th 2019 Annual Report Clean Energy Green Enterprise Contents 2 2019 Financial Highlights 4 Corporate Information 5 Group Structure 6 Company Profile 12 Major Events in 2019 14 Letter to Shareholders 17 Directors and Senior Management Profiles 23 Management’s Discussion and Analysis 43 Corporate Governance Report 60 Risk Management Report 67 Summary of Environmental Protection and Social Responsibility Report 72 Investor Relations and Frequently Asked Questions 75 Report of the Board of Directors 89 Independent Auditor’s Report 95 Consolidated Income Statement 96 Consolidated Statement of Comprehensive Income 97 Consolidated Statement of Financial Position 99 Consolidated Statement of Changes in Equity 101 Consolidated Statement of Cash Flows 102 Notes to the Consolidated Financial Statements 220 Five-Year Financial and Operations Summary 221 Technical Glossary and Definitions 224 Useful Information for Investors 2019 Financial Highlights PROFIT ATTRIBUTABLE TO OWNERS OF THE COMPANY for the year ended 31 December1,284,381 16.9416.94%% 1,098,3551,098,355 1,284,381 RMB’000 RMB’000RMB’000 RMB’000 20192019 20182018 1,284,381 16.94% 1,098,355 RMB’000 RMB’000 2019 2018 2019 2018 Change MWh MWh % Total power generation 87,134,871 74,101,429 17.59 Total electricity sold 83,558,993 70,964,796 17.75 3,303,2603,303,260 3,289,280 3,289,280 1,644,8501,644,850 1,953,4221,953,422 20,946,79220,946,792 16,254,50816,254,508 3,303,260 ChangeChange 3,289,280 1,644,850 1,953,422 Coal-redCoal-red powerpower 9.60% 20,946,792 2019 20182018 9.60% 2019 16,254,508 MWh Hydropower MWhMWh MWh Hydropower 28.8728.87%% Wind powerChange Wind power 68.3968.39%% PhotovoltaicPhotovoltaicCoal-red power powerpower 100.82% 2019 2018 100.829.60%% MWh MWh Hydropower % 51,112,01651,112,016 28.87 56,019,66156,019,661 Wind power 68.39% Photovoltaic power 100.82% Total electricity sold of major associates and joint venture 17,451,985 18,612,085 -6.23 51,112,016 56,019,661 MWh MWh MWh 15,230,04115,230,041 MWh 14,007,43514,007,435 3,341,4213,341,421 3,282,4503,282,450 15,000,00015,000,000 3,500,0003,500,000 ChangeChange 3,000,0003,000,000 12,000,00012,000,000 AssociatesAssociates 2,500,0002,500,000 MWh MWh 9,000,0009,000,000 15,230,041 Coal-red power 2,000,000 14,007,435 Coal-red power -8.03% 2,000,000 3,341,421 3,282,450 15,000,000 -8.03% 3,500,000 6,000,000 PhotovoltaicPhotovoltaic powerpower 3.55% 1,500,0001,500,000 6,000,000 Change 3.55% 3,000,000 12,000,000 1,000,000 JointJoint ventureventure 1,000,000 3,000,000 Associates 2,500,000 3,000,000 103,129 Coal-red power 103,129 99,59499,594 Coal-red power % 500,000 9,000,000 1.801.80% 500,000 Coal-red power -8.03% 2,000,000 00 00 6,000,000 20192019 20182018 20192019 20182018 Photovoltaic power 3.55% 1,500,000 20192019 20182018 Coal-redCoal-red powerpower PhotovoltaicPhotovoltaic powerpower Joint venture 1,000,000 Coal-redCoal-red powerpower 3,000,000 103,129 AssociatesAssociates 99,594 Coal-red power 1.80% 500,000 JointJoint ventureventure 0 0 2019 2018 2019 2018 2019 2018 2 China Power InternationalCoal-red power DevelopmentPhotovoltaic Limited power | Annual Report 2019 Coal-red power Associates Joint venture 2019 Financial Highlights NET