Annual Report 2023

Important Notice

The Board of Directors, the Supervisory Committee, directors, supervisors and the senior

executives of the Company guarantee the Annual Report does not have any fake records, misleading

statements or major omissions, and assume individual and joint liabilities for the truthfulness, accuracy

and completeness of the report.

II. All directors of the Company have attended the meeting of the Board of Directors for the

deliberation of this Annual Report.

III. BDO China Shu Lun Pan CPAs (Special General Partnership) has provided a standard and

unqualified audit report for the Company.

IV. Guo Xuyuan - the person in charge of the Company, Zhou Changxin - the principal of

accounting work and Zhao Lijun - the person in charge of the accounting firm (accountant officer)

declare that we can ensure the authenticity, accuracy and integrity of the financial statements in the

annual report.

Profit distribution plans or plans of share capital increase from accumulation fund in the

reporting period adopted by the Board of Directors

The 2023 Profit Distribution Plan approved at the 27th Meeting of the Company's 12th Board of Directors:

The Board of Directors proposes to distribute the cash dividend at RMB 0.45 per share (tax included), totaling

RMB 3,354,380,908.65 (accounting for 50% of the Company's net profits attributed to shareholders of listed

company for the year), based on 7,454,179,797 shares at the end of 2023.

VI. Risk disclosure statement about forward-looking statements

√ Applicable □ Not Applicable

The forward-looking statements of the Company about future development strategies and business plans

don't constitute any substantive commitment of the Company to investors. Investors shall pay attention to

investment risks.

VII. Whether the capital is occupied by the controlling shareholder and its related parties for the

non-operating capital occupation

VIII. Whether there is any external guarantee violating the specified decision-making procedure

IX. Whether more than half of the directors are unable to ensure the authenticity, accuracy and

completeness of the annual report disclosed by the Company

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Annual Report 2023

X. Major risk warning

The Company analyzes the possible impact of relevant risks on the Company's business and development

in this report. For details, please refer to (IV) Possible risks in Subsection “VI. Discussion and Analysis on the

Future Development of the Company” in Section III Management Discussion and Analysis.

XI. Others

□ Applicable √ Not Applicable

RESPONSIBILITY STATEMENT

For the purposes of the United Kingdom's Financial Conduct Authority's Transparency Rule 4.1.12(3), each

director (whose names and functions are listed on page 59 to 63, to the best of his or her knowledge, confirms that:

• the financial statements, prepared in accordance with the applicable set of accounting standards, give a

true and fair view of the assets, liabilities, financial position and profit or loss of the company and the undertakings

included in the consolidation taken as a whole; and

• the management report (being this annual report, excluding the financial statements referred to above and

the independent auditor's report thereon (starting form page 128) includes a fair review of the development and

performance of the business and the position of the company and the undertakings included in the consolidation

taken as a whole, together with a description of the principal risks and uncertainties that they face.

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Annual Report 2023

Contents

Section I

Interpretations ...........................................................................................................................5

Section II

Company Profile and Key Financial Indicator s .....................................................................7

Section III Management Discussion and Analysis ...................................................................................13

Section IV Corporate Governance ...........................................................................................................54

Section V

Environmental and Social Responsibilitie s ...........................................................................81

Section VI Important Matters ..................................................................................................................84

Section VII Changes in Shares and Shareholders ..................................................................................102

Section VIII Preferred Shares .................................................................................................................... 110

Section IX Bond s ...................................................................................................................................... 111

Section X

Financial Reports ..................................................................................................................128

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Section I Interpretations

I. Interpretations

For the purpose of this Report, the following words shall have the meanings as follows, unless

otherwise specified:

Interpretations of common words

CSRC

NDRC

means

China Securities Regulatory Commission

the National Development and Reform Commission of the PRC

the State-owned Assets Supervision and Administration

Commission of the State Council

SASAC

means

SSE

Shanghai Stock Exchange

SDIC,

shareholder

controlling

the

State Development & Investment Corp., Ltd.

Company,

Company, or SDIC Power

SDIC Power Holdings Co., Ltd.

means

Yalong Hydro

means

Yalong River Hydropower Development Co., Ltd.

SDIC Yunnan Dachaoshan Hydropower Co., Ltd.

SDIC Gansu Xiaosanxia Power Co., Ltd.

SDIC Dachaoshan

SDIC Xiaosanxia

SDIC Jinneng, SDIC

Beijiang

Tianjin SDIC Jinneng Electric Power Co., Ltd.

means

SDIC Qinzhou

SDIC Qinzhou Electric Power Co., Ltd.

SDIC Qinzhou Second Power Co., Ltd.

SDIC

Qinzhou

Second Power

Huaxia Power

SDIC Panjiang

means

Xiamen Huaxia International Power Development Co., Ltd.

SDIC Panjiang Power Co., Ltd.

SDIC

Meizhouwan

Genting

SDIC Genting Meizhouwan Electric Power Co., Ltd.

means

SDIC New Energy

Investment

SDIC New Energy Investment Co., Ltd.

Jaderock Investment Singapore Pte. Ltd.

Redrock Investment Limited

Jaderock Investment,

or Jaderock

Red

Rock

means

Investment, or Redrock

Installed capacity

the sum of rated power of power generating equipment

Total

capacity

installed

the total installed capacity of operating power plants owned by a

company and its affiliates or holdings

Holding

capacity

the sum of the installed capacity of a company's power plants and

the existing power plants in which the company holds controlling shares

means

the sum of installed capacity multiplying by the shareholding ratio

means of a company's power plants and the existing power plants in which the

company holds shares or controlling shares

Attributable installed

capacity

the quantity of active energy generated from primary energy by

means generator units through processing, namely, the product of actual active

power and actual run time of generator sets

Power generation

On-grid energy

the measured electricity generated by power plants and connected

means

to the grid connection points, also known as sold energy

means

the proportion of the electric power consumption of generating

Overall

electric

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Annual Report 2023

power consumption rate

equipment and other electric power consumption during power

generation in the power generation

the operating hours when the power generation from the generating

equipment is converted to rated power within a period. This indicator is

used to reflect the utilization of the generating equipment calculated as

per its nameplate capacity.

Utilization hours

Standard coal

means

the ideal coal that generates calorific value of 29,307.6 kJ per

kilogram

means

Coal consumption for

power generation

the standard coal consumption per unit power generation

the standard coal consumption per unit power supply

the global depository receipt

Coal consumption for

power supply

means

GDR

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Annual Report 2023

Section II Company Profile and Key Financial Indicators

I. Company information

Company name in Chinese

国投电力控股股份有限公司

国投电力

Company abbreviation in Chinese

Company name in English

SDIC Power Holdings Co., Ltd

SDIC Power

Company abbreviation in English

Legal representative of the Company

Guo Xuyuan

II. Contacts and contact information

Secretary of the Board of Directors

Representative of Security Affairs

Name

Gao Hai

Wang Weirong

Address

Floor 12, Building 147, Xizhimen South St,

Xicheng District, Beijing

Floor 12, Building 147, Xizhimen South St,

Xicheng District, Beijing

Tel.

010-88006378

Fax

010-88006368

E-mail

[email protected]

III. Basic Information

Registered address of company

Room 1108, Floor 11, Building 147, Xizhimen South St,

Xicheng District, Beijing

Change in the registered address

Company office address

No. 575, Zhangsutan, Chengguan District, Lanzhou City,

Gansu Province (changed to the current registered address in

December 2014)

Building 147, Xizhimen South St, Xicheng District,

Beijing

Postal code of business address

Company website

E-mail

100034

www.sdicpower.com

[email protected]

IV. Information disclosure and preparation place

Names and websites of the media selected by

the Company to disclose the annual report

China Securities News, Shanghai Securities News

Stock exchange websites where the

Company discloses the Annual Report

www.sse.com.cn

Preparation place for the annual report of the

Company

Securities Department, Floor 12, Building 147, Xizhimen

South St, Xicheng District, Beijing

V. Company shares

Company shares

type

Stock

exchange

Stock abbreviation

code

Stock

abbreviation prior to

change

SDIC Power

A-

Shanghai

Stock Exchange

600886

SDIC

Hubei Xinghua

GDR

London

SDIC Power Holdings Co., Ltd

Stock Exchange

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Annual Report 2023

VI. Other relevant information

BDO China Shu Lun Pan CPAs (Special General

Partnership)

Name

Tower A, China Overseas International Center,

Accounting firm

engaged

Company (Domestic)

the

Office address

Building 7, Courtyard 5, Anding Road, Chaoyang District,

Beijing

Names of the signing

Shi Aihong, Zhang Guanwei

accountants

Name

CITIC Securities Co., Ltd.

CITIC Securities Building, 48 Liangmaqiao Road,

Chaoyang District, Beijing Municipality

Office address

Sponsor

institution

Names of the signing

sponsor representatives

Li Ning, Wu Peng

performing

continuous

supervision

responsibility in the

reporting period

the

The continuous supervision period is from December 9,

2021 to December 31, 2022. As of December 31, 2022, the

Company's raised funds have not been used up, and the

The

period

for sponsor institutions shall continue to perform their

continuous supervision responsibility for the use of the

unused raised funds. In July 2023, the Company's raised

funds were used up and the continuous supervision work

ended.

continuous supervision

Name

SDIC Securities Co., Ltd.

12/F, SDIC Financial Building, No. 2 Fuchengmen

North Street, Xicheng District, Beijing

Office address

Sponsor

institution

Names of the signing

sponsor representatives

Tian Zhu, Wang Yun

performing

continuous

supervision

responsibility in the

reporting period

the

The continuous supervision period is from December 9,

2021 to December 31, 2022. As of December 31, 2022, the

Company's raised funds have not been used up, and the

The

period

for sponsor institutions shall continue to perform their

continuous supervision responsibility for the use of the

unused raised funds. In July 2023, the Company's raised

funds were used up and the continuous supervision work

ended.

continuous supervision

VII. Key accounting data and financial indicators for the past three years

(I) Key accounting data

Unit: Yuan

Currency: RMB

Increase or

2022

decrease in

the current

period

Key

accounting

data

compared

2023

2021

Before

adjustment

to the same

period of

the

After adjustment

year (%)

Operatin

g revenue

Net

profits

attributable to

56,711,862,4

69.69

50,489,243,623.5

43,766,254,477.9

12.32

6,704,936,95

3.85

4,080,677,255.05

4,079,375,650.03

64.31

2,455,819,539.24

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Annual Report 2023

shareholders

of the listed

company

Net

profit

attributed to

shareholders

of listed

company

after

6,589,378,54

1.36

3,951,411,775.93

3,950,110,170.91

66.76

-3.17

2,189,690,793.26

deducting

non-

recurring gain

or loss

Net cash

flows from

operating

activities

21,268,122,5

90.08

21,963,501,650.8

14,631,389,197.1

Increase

or decrease

at the end

At the end of 2022

the

period as

compared

to that of

the same

period of

the

At the end of

2023

At the end of

2021

Before

adjustment

After adjustment

year (%)

Net

assets

attributable to

shareholders

of the listed

company

Total

59,066,528,9

50.49

54,514,407,708.2

54,516,693,442.1

51,474,926,940.9

8.35

7.38

277,363,021,

076.32

258,299,518,378.

258,254,454,957.

241,405,708,153.

assets

(II) Key financial indicators

Increase

2022

or decrease

in the current

period

Key financial indicators

Basic earnings per share

(RMB/share)

Diluted earnings per share

(RMB/share)

Basic earnings per share

2023

compared to

the same

period of the

previous year

(%)

2021

After

Before

adjustment adjustment

0.8754

0.5215

0.5213

67.86

0.3229

after deducting non-recurring

gain or loss (RMB/share)

0.8599

12.78

0.5042

8.25

0.5040

8.25

70.55

0.2849

5.39

Weighted average ROE (%)

Increased

by 4.53%

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Annual Report 2023

Weighted average ROE after

deducting non-recurring gain or

loss (%)

Increased

by 4.57%

12.55

7.98

7.97

4.75

Explanation on the key accounting data and financial indicators of the Company for the past

three years by the end of the reporting period

□ Applicable √ Not Applicable

VIII. Difference in Accounting Data under Domestic and Foreign Accounting Standards

(I) Difference arising from the Net Profit and Net Assets attributed to Shareholders of

Listed Company in the Financial Statements Disclosed Simultaneously Pursuant to the

International Accounting Standards and the PRC GAAP Standards

□ Applicable √ Not Applicable

(II) Difference arising from the Net Profit and Net Assets Attributed to Shareholders of

Listed Company in the Financial Statements Disclosed Simultaneously Pursuant to the Foreign

Accounting Standards and the PRC GAAP Standards

□ Applicable √ Not Applicable

(III) Explanation on the Difference between Domestic and Foreign Accounting Standards

□ Applicable √ Not Applicable

IX. Quarterly key financial data in 2023

Unit: Yuan

Currency: RMB

(January to

March)

(July to

September)

(October to

December)

(April to June)

13,255,789,154.2

13,110,748,262.0

16,182,175,169.8

14,163,149,883.5

Operating revenue

Net

attributable

profits

1,613,692,031.23

1,723,230,579.77

2,715,058,101.81

652,956,241.04

shareholders of the listed

company

Net

attributable

profits

shareholders of the listed

company after deducting

non-recurring profits and

losses

1,606,042,420.18

4,779,319,136.58

1,712,317,477.19

4,337,439,487.18

2,705,900,308.39

8,440,455,809.36

565,118,335.60

Net cash flows from

operating activities

3,710,908,156.96

Explanation for discrepancy between quarterly data and those in periodic report disclosed

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Annual Report 2023

□ Applicable √ Not Applicable

X. Non-recurring Gain or Loss Items and Amounts

√ Applicable □ Not Applicable

Unit: Yuan

Currency: RMB

Amount of 2021

Amount of

Non-recurring gain or loss items

2023

Amount of 2022

Gains or losses from disposal of non-

current assets , including the write-off part

for which the assets impairment reserve has

been provided

-1,068,584.39

52,100,273.72

99,270,129.26

18,641,285.00

Government subsidies recognized in

the current profit and loss, excluding those

closely related to the normal operation of

the Company and granted on an ongoing

basis in standard fixed amount or fixed

quota in accordance with government

policies and regulations

38,292,270.80

-1,467,144.90

78,542,732.95

Profits and losses on the change of fair

value of trading financial assets and trading

financial liabilities held by non-financial

businesses, profits and losses

from

21,746,895.60

72,932,450.97

30,078,392.84

disposal of financial assets and financial

liabilities, except for effective hedging

business related to the Company's normal

business

Income arising from the part when the

fair value of net identifiable assets of the

investee the enterprise should enjoy when it

acquired less than the cost of investment in

the subsidiaries, associates and joint

ventures

Gains and losses related to debt

restructuring

56,660,000.00

99,393,627.72

Other non-operating incomes and

expenses other than the above

157,914,192.79

283,231.06

19,307,083.56

3,181,056.25

Other gain or loss Items and Amounts

conforming to the definition of non-

recurring gain or loss

4,846,426.73

Less: Affected amount of income tax

4,309,590.28

74,085,962.59

115,558,412.49

27,120,871.90

39,219,087.37

129,265,479.12

32,002,989.84

62,963,180.39

266,128,745.98

Affected amount of minority equity

(after tax)

Total

Reasons shall be given for the non-recurring gain or loss items defined by the Company

according to the Explanatory Announcement No. 1 on Information Disclosure for Companies

Offering Securities to the Public - Non-Recurring Gain or Loss, and for the non-recurring gain or loss

items listed in the Explanatory Announcement No. 1 on Information Disclosure of Companies

Offering Securities to the Public - Non- Recurring Gain or Loss, which is defined as regular gain or

loss.

□ Applicable √ Not Applicable

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Annual Report 2023

XI. Items measured at fair value

√ Applicable □ Not Applicable

Unit: Yuan

Currency: RMB

Beginning

balance

17,831,453.40

57,052,200.00

Change for the

period

-1,467,144.90

-1,383,366.05

Effect on the

profit for the period

-1,467,144.90

Item

Ending balance

ST Yunwei

Guian New

16,364,308.50

55,668,833.95

0.00

Area

Yunnan Coal

59,951,359.86

61,495,759.86

1,544,400.00

and Chemical

Industry Group

Co., Ltd.

0.00

SDIC Hami

Industry

National Coal

Transaction Center

Beijing

9,559,760.00

12,000,000.00

6,597,610.00

7,072,885.00

12,000,000.00

6,597,610.00

-2,486,875.00

0.00

Electricity

Transaction Center

Tianjin

Electricity

Transaction Center

Sichuan

Electricity

0.00

9,541,095.99

3,177,388.07

2,607,256.83

9,541,095.99

3,177,388.07

2,607,256.83

Transaction Center

Guangxi

Electricity

Transaction Center

Zhongmin

Energy Co., Ltd.

Contingent

0.00

117,190,605.48

113,320,350.00

95,367,401.48

122,054,850.00

-21,823,204.00

8,734,500.00

Consideration of

ICOL Equity

Interest

8,734,500.00

7,267,355.10

Total

408,829,079.63

391,947,389.68

-16,881,689.95

XII.

Other

□ Applicable √ Not Applicable

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Annual Report 2023

Section III Management Discussion and Analysis

I. Discussion and analysis of operations

In 2023, under the leadership of the shareholders’ meeting and the Board of Directors, the

Company adhered to the principle of seeking progress while maintaining stability and promote

stability through progress, focused on enhancing the core functions and enhancing its core

competitiveness, coordinated the work safety and stability with production and operation, promoted

the coordination of stock efficiency improvement and incremental development, and highlighted the

ability to create value, thus achieving effective improvement in quality and the reasonable growth in

quantity. The Company has taken solid steps toward the high-quality development.

(I) Main operating results

In 2023, the Company reported operating revenue of RMB 56.712 billion, up 12.32%, net profits

attributable to shareholders of listed company was RMB 6.705 billion, representing a year-on-year

increase of 64.31%; the basic earnings per share was RMB 0.8754, a year-on-year increase of 67.86%.

As of the end of 2023, the total assets of the Company were RMB 277.363 billion, an increase of

RMB 19.064 billion over that at the end of the previous period; the asset-liability ratio was 63.18%,

a year-on-year decrease of 0.57%.

In 2023, the Company's power generation was 161.973 billion kWh, with a year-on-year increase

of 3.35%; the on-grid energy was 157.639 billion kWh, an increase of 3.22% year-on-year; and the

on-grid price was RMB 0.374/kWh, with a year-on-year increase of 6.55%.

By the end of 2023, the Company has put into operation, with a holding installed capacity of

40.8566 million KW, an increase of 3.0924 million KW year-on-year. Among them, the installed

capacity of clean energy was 28.3158 million KW, accounting for 69.31%, with a year-on-year

increase of 0.77 percentage point.

(II) Business development

The Company made every effort to promote the development of clean energy, achieving a

significant increase in clean energy. In 2023, the Company achieved new breakthroughs in key

development areas and projects. The company completed the approval (filing) of new energy projects

of a certain scale in Sichuan, Yunnan, Guangxi, Xinjiang, Tibet, Shaanxi, Hebei, Fujian, Shanxi,

Hubei, Tianjin, Zhejiang and other regions, and reserved a batch of new energy development

resources, among which the business development in Tibet achieved zero breakthrough; the Company

won the bid for Changle offshore wind power project in Fujian. In addition, based on the needs of

regional development, four new energy regional companies were established to support the

development of new energy in key regions, which further enhanced the Company’s specialty and

influence in the new energy business development.

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Important progress was made in building an integrated water, wind and PV base along the

Yalong River Basin. In the year, a number of clean energy projects achieved breakthroughs. Kela

Phase I PV Project and Laba Mountain Wind Power Project were put into operation, and Yagen First-

stage Hydropower Project was approved.

The Company's new power business development continues to advance. The construction

of Guangxi Pubei Shared Energy Storage Project which is the Company's first shared energy storage

project has started.

The thermal power development work was carried out steadily as per the established

strategy, and Meizhou Bay Phase III Thermal Power Project was approved.

The international businesses are steadily promoted. The Company actively participates in the

construction of “One Belt and One Road”, and has completed hydropower construction in Batang,

Indonesia as scheduled; it has also completed the solid preparation work for the commencement of

these two projects in Thailand. The Company is deeply engaged in the existing European projects,

and the overall progress is satisfactory; it has successfully obtained the CFD for Benbrack Project,

thus significantly improving the project return level.

(III) Operation management

Intensify marketing efforts and improve the efficiency to increase the revenue. The

Company actively studied and judged the market situation, paid close attention to the marketing of

electric energy, optimized the trading strategies and has achieved a rise in both sales volume and

selling price. The Company deeply analyzed the regional power trading rules to maximize the income

from electricity price, and its thermal power enterprises actively used the auxiliary service market

and these two rules to increase their income. The Company properly organized the coordinated

trading of carbon quotas and achieved an increase of over RMB 100 million in the year.

Strictly reduce the cost of bidding and procurement. The Company strictly controlled the

costs of the procurement process, and controlled the major and higher-level bidding projects

throughout the year within the budget range. It strengthened the research and judgment of the coal

market situation, optimized the transportation plan, and reasonably controlled the rhythm of the

procurement of coal in the market. It also strengthened the control of indicators in the fuel plants to

improve the management efficiency.

Strengthen the financial control to reduce the costs. The Company closely tracked the policy

trends, strengthened the capital control, and reduced the financial costs by means of financing

comparison and selection and the replacement of stock loans with high interest rates. It seized the

window phase for the issuance of bonds with low interest rates to reduce the capital cost, and guided

investment enterprises to actively seek for tax incentives and enjoy a tax relief to the greatest extent.

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Annual Report 2023

Strengthen the relationship with investors. The Company organized the interaction activities

with investors in various form to build a multi-level value delivery work system. Throughout the year,

the Company received more than one thousand investors and held a performance presentation meeting

each time after a regular report was disclosed.

(IV) Production infrastructure

Making continuous efforts in infrastructure construction. The Company has promoted the

construction of projects in a practical and efficient manner, and a number of new energy (2,432,400

kW) and thermal power (660,000 kW) projects in Sichuan, Yunnan, Guizhou, Gansu, Guangxi and

other regions have been put into production as scheduled; the Company has also strengthened the

construction of infrastructure systems, formulated relevant construction guidelines and self-

inspection forms for projects, thus improving the process control ability.

Continuously improving production management. The Company has comprehensively

promoted the production management standardization system of thermal power enterprises, in order

to provide systematic and scientific solutions for efficient management of enterprises; has formulated

and published the Measures for the Supervision and Management of New Energy Technologies, and

has maximized the role of technical supervision in the work safety guarantee system; has strengthened

the management of equipment reliability to ensure that potential hazards are detected and eliminated

as early as possible, and create favorable conditions for ensuring the safe and stable supply of energy.

Adhering to the leading role of scientific and technological innovation. The Company has

strengthened the scientific and technological innovation, promoted the deep integration of industry,

university and research, and continued to increase the investment in technological research, achieving

a significant improvement of QC results of the enterprises and the great growth of the number of

authorized invention patents.

Keeping production indicators remained ahead. The Company has steadily promoted the

energy conservation and consumption reduction, with the year-on-year decrease of net coal

consumption rate. 8 hydropower units and 1 thermal power unit have been awarded “Excellent Unit"

energy efficiency benchmarking of China Electricity Council. The Company has strengthened its

entity responsibilities for ecological and environmental protection, and has achieved a rate of 100%

in the disposal of solid waste and hazardous waste by law.

II. Industry of the Company during the Reporting Period

According to the report of the China Electricity Council, the electricity consumption of the whole

society in 2023 was 9.22 trillion KWH, an increase of 6.7% over the previous year. The growth rate

of electricity consumption was increased by 3.1% over 2022, and the recovery of the national

economy has boosted the growth of electricity consumption over the previous year. By quarter: The

growth rate of the total electricity consumption in each quarter was 3.6%, 6.4%, 6.6% and 10.0%

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respectively, with a year-on-year growth rate rise quarter by quarter. By industry: The electricity

consumption of the primary, secondary and tertiary industries was 127.8 billion kWh, 6.07 trillion

kWh and 1.67 trillion kWh respectively, an increase of 11.5%, 6.5% and 12.2% respectively over the

previous year; the domestic electricity consumption of urban and rural residents was 1.35 trillion kWh,

an increase of 0.9% over the previous year. By region: The total electricity consumption in central,

western and northeastern regions was increased by 6.9%, 4.3%, 8.1% and 5.1%, respectively. The

total electricity consumption in these 31 provinces in the country shows a positive growth, of which

Hainan, Tibet, Inner Mongolia, Ningxia, Guangxi and Qinghai have a growth rate of more than 10%

over the previous year.

By the end of 2023, the installed capacity throughout China reached 2.92 billion kW, an increase

of 13.9% over the previous year. Among them, the installed capacity of thermal power was 1.39

billion kW, an increase of 4.1% over the previous year; that of hydropower was 420 million kW, an

increase of 1.8% over the previous year; that of nuclear power was 56.91 million kW, an increase of

2.4% over the previous year; that of wind power was 441 million kW, an increase of 20.7% over the

previous year; the installed capacity of solar power generation was 609 million kW, an increase of

55.2% over the previous year. The installed capacity of renewable energy exceeded 1.4 billion kW,

historically higher than that of coal power, and it accounts for more than 50% of the total installed

capacity of power generation. The installed capacity of coal power was 1.16 billion kW, and its

proportion dropped below 40% for the first time.

In 2023, the cumulative average utilization hours of power generation equipment in 6,000kW or

higher power plants reached 3,592 hours, a decrease of 101 hours compared with the same period of

last year. From the perspective of types, the utilization hours of hydropower were 3,133 hours, a

decrease of 285 hours over the previous year; those of nuclear power were 7,670 hours, an increase

of 54 hours over the previous year; those of grid-connected wind power were 2,225 hours, an increase

of 7 hours over the previous year; those of grid-connected solar power were 1,286 hours, a decrease

of 54 hours over the previous year; those of thermal power were 4,466 hours, an increase of 76 hours

over the previous year.

In 2023, the overall supply and demand of electricity in the whole country was substantially

balanced, with good results achieved in guaranteed supply of electricity. At the beginning of the year,

due to the cumulative influences from factors such as insufficient water, tight supply of coal for

electric power, and the growth of power load, a few number of provincial power grids in Yunnan,

Guizhou and Western Inner Mongolia experienced a situation of tight power supply in some periods.

Through the coordinated efforts from source, grid, load and storage, the bottom line of electricity

safety for people's livelihood was successfully safeguarded. In the summer, relevant government

departments at different levels and power enterprises made full preparations in advance to maintain

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Annual Report 2023

an overall balance of the power supply and demand throughout the country during the peak summer,

and none of provincial power grids taken orderly power consumption measures, creating the best

results of power supply in the peak summer power supply in recent years. In the winter, many places

experienced large range of strong cold surge and strong rain and snow weather in December, and the

power industry enterprises made their best efforts to cope with the rainy, snowy and freezing weather.

The power supply of nearly ten provincial power grids was tight, and some provincial power grids

guaranteed the safe and stable operation of the power system by taking demand side response

measures.

In 2023, the National Development and Reform Commission and the National Energy

Administration jointly released the Notice on the Establishment of Coal Power Capacity Pricing

Mechanism, which fully reflected the value of coal power in supporting and regulating the electric

power system, so as to ensure the safe operation of the power system in a better manner and lay a

solid foundation for the development of new energy on a larger scale. China is speeding up the

construction of a new-type power system and the transformation of energy structure, and the

proportion of installed capacity of wind power and solar energy has continued to rise. The hydro-

wind-solar integration base and Desert-Gobi large-scale wind-solar base and offshore wind power

base projects have become the important development directions. As clean energy land resources are

gradually becoming scare, the competition for clean energy project resources is still extremely fierce,

resulting in a higher difficulty in acquiring projects; however, the new energy project resources

continue to be released under the background of "peak carbon dioxide emissions and carbon

neutrality", and the current stage is a period with coexistence of opportunities and challenges, and

accelerated transformation of energy structure.

III.Business of the Company during the Reporting Period

(I) Main business of the Company

The business scope of the Company mainly covers investment, construction, operation and

management of energy projects dominated by power generation; development and operation of new

energy projects, high and new technology and environmental protection industry; development and

operation of electric power products as well as information and consultation services. The clean

energy investment and development mainly focusing on the new energy has been the main growth

point for the Company's business; the Company has made relevant deployments in hydropower,

thermal power, wind power, solar power and so on, and has also actively explored new business forms

and new models related to the clean energy.

(II) Operation mode

The Company is engaged in the construction and operation of various types of energy and power

generation projects in the form of equity investment.

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Annual Report 2023

(III) Market position of the Company

In terms of the installation structure, the Company is an integrated electric power listed company

dominated by clean energy and supplemented by hydropower, thermal power, wind power and solar

power. With the holding installed capacity of hydropower of 21.28GW, it is the third largest listed

company concerning the hydropower installed capacity and is an industry leader. The Company is

vigorously developing the clean energy business, and the proportion of clean energy installed capacity

of the Company continued to increase steadily to 69.31% by the end of 2023.

In terms of business presence, the Company focuses on the domestic market and is also seeking

overseas business. Its domestic business is mainly distributed in Sichuan, Tianjin, Fujian, Guangxi,

Yunnan, Gansu, Xinjiang, Guizhou, Qinghai, Anhui, Shaanxi, Shanxi, Jiangsu, Zhejiang, Ningxia,

Jiangxi, Hainan, Hebei, Liaoning, Tibet Shandong, Hunan, Guangdong and other provinces and

regions.

Compared with other companies in the same industry, the Company's main advantage lies with

the strong profitability. Despite intensified market competition and the strict energy efficiency and

environmental protection requirements, the Company obtains a significant advantage due to its power

structure mainly consisting of the clean energy. Its projects have high asset quality and high ability

to resist risks, and the Company's changes in performance are in line with the development of the

industry.

IV. Analysis of core competitiveness during the reporting period

√ Applicable □ Not Applicable

(I) Absolute control over the high-quality hydropower assets of Yalong Hydro

Yalong Hydro, of which 52% of the shares are held by the Company, is the only hydropower

developer on the Yalong River. It demonstrates strong advantages like large-scale development and

unified scheduling. Yalong River basin has abundant water, centralized drop, less hydropower

inundation loss, prominent scale advantage, outstanding cascade compensation benefit, high

operating efficiency, excellent economic and technical indicators and high operation efficiency. The

installed capacity on the river could be up to 30 GW, ranking No.3 among the 13 major hydropower

bases in China. As of the end of the reporting period, 19.2GW installed capacity had been put into

operation, of which 3.72 GW was under construction, verified and approved.

(II) High proportion of clean energies, and obvious advantage of green and low-carbon

development

The Company always adheres to the green and high-quality development, and has a reasonable

power supply structure and strong investment capacity. By the end of 2023, the Company's installed

capacity of clean energy accounted for 69.31%, of which that of hydropower accounted for 52.08%,

that of new energy accounted for 17.22%, and the rest consisted of clean and efficient thermal power

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Annual Report 2023

projects. The advantages of each power supply are complementary and the risk resistance capacity is

strong. Hydropower is the largest business segment of the Company, which boasts excellent resource

endowment and ample project reserves. The total installed capacity of hydropower development in

the entire Yalong River basin is approximately 30 million kW, and the Company is fully promoting

the development of hydro-wind-solar integration bases, relying on its hydropower resources. The

installed capacity of new energy has maintained a rapid growth, with high rate of investment

compliance, strong profitability of projects already put into operation, and rich project resources.

The installed capacity of thermal power of the Company is mainly generated by high-parameter

& large-sized units, and the Company has no units with a capacity below 300,000 kW (excluding

waste-to-energy generation), and the million-kilowatt units account for 63.97% of the installed

capacity of thermal power; the thermal power is mainly concentrated in the coastal and other

economically-developed areas with strong demand for electricity and obvious regional advantages.

The Company makes an active response to the energy saving and emission reduction policy of China

by continuously strengthening the energy efficiency level and environmental protection level of

thermal power generator units, with the rate of provision of desulfuration, denitration and dedusting

equipment up to 100%. 100% of the Company's conventional coal-fired units have ultra-low emission

capacity.

(III) Professional manager system established to implement the contract-based term

system and enhance the market-oriented operation vitality of the Company

Through establishing a professional manager system, the Company has strengthened its top

management's market awareness and contract awareness, and created an internal atmosphere of

unlimited promotion and demotion and a performance-oriented salary. And it has cultivated its

professional managers to be contract and market-oriented and professionalized, so as to efficiently

consummate the corporate governance structure and effectively stimulate the vitality of its executive

management and the development momentum of the entire company. In 2023, the tenure system and

contract management of the headquarters and holding enterprises were continuously promoted, the

signing rate of performance contracts for enterprise managers reached 100%, the proportion of open

recruitment of employees reached 100%, and the market-oriented operation mechanism was further

improved.

(IV) Strong capability to create benefits in domestic and international power business

operations

The Company always adheres to the investment management principle of "benefit first", and the

profit per kW is higher than the industry average. The Company has rich experience in the

development, construction and operation of domestic and foreign power businesses and a strong

ability to create benefits. In China, the thermal power business has continuously explored the multi-

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Annual Report 2023

coal blending technology, which has greatly reduced the fuel cost; the hydropower business has strong

fine management ability and high profit return; the new energy investment return level has reached

the standard, and the bidding research ability and operation management ability have been verified.

Overseas, the Company has continuously accumulated investment experience in international

renewable energy projects. Along the Belt and Road, the Company has established a good mutual

trust relationship with central enterprises and overseas investment partners, complementing each

other's advantages in project development and construction for mutual benefit and win-win results.

In Europe, Red Rock Power Limited, a wholly-owned subsidiary, has the development, operation and

management capability of the whole life cycle in the wind power field of the United Kingdom.

(V) Mature experience in capital operation and strong support from majority

shareholders

Since its backdoor listing in 2002, the Company has made full use of the financing measures

like non-Public Offering, GDR, allotment, public offering, convertible bonds, corporate bonds and

medium- term notes to fund a large number of its high-quality under-construction and reserve projects

at home and abroad, through the listed company platform. In this way, the Company's assets, installed

capacity, profits and market value grow rapidly, and it has accumulated rich experiences in capital

operation, strongly supporting it to improve its marketization and internationalization level.

V. Major operational particulars during the reporting period

In 2023, the operating revenue of the Company was RMB 56.712 billion, with a year-on-year

increase of 12.32%, and the operating cost was RMB 36.250 billion, with a year-on-year increase of

5.65%. As of December 31, 2023, the Company's total assets were RMB 277.363 billion, with an

increase of RMB 19.064 billion over that at the end of the previous period, and the total liabilities

were RMB 175.246 billion, with an increase of RMB 10.567 billion over that at the end of the

previous period. At the end of the reporting period, the asset-liability ratio was 63.18%, decreased by

0.57% from the end of the previous period, and the net assets attributed to the shareholders of listed

company were RMB 59.067 billion, increased by 8.35% from the end of the previous period.

(I) Analysis of principal businesses

1. Analysis of changes of relevant items in income statement and cash flow statement

Unit: Yuan

Currency: RMB

Item

Amount of

corresponding period

last year

Amount of current

period

Change

(%)

Operating revenue

Operating cost

Selling expenses

Administration expenses

R&D expenses

56,711,862,469.69

36,249,545,276.73

46,050,383.00

1,769,273,574.89

100,605,481.23

3,975,288,601.66

50,489,243,623.57

34,311,491,183.62

37,350,577.69

1,479,853,016.95

39,870,284.21

12.32

5.65

23.29

19.56

152.33

-14.59

Financial expenses

4,654,513,767.17

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Annual Report 2023

Net cash flows from operating

activities

Net cash flows from investing

activities

Net cash flows from financing

activities

21,268,122,590.08

-20,656,256,206.62

-939,111,792.32

21,963,501,650.82

-15,688,820,561.01

-3,574,215,648.82

-3.17

-31.66

73.73

Detailed explanation of major changes in the Company's business type, profit composition or

profit source during the period

□ Applicable √ Not Applicable

2. Analysis on revenue and cost

√ Applicable □ Not Applicable

In 2023, the operating revenue of the Company was RMB 56.712 billion (including revenue

from the main business of RMB 56.312 billion), with a year-on-year increase of 12.32%, mainly due

to the year-on-year increase in on-grid energy and tariff. The operating cost was RMB 36.250 billion

(including the main business cost of RMB 36.011 billion), with a year-on-year increase of 5.65%,

mainly due to the increase of the cost of coal-fired power generation during the year with the increase

of power generation, and the increase in depreciation expense of installed capacity newly put into

operation this year.

(1). Performance of principal businesses by segment, by product, by region and by sales

model

Unit: 10,000 yuan Currency: RMB

Principal Businesses by Segment

Increase/decre

ase in operating

revenue from last

year (%)

Increase/decre

ase in the operating

cost from last year

(%)

Increase/decre

ase in the gross

margin from last

year (%)

Gross

margin

(%)

segment

Operating

revenue

Operating

cost

5,326,331.

3,274,598.

38.

11.34

4.15

Increased by

4.24%

Increased by

12.52%

Power

Others

304,903.6

326,474.5

35.78

21.59

7.07

Principal Businesses by Product

Increase/decre

ase in operating

Increase/decre

ase in the operating

cost from last year

(%)

Increase/decre

ase in the gross

margin from last

year (%)

Gross

margin

product

Operating

revenue

Operating

cost

revenue from last

(%)

year (%)

Power

Others

5,326,331.

3,274,598.

38.

11.49

4.15

Increased by

4.24%

Increased by

12.52%

304,903.6

326,474.5

35.78

21.59

7.07

Principal Businesses by Region

Increase/decre

ase in the operating

cost from last year

(%)

Increase/decre

ase in the gross

margin from last

year (%)

Gross

region

Operating

revenue

Operating

cost

ase in operating

margin

revenue from last

(%)

year (%)

North

China

East

China

South

China

Central

China

736,526.5

699,186.5

5.0

20.17

10.

6.18

Increased by

17.06%

Increased by

9.17%

Increased by

15.88%

Increased by

56.63%

1.86

-3.69

2.10

876,201.0

784,346.6

824,113.9

685,659.0

16.

21.59

56.

6,275.10

3,695.33

2,721.78

2,346.91

36.

Decreased by

13.45%

120.57

179.83

Northeast

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Annual Report 2023

China

Northw

est China

Southw

est China

The UK

289,267.3

136,791.1

52.

58.

Decreased by

0.83%

Decreased by

1.35%

15.35

9.34

17.41

13.03

2,717,021.

1,126,301.

Decreased by

11.11 percentage

points

66.

14,589.85

4,857.74

-44.80

-17.19

Indones

Thailan

157,779.8

155,206.6

1.6

36.

Decreased by

1.83%

Decreased by

14.22%

Increased by

4.18 %

30.68

-28.19

12.43

33.16

-7.43

5.53

5,764.24

3,655.13

Total

5,631,234.

3,601,073.

1. Explanation on the performance of the main business by segment and by product

In 2023, the main operating revenue of the Company was RMB 56,312.3484 million, an

increase of 12.43% over 2022. The gross margin increased by 4.18% year on year. Among them,

the annual electricity sales income was RMB 53,263.3121 million, with an increase of 11.34%

over that in 2022 and an increase of 4.24% in gross margin. The main reasons include the increase

in power generation this year compared with the same period of last year, the increase in the

income from electricity sales, as well as the year-on-year increase of profit due to drop of coal

prices and the strengthening of production cost control.

2. Explanation on the performance of the main business by region

In 2023, incomes from the main business of North China increased by 20.17% year on year,

and the gross margin increased by 17.06%, mainly due to the year-on-year increase of power

generation of SDIC Beijiang and the decrease of coal costs.

Incomes from the main business of East China increased by 6.18% year on year, and the

gross margin increased by 9.17%, mainly due to the year-on-year increase of power generation of

thermal power enterprises in Fujian Region and the decrease of coal costs.

Incomes from the main business of South China increased by 21.59% year on year, and the

gross margin increased by 15.88%, mainly due to: i) the year-on-year increase of power

generation of SDIC Qinzhou and the decrease of coal costs; ii) the year-on-year increase of power

generation due to the increase of new installed capacity from new energy projects put into

operation in Guangxi Region.

Incomes from the main business of Central China increased mainly due to the merger of

wind power projects of Ningxiang Gushan New Energy Development Co., Ltd. in Hunan Region

this year.

Incomes from the main business of Northeast China increased by 120.57% year on year,

mainly due to the year-on-year increase of power generation after the PV project in Liaoning

Region was put into operation throughout the year.

Incomes from the main business of Northwest China increased by 15.35% year on year,

mainly due to the year-on-year increase of power generation as a result of the increase of installed

capacity after the PV projects in Gansu Region and Xinjiang Region were put into operation.

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Annual Report 2023

Incomes from the main business of Southwest China increased by 9.34% year on year,

mainly due to that: i) the on-grid power tariff this year is higher than that in the same period last

year, and ii) Kela PV and Laba Mountain Wind Power projects were put into operation this year.

Incomes from the main business of the UK Region decreased by 44.80%, mainly due to that

the natural resources are less than those in the same period last year.

Incomes from the main business of Indonesia Region increased by 30.68% year on year,

mainly due to the year-on-year increase of the income with the increased progress of the

construction of Batang Hydropower Project.

Incomes from the main business of the Thailand Region decreased by 28.19%, mainly due

to the drop of tariff of the Thailand project this year.

(2). Analysis of production and sales

□ Applicable √ Not Applicable

(3). Performance of major purchase and sales contracts

□ Applicable √ Not Applicable

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Annual Report 2023

(4). Statement of cost analysis

Unit: 10,000 yuan

Cost by segment

Change in

the amount for

the current period

compared with

the same period

last year (%)

Proportion of

amount for the

same period last

year in total cost

(%)

Proportion of

amount for the

current period in

total cost (%)

Amount for

the same period

last year

Amount for

the current period

Notes

By segment

Cost components

Fuel cost,

depreciation expenses,

employee compensation,

repair cost, material cost,

etc.

Power

3,274,598.62

326,474.52

76.01

3,144,008.87

268,508.50

75.77

6.47

4.15

Fuel cost,

The demand of

the heat supply market

Seawater

depreciation expenses,

employee compensation,

repair cost, material cost,

etc.

desalination, building

materials, heat supply

and other industries

7.58

21.59 increases, and the heat

supply business

increases.

Analysis by product

Change in

Proportion of

amount for the

same period last

year in total cost

(%)

Proportion of

the amount for

the current period

compared with

the same period

last year (%)

Amount for

the same period

last year

Amount for

the current period

amount for the

current period in

total cost (%)

Notes

By product

Cost components

Fuel cost,

depreciation expenses,

employee compensation,

repair cost, material cost,

etc.

