四川能投發展股份有限公司 Sichuan Energy Investment Development Co., Ltd. (A joint stock company incorporated in the People’s Republic of China with limited liability) Stock Code: 1713 2020 Annual Report CONTENTS DEFINITIONS 2 CHAIRMAN’S STATEMENT 4 COMPANY PROFILE 5 FINANCIAL HIGHLIGHTS 7 MANAGEMENT DISCUSSION AND ANALYSIS 8 REPORT OF THE BOARD OF DIRECTORS 20 REPORT OF THE SUPERVISORY COMMITTEE 40 CORPORATE GOVERNANCE REPORT 42 DIRECTORS, SUPERVISORS AND SENIOR MANAGEMENT 53 INDEPENDENT AUDITOR’S REPORT 60 CONSOLIDATED STATEMENT OF PROFIT OR LOSS 66 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER 67 COMPREHENSIVE INCOME CONSOLIDATED STATEMENT OF FINANCIAL POSITION 68 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 70 CONSOLIDATED STATEMENT OF CASH FLOWS 71 NOTES TO THE FINANCIAL STATEMENTS 72 Sichuan Energy Investment Development Co., Ltd. 1 ANNUAL REPORT 2020 DEFINITIONS In this annual report, the following expressions shall have the following meanings unless the context requires otherwise. “Annual General Meeting” or “AGM” the annual general meeting to be convened by the Company on 18 June 2021 “Articles of Association” or “Articles” the articles of association of the Company adopted by the written resolution of the Shareholders on 16 May 2017 and as amended, supplemented and otherwise modified from time to time “associate(s)” has the meaning ascribed thereto under the Listing Rules “Board” or “Board of Directors” the board of directors of the Company “China” or “PRC” the People’s Republic of China, excluding, for the purpose of this annual report, Hong Kong, Macau and Taiwan “Companies Ordinance” the Companies Ordinance (Chapter 622 of the Laws of Hong Kong) as amended, supplemented or otherwise modified from time to time “Company” Sichuan Energy Investment Development Co., Ltd.* (四川能投發展股份有限公司) (stock code: 1713), a company established in the PRC as a joint stock company with limited liability on 29 September 2011 “Company Law” the Company Law of the PRC (中華人民共和國公司法), as amended or otherwise modified from time to time “connected person(s)” has the meaning ascribed thereto under the Listing Rules “Controlling Shareholders” has the meaning ascribed thereto under the Listing Rules “Corporate Governance Code” code on corporate governance practices contained in Appendix 14 to the Listing Rules “Director(s)” the director(s) of the Company “Domestic Shares” domestic ordinary shares in the Company’s registered capital, with a nominal value of RMB1.00 each, which are subscribed for and paid up in Renminbi and held by PRC nationals or PRC-incorporated entities, and are not listed or traded on any stock exchange “EECS business and related business” electrical engineering construction service and related business, which includes the construction, installation, testing and maintenance of power facilities and related sales of electric equipment and materials “Energy Investment Group” Sichuan Energy Investment Group Co., Ltd.* (四川省能源投資集團有限責任公司), a company established in China on 21 February 2011 with limited liability, one of our Controlling Shareholders “Group” the Company and its subsidiaries “H Share(s)” the ordinary share(s) issued of RMB1.00 each in the share capital of the Company, which are listed on the Main Board of the Stock Exchange “HK$” and “HK cents” Hong Kong dollars and cents respectively, the lawful currency of Hong Kong 2 Sichuan Energy Investment Development Co., Ltd. ANNUAL REPORT 2020 DEFINITIONS “Hong Kong” The Hong Kong Special Administrative Region of the PRC “Hydropower Group” Sichuan Province Hydropower Investment and Management Group Co., Ltd.* (四 川省水電投資經營集團有限公司), a company established in China on 17 December 2004 with limited liability, one of our Controlling Shareholders “IFRS” International Financial Reporting Standards, which include standards, amendments and interpretations promulgated by the International Accounting Standards Board and the International Accounting Standards and interpretation issued by the International Accounting Standards Committee “Listing” listing of the H Shares of the Company on the main board of the Stock Exchange “Listing Date” 28 December 2018, on which the H Shares of the Company were listed on the Stock Exchange “Listing Rules” the Rules Governing the Listing of Securities on the Main Board of the Stock Exchange “Model Code” the model code for securities transactions by directors of listed issuers as set out in Appendix 10 of the Listing Rules “Prospectus” the prospectus dated 13 December 2018 in relation to the initial public offering of H Shares “RMB” Renminbi, the lawful currency of the PRC “SFO” the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong), as amended, supplemented and otherwise modified from time to time “Share(s)” the ordinary share(s) of RMB1.00 each in the share capital of the Company, including H Shares, Domestic Shares and Unlisted Foreign Shares “Shareholder(s)” the shareholder(s) of the Company “Sichuan Development” Sichuan Development (Holding) Co., Ltd.