PROFIT for the year ended 31 December -8.36% 2019 2018 RMB’000 RMB’000 31.79% 25.15% -21.53% Hydropower 699,707 849,881 51.91% 2019 Wind po wer 514,570 215,612 31.60% Photovoltaic power 2018 617,314 406,843 13.17% 24.85%-8.36% 553,620 517,335 23.38% Unallocated 2019 2018 28.04% (184,061)RMB’000 (352,486)RMB’000 31.79% 25.15% -21.53% Hydropower 699,707 849,881 51.91% 2019 Wind po wer 514,570 215,612 31.60% Photovoltaic power 2018 2019 617,314 2018406,843 Change 13.17% RMB’000 RMB’000 % 24.85% 553,620 517,335 23.38% Revenue 28.04% Unalloc27,763,287ated (184,061)23,175,626(352,486) 19.80 RMB’000 140,289,698 150 ,000,000 124,956,727 RMB RMB % (restated) Basic earnings per share 0.13 Change0.11 18.18 120,000,000 Other key financial indicators Equity attributable 78,568,268 to owners of 1.24% 90,000,000 the Company 64,917,976 Total assets 60,000,00RMB’000 0 12.27% 30,320,075 140,289,698 150,000,000 29,949,918 124,956,727 Cash and cash (restated) equivalents -33.18% 30,000,000 Change 120,000,000 1,238,290 1,853,044 Total debts 21.03% 0 Equity attributable 78,568,268 2019 2018 2019 2018 2019 2018 2019 2018 to owners of 1.24% 90,000,000 the Company 64,917,976 Total assets 60,000,000 12.27% 30,320,075 29,949,918 Cash and cash equivalents -33.18% 30,000,000 1,238,290 1,853,044 Total debts 21.03% 0 2019 2018 2019 2018 2019 2018 2019 2018 China Power International Development Limited | Annual Report 2019 3 Corporate Information BOARD OF DIRECTORS REGISTERED OFFICE AND PRINCIPAL PLACE OF BUSINESS IN HONG KONG Executive Director Suite 6301, 63/F., Central Plaza TIAN Jun (Chairman of the Board and President) 18 Harbour Road Wanchai, Hong Kong Non-executive Directors GUAN Qihong BEIJING OFFICE WANG Xianchun East Building, Hui Huang Shi Dai Plaza Independent Non-executive Directors 56 North West Fourth Ring Road, Haidian District Beijing, China KWONG Che Keung, Gordon LI Fang YAU Ka Chi COMPANY WEBSITE www.chinapower.hk AUDIT COMMITTEE KWONG Che Keung, Gordon (Chairman) LISTING INFORMATION LI Fang The Stock Exchange of Hong Kong Limited YAU Ka Chi • Ordinary Shares (Stock Code: 2380) RISK MANAGEMENT COMMITTEE TIAN Jun (Chairman) SHARE REGISTRAR AND TRANSFER OFFICE KWONG Che Keung, Gordon Computershare Hong Kong Investor Services Limited LI Fang Shops 1712-1716 YAU Ka Chi 17th Floor, Hopewell Centre 183 Queen’s Road East REMUNERATION AND Wanchai, Hong Kong NOMINATION COMMITTEE LI Fang (Chairman) COMPANY SECRETARY KWONG Che Keung, Gordon CHEUNG Siu Lan YAU Ka Chi EXECUTIVE COMMITTEE AUDITOR Deloitte Touche Tohmatsu TIAN Jun (Chairman) All vice presidents of the Company 4 China Power International Development Limited | Annual Report 2019 Group Structure SPIC (PRC) 100% CPI Holding Public Other assets (Hong Kong) 56.04% China Power 43.96% International Development Limited 44.34% 13.88% 9.50% 2380.HK 9.13% (Hong Kong) Sichuan Energy Shanghai Power Sujin Energy Investment 600021.SH (PRC) 1713.HK (PRC) (PRC) Coal-red Photovoltaic Natural Gas Hydropower Wind Power Power Power Power Heat Supply Anhui Hunan Xinjiang Henan Hubei Electricity Sales and Distribution Henan Guizhou Hunan Anhui Guangdong Others Hubei Sichuan Gansu Shanxi Sichuan Guangxi Yunnan Liaoning Shandong