Power

3,274,598.62

326,474.52

76.01

3,144,008.87

268,508.50

75.77

6.47

4.15

Fuel cost,

The demand of

the heat supply market

Seawater

depreciation expenses,

employee compensation,

repair cost, material cost,

etc.

desalination, building

materials, heat supply

and other industries

7.58

21.59 increases, and the heat

supply business

increases.

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Annual Report 2023

(5). Changes in the scope of consolidation due to changes in the shareholdings of major

subsidiaries during the reporting period

□ Applicable √ Not Applicable

(6). Major changes or adjustments in the Company's business, products or services during

the reporting period

□ Applicable √ Not Applicable

(7). Key customers and key suppliers

A. Key customers of the company

√ Applicable □ Not Applicable

Sales to the Company's top five customers amounted to RMB 46,596,360,200, accounting for

82.16% of the total sales in the year. Among the sales to the top five customers, the sales to related

parties amounted to RMB 0, accounting for 0% of the total sales in the year

During the Reporting Period, there were cases in which sales to a single customer exceed 50%

of the total, there are new customers among the top five customers, or the Company is heavily

dependent on a few customers

□ Applicable √ Not Applicable

B. Key suppliers of the company

√ Applicable □ Not Applicable

The purchase amount of the top five suppliers was RMB 14,811,296,400, accounting for 35.97%

of the total annual purchase amount, among which the purchase amount of related parties was RMB

0, accounting for 0% of the total annual purchase amount.

During the reporting period, the proportion of purchases from a single supplier exceeded 50%

of the total, and there were new suppliers among the top five suppliers or serious dependence on a

few suppliers.

□ Applicable √ Not Applicable

3. Expenses

√ Applicable □ Not Applicable

Unit: 10,000 yuan

Increase or

Decrease Rate (%)

23.29

Item

2023

4,605.04

2022

3,735.06

Selling expenses

Administration

expenses

Financial

expenses

176,927.36

397,528.86

147,985.30

465,451.38

19.56

-14.59

4. R&D investment

(1). Details of R&D investment

√ Applicable □ Not Applicable

Unit: 10,000 yuan

Expensed R&D investment for the

10,060.55

current period

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Annual Report 2023

Capitalized R&D investment for the

current period

15,462.34

Total R&D investment

Proportion of total R&D investment in

operating revenue (%)

25,522.89

0.45

Proportion of capitalized R&D

investment in total R&D investment (%)

60.58

(2). R&D personnel

□ Applicable √ Not Applicable

(3). Explanatory information

□ Applicable √ Not Applicable

(4). Reasons for major changes in the composition of R&D personnel and their impact on

the future development of the Company

□ Applicable √ Not Applicable

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Annual Report 2023

5. Cash flow

√ Applicable □ Not Applicable

Unit: 10,000 yuan

Increase/decr

Item

2023

2022

ease year-on-year

(%)

Reason

I. Cash flows from operating activities

In this year, both the generated energy and

the average electricity price increased compared

1. Cash inflows from operating

activities

5,832,412.17

5,673,017.75

2.81 with the previous year, and the cash flow of power

sales income increased over the same period last

year.

Firstly, generated energy of thermal power

enterprises in this year increased, resulting the

2. Cash outflows from operating

activities

increase in coal purchase;

3,705,599.91

2,126,812.26

3,476,667.59

2,196,350.17

6.58

Secondly, the costs paid for reservoir

management of Yalong River Hydropower Station

increased.

3. Net cash flows from operating

activities

-3.17

II. Cash flow from investment activities

The dividends received from the participating

1. Cash inflows from investing

enterprises in this year were lower than that of the

previous year, and the cash received from the

recovery of investment decreased.

51,033.40

74,476.67

-31.48

activities

2. Cash outflows from investing

The cash paid for construction of new

28.80 projects, procurement of fixed assets, intangible

assets and other long-term assets increased.

2,116,659.02

-2,065,625.62

1,643,358.72

-1,568,882.06

activities

3.Net cash flows from investing

activities

-31.66

III. Cash flow from financing activities

The electricity income received this year

-11.39 increased, while the corporate borrowings

decreased over the previous year.

1. Cash inflows from financing

activities

4,552,476.69

5,137,520.50

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Annual Report 2023

(III) Analysis of assets and liabilities

√ Applicable □ Not Applicable

1. Assets and liabilities

Unit: 10,000 yuan

Proportion

of amount at

the end of the

previous period

in total assets

(%)

of amount at

the end of the

current period

in total assets

(%)

Amount at the

end of the current

period

Amount at the

end of the previous

period

Year-

on- year

change (%)

Item

Description

Monetary

Notes

receivable

Accounts

receivable

Other

receivables

1,135,800.51

720.50

4.09

1,163,878.10

4,406.25

4.51

0.02

3.47

0.27

0.47

-2.41

-83.65

56.42

28.59

6.49

fund

Note 1

Note 2

1,403,313.63

89,949.10

129,649.64

5.06

0.32

0.47

897,151.78

69,951.00

121,747.26

Inventories

Long-

term equity

investment

1,014,157.53

3.66

976,047.09

3.78

3.90

Goodwill

Fixed

assets

Projects

under

construction

Intangible

assets

Long-term

receivables

Investments

14,629.21

0.05

10,825.36

0.04

35.14

1.86

19,811,121.96

71.43

19,448,522.21

75.29

1,729,821.13

6.24

1,233,341.13

4.77

40.25

Note 3

Note 4

611,619.54

715,517.25

2.21

2.58

566,524.98

495,575.31

2.19

1.92

7.96

44.38

in other equity

instruments

Short-term

borrowing

Accounts

payable

Notes

payable

Other

payables

25,352.82

0.09

27,767.73

0.11

-8.70

941,212.77

529,495.10

3.39

1.91

0.4

1,129,882.44

408,705.52

46,053.28

4.37

1.58

0.18

6.57

4.25

41.18

0.13

0.52

-16.70

29.55

143.92

-5.40

8.82

112,331.77

Note 5

1,604,948.25

1,195,821.47

11,367,214.78

104,618.41

5.79

4.31

40.98

0.38

0.47

1,696,495.24

1,098,923.85

10,636,404.55

33,822.39

Bonds

payable

Long-term

borrowing

Long-term

payables

Taxes

6.87

209.32

-2.20

Note 6

131,622.14

134,583.89

payable

Long-term

employee

compensation

payable

48,909.12

0.18

48,618.79

0.19

0.60

29 / 128

Annual Report 2023

Paid-up

capital

Capital

reserves

Other

equity

745,417.98

2.69

745,417.98

2.89

4.24

1,096,928.62

3.95

2.05

1,094,839.21

0.19

569,891.51

569,911.56

2.21

-0.00

instruments

Other

comprehensive

income

Surplus

reserve

43,946.96

344,737.34

0.16

1.24

48,551.16

308,523.87

0.19

1.19

-9.48

11.74

15.41

Undistributed

profits

3,095,101.78

11.16

2,681,801.87

10.38

Total

owners’ equity

attributable to

the parent

company

5,906,652.90

21.3

5,451,440.77

21.11

8.35

Other notes:

Note 1: Notes receivable decreased by 83.65% at the end of this period compared with that at

the end of the previous period, mainly due to the maturity of notes receivable in the current period.

Note 2: Other receivables increased by 56.42% at the end of this period compared with that at

the end of the previous period, mainly due to: i) the income from electricity charges of Yangfanggou

Hydropower Station under Yalong River Company has not been settled yet, and it increased by RMB

2.6 billion this year; ii) electricity charges were settled across different periods, and in December this

year electricity charges receivables increased by RMB 1.582 billion over the same period last year.

Note 3: The cost of construction in progress increased by 40.25% at the end of this period

compared with that at the end of the previous period, mainly due to that the construction of Company's

new energy projects, Qinzhou Phase II and other projects under construction was started this year,

resulting in the continuous increase of costs.

Note 4: Long-term receivables increased 44.38% at the end of this period compared with that at

the end of the previous period, mainly due to the recognition of the income from construction during

the year in consideration of the progress of the Company's Batang Project in Indonesia.

Note 5: Notes payable increased by RMB 663 million at the end of this period compared with

that at the end of the previous period, mainly due to the increase in notes payable owing to the receipt

of project payment invoices by the Company's subordinate investment enterprises.

Note 6: Long-term payables increased by RMB 708 million at the end of this period compared

with that at the end of the previous period, mainly due to the newly-added financial leasing of the

Company's subordinate investment enterprises.

2. Overseas assets

√ Applicable □ Not Applicable

(1) Asset scale

Including: overseas assets of RMB 14,190,745,000, accounting for 5.12% of the total assets.

(2) Notes to the high proportion of oversea assets

□ Applicable √ Not Applicable

30 / 128

Annual Report 2023

3. Restriction on major assets as at the end of the reporting period

√ Applicable □ Not Applicable

Unit: Yuan

Item

Book value at the end of

the year

Reason for restriction

Performance bond, housing maintenance fund,

261,526,044.80 bank guarantee and acceptance bill bond, land

reclamation deposit, ETC frozen funds, etc.

Monetary fund

3,644,415,608.54

Pledge of tariff collection right

Mortgage loan of the project and assets

without certificate of title

Accounts receivable

Fixed assets

3,194,569,356.87

Mortgage loan of the project and assets

without certificate of title

556,454,587.84

Intangible assets

4. Other notes

□ Applicable √ Not Applicable

(IV) Analysis of the Industry Operation Information

√ Applicable □ Not Applicable

In 2023, the Company's holding companies completed a total of 161,973 GWh of generated

energy and 157,639 GWh of on-grid energy, with a year-on-year increase of 3.35% and 3.22%

respectively; the average feed-in tariff was RMB 0.374 /kWh, with a year-on-year increase of 6.55%.

31 / 128

Annual Report 2023

Power industry operational information analysis

1. Information on electricity quantity and price in the reporting period

√ Applicable □ Not Applicable

On-

grid tariff

(RM

Selli

ng price

(RM

Purchased energy (if any)

(10MWh)

Power generation (10MWh)

On-grid energy (10MWh)

Sales volume (10MWh)

B/M Wh)

Busin

ess area/

type of

generation

Sam

Same

period of last

Same

period of last

Same

period of last

This

year

Year-

on-year

This

year

Year-

on-year

This

year

Year-

on-year

This

year

e period

of last

year

Year-

on-year

This

year

This

year

Tianj

1,880,63

4.89

1,856,94

9.95

1,562,32

0.23

1,548,80

4.21

20.37

19.90

1,767,57

9.27

1,744,31

9.55

1,463,37

7.18

1,450,09

6.50

20.79

20.29

1,767,57

9.27

1,744,31

9.55

1,463,37

7.18

1,450,09

6.50

20.79

20.29

132.

50.1

344.

291.

-61.48

444.

-82.84

Therma

l power

443.

Wind

power

Guan

gxi

23,684.9

1,682,57

9.96

1,615,67

8.79

13,516.0

1,462,60

5.63

1,411,75

4.38

75.24

15.04

14.44

23,259.7

1,583,49

9.57

1,518,25

6.00

13,280.6

1,368,91

1.82

1,319,47

8.15

75.14

15.68

15.06

23,259.7

1,583,49

9.57

1,518,25

6.00

13,280.6

1,368,91

1.82

1,319,47

8.15

75.14

15.68

15.06

82.7

123.

52.8

56.67

43.50

485.

498.

485.

498.

86.2

Therma

l power

496.

Wind

power

66,860.6

40.51

50,851.2

31.48

65,203.4

40.15

49,433.6

31.90

65,203.4

40.15

49,433.6

31.90

123.

0.01

86.2

43.49

535.

Solar

power

448.

Gans

Hydrop

ower

Wind

power

533,530.

377,823.

141,321.

14,386.3

483,515.

382,839.

95,314.6

5,361.62

10.34

-1.31

524,965.

372,901.

137,868.

14,195.1

476,171.

377,822.

93,099.9

5,248.93

10.25

-1.30

524,965.

372,901.

137,868.

14,195.1

476,171.

377,822.

93,099.9

5,248.93

10.25

-1.30

655.

36.5

504.

114.

567.

15.4

481.

70.4

15.46

136.89

4.68

288.

250.

368.

288.

250.

368.

48.27

168.32

48.09

170.44

48.09

170.44

62.59

Solar

power

482.

Fujia

2,028,06

3.50

2,028,06

3.50

1,796,87

8.49

1,796,87

8.49

12.87

1,911,31

9.26

1,911,31

9.26

1,689,80

3.79

1,689,80

3.79

13.11

1,911,31

9.26

1,911,31

9.26

1,689,80

3.79

1,689,80

3.79

13.11

353.

559.

-36.82

483.

Therma

l power

483.

Xinji

ang

Wind

204,429.

172,875.

31,553.9

197,308.

169,073.

28,235.6

3.61

2.25

199,382.

168,183.

31,199.8

192,625.

164,927.

27,697.8

3.51

1.97

199,382.

168,183.

31,199.8

192,625.

164,927.

27,697.8

3.51

1.97

852.

657.

195.

881.

722.

159.

-3.23

-8.91

22.49

579.

565.

579.

565.

power

11.75

12.64

Solar

power

654.

Guiz

hou

317,696.

301,732.

5.29

288,137.

272,930.

5.57

288,137.

272,930.

5.57

152.

38.4

296.78

436.

32 / 128

Annual Report 2023

299,904.

289,829.

3.48

272,446.

263,068.

3.56

272,446.

263,068.

3.56

67.84

Therma

l power

431.

11,631.3

11,879.4

-2.09

9,608.86

9,844.30

-2.39

9,608.86

9,844.30

-2.39

45.4

27.0

Waste-

to-energy

630.

6,160.98

23.73

25,862.

6,082.37

18.04

33,616.

6,082.37

18.04

33,616.

106.

11.3

842.32

Solar

power

389.

Sichu

Hydrop

ower

8,580,14

2.93

8,424,02

3.95

8,927,00

3.34

8,852,25

4.89

-3.89

-4.84

8,529,42

7.21

8,376,59

1.10

8,877,60

9.03

8,804,70

5.24

-3.92

-4.86

8,529,42

7.21

8,376,59

1.10

8,877,60

9.03

8,804,70

5.24

-3.92

-4.86

1,18

7.23

22.2

505.

69.8

134.65

-68.15

313.

310.

313.

310.

69,334.4

4,357.39

1,491.1

68,310.8

4,315.78

1,482.8

68,310.8

4,315.78

1,482.8

766.

57.5

1,232.1

Solar

power

432.

Wind

power

Yunn

Wind

power

Hydrop

ower

86,784.5

70,391.0

23.29

-4.50

14.41

-9.57

50.84

84,525.2

68,588.0

23.24

-4.49

14.36

-9.53

50.98

84,525.2

68,588.0

23.24

-4.49

14.36

-9.53

50.98

398.

639.

60.3

378.

484.

66.2

5.26

32.01

-8.91

578.

249.

506.

186.

578.

249.

506.

186.

740,440.

49,320.5

618,735.

72,384.3

775,302.

43,107.0

684,207.

47,987.7

734,748.

48,265.7

614,765.

71,716.9

769,249.

42,205.8

679,542.

47,502.0

734,748.

48,265.7

614,765.

71,716.9

769,249.

42,205.8

679,542.

47,502.0

579.

418.

38.50

Solar

power

623.

Qing

hai

Wind

31,056.2

24,682.0

32,239.0

25,320.2

-3.67

-2.52

-7.87

30,371.5

24,094.5

31,545.8

24,750.7

-3.72

-2.65

-7.62

30,371.5

24,094.5

31,545.8

24,750.7

-3.72

-2.65

-7.62

231.

180.

51.0

242.

185.

56.4

-4.26

-2.66

-9.54

723.

606.

723.

606.

power

6,374.21

6,918.79

6,276.98

6,795.10

6,276.98

6,795.10

Solar

power

1,17

3.50

1,17

3.50

Ning

xia

15,895.2

4,205.92

16,201.2

4,426.87

-1.89

-4.99

15,571.5

4,130.25

15,870.8

4,353.23

-1.89

-5.12

15,571.5

4,130.25

15,870.8

4,353.23

-1.89

-5.12

107.

56.8

103.

47.2

3.52

446.

20.39

Solar

power

915.

Wind

power

Zheji

11,689.3

11,774.3

-0.72

-3.49

11,441.3

11,517.5

-0.66

-3.50

11,441.3

11,517.5

-0.66

-3.50

50.4

108.

56.4

124.

-10.61

-12.89

277.

1,10

0.00

277.

1,10

0.00

10,997.3

11,395.6

10,908.3

11,303.6

10,908.3

11,303.6

ang

Solar

power

1,10

0.00

1,10

0.00

The

Wind

power

Thail

and

11,887.4

14,558.1

-18.35

4.31

11,850.9

14,373.2

-17.55

4.60

11,850.9

14,373.2

-17.55

4.60

30.6

11.0

29.3

21.7

4.54

738.

1,03

1.89

738.

1,03

1.89

7,834.30

7,510.37

6,473.20

6,188.50

6,473.20

6,188.50

-49.31

7,834.30

7,510.37

4.31

6,473.20

6,188.50

4.60

6,473.20

6,188.50

4.60

Waste-

to-energy

1,03

1.89

1,03

1.89

Jiang

15,593.8

15,837.6

-1.54

15,537.4

15,783.0

-1.56

15,537.4

15,783.0

-1.56

156.

131.

19.10

1,03

3.74

1,03

3.74

33 / 128

Annual Report 2023

15,593.8

15,837.6

-1.54

15,537.4

15,783.0

-1.56

15,537.4

15,783.0

-1.56

156.

131.

19.10

Solar

power

1,03

3.74

1,03

3.74

Shaa

20,355.6

21,297.5

-4.42

19,937.3

20,913.7

-4.67

19,937.3

20,913.7

-4.67

219.

243.

-10.11

922.

nxi

Solar

power

Hebe

20,355.6

21,297.5

19,937.3

20,913.7

19,937.3

20,913.7

922.

4,532.37

4,790.56

-5.39

4,421.38

4,706.96

-6.07

4,421.38

4,706.96

-6.07

59.4

83.9

-29.21

896.

Solar

power

896.

Hain

8,604.21

7,862.02

9.44

8,448.30

7,699.38

9.73

8,448.30

7,699.38

9.73

54.9

214.

52.8

221.

3.82

610.

780.

610.

780.

Wind

power

Anhu

21,202.9

22,153.5

-4.29

21,061.2

21,991.1

-4.23

21,061.2

21,991.1

-4.23

-3.35

21,202.9

22,153.5

21,061.2

21,991.1

21,061.2

21,991.1

Solar

power

780.

Jiang

6,116.89

6,122.40

-0.09

6,045.34

6,073.76

-0.47

6,045.34

6,073.76

-0.47

69.5

79.5

-12.62

1,20

0.00

1,20

0.00

Solar

power

1,20

0.00

1,20

0.00

Liaon

11,986.3

5,227.29

129.30

11,649.4

5,049.81

130.69

11,649.4

5,049.81

130.69

103.

70.5

46.62

356.

ing

Solar

power

Inner

11,986.3

11,649.4

356.

50,854.0

156.02

32,494.

49,997.9

154.60

32,240.

49,997.9

154.60

32,240.

39.9

2.21

1,707.5

248.

Mongolia

Wind

power

Huna

Wind

power

50,854.0

156.02

32,494.

39,410.

49,997.9

154.60

32,240.

40,253.

49,997.9

154.60

32,240.

40,253.

39.9

28.4

1.32

2.21

0.50

1,707.5

248.

562.

341.

248.

562.

341.

12,769.7

12,497.4

32.32

30.97

5,588.8

32.32

30.97

5,588.8

54.78

53.46

Tibet

54.78

53.46

1.32

Solar

power

341.

16,197,2

60.30

15,672,0

51.69

3.35

15,763,8

84.46

15,272,3

64.50

3.22

15,763,8

84.46

15,272,3

64.50

3.22

5,53

4.08

4,87

6.69

13.48

374.

Total

2. Information on electricity quantity, revenue and cost in the reporting period

√ Applicable □ Not Applicable

Unit: 100 million yuan Currency: RMB

34 / 128

Annual Report 2023

Change in

the amount

Amount

Proportion

to total cost current

in the same period

period of compared

for

the

Proportion

of current for

period to same

total cost period last

(%) year

Amount

for

the

Amount

the

Power generation Year-on-

(10MWh) year

Sales

(10MWh)

volume Year-on-

year

same

period of (%)

Change

for

the

Type

Income

Cost components

current

period

with

same period

the

year

period (%)

last

(%)

year

Fuel costs,

depreciation costs,

employee

compensation and

repair costs etc.

Depreciation

costs, employee

compensation and

repair costs etc.

Depreciation

Thermal

power

5,800,596.2

14.9

5,446,340.9

15.33

228.7

202.2

13.0

204.0

206.2

47.37

49.71

-1.07

-5.05

31.75

60.42

Hydropow

9,420,582.8

9,364,258.6

255.7

237.6

101.9

7.60

23.65

2.85

1.76

91.34

9.95

5.71

22.01

2.40

1.38

11.57

23.48

32.69

5.03

Wind

power

31.7

22.2 costs, employee

661,334.58

295,280.99

645,636.23

291,566.62

28.79

16.76

23.54

12.65

12.28

7.58

compensation and

repair costs etc.

Depreciation

Solar

power

60.3

32.5 costs, employee

compensation and

repair costs etc.

Fuel costs,

depreciation costs,

employee

compensation and

repair costs etc.

15.2

Others

19,465.60

0.39

3.35

16,082.06

0.31

3.22

2.61

2.26

1.63

0.38

1.13

0.27

44.59

4.15

16,197,260.

15,763,884.

532.6

478.4

11.3

327.4

314.4

Total

76.01

75.77

35 / 128

Annual Report 2023

3. Analysis of installed capacity

√ Applicable □ Not Applicable

By the end of 2023, the Company's holding installed capacity in operation was 40.8566 GW,

including 21.28 GW of hydropower, accounting for 52.08%; 12.5408 GW of thermal power

(including waste-to-energy generation), accounting for 30.69%; and 3.1825 GW of wind power,

accounting for 7.79%; and 3.8533 GW of solar power, accounting for 9.43%.

In 2023, the Company's new units put into production/merged and acquired installed capacity

were 3.0924 GW, including 0.66 GW of hydropower, 0.2331 GW of wind power, and 2.1993 GW of

solar power.

As of the end of 2023, the holding installed capacity in operation of each region is detailed in

the following table:

Unit: 10,000 kW

Total

installed

capacity

2081.65

Installed

Capacity of

Hydropower

1920

Installed

Capacity of

Thermal Power

Installed

Capacity of

Wind Power

59.45

Installed

Capacity of

Solar Power

102.2

Region

Sichuan

Tianjin

Fujian

410

398.6

422.73

235

400

398.6

392

30.4

14.4

0.33

85.6

41.8

Guangxi

Yunnan

Gansu

135

194.25

113.85

82.5

79.45

74.85

Xinjiang

Guizhou

Qinghai

Anhui

62.5

19.9

14.9

Inner

Mongolia

Shaanxi

Jiangsu

Zhejiang

Liaoning

Ningxia

Hunan

Jiangxi

Hainan

Hebei

4.8

4.4

4.8

4.4

Tibet

The UK

Thailand

0.98

4085.66

0.98

Total

2128

1254.08

318.25

385.33

installed capacity

Note: Additional installed capacity of energy storage project is 91 MW, which is not included in

the above statistical data.

36 / 128

Annual Report 2023

As of the end of 2023, the details of the Company's projects under construction were shown in

the following table:

Unit: 10,000 kW

S/N

Project name

Design capacity

Capacity of

projects under

construction

Guangxi

Wind Power

Guangxi

Wind Power

Guangxi Nasi

Power

Liulushan

Dongyong

Wind

Hainan Wenchang PV

Guizhou

Leyang PV

Guizhou

Xintang PV

Yunxian

Pingtang

County

Maolan PV

Manas Energy Storage +

Aksai Photothermal +

Pubei Distributed PV

Shiyan Yunxi PV

Pingyang Aojiang PV

Guizhou Guiding PV

Tianjin Baodi Wind

Power

1.744

Pingtang Datang Wind

Power

Ceheng Yata Wind

Power

Ceheng Yangba Wind

Power

7.5

Yuanjiang Tuantian PV

Dongchuan

Village PV

Ruoqiang

Photothermal

Project

Jiaojiao

100

Pubei Shared Energy

Storage

Benbrack Wind Power

in the UK

6.71

102

6.71

102

Kala

Hydropower

Station

Batang

Toru

Hydropower Station

Qinzhou Phase III

Huaxia Phase III

Total

132

793.954

132

793.954

4. Analysis of power generation efficiency

√ Applicable □ Not Applicable

37 / 128

Annual Report 2023

In 2023, the average utilization hours of the Company's power generation equipment were 4,207

hours, a year-on-year decrease of 50 hours, including 4,427 hours of hydropower, a year-on-year

decrease of 257 hours; 4,896 hours of thermal power, a year-on-year decrease of 634 hours; 2,177

hours of wind power, a year-on-year decrease of 107 hours; 1,274 hours of solar power, a year-on-

year decrease of 79 hours.

The comprehensive power consumption rate of the Company is 2.7%, including 6.13% for

thermal power, 0.60% for hydropower, 2.75% for wind power, and 2.21% for solar power.

The coal consumption for power supply of coal-fired power units was 296.9 g/kWh throughout

the year, down 1.89 g/kWh year on year.

38 / 128

Annual Report 2023

5. Information on the Capital Expenditures

√ Applicable □ Not Applicable

Unit: 10,000 yuan

Input amount this

year

Cumulative investment

amount

Item

Project value

Project schedule

Under construction

Platform

Yalong River Hydropower

Development Co., Ltd.

SDIC New Energy Investment Co.,

Ltd.

SDIC Huanneng Electric Power

Co., Ltd.

840,112.30

217,125.58

53,300.00

17,522.38

9,184.32

104,000.00

952,120.00

217,125.58

53,300.00

20,000.00

12,550.00

35,399.69

12,000.00

2,500.00

3,050.00

Platform

Putting into

operation

Putting into

operation

SDIC (Erdos) New Energy Co., Ltd.

Shenyang Jingbu Photovoltaic

Power Co., Ltd.

SDIC Qinzhou Di Er Electric Power

Co., Ltd.

SDIC (Hainan) New Energy Co., Ltd.

Pingtang County Leyang New Energy

Co., Ltd.

112,008.96

12,400.00

49,987.70

Under construction

Platform

27,000.00

3,400.00

6,060.00

90,000.00

12,400.00

22,810.00

Under construction

Guiding Guoneng New Energy Co.,

Ltd.

Yunxian County Qianrun New

Energy Co., Ltd.

Tianjin Baodi Huifeng New Energy

Co., Ltd.

Yuanjiang County Qianrun New

Energy Co., Ltd.

5,167.58

106,478.74

1,993.72

Under construction

1,100.00

18,146.00

1,479.00

12,600.00

4,000.00

2,150.00

44,556.00

1,989.00

18,600.00

4,000.00

35,372.79

20,520.09

Huaning County Qianrun New

Energy Co., Ltd.

Pingyang Aoqi New Energy Co., Ltd.

SDIC Xinjiang New Energy Co., Ltd.

SDIC (Guangdong) Offshore Wind

Power Development Co., Ltd.

SDIC Jilin Dunhua Pumped Storage

Co., Ltd.

3,081.84

78,291.00

Under construction

1,200.00

70,200.00

1,200.00

72,200.00

2,550.00

Under construction

1,530.00

2,550.00

2,666.56

2,023.31

Under construction

4,000.00

2,045.00

8,980.00

2,045.00

SDIC Shiyan New Energy Co., Ltd.

39 / 128

Annual Report 2023

SDIC Inner Mongolia New Energy

Development Co., Ltd.

1,000.00

Platform

1,000.00

Kunming Dongchuan District

Qianrun New Energy Co., Ltd.

SDIC Shaanxi New Energy Co., Ltd.

Shangyi County Ruida New Energy

Co., Ltd.

7,951.01

700.00

Under construction

Platform

4,845.00

700.00

4,845.00

700.00

23,897.80

Under construction

4,550.00

Tianjin Binhai Guoli New Energy

Co., Ltd.

Pubei Yuansheng New Energy Co.,

Ltd.

Yuxi Qianrun New Energy Co., Ltd.

Ningxiang Gushan New Energy

Development Co., Ltd.

15,383.52

Under construction

1,000.00

788.97

1,849.75

17,970.00

637.50

1,000.00

17,970.00

637.50

1,000.00

17,970.00

Under construction

Putting into

operation

Yangquan Guoli New Energy Co.,

Ltd.

9,902.36

Under construction

3,595.00

Pubei Yuanli New Energy Co., Ltd.

SDIC Zhejiang New Energy Co., Ltd.

SDIC Tibet Renbu County New

Energy Co., Ltd.

12,715.04

2,000.00

Under construction

Platform

9,070.00

2,000.00

9,070.00

2,000.00

9,800.10

Under construction

9,400.00

SDIC Tibet Nima County New

Energy Co., Ltd.

Liaoning Dalian Pumped Storage

Co., Ltd.

4,833.63

2,030.00

Under construction

4,580.00

2,030.00

4,580.00

2,030.00

Under construction

Jiangxi Enpu Energy Technology

Co., Ltd.

Capstone Energy (Yunnan) Co.,

Ltd.

57.00

500.00

Total

1,601,510.08

372,644.19

40 / 128

Annual Report 2023

6. Electricity market trading

√ Applicable □ Not Applicable

Unit: 100 million Kwh

Current year

Previous year

Year-on-year

changes

Total energy through

market trading

Total on-grid energy

Proportion

711.11

1,576.39

45.11%

645.16

1,527.24

42.24%

10.22%

3.22%

Increased by 2.87

percentage points

7. Operation of electricity selling business

√ Applicable □ Not Applicable

In 2023, the Company realized sold energy of 157.639 billion kWh. Among them, various power

sales businesses of the Company's eight electricity sales companies were promoted in an orderly

manner, with a total sold energy of 33.338 billion kWh, up 20% year-on-year. During the year,

transactions have been carried out in Beijing, Tianjin, Hebei, Gansu, Xinjiang, Shaanxi, Anhui,

Zhejiang, Hainan, Guizhou, Guangxi, Sichuan and other provinces.

8. Other notes

□ Applicable √ Not Applicable

41 / 128

Annual Report 2023

(V) Investment analysis

Overall analysis of external equity investment

√ Applicable □ Not Applicable

① Overall situation

Unit: 10,000 yuan

Amount of investment in the reporting period

Increase/decrease of investments

372,644.19

92,059.87

280,584.32

32.81

Investments in the same period of the previous year

Increase/decrease percentage of investments (%)

② Investees

Shareholding ratio of the

Company (%)

S/N

Name of investee

Main business activities

Yalong River Hydropower Development Co., Ltd.

SDIC New Energy Investment Co., Ltd.

SDIC Huanneng Electric Power Co., Ltd.

SDIC (Erdos) New Energy Investment Co., Ltd.

Shenyang Jingbu Photovoltaic Power Co., Ltd.

SDIC Qinzhou Second Power Co., Ltd.

SDIC (Hainan) New Energy Co., Ltd.

Hydropower generation

Power supply

64.89

100

Other power generation

Wind power generation

Solar power generation

Thermal power generation

Solar power generation

Wind power generation

Solar power generation

100

Pingtang Leyang New Energy Co., Ltd.

Guiding Guoneng New Energy Co., Ltd.

Yunxian Qianrun New Energy Co., Ltd.

Tianjin Baodi Huifeng New Energy Co., Ltd.

Yunjiang County Qianrun New Energy Co., Ltd.

Huaning County Qianrun New Energy Co., Ltd.

Pingyang Aoqi New Energy Co., Ltd.

100

42 / 128

Annual Report 2023

SDIC Xinjiang New Energy Co., Ltd.

Solar power generation

100

SDIC (Guangdong) Offshore Wind Power Development Co., Ltd.

SDIC Jilin Dunhua Pumped-Storage Co., Ltd.

SDIC Shiyan New Energy Co., Ltd.

Wind power generation

Hydropower generation

99.6

100

Solar power generation

SDIC Inner Mongolia New Energy Co., Ltd.

Kunming Dongchuan Qianrun New Energy Co., Ltd.

SDIC Shaanxi New Energy Co., Ltd.

Other business management services

Solar power generation

Other business management services

Solar power generation

100

Shangyi County Ruida New Energy Co., Ltd

Tianjin Binhai Guoli New Energy Co., Ltd.

Pubei Yuansheng New Energy Co., Ltd.

Yuxi Qianrun New Energy Co., Ltd.

Solar power generation

100

Ningxiang Gushanfeng New Energy Development Co., Ltd.

Yangquan Guoli New Energy Co., Ltd.

Wind power generation

Solar power generation

Pubei Yuanli New Energy Co., Ltd.

Other power generation

SDIC Zhejiang New Energy Co., Ltd.

Other business management services

Solar power generation

SDIC Tibet Renbu New Energy Co., Ltd.

SDIC Tibet Nyima New Energy Co., Ltd.

Liaoning Dalian Pumped-Storage Co., Ltd.

Solar power generation

Hydropower generation

Electrical machinery and equipment

Jiangxi Enpu Energy Technology Co., Ltd.

Compton Energy (Yunnan) Co., Ltd.

manufacturing

Electrical machinery and equipment

manufacturing

1. Major equity investment

√ Applicable □ Not Applicable

Unit: 10,000 yuan Currency: RMB

Whether

the

subject is

mainly

Whether

financial

statements

are

Progress

as at the

balance

sheet

Impact

profits

and

Whethe

involve

d in a

Mode of

investmen

Shareholdin

proportion

Term of

investme

nt (if any)

Date of

disclosur

e (if any)

Amount

investme

Cooperatio

n partner

(if

Estimate

income

Index

disclosur

Main

business

Source

of fund

Statement

account

(if

Investee

43 / 128

Annual Report 2023

engaged

in the

consolidate

applicabl

applicable)

date

(if any)

losses

lawsuit

e (if any)

investme

current

period

business

Ningxiang

Gushan

New

Energy

Developme

nt Co., Ltd.

Wind

power

generatio

Acquisitio

17,970.00 100%

Yes

Long-

term

equity

investme

Self-

financin

Normal

operatio

2,273.0 No

Total

17,970.00

2,273.0

On December 26, 2022, after deliberation and approval in the General Manager's office meeting, the Company was allowed to acquire 100% equity

of Ningxiang Gushan New Energy Development Co., Ltd. for the consideration of RMB 179.7 million. As at May January 2023, the Company completed

the acquisition of 100% equity of Ningxiang Gushan New Energy Development Co., Ltd., and this project was included into the scope of consolidation

of corporate statements.

2. Major non-equity investment

□ Applicable √ Not Applicable

3. Financial assets measured at fair value

√ Applicable □ Not Applicable

Unit: Yuan

Currency: RMB

Profits or losses from

changes in fair value in the

current period

Accumulated variance in fair

value included in equity

Asset category

ST Yunwei

Beginning balance

17,831,453.40

Ending balance

16,364,308.50

-1,467,144.90

Guian New Area

57,052,200.00

59,951,359.86

-863,310.05

-7,510,064.52

55,668,833.95

61,495,759.86

Yunnan Coal and Chemical

Industry Group Co., Ltd.

SDIC Hami Industry

National Coal Transaction

Center

9,559,760.00

12,000,000.00

-1,194,695.00

7,072,885.00

12,000,000.00

Beijing Electricity

Transaction Center

6,597,610.00

44 / 128

Annual Report 2023

Tianjin Electricity

9,541,095.99

3,177,388.07

2,607,256.83

9,541,095.99

3,177,388.07

2,607,256.83

Transaction Center

Sichuan Electricity

Transaction Center

Guangxi Electricity

Transaction Center

Zhongmin Energy Co., Ltd.

Contingent Consideration of

ICOL Equity Interest

Total

117,190,605.48

113,320,350.00

-96,022,097.60

42,807,620.03

95,367,401.48

122,054,850.00

8,734,500.00

7,267,355.10

408,829,079.63

391,947,389.68

Security investments

√ Applicable □ Not Applicable

Unit: Yuan

Currency: RMB

Profits or losses

from changes in

fair value in the value included in

Accumulated

variance in fair

Variety

security

Book value at the

beginning of the

period

Security

code

Stock

abbreviation

Initial investment

Source of

funds

Book value at the

end of the period

Accounting

subject

cost

current period

equity

Long-term

equity investment

Financial assets

Stock

000899

Ganneng

2,127,154,562.28

Investment

1,915,593,150.78

17,831,453.40

2,110,191,096.16

Compensation

600725 ST Yunwei

6,657,250.41 for creditor’s

-1,467,144.90

16,364,308.50 held for trading

rights

Grandblue

600323

Long-term

1,396,518,708.23

889,318,732.07

Investment

1,296,086,762.28

Environment

equity investment

Zhongmin

600163 Energy Co.,

Ltd.

Investments in

95,367,401.48 other equity

instruments

Stock

Total

198,154,692.32

117,190,605.48

-96,022,097.60

3,221,285,237.08

3,346,701,971.94

-1,467,144.90

3,618,441,514.37

Explanations about Security investments

□ Applicable √ Not Applicable

Investment in private funds

□ Applicable √ Not Applicable

Derivatives investments

45 / 128

Annual Report 2023

√ Applicable □ Not Applicable

In October 2018, Red Rock Power Limited, a wholly-owned subsidiary of the Company, completed the acquisition of 100% equity of Afton Wind

Farm Limited (hereinafter referred to as Afton) and started the subsequent project refinancing according to the acquisition plan. In accordance with

refinancing practice, the Bank requested Afton to swap at an interest rate of 90% of the total amount financed of £77.2572 million with a maturity of 15

years. Afton carried out the interest rate swap business after obtaining the approval of SASAC in May 2019. The business varieties, hedging scale, and

profit and loss are as follows:

Floating profit and loss at Actual profit and

2023 Accumulated trade Amount of position at

Classificat

ion of

trading

variety

the end of the period

(RMB)

loss of the current

year (RMB)

Pit

amount (RMB)

end of the period (RMB)

Trading

variety

Domestic/

Overseas

S/N

Company name

Service type

trading/Ex-

pit trading

Afton Wind Farm

Limited

Interest rate Currency

swap type

Ex-pit

trading

Pound

Overseas

24,476,517.70

509,726,716.67

60,739,049.26

17,296,314.86

46 / 128

Annual Report 2023

(1). Derivative investments for the purpose of hedging in the reporting period

□ Applicable √ Not Applicable

(2). Derivative investments for speculative purposes during the reporting period

□ Applicable √ Not Applicable

4. Specific progress of major asset restructuring and integration during the reporting

period

□ Applicable √ Not Applicable

(VI) Sales of major assets and equities

□ Applicable √ Not Applicable

47 / 128

Annual Report 2023

(VII) Analysis of Major Companies Controlled and Invested in by the Company

√ Applicable □ Not Applicable

1. Information of major subsidiaries

Unit: 10,000 yuan

Equity attributed

Nature of

business

Registered

capital

to the owners of

the parent

Operating

revenue

Operating

profits

S/N

Company name

Total assets

Net profit

company

Hydropower

generation

Thermal power

generation

Thermal power

generation

Yalong Hydro

SDIC Jinneng

4,460,000.00

358,169.42

320,667.10

17,919,457.41

1,052,805.99

581,472.44

6,787,533.07

98,898.68

2,448,541.12

716,309.74

573,277.85

1,010,477.72

-20,076.53

30,654.08

865,795.90

1,049.47

SDIC Genting

Meizhouwan

SDIC New

Energy

300,893.89

25,175.73

Electric power

investment

472,003.20

1,695,479.45

600,113.17

218,257.14

82,644.93

73,786.52

Investment

Thermal power

generation

Thermal power

generation

Hydropower

generation

SDIC Qinzhou

Huaxia Power

228,000.00

102,200.00

177,000.00

552,808.42

317,615.84

355,758.90

301,732.42

138,712.79

340,826.04

790,454.31

264,855.55

103,514.18

105,389.17

17,644.45

68,993.79

94,947.57

13,584.66

58,868.94

SDIC

Dachaoshan

2. Where the operating performance of a subsidiary or joint-stock company fluctuated significantly year on year and had a significant

impact on the consolidated operating performance of the Company, the analysis and explanation of the performance fluctuation and the reasons

were as follows

Unit: 10,000 yuan

Net profit

Increase or

decrease

Year-on-year

increase/decrease

S/N Company name

Reasons for major changes

2023

2022

Firstly, Kela PV Project and Laba Mountain Wind Power Project were

put into operation this year to give play to their capacity;

Secondly, the increase in settlement tariff led to an increase in profit.

Firstly, the coal price went down this year, resulting the reduction of

the Company's production cost;

Yalong Hydro

SDIC Jinneng

865,795.90

1,049.47

736,061.62

129,734.28

129,412.65

17.63%

-128,363.18

100.82%

48 / 128

Annual Report 2023

Secondly, the power generation increased over the previous year,

resulting in the increase of the Company’s operating revenue.

Firstly, the coal price went down this year, resulting the reduction of

the Company's production cost;

Secondly, the power generation increased over the previous year,

resulting in the increase of the Company’s operating revenue.

The projects which were put into operation last year came into full

play throughout the year, and new PV and wind power projects are put

into operation successively this year; the year-on-year increase in

power generation has resulted in an enhanced profitability of the

Company.

Firstly, the increased power generation and reduced coal price this year

resulted in the increase of profits in the power generation business;

Secondly, the year-on-year increase of heat supply business this year

resulted in an increase in business.

Due to the reduction of fuel coal price, the reduction of unit production

cost led to higher profits.

SDIC Genting

Meizhouwan

25,175.73

73,786.52

94,947.57

-21,834.22

60,662.83

-17,421.15

47,009.95

215.30%

21.63%

SDIC New

Energy

Investment

13,123.70

SDIC Qinzhou

Huaxia Power

112,368.72

645.01%

13,584.66

58,868.94

-7,196.86

66,025.52

20,781.51

-7,156.58

288.76%

-10.84%

The inflow of Lancang River this year is too low, resulting the

reduction of power generation compared with the same period last

year.

SDIC

Dachaoshan

(VIII) Structured entities controlled by the Company

□ Applicable √ Not Applicable

49 / 128

Annual Report 2023

VI. Discussion and analysis on the future development of the Company

(I) Industry structure and trends

√ Applicable □ Not Applicable

In 2024, China's macro-economy and electric power consumption will maintain steady growth.

