supply scale of the province. We vigorously develop new energy project and related diversified industries every watt. Your participation and evaluation are also the power to encourage us to improve the responsibility such as natural gas, promote the power project construction under the premise of guaranteeing the quality and quantity and our management and report quality! comprehensive unit price of project construction is the lowest one in China; we have taken over the operation of Pannan Power Currently, we feel stressed when facing the complex and volatile power market, on-going power reform and the Plant, which marked a new breakthrough in western development of the Company; we obtained the first holding project of Yudean increasingly stringent environmental protection requirements, but it is also the best chance to test our performance in Yunnan, i.e. Lincang Hydropower Development Company, so as to further expand our development space in Yunnan. of social responsibility and goal of sustainable development. Yudean will continuously adhere to the enterprise philosophy of “sticking to the unity of dedication and harmony and insisting on the tradition and innovation” and Environment enterprise mission of “self-discipline and social commitment; vitalizing the nation and benefiting the people” and work together with you to cope with challenges and fight for a brighter future! In 2014, we have fully completed the Phase II projects of “Blue Sky Engineering” namely denitration transformation project and transformation project for cancellation of the desulfuration gas bypass; promoted the capacity expansion, upgrading and transformation of environmental protection facilities such as desulfuration and dust removal devices; constructed the “near zero emission” demonstration project of smoke pollutants of Guangdong coal-fired generating sets-No. 3 Generating Set of Jinwan Power Generation Company; fully completed comprehensive upgrading and transformation of 300MW coal-fired generating set and the saved energy can generate additional electricity