Shanxi Guangxi Hubei Ningxia Guizhou Shandong Guangdong Heilongjiang Jiangsu Shanxi Xinjiang Beijing Inner Guangdong Anhui Guangxi Mongolia Hunan Guangdong Hunan Jiangsu Henan GuizhouTianjin Note: The above group structure is recorded as at the date of this annual report. China Power International Development Limited | Annual Report 2019 5 Company Profile Heilongjiang Xinjiang Liaoning Beijing Inner Mongolia Tianjin Sujin Energy Ningxia Shanxi Shandong Gansu Henan Jiangsu Shanghai Anhui Hubei Shanghai Power Sichuan Sichuan Energy Investment DIRECTIVE Coal-red power Hunan Guizhou Hydropower Wind power Yunnan Guangxi Guangdong Photovoltaic power 13.88% stake in Shanghai Power 9.13% stake in Sichuan Energy Investment Natural gas power 9.50% stake in Sujin Energy 6 China Power International Development Limited | Annual Report 2019 Company Profile Heilongjiang Xinjiang Liaoning Beijing Inner Mongolia Tianjin Sujin Energy Ningxia Shanxi Shandong Gansu Henan Jiangsu Shanghai Anhui Hubei Shanghai Power Sichuan Sichuan Energy Investment DIRECTIVE Coal-red power Hunan Guizhou Hydropower Wind power Yunnan Guangxi Guangdong Photovoltaic power 13.88% stake in Shanghai Power 9.13% stake in Sichuan Energy Investment Natural gas power 9.50% stake in Sujin Energy China Power International Development Limited | Annual Report 2019 7 Company Profile China Power was incorporated in Hong Kong with limited liability under the Hong Kong Companies Ordinance on 24 March 2004 and is a core subsidiary for conventional energy business of SPIC, the only integrated energy group which simultaneously owns coal-fired power, hydropower, nuclear power and renewable energy resources in the PRC. The shares of the Company were listed on The Main Board of the Hong Kong Stock Exchange on 15 October 2004 with the stock code 2380. In addition to the coal-fired power business in the start-up stage, the Company has expanded its business into the areas of, among others, hydropower, wind power, photovoltaic power, electricity sales and distribution and integrated energy through continuous development over the past 15 years. Various business segments are growing orderly along with the constant expansion of the Group. As at 31 December 2019, the Group’s total attributable installed capacity was 21,113.2MW, of which attributable installed capacity of clean energy was 7,510.1MW, accounting for 35.57% of all attributable installed capacity. EXISTING POWER PLANTS As at 31 December 2019, the Group owned and operated the power plants as follows: Coal-fired Power Installed Attributable Capacity Interest Installed Capacity Power Plant (MW) (%) (MW) Pingwei Power Plant 1,260 60 756 Pingwei Power Plant II 1,280 60 768 Pingwei Power Plant III 2,000 60 1,200 Yaomeng Power Plant 2,160 100 2,160 Dabieshan Power Plant 1,280 51 652.8 Fuxi Power Plant 1,200 51 612 CP Shentou Power Plant 1,200 80 960 Wuhu Power Plant 1,320 100 1,320 Changshu Power Plant 3,320 50 1,660 Xintang Power Plant 600 50 300 Li Yu Jiang Power Plant 600 25.2 151.2 Pu’an Power Plant 1,320 95 1,254 Shangqiu Power Plant 700 100 700 Shanghai Power 7,449.5 13.88 1,033.9 Sujin Energy 792 9.5 75.2 Total 26,481.5 13,603.1 8 China Power International