China will continue to coordinate the safe supply of electricity, accelerate the establishment and

improvement of a market-oriented electricity pricing system, steadily promote the construction of

new power systems, make every effort to ensure the safety and stability of large power grids,

safeguard the bottom line for people's livelihood, and promote high-quality economic and social

development.

According to the forecast of the China Electricity Council, it is expected that the national

electricity supply and demand situation will be generally tight and balanced in 2024. During the peak-

load times in summer and in winter, the power supply of some provincial grids is relatively tight.

In terms of electric power consumption, it is estimated that the total electric power consumption

in 2024 will be 9.8 trillion kWh, an increase of about 6% over 2023. The highest national power load

is expected to be 1.45 billion kW in 2024, an increase of about 100 million kW over 2023.

In terms of power supply, driven by the continuous and rapid development of new energy power

generation, it is expected that the newly installed capacity will exceed 300 million kW in 2024, and

the cumulative installed capacity of new energy power generation will exceed that of coal power for

the first time. By the end of 2024, the installed capacity of power generation in China is expected to

reach 3.25 billion kW, with a year-on-year increase of about 12%. Thermal power will be 1.46 billion

kW, including coal-fired power of about 1.2 billion kW, accounting for 37% of the total installed

capacity. The total installed capacity of non-fossil energy power generation is 1.86 billion kW,

accounting for about 57% of the total installed capacity. Among them, the proportion of grid-

connected wind power generation is 530 million kW and that of grid-connected solar power

generation is 780 million kW, both of which account for about 40% of the total installed capacity,

exceeding coal power, and the pressure of new energy consumption in some regions is prominent.

On the whole, many factors such as power supply and demand and climate uncertainty are

intertwined and superimposed, which will bring uncertainty to China's power supply and demand

situation.

(II) Development strategy of the Company

√ Applicable □ Not Applicable

The Company fully implemented the mission of energy supply guarantee and promoted green

and low-carbon transformation and development. Focusing on the "Dual Carbon" goal, it promoted

green and high-quality development, adhered to the business development idea and strategy of giving

priority to efficiency, focused on the main responsibility and main business of clean energy,

continuously improved professional management capabilities, continued to promote reform and

innovation, put industry and capital first, put people first, and was pragmatic and efficient. The

Company actively built a world-class green and efficient power enterprise, and strived to realize the

beautiful vision of "becoming a globally trusted integrated energy investment operator".

In terms of specific paths, the scale growth was moderate, the quality and efficiency were more

guaranteed and improved steadily, and there was more room for new development. The first is to

optimize the structure, and develop advantageous industries with limited resources from a

comprehensive layout to focus on key points; the second is to optimize quality, control the asset-

liability ratio, improve return on investment, and hold the red line of development; the third is to

optimize resources, leaving exposure for capital investment and doing a good job in resource

allocation.

50 / 128

Annual Report 2023

(III) Operation plan

√ Applicable □ Not Applicable

1. Annual investment expenditure plan

In 2024, SDIC Power plans to realize an equity investment of RMB 6.41 billion and a capital

construction investment of RMB 34.65 billion.

2. Annual financing plan

In 2024, the head office of the Company plans to realize a domestic financing up to RMB 21

billion, and intend to meet its funding needs by issuing corporate bonds, medium-term notes,

renewable corporate bonds, etc. or by borrowing money from State Development & Investment Corp.

Ltd, SDIC Finance Co., Ltd and domestic commercial banks and other financial institutions.

In 2024, the Company and its overseas wholly-owned subsidiaries plans to realize the overseas

financing of foreign currencies equivalent to a total of RMB 3.850 billion through Rongshi

International Holding Company Limited and its subsidiary and overseas financial institutions.

(IV) Possible risks

√ Applicable □ Not Applicable

1. Electric power market risk

With the continuous deepening of the reform of the electric power system, the barriers between

provinces are gradually broken, inter-provincial transactions are active, the medium and long-term

markets are continuously operated, the spot market is fully expanded, the auxiliary service market is

continuously improved, the trading varieties are increased, the trading frequency is increased, and the

trading complexity is deepened, which puts forward higher requirements for the ability of market

entities to participate in market trading. Multiple factors such as policy adjustment and intensified

market competition may cause the transaction price to fall.

Countermeasures: The Company will closely track changes in relevant policies of the electric

power market, timely analyze and interpret important policies, seize the opportunity of electric power

system reform, strengthen marketing system construction and market research and judgment,

scientifically formulate and optimize marketing strategies, steadily improve the Company's marketing

ability, and strive for reasonable levels of electricity quantity and tariff.

2. New energy development risks

Under the background of "peak carbon dioxide emissions and carbon neutrality", the competition

in the new energy development business is extremely fierce. Power generation enterprises, local state-

owned enterprises, equipment manufacturers and other investment entities are actively striving for

project development resources, which brings more challenges to the development of the Company's

new energy business, and the fierce competition leads to the risk of decreasing the rate of return on

investment in new energy projects. At the same time, in the process of rapid expansion of new energy

project scale, it is difficult to match the production progress of power generation projects due to

limited power access system resources. In addition, there are also certain uncertainties in the project

land use in some areas, which may lead to problems such as prolonged development and construction

time of new energy projects, failure to put into operation on time for power generation, and lower

than expected project benefits.

Countermeasure: First, keep up with the market trend, adhere to strategy-driven development,

strengthen scientific layout, focus on key areas, continuously increase the number of reserve projects

and intensify resource acquisition. Second, continuously improve the Company's investment

decision-making ability to ensure the economy of project investment. The third is to improve the

management and control ability in the development, construction and later operation stages, ensure

51 / 128

Annual Report 2023

the production progress of the project, and improve the operating efficiency of the project. The fourth

is to promote innovative development, attach importance to the research and judgment of cutting-

edge technologies, explore new business areas and cultivate more profit growth points for the

Company.

3. Fuel price fluctuation risk

Coal demand is expected to grow steadily in 2024. To better balance supply guarantee and work

safety, periodic disturbances in coal supply may still exist. It is not ruled out that periodic tightening

of supply and demand will occur again, and the coal price may fluctuate at a relatively high level in

history.

Countermeasures: Pay close attention to domestic electricity growth, coal production capacity

release and supply guarantee and price control policies; strengthen market situation research and

judgment and make full use of both domestic and foreign markets; effectively control coal allocation

and transportation and improve the fulfillment of long-term coal agreements; optimize coal inventory

structure to ensure safe and stable coal supply; improve fuel regional benchmarking management,

strengthen key indicator control and enhance fuel management benefits.

4. Capital risks

First, the development and expansion of domestic and overseas projects of the Company require

a large amount of financial support. At the same time, affected by the untimely availability of national

renewable energy subsidies in the new energy industry, the Company is facing certain financial

pressure. Second, the amount of the Company's interest-bearing liabilities is large, and changes in

interest rates will affect the Company's cost of debt. Third, the international economic situation was

complicated. The exchange rates of RMB against USD and GBP fluctuated greatly, the interest rates

of USD and GBP continued to rise, and the interest expenses for overseas projects increased, which

had a certain impact on the Company's financial costs.

Countermeasure: The Company will reasonably control the project development progress

according to the demand of the electric power market, plan in advance and seize the opportunity,

select the financing scheme suitable for the development stage of the Company, reduce the cost of

funds, optimize the debt structure, and prevent risks such as funds and interest rates. The Company

will make rolling forecasts of cash flow, coordinate financing arrangements, and scientifically make

risk response plans. The Company will strengthen the Management of Capital Budget and Plan in

Holding Investment Enterprises. The Company will make every effort to coordinate the recovery of

electricity charges, and actively communicate with each other to strive for timely in-place subsidies.

5. Project construction risks

Some construction projects of the Company are characterized by remote geographical locations,

short construction periods, large construction scopes, strong personnel mobility and a shortage of

technicians. In case of unqualified quality control, lax engineering design control, inadequate

construction inspection and acceptance during project construction, problems may occur in project

quality.

Countermeasures: Guide the holding investment enterprises to do a good job in project planning

according to the characteristics of the Project, prepare technical quality management measures and

strictly implement them during implementation; urge the holding investment enterprises to strengthen

the management of supervision companies, strictly control design quality, strictly supervise

manufacturing and strictly control equipment quality; require the holding investment enterprises to

strengthen their quality awareness, do a good job in inspection and acceptance of engineering

construction process to ensure engineering quality.

6. Overseas business risks

With the global industrial restructuring under unprecedented changes, the investment direction

and pattern of the power industry are also facing challenges. Green development with the goal of

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Annual Report 2023

carbon neutrality attracts many investors to invest in new energy, resulting in increasingly fierce

competition and greater challenges to project benefits.

Countermeasures: The Company will strengthen the supervision of the operation and financial

situation of overseas projects, adjust and dynamically manage overseas asset portfolios in a timely

manner; strengthen the screening, training and reserve of management personnel with international

vision and international business thinking, strengthen the construction of compliance system, adhere

to corporate governance structure; optimize commercial arrangements, carefully select investment

layout, and strictly control project costs and risks.

7. Extreme climate risk

The Company has a high proportion of hydropower, and the hydropower units in operation are

distributed in different regions and basins such as Sichuan, Yunnan and Gansu. Extreme climate and

unstable inflow will have a great impact on the Company's hydro-power generation. The hydropower

units under construction are primarily in remote regions, which may be impacted by debris flow and

other natural disasters in the rainy season, which brings uncertainties to the commissioning of these

units.

Countermeasures: The Company will utilize modern prediction techniques, and reasonably

schedule each cascaded hydropower plant, so as to maximize the utilization of water power resources;

ensure internal equipment maintenance to improve equipment reliability; build up the awareness of

safety responsibility, and take effective measures to strengthen construction management in flood

seasons, to reduce the impact on projects under construction.

(V) Others

□ Applicable √ Not Applicable

VII. Explanation on matters undisclosed according to standards due to inapplicability of

provisions in the standards or special causes such as national secrets and business secrets, and

reasons.

□ Applicable √ Not Applicable

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Annual Report 2023

Section IV Corporate Governance

Overview

As a public company listed in both domestic and overseas, the Company has been operating business in a

standard manner and in strict compliance with the requirements set forth in the laws, regulations and regulatory

documents of the PRC and the overseas jurisdiction where the shares of the Company are listed, and has made

continuous efforts to maintain and enhance the good image of the Company in the market.

The Company is principally governed by the general meeting of its shareholders (the “general meeting”), the

Board of Directors, the Supervisory Committee and senior management. A brief description of the general meeting,

the Board of Directors, the Supervisory Committee and senior management of the Company is set out below.

General Meeting

The general meeting is the governing authority of the Company. General meetings include annual general

meetings and extraordinary general meetings. An annual general meeting is required to be called once a year, within

six months following the end of the previous fiscal year. An extraordinary general meeting is required to be called

within two months from the date of the occurrence of any of the following circumstances:

•

the number of Directors is fewer than six;

the losses of the Company that have not been made up reach one third of its total share capital;

shareholders that hold, individually or collectively, 10% or more of the shares of the Company request

to hold such a meeting;

•

the Board of Directors considers it necessary;

the Supervisory Committee proposes to hold such a meeting; or

other circumstances as provided by relevant laws, administrative regulations, departmental rules or the

Articles of Association.

Board of Directors

The Board of Directors is responsible for the general management of the Company and is accountable to the

general meeting. Board meetings include routine board meetings and extraordinary board meetings. A routine board

meeting is required to be called semi-annually. An extraordinary board meeting may be called upon demand.

Supervisory Committee

The Supervisory Committee is responsible for overseeing the Company’s general management and is

accountable to the general meeting.

The Company believes that the increasing diversity of the administrative, management and supervisory bodies

is one of the key factors that help support its strategic objectives and maintain sustainable development. At present,

the Company’s administrative, management and supervisory bodies are diversified in terms of gender, region, and

professional background: The Supervisory Committee includes 1 female supervisor and the Board of Directors

includes 1 female director. Among the 9 directors of the Board of Directors, the 3 independent directors are

respectively from the power industry, legal compliance, accounting and auditing fields, with various academic

backgrounds and professional advantages.

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Annual Report 2023

I. Relevant information on corporate governance

√ Applicable □ Not Applicable

In the reporting period, the Company has continuously improved the governance structure of the

legal person and standardized operations based on requirements of laws and regulations, such as

Company Law, Securities Law, Guidelines for the Articles of Association of Chinese Listed

Companies and Code of Corporate Governance for Chinese Listed Companies, etc. (the relevant code

is set out on http://www.csrc.gov.cn/csrc/c101864/c1024585/content.shtml) and combined with

actual situation of SDIC Power. Directors and supervisors of the Company have been diligent and

responsible. The Management and other senior executives have carried out their duties according to

laws. The legal rights and interests of the Company and shareholders have been effectively

maintained.

(I) Strengthening the construction of the institutional system

During the reporting period, the Company formulated or revised the Administrative Measures

for Remuneration of Persons-in-Charge, Compliance Management Measures, Administrative

Measures for Investor Relations, Administrative Measures for Labor Cost, Measures for the

Implementation of the Decision-Making System Relating to Major Issues, Major Personnel

Appointments and Dismissals, Investments in Major Projects and Use of Large Sums of Money and

Administrative Measures for Investment Dividends to further meet the relevant policy requirements

of CSRC and Shanghai Stock Exchange and safeguard the interests of shareholders.

(II) Legally and effectively implementing the function of “one meeting and two boards”

(General Meeting of Shareholders, Board of Directors and Supervisory Committee) and

management level.

The Company established a General Meeting of Shareholders, Board of Directors and

Supervisory Committee. Five special committees, namely the Strategy Committee, Audit Committee,

Nomination Committee, Remuneration and Assessment Committee Social and Governance

Committee (established on March 11, 2024) were established under the Board of Directors. The

system of “one meeting and two boards” and management level has been completed. In the reporting

period, the Company operated based on laws, carefully studied and interpreted the relevant rules and

regulations such as Securities Law, as well as various regulatory requirements, well implemented

decision-making and supervision function, persisted in the “openness, fairness and justice” principle,

make full use of the status of the general meeting of stockholders as the highest decision-making body

and paid attention to the protection of lawful right and interests of shareholders. In the reporting

period, the Company held 8 General Meetings of Shareholders, 16 meetings of the Board of Directors,

7 meetings of the Supervisory Committee and 21 specialized committee meetings of the Board of

Directors in total. Operation of “one meeting and two boards” and management level met relevant

regulations of Articles of Association and supervision regulations and management decision

conformed to interests of all shareholders.

(III) Legally disclosing information

The Company established systems such as the Management System of Information Disclosure

Affairs and the Administrative Measures for Internal Reporting of Major Information. The investment

enterprises appointed information disclosure liaison persons to ensure prompt transmission,

collection and effective management of major information in the Company. The Company prepared

the Accountability System for Major Errors in Annual Reports. The Secretary of the Board of

Directors took the lead in the Preparation of the annual report. In preparation for the annual report,

the Audit Committee, independent directors, directors, supervisors and senior executives fully

performed their duties. Authenticity, accuracy and integrity of disclosed information were ensured by

specifying responsibilities and strictly reviewing. During the reporting period, the Company made 4

regular reporting disclosures and 58 provisional announcement disclosures. The information

disclosure was based on compliance with regulatory requirements, met the needs of investors, fully

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Annual Report 2023

and objectively reflected the true value of the Company. The Company has obtained the Grade A

Ranking of Information Disclosure by the Shanghai Stock Exchange for seven consecutive years.

(IV) Ensuring investor relations management

The Company further enhanced the publicity of corporate value and established an efficient

interaction mechanism for multi-level investors. The Company formulated the annual investor

relations management plan, established an inter-departmental coordination mechanism, and improved

the Company's guarantee for investor relations management. After each regular report, a performance

briefing was held to strengthen communication with investors through various channels such as the

statutory information disclosure platform, investor relations hotline, SSE E-Interactive, General

Meeting of Shareholders, roadshows, reverse roadshows (company project research), reception visits

and analyst meetings, actively listen to investors' opinions and suggestions, and enhance the market

recognition and influence of listed companies. In 2023, the response rate of SSE E-interaction was

100%, and 1,000 investor surveys were received to achieve good interaction with the capital market

and two-way communication with investors.

Whether there is any significant difference between corporate governance and the provisions of

laws, administrative regulations and China Securities Regulatory Commission on the governance of

listed companies; if so, explain the reasons.

□ Applicable √ Not Applicable

II. Specific measures taken by the controlling shareholders and actual controllers of the

Company to ensure the independence of the Company's assets, personnel, finance, institutions

and business, as well as solutions, work progress and follow-up work plans affecting the

independence of the Company.

√ Applicable □ Not Applicable

During the reporting period, the Company and its controlling shareholders were able to maintain

independence in terms of business, personnel, assets, institutions and finance. The Company was

responsible for its own profits and losses and risks, and there was no situation affecting the

independent operation of the Company.

The Company strictly observed various laws, regulations and the regulatory rules of the place

where it is listed, continuously improved and enhanced the modern corporate governance system and

governance ability of the Company in accordance with the requirements of a modern enterprise

system, and established and improved the corporate governance structure consisting of General

Meeting of Shareholders, Board of Directors, Supervisory Committee and management.

The controlling shareholders, actual controllers, and other entities under their control were

engaged in the same or similar business as the Company, as well as the impact of peer competition or

major changes in peer competition on the Company, the solution measures taken, the addressing

progress, and the follow-up solution plan.

□ Applicable √ Not Applicable

III. Brief introduction to the General Meeting of Shareholders

Inquiry index

Date of

of the website

disclosure of

Session

Date

designated for

resolution

Resolutions

resolution

publishing

The first

extraordinary 2023

general

March 9,

Refer to the

announcement

released on the

website of the

March 10,

2023

Proposals deliberated and adopted

and made resolutions:

Proposal on 2023 Estimated

meeting

Daily Related-Party Transactions

shareholders

Shanghai

Stock

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Annual Report 2023

in 2023

Exchange

Proposal on Amending Articles

www.sse.com.cn

(the same below),

Announcement No.:

2023-007

of Association

The

second

extraordinary

general

meeting

May 16,

2023

Announcement

No.: 2023-022

May 17,

2023

Proposals deliberated and adopted

and made resolutions:

1. Proposal on Signing

Financial Service Agreement and Related-

party Transaction with SDIC Finance Co.,

Ltd.

shareholders

in 2023

Financial Service Agreement and related-

party Transactions with Rongshi

Proposal on Signing the

International Treasury Management Co.,

Ltd.

The

Third

extraordinary

general

May 23,

2023

Announcement

No.: 2023-024

May 24,

2023

Proposal deliberated and adopted and

made a resolution: Proposal on Election of

Directors of the Company

meeting

shareholders

in 2023

2022

General

June 27,

2023

Announcement

No.: 2023-027

June 28,

2023

Proposals deliberated and adopted

and made resolutions:

Meeting of

Shareholders

Board of Directors of the Company

2. 2022 Annual Report of the

Supervisory Committee of the Company

3. Independent Directors' Report

on Work in 2022

2022 Annual Report of the

Proposal on the Financial

Accounts for 2022

Proposal on 2023 Annual

Operating Plan

Proposal on 2022 Profit

Distribution Plan

Proposal on the Registration

and Issuance of Medium-term Notes and

Corporate Bonds by Subsidiaries

The

fourth

extraordinary

general

July 27,

2023

Announcement

No.: 2023-037

July 28,

2023

Proposal deliberated and adopted and

made a resolution: Proposal on Providing

Guarantee for ICOL Company

meeting

shareholders

in 2023

The fifth

extraordinary 14, 2023

general

November

Announcement

No.: 2023-049

November

15, 2023

Proposal deliberated and adopted and

made

resolution: Proposal on

Registering and Releasing Medium-Term

Notes

meeting

shareholders

in 2023

The

November

30, 2023

Announcement

No.: 2023-051

December

1, 2023

Proposal deliberated and adopted and

made a resolution: 2022 Annual Work

sixth

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Annual Report 2023

extraordinary

general

Report of the Remuneration and

Assessment Committee of the 12th Board

of Directors

meeting

shareholders

in 2023

The

seven

extraordinary

general

December

22, 2023

Announcement

No.: 2023-055

December

23, 2023

Proposal deliberated and adopted and

made a resolution: Proposal on Change of

Accounting Firm

meeting

shareholders

in 2023

The preferred shareholders with restored voting rights request the convening of an extraordinary

general meeting of shareholders

□ Applicable √ Not Applicable

Notes on the General Meeting of Shareholders

□ Applicable √ Not Applicable

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Annual Report 2023

IV. Directors, supervisors and senior executives

(I) Shareholding changes and remuneration of current and dismissed directors, supervisors, and senior executives during the reporting

period

√ Applicable □ Not Applicable

Unit: share

Total

remuneration

received from receive

the Company remuneration

Number Number

of shares of

increases

decreases

during the

year

Whether to

Reasons

for

increases

held

the

at shares

held at

Name

Guo

Xuyuan

Zhu

Jiwei

Position

Gender

Age Start date of term End date of term

during

the from

any

beginning the end

reporting period related

(RMB 10,000) parties

(before taxes)

year

the of the

year

decreases

April 25,

2024

Chairman

Former

Male

244.28

March 8,

2019

April 9, 2024

Chairman

Luo

Shaoxiang

Deputy

Chairman

February 26,

2016

Yes

Director

May 23, 2023

General

Manager

April 21,

2023

Haimiao

Male

182.26

Former

Deputy General

Manager

March 9,

2020

April 20,

2023

Former

Director

January 15,

2021

Zhang

Wenping

February 15,

2023

Male

11.84

Former

General

Manager

December 14,

2020

Junxi

March 11,

2022

Director

Yes

59 / 128

Annual Report 2023

Zhan

Pingyuan

September 6,

2019

Director

Male

Female

Male

Yes

Zhang

Lizi

Independent

director

July 27, 2021

May 6, 2021

Junli

Independent

director

Yingmin

Independent

director

September 6,

2019

Male

Employee

Director

February 28,

2024

Zhang

Zijian

Male

107.41

Former

Employee

Supervisor

September 6,

2022

February 2,

2024

Chairman

of the

Supervisory

Committee

Lixin

January 31,

2019

Yes

Han

Xiuli

September 6,

2022

Supervisor

Female

Male

Yes

Zhao

Lijun

Employee

Supervisor

February 28,

2024

Chief

Accountant

(Head of

October 24,

2023

Zhou

Changxin

Finance)

Male

170.51

Former

Deputy General

Manager

March 9,

2020

October 23,

2023

Deputy

General

Manager

Cai

Jidong

Male

July 21, 2023

31.53

23.68

Deputy

General

Manager

Jing

Zhentao

60 / 128

Annual Report 2023

Deputy

General

Manager

October 24,

2023

Secretary of

the Board of

Directors

Gao

Hai

November 22,

2023

Male

126.15

Former

Employee

Director

January 27,

2021

October 23,

2023

Former

Yang Secretary of the

April 10,

2013

October 22,

2023

Male

47.36

Lin

Board of

Directors

Total

981.02

Name

Major work experience

Senior Engineer. Former Director of the Planning and Development Department; Director of the Planning and Development Department & Director of

the Environmental Protection Management Center; Director of the Engineering Management Department & Director of the Strategic Development

Department and Environmental Protection Management Center; Chief Infrastructure Engineer & Director of Strategic Development Department,

Engineering Management Department and Environmental Protection Management Center; Chief Infrastructure Engineer & Director of Strategic

Development Department; Chief Infrastructure Engineer; Deputy General Manager & Chief Infrastructure Engineer; Deputy General Manager; and General

Manager of Yalong River Hydropower Development Co., Ltd. Incumbent Chairman and Party Secretary of SDIC Power Holdings Co., Ltd., and the

Chairman and Party Secretary of Yalong River Hydropower Development Co., Ltd.

Guo

Xuyuan

Engineer. Former General Manager and Party Secretary of Xiamen Huaxia International Power Development Co., Ltd., General Manager and Deputy

Party Secretary of SDIC Power Holdings Co., Ltd., Chairman and Party Secretary of SDIC Power Holdings Co., Ltd. Incumbent Deputy General Manager

and a member of the Party Leadership Group of State Development & Investment Corp., Ltd.

Zhu Jiwei

(dismissed)

Senior Engineer. Former Deputy Director and Director of the Strategic Development Department and Director of the Operation and Management

Department of SDIC. Incumbent Full-time Equity Director of State Development & Investment Corp., Ltd. and the Deputy Vice Chairman of SDIC Power

Holdings Co., Ltd.

Luo

Shaoxiang

Senior Engineer. Former Director, Deputy Chief Engineer, Chief Engineer and Deputy General Manager of the Engineering Technology Department

of Tianjin SDIC Jinneng Electric Power Co., Ltd., General Manager and concurrently Secretary of Party Committee of SDIC Genting Meizhouwan Electric

Power Co., Ltd., Deputy General Manager of SDIC Power Holdings Co., Ltd., Incumbent Director, General Manager and concurrently Deputy Secretary of

Party Committee of SDIC Power Holdings Co., Ltd.

Haimiao

Zhang

Senior Accountant and Senior Engineer. Former Chief Accountant, Party Committee Member, Trade Union Chairman of Xiamen Huaxia International

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Annual Report 2023

Wenping

Power Development Co., Ltd., Deputy General Manager of Fujian Pacific Power Co., Ltd., Deputy General Manager of SDIC (Fujian) Meizhouwan Electric

(dismissed) Power Co., Ltd., General Manager and Party Secretary of Xiamen Huaxia International Power Development Co., Ltd., Deputy Director of Finance

Department of State Development & Investment Corp., Ltd. Director, General Manager and Deputy Secretary of the Party Committee of SDIC Power

Holdings Co., Ltd., Incumbent Director of Finance Department of State Development & Investment Corp., Ltd..

Senior Accountant. Former General Manager Assistant of SDIC Property Co., Ltd., Deputy General Manager of SDIC High-tech Investment Co., Ltd.,

Li Junxi Deputy General Manager of SDIC High-tech Industry Investment Co., Ltd. and Audit Commissioner of State Development & Investment Corp., Ltd.

Incumbent Full-time Equity Director of State Development & Investment Corp., Ltd. and the vice chairman of SDIC Power Holdings Co., Ltd.

Doctoral Candidate and Senior Accountant. Former Director of the Asset Finance Department of China Water Electric International Investment

Zhan

Pingyuan

Corporation, Chief Accountant and Chairman of the Trade Union at China Three Gorges International Energy Investment Group Co., Ltd. Served as a

member of the Party Committee, Financial Director, and General Counsel at China Yangtze Power Co., Ltd. Currently serves as a member of the Party

Committee and Financial Director of China Yangtze Power Co., Ltd., and Director of SDIC Power Holdings Co., Ltd.

Doctoral Candidate. Former Executive Vice President of Modern Electric Power Research Institute of North China Electric Power University, Assistant

Zhang to the President, and Director of the Electric Power Engineering Department. Incumbent professor at North China Electric Power University, the director of

Lizi

the Academy of Modern Electric Power Research of North China Electric Power University, the Director of the Power Market Research Institute of the

School of Electrical and Electronic Engineering, and the Independent Director of SDIC Power Holdings Co., Ltd.

Master Degree Candidate. Former Partner of Beijing Zhongrui Law Firm, Partner of Beijing Zhongtian Law Firm and Lawyer of Guangxi Yuandong

Business Law Firm. Incumbent senior partner of Tahota (Beijing) Law Firm and an independent director of SDIC Power Holdings Co., Ltd.

Xu Junli

Doctoral Candidate, a postdoctoral fellow in economics at the Chinese Academy of Fiscal Sciences, and a member of The Chinese Institute of Certified

Public Accountants. Incumbent professor of accounting and a doctoral supervisor at the Central University of Finance and Economics, and an independent

director of SDIC Power Holdings Co., Ltd.

Yingmin

Senior Economist. Former Senior Business Manager of Remuneration and Welfare Post of the Human Resources Department of SDIC Huajing Power

Holdings Co., Ltd., Deputy Manager of the Human Resources Department, Deputy Manager of Party-Masses Affairs Department (Supervision Department),

Manager of Party-Masses Affairs Department (Supervision Department), Human Resources Manager and Employee Supervisor of SDIC Power Holdings

Co., Ltd. Incumbent manager and Employee Director of the Human Resources Department (Party Committee Organization Department) of SDIC Power

Holdings Co., Ltd.

Zhang

Zijian

Senior Accountant. Former Assistant to General Manager and Head of Finance of SDIC Huajing Power Holdings Co., Ltd., Deputy General Manager

Qu Lixin and Employee Director of SDIC Power Holdings Co., Ltd. Incumbent Full-time Equity Director of State Development & Investment Corp., Ltd. and the

Chairman of the Supervisory Committee of SDIC Power Holdings Co., Ltd.

Senior Economist. Former Executive Deputy Director and Executive Director of the Audit Business Division I of the Audit and Evaluation Center of

the Audit Department of State Development & Investment Corp., Ltd., Audit Director of Audit Business Division III of the Audit and Evaluation Center,

Han Xiuli Executive Deputy Director of Audit Business Division II of the Audit and Evaluation Center, and Executive Deputy Director of Audit Business Division II

of theAudit Evaluation Center. Incumbent Executive Deputy Director ofAudit Department Division II of theAudit and Evaluation Center of SDIC Operation

Center Co., Ltd. and the Supervisor of SDIC Power Holdings Co., Ltd.

Zhao

Lijun

Senior Accountant. Former Senior Financial Manager of the Finance Department of China CAMC Engineering Co., Ltd., Head of Finance of the West

Asia and Africa Division, Deputy Manager of the Finance Department of SDIC China National Complete Plant Import & Export Corporation Limited, and

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Annual Report 2023

Deputy Manager of Planning and Finance Department of SDIC Power Holdings Co., Ltd. Incumbent Employee Supervisor and Manager of the Financial

Management Department of SDIC Power Holdings Co., Ltd.

Senior Accountant. Former Chief Accountant of Guangxi Railway Investment Group Co., Ltd., Deputy General Manager of Guangxi Railway

Investment Group Co., Ltd., Chief Accountant of Guangxi Tourism Development Group Co., Ltd., Chief Accountant of China New Era Group Corporation,

and Deputy General Manager and Head of Finance of SDIC Power Holdings Co., Ltd. Incumbent Chief Accountant of SDIC Power Holdings Co., Ltd.

(Head of Finance)

Zhou

Changxin

Senior Engineer. Former Deputy Manager and Manager of the Production Technology Department, Manager of Business Development Department,

General Manager Assistant and concurrently Manager of Business Development Department, General Manager Assistant, General Manager Assistant and

concurrently Manager of General Affairs Department (Party Committee Office) of SDIC Power Holdings Co., Ltd. Incumbent Deputy General Manager of

SDIC Power Holdings Co., Ltd.

Cai

Jidong

Senior Engineer. Former Deputy Director of Technical Skills Training Division of Education and Training Center of China Huaneng Group Co., Ltd.,

Deputy Director of Operation and Coordination Division (Technology and Environmental Protection Division) of Operation and Work Safety Supervision

Department of State Development & Investment Corp., Ltd., Executive Director of Risk Management Division of Operation and Work Safety Supervision

Department, and Executive Director of Risk Management Division of Legal Compliance and Risk Management Department. Incumbent Deputy General

Manager of SDIC Power Holdings Co., Ltd.

Jing

Zhentao

Senior Economist. Former Deputy Manager of the Comprehensive Department, Manager of the Fuel Management Department, and Manager of the

Business Management Department of SDIC Power Holdings Co., Ltd., General Manager Assistant and concurrently Manager of Business Management

Department and Employee Director of SDIC Power Holding Co., Ltd. Incumbent Deputy General Manager and Secretary of the Board of Directors of SDIC

Power Holdings Co., Ltd.

Gao Hai

Senior Economist. Former Business Development Manager, Manager of the General Department, Responsible Project Manager, Human Resources

Yang Lin Manager of SDIC Huajing Power Holdings Co., Ltd., Human Resources Manager, Secretary of the Board of Directors and concurrently General Counsel of

(dismissed) SDIC Power Holdings Co., Ltd. Incumbent Deputy Director of the Group Office (Office of Board of Directors and Party Leadership Group Office) of State

Development & Investment Corp., Ltd.

Other notes

□ Applicable √ Not Applicable

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Annual Report 2023

(II) Positions of current and dismissed directors, supervisors and Senior Executives during

the reporting period

1. Posts held in shareholder organizations

√ Applicable □ Not Applicable

Name of the

Positions held in

Name of shareholder company shareholder

company

Start date of

term

person

holding

End date of term

the post

Deputy

State Development & Investment General Manager,

Zhu Jiwei

(dismissed)

March

2024

Corp., Ltd.

member of CPC

Group

State Development & Investment

Corp., Ltd.

Full-time

Equity Director

April 2016

Luo

Shaoxiang

China SDIC Gaoxin Industrial

Investment Co. Ltd.

March

2020

January

2024

Director

State Development & Investment

Corp., Ltd.

Full-time

Equity Director

January

2022

Chairman of

the Supervisory

Committee

SDIC Assets Management Co.,

October

2020

Li Junxi

Ltd.

Chairman of

the Supervisory

Committee

SDIC Chuangyi Industry Fund

Management Co., Ltd.

October

2020

State Development & Investment

Corp., Ltd.

Full-time

Equity Director

January

2022

Chairman of

the Supervisory

Committee

SDIC Capital Co., Ltd.

April 2023

Chairman of

the Supervisory

Committee

Qu Lixin

March

2022

January

2024

SDIC Intelligence Co., Ltd.

SDIC Mining Investment Co.,

Ltd.

January

2022

Director

SDIC Xinjiang Luobupo Potash

Co., Ltd.

January

2022

Head

Finance

China Yangtze Power Co., Ltd.

April 2019

Chairman

General

Manager

Yangtze Power Investment

Management Co., Ltd.

September

2020

Zhan

Pingyuan

and

China

International

Limited

Yangtze

(Hongkong)

Power

Co.,

December

2021

Director

Executive

Deputy Director

of Audit Business

Division II of the

SDIC Operation Center Co., Ltd.

SDIC Chuangyi Industry Fund

July 2023

October

Han Xiuli

Audit

and

Evaluation Center

Supervisor

64 / 128

Annual Report 2023

Management Co., Ltd.

2020

Director of

Finance

Department

State Development & Investment

Corp., Ltd.

February

2023

the

Zhang

Wenping

(dismissed)

Rongshi

Holding Company Limited

International

Executive

Director

October

2023

Deputy

Director of the

General Office

State Development & Investment (Office of the

Corp., Ltd. Board of

Directors, Office

of the Party

Group)

Yang Lin

(dismissed)

October

2023

2. Posts held in other organizations

√ Applicable □ Not Applicable

Name of

the person

holding the

post

Positions in other

companies

Start date

of term

End date of

term

Name of other companies

Postgraduate

Base of Hohai University

Training

Master Supervisor

Council Member

Vice Chairman

July 2019

Hydropower Environment

Research Institute

October

2019

Chinese Society for Rock

Mechanics & Engineering

December

2020

Sichuan Society of Rock

Mechanics and Engineering

May 2021

April 2022

June 2022

Chongqing Electric Power

Industry Association

Vice Chairman and

Council Member

Guo

Xuyuan

Sichuan Electric Power

Association

Vice Chairman

Executive Director

Vice Chairman

Council Member

Jiangsu Electric Power

Association

February

2023

Sichuan

Association

Energy

August

2023

China

National

November

2023

Committee on Large Dams

Sichuan Society

Hydroelectric Engineering

Chinese Society

Electrical Engineering

Committee of Energy and

Water Supply, Price

Association of China

China Electric Power

Promotion Council

China Electricity Council

Chinese Society of

From

August 2022

January

2021

November

2023

Vice Chairman

April 2020

Haimiao

October

2022

Vice Chairman

Council Member

April 2021

January

Executive Director

65 / 128

Annual Report 2023

Hydroelectric Engineering

2024

March

2022

Hydropower Generation,

China Electricity Council

November

2023

Vice Chairman

Thermal

Power

March

2022

November

2023

Generation, China Electricity

Council

The 3rd Professional

Committee of Chief Financial

Officers of China Association

for Public Companies

August

2020

Deputy Director

Vice Chairman

Zhou

Changxin

PriceAssociation of China

(Committee of Energy and

Water Supply)

November

2023

Chinese

Society

Hydroelectric

Engineering,

April 2022

Pumped Storage Industry

Branch

Cai

Jidong

Advisory Committee of

Shantou International Wind

Power Innovation Port

Entrepreneur

Consultant

December

2023

Hydropower Generation,

China Electricity Council

November

2023

Vice Chairman

Jing

Zhentao

Thermal

Power

November

2023

Generation, China Electricity

Council

Investor

Relations

Management Committee of the

Listed Companies Association

of Beijing

December

2023

Gao Hai

Director

April 2024

Pan Jiazheng Hydropower

January

2021

Science

and

Technology

Vice Chairman

Zhang

Wenping

Foundation

(dismissed)

Chinese

Hydroelectric Engineering

Society of

November

2021

January

2024

Executive Director

Investor

Relations

Yang Lin Management Committee of the

(dismissed) Listed Companies Association

of Beijing

December

2023

Director

July 2022

July 2005

Central University of

Finance and Economics

Professor, doctorial

tutor

Independent Director,

director of Audit

Committee

Beijing Jingyi Automation

Equipment Co., Ltd.

September

2022

Independent Director,

Convener of Audit

Committee

Yingmin

Cherry Valley Farms

Limited

June 2021

Independent Director,

Director of Audit

Committee, Director of

Remuneration and

Aurora

Technology Co., Ltd.

Optoelectric

April 2023

May 2020

Assessment Committee

Xu Junli

Senior Partner

Tahota (Beijing) Law

66 / 128

Annual Report 2023

Firm

Ltd.

Independent Director,

Director of Remuneration

and Assessment Committee

YTO Express Group Co.,

October

2022

Independent Director,

Director of Remuneration

and Assessment Committee

Shenzhen

Pharmaceutical Co., Ltd.

ScienCare

February

2022

Academy of Modern

Electric Power Research of

North China Electric Power

University

President

Director

April 2020

Electric Power Market

Research Institute of North

Zhang

Lizi

China

Electric

Power

University

Energy

System

Deputy Director and

the Secretary-General

December

2020

Committee of China Society

for Electrical Engineering

(III) Remuneration of directors, supervisors and senior executives

√ Applicable □ Not Applicable

Decision-making

procedure

The regulations related to the remuneration of directors and supervisors

for remunerations of directors, can only be implemented after being reviewed and approved by the

supervisors, and senior executives Remuneration and Assessment Committee of the Board of Directors and

submitted to the General Meeting of Shareholders for approval. The

regulations related to the remuneration of senior executives shall be

reviewed by the Remuneration and Assessment Committee of the Board of

Directors and submitted to the Board of Directors for approval.

Does a director recuse himself

from the discussion of Board of

Directors of his remuneration?

Yes

Details

the

On November 14, 2023, the Remuneration and Assessment Committee

recommendations made by the of the 12th Board of Directors of the Company held its sixth meeting to

Remuneration and Assessment organize the 2019-2021 term of office, 2022 term of office and 2022 annual

Committee or at the Special assessment of the Company and all senior executives, accounted for the

Meeting of Independent Directors annual remuneration of the Chairman and all senior executives of the

on the remuneration of directors, Company in 2022 and the tenure incentives for the previous term, and

supervisors and senior executives

considered that the remuneration received by directors, supervisors and

senior executives disclosed in the 2022 Annual Report was are determined

in accordance with the principles of Administrative Measures for

Remuneration of Persons-in-Charge and Administrative Measures for the

Remuneration of Directors and Supervisors of the Company.

Basis for determining the

The remuneration of directors and supervisors is determined in

remuneration

directors, accordance with the Administrative Measures for the Remuneration of

supervisors and Senior Executives Directors and Supervisors of the Company. The remuneration of senior

executives is determined in accordance with the Administrative Measures for

Remuneration of Persons-in-Charge of the Company and the Administrative

Measures for Performance Assessment of Senior Executives of the Company.

Actual

payment

See "IV. Directors, Supervisors and Senior Executives, (I) Shareholding

remuneration

of directors, changes and remuneration of current and dismissed directors, supervisors,

supervisors and senior executives

and senior executives during the reporting period" in this Section.

RMB 9,810,200

Total remunerations actually

paid to all directors, supervisors and

senior executives at the end of the

67 / 128

Annual Report 2023

reporting period

(IV) Changes in directors, supervisors and senior executives

√ Applicable □ Not Applicable

Manner of

change

Name

Job title

Reason for changes

Elected by the Board of

Directors and the General Meeting

of Shareholders

Non-independent Director,

Chairman

Guo Xuyuan

Election

Resigned from the position

of a director and chairman of the

Board of Directors of the

Company due to work adjustment

Non-independent Director,

Chairman

Zhu Jiwei

Dismissed

Resigned from the position

of a director of the Company due

to work adjustment

Zhang Wenping

Yu Haimiao

Non-independent director

Dismissed

Election

Elected by the Board of

Directors and the General Meeting

of Shareholders

Resigned from the position

of an employee director of the

Company due to work adjustment

Gao Hai

Zhang Zijian

Zhao Lijun

Employee Director

Employee Supervisor

General Manager

Dismissed

Election

Elected by the Employees'

Congress

Resigned from the position

of an employee supervisor of the

Company due to work adjustment

Dismissed

Election

Elected by the Employees'

Congress

Resigned from the position

of General Manager of the

Company due to work adjustment

Zhang Wenping

Yu Haimiao

Dismissed

Appointment

Engagement by the Board of

Directors

General Manager

Resigned from the position

of Secretary of the Board of

Directors and General Counsel of

the Company due to work

adjustment

Secretary of the Board of

Directors, General Counsel

Yang Lin

Dismissed

Chief Accountant (Head of

Finance)

Engagement by the Board of

Directors

Zhou Changxin

Cai Jidong

Appointment

Dismissed

Expiry of the period on

which they are appointed

Deputy General Manager

Engagement by the Board of

Directors

Appointment

Engagement by the Board of

Directors

Jing Zhentao

Deputy General Manager,

and Secretary of the Board of

Directors

Engagement by the Board of

Directors

Gao Hai

Appointment

68 / 128

Annual Report 2023

(V) Information on penalties by securities regulators in recent three years

□ Applicable √ Not Applicable

(VI) Others

□ Applicable √ Not Applicable

V. Meeting of the Board of Directors held during the reporting period

Session

Date

Resolutions

Proposals deliberated and adopted and made resolutions:

Proposal on Amending Articles of Association

Proposal on Amending the Administrative Measures for

7th

February 15,

2023

Remuneration of Persons-in-Charge

Meeting of the

12th Session

Proposal on the Resignation of General Manager and

Temporary Entrustment of Duties by Chairman

Proposal on Convening the First Extraordinary General

Meeting of Shareholders in 2023

Proposals deliberated and adopted and made resolutions:

Proposal on Signing a Financial Service Agreement and

Related-party Transaction with SDIC Finance Co., Ltd.

