Annual Report 2019 3 General Manager’S Statement

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Annual Report 2019 3 General Manager’S Statement Contents Human Resources 136 Chairman’s Statement 2 Independent Auditor’s Report 138 General Manager’s Statement 4 Consolidated Statement of Profit or Loss 144 Company Profile 6 Consolidated Statement of 145 Key Operating and Financial Data 8 Comprehensive Income Financial Highlights 10 Consolidated Statement of Financial 146 Management Discussion and Analysis 12 Position Major Events in 2019 31 Consolidated Statement of Changes in 148 Report of the Board of Directors 32 Equity Corporate Governance Report 61 Consolidated Statement of Cash Flows 150 Report of the Supervisory Committee 86 Notes to Financial Statements 153 Environmental, Social and Governance 89 Glossary of Terms 286 Report Corporate Information 290 Investor Relations 125 Profile of Directors, Supervisors and 126 Senior Management Chairman’s Statement DEAR SHAREHOLDERS: Facing the complex and changeable domestic and international market environment in 2019, the Company deeply implemented the new strategy of energy security of “Four Revolutions and One Collaboration”, actively seized the opportunities of the reform of power system and the development of green energy, sped up the implementation of the “13th Five-year” Plan, unswervingly promoted high-quality development and successfully achieved the goal of business development for the year. – Important progress was made in high-quality development. As the industrial layout has been optimized and upgraded, the progress of project development has been accelerated and the resource reserves have become more and more abundant and development quality improved obviously. The approved power supply project was 940 MW, the newly added on-grid capacity was 790 MW, the capacity under construction was 1,880 MW and the cumulative consolidated installed capacity reached 9,761 MW. – Positive results were made in operating performance. The Company strived to increase the income and efficiency and its operating income amounted to RMB8,325 million, realized total profits of RMB1,440 million and net profit attributable to the parent company of RMB936 million, and the return on net assets reached 7.68%. – Maintaining a stable situation in production safety. As the equipment management enhanced efficiency significantly, the information real-time monitoring implemented comprehensively, the utilization rate of wind turbines has been further improved, and the reliability of wind power generation units has maintained the leading level in the industry. The Company completed power generation of 18.435 billion kWh, representing an increase of 460 million kWh year-on-year. – Constant deepening and promoting reforms and fostering innovation. As the management system and mechanism becoming more and more perfect and the system being improved continuously, the standardization of the operation of the Company in accordance with law has been further improved. Corporate governance in accordance with the law has been steadily advanced by the Company, and accordingly the capabilities to prevent and control risk have been significantly enhanced. Relying on the standardized governance and good performance, the Company won the “Best Investor Relations Award” from China Financing for the first time. 2 China Datang Corporation Renewable Power Co., Limited Chairman’s Statement (Continued) This year is the closing year for China to make a decisive battle to build a moderately prosperous society in all respects and the “13th Five-year” Plan. The pace of revolution in energy production and consumption has been accelerated and the reform in power system has continued to deepen, the development of the new trend of energy electricity and the new infrastructure has been sped up, the high-quality development of the Company will faces new opportunities. At the same time, the outbreak of COVID-19 pandemic had brought an impact on economic and social development. Challenges brought to the Company’s operation and development by factors such as the reduction of subsidy, grid parity, competitive allocation of resources and the maintaining of electricity prices and rush of installation in the wind power, the development of new energy will encounter more and greater difficult challenges. In 2020, the Company will be guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, adhere to the new concept of development, pursue the development of high-quality, continue to uphold the work requirements of achieving growth among stability, adhere to the confidence and belief in success, strive to enhance the sense of urgency, and continue to deepen reform and innovation. The Company will firmly seize the initiative of the development, make solid progress in improving quality and efficiency, stick to the bottom-line thinking, actively respond to risks and challenges, and constantly improve the core competitiveness, and make great efforts to build a first-class, professional and modern renewable power listed company. Last but not the least, on behalf of the Board, I would like to express our heartfelt gratitude to our shareholders and friends from all sectors of the society for their trust and support. Chairman of the Board Chen Feihu Annual Report 2019 3 General Manager’s Statement Dear shareholders, In 2019, with the strong support of all shareholders and the strong leadership of the Board, the management of the Company adhered to the new development concept, captured the developing trend of new energy, adopted a new mindset and fulfilled its responsibility to continuously innovate the management, expanded new development momentum, further promoted the operation management, reform of development, safety production, legal compliance and other aspects of work, so as to accelerate the high-quality development of the Company. The total assets of the Company amounted to RMB80,023 million, representing a year-on-year increase of RMB5,607 million; the annual electricity generation of the Company amounted to 18,435 million kWh, representing a year- on-year increase of 460 million kWh. The total profit amounted to RMB1,440 million and the net profit attributable to the parent company amounted to RMB936 million. The return on net assets reached 7.68%. The first independently developed and constructed offshore wind power project by the Company with a capacity of 300 MW in Binhai, Jiangsu successfully went on-grid. Chifeng Wind Power Training Base was awarded Wind Power Science Education and Training Base by China Energy Research Society. As such, the Company has maintained a good upward momentum of development. In recent years, China has been in a period of building a clean, low-carbon, safe and efficient energy system, and vigorously developing clean energy is the main direction of promoting the sustainable development of electricity. The continuous acceleration of low-carbon transformation of energy consumption and the further promotion of the in-depth advancement of electricity reform and market construction have brought the Company a brighter development prospect. 4 China Datang Corporation Renewable Power Co., Limited General Manager’s Statement (Continued) In 2020, the pressure on domestic production and price stabilisation has increased. The curtailment rates of wind and PV power have both continued to decrease. The financing environment has been further improved. We will adhere to the new development concept, insist on comprehensive management innovation and follow the general objective of building a world-class new energy listed company to transform methods, promote development, finance, control the costs, strengthen project layout and development, improve production and operation efficiency and promote asset management, so as to further enhance core competitiveness and comprehensively achieve the objectives and tasks for the year of high-quality development. In the end, we would like to express our heartfelt gratitude to all the shareholders and friends from all sectors in the society. In the new year, under the leadership of the Board, we will fulfill our responsibility, act in a timely manner, firmly grasp the new opportunities for the rapid development of new energy with the attitude of “fully committed and waste no time”, use new ideas and new methods to comprehensively promote the work forward and strive to accelerate the realization of high-quality development of new energy company. General Manager Liu Guangming Annual Report 2019 5 Company Prole The predecessor of China Datang Corporation Renewable Power Co., Limited (stock code: 1798) was Datang Chifeng Saihanba Wind Power Generation Co., Ltd. (大唐赤峰塞罕壩風力發電有限公司) which was established on 23 September 2004 and subsequently renamed to China Datang Corporation Renewable Power Co., Limited (中國大唐集團新能源有限責任公司) on 19 March 2009. It was one of the earliest power enterprises that engaged in the development of new energy in the PRC. Since the establishment of the Company and after several years of rapid development, the Company was successfully listed on the Main Board of the Hong Kong Stock Exchange on 17 December 2010. As at 31 December 2019, the Company had a total of 7,273,701,000 issued shares, among which the Company’s controlling shareholder China Datang Corporation Ltd. holds an aggregate of 65.61%. The Group is principally engaged in the development, investment, construction and management of wind power and other renewable energy sources; research and development, application and promotion of low carbon technology; research, sale, testing and maintenance of renewable energy- related equipment;
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