CONTENTS CONTENTS 2 Company Profile 3 Corporate Information 4 Chairman’s Statement 10 2020 Highlights 14 Biographies of Directors and Senior Management 19 Management Discussion and Analysis 32 Report of Corporate Governance 57 Directors’ Report 79 Independent Auditor’s Report 86 Consolidated Statement of Profit or Loss 88 Consolidated Statement of Comprehensive Income 89 Consolidated Statement of Financial Position 91 Consolidated Statement of Changes in Equity 92 Consolidated Statement of Cash Flows 94 Notes to the Consolidated Financial Statements 179 Five-year Financial Summary 180 Information for Investors 181 Definitions COMPANY PROFILE Beijing Energy International Holding Co., Ltd. | Annual Report 2020 COMPANY PROFILE Beijing Energy International Holding Co., Ltd. (listed on the main board of the Stock Exchange) is striving to be a leading global eco-development solutions provider, which mainly engaged in the development, investment, operation and management of solar power plants and other renewable energy projects. As of 31 December 2020, the Group owned 61 solar power plants with aggregate installed capacity of approximately 2,070.4MW, and have generated approximately 2,795,834MWh of green electricity for the entire 2020. Our power plant network covers various provinces/autonomous regions including Inner Mongolia, Ningxia, Qinghai, Shanxi, Xinjiang and Guangdong, etc. Under the rapid growth of the renewable energy industry, the Company has attracted many strong investors, including BEH (an integrated energy service enterprise of Beijing City), CMNEG under CMG, China Huarong (one of the four major asset management companies in China), QCCI (a state-owned enterprise) and ORIX (an international large-scale group providing integrated financial services). The Group aims at building the most efficient and advanced renewable energy operation and maintenance platform, and establishing a green ecosphere by employing a low-carbon and sustainable development model, so as to bring clean energy into millions of families. In the future, the Company will seize the opportunities emerging from the transformational changes in international energy industry. By adhering to the development concept of “focusing on main business, national layout, developing worldwide” and with rapid quality development as the core, the Company will accelerate the construction of clean energy industrial ecosystem based on green energy and complemented with other energy sources and realize collaboration with intelligent technology, in order to become a first-class international clean energy ecological investment operator and strive to maximize the value of the Company and the interests of Shareholders. 2 CORPORATE INFORMATION Beijing Energy International Holding Co., Ltd. | Annual Report 2020 CORPORATE INFORMATION BOARD OF DIRECTORS SOLICITORS Executive Directors Bermuda Mr. Zhang Ping (Chairman) Conyers Dill & Pearman Mr. Lu Zhenwei Mr. Xu Jianjun Hong Kong Ashurst Hong Kong Non-Executive Directors Mr. Sui Xiaofeng Mainland China Mr. Zhao Bing The Shanghai Operation of Dacheng Law Offices Mr. Li Hao (Dacheng Shanghai) Ms. Xie Yi PRINCIPAL BANKERS Independent Non-Executive Directors Bangkok Bank Public Company Limited Mr. Kwan Kai Cheong Bank of Beijing Mr. Yen Yuen Ho, Tony Bank of China (Hong Kong) Limited Mr. Chen Hongsheng China CITIC Bank International Limited Ms. Jin Xinbin China Construction Bank Corporation China Development Bank BOARD COMMITTEES China Everbright Bank Co., Ltd. Audit Committee China Minsheng Banking Corp., Ltd. Mr. Kwan Kai Cheong (chairman) Hua Xia Bank Co., Limited Mr. Sui Xiaofeng Industrial and Commercial Bank of China Limited Mr. Yen Yuen Ho, Tony Shanghai Pudong Development Bank Co., Ltd. The Export-Import Bank of China Remuneration Committee The Hongkong and Shanghai Banking Corporation Limited Mr. Yen Yuen Ho, Tony (chairman) Mr. Kwan Kai Cheong PRINCIPAL SHARE REGISTRAR AND TRANSFER Mr. Zhao Bing OFFICE IN BERMUDA Ocorian Management (Bermuda) Limited Nomination Committee Mr. Zhang Ping (chairman) BRANCH SHARE REGISTRAR AND TRANSFER Mr. Kwan Kai Cheong OFFICE IN HONG KONG Mr. Yen Yuen Ho, Tony Union Registrars Limited Risk Control Committee REGISTERED OFFICE Mr. Zhang Ping (chairman) Clarendon House, 2 Church Street Mr. Lu Zhenwei Hamilton HM11, Bermuda Mr. Sui Xiaofeng Mr. Zhao Bing PRINCIPAL PLACE OF BUSINESS IN HONG KONG Mr. Li Hao Unit 1012, 10th Floor, West Tower, Shun Tak Centre Mr. Kwan Kai Cheong 168-200 Connaught Road Central, Hong Kong AUDITOR WEBSITE Grant Thornton Hong Kong Limited http://www.bjei.com Certified Public Accountants Registered Public Interest Entity Auditor 3 CHAIRMAN’S STATEMENT Beijing Energy International Holding Co., Ltd. | Annual Report 2020 CHAIRMAN’S STATEMENT Dear Shareholders, 2020 