Risk Assessment Report on SDIC Finance Co., Ltd.

Proposal on Formulating the Risk Disposal Plan for

Handling Deposit and Loan Business in SDIC Finance Co., Ltd.

4. Proposal on Signing the Financial Service Agreement and

related-party Transactions with Rongshi International Treasury

Management Co., Ltd.

8th

Meeting of the

12th Session

April 14, 2023

Risk Assessment Report on Rongshi International Treasury

Management Co., Ltd.

Proposal on Formulating the Risk Disposal Plan for

Handling Deposit and Loan Business in Rongshi International Treasury

Management Co., Ltd.

Proposal on Convening the Second Extraordinary General

Meeting of Shareholders in 2023

Proposals deliberated and adopted and made resolutions:

Proposal on Appointment of General Manager of the

9th

Company

Meeting of the

12th Session

April 21, 2023

Proposal on Election of Directors of the Company

Proposal on Convening the Third Extraordinary General

Meeting of Shareholders in 2023

Proposals deliberated and adopted and made resolutions:

2022 Annual Report of the Board of Directors

2022 Annual Report of the General Manager

Independent Directors' Report on Work in 2022

Proposal on the Company's 2022 Annual Report and Its

Summary

10th

Meeting of the

12th Session

Proposal on 2022 Profit Distribution Plan

April 27, 2023

2022 Environmental, Social and Governance Report

Proposal on the Financial Accounts for 2022

Proposal on 2023 Annual Operating Plan

Proposal on Deliberation of the 2022 Annual Internal

Control Evaluation Report of the Company

10. Proposal on Deliberation of the 2022 Annual Comprehensive

Risk Management Report of the Company

69 / 128

Annual Report 2023

11. Proposal on Deliberation of the Internal Control Manual

(2023 Edition) and Internal Control Standard Business Process (2023

Edition)

12. Proposal on Deliberation of the 2022 Internal Audit Work

Report of the Company

13. Report on Continuous Risk Assessment of SDIC Finance Co.,

Ltd.

14. Report on Continuous Risk Assessment of Rongshi

International Treasury Management Co., Ltd.

15. Special Report on the 2022 Annual Deposit and Use of Raised

Funds

16. Performance of the Audit Committee in 2022

17. Report of the Company for the First Quarter of 2023

Proposals deliberated and adopted and made resolutions:

Proposal on Amending the Compliance Administrative

Measures

11th

Meeting of the

12th Session

Proposal on Amending the Administrative Measures of

June 6, 2023

Investor Relations

Proposal on the Registration and Issuance of Medium-term

Notes and Corporate Bonds by Subsidiaries

Proposal on Convening the 2022 Annual General Meeting of

Shareholders

Proposals deliberated and adopted and made resolutions:

12th

Meeting of the

12th Session

Proposal on Changes in Accounting Policies

June 28, 2023

July 10, 2023

Proposal on Deliberation of the Performance Contracts for

the Term of Management Members in 2022

Proposals deliberated and adopted and made resolutions:

13th

Meeting of the

12th Session

Proposal to Provide Guarantees for ICOL

Proposal on Convening the Fourth Extraordinary General

Meeting of Shareholders in 2023

14th

Meeting of the

12th Session

Proposals deliberated and adopted and made resolutions:

July 21, 2023

Proposal on Appointment of Senior Executives of the Company

Proposals deliberated and adopted and made resolutions:

15th

Meeting of the

12th Session

August 16, 2023

Proposal on the Work Plan for Market-oriented Selection and

Recruitment of Professional Managers

Proposals deliberated and adopted and made resolutions:

Report on Continuous Risk Assessment of SDIC Finance Co.,

Ltd.

Report on Continuous Risk Assessment of Rongshi

16th

Meeting of the

12th Session

International Treasury Management Co., Ltd.

3. Special Report on the Deposit and Actual Use of Raised

Funds for the Half Year of 2023

Aug 29, 2023

Semiannual Report of 2023

Proposal on Signing the 2023 Performance Contract for

Senior Executives of the Company

Proposals deliberated and adopted and made resolutions:

17th

Meeting of the

12th Session

October 24, 2023

October 27, 2023

Proposal on Appointment of Secretary of the Board of Directors and

Other Senior Executives

18th

Meeting of the

12th Session

Proposals deliberated and adopted and made resolutions:

Proposal on Registration and Issuance of Medium-term Notes

70 / 128

Annual Report 2023

Report of the Company for the Third Quarter of 2023

Proposal on Convening the Fifth Extraordinary General

Meeting of Shareholders in 2023

Proposals deliberated and adopted and made resolutions:

2022 Annual Work Report of the Remuneration and

Assessment Committee of the 12th Board of Directors

19th

Meeting of the

12th Session

November 14,

2023

Proposal on Amending the Labor Cost Administrative

Proposal on Convening the Sixth Extraordinary General

Measures

Meeting of Shareholders in 2023

Proposals deliberated and adopted and made resolutions:

Proposal on Amending the Implementation Measures of the

"Three Majors and One Large" Decision-making System and the List of

Decision-making Powers and Responsibilities of Governance Entities

(2023 Edition)

Proposal on Signing the Employment Contract for Term of

20th

Meeting of the

12th Session

Senior Executives of the Company

December 5,

2023

Proposal on Signing the 2023 Performance Contract for

Partial Senior Executives

Proposal on Amending the Administrative Measures of

Investment Dividends

Proposal on the Change of Accounting Firm

Proposal on Convening the Seventh Extraordinary General

Meeting of Shareholders in 2023

Proposals deliberated and adopted and made resolutions:

21th

Meeting of the

12th Session

December 20,

2023

Proposal on Adjustment of Company Organization

Proposal on the Optimization and Adjustment Plan of the

14th Five-Year Plan

Proposals deliberated and adopted and made resolutions:

22nd

Meeting of the

12th Session

Proposal on 2024 Estimated Daily Related-Party

December 28,

2023

Transactions

Proposal on Convening the First Extraordinary General

Meeting of Shareholders in 2024

VI. Performance of duties by directors

(I) Attendance of directors at the meeting of the Board of Directors and general meeting of

shareholders

Attendance

of general

meeting of

shareholder

Attendance at the meetings of the Board of Directors

Number

the

Independen

t director or

not

meeting

s of the

Board of

Director

Number of

attendances

Director

Presence

by proxy

Attendances

Attendance by means of Attendance

s in person communicatio s by proxy

Numbe

the

for

two

general

consecutiv

e times or

not

that

absence

meeting of

shareholder

should

attended

this year

71 / 128

Annual Report 2023

Zhu

Jiwei

Yes

Luo

Shaoxiang

Haimiao

Junxi

Zhan

g Lizi

Junli

Yingmin

Zhan

Pingyuan

Gao

Hai

Explanation for failure to attend in person at two consecutive meetings of the Board of Directors

□ Applicable √ Not Applicable

Number of the meetings of the Board of Directors

that should be held this year

Including: Number of on-site meetings

Frequency of meetings held in communication

mode

Frequency of on-site meetings combined with

communication mode

(II) Objections raised by directors to relevant affairs of the Company

□ Applicable √ Not Applicable

(III) Others

□ Applicable √ Not Applicable

VII. Special committees under the Board of Directors

√ Applicable □ Not Applicable

(I) Members of the special committees under the Board of Directors

Category of special committee

Audit Committee

Member name

Yu Yingmin, Xu Junli, Zhang Lizi

Nomination Committee

Zhang Lizi, Xu Junli, Li Junxi

Remuneration and Assessment Committee

Strategy Committee

Xu Junli, Yu Yingmin, Li Junxi

Guo Xuyuan, Luo Shaoxiang, Zhang Lizi

Guo Xuyuan, Luo Shaoxiang, Yu Haimiao, Yu Yingmin,

Committee on Environment, Society and

Governance

Zhang Zijian

The Committee on Environment, Society and Governance was established with the approval of

the Company at the 23rd Meeting of the 12th Board of Directors held on March 11, 2024.

72 / 128

Annual Report 2023

(II) During the reporting period, the Strategy Committee, the Audit Committee, the

Nomination Committee, and the Remuneration and Assessment Committee held a total of 21

meetings

Date

Content

Important comments and suggestions

The meeting deliberated and adopted the following proposal

with three votes in favor, none against, and no abstention:

The 2nd

Meeting of the

12th Strategy

Committee

April 27, 2023

Proposal on 2023 Annual Operating Plan

Performance of the Strategy Committee in 2022

The meeting deliberated and adopted the following proposal

with three votes in favor, none against, and no abstention:

The 3rd

Meeting of the

12th Strategy

Committee

December 14,

2023

Proposal on the Optimization and Adjustment Plan of the 14th

Five-Year Plan

The meeting deliberated and adopted the following proposal

with three votes in favor, none against, and no abstention:

The 5th

Meeting of the

12th Audit

February 15,

2023

Proposal on Deliberation of Internal Audit Report in the Fourth

Quarter of 2022 and Special Inspection Report on Standardized

Operation

Committee

The meeting deliberated and adopted the following proposal

with three votes in favor, none against, and no abstention:

The 6th

Meeting of the

12th Audit

Related-party Transaction with SDIC Finance Co., Ltd.

2. Proposal on Signing the Financial Service Agreement and

Proposal on Signing a Financial Service Agreement and

April 14, 2023

Committee

related-party Transactions with Rongshi International Treasury

Management Co., Ltd.

The meeting deliberated and adopted the following proposal

with three votes in favor, none against, and no abstention:

Proposal on the Company's 2022 Annual Report and Its

Summary

Proposal on the Financial Accounts for 2022

Proposal on Deliberation of the 2022 Annual Internal

Control Evaluation Report of the Company

Proposal on Deliberation of the 2022 Annual

Comprehensive Risk Management Report of the Company

The 7th

Meeting of the

12th Audit

Proposal on Deliberation of the Internal Control Manual

(2023 Edition) and Internal Control Standard Business Process (2023

Edition)

April 27, 2023

Committee

Proposal on Deliberation of the 2022 Internal Audit Work

Report of the Company

Evaluation Report on the Audit Institution's Work in 2022

Opinions on the Verification of the Company's 2022

Financial Final Accounts and 2022 Annual Report

9. Opinions on the Verification of the Company's 2022

Internal Control Evaluation Report

10. Performance of the Audit Committee in 2022

11. Report of the Company for the First Quarter of 2023

The 8th

Meeting of the

12th Audit

The meeting deliberated and adopted the following proposal

with three votes in favor, none against, and no abstention:

June 28, 2023

Aug 29, 2023

Proposal on Changes in Accounting Policies

Committee

The meeting deliberated and adopted the following proposal

with three votes in favor, none against, and no abstention:

The 9th

Meeting of the

12th Audit

Proposal on Deliberation of Internal Audit Report in the

73 / 128

Annual Report 2023

Committee

Second Quarter of 2023 and Special Inspection Report on

Standardized Operation

Semiannual Report of 2023

The meeting deliberated and adopted the following proposal

with three votes in favor, none against, and no abstention:

The 10th

Meeting of the

12th Audit

October 27, 2023

1. Report of the Company for the Third Quarter of 2023

2. Proposal on Deliberation of Internal Audit Report in the Third

Quarter of 2023

Committee

The 11th

Meeting of the

12th Audit

The meeting deliberated and adopted the following proposal

with three votes in favor, none against, and no abstention:

December 5,

2023

Proposal on the Change of Accounting Firm

Committee

The 12th

Meeting of the

12th Audit

The meeting deliberated and adopted the following proposal

with three votes in favor, none against, and no abstention:

December 28,

2023

Proposal on 2024 Estimated Daily Related-Party Transactions

Committee

The meeting deliberated and adopted the following proposal

with three votes in favor, none against, and no abstention:

The 1st

Meeting of the

12th Nomination

Committee

Proposal on Election of Chairman of the Nomination

April 21, 2023

Committee

Proposal on Appointment of General Manager

Proposal on Election of Directors of the Company

The 2nd

Meeting of the

12th Nomination

Committee

The meeting deliberated and adopted the following proposal

with three votes in favor, none against, and no abstention:

April 27, 2023

July 21, 2023

Performance of the Nomination Committee in 2022

The 3rd

Meeting of the

12th Nomination

Committee

The meeting deliberated and adopted the following proposal

with three votes in favor, none against, and no abstention:

Proposal on Appointment of Senior Executives of the Company

The meeting deliberated and adopted the following proposal

with three votes in favor, none against, and no abstention:

The 4th

Meeting of the

12th Nomination

Committee

August 16, 2023

Proposal on the Work Plan for Market-oriented Selection and

Recruitment of Professional Managers

The meeting deliberated and adopted the following proposal

with three votes in favor, none against, and no abstention:

The 5th

Meeting of the

12th Nomination

Committee

October 27, 2023

Proposal on Appointment of Secretary of the Board of Directors

and Other Senior Executives

The 2nd

Meeting of the

12th

Remuneration and

Assessment

Committee

The meeting deliberated and adopted the following proposal

with three votes in favor, none against, and no abstention:

February 15,

2023

Proposal on Amending the Administrative Measures for

Remuneration of Persons-in-Charge

The 3rd

Meeting of the

12th

Remuneration and

Assessment

Committee

The meeting deliberated and adopted the following proposal

with three votes in favor, none against, and no abstention:

April 27, 2023

June 28, 2023

Performance of Remuneration and Assessment Committee in

2022

The meeting deliberated and adopted the following proposal

with three votes in favor, none against, and no abstention:

The 4th

Meeting of the

12th

Proposal on Deliberation of the Performance Contracts for the

74 / 128

Annual Report 2023

Remuneration and Term of Management Members in 2022

Assessment

Committee

The 5th

Meeting of the

12th

The meeting deliberated and adopted the following proposal

with three votes in favor, none against, and no abstention:

Aug 29, 2023

Remuneration and

Assessment

Committee

Proposal on Signing the 2023 Performance Contract for Senior

Executives of the Company

The meeting deliberated and adopted the following proposal

with three votes in favor, none against, and no abstention:

The 6th

Meeting of the

12th

November 14,

2023

2022 Annual Work Report of the Remuneration and

Remuneration and Assessment Committee of the 12th Board of Directors

Assessment

Committee

Proposal on Amending the Labor Cost Administrative

Measures

The meeting deliberated and adopted the following proposal

with three votes in favor, none against, and no abstention:

The 7th

Meeting of the

12th

November 28,

2023

Proposal on Signing the Employment Contract for Term

Remuneration and of Senior Executives of the Company

Assessment

Committee

Proposal on Signing the 2023 Performance Contract for

Partial Senior Executives

(III) Details of the matter in objection

□ Applicable √ Not Applicable

VIII.

Explanation that the Supervisory Committee finds that the Company has risks

□ Applicable √ Not Applicable

The Supervisory Committee has no objections to supervision matters in the reporting period.

IX. Employees of parent company and major subsidiaries at the end of the reporting

period

(I) Employees

Number of current employees of parent company

Number of current employees of major subsidiaries

Total number of current employees

135

10,145

10,280

Number of retired employees who shall be paid by the parent

company and main subsidiaries

Speciality

Type

Production personnel

Sales personnel

Technicians

Number (person)

5,709

104

2,196

394

Finance staff

Administrative personnel

Total

1,877

10,280

Educational background

Category of educational attainment

Graduate degree or higher degree

Number (person)

728

75 / 128

Annual Report 2023

Undergraduate

Below undergraduate

Total

5,307

4,245

10,280

(II) Remuneration policy

√ Applicable □ Not Applicable

According to the relevant management system, the Company continuously strengthened the

management of labor costs and total payroll, completed daily supervision and analysis, and improved

the institutional management system of labor costs and salaries. In terms of labor cost management,

the Company strictly implemented the standards stipulated in the system, refined the management

subjects, and maintained that the growth of total labor costs is on par with that of economic benefits

according to the principle of efficiency matching. In terms of total wage management, the Company

strictly implemented relevant administrative measures, strengthened the guiding role of the wage

distribution, and focused on holding investment enterprises with stable growth of benefits and

breakthrough progress, and stable situation of work safety in business development, and further

optimized the incentive and restraint mechanism of the income distribution. In the daily supervision

process, the Company made full use of the comprehensive financial data management platform,

closely tracked the implementation of labor cost and total wage budget of holding investment

enterprises, made statistical analysis, carefully analyzed the labor cost data of controlling investment

enterprises with significant increases and decreases to find the reasons, to provide reminders. In terms

of remuneration distribution, the Company adhered to the principle of "flexible adjustment of

income" and the guidance of performance results, eliminated egalitarianism, fully mobilized the

enthusiasm and initiative of employees, and gave full play to the incentive-oriented role of salary

distribution.

(III) Training program

√ Applicable □ Not Applicable

The training focused on serving the Company's strategy and enhancing employees' ability and

quality. The Company adopted a training system by means of source, follow-up and whole-process

cultivation modes to empower talent teams in fields like the Company's management,

interdisciplinary party-mass work, investment management, sci-tech innovation, professional

management, and skills and techniques. The training followed five principles: strategic orientation,

application of what has been learned, full coverage, highlighting key points, hierarchical classification,

accurate training, intensified tracking, whole-process training, system guarantee and strict

management. The Company aimed to enhance training effectiveness through precise planning of the

content, optimization of the system and diversified forms. Furthermore, it strictly conducted full-

cycle training management, demand research, process supervision and effect evaluation, to facilitate

the transformation of training effectiveness. Furthermore, the Company encouraged employees to

explore training demands and participate in different types of training according to their job

responsibilities and work needs. It also strictly managed training funds according to the training

discipline and regulations. In 2023, the Company's training coverage rate reached 99.07%, and the

per capita training time was 136.54 hours, giving full play to the positive role of training in improving

personnel quality, stimulating the enterprising spirit and enhancing cultural identity.

(IV) Labor outsourcing

□ Applicable √ Not Applicable

X. Plans for profit distribution and conversion of capital reserve into share capital

(I) Formulation, implementation or adjustment of cash dividend policy

√ Applicable □ Not Applicable

76 / 128

Annual Report 2023

1. Formulation: The Company's cash dividend policy is mainly referred to Article 10.1.8 of

the Articles of Association (disclosure date: February 16, 2023) and the Shareholder Return Plan of

the Company for the Next Three Years (2021-2023) (disclosure date: October 30, 2021, announcement

number: 2021-083). The main related contents are as follows:

"The Company shall maintain the continuity and stability of the profit distribution policy. The

profits accumulatively distributed in cash by the Company in the recent three years are no less than

30% of the average annual profits available for distribution in recent years. The Company's profit

distribution policy adjustment plan shall seek the opinions of independent directors and supervisors

in advance and be approved by more than two-thirds of the voting rights held by shareholders present

at the General Meeting of Shareholders. In the process of decision-making and demonstration of the

profit distribution plan, the Board of Directors should actively communicate with shareholders,

especially small and medium shareholders, through various channels, fully listen to the opinions and

demands of small and medium shareholders, and answer the concerns of small and medium

shareholders in a timely manner. The independent director may collect the opinions of the minority

shareholders, propose a dividend plan and submit it to the Board of Directors for discussion.

The Board of Directors of the Company shall distinguish the following circumstances taking

into account its industry features, development stages, business model and profitability as well as

whether it has any significant capital expenditure arrangement, and put forward a differentiated cash

dividend policy in accordance with the procedures set out in the Articles of Association:

（1） If the Company is at the mature stage and does not have any significant fund

expenditure arrangement, cash dividend shall at least account for 80% of this profit distribution at the

time of profit distribution;

（2） If the Company is at the mature stage and has some significant fund expenditure

arrangement, cash dividend shall at least account for 40% of this profit distribution at the time of

profit distribution;

（3） Where the Company is in a growth stage with any significant fund expenditure

arrangement, cash dividend shall not be less than 20% of the total profit distribution;

The development phase where the Company is at during the dividend shall be determined by the

Board of Directors based on the specific situation.

Major investment plans or major cash expenditures refer to the Company's plans to invest abroad,

acquire assets or purchase equipment in the next 12 months (except for the items of raised funds),

and the accumulated expenditure reaches or exceeds 30% of the latest audited net assets of the

Company or a single cash expenditure item exceeds RMB 500 million."

"The accumulated profit distributed by the Company in cash in the last three years shall not be

less than 30% of the average annual distributable profit realized in the last three years, and the profit

to be distributed by the Company in cash in 2021-2023 shall not be less than 50% of the distributable

profit realized in consolidated statements in that year in principle."

2. Implementation: At the 27th meeting of the 12th Board of Directors of the Company, it is

recommended to distribute cash dividends in 2023 based on the total share capital of 7,454,179,797

shares, with a dividend of RMB 0.45 per share (including tax), with a total cash dividend of RMB

3,354,380,908.65, accounting for about 50% of the Company's net profit attributable to shareholders

of the parent company in 2023.

3. Adjustment: None.

(II) Special notes of cash dividend policy

√ Applicable □ Not Applicable

Whether it complies with provisions of the Articles of Association or the resolution

√Yes □No

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of General Meeting of Shareholders

Whether the dividend standards and proportions are specific and clear

Whether relevant decision-making procedures and mechanisms are complete

Whether the independent directors properly perform their responsibilities or not

√Yes □No

Whether medium and small shareholders fully express their opinions and demands,

and whether their lawful rights and interests are protected properly

√Yes □No

(III) Where no proposal for distribution of cash profits is presented in the existence of

profits and positive profits available for distribution by the parent company to shareholders

during the reporting period, the Company shall give detailed reasons and provide the purpose

and plan for use of those undistributed profits

□ Applicable √ Not Applicable

(IV) Plan of profit distribution or conversion of capital reserve into share capital in the

reporting period

√ Applicable □ Not Applicable

Unit: Yuan Currency: RMB

Number of bonus shares given per 10 shares (share)

Number of distributed dividends per 10 shares

(RMB) (tax inclusive)

4.50

Number of shares increase by transferring per 10

shares (share)

Amount of cash dividends (tax inclusive)

3,354,380,908.65

Net profit in the annual consolidated statements of

dividends, attributable to ordinary shareholders of the

listed company

6,704,936,953.85

Percentage in the net profit attributable to ordinary

shareholders of the listed company in the consolidated

statements (%)

Amount included in cash dividend for repurchasing

shares in cash

Total dividend amount (tax inclusive)

3,354,380,908.65

Proportion of total dividend amount to the net profit

attributable to ordinary shareholders of the listed

company in consolidated statements (%)

XI. Stock ownership incentive plan, employee stock ownership plan or other employee

incentives and effects thereof

(I) Incentives disclosed in the temporary announcements and without progress or changes

in the follow-up implementation process

□ Applicable √ Not Applicable

(II) Incentives not disclosed in any temporary announcements or with follow-up actions

Stock ownership incentives

□ Applicable √ Not Applicable

Other descriptions

□ Applicable √ Not Applicable

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Annual Report 2023

Employee stock ownership plan

□ Applicable √ Not Applicable

Other incentives

□ Applicable √ Not Applicable

(III) Stock ownership incentive granted to the directors and senior executives during the

reporting period

□ Applicable √ Not Applicable

(IV) Establishment and implementation of an assessment system and incentive system for

senior executives during the reporting period

√ Applicable □ Not Applicable

The Company has established an assessment and incentive mechanism for senior executives.

The Board of Directors set a Remuneration and Assessment Committee, which is responsible for

studying and reviewing the remuneration policies and plans for senior executives of the Company. In

salary strategy, the Company's senior executives adhere to the connection with strategic objectives,

and the salary level is linked to the results of the Company's performance assessment and the personal

assessment of senior executives, so as to stimulate vitality with strong incentives and hard constraints.

XII. Construction and implementation of internal control system during the reporting

period

√ Applicable □ Not Applicable

The Company's Internal Control Administrative Measures clearly stipulated the management

organization and responsibilities, the construction and operation, the self-assessment and supervision

inspection, assessment and accountability and other work procedures of internal control. In 2023, the

Company implemented the instruction spirit of a new round of state-owned enterprise reform to

deepen and enhance actions, continuously improved the internal control system, strengthened

organizational leadership, and established an effective internal control management system with

strong leadership, clarified rights and responsibilities, and effective operation, so as to leverage the

role of internal control functional departments in overall promotion, organization and coordination,

supervision and implementation. By doing this, it effectively conducted internal control management

such as supervision and assessment, rectification and implementation, and strengthened the guidance

for holding investment enterprises. It also timely required newly established enterprises to complete

the construction of internal control system, covering all posts and responsible personnel in enterprises

at all levels, and set up an integrated top-down and comprehensive internal control management

system, guaranteeing the effective operation of the system and growing modernization level of the

Company's core competitiveness and governance ability.

The Company actively investigated rules and regulations. As of December 31, 2023, there have

been 347 current effective systems, covering all business areas of the Company, and the Company

has completed the "enactment, revision, abolition and interpretation" of the system, forming a

comprehensive corporate management system.

Major defects described in internal control during the reporting period

□ Applicable √ Not Applicable

XIII. Management and control over the subsidiaries in the reporting period

√ Applicable □ Not Applicable

In 2023, the Company focused on core business procedures and key control links according to

the requirements of state-owned assets supervision and relevant regulations of securities supervision.

In view of the characteristics that there are many new enterprises affiliated with the Company, each

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Annual Report 2023

enterprise is required to improve the internal control system in a targeted manner, strengthen the

system construction and new business fields, timely and accurately internalize regulatory provisions

into enterprise rules and regulations, and realize the coverage of the rule and regulation system in all

business fields. Moreover, the internal control system documents such as the Internal Control Manual

of the Company have been prepared based on this update. In 2023, the Company and its enterprises

did not have major internal control defects, and the overall internal control system was well

implemented.

In 2023, the Company thoroughly implemented the risk management requirements of the Board

of Directors, prioritized the major risk assessment results at the beginning of the year for the whole

year, and regularly held quarterly risk management meetings according to the demands of risk

management work. It also listened to the construction of enterprise risk management systems and

mechanisms and the development of relevant work, gave risk prompts, guided enterprises to conduct

potential risk identification, studied risk response strategies, and formulated relevant measures. To

this end, the risk prevention and control capabilities have been comprehensively improved. The risks

of the Company and its affiliated enterprises were controllable throughout the year, and no major risk

events occurred, which guaranteed healthy and sustainable development.

XIV.Explanation of relevant information of Internal Control Audit Report

√ Applicable □ Not Applicable

The Company's external auditors （BDO CHINA Shu Lun Pan Certified Public Accountants

LLP）also issued an audit report on the Company's internal control which is of the opinion that as of

31 December 2023, the Company has maintained effective internal control in all major aspects for

financial reporting in compliance with the Basic Standards for Enterprise internal Control and the

supplementary guidelines as well as other applicable rules and regulations. For details please refer to

the 2023 Annual internal Control Assessment Report and the 2023 Annual internal Control Audit

Report issued by the extern auditor as disclosed on the website of SSE(www.sse.com.cn ).

Has the Company disclosed the Internal Control Audit Report: Yes

Type of opinion in the Internal Control Audit Report: Standard unqualified opinion

XV. Rectification of self-inspected problems in the special action for corporate governance

of listed companies

During the reporting period, there is no situation to be rectified by the Company.

XVI. Others

□ Applicable √ Not Applicable

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Section V Environmental and Social Responsibilities

I. Environmental Information

Whether environmental protection mechanisms are

established

Yes

Investment in environmental protection during the

reporting period (unit: 10,000 yuan)

78,150.18

(I) Environmental protection information of the Company and the major subsidiaries on

the list of intensive pollutant discharging units as published by environmental protection

departments

√ Applicable □ Not Applicable

1. Pollutant discharge

√ Applicable □ Not Applicable

Smoke

and

dust

Number of

outlets

SO₂

NO_X

COD

Outlet arrangement

The Approach

Conforming

or not

Province/city Power plant

Tianjin SDIC Beijiang

Guangxi SDIC Qinzhou

Fuel

mg/N³mg/N³mg/N³Ton

Piece

Consistent

with the pollutant

discharging permit

Conventional

Up to

standard

10.52 34.82 0.8

coal burning

Consistent

with the pollutant

discharging permit

Conventional

coal burning

Up to

standard

12.582 30.625 2.5

Consistent

with the pollutant

discharging permit

SDIC Genting

Meizhouwan

Conventional

coal burning

Up to

standard

13.41 35.31 2.45

Fujian

Consistent

with the pollutant

discharging permit

Conventional

coal burning

Up to

standard

Huaxia Power

5.84

35.89 2.98

.1101

Consistent

with the pollutant

discharging permit

SDIC Panjiang

Guizhou

87.96

7.92

Up to

standard

Coal gangue 85.9

(CFB boiler)

2. Construction and operation of pollutant prevention facilities

√ Applicable □ Not Applicable

All the power generation enterprises of the Company are building pollutant prevention facilities

according to national and local requirements, to ensure the smooth operation of the pollutant

prevention facilities.

3. Environmental impact assessment and other administrative permits of environmental

protection for construction projects

√ Applicable □ Not Applicable

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Annual Report 2023

All construction projects of the Company have gone through the environmental impact

evaluation, and have passed the environmental protection acceptance.

4. Emergency response plans for environmental emergencies

√ Applicable □ Not Applicable

The Company has made emergency response plans for environmental emergencies and strictly

abided by them according to national and local requirements.

5. Environmental self-monitoring scheme

√ Applicable □ Not Applicable

The Company carries out online pollutant discharging monitoring according to national and local

requirements. According to the pollutant discharging permit system and self-monitoring regulations,

it carefully made the self-monitoring plans and strictly carried out the plans.

6. Administrative penalties due to environmental issues during the reporting period

√ Applicable □ Not Applicable

All intensive pollutant discharging units of the Company didn't receive administrative

punishments due to environmental issues within the reporting period.

7. Other environmental information that should be disclosed

□ Applicable √ Not Applicable

(II) Environmental protection information of companies other than intensive pollutant

discharging units

√ Applicable □ Not Applicable

1. Administrative penalties due to environmental issues

√ Applicable □ Not Applicable

Entities of the Company other than the intensive pollutant discharging units didn't receive

administrative punishments due to environmental issues during the reporting period.

2. Other environmental information disclosed with reference to intensive pollutant

discharging units

√ Applicable □ Not Applicable

All hydropower, wind power and solar power enterprises affiliated to the Company strictly carry

out environmental protection according to national and local regulations.

3. Reasons for failure to disclose other environmental information

□ Applicable √ Not Applicable

(III) Information conducive to ecological protection, pollution prevention, and

performance of environmental responsibility

√ Applicable □ Not Applicable

The Company discloses the information that contributes to environmental protection, pollution

prevention and environmental responsibility performance in the 2023 Environmental, Social and

Governance Report.

(IV) Measures taken to reduce carbon emission and their effects during the reporting

period

Take carbon reduction measures or not

Yes

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Reduction of carbon dioxide equivalent

(unit: ton)

513.96

Measures such as accelerating the increase of the proportion

Types of carbon reduction measures (e.g. of installed capacity of clean energy, exploiting the energy-saving

clean energy power generation, carbon and carbon-reducing capabilities of existing thermal power plants,

reduction technologies in production, implementing the "three-change linkage" technical transformation

research and development of new products for of carbon reduction, flexibility and heat supply transformation,

carbon reduction)

conducting experimental research on blended combustion of

biomass fuel, and developing the heating market.

Detailed description

□ Applicable √ Not Applicable

II. Social responsibilities

(I) Separate disclosure of the social responsibility report, sustainability report or ESG

report

√ Applicable □ Not Applicable

For details, please refer to the 2023 Environmental, Social and Governance Report of the

Company disclosed on the same day (April 30, 2024).

(II) Social responsibility work

√ Applicable □ Not Applicable

Donations and public welfare

projects

Amount/content

Remarks

Total investment (RMB 10,000)

Donations, post-earthquake

reconstruction, public welfare projects, etc.

449.76

Including: funds (RMB 10,000)

Materials (RMB 10,000)

426.06

23.70

Caring for the elderly, student aid and

other public welfare donations

Number

(person)

beneficiaries

The Company and holding investment

36,000 enterprises carried out voluntary services and

various public welfare activities.

Detailed description

√ Applicable □ Not Applicable

In 2023, the Company actively responded to the brand value-shaping work of "SDIC Public

Welfare" and led various enterprises to participate in the establishment of public trusts. SDIC Power

Headquarters launched the first public trust fund in Tibetan education assistance work, and

implemented educational assistance in the plateau pastoral areas of Nagqu, Tibet. In 2023, "SDIC

Public Welfare - SDIC Power Student Aid", "SDIC Public Welfare - SDIC Power Elite Award",

"SDIC Public Welfare - SDIC Power Gardener Award" have been successively distributed in place,

and the creation of new and unified public welfare brands has better demonstrated the brand image

of SDIC.

In December 2023, an earthquake with a magnitude of 6.2 occurred in Jishishan County, Linxia

Hui Autonomous Prefecture, Gansu Province. The Company took the initiative to assume the social

responsibility of central enterprises and participate in disaster relief assistance, donating RMB 2

million to the "Gansu Charity Federation" and RMB 1 million to the "Red Cross Society of Minhe

Hui and Tu Autonomous County" for disaster-stricken people and ensure the basic livelihood of the

masses.

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Annual Report 2023

Section VI Important Matters

I. Performance of commitments

(I) Commitments of interested parties including the actual controllers, shareholders, related parties, acquirers and the Company during or

up to the reporting period

√ Applicable □ Not Applicable

With

Performed

Commitment

background

Commitment

type

Committing

entity

Date of performance

Term of in a timely and

Commitment

commitment

period or

not

commitment

strict manner

or not

SDIC committed in the 2002 material asset

replacement of the Company that, after SDIC

became the controlling shareholder of the

Company, it wouldn't directly or indirectly

participate in any business or activity where it's a

competitor of the Company or its controlled

subsidiaries.

This

commitment is

No long-term

Solve

industry

competition

April 25,

2002

SDIC

Yes

effective and

ongoing

SDIC committed in the 2002 material asset

replacement of the Company that, after SDIC

became the controlling shareholder of the

Company, it would minimize and regulate the

related-party transactions with the Company. In

the case of related-party transactions, it would go

through the legal procedures and timely disclose

the relevant information. It undertook not to harm

the legal rights of the Company and other

shareholders through related-party transactions.

This

commitment is

No long-term

Addressing

related-party

transaction

April 25,

2002

SDIC

effective and

ongoing

SDIC committed in the 2009 material assets

restructuring of the Company in terms of related-

party transaction matters of the Company and its

affiliated companies depositing with SDIC

Finance Co., Ltd., an affiliated company to SDIC,

"Where the Company and its affiliated companies

deposit with SDIC Finance Co., Ltd. and suffer

losses due to insolvency of SDIC Finance Co.,

Ltd., SDIC would, within 30 working days after

This

commitment is

No long-term

Addressing

related-party

transaction

September

16, 2009

SDIC

Yes

effective and

ongoing

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Annual Report 2023

receiving a written notice from the Company

concerning the case, compensate the Company in

cash according to the report from an audit

institution stating the loss case and amount

suffered by SDIC Power."

SDIC committed in the 2009 material assets

restructuring of the Company, in terms of the

damage compensation in the lawsuits against

Yalong Hydro, an affiliated company of the 2009

restructuring target, by Mianning Mianli Rare

Earth Ore Processing Co., Ltd. in May 2009 and

by Xichang Chengzong Mining Co., Ltd. in July

2009, "After this material assets restructuring,

where the Company suffers losses due to the

aforementioned lawsuits, SDIC undertakes to,

within 30 working days after receiving a written

notice from SDIC Power stating the losses,

compensate SDIC Power in cash according to the

report of an audit institution stating the loss case

and amount."

When

conditions

permit.

Chengzong

Mining

The

and

Guarantee

and compensation

for the value of

purchased assets

October

16, 2009

Mianli

Earth

have

Rare

cases

been

SDIC

Yes

closed, without

triggering the

compensation

conditions.

SDIC committed in the 2007 refinancing of

the Company, "The Company is the only domestic

capital operation platform of SDIC, and SDIC has

entrusted all thermal power assets good to be put

in the listed company to the Company to manage."

This

commitment is

No long-term

effective and

ongoing

Solve peer

competition

May 28,

2007

SDIC

Yes

On December 24, 2015, SDIC amended its

commitment to the 2010 corporate governance

special activity and refinancing of the Company.

The amendment was adopted at the first

extraordinary general meeting of shareholders in

2016. SDIC would inject the independent power

generation business assets within two years after

such assets meet the assets injection conditions in

SDIC Power. Assets injection conditions: 1. The

production and operation conform to the

applicable laws, administrative regulations and

the Articles of Association, the national industrial

policies, as well as the laws and regulations on

Within

two years after

No the injection

conditions are

met.

Asset

injection

December

24, 2015

SDIC

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Annual Report 2023

environmental protection, work safety, land

management and antitrust requirements. 2. The

assets concerned are clear in ownership, meet the

listing conditions under the national laws,

regulations and normative documents, and are free

from problems like incomplete property rights or

flaws in project investment approval formalities.

3. The injection conforms to the strategic plan of

SDIC Power, and is contributive to the asset

quality, financial conditions and profitability

improvement of SDIC Power. In principle, the

weighted ROAE of the assets proposed to be

injected over the past three accounting years is not

lower than 10% if such assets have been operating

for three years, and not lower than 10% over the

past two consecutive accounting years if such

assets haven't been operating for three years. The

asset-liability ratio of the assets proposed to be

injected at the end of the last accounting year is

not higher than 80%, except for SDIC Power

voluntarily lowering the ROAE and asset-liability

ratio. 4. The assets concerned are not the relevant

assets, business or equity of the directly controlled

listed companies of SDIC other than the SDIC

Power, and not the projects with coal-electricity

integration business not independent. Such assets

are helpful for SDIC Power to remain independent

of the actual controller and its related persons in

business, assets, finance, personnel, institution,

etc. 5. The assets concerned are free from material

debt repayment risk, or material contingent

matters that could affect the guarantee, lawsuit or

arbitration of the going concern. 6. Supervision

requirements of securities regulatory institutions

according to appropriate laws, regulations and

normative documents.

SDIC undertook upon the private offering of

shares by the Company in 2021, "The shares we

subscribed during this private offering by SDIC

December

9, 2021 to

December 9,

Restricted

July 19,

2021

SDIC

Yes

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Annual Report 2023

(II) If there is a profit forecast for the assets or projects of the Company, and the reporting

period is still in the profit forecast period, the Company shall explain whether the assets or

projects have reached the original profit forecast and the reasons for it

□Yes □No √N/A

(III) Completion status of performance commitment and its impact on goodwill

impairment test

□ Applicable √ Not Applicable

II. Non-operating capital occupation by the controlling shareholder and other related

parties during the reporting period

□ Applicable √ Not Applicable

III. Illegal guarantee

□ Applicable √ Not Applicable

IV. Explanation of the Board of Directors on the "Non-Standard Auditor's Report" issued

by the accounting firm by the Board of Directors of non-standard company

□ Applicable √ Not Applicable

V. Analysis and explanation of the Company on significant changes in accounting policies,

accounting estimates or reasons and impacts of correcting major accounting errors

(I) Analysis and explanation of the Company on reasons and impacts of changes in

accounting policies and accounting estimates

√ Applicable □ Not Applicable

Contents and reasons of changes

in accounting policies

Approval procedure

Remarks

Since January 1, 2023, the Group has

implemented Interpretation No. 16,

disclosed the financial statements

according to the requirements of such

standard, adjusted the related items in

the financial statements, and adjusted

the information of comparable

periods.

Interpretation No. 16 of the

Accounting Standards for

Business Enterprises (hereinafter

referred to as Interpretation No.

16) issued by the Ministry of

Finance in November 2022

The 12th Meeting of the 12th

Board of Directors and the 8th

Meeting of the 12th Supervisory

Committee of SDIC Power

Holdings Co., Ltd.

(II) Analysis and explanation of the Company on reasons and impacts of correcting major

accounting errors

□ Applicable √ Not Applicable

(III) Communication with the previous accounting firm

√ Applicable □ Not Applicable

The Company had communicated in advance with Shinewing Certified Public Accountants

(Special General Partnership) for the appointment of a new accounting firm and the later had no

objection to this.

According to relevant provisions of the Auditing Standards for Certified Public Accountants of

China No. 1153, BDO China Shu Lun Pan CPAs (Special General Partnership) communicated with

Shinewing Certified Public Accountants (Special General Partnership) and no matters that would

cause it to be unable to accept the appointment made by the Company was found.

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Annual Report 2023

(IV) Approval procedures and other instructions

□ Applicable √ Not Applicable

VI. Appointment and dismissal of accounting firm

Unit: 10,000 yuan Currency: RMB

Former appointment

Current appointment

BDO China Shu Lun Pan CPAs

(Special General Partnership)

Name of domestic accounting

firm

ShineWing Certified

Public Accountants LLP

(Special General Partnership)

461.8

Remuneration for domestic

accounting firm

432

Term of audit by domestic

accounting firm

Name of the certified public

accountant of the domestic

accounting firm

Shi Aihong, Zhang Guanwei

Name

Remuneration

Accounting firm control and

audit

BDO China Shu Lun Pan CPAs

(Special General Partnership)

Explanation on appointment and dismissal of accounting firm

√ Applicable □ Not Applicable

According to the relevant provisions of the Notice on the Issuance of the Administrative

Measures for the Selection and Appointment of Accounting Firms by State-owned Enterprises and

Listed Companies (Cai Kuai (2023) No.4) jointly released by the Ministry of Finance of the People's

Republic of China, the State-owned Assets Supervision and Administration Commission of the State

Council and the China Securities Regulatory Commission, in order to ensure the independence and

objectivity of the audit work, the Company appointed BDO China Shu Lun Pan CPAs (Special

General Partnership) to undertake the auditing of the Company's financial accounts and internal

control in 2023.

