* (A joint stock limited company incorporated in the People's Republic of China with limited liability) Stock Code: 1798 2018 ANNUAL REPORT * For identification purpose only Contents Chairman’s Statement 2 President’s Statement 3 Company Profile 4 Key Operating and Financial Data 6 Financial Highlights 8 Management Discussion and Analysis 10 Major Events in 2018 31 Report of Directors 32 Corporate Governance Report 67 Report of the Supervisory Committee 91 Environmental, Social and Governance Report 94 Investor Relations 116 Profile of Directors, Supervisors 117 and Senior Management Human Resources 126 Independent Auditor’s Report 128 Consolidated Statement of Profit or Loss 135 Consolidated Statement of 136 Comprehensive Income Consolidated Statement of Financial Position 137 Consolidated Statement of Changes in Equity 139 Consolidated Statement of Cash Flows 141 Notes to Financial Statements 144 Glossary of Terms 270 Corporate Information 274 Chairman’s Statement In 2018, adhering to the goal of improving development quality and efficiency, the Company proactively adapted to the new situation of power system reform and structural reform at supply side, coped with challenges, and seized opportunities. In light of the complex business environment, the Company successfully accomplished the annual business development tasks and goals. In the past year, the Company maintained stable safety production and its reliability indicator still lead the industry. Technical retrofit of equipment and integrated improvement of efficiency achieved remarkable success, which significantly enhanced the economic operation of units. The annual electricity generation of the Company amounted to 17,975 million kWh, representing an increase of 17.49% as compared to the corresponding period of last year; the revenue amounted to RMB8,319 million, representing an increase of 17.11% as compared to the corresponding period of last year. Over the past year, the Company proactively accommodated the changes in industrial policies. Due to adherence to innovation-oriented, adjustments to development strategies, and optimization of structural layout, the development quality was continuously improved. The consolidated installed capacity reached 9,014.92MW and the capacity of projects under construction reached 1,772MW. In the past year, the Company’s operating results saw rapid increase and the total profit hit a historical high. The profit attributable to owners of the parent amounted to approximately RMB1,209 million, representing an increase of 66.18% as compared to the corresponding period of last year; and basic earnings per share was RMB0.1503, representing an increase of 78.72% as compared to the corresponding period of last year. In 2019, the macro economy and fiscal and financial policies will facilitate the Company to reduce capital and operating costs and improve economic efficiency. The State’s promotion of green development, vigorous development of renewable energy, and establishment and improvement of a long-term mechanism for renewable energy consumption provide a broad space for the Company to expand its presence in the renewable energy industry and enhance its profitability. In 2019, the Company will proactively seize new opportunities arising from the structural reform at supply side and accurately understand the changes in industry policies and new trend in technological progress. On the basis of safety production, the Company, driven by reform and innovation and with the support of standard governance, will accelerate the development of wind power and photovoltaic power generation projects with a view to achieving high quality development. The Company will continue to enhance its core competitiveness, leadership in the industry and market influence and endeavour to build it into a first-class professional and modern listed company engaged in new energy, to create long-term stable and ever-increasing returns for shareholders and provide clean, safe and reliable power to the society, so as to be a responsible and reliable high-quality enterprise citizen. Last but not the least, on behalf of the Board, I would like to express our heartfelt gratitude to our shareholders and friends from the community for their trust and support. Chairman of the Board Chen Feihu 2 China Datang Corporation Renewable Power Co., Limited President’s Statement Dear shareholders, With the strong support of all shareholders and the Board, the management of the Company put into practice the guiding principles of the 19th CPC National Congress across the Board, kept abreast of the new policies, situations and developments in the new energy industry, and overcame all difficulties and forged ahead while centering on the main task of “quality and efficiency improvement” in 2018. As a result, the Company’s profitability was further improved and positive achievements were made in various tasks of the Company. Electricity generation amounted to 17,975 million kWh, representing a year-on-year increase of 17.49%. The net profit amounted to RMB1,426.39 million, representing a year-on-year increase of RMB523.72 million or 58.02%. Currently, the time is ripe for pursuing high-quality development of new energy, which creates unprecedented opportunities for the development of the Company and provides the Company with broader space for development. The Report of the 19th CPC National Congress expressly stated the goal of “building a beautiful China” and “promoting green development” and stressed the need to expanding “clean energy industry” and “pushing forward revolution in energy production and consumption, and building an energy sector that is clean, low-carbon, safe and efficient”. The new energy industry enters a policy adjustment period in 2019. Amidst the severe and complicated external environment, we will adhere to the general principle of making progress while maintaining stability, and act on the new development philosophy. Centering on the general objective of “building a world-class new energy enterprise” and following the general guideline of “pursuing high-standard operation and becoming a first-class enterprise”, we will comprehensively promote high-quality development of the Company and continue to improve the profitability and core competitiveness of the Company by seeking development, improving efficiency, preventing risks and ensuring safety, thus creating better return for our investors. In the end, we would like to express our heartfelt gratitude to all the shareholders and friends from all sectors in the society. Under the leadership of the Board, we will strive to achieve stronger, better and greater development of the Company with resolute determination. President Liu Guangming Annual Report 2018 3 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 2018, the Company had a total of 7,273,701,000 issued shares, among which the Company’s controlling shareholder China Datang Group Corporation Limited 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; power generation; design, construction and installation, repair and maintenance of domestic and overseas power projects; import and export services of renewable energy equipment and technologies; foreign investment; renewable energy-related consulting services; as well as leasing of property. The Group is actively engaged in the renewable sources business including wind power, solar power and biomass. As at 31 December 2018, the Group’s consolidated installed capacity amounted to 9,015 MW, including 8,835 MW of wind power installed capacity. 4 China Datang Corporation Renewable Power Co., Limited Company Prole (Continued) Corporate Structure: As at 31 December 2018, the Company’s major corporate structure was as follows: Datang Jilin Datang Corporation Holders of H Shares 8.24% 57.37% 34.39% The Company 100.0% 51.0% Datang Zhongdian (Jilin) Renewable Power 60.0% 85.0% Datang Yichuan Renewable Power Co., Ltd. Datang (Taonan) Sanhe Renewable Power Co., Ltd. Harbin Ruichi Wind Power Co., Ltd. Company Limited 100.0% 51.0% 100.0% Datang Renewable Power Shuozhou Pinglu 100.0% Fujian Nan’an Tanglian Renewable Power Co., Ltd. Datang Zhongdian (Jilin) Power Generation Co., Ltd. Datang Shuyang Renewable Power Co., Ltd. Wind Power Co., Ltd. 100.0% 100.0% 100.0% 100.0% Beipiao Yangshugou Wind Power Generation Co., Ltd. Datang Xiangyang Wind Power Generation Co., Ltd. Datang (Keyouzhongqi) Renewable Power Co., Ltd. Datang Sihong Renewable Power Co., Ltd. 100.0% 100.0% 100.0% 100.0% Datang Qiannan Renewable Power Co., Ltd. Datang Huachuan Wind Power Generation Co., Ltd. Datang Suibin Renewable Power Co., Ltd. Datang Siyang Renewable Power Co., Ltd. 95.0%