is definitely an unusual year, but also a tough and memorable one in which we fought, with unremitting effort, against the difficulties. The outbreak of COVID-19 pandemic at the beginning of year forced everything to stop for that moment and brought unprecedented challenges and tests to the whole society. However, the Group is steadily advancing to its medium- long term goal of “becoming one of the best international clean energy and ecological investment operators” by uniting as one to prevail over the COVID-19 pandemic and obstacles. In 2020, the Group recorded revenue of approximately RMB2,149 million and profit of approximately RMB344 million, with an aggregated installed capacity of clean energy of approximately 2,070.4MW, and green electricity for the entire 2020 reached approximately 2,795,834MWh. I hereby express my sincere gratitude to all Shareholders on behalf of the Board for their long-term trust and support, which is essential to our good performance. 1. EMBARKING ON A MAGNIFICENT NEW ERA WITH PROMISING AND BRIGHT FUTURE Clean energy and low-carbon development conform to the concept of harmonious co-existence between human beings and nature. Promoting the green energy production and consumption and accelerating the transforming to the clean energy and non-fossil energy to greatly reduce the CO2 emission and pollutant discharges under the guidance of energy development dominated by clean and low-carbon energy will be core to building a beautiful China. Mr. Xi Jinping, the president of the PRC expressed at the United Nations General Assembly on 22 September 2020 that, “China aims to reach CO2 emissions peak before 2030 and achieve carbon neutrality before 2060”. On 12 December 2020, Mr. Xi Jinping, the president of the PRC further announced at the Climate Ambition Summit that, “China will bring its total installed capacity of wind and solar power to over 1,200GW by 2030”. The objectives of hitting “carbon peak” and achieving “carbon neutrality” indicate that transforming from fossil energy driven development era to a non-fossil energy-driven magnificent new era has commenced, which will affect the development of the energy industry deeply. Low carbon or even zero carbon will become common goals and value pursued by China and the whole world. According to the statistics from National Energy Administration of China, new energy dominated by photovoltaic power and wind power will continue its high-speed development. By the end of 2020, the cumulative installed capacity of China’s renewable energy power generation reached 934GW, representing a year-on-year increase of approximately 17.5%. Among these, the total installed capacities of wind power generation reached 281.53GW with an increase of installed capacity of 71.67GW, representing a year-on-year increase of approximately 34.6%; the total installed capacities of photovoltaic power generation reached 253.43GW with an increase of installed capacity of 48.2GW, representing a year-on-year increase of approximately 24.1%. 4 Beijing Energy International Holding Co., Ltd. | Annual Report 2020 CHAIRMAN’S STATEMENT During such an era of accelerating energy transformation, the Company has the great honour to be an important carrier for investment in the clean energy industry ecosystem and a pioneer in market-oriented system and mechanism innovation of BEH. BJEI will strive to focus on high-quality development, speed up the scale expansion and intensive development of new energies including wind power and photovoltaic power generation by giving full play to the market mechanism and overseas financing advantages as a Hong Kong-listed company. With an aim of enhancing Shareholders’ benefits, BJEI will also improve the corporate governance system, and strengthen its risk control, provide full life cycle service for global energy users through value creation, and actively expand the overseas clean energy market. To fulfill the objective of geometric growth of the installed capacity during the “14th Five-year Plan” at a high level of quality, BJEI will build a clean energy ecosystem dominated by green energy, complemented by multiple energy sources and characterised by smart collaboration and create its unique core competitiveness by exploring the integrated development of energy storage and renewable energy, which is also the mission and undertaking of, and powerful motivation for, BJEI. 2. FOCUSING ON THE PRIMARY BUSINESS AND ACCELERATING THE OVERALL BUSINESS EXPANSION THROUGH CONSOLIDATING FOUNDATIONS AND ACCUMULATING ADVANTAGES In 2020, the Group continued with healthy and stable business development. With new management in place, the Company simultaneously took several measures to solve left-over problems, reconstruct strategic development, accelerate the domestic