Explanation for changing accounting firm during the audit

□ Applicable √ Not Applicable

Explanation on the decrease of audit expenses by more than 20% (including 20%) compared

with the previous year

□ Applicable √ Not Applicable

VII. Risk of delisting

(I) Reasons for leading to delisting risk warning

□ Applicable √ Not Applicable

(II) Measures to be taken by the Company

□ Applicable √ Not Applicable

(III) Conditions and reasons for termination of listing

□ Applicable √ Not Applicable

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Annual Report 2023

VIII. Matters concerning bankruptcy and restructuring

□ Applicable √ Not Applicable

IX. Major lawsuits and arbitration

□ Major lawsuit and arbitration in the current year √ No major lawsuit and arbitration in the

current year

X. Suspected violations, penalties and rectification of the listed company and its directors,

supervisors, senior executives, controlling shareholders and actual controllers

□ Applicable √ Not Applicable

XI. Credit conditions of the Company and Its controlling shareholders and actual

controllers during the reporting period

√ Applicable □ Not Applicable

During the reporting period, the Company and its controlling shareholder and actual controller

were free from failing to carry out valid court decisions or pay any outstanding matured debts in large

amounts.

XII. Material related-party transactions

(I) Related-party transactions related to the Company's day-to-day operation

1. Matters disclosed in the temporary announcement and without progress or changes in

the follow-up implementation process

√ Applicable □ Not Applicable

Description of matters

Query index

The Company held the second extraordinary

Refer to the announcement released on the website

general meeting of shareholders on May 16, 2023, and of the Shanghai Stock Exchange (www.sse.com.cn),

reviewed and approved the Proposal on Signing a Announcement No.: 2023-011, 012, 022

Financial Service Agreement and Related-party

Transaction with SDIC Finance Co., Ltd. and the

Proposal on Signing a Financial Service Agreement and

Related-party Transaction with Rongshi International

Treasury Management Co., Ltd.

2. Matters disclosed in the temporary announcement, but with progress or changes during

the follow-up implementation process

√ Applicable □ Not Applicable

In 2023, it was estimated that the annual average daily deposit balance in SDIC Finance Co.,

Ltd. would not exceed RMB 15 billion, and the actual average daily deposit balance during the

reporting period was RMB 8,229 million. It was estimated that the maximum daily deposit balance

would not exceed RMB 15 billion, and the actual maximum daily deposit balance during the reporting

period was RMB 10,917 million; It was estimated that the annual average daily deposit balance

(foreign currency) in Rongshi International Treasury Management Co., Ltd. would not exceed the

equivalent of USD 100 million, and the actual average daily deposit balance (foreign currency) during

the reporting period was USD 1,650,300. The estimated maximum daily deposit balance would not

exceed RMB 5 billion, and the actual maximum daily deposit balance during the reporting period was

RMB 119 million; It was estimated that the borrowing capital (RMB) transactions with SDIC and its

controlled subsidiaries would not exceed RMB 20 billion. During the reporting period, the actual

borrowing capital (RMB) transactions were RMB 15.312 billion. It was estimated that the daily

maximum loan limit would not exceed RMB 20 billion, and the actual daily maximum loan limit was

RMB 11.242 billion; It was estimated that the new borrowings from and to Rongshi International

Treasury Management Co., Ltd. (foreign currency) would not exceed the equivalent of USD 800

90 / 128

Annual Report 2023

million. During the reporting period, the new borrowings from and to borrowings (foreign currency)

actually occurred were USD 30 million. It was estimated that the daily maximum loan limit would

not exceed RMB 15 billion, and the actual daily maximum loan limit during the reporting period was

RMB 6.645 billion.

It was estimated that the amount of related-party transactions arising from purchasing

commodities/receiving labor services from SDIC and its controlled subsidiaries would not exceed

RMB 800 million in 2023, and the actual amount of related-party transactions during the reporting

period was RMB 282 million; it was estimated that the amount of related-party transactions arising

from selling commodities/providing labor services to SDIC and its controlled subsidiaries would not

exceed RMB 400 million in 2023, and the actual amount of related-party transactions during the

reporting period was RMB 15 million.

3. Matters undisclosed in the temporary announcement

□ Applicable √ Not Applicable

(II) Related-party transactions during sales and equity acquisition

1. Matters disclosed in the temporary announcement and without progress or changes in

the follow-up implementation process

□ Applicable √ Not Applicable

2. Matters disclosed in the temporary announcement, but with progress or changes during

the follow-up implementation process

□ Applicable √ Not Applicable

3. Matters undisclosed in the temporary announcement

□ Applicable √ Not Applicable

4. Matters concerning performance achievement during the reporting period should be

disclosed if a performance agreement is involved

□ Applicable √ Not Applicable

(III) Significant related-party transactions for joint external investments

1. Matters disclosed in the temporary announcement and without progress or changes in

the follow-up implementation process

□ Applicable √ Not Applicable

2. Matters disclosed in the temporary announcement, but with progress or changes during

the follow-up implementation process

□ Applicable √ Not Applicable

3. Matters undisclosed in the temporary announcement

□ Applicable √ Not Applicable

(IV) Transactions of related creditor's rights and debts

1. Matters disclosed in the temporary announcement and without progress or changes in

the follow-up implementation process

□ Applicable √ Not Applicable

2. Matters disclosed in the temporary announcement, but with progress or changes during

the follow-up implementation process

□ Applicable √ Not Applicable

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Annual Report 2023

3. Matters undisclosed in the temporary announcement

□ Applicable √ Not Applicable

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Annual Report 2023

(V) Financial transactions between the Company and the associated finance companies, or between the holding finance companies and

related parties.

√ Applicable □ Not Applicable

1. Deposit transactions

√ Applicable □ Not Applicable

Unit: 10,000 yuan Currency: RMB

Amount incurred in the current period

Maximum daily

deposit amount

Range of deposit

interest rate

Beginning

balance

Total amount

deposited in

current period

Total withdrawal

in current period

Related party

Correlation

Ending balance

1,007,617.25

SDIC Finance Co.,

Ltd.

Fellow subsidiaries

1,500,000.00

0.35%-1.85%

978,938.47

14,465,205.60

14,436,526.82

Rongshi

The daily

maximum balance

shall not exceed

RMB 5 billion

GBP：0.01%；

USD：0.1%

International Treasury

Management Co.,

Ltd.

Fellow subsidiaries

68.06

228,854.97

228,498.54

424.49

Total

979,006.53

14,694,060.57

14,665,025.36

1,008,041.74

2. Loan business

√ Applicable □ Not Applicable

Unit: 10,000 yuan Currency: RMB

Amount incurred in the current period

Range of loan

interest rate

Beginning

balance

Total repayment

Total loan amount

amount for the

Related party

Correlation

Credit ceiling

Ending balance

for the period

period

The daily balance

shall not exceed

RMB 20 billion

The total daily

balance inclusive 3.15%-7.31%

of the accrued

SDIC Finance Co.,

Ltd.

Fellow subsidiaries

1.6%-4.3%

885,991.35

856,645.80

1,437,620.32

20,608.20

1,199,407.43

179,763.87

1,124,204.24

697,490.13

Rongshi International

Treasury

Management Co.,

93 / 128

Annual Report 2023

3. Credit offering or other financial transactions

□ Applicable √ Not Applicable

4. Other descriptions

□ Applicable √ Not Applicable

(VI) Others

□ Applicable √ Not Applicable

XIII. Material contracts and performance

(I) Trusteeship, contracting and leasing

1. Trusteeship

□ Applicable √ Not Applicable

2. Contracting

□ Applicable √ Not Applicable

3. Leasing

□ Applicable √ Not Applicable

95 / 128

Annual Report 2023

(II) Guarantee

√ Applicable □ Not Applicable

Unit: 10,000 yuan Currency: RMB

External guarantee (excluding guarantees provided to subsidiaries)

Date of

Relationship

between the

guarantor Guaranteed Guaranteed

and the

listed

Commencement Expiry

Guarantee

Type of has been

guarantee performed

or not

Guarantee

Relationship

of affiliate

guarantee

(agreement

signing

Guarantee

is overdue

or not

date of

guarantee

date of

guarantee

Amount

Counter- provided

override guarantee to affiliate

or not

Guarantor

party

amount

date)

company

Headquarter Inch Cape

of the Offshore

Company Limited

SDIC

Power

May 11,

2016

October

10, 2064

Joint

venture

2,260.28

May 11, 2016

Security No

Yes

Headquarter Inch Cape

SDIC

Power

September September 26, September

26, 2022 2022

Joint

venture

of the

Offshore

23,561.58

30, 2024

Company Limited

Total amount of guarantees during the reporting period (excluding guarantee of

subsidiaries)

Total balance of guarantees at the end of the reporting period (A) (excluding

guarantee of subsidiaries)

-2,309.50

25,821.85

Guarantee provided by the Company and its subsidiaries to subsidiaries

Total amount of guarantees during the reporting period (excluding guarantee of

subsidiaries)

Total balance of guarantees for subsidiaries at the end of the reporting period (B)

232,931.66

330,464.32

Total guarantee amount of the Company (including the guarantees for subsidiaries)

Total guarantee amount (A+B)

356,286.17

6.03%

Proportion of total guarantee amount in the Company's net assets (%)

Wherein:

Amount of guarantees provided by the Company to its shareholders, actual

controller and their related parties (C)

Amount of debt guarantees provided directly or indirectly by the Company to

secured parties with an asset-liability ratio exceeding 70% (D)

Portion of guarantee amount exceeding 50% of the net assets (E)

101,221.97

Total amount of above three guarantees (C+D+E)

96 / 128

Annual Report 2023

Unit: 10,000 yuan Currency: RMB

Is there any

Determination

of return

Actual

profits or

losses

Start Termination

Annual

yield

Type of

entrusted

loan

Actual

recovery procedures

condition or not

Via legal

entrusted

loan plan

in the

Entrusted

date of

entrusted

loan

Trustee

Source

funds

Disposition

of funds

method

loan amount entrusted

loan

future?

2022-9-

140,000.00 28

2025-9-28

Self-

owned Beijiang

fund

Self-

owned Qinzhou

fund

Self-

owned Genting

fund

Self-

owned Power

fund

SDIC

SDIC Finance Co., Entrusted

Ltd. loan

Loan contract

2.2%

3,122.78 3,122.78

Yes

2022-9-

SDIC

SDIC Finance Co., Entrusted

Ltd. loan

16,000.00

37,000.00

7,000.00

356.89

825.30

156.14

356.89

825.30

156.14

Yes

2022-9-

SDIC

SDIC Finance Co., Entrusted

Ltd. loan

Meizhouwan

Huaxia

2022-9-

SDIC Finance Co., Entrusted

Ltd.

loan

Other circumstances

□ Applicable √ Not Applicable

(3) Provision for impairment of entrusted loan

□ Applicable √ Not Applicable

3. Other circumstances

□ Applicable √ Not Applicable

98 / 128

Annual Report 2023

(IV) Other major contracts

□ Applicable √ Not Applicable

XIV. Progress in the use of raised funds

√ Applicable □ Not Applicable

(I) Overall use of raised funds

√ Applicable □ Not Applicable

Unit: RMB 10,000 USD 10,000

Total

amount of

Accumulated

progress of

investment

as at the end

of the

reporting

period(%)(3)

＝(2)/(1)

Total

amount of

raised funds

invested as

at the end of

the

Net amount

Total

raised funds

committed

investment

after

of raised

funds after

deduction of committed

issuance

expenses

amount of

raised funds

Proportion of

invested amount

in this

amount of

raised

funds with

changed

purposes

Time of

Total

amount of

Investment

amount in

this year (4)

Source of raised funds collection of

raised funds raised funds

year(%)(5)=(4)/(1)

investment

reporting

period (2)

adjustment

(1)

October 22,

$22,068

2020

November

362,999.99

28,2021

Others

$21,816.02

362,984.52

$21,816.02

363,300.00

$21,816.02

363,300.00

$21,008.00

96.34%

100%

Issuance of shares to

specific objects

364,388.73

(Note 1)

9,670.38

2.66

Note 1: The difference between the actual accumulative invested amount and the total committed investment amount of raised funds is the interest

income of special account for raised funds.

Note 2: "Others" under the above item of "Sources of Raised Funds" are specifically: issuance of global depository receipt (GDR) on the London

Stock Exchange.

(II) Details of equity investment project

√ Applicable □ Not Applicable

Unit: RMB 10,000; USD 10,000

Natur

e of

Sourc Whet Total

e of her amou amou amou amou mulat

nt of nt this nt of ed

Total

Input

Total

Accu

The

date

Whet Whet Specif Benef Benef Whet Balan

Whet

her

the

her

the

reason realiz R&D

s for ed

its

its or

her

the

ce of

amou

Item

projec her a raised overra nt of

chang funds ised raised raised

year

raised progre which projec invest

results feasib

99 / 128

Annual Report 2023

funds ss of

e of

orient

ation

involv

funds funds funds

the

t is

ment

the

this

of the

projec of the

projec

alread t has

ility

are

of the

used

for

invest

invest invest projec closed progre failure year

used projec

ed as

at the

end of

the

ment

as at reache

the s the

end of predet

ss is

in line reach

with

the

plann

comm ment

the

plann

progre

chang

itted

after

adjust

realiz

report

ing

period

(2)

the

report

ing

period state

(%)

ermin

usable

signifi

cantly

. If so,

please

specif

y the

details

invest ment

ment

(1)

progre

(3)＝

(2)/(1)

Yalong

River

Lianghe

kou

Hydrop

ower

Station

Issuance

specific

objects

Producti

on and

construc

tion

March

180,000

.00

180,000

.00

9,600.0

100.00

18,

289,150

.49

181,200

Yes

2022

Issuance

specific

objects

Repleni

shing

the

working

capital

183,300

.00

183,300

.00

183,054

.90

100.00

Others

70.38

Develop

ment of

oversea

renewab construc

energy

projects

Repaym

ent of

oversea

Producti

on and

$15,516

.02

$15,516

.02

$14,708

.00

Others

95.26%

Yes

tion

$6,300.

100.00

Others

Yes

borrowi

ngs

(III) Change or termination of equity investment during the reporting period

□ Applicable √ Not Applicable

100 / 128

Annual Report 2023

Section VII

I. Changes in share capital

(I) Changes in shares

Changes in Shares and Shareholders

1. Changes in shares

Within the reporting period, no changes occurred in the total shares and capital structure of the

Company.

2. Notes on changes in shares

□ Applicable √ Not Applicable

3. Effect of changes in shares on financial indicators including earnings per share and net

asset per share in recent year and period (if any)

□ Applicable √ Not Applicable

4. Other contents that the Company deems necessary or required by securities regulators

to disclose

□ Applicable √ Not Applicable

(II) Changes in shares with trading limited conditions

□ Applicable √ Not Applicable

II. Securities issuance and listing

(I) Securities issuance as of the reporting period

√ Applicable □ Not Applicable

Currency: RMB

Number

Types of

stocks and their

derivatives

Issue

price (or

interest rate)

of products

approved for

listing and

trading

Date of

issue

Number

issued

Listing

date

Transaction

ending date

Bonds (including enterprise bonds, corporate bonds and debt financing instruments of non-financial

enterprises)

23 Electric

power 03

2023-

10-24

RMB 1

billion

2023-

10-26

RMB 1

billion

2.98%

2.92%

2.68%

3.00%

2026-10-26

2028-08-17

2026-08-17

2026-05-26

23 Electric

power 02

2023-

08-15

RMB 1

billion

2023-

08-17

RMB 1

billion

23 Electric

power 01

2023-

08-15

RMB 1

billion

2023-

08-17

RMB 1

billion

23 Electric

power Y1

2023-

05-24

RMB 500

million

2023-

05-26

RMB

500 million

Notes on securities issuance as of the reporting period (please specify bonds with different

interest rates in duration separately):

□ Applicable √ Not Applicable

(II) Total number of shares of the Company, changes in shareholder structure and the

structure of the Company's assets and liabilities

□ Applicable √ Not Applicable

102 / 128

Annual Report 2023

(III) Existing internal employee stocks

□ Applicable √ Not Applicable

III. Status of shareholders and actual controllers

(I) Total number of shareholders

Total number of ordinary shareholders as of the end

of the reporting period

63,351

62,129

Total number of ordinary shareholders as of the end

of previous month prior to the date of disclosure of

annual report (Nos.)

(II) Shareholding by top 10 shareholders and top 10 tradable shareholders (or

shareholders without trading limited conditions) as of the end of the reporting period

Unit: share

Shares held by the top 10 shareholders (excluding shares lent through refinancing)

Increase

decrease

during

reporting

period

Pledged, marked or

frozen share

Number

Proportion shares held with

Name

shareholder

Shares held at

Nature

shareholder

the the end of the

period

(%)

trading limited

condition

(Full name)

Quantity

status

State

Developmen

State-

0 owned legal

person

3,825,443,0

488,306,45

51.32

13.99

3.48

Investment

Corp., Ltd.

China

Yangtze

Power Co.,

Ltd.

State-

0 owned legal

person

4,708,30

1,042,789,2

Yangtz

Power

State-

0 owned legal

person

259,114,10

Investment

Managemen

t Co., Ltd.

China

Securities

Finance

Corporation

Limited

State-

0 owned legal

person

203,657,91

2.73

1.61

Hong

Kong

Securities

Clearing

Company

Ltd.

86,707,8

119,978,02

Foreign

legal person

Citiban

k, National

Association

Foreign

-7,500

82,419,800

46,212,757

1.11

0.62

legal person

Nationa

11,827,8

Unkno

Social

Security

Fund

106

103 / 128

Annual Report 2023

Portfolio

E Fund

Managemen

t Co., Ltd.-

Social

Security

Fund

Unkno

38,723,700

0.52

0.49

1,985,135

Portfolio

1104

Nationa

Social

Security

Fund

3,095,90

36,200,020

Portfolio

101

China

Construction

Bank-

Environmen

tal

protection-

themed

flexibly

allocated

hybrid

3,431,16

Unkno

33,483,176

0.45

securities

investment

fund of

Fund

Managemen

t Co., Ltd.

Share held by top 10 unrestricted shareholders

Type and quantity of share

Quantity

Name of

shareholder

Quantity of unrestricted

tradable shares held

Type

ordinary

State

Development

Investment Corp.,

Ltd.

RMB

3,337,136,589

1,042,789,214

259,114,108

China

RMB

ordinary

Yangtze

Co., Ltd.

Power

1,042,789,214

259,114,108

Yangtze

Power Investment

Management Co.,

Ltd.

RMB

China

Securities Finance

Corporation

Limited

RMB

ordinary

203,657,917

Hong Kong

Securities

Clearing

RMB

ordinary

119,978,024

82,419,800

119,978,024

82,419,800

Company Ltd.

Citibank,

RMB

104 / 128

Annual Report 2023

National

Association

National

Social

Fund

Portfolio

Security

RMB

ordinary

46,212,757

38,723,700

36,200,020

106

Fund

Management Co.,

Ltd.-Social

Security

RMB

38,723,700

36,200,020

Fund

Portfolio 1104

National

Social

Fund

101

Security

Portfolio

RMB

China

Construction

Bank-

Environmental

protection-themed

flexibly allocated

hybrid securities

investment fund of

RMB

ordinary

33,483,176

Fund

Management Co.,

Ltd.

SDIC, the biggest shareholder of the Company, has no affiliated relation with the rest

nine shareholders, and they are not persons acting in concert as stipulated in the Administrative

Measures of the Takeover of Listed Companies.

Affiliated

relations

actions in concert

of the above

shareholders

China Yangtze Power Co., Ltd. and China Yangtze Power Investment Management Co.,

Ltd. are persons acting in concert;

Affiliated relations among other shareholders are unknown and whether other

shareholders are persons acting in concert specified in the Administrative Measures of the

Takeover of Listed Companies is also unknown.

Share lending of top 10 shareholders participating in refinancing business

√ Applicable □ Not Applicable

Unit: share

Top 10 shareholders participating in refinancing and lending shares

Shareholding of general Shares

account and credit beginning period of account

account at the beginning refinancing and not yet account at the end of refinancing and not

lent

at Shareholding of general Shares lent at the end

and credit of period of

Name of

shareholder

(full name)

of period

returned

period

yet returned

Proportio Quantity

Proportio

n (%)

Proportio Quantity Proportio

Quantity sum

n (%)

sum

n (%)

sum

n (%)

Fund

Manageme

nt Co.,

Ltd.-Social

Security

Fund

40,708,8

291,3

0.00

38,723,7

76,30

0.00

0.55

0.52

Portfolio

1104

105 / 128

Annual Report 2023

Change of top 10 shareholders compared with the previous period

√ Applicable □ Not Applicable

Unit: share

Change of top 10 shareholders compared with previous term

Number of outstanding

shares held in shareholders'

ordinary accounts, credit accounts

and refinancing loans at the end

of the term

Number of shares lent at

the end of period of

refinancing and not yet

returned

Name of

shareholder (full

name)

New/withdrawn

during the reporting

period

Quantity

sum

Proportion

(%)

Quantity

sum

Proportion

(%)

Hong

Securities

Company Ltd.

Kong

Clearing

New

119,978,024

46,212,757

1.61

0.62

National Social

Security Fund 106

Portfolio

Fund

Co.,

Management

New

76,300

0.001

38,800,000

36,200,020

0.52

0.49

Ltd.-Social Security

Fund Portfolio 1104

National Social

Security

Fund

Portfolio 101

China

Construction Bank-

Environmental

protection-themed

flexibly

hybrid

investment fund of E

Fund

Co., Ltd.

allocated

securities

New

33,483,176

0.45

Management

Shanghai

Chongyang Strategic

Investment Co., Ltd. -

Chongyang Strategic

Juzhi Fund

Withdrawn

Shanghai

Chongyang Strategic

Investment Co., Ltd. -

Chongyang Strategic

Huizhi Fund

Withdrawn

Gong Youhua

Shanghai

Chongyang Strategic

Investment Co., Ltd. -

Chongyang Strategic

Caizhi Fund

Shanghai

Chongyang Strategic

Investment Co., Ltd. -

Withdrawn

106 / 128

Annual Report 2023

Chongyang Strategic

Chuangzhi Fund

Notes: Shanghai Chongyang Strategic Investment Co., Ltd. - Chongyang Strategic Juzhi Fund,

Shanghai Chongyang Strategic Investment Co., Ltd. - Chongyang Strategic Huizhi Fund, Gong

Youhua, Shanghai Chongyang Strategic Investment Co., Ltd. - Chongyang Strategic Caizhi Fund,

Shanghai Chongyang Strategic Investment Co., Ltd.- Chongyang Strategic Chuangzhi Fund, the

general account and credit account of the above-mentioned at the end of the period are not among the

top 200.

Number of shares held by top 10 shareholders with trading limited conditions and the trading limited

conditions

√ Applicable □ Not Applicable

Unit: share

Tradable conditions for shares

with restricted conditions

Number of

shares held with

trading limited

condition

Name of

S/N shareholders with trading

limited condition

Restrictions

on sale

Volume of

Time for

listing and

trading

added new

shares for listing

and trading

No transfer

within 36 months

from the date of

State Development &

Investment Corp., Ltd.

December

9, 2024

completing

share registration

procedures

the

488,306,450

(December

2021)

(III) Strategic investors or general legal persons being the top 10 shareholders due to rights

issue

□ Applicable √ Not Applicable

IV. Controlling Shareholders and Actual Controllers

(I) Controlling shareholders

Legal person

√ Applicable □ Not Applicable

Name

State Development & Investment Corp., Ltd.

Fu Gangfeng

Person in charge of the unit or legal

representative

Date of establishment

April 14, 1995

Operate state-owned assets and relevant investment business

within the scope authorized by the State Council; investment and

investment management in fields such as energy, transportation,

fertilizer, high-tech industry, financial services, consulting, guarantee,

trade, biomass energy, eldercare industry, big data, medical treatment

and health, inspection and testing; asset management; economic

information consultation; technology development and technical

service. (The enterprise shall make independent choices of operational

items and carry out business activities in accordance with laws and

regulations. For items subject to approval pursuant to any law, the

business activities shall be carried out upon the approval of relevant

authority within the approved contents. The enterprise shall not be

Main businesses

107 / 128

Annual Report 2023

engaged in the business activities prohibited and restricted by the

municipal industrial policies.)

Actually control and indirectly control 9 other domestic and

overseas listed companies: COMPLANT (000151. SZ), SDIC Capital

(600061. SH), SDIC Zhonglu (600962. SH), Hualian International

(0969. HK), Zhongxing Fruit (5EG), YPP (603013. SH), CHSR

(000008. SZ), SDIC Intelligence (300188. SZ) and Tongyizhong

(688722. SH).

Equity held and participated in other

domestic or foreign listed companies

during the reporting period

Natural person

□ Applicable √ Not Applicable

Special explanations to absence of controlling shareholder

□ Applicable √ Not Applicable

Explanation of changes in controlling shareholders during the reporting period

□ Applicable √ Not Applicable

Block diagram of property rights and control relations between the Company and the

controlling shareholders

√ Applicable □ Not Applicable

State Development & Investment Corp., Ltd.

SDIC Power Holdings Co., Ltd.

(II) Actual controllers

Legal person

√ Applicable □ Not Applicable

Name

the State-owned Assets Supervision and Administration

Commission of the State Council

Natural person

□ Applicable √ Not Applicable

Special explanations of the absence of de actual controller

□ Applicable √ Not Applicable

Explanations of changes in the Company's control during the reporting period

□ Applicable √ Not Applicable

Block diagram of property rights and control relations between the Company and the

actual controllers

√ Applicable □ Not Applicable

108 / 128

Annual Report 2023

the State-owned Assets Supervision and

Administration Commission of the State Council

90%

State Development & Investment Corp., Ltd.

SDIC Power Holdings Co., Ltd.

Actual controllers control the Company by means of a trust or other asset

management methods

□ Applicable √ Not Applicable

(III) Introduction to other information on controlling shareholders and actual controllers

□ Applicable √ Not Applicable

V. The cumulative number of pledged shares of the Company's controlling shareholder or

the largest shareholder and its persons acting in concert accounts for more than 80% of that of

the Company's shares

□ Applicable √ Not Applicable

VI. Other corporate shareholders with at least 10% shares

√ Applicable □ Not Applicable

Unit: Yuan Currency: RMB

Person

Name of in charge of

Date of

establishment

Organization

code

Registered

capital

Main business or

management activities

corporate

the unit or

legal

shareholder

representative

Electric

production, operation

and investment;

technical consultation of

power

China

Yangtze Power

Co., Ltd.

Zhenbo

2002-

11-04

71093040-5

22,741,859,230

electric

power

production;

overhaul

and maintenance of

hydropower projects.

VII. Information on restricted share selling

□ Applicable √ Not Applicable

VIII. Specific implementation of share repurchase in the reporting period

□ Applicable √ Not Applicable

109 / 128

Annual Report 2023

Section VIII Preferred Shares

110 / 128

Annual Report 2023

Section IX Bonds

I. Enterprise bonds, corporate bonds and debt financing instruments of non-financial

enterprises

(I) Enterprise bonds

□ Applicable √ Not Applicable

111 / 128

Annual Report 2023

(II) Corporate bonds

1. Basic information on corporate bonds

Unit: 100 million yuan Currency: RMB

Repayment

principal

and

Investor

Any risk of

listing

termination

Expiration Bond Interest

Transaction adequacy

Transaction

arrangements mechanisms

(if any)

Name of bond

Abbreviation Code

Issue date Value date

date

balance rate (%)

place

interests

The

interest is

paid once a

year and

the

2023 Public Offering

of Corporate Bonds

principal is

returned in

full upon

maturity.

Bidding,

quotation,

professional inquiry and

investors agreement

trading

Electric

power 03

Shanghai

Stock

Exchange

Professional

2023-

10-24

2023-

10-26

2026-

10-26

240132.SH

2.98

Investors by SDIC

Power Holdings Co.,

Ltd. (Tranche 2)

The

last

installment

of interest

paid

together

with

the

principal.

The

interest is

paid once a

year and

the

principal is

returned in

full upon

maturity.

2023 Public Offering

of Corporate Bonds

Bidding,

quotation,

professional inquiry and

Professional

Electric

Shanghai

Stock

Exchange investors

2023-

08-15

2023-

08-17

2028-

08-17

Investors by SDIC

115815.SH

2.92

Power Holdings Co., power 02

Ltd. (Tranche 1)

(Type 2)

agreement

trading

The

last

installment

of interest

112 / 128

Annual Report 2023

paid

together

with

the

principal.

The

interest is

paid once a

year and

the

principal is

returned in

full upon

maturity.

2023 Public Offering

of Corporate Bonds

Bidding,

Professional

Electric

Shanghai

Stock

quotation,

2023-

08-15

2023-

08-17

2026-

Investors by SDIC

115814.SH

2.68

professional inquiry and

08-17

Power Holdings Co., power 01

Ltd. (Tranche 1)

(Type 1)

Exchange investors

agreement

trading

The

last

installment

of interest

paid

together

with

the

principal.

The

interest is

paid once a

year and

the

principal is

returned in

full upon

maturity.

2023 Public Offering

Renewable

Bidding,

Corporate Bonds to

Professional

Investors by SDIC power Y1

Power Holdings Co.,

Electric

Shanghai

Stock

quotation,

2023-

05-24

2023-

05-26

2026-

115410.SH

3.00

professional inquiry and

05-26

Exchange investors

agreement

trading

The

last

installment

of interest

Ltd. (Tranche 1)

paid

together

with

the

principal.

2022-

11-10

2022-

11-14

2027-

2022 Public Offering

of Renewable

Electric

The

Shanghai

Bidding,

138581.SH

3.05

11-14

interest is Stock

professional quotation,

113 / 128

Annual Report 2023

Corporate Bonds to power Y2

Professional

Investors by SDIC

Power Holdings Co.,

Ltd. (Tranche 1)

(Type 2)

paid once a Exchange investors

year and

the

principal is

returned in

full upon

maturity.

inquiry and

agreement

trading

The

last

installment

of interest

paid

together

with

the

principal.

The

interest is

paid once a

year and

the

principal is

returned in

full upon

maturity.

2021 Public Offering

Renewable

Bidding,

Corporate Bonds to

Professional

Investors by SDIC power Y3

Power Holdings Co.,

Electric

Shanghai

Stock

quotation,

2021-

11-09

2021-

11-11

2024-

188968.SH

3.24

professional inquiry and

11-11

Exchange investors

agreement

trading

The

last

installment

of interest

Ltd. (Tranche 3)

paid

together

with

the

principal.

The

2021 Public Offering

interest is

paid once a

year and

the

principal is

returned in

full upon

Renewable

Bidding,

quotation,

professional inquiry and

Corporate Bonds to

Professional

Investors by SDIC power Y2

Power Holdings Co.,

Electric

Shanghai

Stock

Exchange investors

2021-

08-20

2021-

08-24

2024-

188633.SH

3.18

08-24

agreement

trading

Ltd. (Tranche 2)

114 / 128

Annual Report 2023

maturity.

The

last

installment

of interest

paid

together

with

the

principal.

The

interest is

paid once a

year and

the

principal is

returned in

full upon

maturity.

2021 Public Offering

of Renewable

Corporate Bonds to

Eligible Investors by

Bidding,

Electric

Shanghai

Stock

Exchange investors

eligible

quotation,

inquiry and

agreement

trading

2021-

08-06

2021-

08-10

2024-

188504.SH

3.14

08-10

SDIC

Power power Y1

The

last

Holdings Co., Ltd.

(Tranche 1)

installment

of interest

paid

together

with

the

principal.

The

interest is

paid once a

year and

the

principal is

returned in

full upon

maturity.

2021 Public Offering

of Corporate Bonds

to Eligible Investors

by SDIC Power SDIC Power

Holdings Co., Ltd.

(Tranche 1)

Bidding,

Shanghai

Stock

Exchange investors

eligible

quotation,

inquiry and

agreement

trading

2021-

04-14

2021-

04-16

2026-

175985.SH

3.70

04-16

The

last

installment

of interest

paid

together

115 / 128

Annual Report 2023

Measures of the Company to deal with the risk of bond listing termination

□ Applicable √ Not Applicable

Bonds overdue

□ Applicable √ Not Applicable

Payment of bond interest during the reporting period

√ Applicable □ Not Applicable

Name of Bond

Description of interest payment cashing

On November 7, 2023, the Company issued the Announcement on the 2023 Interest Payment of the 2022 Public Offering of

2022 Public Offering of Renewable

Corporate Bonds to Professional Investors Renewable Corporate Bonds to Professional Investors by SDIC Power Holdings Co., Ltd. (Tranche 1) (Type 2). The registration

by SDIC Power Holdings Co., Ltd. date of the bonds is November 13, 2023 and the interest payment date of the bonds is November 14, 2023. The interest payment

(Tranche 1) (Type 2)

for this tranche of bonds has been completed on November 14, 2023.

2021 Public Offering of Renewable

On November 6, 2023, the Company issued the Announcement on the 2021 Interest Payment of the 2023 Public Offering of

Corporate Bonds to Professional Investors Renewable Corporate Bonds to Professional Investors by SDIC Power Holdings Co., Ltd. (Tranche 3). The registration date of

by SDIC Power Holdings Co., Ltd. the bonds is November 10, 2023 and the interest payment date of the bonds is November 13, 2023. The interest payment for this

(Tranche 3)

tranche of bonds has been completed on November 13, 2023.

2021 Public Offering of Renewable

On August 17, 2023, the Company issued the Announcement on the 2023 Interest Payment of the 2021 Public Offering of

Corporate Bonds to Professional Investors Renewable Corporate Bonds to Professional Investors by SDIC Power Holdings Co., Ltd. (Tranche 2). The registration date of

by SDIC Power Holdings Co., Ltd. the bonds is August 23, 2023 and the interest payment date of the bonds is August 24, 2023. The interest payment for this tranche

(Tranche 2)

of bonds has been completed on August 24, 2023.

2021 Public Offering of Renewable

On August 3, 2023, the Company issued the Announcement on the 2023 Interest Payment of the 2021 Public Offering of

Corporate Bonds to Eligible Investors by Renewable Corporate Bonds to Eligible Investors by SDIC Power Holdings Co., Ltd. (Tranche 1). The registration date of the

SDIC Power Holdings Co., Ltd. (Tranche bonds is August 9, 2023 and the interest payment date of the bonds is August 10, 2023. The interest payment for this tranche of

bonds has been completed on August 10, 2023.

2019 Public Offering of Corporate

On June 5, 2023, the Company issued the Announcement on the 2023 Interest Payment of the 2019 Public Offering of

Bonds to Eligible Investors by SDIC Corporate Bonds to Eligible Investors by SDIC Power Holdings Co., Ltd. (Tranche 1). The registration date of the bonds is June

Power Holdings Co., Ltd. (Tranche 1)

9, 2023 and the interest payment date of the bonds is June 12, 2023. The interest payment for this tranche of bonds has been

completed on June 12, 2023.

2021 Corporate Bonds Publicly

On April 10, 2023, the Company issued the Announcement on the 2023 Interest Payment of the 2021 Public Offering of

Issued to Accredited Investors by SDIC Corporate Bonds to Eligible Investors by SDIC Power Holdings Co., Ltd. (Tranche 1). The registration date of the bonds is April

Power Holdings Co., Ltd. (Tranche 1)

14, 2023 and the interest payment date of the bonds is April 17, 2023. The interest payment for this tranche of bonds has been

completed on April 17, 2023.

117 / 128

Annual Report 2023

2. Trigger and execution of issuer or investor option clauses and investor protection clauses

□ Applicable √ Not Applicable

3. Intermediaries providing services for bond issuance and duration business

Names of the signing

Name of intermediary

Office address

Contact

Zhou Weifan

Contact number

010-60833034

accountants

CITIC Securities Co., Ltd.

CITIC Securities Building, 48

Liangmaqiao Road, Chaoyang District,

Beijing Municipality

SDIC Securities Co., Ltd.

China Securities Co., Ltd.

11/F, SDIC Financial Building,

No. 2 Fuchengmen North Street,

Xicheng District, Beijing

Li Shan, Jiang Yunsheng, Ma

Chuang, Hu Zhuang

010-83321547

010-86451945

010-65051166

010-57763888

010-66578066

2/F, Block B, Kaiheng Center, No.

2 Chaonei Street, Dongcheng District,

Beijing

He Fei, Li Zhenguo, Liang

Haowei, Lu Yuhong

China

International

Capital

27/F and 28/F, Building 2, China

World Tower, No. 1, Jianguomenwai

Avenue, Chaoyang District, Beijing

Li Tianwan, Zhou Mengyu,

Zhang Chong, Qiu Suofu, Guo

Miaomiao, Jin Kailin, Lin lechen

Corporation Limited

Beijing Tianyuan Law Firm

Beijing Guantao Law Firm

10/F, China Pacific Insurance

Plaza, No. 28, Fengsheng Hutong,

Xicheng District, Beijing, China

Chen Sheng, Zhou Qian

19/F, Tower B, Xinsheng Plaza,

No. 5, Finance Street, Xicheng District,

Beijing

Zhang Wenliang, Sun Yawei

BDO China Shu Lun Pan CPAs

(Special General Partnership)

4/F, No. 61 Nanjing East Road,

Huangpu District, Shanghai

Zhao

Bin,

Wang

Zhao Bin, Wang Tianping, Pei

Zhichao

010-56730013

010-65542288

Tianping, Pei Zhichao

ShineWing

Certified

Public

8/F, Tower A, Fuhua Building, No.

Ma Chuanjun, Qiu Xin

Wang Ji

Accountants LLP (Special General 8

North

Chaoyangmen

Street,

Partnership)

Dongcheng District, Beijing

China Chengxin International

Credit Rating Co., Ltd.

Building 5, Galaxy SOHO5, No. 2

Nanzhugan Hutong, Chaoyangmennei

Street, Dongcheng District, Beijing

Zheng Sizhuo, Sheng Lei

Jiang Bo, Li Chong

010-66428877

010-68030348

Industrial and Commercial Bank

Building 5, Compound 1, Yuetan

of China Limited Beijing Nanlishilu South Street, Xicheng District, Beijing

118 / 128

Annual Report 2023

Subbranch

Bank of China Beijing Xicheng

Bub-branch

No. 5, Fuchengmenwai Street,

Xicheng District, Beijing

Guo Chaohui, Chen Danyang

010-68001587

Changes in the above intermediaries

□ Applicable √ Not Applicable

4. Use of raised funds at the end of the reporting period

√ Applicable □ Not Applicable

Unit: 100 million yuan Currency: RMB

Consistent with

Rectification

Operations of

the purpose, use plan

Total amount

Name of bond

Amount the special account of irregular use

unused for funds raised (if of raised funds (if

Used amount

and other agreements

promised in the

of raised funds

any)

prospectus or not

2023 Public Offering of Corporate Bonds to

Professional Investors by SDIC Power Holdings

Co., Ltd. (Tranche 2)

10.00

5.00

10.00

5.00

Normal

None

Yes

2023 Public Offering of Corporate Bonds to

Professional Investors by SDIC Power Holdings

Co., Ltd. (Tranche 1) (Type 2)

Normal

None

2023 Public Offering of Corporate Bonds to

Professional Investors by SDIC Power Holdings

Co., Ltd. (Tranche 1) (Type 1)

2023 Public Offering of Renewable

Corporate Bonds to Professional Investors by

SDIC Power Holdings Co., Ltd. (Tranche 1)

2022 Public Offering of Renewable

Corporate Bonds to Professional Investors by

SDIC Power Holdings Co., Ltd. (Tranche 1)

(Type 2)

12.00

10.00

12.00

Normal

None

Yes

2021 Public Offering of Renewable

Corporate Bonds to Professional Investors by

SDIC Power Holdings Co., Ltd. (Tranche 3)

10.00

119 / 128

Annual Report 2023

10.00

2021 Public Offering of Renewable

Corporate Bonds to Professional Investors by

SDIC Power Holdings Co., Ltd. (Tranche 2)

10.00

20.00

6.00

Normal

None

Yes

2021 Public Offering of Renewable

Corporate Bonds to Eligible Investors by SDIC

Power Holdings Co., Ltd. (Tranche 1)

20.00

6.00

2021 Public Offering of Corporate Bonds to

Eligible Investors by SDIC Power Holdings Co.,

Ltd. (Tranche 1)

2019 Public Offering of Corporate Bonds to

Eligible Investors by SDIC Power Holdings Co.,

Ltd. (Tranche 1)

12.00

Progress and operational benefits of raised funds used for construction projects

□ Applicable √ Not Applicable

Explanation on changing the use of the above-mentioned bonds raised during the reporting period

□ Applicable √ Not Applicable

Other descriptions

□ Applicable √ Not Applicable

5. Adjustment of credit rating results

□ Applicable √ Not Applicable

Other descriptions

□ Applicable √ Not Applicable

6. Execution and change of guarantee, debt repayment plans and other debt repayment protection measures during the reporting period

and their effect

□ Applicable √ Not Applicable

7. Other information on corporate bonds

√ Applicable □ Not Applicable

On December 28, 2022, the Company held a meeting of bondholders, at which it reviewed and approved the Proposal on Adjustment of Certain

120 / 128

Annual Report 2023

Terms of the Prospectus for 2021 Public Offering of Renewable Corporate Bonds to Eligible Investors by SDIC Power Holdings Co., Ltd. (Tranche 1),

and revised some terms of the Prospectus for "21 Power Y1".

On January 6, 2023, the Company held a meeting of bondholders, at which it considered and approved the Proposal on Adjustment of Certain

Provisions of the Prospectus for the 2021 Public Offering of Renewable Corporate Bonds to Professional Investors by SDIC Power Holdings Co., Ltd.

(Tranche 2), the Proposal on Adjustment of Certain Provisions of the Prospectus for 2021 Public Offering of Renewable Corporate Bonds to Professional

Investors by SDIC Power Holdings Co., Ltd. (Tranche 3), and the Proposal on Adjustment of Certain Provisions of the Prospectus for 2020 Public

Offering of Renewable Corporate Bonds to Professional Investors by SDIC Power Holdings Co., Ltd. (Tranche 1), amending "21 Power Y2", "21 Power

Y3" and "20 Power Y3".

(III) Debt financing instruments of non-financial enterprises in interbank bond market

√ Applicable □ Not Applicable

1. Basic information on debt financing instruments of non-financial enterprises

Unit: 100 million yuan Currency: RMB

Adequacy

Trading arrangement

Risk of

termination

of listing

Debt

service

mode

Name of

bond

Value

date

Expiry

date

Maturity

date

Interest

rate (%)

Trading

Abbreviation

Code

Issue date

place

by investors mechanism

(if any)

The

interest

shall be

paid

annually,

the

2021

Medium-

term

Notes of

(Tranche Power

1) SDIC

Power

principal

shall be

repaid in

Bidding,

quotation,

inquiry,

and agreed

Inter-

bank

bond

21 SDIC

2021-7-

2021-07- 2024-07-

14 14

To eligible

investors

102101280

3.17 full at

MTN001

maturity,

and the

last

interest

shall be

paid

market

transactions

Holdings

Co., Ltd.

together

with the

principal.