* (四川發展（控股）有限責任公司), a wholly state-owned company established on 24 December 2008 under the laws of the PRC with limited liability, one of our Controlling Shareholders “Stock Exchange” The Stock Exchange of Hong Kong Limited “subsidiary(ies)” has the meaning ascribed to it in Section 15 of the Companies Ordinance (Chapter 622 of the Laws of Hong Kong) “substantial shareholder(s)” has the meaning ascribed thereto under the Listing Rules “Supervisor(s)” the supervisor(s) of the Company “Supervisory Committee” the supervisory committee of the Company “Unlisted Foreign Shares” ordinary shares issued by the Company that are not listed on any stock exchange, with a nominal value of RMB1.00 each, and held by China Power International Development Limited (a company incorporated in Hong Kong) “%” per cent. Sichuan Energy Investment Development Co., Ltd. 3 ANNUAL REPORT 2020 CHAIRMAN’S STATEMENT The year 2020 represents an extraordinary year. Under the headwinds of severe and complicated international economic situation and the unexpected COVID-19 pandemic, the Company was confronted with the rising economic downward pressure and the energy development trend of accelerating transformation. With the full support from the shareholders of the Company and all walks of life of the society, the Company directly came up against difficulties, forged ahead with firm confidence and determination, and showed a sound development trend of steady progress and improvement. Looking back to 2020, the Company firmly established new development concept, adapted to and grasped the new normal of development, and made great efforts to ensure safety, maintain growth, promote reform, enhance management, and strengthen Party building to realise operating results growth despite economic downturn, advance industrial development steadily, and make historic high in major operating indicators. During the year, the electricity sales increased by 13.1% year on year, operating revenue increased by 22.1% year on year, profit before taxation increased by 47.6% year on year, net profit attributable to equity shareholders of the Company increased by 52.7% year on year, and earnings per share increased by 52.7% as compared with the previous year, which made a satisfactory conclusion of the “Thirteenth Five-Year Plan”. The year 2021, the first year of the “Fourteenth Five-Year Plan”, also marks the tenth anniversary of the establishment of the Company. Standing at a new starting point, the Company will accurately grasp the historical orientation in the new development stage, seize strategic development opportunities, consolidate the momentum for deepening reforms, give full play to the comprehensive advantages of the listed company, continuously optimize the industrial structure layout, enhance the risk control and profitability on an ongoing basis, strive to build the Company into a first-class modern integrated energy service provider with a focus on power supply by the end of the “Fourteenth Five-Year Plan”, realize the high-quality sustainable development of the Company, and deliver generous returns for Shareholders and investors. Moreover, the Company will actively make greater contributions to the sustainable development of the society and environment. Last but not the least, on behalf of the Board, I would like to extend my sincere gratitude and best wishes to all of our employees and their families for their hard working during the past year, to all our Shareholders, leaders at all levels and friends from all walks of life who have long been caring and supporting the development of the Company, as well as the business partners who have worked with us for common development. Chairman Xiong Lin Chengdu, 24 March 2021 4 Sichuan Energy Investment Development Co., Ltd. ANNUAL REPORT 2020 COMPANY PROFILE 1. CORPORATE INFORMATION 3. EXECUTIVE DIRECTORS Chinese Name: Mr. Xiong Lin (Chairman) 四川能投發展股份有限公司 Mr. Li Hui Ms. Xie Peixi English Name: Sichuan Energy Investment Development Co., Ltd.* 4. NON-EXECUTIVE DIRECTORS Registered Address: Ms. Han Chunhong No. 789, Renhe Road, Ms. Li Yu Wenjiang District, Chengdu City, Mr. Zhou Yanbin Sichuan Province, the PRC Mr. Xu Zhenhua Headquarters/Principal Place of Business in the PRC: 5. INDEPENDENT NON-EXECUTIVE No. 789, Renhe Road, DIRECTORS Wenjiang District, Chengdu City, Sichuan Province, the PRC Mr. Kin Kwong Kwok Gary Mr. Fan Wei Principal Place of Business in Hong Kong: Ms. He Zhen 40th Floor, Dah Sing Financial Centre, Mr. Wang Peng No. 248 Queen’s Road East, Wanchai, Hong Kong 6. SUPERVISORS