121 / 128

Annual Report 2023

Measures of the Company to deal with the risk of bond listing termination

□ Applicable √ Not Applicable

Bonds overdue

□ Applicable √ Not Applicable

Payment of bond interest during the reporting period

√ Applicable □ Not Applicable

Name of bond

Description of interest payment

2021 Medium-term Notes of (Tranche 1) The Company released the Announcement on Arrangement of Interest Payment of 2021 Medium-term Notes of (Tranche 1)

SDIC Power Holdings Co., Ltd.

SDIC Power Holdings Co., Ltd. on July 05, 2023 on July 05, 2023. The interest payment date was July 14, 2023. The said

interest payment work had been completed.

2022 Medium-term Notes of (Tranche 1) The Company released the Announcement on Arrangement of Interest Payment of 2022 Medium-term Notes of (Tranche 1)

SDIC Power Holdings Co., Ltd.

SDIC Power Holdings Co., Ltd.on October 20, 2023. The interest payment date was October 31, 2023. The said interset

payment work had been completed.

2022 Medium-term Notes of (Tranche 2) The Company released the Announcement on Arrangement of Interest Payment of 2022 Medium-term Notes of (Tranche 2)

SDIC Power Holdings Co., Ltd.

SDIC Power Holdings Co., Ltd. on October 20, 2023. The interest payment date was October 31, 2023. The said interest

payment work had been completed.

2. Trigger and implementation of issuer or investor option clauses and investor protection clauses

□ Applicable √ Not Applicable

3. Intermediaries providing services for bond issuance and duration business

Names of

Name of intermediary

Office address

the signing

accountants

Contact

Contact number

No.55, Fuxingmennei Dajie, Xicheng District,

ICBC Limited

You Zicheng

Wang

010-66107271

010-85106292

Beijing

No. 69, Jianguomen Neidajie Street, Dongcheng

District, Beijing

No. 2016, Shennan Avenue, Futian District,

Shenzhen

Agricultural Bank of China Co., Ltd.

Bingshan

China Merchants Bank Co., Ltd.

Industrial Bank Co., Ltd.

Zhang Wei

0755-89278573

010-59886856

11/F, Industrial Bank, No. 20, Chaoyangmen North

Fu Qiunan,

123 / 128

Annual Report 2023

Street, Chaoyang District, Beijing

Yao Yinuo

Zhao Bin,

Wang Tianping,

Pei Zhichao

BDO China Shu Lun Pan CPAs (Special

General Partnership)

4/F, No. 61, Nanjing Road East, Huangpu District,

Shanghai

Yan Baorui

13311092737

Chuanjun,

Xin

ShineWing Certified Public Accountants

LLP (Special General Partnership)

Block A, Fuhua Mansion, No. 8 Chaoyangmen

North Street, Dongcheng District, Beijing

Qiu

Qiu Xin

010-65542288

010-66578066

010-67413300

18/F, Tower B, Xinsheng Plaza, No. 5, Finance

Street, Xicheng District, Beijing

Beijing Guantao Law Firm

Tan Weihong

Wang Peng

3/F, Tower A, China Foreign Language Mansion,

No.89, West Third Ring Road North, Haidian District,

Beijing

Dagong Global Credit Rating Co., Ltd.

Changes in the above intermediaries

□ Applicable √ Not Applicable

4. Use of raised funds at the end of the reporting period

√ Applicable □ Not Applicable

Unit: 100 million yuan Currency: RMB

Compliance with

with the committed

usage, usage plan and

irregular use of raised

other agreement of

Operation of the

special account for

raised funds (if any)

Rectification of

Total amount of

raised funds

Name of bond

Amount spent

Amount unspent

funds (if any)

fundraising

instructions

2021 Medium-term

Notes of (Tranche 1)

SDIC Power

Normal

None

Yes

Holdings Co., Ltd.

2022 Medium-term

Notes of (Tranche 1)

SDIC Power

Holdings Co., Ltd.

2022 Medium-term

Notes of (Tranche 2)

Normal

None

Yes

124 / 128

Annual Report 2023

Progress and operational benefits of raised funds used for construction projects

□ Applicable √ Not Applicable

Explanation on changing the use of the above-mentioned bonds raised during the reporting

period

□ Applicable √ Not Applicable

Other descriptions

□ Applicable √ Not Applicable

5. Adjustment of credit rating results

□ Applicable √ Not Applicable

Other descriptions

□ Applicable √ Not Applicable

6. Execution and change of guarantee, debt repayment plans and other debt repayment

protection measures during the reporting period and their effect

□ Applicable √ Not Applicable

7. Other information on debt financing instruments of non-financial enterprises

□ Applicable √ Not Applicable

(IV) Loss within the scope of the Consolidated Financial Statements during the reporting

period of the Company exceeding 10% of the net assets at the end of last year

□ Applicable √ Not Applicable

(V) Overdue situation of interest-bearing debts other than bonds at the end of the reporting

period

□ Applicable √ Not Applicable

(VI) The impact on the interests of bond investors caused by violations of laws and

regulations, the Articles of Association, and the provisions of the information disclosure

management system, as well as the circumstances agreed or promised in the bond prospectus

during the reporting period

□ Applicable √ Not Applicable

(VII) Accounting data and financial indicators of the Company for recent 2 years as of the

end of reporting period

√ Applicable □ Not Applicable

Unit: Yuan

Currency: RMB

Increase

decrease in the

current period over

last year (%)

Main indicator

2023

2022

Reasons

Net profit

attributed to

For this year, the coal

price dropped down,

resulting in the

reduction in costs of the

thermal power

enterprises and the

increase of their year-

on-year profits.

shareholders of

listed company

after deducting

non-recurring

gain or loss

6,589,378,541.36

0.63

3,951,411,775.93

66.76

21.15

Liquidity ratio

0.52

126 / 128

Annual Report 2023

Quick ratio

Asset-liability

ratio (%)

EBITDA-total

debts ratio

0.60

0.49

22.45

Decrease by 0.57

percentage points

Increase by 1.61 p

ercentage points

63.18%

63.75%

14.43%

16.04%

For this year, the coal

price dropped down,

resulting in the

Times

earned

interest

reduction in costs of the

thermal power

3.72

2.68

38.81

enterprises and the

increase of their year-

on-year profits.

Times of cash

interest earned

EBITDA interest

protection

5.67

5.75

5.39

4.53

5.19

26.93

multiples

Loan repayment

rate (%)

Interest coverage

rate (%)

100

II. Convertible corporate bonds

□ Applicable√ Not Applicable

127 / 128

Annual Report 2023

Section X Financial Reports

For the Consolidated Financial Statements together with Independent Auditor’s Report for the year

ended 31 December 2023, please refer to the attached pages.

128 / 128

SDIC Power Holdings Co., Ltd.

Auditor’s Report and Financial

Statements

For the Year Ended December 31, 2023

SDIC Power Holdings Co., Ltd.

Independent Auditor’s Report and Financial Statements

(From January 1, 2023 to December 31, 2023)

Contents

Page

Independent Auditor’s Report

1-6

II.

Financial Statement

Consolidated and Company’s Balance Sheets

Consolidated and Company’s Income Statements

Consolidated and Company’s Cash Flow Statements

1-4

5-6

7-8

Consolidated and Company’s Statements of Changes

in Shareholders' Equity

9-12

Notes to Financial Statement

1-265

Independent Auditor's Report

XIN KUAI SHI BAO ZI [2024] No.ZG11573

To the Shareholders of SDIC Power Holdings Co., Ltd.

Opinion

We have audited the accompanying financial statements of SDIC Power Holdings Co., Ltd

(“the Company”) and its subsidiaries (“the Group"), which comprise the consolidated and

company’s balance sheets as at December 31, 2023, the consolidated and company’s income

statements, the consolidated and company’s statements of cash flows, and the consolidated

and company’s statements of changes in shareholders’ equity for the year then ended, and

notes to the financial statements.

In our opinion, the accompanying financial statements present fairly, in all material respects,

the consolidated and company’s financial position as at December 31, 2023 and the

consolidated and company’s financial performance and cash flows for the year then ended in

accordance with the requirements of Accounting Standards for Business Enterprises.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (“ISAs”).

Our responsibilities under those standards are further described in the Auditor’s

Responsibilities for the Audit of the Financial Statements section of our report. We are

independent of the Group and Company in accordance with the International Code of Ethics

for Professional Accountants (including International Independence Standards) issued by the

International Ethics Standards Board for Accountants (the “IESBA Code”), and we have

fulfilled our other ethical responsibilities in accordance with the IESBA Code. We believe

that the audit evidence we have obtained is sufficient and appropriate to provide a basis for

our opinion.

Key Audit Matter

Key audit matters are those matters that, in our professional judgment, were of most

significance in our audit of the financial statements of the current period. These matters were

addressed in the context of our audit of the financial statements as a whole, and in forming

our opinion thereon, and we do not provide a separate opinion on these matters.

Auditor’s Report Page1

We identified the following key audit matter in our audit:

Key Audit Matter

How the scope of our audit addressed

the key audit matter

Impairment of long-term assets in relation to the electricity generation business

(1) We obtained an understanding of

As mentioned in Note V. (15) and (16) to the

consolidated financial statements, as at December 31,

2023, the Group recognised a carrying amount of

198,111.22 million Yuan for fixed assets and

17,298.21 million Yuan for assets under construction

and these two long-term assets accounted for 77.66%

of consolidated total assets, as a result of which they

are material to the financial statements. Judgment is

involved both to whether a long-term asset has any

impairment indicators, and to determine the

recoverable amount of these assets based on the

present value of the future cash flows associated with

it(or with the group of assets to which it relates). This

is a significant and complex judgment on the behalf

of management, which involves a high degree of

estimation. As a result of this, we determined the

impairment of the long-term asset in relation to the

electricity generation business, including fixed assets

and construction in progress as key audit matter.

the design and implementation of

direct controls over management’s

impairment testing, and in addition

tested the operating effectiveness of

these controls.

(2) We corroborated key input data

and

assumptions

made

management in its impairment review

through comparison with actual

operational

data

including

consideration of the completeness of

the data on which the review was

based. We also obtained an

understanding

management

judgments and confirmed whether

they were in line with accounting

requirements.

(3) We recalculated the recoverable

amount of the assets and compared

with management’s calculation.

(4) We corroborated the key

assumptions and parameters adopted

by management for the forecast of

future cash flows associated with the

assets. We obtained an understanding

of management’s ability to forecast

by comparing management’s past

forecasts with the actual figures that

they related to.

(5) We evaluated the accounting

policy,

judgments and estimates of asset

impairment in the financial

statements, and the presentation and

significant

accounting

Auditor’s Report Page2

disclosure of relevant information

(6) We paid site visit to check status

of relevant fixed asset and

construction in progress, and to

understand whether the asset is lag in

technology or not used for long, and

consider whether the suspended and

obsolescent

engineering

has

impairment or scrap based on

engineering settlement

Other Information

Management of the Group (“management”) is responsible for the other information. The

other information comprises all of the information included in the 2023 annual report of the

Group, other than the financial statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we do not

express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other

information and, in doing so, consider whether the other information is materially

inconsistent with the financial statements or our knowledge obtained in the audit or otherwise

appears to be materially misstated.

Auditor’s Report Page3

If, based on the work we have performed, we conclude that there is a material misstatement

of the other information, we are required to report that fact. We have nothing to report in this

regard.

Responsibilities of Management and Those Charged with Governance for the Financial

Statements

Management is responsible for the preparation and fair presentation of the financial

statements in accordance with the requirements of Accounting Standards for Business

Enterprises, and for such internal control as management determines is necessary to enable

the preparation of financial statements that are free from material misstatement, whether due

to fraud or error.

In preparing the financial statements, management is responsible for assessing the Group and

Company’s ability to continue as a going concern, disclosing, if applicable, matters related to

going concern and using the going concern basis of accounting unless management either

intends to liquidate the Group and Company or to cease operations, or has no realistic

alternative but to do so.

Those charged with governance are responsible for overseeing the Group and Company’s

financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a

whole are free from material misstatement, whether due to fraud or error, and to issue an

auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,

but is not a guarantee that an audit conducted in accordance with ISAs will always detect a

material misstatement when it exists. Misstatements can arise from fraud or error and are

considered material if, individually or in aggregate, they could reasonably be expected to

influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain

professional skepticism throughout the audit. We also:

(1) Identify and assess the risks of material misstatement of the financial statements,

Auditor’s Report Page4

whether due to fraud or error, design and perform audit procedures responsive to those risks,

and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.

The risk of not detecting a material misstatement resulting from fraud is higher than for one

resulting from error, as fraud may involve collusion, forgery, intentional omissions,

misrepresentations, or the override of internal control.

(2) Obtain an understanding of internal control relevant to the audit in order to design audit

procedures that are appropriate in the circumstances, but not for the purpose of expressing an

opinion on the effectiveness of the Group and Company’s internal control.

(3) Evaluate the appropriateness of accounting policies used and the reasonableness of

accounting estimates and related disclosures made by management.

(4) Conclude on the appropriateness of management’s use of the going concern basis of

accounting and, based on the audit evidence obtained, whether a material uncertainty exists

related to events or conditions that may cast significant doubt on the Group and Company’s

ability to continue as a going concern. If we conclude that a material uncertainty exists, we

are required to draw attention in our auditor’s report to the related disclosures in the financial

statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are

based on the audit evidence obtained up to the date of our auditor’s report. However, future

events or conditions may cause the Group and Company to cease to continue as a going

concern.

(5) Evaluate the overall presentation, structure, and contents of the financial statements,

including the disclosures, and whether the financial statements represent the underlying

transactions and events in a manner that achieves fair presentation.

(6) Obtain sufficient appropriate audit evidence regarding the financial information of the

entities or business activities within the Group to express an opinion on the consolidated

financial statements. We are responsible for the direction, supervision and performance of the

group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the

planned scope and timing of the audit and significant audit findings, including any significant

deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with

relevant ethical requirements regarding independence and to communicate with them all

relationships and other matters that may reasonably be thought to bear on our independence

and, where applicable, related safeguards.

Auditor’s Report Page5

Consolidated Balance Sheet

December 31,2023

Prepared by: SDIC Power Holdings Co., Ltd.

Unit: RMB

Item

Note

December 31,2023

11,358,005,093.47

December 31,2022

Current assets:

Monetary fund

V. (I)

11,638,780,970.46

Settlement reserves

Loans to bank and other financial institutions

Financial assets held for trading

Derivative financial assets

Notes receivable

V. (II)

V. (III)

V. (IV)

V(V)

138,419,158.50

60,739,049.26

131,151,803.40

77,790,465.98

44,062,537.46

8,971,517,786.07

98,893,922.83

186,787,695.81

7,204,974.86

Accounts receivable

14,033,136,252.79

Receivables financing

V. (VI)

V. (VII)

Advances to suppliers

304,765,057.14

Premiums receivable

Reinsurance premium receivable

Reinsurance contract provision receivable

Other receivables

V. (VIII)

V. (IX)

899,490,994.15

699,509,981.74

Financial assets purchased under agreements

to resell

Inventories

1,296,496,367.94

1,217,472,605.40

Contractual assets

Assets held for sale

Current portion of non-current assets

Other current assets

V.(X)

674,848,082.64

255,798,428.32

Total current assets

Non-current assets:

Offering loans and advances in cash

Debt investment

28,773,105,030.75

23,321,766,197.47

Other debt investment

Long-term receivables

Long-term equity investments

Investment in other equity instruments

Other non-current financial assets

Investment properties

Fixed assets

V. (XI)

V. (XII)

V. (XIII)

7,155,172,479.30

10,141,575,279.16

253,528,231.18

4,955,753,141.51

9,760,470,905.45

277,677,276.23

V. (XIV)

V. (XV)

V. (XVI)

107,783,999.19

198,111,219,600.76

17,298,211,260.83

115,440,759.56

194,485,222,141.09

12,333,411,257.55

Projects under construction

Bearer biological assets

Oil and gas assets

Right-of-use assets

V. (XVII)

V. (XVIII)

V. (XIX)

V. (XX)

1,186,192,604.70

6,116,195,397.07

163,915.09

676,747,771.25

5,665,249,840.13

12,662,022.14

Intangible assets

Development expenditures

Goodwill

146,292,117.53

108,253,630.99

Long-term prepaid expenses

Deferred income tax assets

Other non-current assets

Total non-current assets

Total assets

V. (XXI)

V. (XXII)

V. (XXIII)

116,472,600.57

141,554,284.68

1,040,561,531.93

6,916,547,028.26

248,589,916,045.57

277,363,021,076.32

1,055,347,099.07

5,389,962,051.42

234,977,752,181.07

258,299,518,378.54

Legal Representative:

Chief Financial Officer:

Director of Accounting Department:

Financial statement Page 1

Consolidated Balance Sheet (Cont’d)

December 31,2023

Prepared by: SDIC Power Holdings Co., Ltd.

Unit: RMB

Item

Note

December 31,2023

9,412,127,723.77

December 31,2022

Current liabilities:

Short-term borrowings

V. (XXV)

11,298,824,403.10

Borrowings from central bank

Placements from bank and other financial institutions

Financial liabilities held for trading

Derivative financial liabilities

Notes payable

V. (XXVI)

V. (XXVII)

V. (XXVIII)

V. (XXIX)

1,123,317,749.75

5,294,950,957.69

5,815,676.05

460,532,777.04

4,087,055,216.02

5,052,769.73

Accounts payable

Advances form customers

Contractual liabilities

7,987,340.42

3,838,526.48

Financial assets sold under agreements to repurchase

Customer bank deposits and due to banks and other

financial institutions

Customer brokerage deposits

Securities underwriting brokerage deposits

Employee benefits payable

Taxes payable

V. (XXX)

V. (XXXI)

V. (XXXII)

206,447,038.10

1,316,221,394.05

16,049,482,453.77

146,331,074.86

1,345,838,878.87

16,964,952,414.46

Other payables

Fees and commissions payable

Reinsurance amounts payable

Liabilities held for sale

Non-current liabilities due within one year

Other current liabilities

V. (XXXIII)

V. (XXXIV)

12,394,106,853.32

815,728.82

10,449,495,439.90

203,744.15

Total current liabilities

Non-current liabilities:

Insurance contract reserves

Long-term borrowings

45,811,272,915.74

44,762,125,244.61

V. (XXXV)

V. (XXXVI)

113,672,147,814.97

11,958,214,717.65

106,364,045,546.78

10,989,238,521.17

Bonds payable

Including: preferred shares

Perpetual bonds

Lease liabilities

V. (XXXVII)

V. (XXXVIII)

V. (XXXIX)

V. (XL)

828,370,922.62

1,046,184,098.06

489,091,244.74

48,515,308.38

465,732,891.83

338,223,870.47

486,187,869.48

23,096,668.02

Long-term payables

Long-term payroll payables

Estimated liabilities

Deferred incomes

V. (XLI)

137,987,736.64

645,752,014.78

608,124,104.39

129,434,387,962.23

175,245,660,877.97

153,170,943.78

523,426,604.61

572,943,372.18

119,916,066,288.32

164,678,191,532.93

Deferred income tax liabilities

Other non-current liabilities

Total non-current liabilities

Total liabilities

V. (XXII)

V. (XLII)

Shareholder's equity:

Share capital

V. (XLIII)

V. (XLIV)

7,454,179,797.00

5,698,915,094.35

7,454,179,797.00

5,699,115,566.05

Other equity instruments

Including: preferred shares

Perpetual bonds

5,698,915,094.35

10,969,286,184.88

5,699,115,566.05

10,948,392,103.57

Capital reserve

V. (XLV)

Less: treasury stocks

Other comprehensive income

Special reserves

V. (XLVI)

V. (XLVII)

V. (XLVIII)

439,469,598.41

106,287,031.23

3,447,373,397.89

485,511,565.13

23,951,234.01

Surplus reserves

3,085,238,716.45

General risk reserves

Retained earnings

V. (XLIX)

30,951,017,846.73

59,066,528,950.49

26,818,018,726.07

54,514,407,708.28

Total Shareholders' equity attributable to the

company

Minority shareholder's interests

Total Shareholders' equity

Total of liabilities and Shareholders' equity

43,050,831,247.86

102,117,360,198.35

277,363,021,076.32

39,106,919,137.33

93,621,326,845.61

258,299,518,378.54

Legal Representative:

Chief Financial Officer:

Director of Accounting Department:

Financial statement Page 2

Company’s Balance Sheet

December 31,2023

Prepared by: SDIC Power Holdings Co., Ltd.

Unit: RMB

Item

Note

December 31,2023

December 31,2022

Current assets:

Monetary fund

2,969,271,671.93

16,364,308.50

2,538,260,115.67

17,831,453.40

Financial assets held for trading

Derivative financial assets

Notes receivable

Accounts receivable

Receivables financing

Advance to suppliers

Other receivables

556,074.56

568,836.75

XV.(I)

553,611,902.42

479,394,210.96

Inventories

Contractual assets

Assets held for sale

Current portion of non-current assets

Other current assets

3,512,835.43

1,222,226.32

Total current assets

Non-current assets:

Debt investment

3,543,316,792.84

3,037,276,843.10

Other debt investment

Long-term receivables

Long-term equity investments

Investment in other equity instruments

Other non-current financial assets

Investment properties

Fixed assets

2,001,344,444.45

50,519,612,300.54

300,402,541.09

2,001,344,444.45

46,512,405,773.01

322,064,711.14

XV.(II)

2,283,222.66

176,415.09

3,227,485.23

Projects under construction

Bearer biological assets

Oil and gas assets

Right-of-use assets

1,967,642.64

3,311,518.08

15,537,579.57

2,538,356.63

Intangible assets

Development expenditures

Goodwill

Long-term prepaid expenses

Deferred income tax assets

Other non-current assets

Total non-current assets

Total assets

663,659.69

171,882,600.00

53,001,644,344.24

56,544,961,137.08

252,949,906.42

49,110,068,256.45

52,147,345,099.55

Legal Representative:

Chief Financial Officer:

Director of Accounting Department:

Financial statement Page 3

Company’s Balance Sheet (Cont’d)

December 31,2023

Prepared by: SDIC Power Holdings Co., Ltd.

Unit: RMB

Item

Note

December 31,2023

December 31,2022

Current liabilities:

Short-term borrowings

Financial liabilities held for trading

Derivative financial liabilities

Notes payable

Accounts payable

182,792.88

363,443.57

Advances form customers

Contractual liabilities

Employee benefits payable

Taxes payables

7,358,971.51

3,240,590.09

5,828,880.01

1,935,144.20

Other payables

130,742,970.33

127,126,171.38

Liabilities held for sale

Current portion of non-current liabilities

Other current liabilities

Total current liabilities

Non-current liabilities:

Long-term borrowings

Bonds payable

1,016,898,056.54

76,100.63

13,509,420.68

76,100.63

1,158,499,481.98

148,839,160.47

6,875,878,553.25

34,526,455.52

4,863,651,945.71

Including: preferred shares

Perpetual bonds

Lease liabilities

2,427,239.90

34,726,710.15

Long-term payables

Long-term payroll payable

Estimated liabilities

Deferred incomes

Deferred income tax liabilities

Other non-current liabilities

Total non-current liabilities

Total liabilities

6,910,405,008.77

8,068,904,490.75

4,900,805,895.76

5,049,645,056.23

Shareholders' equity:

Capital stock

7,454,179,797.00

5,698,915,094.35

7,454,179,797.00

5,699,115,566.05

Other equity instruments

Including: preferred shares

Perpetual bonds

5,698,915,094.35

14,332,724,902.97

5,699,115,566.05

14,325,127,753.66

Capital reserve

Less: treasury stocks

Other comprehensive income

Special reserves

-108,885,556.75

-88,211,819.54

Surplus reserves

3,431,510,833.04

17,667,611,575.72

48,476,056,646.33

56,544,961,137.08

3,069,376,151.60

16,638,112,594.55

47,097,700,043.32

52,147,345,099.55

Retained earnings

Total shareholders' equity

Total liabilities and shareholders' equity

Legal Representative:

Chief Financial Officer:

Director of Accounting Department:

Financial statement Page 4

Consolidated Income Statement

FY2023

Prepared by: SDIC Power Holdings Co., Ltd.

Unit: RMB

Item

Note

FY2023

56,711,862,469.69

FY2022

I. Total Operating Income

Including: operating income

Interest income

50,489,243,623.57

V. (L)

56,711,862,469.69

Earned premiums

Fees and commissions income

II. Total operating cost

Including: operating cost

Interest expenses

43,079,936,177.16

36,249,545,276.73

41,494,034,297.86

34,311,491,183.62

V. (L)

Fees and commissions expenses

Cash surrender amount

Net payments for insurance claims

Net provision for insurance contract reserves

Policy dividend expenses

Reinsurance expenses

Taxes and surcharges

V. (LI)

V. (LII)

V. (LIII)

V. (LIV)

V. (LV)

939,172,859.65

46,050,383.00

970,955,468.22

37,350,577.69

Selling expenses

Administration expenses

R&D expenses

1,769,273,574.89

100,605,481.23

3,975,288,601.66

4,612,319,271.08

661,326,040.50

114,293,018.18

697,331,135.83

699,693,753.70

1,479,853,016.95

39,870,284.21

Financial expenses

4,654,513,767.17

5,086,740,741.96

456,876,875.91

164,811,879.06

273,105,168.66

239,468,046.66

Including: Interest expense

Interest income

Add: other incomes

V. (LVI)

Investment income (loss to be listed with "-")

Including: income from investment in associates and joint ventures

Revenue from derecognize of financial assets at amortized cost

Exchange gain (loss to be listed with "-")

V. (LVII)

Net exposure hedging income (loss to be listed with "-")

Profit arising from changes in fair values (loss to be listed with "-")

Credit impairment loss (loss to be listed with "-”)

Asset impairment loss (loss to be listed with "-")

Income of asset disposal (loss to be listed with "-")

III. Operating Profit (loss to be listed with "-")

Add: non-operating incomes

V. (LVIII)

V. (LIX)

V. (LX)

-1,467,144.90

-147,550,079.35

-249,952,077.33

3,707,293.05

21,746,895.60

121,350,216.14

-184,171,173.30

19,535,135.13

V. (LXI)

14,048,288,438.01

209,476,472.51

42,304,545.01

9,411,587,447.00

80,325,189.33

V. (LXII)

V. (LXIII)

Less: non-operating expenses

58,942,677.25

IV. Total Profit (total loss to be listed with "-")

Less: Income tax expense

14,215,460,365.51

2,055,201,264.80

12,160,259,100.71

9,432,969,959.08

1,752,602,224.99

7,680,367,734.09

V. (LXIV)

V. Net Profit (net loss to be listed with "-")

(I) Classified according to operating continuity

1. Net profit from continuing operations (net loss to be listed with “-”)

2. Net profit of discontinuing operations (net loss to be listed with “-”)

(II) Classified according to attribution of the ownership

1. Net profit attributable to owners of the company (net loss to be listed

with “-”)

12,160,259,100.71

7,680,367,734.09

6,704,936,953.85

4,080,677,255.05

2.Non-controlling interests (net loss to be listed with “-”)

VI. Net of Tax of Other Comprehensive Income

Other net after-tax comprehensive income attributable to the owners of the

company

5,455,322,146.86

-21,719,656.35

3,599,690,479.04

402,370,567.12

-46,041,966.72

352,693,400.38

(I) Other comprehensive income that cannot be reclassified through profit and

loss

-26,136,504.44

-1,149,606.89

-1,710,994.31

-23,275,903.24

-84,944,855.87

-3,098,595.91

48,546.56

1. Changes arising from re-measurement of the defined benefit plan

2. Other comprehensive income that cannot be reclassified into profits and

losses under the equity method

3. Changes in fair value of other equity instrument investments

4. Changes in fair value of the enterprise’s credit risk

(II) Other comprehensive income that will be reclassified into profits and

losses

-81,894,806.52

-19,905,462.28

-114,639,275.02

437,638,256.25

441,952,023.81

1. Other comprehensive income that can be reclassified into profits or

losses under the equity method

2. Changes in fair value of other debt investment

3.The amount of financial assets reclassified into other comprehensive

incomes

4. Provision for impairment of credit in other debt investments

5. Reserves for cash flow hedge (effective parts of cash flow hedging profit

and loss)

-16,787,082.22

70,995,238.48

6. Translation difference of foreign currency financial statements

7. Others

111,154,802.15

366,092.81

-76,009,105.61

700,099.57

Net of tax of other comprehensive income attributable to minority shareholders

VII. Total Comprehensive Income

24,322,310.37

49,677,166.74

12,138,539,444.36

6,658,894,987.13

5,479,644,457.23

8,082,738,301.21

4,433,370,655.43

3,649,367,645.78

Total comprehensive income attributable to shareholders of the company

Total comprehensive income attributable to minority shareholders

VIII. Earnings Per Share

V. (LXV)

(I) Basic earnings per share (RMB/share)

0.8754

0.5215

(II) Diluted earnings per share (RMB/share)

Legal Representative:

Chief Financial Officer:

Director of Accounting Department:

Financial statement Page 5

Company’s Income Statement

FY2023

Prepared by: SDIC Power Holdings Co., Ltd.

Unit: RMB

Item

Note

FY2023

10,484,858.09

FY2022

XV.(III)

I. Operating Income

Less: operating cost

Tax and surcharges

Selling expenses

262,948.50

943,539.62

Administration expenses

R&D expenses

199,142,829.32

183,496,883.57

Financial expenses

161,645,714.87

195,437,095.56

30,372,798.83

427,921.46

84,747,524.18

130,644,230.17

43,736,426.30

328,299.43

Including: Interest expense

Interest income

Add: other incomes

XV.(IV)

Investment income (loss to be listed with "-")

3,976,833,290.51

2,966,311,016.25

Including: income from investment in associates and joint

440,240,380.87

3,171,371.62

ventures

Revenue from derecognize of financial assets at amortized cost

Net exposure hedging income (loss to be listed with "-")

Profit arising from changes in fair values(loss to be listed with "-")

Credit impairment loss (loss to be listed with "- ")

-1,467,144.90

-21,171.88

-3,160,004.40

8,360,887.40

Asset impairment loss (loss to be listed with "-")

Income of assets disposal (loss to be listed with "-")

-5,181.20

3,625,201,079.39

249,749.31

198,542.24

2,702,850,793.55

98,603.74

II. Operating Profit (loss to be listed with "-")

Add: non-operating incomes

Less: non-operating expenses

4,104,014.34

2,434,215.41

III. Total Profit (total loss expressed with "-")

Less: Income tax expenses

3,621,346,814.36

2,700,515,181.88

IV. Net Profit (net loss to be listed with "-")

(I) Net profit from going concern (net loss to be listed with “-”)

(II) Net profit from discontinuing operations (net loss to be listed with

“-”)

3,621,346,814.36

2,700,515,181.88

V. Net of Tax of Other Comprehensive Income

(I) Other comprehensive income that cannot be reclassified through

profit and loss

-20,673,737.21

-23,243,164.36

130,000.00

-73,313,809.56

-79,064,755.56

3,620,000.00

48,546.56

1. Changes arising from re-measurement of the defined benefit plan

2.Other comprehensive incomes that cannot be reclassified into

profits and losses under the equity method

3. Changes in fair value of other equity instrument investments

4. Changes in fair value of enterprise’s credit risk

(II) Other comprehensive incomes that will be reclassified into profits

and losses

-1,710,994.31

-21,662,170.05

-82,733,302.12

2,569,427.15

5,750,946.00

1. Other comprehensive incomes that can be reclassified into profits

or losses under equity method

2. Change in fair value of other debt investment

3.The amount of financial assets reclassified into other

comprehensive incomes

4. Provision for impairment of credit in other debt investments

5. Reserves foe cash flow hedge (effective parts of cash flow

hedging profit and loss)

6. Translation difference of foreign currency financial statements

7. Others

VI. Total Comprehensive Income

3,600,673,077.15

2,627,201,372.32

Legal Representative:

Chief Financial Officer:

Director of Accounting Department:

Financial statement Page 6

Consolidated Cash Flow Statement

FY2023

Prepared by: SDIC Power Holdings Co., Ltd.

Unit: RMB

Item

I. Cash Flows from Operating Activities

Note

FY2023

FY2022

Cash received from sale of goods and rendering of service

Net increase in deposits and placements from financial institutions

Net increase in due to central banks

57,105,283,181.81

55,206,739,681.06

Net increase in placement from other financial institutions

Cash received for receiving premium of original insurance contract

Net cash received from reinsurance business

Net increase in deposits of the insured and investment

Cash received from interests, fees and commissions

Net increase in placements from banks and other financial institutions

Net increase in repurchasing

Net cash received from securities brokering

Refunds of taxes and surcharges received

119,079,130.45

1,099,759,385.43

58,324,121,697.69

25,278,158,650.26

810,394,302.16

713,043,561.78

V. (LXVI)

Other cash receipts related to operating activities

Subtotal of Cash Inflows from Operating Activities

Cash paid for goods and services

56,730,177,545.00

24,070,963,488.85

Net increase in loans and advances

Net increase in deposits in the central bank and other financial institutions

Cash paid for claim settlements on original insurance contract

Net increase in loans to banks and other financial institutions

Cash paid for interests, fees and commissions

Cash paid for policy dividends

Cash paid to and for employees

3,810,041,850.43

6,878,430,584.75

1,089,368,022.17

37,055,999,107.61

21,268,122,590.08

3,258,922,340.94

6,650,609,439.53

786,180,624.86

Taxes and surcharges cash payments

Other cash payments related to operating activities

Subtotal of Cash Outflows from Operating Activities

Net Cash Flows from Operating Activities

II. Cash Flows from Investing Activities

V. (LXVI)

34,766,675,894.18

21,963,501,650.82

Cash received from return of investment

3,085,764.03

77,068,995.27

490,450,097.01

Cash received from investment income

500,981,605.44

Net cash received from disposal of fixed assets, intangible assets and

other long-term assets

5,224,989.38

28,772,284.28

Net cash received from disposal of subsidiaries and other business entities

Other cash receipts related to investing activities

Subtotal of Cash Inflows from Investment Activities

Cash paid for purchasing fixed assets, intangible assets and other

long-term assets

V. (LXVI)

1,041,615.81

148,475,288.57

744,766,665.13

510,333,974.66

20,252,516,300.23

19,964,836.27

15,205,572,410.25

680,237,274.04

Cash paid for investments

Net increase in pledge loans

Net payment for the acquisition of subsidiaries and other business entities

Other cash payments related to investment activities

Subtotal of Cash Outflows from Investment Activities

Net Cash Flows from Investment Activities

III. Cash Flows from Financing Activities

135,752,287.71

758,356,757.07

377,277,541.85

170,500,000.00

V. (LXVI)

21,166,590,181.28

-20,656,256,206.62

16,433,587,226.14

-15,688,820,561.01

Cash received from absorbing investment

1,826,813,123.69

1,357,063,123.69

2,529,549,394.13

1,231,983,594.46

Including: cash received by subsidiaries’ absorbing investments from

minority shareholders

Cash received from borrowings

43,694,510,294.32

3,443,495.83

48,823,551,130.38

22,104,430.89

V. (LXVI)

Other cash receipts related to financing activities

Subtotal of Cash Inflows from Financing Activities

Cash paid for repayment of debts

45,524,766,913.84

35,797,441,785.51

9,935,389,158.62

51,375,204,955.40

45,653,548,385.29

9,128,563,242.75

Cash paid for distribution of dividends or profits or interests

Including: distribution of dividends, profit to non-controlling interests of

subsidiaries

2,923,843,669.81

2,534,236,635.67

V. (LXVI)

Other cash payments related to financing activities

Subtotal of Cash Outflows from Financing Activities

Net Cash Flows from Financing Activities

IV. Effect from Change of Exchange Rate to Cash and Cash Equivalents

V. Net Increase in Cash and Cash Equivalents

Add: Beginning balance of cash and cash equivalents

VI. Ending Balance of Cash and Cash Equivalents

731,047,762.03

46,463,878,706.16

-939,111,792.32

37,687,335.81

167,308,976.18

54,949,420,604.22

-3,574,215,648.82

25,974,646.11

-289,558,073.05

11,386,037,121.72

11,096,479,048.67

2,726,440,087.10

8,659,597,034.62

11,386,037,121.72

Legal Representative:

Chief Financial Officer:

Director of Accounting Department:

Financial statement Page 7

Company’s Cash Flow Statement

FY2023

Prepared by: SDIC Power Holdings Co., Ltd.

Unit: RMB

Item

Note

FY2023

FY2022

I. Cash Flows from Operating Activities

Cash received from sales of goods and rendering of services

Refunds of taxes and surcharges received

Other cash receipts related to operating activities

Subtotal of Cash inflows from Operating Activities

Cash paid for goods and services

1,247,678.70

179,179,635.87

180,427,314.57

353,026.00

207,179,722.90

181,081.62

Cash paid to and for employees

114,559,100.46

183,637.22

113,194,936.53

1,291,401.70

Taxes and surcharges cash payments

Other cash payments related to operating activities

Subtotal of Cash Outflows from Operating Activities

Net Cash Flows from Operating Activities

II. Cash Flows from Investing Activities

Cash received from return of investment

Cash received from investment income

149,250,837.42

264,174,656.72

-56,994,933.82

308,769,976.25

423,609,340.48

-243,182,025.91

179,000,000.00

1,268,773,539.47

2,909,952,798.04

3,467,749,222.70

Net cash received from disposal of fixed assets, intangible

assets and other long- term assets

11,000.00

43,300.00

Net cash received from disposal of subsidiaries and other

business entities

Other cash receipts related to investment activities

Subtotal of Cash Inflows from Investing Activities

Cash paid for purchasing fixed assets, intangible assets and

other long-term assets

205,950.49

117,500,000.00

3,646,966,173.19

4,296,269,637.51

4,122,501.36

3,308,105.40

Cash paid for investment

3,712,930,709.73

4,847,556,048.97

Net payment for the acquisition of subsidiaries and other

business entities

Other cash payments related to investing activities

Subtotal of Cash Outflows from Investing Activities

Net Cash Flows from Investing Activities

III. Cash Flow from Financing Activities

Cash received from absorbing investment

Cash received from borrowings

2,650,000.00

3,719,703,211.09

-72,737,037.90

170,500,000.00

5,021,364,154.37

-725,094,516.86

499,750,000.00

5,998,500,000.00

3,443,495.83

1,199,400,000.00

3,500,000,000.00

Other cash receipts related to financing activities

Subtotal of Cash Inflows from Financing Activities

Cash paid for debt repayment

6,501,693,495.83

3,000,000,000.00

4,699,400,000.00

3,160,000,000.00

Cash paid for the distribution of dividends, profits or

interests

2,419,386,259.26

1,531,188,167.68

Other cash payments related to financing activities

Subtotal of Cash Outflows from Financing Activities

Net Cash Flows from Financing Activities

IV. Effect from Change of Exchange Rate to Cash and Cash

Equivalents

522,153,353.39

5,941,539,612.65

560,153,883.18

15,730,656.32

4,706,918,824.00

-7,518,824.00

589,644.80

3,278,799.78

V. Net Increase in Cash and Cash Equivalent

Add: Beginning balance of cash and cash equivalents

VI. Ending Balance of Cash and Cash Equivalents

431,011,556.26

2,538,260,115.67

2,969,271,671.93

-972,516,566.99

3,510,776,682.66

2,538,260,115.67

Legal Representative:

Chief Financial Officer:

Director of Accounting Department:

Financial statement Page 8

Consolidated Statement of Changes in Shareholders’ Equity

FY2023

Prepared by: SDIC Power Holdings Co., Ltd.

Unit: RMB

FY 2023

Shareholders’ equity attributable to the company

Other equity instruments

Minority

shareholders’

equity

Total

shareholders’

equity

Gener

al risk

reserv

Item

Less:

Treasury

stocks

Other

comprehensiv

e income

Special

reserves

Surplus

reserves

Prefer

Capital stock

Capital reserve

10,948,392,103.57

Retained earnings

26,818,018,726.07

Subtotal

Perpetual

bonds

red

Others

7,454,179,797.00

5,699,115,566.05

485,511,565.13

23,951,234.01

3,085,238,716.45

54,514,407,708.28

39,106,919,137.33

93,621,326,845.61

I. Ending balance of the previous year

Add: changes in accounting policies

Corrections of early errors

Business combination under common control

Others

7,454,179,797.00

5,699,115,566.05

-200,471.70

10,948,392,103.57

20,894,081.31

485,511,565.13

-46,041,966.72

23,951,234.01

82,335,797.22

3,085,238,716.45

362,134,681.44

26,818,018,726.07

4,132,999,120.66

6,704,936,953.85

54,514,407,708.28

4,552,121,242.21

39,106,919,137.33

3,943,912,110.53

93,621,326,845.61

8,496,033,352.74

II. Beginning balance of the current year

III. Increase/Decrease in the current year (decrease to

be listed with "-")

6,658,894,987.13

20,693,609.61

5,479,644,457.23

1,334,610,194.60

1,347,942,923.69

12,138,539,444.36

1,355,303,804.21

1,347,942,923.69

(I) Total comprehensive income

(II) Capital invested and decreased by shareholders

1.Ordinary shares input by shareholders

2. Contribution capital of holders of other equity

instruments

-200,471.70

20,894,081.31

-200,471.70

3. Amounts of share-based payments recorded in

owners' equity

20,894,081.31

-13,332,729.09

7,561,352.22

4. Others

362,134,681.44

-2,571,937,833.19

-362,134,681.44

-2,209,803,151.75

-2,923,843,669.81

-5,133,646,821.56

(III) Profit distribution

1. Appropriation to surplus reserves

2. Appropriation to general risk reserve

3. Distribution to shareholders

4. Others

-2,049,899,453.13

-159,903,698.62

-2,049,899,453.13

-159,903,698.62

-2,923,843,669.81

-4,973,743,122.94

-159,903,698.62

(IV) Internal carry-over in shareholders' equity

1.Share capital increased from transfer of capital

reserves

2. Share capital increased from transfer of surplus

reserves

3. Surplus reserve to recover loss

4. Retained earnings carried forward from changes in

defined benefit plan

5. Retained earnings carried over from other

comprehensive income

6. Others

82,335,797.22

232,465,538.34

150,129,741.12

82,335,797.22

232,465,538.34

150,129,741.12

53,501,128.51

168,295,922.89

114,794,794.38

135,836,925.73

400,761,461.23

264,924,535.50

(V) Special reserves

1. Appropriation in current year

2. Use in current year

(VI）Others

7,454,179,797.00

5,698,915,094.35

10,969,286,184.88

439,469,598.41

106,287,031.23

3,447,373,397.89

30,951,017,846.73

59,066,528,950.49

43,050,831,247.86

102,117,360,198.35

IV. Ending balance of the current year

Legal Representative:

Chief Financial Officer:

Director of Accounting Department:

Financial statement Page 9

Consolidated Statement of Changes in Shareholders’ Equity (Cont’d)

FY2023

Prepared by: SDIC Power Holdings Co., Ltd.

Unit: RMB

FY2022

Minority shareholders’

equity

Total shareholders’

equity

Shareholders’ equity attributable to the Company

Item

Other equity instruments

Less:

Treasury

stocks

Other

comprehensive

income

Retained

earnings

General

Capital stock

Capital reserve

Special reserves

Surplus reserves

2,815,187,198.26

Subtotal

Preferred

risk reserve

Perpetual bonds

5,699,596,698.12

Others

I. Ending balance of the previous year

Add: changes in accounting policies

Corrections of early errors

Business combination under common

control

7,454,179,797.00

10,950,144,549.60

132,818,164.75

24,423,000,533.23

-3,587,338.90

51,474,926,940.96

-3,587,338.90

36,622,658,904.53

42,665.92

88,097,585,845.49

-3,544,672.98

Others

II. Beginning balance of the current year

III. Increase/Decrease in the current year

(decrease to be listed with “-”)

(I) Total comprehensive income

(II) Capital invested and decreased by

shareholders

7,454,179,797.00

5,699,596,698.12

-481,132.07

10,950,144,549.60

-1,752,446.03

132,818,164.75

352,693,400.38

2,815,187,198.26

270,051,518.19

24,419,413,194.33

2,398,605,531.74

4,080,677,255.05

51,471,339,602.06

3,043,068,106.22

4,433,370,655.43

-3,054,602.96

36,622,701,570.45

2,484,217,566.88

3,649,367,645.78

1,341,689,540.70

88,094,041,172.51

5,527,285,673.10

8,082,738,301.21

1,338,634,937.74

1,341,689,540.70

-481,132.07

23,951,234.01

-481,132.07

-2,573,470.89

1.Ordinary shares input by shareholders

2. Contribution capital of holders of other

equity instruments

-481,132.07

3. Amounts of share-based payments

recorded in owners' equity

4. Others

-2,573,470.89

(III) Profit distribution

270,051,518.19

-1,682,071,723.31

-270,051,518.19

-1,412,020,205.12

-2,526,879,939.68

-3,938,900,144.80

1. Appropriation to surplus reserves

2. Appropriation to general risk reserve

3. Distribution to shareholders

4. Others

-1,218,758,396.86

-193,261,808.26

-1,218,758,396.86

-193,261,808.26

-3,745,638,336.54

-193,261,808.26

(IV) Internal carry-over in shareholders'

equity

1.Share capital increased from transfer of

capital reserves

2. Share capital increased from transfer of

surplus reserves

3. Surplus reserve to recover loss

4. Retained earnings carried forward from

changes in defined benefit plan

5. Retained earnings carried over from other

comprehensive income

6. Others

(V) Special reserves

23,951,234.01

85,945,203.96

61,993,969.95

23,951,234.01

85,945,203.96

61,993,969.95

821,024.86

20,037,804.49

75,154,210.44

55,116,405.95

2,515.59

43,989,038.50

161,099,414.40

117,110,375.90

823,540.45

1. Appropriation in current year

2. Use in current year

(VI）Others

821,024.86

IV. Ending balance of the current year

7,454,179,797.00

5,699,115,566.05

10,948,392,103.57

485,511,565.13

23,951,234.01

3,085,238,716.45

26,818,018,726.07

54,514,407,708.28

39,106,919,137.33

93,621,326,845.61

Legal Representative:

Chief Financial Officer:

Director of Accounting Department:

Financial statement Page 10

Company’s Statement of Changes in Shareholders' Equity

FY2023

Prepared by: SDIC Power Holdings Co., Ltd.

Unit: RMB

FY2023

Other equity instruments

Perpetual bonds

Less:

Treasury

stocks

Other

comprehensive

income

Item

Special

reserves

Capital stock

Capital reserve

Surplus reserves

Retained earnings

16,638,112,594.55

Total shareholders’ equity

47,097,700,043.32

Preferred

Others

I. Ending balance of the previous year

7,454,179,797.00

5,699,115,566.05

14,325,127,753.66

-88,211,819.54

3,069,376,151.60

Add: changes in accounting policies

Corrections of early errors

Others

II. Beginning balance of the current year

7,454,179,797.00

5,699,115,566.05

-200,471.70

14,325,127,753.66

7,597,149.31

-88,211,819.54

-20,673,737.21

3,069,376,151.60

362,134,681.44

16,638,112,594.55

1,029,498,981.17

3,621,346,814.36

47,097,700,043.32

1,378,356,603.01

III. Increase/Decrease in the current year (decrease to be listed with

"-")

(I) Total comprehensive income

3,600,673,077.15

7,396,677.61

(II) Capital invested and decreased by shareholders

1. Ordinary shares input by shareholders

2.Contribution capital of holders of other equity instruments

3.Amounts of share-based payments recorded in owners' equity

4. Others

-200,471.70

7,597,149.31

-200,471.70

7,597,149.31

(III) Profit distribution

362,134,681.44

-2,591,847,833.19

-362,134,681.44

-2,049,899,453.13

-179,813,698.62

-2,229,713,151.75

1. Appropriation to surplus reserves

2. Appropriation to general risk reserve

3. Others

-2,049,899,453.13

-179,813,698.62

(IV) Internal carry over in shareholders' equity

1. Share capital increased from transfer of capital reserves

2. Share capital increased from transfer of surplus reserves

3.Surplus reserve to recover loss

4. Retained earnings carried forward from changes in defined benefit

plan

5. Retained earnings carried over from other comprehensive income

6. Others

(V) Special reserve

1. Appropriation in current year

2.Use in current year

(VI)Others

IV. Ending balance of current year

7,454,179,797.00

5,698,915,094.35

14,332,724,902.97

-108,885,556.75

3,431,510,833.04

17,667,611,575.72

48,476,056,646.33

Legal Representative:

Chief Financial Officer:

Director of Accounting Department:

Financial statement Page 11

Company’s Statement of Changes in Shareholders' Equity (Cont’d)

FY2023

Prepared by: SDIC Power Holdings Co., Ltd.

Unit: RMB

FY2022

Other equity instruments

Minus:

treasury

stocks

Other

comprehensive

income

Item

Special

reserves

Total shareholders’

equity

Capital stock

Capital reserve

Surplus reserves

2,799,324,633.41

Retained earnings

15,619,669,135.98

Preferred

Perpetual bonds

5,699,596,698.12

Others

7,454,179,797.00

14,324,381,453.59

-14,898,009.98

45,882,253,708.12

II. Ending balance of the previous year

Add: changes in accounting policies

Corrections of early errors

Others

5,699,596,698.12

-481,132.07

14,324,381,453.59

746,300.07

-14,898,009.98

-73,313,809.56

2,799,324,633.41

270,051,518.19

15,619,669,135.98

1,018,443,458.57

2,700,515,181.88

45,882,253,708.12

1,215,446,335.20

2,627,201,372.32

-552,655.19

II. Beginning balance of the current year

III. Increase/Decrease in the current year (decrease to be listed with "-")

(I) Total comprehensive income

-481,132.07

-71,523.12

(II) Capital invested and decreased by shareholders

1. Ordinary shares input by shareholders

2.Contribution capital of holders of other equity instruments

3.Amounts of share-based payments recorded in owners' equity

4. Others

-481,132.07

-71,523.12

270,051,518.19

-1,682,071,723.31

-270,051,518.19

-1,218,758,396.86

-193,261,808.26

-1,412,020,205.12

(III) Profit distribution

1. Appropriation to surplus reserves

2. Appropriation to general risk reserve

3. Others

-1,218,758,396.86

-193,261,808.26

(IV) Internal carry over in shareholders' equity

1. Share capital increased from transfer of capital reserves

2. Share capital increased from transfer of surplus reserves

3.Surplus reserve to recover loss

4. Retained earnings carried forward from changes in defined benefit plan

5. Retained earnings carried over from other comprehensive income

6. Others

(V) Special reserve

1. Appropriation in current year

2.Use in current year

(VI）Others

817,823.19

7,454,179,797.00

5,699,115,566.05

14,325,127,753.66

-88,211,819.54

3,069,376,151.60

16,638,112,594.55

47,097,700,043.32

IV. Ending balance of current year

Legal Representative:

Chief Financial Officer:

Director of Accounting Department:

Financial statement Page 12

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Company Profile

SDIC Power Holdings Co., Ltd. (hereinafter referred to as the Company, or SDIC Power, and

referred to as the Group when containing subsidiaries) is a joint-stock limited company established

by Sinopec Hubei Xinghua Company Ltd. (hereinafter referred to as HBXH CO., Ltd.) and State

Development & Investment Corp., Ltd. (hereinafter referred to as SDIC) after asset replacement

and change registration.

HBXH CO., Ltd. was established exclusively by Sinopec Jingmen Petrochemical General

Plant in February 1989. Approved by [1989] No. 2 of the Hubei Provincial Commission for

Structural Reforms and [1989] No. 101 of Hubei Branch of the People's Bank of China in 1989, its

shares were issued to the public for the first time. On January 18, 1996, with the approval of [1995]

No. 183 of China Securities Regulatory Commission, the public stock was listed on the Shanghai

Stock Exchange for trading, with a stock code of 600886. The registered capital of HBXH CO.,

Ltd. on the date of listing was RMB 58,332,469. After several times of profit distribution, as well

as bonus shares distribution and allotment with the capital reserve, its registered capital was

increased to RMB 281,745,826.

On February 28, 2000, with the approval of the CGZ [2000] No. 34 of the State Ministry of

Finance, Sinopec Jingmen Petrochemical General Plant transferred its 162,234,400 shares

(state-owned legal person shares, accounting for 57.58% of the total shares of the Company) to

China Petroleum and Chemical Corporation, and then the China Petroleum and Chemical

Corporation became the largest shareholder of HBXH CO., Ltd.

On April 28,2002, HBXH CO., Ltd. signed the Asset Replacement Agreement with SDIC, and

HBXH CO., Ltd. replaced all the assets and liabilities owned by it with the equity assets of SDIC

Gansu Xiaosanxia Power Co., Ltd., Jingyuan Second Power Generation Co., Ltd. and Xuzhou

China Resources Power Co., Ltd. held by SDIC; on the same day, China Petroleum and Chemical

Corporation signed a Share Transfer Agreement with SDIC to transfer all its equity interest in

HBXH CO., Ltd. to SDIC. The above-mentioned asset replacement and share transfer are

mutually conditional. With the approval of CQ [2002] No. 193 issued by the State Ministry of

Finance and the approval of ZJH [2002] No. 239 issued by the China Securities Regulatory

Commission; it is agreed to exempt SDIC from the obligation of inviting for acquisition. The

Share Transfer Agreement came into effect on September 30, 2002, and the replacement assets

were delivered on the same day. So far, SDIC has become the largest shareholder of HBXH CO.,

Ltd., whose business scope has changed from the petroleum industry to the power industry.

In December 2002, HBXH CO., Ltd. changed its industrial and commercial registration place

to Lanzhou City, Gansu Province, and its name to SDIC Huajing Power Holdings Co., Ltd.

Notes to Financial Statement Page1

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

In September 2004, SDIC Power took the total share capital of 281,745,826 shares on June

30, 2004 as the base number to increase 10 shares for every 10 shares with the capital reserve for

all shareholders. After the capitalization of capital reserve, the registered capital of SDIC Power

was increased to RMB 563,491,652.

In June 2005, SDIC agreed to acquire 17,500,836 social legal person shares of SDIC Power

held by other shareholders, and SDIC's shareholding proportion increased to 60.69%.

In August 2005, SDIC Power implemented the equity interest division reform after being

reviewed and approved by the second extraordinary general meeting in 2005 and approved by

GZCQ [2005] No. 751 Reply on the Problems about Equity Interest Division Reform of SDIC

Huajing Power Holdings Co., Ltd. of the State-owned Assets Supervision and Administration

Commission of the State Council. The specific program is that based on the total share capital of

SDIC Power of 563,491,652 shares and tradable shares of 214,633,970 shares, the non-tradable

shareholders shall pay 55,804,832 shares of SDIC Power to the tradable shareholders. In another

word, tradable shareholders will receive 2.6 shares paid by non-tradable shareholders for every 10

tradable shares they hold. After the reform of the equity interest division, the total share capital of

SDIC Power remained unchanged, and all shares were tradable shares, of which the proportion of

equity interest held by SDIC in SDIC Power was reduced from 60.69% to 50.98%.

Approved by the resolution of the first extraordinary general meeting of SDIC Power in 2005

and ZJFXZ [2006] No. 32 of China Securities Regulatory Commission, SDIC Power issued an

additional 250 million tradable shares in July 2006. After the additional issuance, the total share

capital of SDIC Power was increased to 813,491,652 shares, and the registered capital was

changed to RMB 813,491,652, where SDIC held 359,083,356 shares, and the shareholding

proportion was reduced from 50.98% to 44.14%.

With the approval of the resolution at the first extraordinary general meeting of SDIC Power

in 2007 and ZJFXZ [2007] No. 261 of China Securities Regulatory Commission, SDIC Power

placed 3 shares for every 10 shares on the basis of the total share capital of 813,491,652 shares on

the registration date of equity interest (September 6, 2007). A total of 244,047,496 shares were

placed. After this allotment, the total share capital of SDIC Power was increased to 1,054,628,336

shares, and the registered capital was changed to RMB 1,054,628,336, of which SDIC held

466,808,363 shares, with the shareholding proportion increasing from 44.14% to 44.26%.

In March 2009, SDIC Power and SDIC signed the Agreement on Share Subscription and

Asset Purchase between SDIC and SDIC Huajing Power Holdings Co., Ltd. and SDIC Power

acquired the 100% equity interest of SDIC Electric Power Co., Ltd. (hereinafter referred to as the

Electric Power Company) held by SDIC with private-placement A shares as consideration. With

Notes to Financial Statement Page2

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

the approval of the resolution at the 13th Meeting of the 7th board of directors held by SDIC on

March 2, 2009, the resolution at the second extraordinary general meeting held on June 24, 2009,

and the Reply on Approving SDIC Huajing Power Holdings Co., Ltd. to Issue Shares to SDIC for

Assets Purchase (ZJXK [2009] No. 1234) as well as the Reply on Approving the Exemption of

SDIC from the Obligation on Offering to Acquisition of Shares of SDIC Huajing Power Holdings

Co., Ltd. (ZJXK [2009] No. 1235) of China Securities Regulatory Commission, SDIC Power is

allowed to issue 940,472,766 shares to SDIC by private placement, with a par value of RMB 1 and

an issue price of RMB 8.18 per share, so as to purchase 100% of the equity interest of the Electric

Power Company held by SDIC. After this issuance, the total share capital of SDIC Power was

increased to 1,995,101,102 shares, and the registered capital was changed to RMB 1,995,101,102,

of which SDIC held 1,407,281,129 shares, with the shareholding proportion of 70.54%.

With the approval of the resolution at the 26th Meeting of the 7th Board of Directors of the

Company, the resolution at the second extraordinary general meeting in 2010, and the Reply on

Issues about the Issuance of Convertible Corporate Bonds by SDIC Huajing Power Holdings Co.,

Ltd. (GZCQ [2010] No. 386) of the State-owned Assets Supervision and Administration

Commission of the State Council, as well as the Reply on Approving the Public Issuing of

Convertible Corporate Bonds by SDIC Huajing Power Holdings Co., Ltd. (ZJXK [2011] No. 85)

of China Securities Regulatory Commission, the Company publicly issued 34 million convertible

corporate bonds on January 25, 2011, with a par value of RMB 100. The total issuance amount is

RMB 3.4 billion, and the issuance term is 6 years (from January 25, 2011 to January 25, 2017).

With the approval of the SZFZ [2011] No. 9 of the Shanghai Stock Exchange, the

above-mentioned RMB 3.4 billion convertible corporate bonds were listed and traded on the

Shanghai Stock Exchange from February 15, 2011. The bonds are referred to as SDIC convertible

bonds, with the bond code 110013.

With the approval of the resolution at the 7th Meeting of the 8th Board of Directors of the

Company and the resolution at the second extraordinary general meeting in 2011, the Reply on

Issues about the Public Issuance of Shares by SDIC Huajing Power Holdings Co., Ltd. (GZCQ

[2011] No. 585) of the State-owned Assets Supervision and Administration Commission of the

State Council and the Reply on Approving the Additional Issuance of Shares by SDIC Huajing

Power Holdings Co., Ltd. (ZJXK [2011] No. 1679) of China Securities Regulatory Commission,

SDIC Power issued RMB ordinary shares (A shares) of 350 million to the public in November

2011. After the additional issuance, with the addition of 1,649 shares converted from "SDIC

convertible bonds", the total share capital of SDIC Power increased to 2,345,102,751 shares, and

the registered capital was changed to RMB 2,345,102,751, where the SDIC held 1,444,604,341

Notes to Financial Statement Page3

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

shares, with the shareholding proportion reducing from 70.65% to 61.60%.

On February 28, 2012, the Company name was changed to SDIC Power Holdings Co., Ltd.

On June 25, 2012, according to the resolution at the 14th Meeting of the 8th Board of

Directors of the Company, the resolution of the general meeting in 2011 and the amended Articles

of Association, the Company increased the registered capital by RMB 1,172,551,376, all of which

was converted from the capital reserve. In addition, in 2012, RMB 12,521,000 of "SDIC

convertible bonds" was converted into A shares of the Group, and the number of shares converted

is 2,641,412. After the capital increase, the paid-in amount of the Company's registered capital is

RMB 3,520,295,539.

On January 25, 2011, the Company issued “SDIC Convertible Bonds” of RMB 3.4 billion. As

of July 5, 2013, a total of RMB 3,388,398,000 was converted into the Group’s A shares, and the

total number of shares converted was 1,020,270,888 shares (net of the impact of two conversion

factors of capital reserve which is 482,408,719 shares calculated with the same dimension), and

the accumulative number of convertible shares accounts for 51.14% of the total number of shares

(1,995,101,102 shares) issued by the Company before the conversion of "SDIC convertible bonds"

(net of the impact of two conversion factors of capital reserve which is 24.18% calculated with the

same dimension). After the conversion of "SDIC convertible bonds", the total share capital of the

Company was increased from 6,515,830,323 shares (on June 30, 2013) to 6,786,023,347 shares.

SDIC holds 3,478,459,944 shares of the Company, accounting for 51.26% of the total share

capital.

On September 24, 2015, SDIC increased its shareholding by 5,269,808 shares through the

Shanghai Stock Exchange system in the way of continuous bidding. After this increase, SDIC

directly held 3,483,729,752 shares of the Company, accounting for about 51.34% of the total

issued shares of the Company.

On May 18, 2016, SDIC transferred 146,593,163 shares to China Shipping (Group) Company

by agreement. After this transfer, SDIC directly held 3,337,136,589 shares of the Company,

accounting for 49.18% of the total issued shares of the Company, and China Shipping (Group)

Company directly held 146,593,163 shares of the Company, accounting for 2.16% of the total

issued shares of the Company.

On October 22, 2020 (London time), the Group offered 16,350,000 Global Depository

Receipts (GDR) (before exercising the over-allotment option) and listed them on the London

Stock Exchange. Each GDR represents 10 A-shares of the Group. The new domestic underlying

A-shares corresponding to the 16,350,000 GDRs initially offered have been registered and

deposited in the Shanghai Branch of China Securities Depository and Clearing Corporation

Notes to Financial Statement Page4

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Limited on October 20, 2020, and are held by Citibank, National Association, the Group's GDR

depository, and they were listed on Shanghai Stock Exchange on October 22, 2020. By exercising

the over-allotment option, the stabilizing manager required to deliver the additional 1,635,000

GDRs offered by the Group to relevant investors on November 19, 2020 (London time). The new

domestic underlying A-shares corresponding to the 1,635,000 GDRs of this over-allotment have

been registered and deposited in the Shanghai Branch of China Securities Depository and Clearing

Corporation Limited on November 16, 2020, and are held by Citibank, National Association, the

Group's GDR depository, and they were listed on Shanghai Stock Exchange on November 19,

2020. After the issuance of GDR, the total share capital of SDIC Power was increased to

6,965,873,347 shares, and the registered capital was changed to RMB 6,965,873,347, where SDIC

held 3,337,136,189 shares, with the shareholding proportion reducing from 49.18% to 47.91%.

On November 26, 2021, the Group issued A shares to SDIC by private placement. The price

of this issuance is RMB 7.44/share, and the number of issued shares is 488,306,450. The total

proceeds are RMB 3,632,999,988. The lockup period is 36 months from the date when the share

registration procedures are completed. After this issuance, the total share capital of SDIC Power

was increased to 7,454,179,797 shares, and the registered capital was changed to RMB

7,454,179,797, of which SDIC held 3,825,443,039 shares, with the shareholding proportion

increasing from 47.91% to 51.32%.

As of December 31, 2023, the Group has issued a total of 7,454,179,800 shares, of which

6,965,873,347 shares are non-restricted tradable shares, accounting for 93.45%, and 488,306,450

shares are restricted tradable shares, accounting for 6.55%. The registered capital is RMB

7,454,179,800 (the business license change registration was completed on February 14, 2022).

Registered address: No.1108, 11 /F 147 Building, Xizhimen Nanxiao Street, Xicheng District,

Beijing; Registration number of business license: 911100002717519818. Headquarters address:

147 Building, Xizhimen Nanxiao Street, Xicheng District, Beijing.

The Group's industries are electricity, thermal power production, and supply; the main

business activities are as follows: Investment, construction, and operation management of energy

projects dominated by power generation; development and operation of new energy projects,

high-tech technology, and environmental protection industry; and development and operation of

power supporting products and information, and consulting services.

The parent company of the Company is SDIC, and the ultimate controller of the Group is the

State-owned Assets Supervision and Administration Commission of the State Council.

The financial statements were approved by the board of directors of the Company on April 29,

2024.

Notes to Financial Statement Page5

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

II.

(I)

Basis for Preparation of Financial Statements

Basis of preparation

This financial statement is prepared in accordance with Accounting Standards for Business

Enterprises--Basic Standard issued by the Ministry of Finance and various accounting standards,

application guide of enterprise accounting standard, interpretation of enterprise accounting

standard and other relevant regulations (collectively known as “Accounting Standards for Business

Enterprises”) as well as Disclosure of Corporate Information Disclosure Rules No.15--General

Provisions on Financial Reporting issued by CSRC.

(II)

Going-concern

This financial statement is prepared on the basis of going-concern.

The Group has sustainable operation ability, and there is no significant event that has an

impact on sustainable operation ability within 12 months since the end of the reporting period.

III.

(I)

Significant Accounting Policies and Accounting Estimates

Statement of compliance with accounting standards for business enterprises

This financial statement can conform to the requirements of enterprise accounting standards

to reflect the consolidated and company financial standing on December 31, 2023 and 2023 annual

consolidated and company business results and cash flow of the Company in a true and complete

way.

(II)

Accounting period

The accounting period of the Group is from January 1 to December 31 of each calendar year.

(III)

(IV)

(V)

Operating cycle

The operating cycle of the Group is 12 months.

Bookkeeping currency

The Group uses Renminbi (“RMB”) as its bookkeeping currency.

The method for determining the importance criteria and the basis for selection

Items

Materiality criterion

The cumulative investment amount of a single

project at the end of the period is greater than

100 million yuan

Important construction in progress

Notes to Financial Statement Page6

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

One or both of the total assets and operating

income of a subsidiary account for more than

1% of the corresponding items in the

consolidated financial statements

Significant non-wholly-owned subsidiary

(VI)

Accounting treatment method for business combinations under common control and

not under common control

The assets and liabilities acquired by the Group, as the combining party, from the business

combinations under common control should be measured based on the

book value in the

ultimate controller's consolidated statements of the combined party on the combination date. The

difference between the book value of the net assets acquired and that of the paid combination

consideration shall be used to adjust the capital reserve. Where the capital reserve is insufficient

for offset, retained earnings shall be adjusted.

The identifiable assets, liabilities and contingent liabilities acquired from the acquiree in the

business combinations not under common control are measured at fair value on the acquisition

date. The combination cost is the sum of fair value of cash or non-cash assets paid, liabilities

issued or assumed, equity securities issued, etc. on the acquisition date for obtaining the control

right of the acquiree and various direct expenses in business combination (in the business

combination realized step by step through several transactions, the combination cost is the sum of

the cost for each single transaction). Positive balance between the combination cost and the fair

value of the identifiable net assets of the acquiree obtained by the Group on the acquisition date

shall be recognized as goodwill; if the combination cost is less than the fair value of the

identifiable net assets of the acquiree obtained by the Company, the fair value of various

identifiable assets, liabilities and contingent liabilities obtained in the business combination and

the fair value of non-cash assets or equity security issued in the consideration of combination shall

be re-checked first. If the rechecked combination cost is still less than the fair value of identifiable

net assets of the acquiree obtained by the Company, the balance shall be included in current

non-operating income.

(VII) Judgment standard of control and compilation method of consolidated financial

statement

Judgment standard of control

The scope of consolidated financial statement takes control as basis and includes the

Company and its all-subsidiary companies. Control means the right of the Company over the

invested entity to enjoy variable return by participating in relevant activities of the invested entity

Notes to Financial Statement Page7

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

and apply such right to affect the amount of such return.

Consolidation procedures

The Group incorporates all subsidiaries controlled by it and structured entities into

consolidated financial statements.

In preparing the consolidated financial statements, where the accounting policy or accounting

period adopted by subsidiaries are inconsistent with that adopted by the Company, financial

statements of subsidiaries shall be adjusted according to the accounting policy and accounting

period of the Company.

All significant internal transactions, balances and unrealized profits within the scope of

consolidation shall be eliminated during preparation of consolidated financial statements. Shares

in owners' equity of subsidiaries but not attributable to the company, net profit and loss for the

current period, other comprehensive income, and shares attributable to minority shareholders’

interests in total comprehensive income shall be listed in consolidated financial statements as

“minority shareholders' equity, minority shareholders’ interests, other comprehensive income,

equity attributed to minority shareholders and total comprehensive income equity attributed to

minority shareholders”respectively.

For the subsidiaries acquired in the business combinations under common control, its

operating results and cash flow are included into the consolidated financial statements from the

beginning of the current period of the combination. During the preparation of comparative

consolidated financial statements, relevant items of the financial statements of the previous period

shall be adjusted. It shall be deemed that the reporting entity formed after the combination has

existed since the beginning of control by the ultimate controller.

Under the circumstance that the equity of the investee is obtained under the common control

through multiple transactions step by step, which results in a business combination, supplementary

disclosure to treatment methods in consolidated financial statements shall be made in the reporting

period for acquiring the control. For example, if equity of the investee under the common control

is obtained step by step through several transactions, which results in a business combination, such

equity shall be adjusted in the preparation of consolidated financial statements as if they might

have existed as the current state from the time when the ultimate controller takes the control.

When preparing comparative statements, relevant assets and liabilities of the acquiree are included

in comparative statements of consolidated financial statements of the Group according to the

restriction that the time above shall be later than the time when the Group and the acquiree are

under the common control of the ultimate controller, moreover, increased net assets resulting from

the combination are adjusted as relevant items under owners' equity. In order to avoid repeated

Notes to Financial Statement Page8

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

calculation of value of net assets of the combined party, the long-term equity investment held by

the Group before the combination is achieved, the changes in relevant profits and losses, other

comprehensive income and other net asset that have been recognized in the period from the later

date, when the long-term equity investment is acquired and when the Group and the combined

party are under the final control of the same party, to the combination date, shall respectively be

applied to write down the opening retained earnings or current profits and losses during the period

of comparative statement.

As for subsidiaries acquired by business combinations not under common control, operating

results and cash flows shall be incorporated into consolidated financial statements from the date

when the Group takes the control. In preparing of consolidated financial statements, financial

statements of the subsidiaries are adjusted based on the fair value of all identifiable assets,

liabilities and contingent liabilities recognized on the acquisition date.

Under the circumstance that the equity of the investee is obtained not under common control

through multiple transactions step by step, which results in a business combination, supplementary

disclosure to treatment methods in consolidated financial statements shall be made in the reporting

period for acquiring the control. For instance, under the circumstance that the business

combination is realized not under common control through multiple transactions step by step, the

equity of the Acquiree obtained before the acquisition date shall be recalculated as per the fair

value of the equity on the acquisition date when preparing the consolidated financial statements,

with the balance between the fair value and its book value included into the current investment

income; if the equity of the Acquiree held before the acquisition date involves other

comprehensive income calculated under the equity method and other change of the owner's equity

except for net profits and losses, other comprehensive incomes and profit distribution, the relevant

other comprehensive incomes and other change of owners' equity shall be transferred into the

current investment profit or loss of the acquisition date, except other comprehensive incomes

arising out from that the investee remeasures change of the net liabilities or net assets of the

defined benefit plan.

At the situation when the Group partially disposes long-term equity investments in

subsidiaries without losing control right, in the consolidated financial statements, for the

difference between the disposal price and the share of net assets which should be entitled by the

Group in the subsidiaries continuously calculated since the acquisition date or combination date

corresponding to the disposed long-term equity investments, such difference shall be adjusted to

capital premium or share premium. If the capital reserve is insufficient to offset, the retained

earnings shall be adjusted.

Notes to Financial Statement Page9

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Where control right over the investee is lost due to the disposal of partial equity investment

of the Group or other reasons, the residual equity will be re-calculated based on the fair value

thereof on the day the control is lost when preparing the consolidated financial statements. The

balance between the sum of consideration acquired from disposal of equity interest and the fair

value of the residual equity interest and the share of net assets of the original subsidiaries

measured constantly based on the original shareholding proportion from the acquisition date or

combination date shall be recognized as the profit and loss on investment of the period at the loss

of control and the goodwill shall be offset accrodingly. Other comprehensive income in connection

with equity investment of the original subsidiary shall be transferred to the profit and loss on

investment of the period at the loss of control.

When the Group disposes of equity investment of the subsidiaries step by step through

multiple transactions till losing the control right, if various transactions from disposal of equity

investment of subsidiaries till losing the control right belong to package deal, accounting treatment

shall be conducted for each transaction as the transaction that disposes of subsidiary with loss of

control right. Nonetheless, before loss of control right, the balance between each disposal price

and the net asset share of such subsidiary enjoyed correspondingly in asset disposal is recognized

in the other comprehensive income in the consolidated financial statements and transferred into

the current investment profit and loss when losing control right.

(VIII) Classification of joint operation arrangement and accounting treatment methods for

joint operations

The Group’s joint arrangements include joint operations and joint ventures. In projects for

joint operation, for assets held and liabilities assumed solely which are recognized by the Group as

the joint-venture party in joint operation and assets held and liabilities assumed according to

shares, their relevant income and costs shall be determined as per related individual agreements or

shares. Only profit or loss attributable to other joint operators shall be recognized in transactions

where assets purchase and sale occurred with joint operator but not classified as trading

transactions.

(IX)

Cash and cash equivalents

Cash shown in the cash flow statement of the Group refers to both cash on hand and the

deposit held in bank available for payment at any time. Cash equivalent in the cash flow statement

refers to the investment with a term of not more than 3 months and high liquidity, and is easily

convertible to known amounts of cash and subject to an insignificant risk of changes in value.

Notes to Financial Statement Page10

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

(X)

Foreign currency transactions and foreign exchange translation for financial

statements

Foreign currency transaction

The amount of transactions in foreign currency shall be translated into that in RMB at the

spot exchange rate (or according to the actual situation) on the transaction date. The foreign

currency monetary items in the balance sheet date are translated into RMB at the spot exchange

rate on the balance sheet date; the translation difference is directly recognized as the current profit

and loss, except the translation difference that is attributed to foreign currency specific borrowings

for establishing or producing assets eligible for capitalization which should be capitalized as per

capitalization principle.

Translation of foreign currency financial statements

The asset and liability items in the foreign currency balance sheet are converted at the spot

exchange rate on the balance sheet date; the owner's equity items, except for the items of "retained

earnings", are converted at the spot exchange rate on the transaction date; the income and

expenditure items in the profit statement are converted at the spot exchange rate on the transaction

date (or according to the actual situation). The difference arising from the above translation shall

be listed in other comprehensive income items. Foreign currency cash flow shall be converted at

the spot rate on the date that cash flow occurs (or according to the actual situation). The amount of

effect of exchange rate fluctuations on cash shall be separately listed in the cash flow statement.

(XI)

Financial assets and financial liabilities

When the Group becomes a party of a financial instrument contract, the Group recognizes a

financial asset or a financial liability.

1. Financial assets

(1) Classification, recognition and measurement of financial assets

According to the business mode of financial assets management and the contract cash flow

characteristics of financial assets, the Group classifies financial assets into financial assets

measured at amortized cost, financial assets at FVTOCI, and financial assets at FVTPL.

The Group classifies the financial assets that meet the following conditions simultaneously

into the financial assets measured at amortized cost: ① the business mode of the financial assets

management takes the collection of contract cash flow as the objective. ② The contract terms of

the financial assets stipulate that, the cash flow generated on a specific date is only the payment of

the principal and the interest based on the outstanding principal amount. Financial assets measured

Notes to Financial Statement Page11

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

at amortized cost include notes receivable, accounts receivable, other receivables, long-term

receivables, debt investment, etc. Such financial assets are initially measured at fair value, and

relevant transaction costs are included in the initially recognized amount; Subsequent

measurement is carried out at amortized cost. For financial assets that are not part of any hedging

relationship, the gains or losses arising from amortization according to the effective interest

method, impairment, exchange gain or loss, and derecognition shall be included in the current

profits and losses.

The Group classifies the financial assets that meet the following conditions simultaneously

into the financial assets at FVTOCI: ① the business mode of the management of the financial

assets takes the collection of contract cash flow and the of such financial assets as the objective.

② The contract terms of the financial assets stipulate that, the cash flow generated on a specific

date is only the payment of the principal and the interest based on the outstanding principal

amount. They include receivables financing, other debt investments, which shall be initially

measured at fair values, and for which the relevant transaction costs shall be included in the

initially recognized amount. All gains or losses of such financial assets that are not of any hedging

relationship, other than the credit impairment loss or gain, exchange gain or loss, and interest of

such financial assets calculated by the effective interest method, shall be included in other

comprehensive income. When the financial assets are derecognized, the accumulative gain or loss

previously included in other comprehensive income shall be transferred from other comprehensive

income, and included in the current profits and losses.

The Group recognizes the interest income by the effective interest method. The interest

income shall be determined by multiplying the book balance of financial assets by the effective

interest rate, except for the following circumstances: ① for the purchased or originated financial

assets that the credit impairment has occurred, their interest incomes shall be determined at their

amortized costs and by the effective interest rate adjusted through credit from the initial

recognition. ② For purchased or originated financial assets that the credit impairment has not

occurred but the credit impairment has occurred in the subsequent period, their interest incomes

shall be determined at their amortized costs and by the effective interest rate during the subsequent

period.

The Group designates the non-trading equity instrument investment as the financial assets at

FVTOCI. This designation shall not be revoked once made. The non-trading equity instrument

investment at FVTOCI that the Group designates shall be initially measured at the fair value, and

the relevant transaction expenses shall be included in the initially recognized amount; and other

relevant gains and losses (including the exchange gain or loss) shall be included in other

Notes to Financial Statement Page12

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

comprehensive income, and shall not be transferred in the current profits and losses subsequently,

but the obtained dividends (except for those belonging to the investment cost recovered). When its

recognition is terminated, the accumulated gains or losses previously booked into other

comprehensive income shall be transferred from other comprehensive incomes and recorded into

retained earnings.

The Group classifies the financial assets other than the above financial assets measured at the

amortized cost and the financial assets at FVTOCI into the financial assets at FVTPL. Such

financial assets shall be initially measured at the fair value, and the relevant transaction expenses

shall be included in the current profits and losses directly. The gains or losses of such financial

assets shall be included in the current profits and losses.

The financial assets will be classified as the financial assets at FVTPL if they are recognized

by the Group in the business combination not under common control and constituted by the

contingent consideration.

(2) Determination basis and measurement method of financial asset transfer

The Group derecognizes the financial assets that meet one of the following conditions: ① the

contract right of collecting the cash flow of such financial assets is terminated; ② the financial

assets are transferred, and the Group has transferred almost all risks and rewards related to the

ownership of the financial assets; and ③ the financial assets are transferred, and the Group neither

transfers nor retains almost all risks and rewards related to the ownership of the financial assets, as

well as the control over such financial assets.

If the transfer of an entire financial asset qualifies for derecognition, the difference between

the book value of the transferred financial asset at the date of derecognition and the sum of the

consideration received for such transfer and the amount of cumulative changes in fair value

allocated to the derecognized part which had been directly recognized in other comprehensive

income(the financial asset involved in the transfer shall meet the following conditions: ① The

objective of the Group's business model for managing the financial asset is to both collect

contract cash flows and sell the financial asset; ② the contract terms of the financial asset give rise

on specified dates to cash flows that are solely payments of principal and interest on the principal

amount outstanding.) shall be recognized in profit or loss

If the transfer of a part of a financial asset qualifies for derecognition, the book value of the

transferred financial asset shall be allocated between the part derecognized and the part not

derecognized on the basis of the relative fair values of these parts, and the difference between the

book value allocated to the part derecognized and the sum of the consideration received for such

transfer and the amount of cumulative changes in fair value allocated to the derecognized part

Notes to Financial Statement Page13

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

which had been recognized in other comprehensive income (the financial asset involved in the

transfer shall meet the following conditions: ① The objective of the Group's business model for

managing the financial asset is to both collect contract cash flows and sell the financial asset; ②

the contract terms of the financial asset give rise on specified dates to cash flows that are solely

payments of principal and interest on the principal amount outstanding.) shall be recognized in

profit or loss

Financial liabilities

(1) Classification, recognition and measurement of financial liabilities

Except for the following items, the Group classifies the financial liabilities as the financial

liabilities measured at amortized cost and uses the effective interest method to carry out a

subsequent calculation based on the amortized cost:

① The financial liabilities at FVTPL (including derivatives falling under financial liabilities),

including the financial liabilities held for trading and financial liabilities designated as financial

liabilities at FVTPL when initially recognizing, are measured subsequently at fair value, the gains

or losses resulting from the changes in fair value and the dividends and interest expenses related to

such financial liabilities are recorded in the current profits and losses.

② Financial liabilities formed by the transfer of financial assets that do not meet the

conditions for derecognition or continue to involve in the transferred financial assets. Such

financial liabilities shall be measured by the Group in accordance with relevant standards for the

transfer of financial assets.

③ Financial guarantee contracts that do not fall under the above circumstances ① or ②, and

loan commitments that do not fall under the above circumstance ① and lend at a rate lower than

market interest rates. If the Group is the issuer of such financial liabilities, the liabilities after

initial recognition shall be subsequently measured according to the higher of the loss reserve

amount determined according to the impairment provisions of financial instruments, and the

balance of initially recognized amount after deducting the accumulated amortized amount

recognized according to the revenue standard.

The financial liabilities recognized by the Group as the acquirer in the business combination

not under common control and constituted by the contingent consideration shall be subjected to

the accounting treatment at FVTPL.

Derecognition conditions of financial liabilities

Where the current obligation of financial liabilities has been terminated entirely or partially,

the financial liabilities or obligation that has been terminated shall be derecognized. The Group

Notes to Financial Statement Page14

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

and the Creditor sign an agreement in which the existing financial liabilities are replaced by means

of undertaking new financial liabilities; in the event that the contract terms of the new financial

liabilities and those for existing financial liabilities are inconsistent, recognition for the existing

financial liabilities shall be terminated and the new financial liabilities shall be recognized. If the

contract terms and conditions of the existing financial liabilities are modified by the Group in

whole or in part substantially, such existing financial liabilities or the corresponding part thereof

should be derecognized, and the financial liabilities subject to such modification are recognized as

a new financial liability. The difference between the book value of the derecognized part and the

paid consideration shall be included in current profits and losses.

Determination methods for fair values of financial assets and financial

liabilities

The Group measures the fair value of financial assets and financial liabilities, based on the

prices of major markets or the price of the most advantageous market in case of no major market,

and employ the valuation techniques currently available and supported by sufficient valid data and

other information. The inputs for measuring the fair value are divided into three levels: the inputs

for Level 1 are the unadjusted quotation of identical assets or liabilities in the active market which

can be obtained on the measurement date; the inputs for Level 2 are the inputs directly or

indirectly observable for relevant assets or liabilities other than those for Level 1; the inputs for

Level 3 are the inputs that are unobservable for relevant assets or liabilities. The Group prefers the

input value of the first level, and uses the input value of the third level at the very end. The level of

fair value measurement results is determined based on the lowest level for input value that is

significant for the whole fair value measurement.

The investment of the Group in the equity investment shall be measured at the fair value.

However, under the limited circumstances, if the recent information for determining the fair value

is insufficient or the range of possible estimates of fair value is wide, and the cost represents the

best estimate for the fair value within this range, such cost could represent its appropriate estimate

for the fair value within this distribution range.

Offset of financial assets and financial liabilities

Financial assets and financial liabilities of the Group shall be presented separately in the

balance sheet and be not mutually offset. However, the net amount is presented in the balance

sheet after being offset, when the following conditions are met at the same time: ① the Group has

a legal right to offset the recognized amount and that such legal rights are currently enforceable;

and ② the Group plans to settle by the net assets or sell off financial assets and liquidate the

financial liabilities at the same time.

Notes to Financial Statement Page15

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Difference between financial liability and equity instrument and related

treatment method

The Group distinguishes financial liabilities and equity instruments according to the

following principles: ① if the Group fails to unconditionally perform one contract obligation by

delivering cash or other financial assets, the contract obligation satisfies the definition of financial

liability. While some financial instruments do not expressly include the terms and conditions for

the obligation to deliver cash or other financial assets, it is possible to form contract obligations

indirectly through other terms and conditions. ② If a financial instrument must be or can be

settled with the Group's own equity instruments, it is necessary to consider whether the Group's

own equity instruments used to settle the instrument are used as substitutes for cash or other

financial assets or to enable the holder of this instrument to enjoy the residual equity in the assets

after deducting all liabilities from the issuer. If it is the former one, this instrument is the financial

liabilities of the Issuer. If it is the latter, the instrument is the equity instrument of the Issuer. Under

certain circumstances, a financial instrument contract requires that the Group must or may settle

the financial instrument with its own equity instruments, where the amount of contract rights or

contract obligations is equal to the number of own equity instruments available or to be delivered

multiplied by the fair value upon its settlement. In this case, regardless of whether the amount of

the contract right or obligation is a fixed value or changes based in whole or in part on changes in

variables other than the market price of the Group's own equity instrument (such as interest rates,

the price of a good or the price of a financial instrument), the contract is classified as financial

liabilities.

When classifying a financial instrument (or its components) in the consolidated financial

statements, the Group takes into consideration all the terms and conditions agreed between

members of the Group and holders of financial instruments. If the Group as a whole has assumed

the obligation to deliver cash, other financial assets or settle it by other means of rendering the

instrument a financial liability, the instrument should be classified as a financial liability.

If the financial instruments or their components belong to financial liabilities, the relevant

interests, dividends (or stock dividends), gains or losses, as well as gains or losses arising from

redemption or refinancing shall be recognized in the profits and losses of the current period by the

Group.

If the financial instruments or their components belong to equity instruments, as to the

issuance (including re-financing), re-purchasing, sale or cancellation of such instruments, the

Group will take with these situations as changes of equity and will not recognize any change of

fair value of the equity instruments.

Notes to Financial Statement Page16

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Impairment of financial instruments

Based on the expected credit loss, the Group conducts impairment accounting treatment and

recognizes an impairment loss for : ① financial assets measured at amortized cost; ② financial

assets measured at FVTOCL; ③ contractual assets.

Expected credit loss refers to the weighted average of credit losses of financial instruments

weighted by the risk of default. Credit loss refers to the difference between all contract cash flows

receivable according to the contract and discounted according to the original effective interest rate

and all expected cash flows receivable, that is, the present value of all cash shortages of the Group.

For each of the following items, the Group always measures its loss provision according to

the amount equivalent to the expected credit losses during the whole duration: ① loss provision of

receivables or contractual assets formed by the transactions specified in the Accounting Standards

for Business Enterprises No. 14 - Revenues, regardless of whether the item contains major

financing components; ② operating lease receivables.

In addition to the above items, for other items, the Group measures the loss provision

according to the following circumstances:

① for financial instruments with no significant

increase in credit risk since initial recognition, the Group measures the loss provision according to

the amount of the expected credit losses in the next 12 months; ② for financial instruments with a

significant increase in credit risk since initial recognition, the Group measures the loss provision

according to the amount equivalent to the expected credit losses of the financial instrument

throughout the duration; ③ for financial instruments purchased or originated with credit

impairment, the Group measures the loss provision according to the amount equivalent to the

expected credit losses in the whole duration.

For financial assets at FVTOCI (such financial assets also meet the following conditions: the

Group's business model of managing such financial assets aims to collect the contract cash flow;

the contract terms for such financial assets stipulate that the cash flow generated on a specific date

is only the payment of the interest based on the principal amount), the Group recognizes its

provision for credit loss in other comprehensive income, and includes the impairment loss or gain

into the current profit and loss, without reducing the book value of such financial assets as stated

in the balance sheet. The increase or reversed amount of the provision for credit loss for other

financial instruments shall be included in the current profits and losses as impairment losses or

gains.

(1) Assessment on significant increase of credit risk

The Group judges whether the credit risk of the financial instrument significantly increases

by comparing the default probability of this financial instrument in the expected duration

Notes to Financial Statement Page17

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

determined during the initial recognition with its default probability in the expected duration

determined on the balance sheet date. However, if the Group determines that the financial

instrument has only a low credit risk on the balance sheet date, the Group could assume that the

credit risk of the financial instrument has not increased significantly since the initial recognition.

Under normal circumstances, if it is overdue for more than 30 days, it indicates that the credit risk

of the financial instrument has significantly increased, except that the Group can obtain the

reasonable and well-founded information without unnecessary additional cost or effort to prove

that the credit list has not yet significantly increased since the initial recognition even if overdue

for more than 30 days. When determining whether the credit risk has significantly increased since

the initial recognition, the Group considers the reasonable and well-founded information obtained

by it without unnecessary additional cost or effort, including the forward-looking information.

Portfolio-based assessment. If the Group cannot obtain sufficient evidence of a significant

increase in credit risk at a reasonable cost at the individual instrument level, and it is feasible to

evaluate whether the credit risk has increased significantly on a portfolio basis, the Group will

group the financial instrument according to common credit risk characteristics and considers and

evaluates whether the credit risk has increased significantly on a portfolio basis.

(2) Measurement of expected credit loss

Elements that should be reflected in the measurement of expected credit loss: ① the average

unbiased and probability-weighted amount determined by assessment a series of possible results;

② the time value of money; and ③ reasonable and well-founded information about past events,

current conditions and projections of future economic conditions that are not unnecessarily costly

or available at the balance sheet date.

The Group determines its credit loss of lease receivables and financial guarantee contracts on

the basis of individual assets or contracts.

For accounts receivable and contractual assets, except for determining its credit loss

separately for the accounts with the significant single amount and credit impairment, the Group

prepares a comparison table of ageing of accounts receivable and loss given default on a portfolio

basis, considering the elements that should be reflected in the measurement of expected credit loss

and referring to the experience in historical credit loss, so as to calculate the expected credit loss.

For other financial assets measured at amortized cost and classified as financial assets at

FVTOCI (such financial assets also meet the following conditions: the Group's business model of

managing such financial assets aims to collect the contract cash flow; the contract terms for such

financial assets stipulate that the cash flow generated on a specific date is only the payment of the

interest based on the principal amount), the Group determines its credit loss on a portfolio basis,

Notes to Financial Statement Page18

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

except for determining its credit loss separately for the accounts with the significant single

amount.

The Group classifies financial instruments into different groups based on common credit-risk

characteristics. The common credit risk characteristics used by the Group include: type of

financial instruments, credit risk rating, geographical location of the debtor, industry engaged in

by the debtor, etc.

The Group determines the expected credit losses of related financial instruments in the

following ways:

① For financial assets, the credit loss is the present value of the difference between the

contract cash flow that the Group should collect and the cash flow expected to be collected.

②For lease receivables, the credit loss is the present value of the difference between the

contract cash flow that the Group should collect and the cash flow expected to be collected.

Among them, the cash flow used to determine the expected credit loss is consistent with the cash

flow used by the Group to measure the lease receivables in accordance with the leasing standards.

(XII) Notes receivable

Provision accrued on single basis

For the method of provisioning for expected credit loss on single basis, please refer to the

method of provisioning for expected credit loss on accounts receivable in "(XIII) Accounts

receivable".

Provisioning for impairment on a collective basis

Considering the default risk of different notes, the notes receivable are divided into the

banker's acceptance portfolio (which can be subdivided according to the credit ratings of banks)

and trade acceptance portfolio (which can be subdivided according to the credit and financial

standing of counterparties). For the method of provisioning for expected credit loss on the trade

acceptance portfolio, please refer to the method of provisioning for expected credit loss on

accounts receivable in "(XIII). Accounts receivable".

(XIII) Accounts receivable

Single provision for impairment

The Group separately calculates the expected credit loss for the receivables withdrawn on a

single basis, and separately calculates the financial assets without expected credit loss, including

calculations in the financial asset portfolio with similar credit risk characteristics. If calculation on

an individual basis recognizes the credit of a receivable, it shall not be included in a portfolio of

receivables with similar credit risks for combined calculation.

Notes to Financial Statement Page19

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

With reference to the historical credit loss experience, and in combination with the current

situation as well as the forecast of the future economic situation, the Group measures the expected

credit loss by estimating the default risk exposure, default probability, default loss rate, credit risk

conversion factors of off-balance-sheet items and other parameters of a single financial instrument

or portfolio financial instruments.

The Group will separately calculate the expected credit loss for receivables with the

following features: In the case of the receivables with objective evidence of loss, the expected

credit loss is recognized based on the difference between the present value of future cash flow and

its book value; Receivables that have disputes with the other party or are involved in litigation or

arbitration; Receivables with clear indications that the debtor is likely to be unable to perform the

repayment obligations.

Provisioning for impairment on a collective basis

Accounts receivable-low risk combination-electricity charges receivable and heat charges

receivable as well as for others, etc. The recovery probability is obviously higher than that of

ordinary creditor's rights, and historical experience shows that receivables with extremely low risk

shall be recovered.

For the accounts receivable divided into portfolios, the Company calculates the migration rate

of accounts receivable with different ageing and considers the cumulative changes in the migration

rate of each ageing range in history to obtain the expected loss rate corresponding to each ageing

range, and then calculates the expected credit loss amount with different ageing.

For receivables and contractual assets formed by transactions specified in Accounting

Standards for Business Enterprises No. 14 - Revenue (2017) (regardless of whether the significant

financing is contained), the Group always measures the loss provision according to the amount

equivalent to the expected credit loss throughout the duration.

For the lease receivables, the Group always measures its loss provision according to the

amount equivalent to the expected credit loss throughout the duration:

If the Group no longer reasonably expects that the contract cash flow of the financial asset

can be recovered in whole or in part, the book balance of the financial asset is directly written

down.

(XIV) Other receivables

The Group shall measure loss provisions for other receivables according to the following

situations: ①for financial assets whose credit risk has not increased significantly since the initial

recognition, the Group shall measure the loss provision according to the amount of the expected

Notes to Financial Statement Page20

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

credit loss in the next 12 months; ②for financial assets whose credit risk has increased

significantly since the initial recognition, the Group shall measure the loss provision according to

the amount equivalent to the expected credit loss in the whole duration; ③for the purchase or

underlying financial assets that have occurred credit impairments, the Group shall measure the

loss provision according to the amount equivalent to the expected credit loss in the whole

duration.

The Group separately calculates expected credit loss on other receivables with provision for

impairment made on an individual basis, and any receivables with credit loss recognized on an

individual basis are no longer included in the receivables portfolio with similar credit risk

characteristics.

With reference to the historical credit loss experience, and in combination with the current

situation as well as the forecast of the future economic situation, the Group measures the expected

credit loss by estimating the default risk exposure, default probability, default loss rate, credit risk

conversion factors of off-balance-sheet items and other parameters of a single financial instrument

or portfolio financial instruments.

The Group will separately calculate the expected credit loss for receivables with the

following features: In the case of the receivables with objective evidence of loss, the expected

credit loss is recognized based on the difference between the present value of future cash flow and

its book value; Receivables that have disputes with the other party or are involved in litigation or

arbitration; Receivables with clear indications that the debtor is likely to be unable to perform the

repayment obligations..

(XV) Inventories

The Group's inventories mainly include raw materials, turnover materials, low-value

consumables, finished goods and so on.

The perpetual inventory system is adopted for inventories. Inventories are valued based on

their actual cost when obtained; Their actual costs are determined with the first-in-first-out method,

moving weighted average method, and month-end weighted average method when acquired or

sent.

For the finished goods, materials for sale and other merchandise inventories directly for sale,

the net realizable values thereof should be recognized at the balance after the estimated selling

price of such inventories deducts the estimated selling expenses and relevant taxes. For the

material inventories held for production, the net realizable values thereof should be recognized at

the balance after the estimated selling price of the finished product deducts the estimated costs to

Notes to Financial Statement Page21

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

be incurred upon completion, estimated selling expenses and related taxes.

(XVI) Contractual assets

Recognition methods and standards of contractual assets

Contractual assets refer to the right of the Group who transferred the commodity to the

customer to receive the consideration, and the right depends on other factors excluding the passage

of time. If the Group sells two clearly distinguishable commodities to the customer, due to the

delivery of one of the commodities, it has the right to receive payment, but the collection of such

payment shall also depend on the delivery of the other commodity, and the Group shall have the

right to receive such payment as the contractual assets.

Determination method and accounting treatment of expected credit loss of

contractual assets

For the determination method of the expected credit losses of contractual assets, refer to the

relevant contents in the above-mentioned "(XI). Financial Assets and Financial Liabilities".

Accounting treatment: the Group calculates the expected credit loss of the contractual assets

on the balance sheet date, if the expected credit losses are greater than the book value of the

current contract asset impairment provision, the Group shall recognize the difference as an

impairment loss, debit “asset impairment loss” and credit “contract asset impairment provision”.

On the contrary, the Group recognizes the difference as impairment gains and makes opposite

accounting records.

If the Group actually suffers a credit loss and determines that the relevant contractual assets

cannot be recovered and are approved to be written off, the “provision for impairment of contract

asset” shall be debited and the “contractual assets” shall be credited according to the approved

written off amount. If the written off amount is greater than the accrued loss provision, “asset

impairment loss” shall be debited against difference of the period.

(XVII) Contract cost

The Group's assets related to contract costs include contract performance cost and contract

acquisition costs.

Determination method of assets related to contract costs

If the contract performance cost, namely, the cost incurred by the Group for the

implementation of the contract, is not in the scope of other Accounting Standards for Business

Enterprises and simultaneously meets the following conditions, it shall be recognized as an asset

Notes to Financial Statement Page22

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

as the contract performance cost: the cost is directly related to a current or anticipated contract,

including direct labour, direct materials, manufacturing costs (or similar costs), costs clearly borne

by the customer, and other costs incurred solely as a result of the contract; the cost increases the

Group's resources for future using for performance of obligations; and the cost is expected to be

recovered.

Contract acquisition cost, namely, the incremental cost incurred by the Group for the

acquisition of the contract and expected to be recovered, as the contract acquisition cost, it shall be

recognized as an asset; and if the amortization period of the asset does not exceed one year, it is

included in the current profit and loss when it occurs. Incremental cost refers to the cost (such as

sales commissions) that would not have occurred if the Group had not obtained the contract. Other

expenses incurred by the Group for the acquisition of the contract, excluding the incremental costs

expected to be recovered (such as the travel expenses incurred regardless of whether or not the

contract is obtained), include in the current profit and loss when it occurs, however, except costs

clearly borne by the customer.

Amortization of assets related to contract costs

The assets related to the contract costs of the Group are amortized on the same basis as the

recognized sales revenue related to the assets and include in the current profit and loss.

Impairment of assets related to contract costs

When determining the impairment losses of assets related to contract costs, the Group shall

first determine the impairment losses of other assets related to the contract and recognized in

accordance with the other Accounting Standards for Business Enterprises; and then, according to

the difference between the book value and the balance of remaining consideration that the Group

is expected to obtain due to the transfer of the commodities related to the asset, minus the

estimated costs due to the transfer of the relevant commodity, the provision for impairment shall

be made for the excess and recognized as asset impairment losses.

If the factors for impairment in previous periods change after that, so that the aforesaid

difference is higher than the book value of the asset, the original provision for impairment of the

asset shall be reversed and included in the current profits or losses, but the book value of the asset

after reversal shall not exceed the book value of the asset on the reversal date assuming no

provision for impairment is made.

(XVIII)Long-term equity investments

The long-term equity investment of the Group is mainly aimed to subsidiaries, associates and

joint ventures.

The Group judges the common control based on the point that all the participants or group of

Notes to Financial Statement Page23

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

participants collectively control the arrangement, and that the policies for the activities related to

the arrangement must be agreed by participants who collectively control the arrangement.

It is generally considered that the Group, when holding, directly or through subsidiaries,

more than 20% (included) but less than 50% of the voting right of the investee, has a significant

influence on the investee. The Group, if holding less than 20% of the voting right of the investee,

may have a significant influence on the investee in consideration of facts and situations that the

Group sends representatives to the Board of Directors or similar organs of authorities of the

investee, participates in financial and operation policy-making of the investee, has important

transactions with the investee, sends management personnel to the investee, or provides critical

technical information for the investee.

The investee under the control of the Group shall be deemed as a subsidiary of the Group. As

to long-term equity investments acquired in business combination under common control, the

share of book value of net assets in the ultimate controller’s consolidated statements of the

acquiree on the combination date shall be recognized as the initial investment cost of long-term

equity investments. If the book value of the net asset of the combined party on the combination

date is negative, then the cost of long-term equity investments shall be determined as zero.

Under the circumstance that the equity of the investees under common control is obtained

through multiple transactions step by step, which results in business combination, supplementary

disclosure to treatment methods for long-term equity investments in consolidated financial

statements shall be made in the reporting period acquiring the control. For instance, as to the

equity of the investee under common control acquired step-by-step through multiple transactions

and business combination finally completed, which belongs to a package deal, the Group performs

accounting treatment by regarding all transactions as a transaction for acquiring control power. If

it is not a package deal, the combined party's portion of book value of net assets in the ultimate

controller's consolidated financial statements owned on the combination date is taken as the initial

investment cost for long-term equity investments. The balance between the initial investment cost

and the sum of the book value of long-term equity investments which has reached before the

combination and the book value of new payment consideration obtained on the combination date

shall be applied to adjust capital reserve. If the capital reserve is insufficient to set it off, the

retained earnings shall be written down.

For long-term equity investments acquired via business combination not under common

control, the combination cost is taken as the initial investment cost.

As to equity interest of the investee not under common controls acquired step-by-step

through multiple transactions and a business combination finally completed, the method for

Notes to Financial Statement Page24

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

handling the cost of long-term equity investments in the financial statement of the company shall

be complementarily disclosed during the reporting period acquiring the control. For instance, as to

the equity of the investee not under common control acquired step-by-step through multiple

transactions and business combination finally completed, which belongs to a package deal, the

Group performs accounting treatment by regarding all transactions as a transaction for acquiring

control power. If it is not a package deal, the sum of book value of equity investment originally

held and new investment cost is taken as the initial investment cost calculated by the cost method.

If the equity interest originally held before the acquisition date and calculated by the equity

method, relevant other comprehensive income originally figured out by the equity method is

temporarily not adjusted and will be subject to accounting treatment when disposing the

investment, on the same basis as that adopted by the investee entity for directly handling related

assets or liabilities. If the equity held before the acquisition date is non-trading other equity

instrument investments that are designated to be measured at FVTOCI, the accumulated changes

in fair value originally included in other comprehensive income shall not be transferred into

current profits or losses.

Apart from aforementioned long-term equity investments acquired through business

combination, as to long-term equity investments acquired by cash payment, the actually paid

amount is taken as the investment cost; as to long-term equity investments acquired through

issuing equity securities, the fair value of the issued equity securities is taken as the investment

cost; as to long-term equity investments invested by investors, the value specified in investment

contract or agreement is taken as the investment cost; if the Group has long-term equity

investments acquired through debt restructuring and exchange of non-monetary assets, the method

of determining investment cost shall be disclosed as per relevant accounting rules of enterprises

and considering actual conditions of the Group.

The Group calculates the investment to the subsidiaries by cost method, with equity method

adopted for joint ventures and associates.

For long-term equity investments subsequently calculated by the cost method, when more

investments added, the book value of the long-term equity investments cost is increased based on

the fair value of cost paid for added investments and related transaction expenses. Cash dividend

or profit declared by the investee is recognized as current investment income in accordance with

the amount to enjoy.

For long-term equity investments subsequently calculated by the equity method, the book

value of long-term equity investments is increased or decreased accordingly with variance of

owners' equity of the investee. Wherein, the Group shall, when recognizing the shares of the net

Notes to Financial Statement Page25

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

profits and losses of the investee that shall be enjoyed by the Group, calculate the portion

attributed to the Group based on the fair value of each identifiable asset of the investee upon

acquisition in accordance with the shareholding ratio by offsetting profits and losses of unrealized

internal transaction incurred between the joint venture and associate, then recognize the net profits

of the investee after adjustment.

For the disposal of long-term equity investments, the difference between the book value and

actually obtained price shall be included in the current investment income. For long-term equity

investment calculated by the equity method, the related other comprehensive income previously

calculated by the equity method should be accounted for on the same basis as the direct disposal of

the related assets or liabilities by the investee upon the termination of the equity method. The

owner's equity recognized as a result of changes in the owner's equity of the investee other than

net profit or loss, other comprehensive income and profit distribution should be transferred in full

to current investment income upon the termination of the equity method.

Where the Group loses the joint control over or the significant influence on the investee due

to the disposal of part of the equity investment, the remaining equity shall be accounted for as per

the Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of

Financial Instruments (CK [2017] No.7), and the balance between the fair value and the book

value on the date of losing joint control or significant influence is included in current profit or loss.

Other comprehensive income recognized on the former equity investment due to the adoption of

the equity method of accounting is treated on the same basis as the direct disposal of the related

assets or liabilities by the investee upon the termination of the equity method of accounting and

carried forward proportionately. Owners' equity recognized as a result of changes in the investee's

ownership interest other than net profit or loss, other comprehensive income and profit distribution

should be transferred proportionately to current investment income.

For loss control of the investee due to disposal of partial long-term equity investments, the

residual equity after disposal, if capable of realizing joint control or applying significant influence

on the investee, is changed to the equity method for calculation, the difference for disposal of book

value and consideration is included in the investment income, and the residual equity is adjusted

as it is calculated by the equity method since it is acquired; the residual equity after disposal, if

unable to realize joint control or apply significant effect on the investee, is changed to accounting

treatment based on the Accounting Standards for Business Enterprises No. 22 - Recognition and

Measurement of Financial Instruments (CK[2017] No.7), the difference for disposal of book value

and consideration is included in the investment income, and the difference between the fair value

and book value of the residual equity on the loss-control date is included in current profit and loss.

Notes to Financial Statement Page26

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Various transactions of the Group from step-by-step equity disposal to loss of controlling

power do not belong to the package deal, and every transaction is separately subject to accounting

treatment. Any transaction categorized as package deal is subject to the accounting treatment

oriented for subsidiary disposal and loss of controlling power. However, before the loss of

controlling power, the difference between the disposal price and book value of long-term equity

investments of the corresponding disposed equity interest for every transaction is recognized as

other comprehensive income, which is not transferred into current profit and loss until the

controlling power is lost.

(XIX) Investment properties

The Group's investment properties include houses & buildings, and land right of use, which

are calculated in cost model.

The same depreciation policy as that for the fixed assets of the Group shall be adopted for the

investment properties – buildings used for renting, and the land right of use for renting shall be

subject to the same amortization policy as that for intangible assets.

(XX) Fixed assets

Fixed assets of the Group refer to the tangible assets which have the following characteristics

at the same time, namely held for the production of commodities, the provision of labour services,

leasing or operation and management for a period of more than one accounting year.

Fixed asset may be recognized when it simultaneously meets the conditions as follows: The

economic benefits pertinent to the fixed asset are likely to flow into the enterprise; and the cost of

the fixed asset can be measured reliably. Fixed assets of the Group include plant and buildings,

machinery equipment, transportation facility, office equipment and other equipment.

Except for the fully depreciated fixed assets that are still in use and the land that is separately

valuated and recorded, all the fixed assets of the Group shall be depreciated. Straight line method

shall be adopted for calculating depreciation. The depreciation life by category, estimated residuals

rate and depreciation rate of the fixed assets of the Group are as follows:

Estimated residual rate

(%)

Annual depreciation rate

(%)

Category

Depreciable life (year)

Houses and buildings

Of which: houses

Building

10-50

10-35

20-50

0-3

1.94-10.00

2.86-10.00

1.94-5.00

0-3

Notes to Financial Statement Page27

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Estimated residual rate

Annual depreciation rate

(%)

Category

Depreciable life (year)

(%)

0-3

Machinery Equipment

Transportation facilities

Office and other equipment

5-30

5-10

3-5

3.23-20.00

9.70-20.00

19.40-32.33

At the end of each year, the Group reviews the estimated useful life, estimated net residual

value and depreciation methods of fixed assets. If a change occurs, it shall be treated as a change

in accounting estimates.

(XXI) Projects under construction

Projects under construction ready for intended use shall be transferred to fixed assets based

on the estimated value according to construction budget, project cost or actual project cost. The

depreciation shall be drawn from the next month. After going through procedures of completion

settlement, the difference of the original value of the fixed assets shall be adjusted.

(XXII) Borrowing costs

The borrowing costs directly belonging to fixed assets, investment properties and inventories

that require more than one year of acquisition or construction to be ready for intended use or

selling shall be capitalized when the expenditures of the assets and the borrowing costs incurred

and acquisition or construction activities necessary for making the assets be ready for intended use

or selling begin. When the assets meeting the capitalization requirements acquired or constructed

are ready for use or selling, the capitalization shall be terminated, and the borrowing costs incurred

subsequently shall be included in current profits and losses. If assets eligible for capitalization are

suddenly suspended in acquisition or construction or production for more than three months

continuously, the capitalization of borrowing costs shall be suspended until the restart of

acquisition or construction and production activities of the assets.

The actually incurred interest costs of special borrowings in current period shall be

capitalized after the interest income from unused borrowings deposited in banks or investment

income from temporary investment of unused borrowings is deducted. The capitalized number of

general borrowings shall be obtained by multiplying the weighted average of the excess of the

accumulated asset expenditures over the asset expenditures of special borrowings with the

capitalization rate of general borrowings used. The capitalization rate shall be calculated and

determined based on the weighted average interest rate of the general borrowings.

(XXIII)Right-of-use assets

Notes to Financial Statement Page28

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

The right-of-use asset refers to the right of the Group as the lessee to use the leased asset

during the lease term.

1. Initial measurement

At the commencement of the lease term, the Group initially measures the right-of-use assets

at cost. The cost includes the following four items: ①initial measurement amount of lease

liabilities; ②deducted amount related to the enjoyed lease incentive if there is a lease incentive for

the lease payment made on or before the commencement of the lease term; ③initial direct cost

incurred, i.e., incremental cost incurred to reach the lease; and ④costs expected to be incurred for

dismantling and removing the leased asset, restoring the site where the leased asset is located or

restoring the leased asset to the state agreed in the leasing terms, except those incurred for the

production of inventory.

2. Subsequent measurement

After the start date of a lease term, the Group uses the cost model for subsequent

measurement of right-of-use assets, that is, the right-of-use assets shall be measured at cost less

accumulated depreciation and accumulated impairment losses. Where the Group re-measures lease

liabilities in accordance with relevant provisions of lease criteria, the book value of right-of-use

assets shall be adjusted accordingly.

Depreciation of right-of-use asset

Starting from the commencement of the lease term, the Group will depreciate the right-of-use

asset. The right-of-use asset is usually depreciated from the current month that the lease term starts.

The depreciation amount for provision is included in the cost of underlying assets or the current

profits and losses according to the use of the right-of-use asset.

When determining the depreciation method for the right-of-use asset, the Group makes a

decision based on the expected consumption mode of economic benefits related to the right-of-use

asset, and depreciates the right-of-use asset by the straight-line method.

When determining the depreciation life of right-of-use asset, the Group follows the following

principles: if the ownership of leased asset can be reasonably confirmed to be acquired at the

expiration of lease term, the depreciation shall be carried out within the remaining useful life of

leased asset; otherwise, the depreciation shall be carried out within the remaining lease term or the

useful life of leased asset, whichever is shorter.

Impairment of the right-of-use assets

If the right-of-use asset is impaired, the Group will carry out subsequent depreciation

according to the book value of the right-of-use asset after deducting the impairment loss.

Notes to Financial Statement Page29

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

(XXIV) Intangible assets

The Group's intangible assets include land right of use, BOT franchise, highway right of use,

sea area right of use, green electricity certificate for AFTON, software, etc., which shall be

measured at the actual cost when being obtained; For the intangible assets purchased, the price

actually paid and related other expenditure shall be deemed as actual cost; For the intangible assets

invested by the investor, the actual cost shall be determined according to the value agreed in the

investment contract or agreement, but if the value agreed in the contract or agreement is unfair, the

actual cost shall be recognized at fair value.

1. Useful life estimation for intangible assets with limited useful life:

The intangible assets with limited useful life shall be averagely amortized by stages

according to the shortest period among the expected useful life, the benefit period stipulated in the

contract and the effective period stipulated by law. The amortized amounts shall be included in

current profits and losses and relevant asset costs according to beneficiaries.

The estimated useful life and the amortization method of intangible assets with limited useful

life shall be reviewed and adjusted properly at the end of each year. The Group shall review the

estimated useful life of intangible assets with uncertain useful life in each accounting period. If

any evidences indicate that the useful life of intangible assets is limited, the useful life shall be

estimated and amortized within the estimated useful life:

Amortization

Item

Estimated service life

Basis

method

Land right of use,

intellectual property right

The number of years specified

in the certificate or law

Straight-line

method

Certificates of rights such as land right of

use certificates

Straight-line

method

Software

1-10 years

Not less than 40 years

30 years

Estimated useful life

Straight-line

method

Certificates of rights such as sea area right

of use certificate

Sea area right of use

House right of use

Highway right of use

BOT franchise

Straight-line

method

Estimated useful life

BOT contract

Straight-line

method

35 years

The number of years specified

in the BOT contract

Straight-line

method

Green electricity certificate

for AFTON

Straight-line

method

17.33 years

13 years

Estimated service life

Straight-line

method

Right of charge

Notes to Financial Statement Page30

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

2. Specific classification standard of research and development stages:

The expenditure on the Group’s internal research and development project is classified into

expenditure during the research phase and expenditure during the development phase.

Research stage: a stage in which original and planned survey and research activities are

carried out for obtaining and understanding new scientific or technological knowledge.

Development stage: a stage in which research results or other knowledge are applied to a plan

or design for obtaining new or substantially improved materials, apparatuses and products prior to

commercial manufacture or use.

3. Criteria for development expenditures capitalization

Expenditures at the research stage shall be included in the current profit or loss when incurred.

Expenditures at the development stage, if satisfying all of the following conditions at the same

time, are recognized as intangible assets; if not, they are included in the current profit or loss:

(1) It is technically feasible to complete the intangible assets so that it will be available for

use or sale;

(2) There is an intention to complete the intangible assets and use or sell it;

(3) With methods for finishing the intangible assets to generate economic profits, including

evidence of existing market for products produced by the intangible assets, existing market of the

intangible assets or serviceability of the intangible assets which is for internal use;

(4) Where it is able to finish the development of the intangible assets, and able to use or sell

the intangible assets, with the support of sufficient technologies, financial resources and other

resources;

(5) The expenditures attributable to the intangible assets during the development can be

reliably measured.

If it is impossible to distinguish the expenditures at the research stage from the expenditures

at the development stage, all the research and development expenditures incurred shall be included

in current profit or loss.

(XXV) Impairment of long-term assets

On each balance sheet date, the Group shall check the long-term equity investment,

investment properties measured by cost model, fixed assets, projects under construction,

right-of-use assets, intangible assets with limited useful life, and other items. In case of any

indication of impairment, the Group shall carry out an impairment assessment. If the impairment

test result shows that the recoverable amount of the assets is less than the book value, the

Notes to Financial Statement Page31

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

impairment provision shall be accrued as per their difference and included in the impairment loss.

The recoverable amount is the net amount of the fair value of the assets after deducting the

disposal expenses or the present value of the expected future cash flow of the assets, whichever is

higher. Impairment provisions of assets shall be calculated and recognized on a single asset basis.

If it is difficult to estimate the recoverable value of the single assets, the recoverable value shall be

recognized as per the asset portfolio to which the single asset belongs. An asset portfolio is the

smallest portfolio of assets that is able to generate independent cash inflows.

Goodwill arising from a business combination, intangible assets with an indefinite useful life,

and intangible assets that have not reached the usable condition should at least be assessed for

impairment at the end of each year regardless of whether such indication exists.

The Group conducts goodwill impairment assessments and apportions the book value of

goodwill arising from business combinations to the relevant asset groups from the acquisition date

in accordance with a reasonable method; if it is difficult to apportion to the relevant asset groups,

it is apportioned to the relevant asset group combinations. An asset group or portfolio of asset

groups is an asset group or portfolio of asset groups that can benefit from the synergies of a

business combination.

When conducting impairment tests on the related asset portfolio or portfolio of asset groups

that contain(s) goodwill, if there are indications of impairment, test the asset groups or groups of

asset groups that do not contain goodwill firstly and calculate the recoverable amount, and

compare it with the related book value to confirm the corresponding impairment loss. Then,

impairment tests are conducted on the relevant asset group or portfolio of asset groups, comparing

the book value with the recoverable amount. If the recoverable amount is less than the book value,

the amount of impairment loss shall first deduct the book value of goodwill apportioned to the

asset group or portfolio of asset groups, and then deduct the book value of other assets based on

the proportion of each asset in the asset group or the portfolio of asset groups except goodwill.

Once recognized, the above asset impairment losses will not be reversed in future accounting

periods.

(XXVI) Long-term prepaid expenses

Long-term prepaid expenses of the Group refer to each paid expense with an amortization

term above 1 year (exclusive) in the current and later periods, and such expenses are under

average amortization in the benefit period. If there is a clear benefit period, it shall be averagely

amortized according to the benefit period; if there is no benefit period, it shall be averagely

amortized in 5 years. If the long-term prepaid expenses will not benefit in the future accounting

Notes to Financial Statement Page32

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

period, the amortized value of unamortized expenditures shall be all transferred to the current

profits and losses.

(XXVII) Contractual liabilities

The contractual liabilities reflect the Group's obligations to transfer commodities to the

customer due to customer consideration received or receivable. If the customer has paid the

contract consideration or the Group has obtained the right to receive the contract consideration

unconditionally before the transfer of the commodities to the customer, the contract liability shall

be recognized according to the amount received or receivable when the customer actually makes

the payment or payment is due, whichever is earlier.

(XXVIII)Employee Compensation

Employee compensation of the Group includes short-term compensation, post-employment

benefits, termination benefits and other long-term welfare.

1.Accounting treatment for short-term compensation

During the accounting period when the employees work for the Group, the actual short-term

remuneration is recognized as liabilities and included in the profit or loss for the current period or

relevant asset cost.

The Group will pay the social insurance charges and housing funds for the employees and

withdraw labour union expenditure and expenditures for employee education in accordance with

the provisions. During the accounting period when the employees provide services for the Group,

corresponding amount of payroll shall be calculated and determined according to the calculation

and drawing basis and drawing proportion specified.

The employee benefits incurred by the Group are included in the current profit or loss or

relevant asset cost according to the actual amount incurred when it is actually incurred, and the

non-monetary welfare shall be measured at fair value.

2. Accounting treatment of post-employment benefits

(1) Defined contribution plan

The Group shall cause its employees to participate in the basic pension insurance and

unemployment insurance administered by the local government. The amounts payable shall be

determined according to payment base and proportions as stipulated by the local government over

the accounting period in which the service has been rendered by the employees, recognized as

liabilities and included in profit or loss for the current period or related asset costs. In addition, the

Group also participated in the enterprise annuity plan/supplementary old-age insurance fund

approved by relevant national departments. The Group shall pay relevant fees to the annuity

Notes to Financial Statement Page33

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

plan/local social security institution as per the certain proportion of the total wages of employees,

and corresponding expenditure shall be included in current profits and losses or relevant asset cost.

(2) Defined benefit plan

The Group shall attribute benefit obligations under a defined benefit plan to periods of

service provided by employees according to the formula determined by projected unit credit

method, with a corresponding charge to the profit and loss for the current period or the cost of a

relevant asset.

The deficit or surplus formed by the present value of obligations under defined benefit plan

minus the fair value of assets under defined benefit plan shall be recognized as a net liability or a

net asset under defined benefit plan. In case that the defined benefit plan has surplus, the Group

measures the net asset under defined benefit plan as per the surplus under defined benefit plan and

the upper asset limit, whichever is lower.

For all obligations under the defined benefit plan, including the obligation to pay within

twelve months after the annual report period in which the employees provide services, the

discount shall be made at the balance sheet date based on the market return on the national bonds

matching with the obligations under the defined benefit plan in terms of the term and currency or

based on the high-quality corporate bonds in the active market.

The service cost arising from the defined benefit plan and the net amount of interest of the net

liability or net asset of the defined benefit plan shall be included in current profit or loss or

relevant asset cost; the changes arising from re-measurement of the net liability or net asset of the

defined benefit plan shall be included in other comprehensive incomes and shall never be reversed

back to profits or losses in subsequent accounting periods. When the original defined benefit plan

terminates, the part intended to be included in other comprehensive incomes within the interest

range shall be included in retained earnings

For settlement of the defined benefit plan, the settlement gains or losses shall be recognized

as per the difference between the present value of the defined benefit plan obligation and the

settlement price determined on the date of settlement.

3. Accounting treatment for dismission benefits

When the Group provides termination benefits to the employee, the liabilities of the staff

compensation arising from termination benefits are recognized at the earlier of the following two

dates and included in current profits or losses: the Group cannot unilaterally withdraw the

termination benefits provided due to the labour relation termination plan or the layoff suggestions;

the Group recognizes the costs or expenses related to the restructuring of termination benefits

payment.

Notes to Financial Statement Page34

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

(XXIX) Lease liabilities

1. Initial measurement

The Group initially measures the lease liabilities according to the present value of the lease

payment which is not made at the commencement of the lease term.

(1) Lease payment

Lease payment refers to the amount paid by the Group to the lessor relating to the right to use

the leased asset during the lease term, including: ①fixed payment and substantial fixed payment,

of which the amount related to lease incentive shall be deducted if there is lease incentive;

②variable lease payment depending on index or ratio, which is determined according to the index

or ratio at the commencement of the lease term during initial measurement; ③ exercise price of

purchase option when the Group reasonably determines to exercise purchase option; ④payment

made for exercising the option to terminate the lease when the lease term reflects that the Group

exercises such option; and ⑤amount expected to be paid according to the guaranteed residual

value provided by the Group.

(2) Discount rate

When calculating the present value of the lease payment, the Group adopts the interest rate

included in the lease as the discount rate; if it is impossible to determine the interest rate included

in the lease, the interest rate on incremental borrowing shall be used as the discount rate. The

incremental borrowing rate refers to the interest rate that the Group should pay to borrow funds

under similar mortgage conditions during a similar period in order to obtain assets with a value

close to the value of the right-of-use assets under similar economic circumstances. The interest

rate is related to the following matters: ① the Group's own situation, namely, the Group’s

solvency and credit status; ② term of “borrowing”, namely the lease term; ③ the amount of

"borrowed" funds, namely, the amount of lease liabilities; ④ “mortgage conditions”, namely, the

nature and quality of the underlying assets; and ⑤ economic environment, including the

jurisdiction where the lessee is located, pricing currency, contract signing time, etc. Based on the

bank loan interest rate, relevant lease contract interest rate, the Group's similar asset mortgage

interest rate in the latest period, and the bond interest rate of the same period issued by the

enterprise, the Group makes adjustments by considering the above factors to obtain the

incremental borrowing rate.

2. Subsequent measurement

After the commencement of the lease term, the Group will carry out subsequent measurement

of the lease liabilities according to the following principles: ① increase the book value of the lease

liabilities when confirming the interest on the lease liabilities; ② reduce the book value of lease

Notes to Financial Statement Page35

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

liabilities when making the lease payment; and ③ remeasure the book value of the lease liabilities

when the lease payment changes due to revaluation or lease change.

The interest expenses of the lease liabilities within each lease term shall be calculated

according to the fixed periodic rate, and included in the current profits and losses, except for those

should be capitalized. Periodic rate refers to the discount rate adopted by the Group when initially

measuring the lease liabilities, or the revised discount rate adopted by the Group when the lease

liabilities need to be remeasured according to the revised discount rate due to changes in the lease

payment or lease changes.

3. Remeasurement

After the commencement of the lease term, in case of the following circumstances, the Group

shall remeasure the lease liabilities according to the present value of the changed lease payment,

and adjust the book value of the right-of-use asset accordingly. If the book value of the

right-of-use asset has been reduced to zero, but the lease liabilities still need to be further reduced,

the Group shall include the remaining amount in the current profits and losses. ① A substantial

fixed payment changes (in this case, it is discounted at the original discount rate); ② The expected

payable amount of guaranteed residual value changes (in this case, it is discounted at the original

discount rate); ③ An index or ratio used to determine the amount of a lease payment changes (in

this case, discounted at the revised discount rate); ④ The evaluation of call option changes (in this

case, it is discounted at the revised discount rate); and ⑤ The evaluation or actual exercise of a

renewal option or a termination option changes (in this case, it is discounted at the revised

discount rate).

(XXX) Estimated liabilities

When obligations related to the contingencies meet the following conditions at the same time,

the Group recognizes them as estimated liabilities:

(1) The obligation is the current obligation of the Group;

(2) The fulfilment of this obligation is likely to result in economic outflow;

(3) The amount of such obligation can be measured reliably.

Estimated liabilities shall be initially measured in accordance with the optimal estimate of the

necessary expenses for the performance of the current obligation.

When determining the optimal estimate, the Company shall comprehensively consider such

factors as relevant risks and uncertainties related to contingencies and the time value of currency.

If there is a significant impact on the time value of money, the best estimate is determined by

discounting the relevant future cash outflow.

Notes to Financial Statement Page36

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

If all or part of expenditures, which are necessary for paying off the estimated liabilities, are

expected to be compensated by the third party, the compensation amount is recognized separately

as assets when it is virtually confirmed the amount can be received, but the compensation amount

confirmed cannot exceed the book value of the estimated liabilities.

The book value of estimated liabilities should be reviewed by the Group on the balance sheet

date. If there is concrete evidence showing that the book value cannot truly reflect the current

optimal estimate, the book value should be adjusted as per the current optimal estimate.

(XXXI) Share-based payment

The stock payment settled by equity for obtaining services of employees shall be measured

according to the fair value on the date when granting the equity instrument to employees. In

situations where the amount of fair value is only vested after completing services in the waiting

period or reaching specific performance conditions, the amount of fair value calculated by the

method of line based on the optimal estimation of the quantity of vesting equity instruments in the

waiting period shall be included into relevant cost or expense, with capital reserve increased

correspondingly.

Stock payment settled by cash shall be measured at the fair value of liabilities recognized

based on stocks or other equity instruments assumed by the Group. For the stock payment with

immediate vesting after it is granted, its relevant cost or expenditure shall be included on the date

when it is vested with increasing the liabilities correspondingly; for the stock payment vesting

only after the services in the waiting period is completed or the specified performance conditions

are satisfied, the services obtained in the current period shall be recorded into costs or

expenditures based on the optimal estimation of the vesting and at the fair value of the liabilities

assumed by the Group on each balance sheet date within the waiting period, and the liabilities

shall be adjusted correspondingly.

On each balance sheet date and the settlement date prior to the settlement of the relevant

liabilities, the fair value of the liabilities shall be re-measured, with the change of the fair value

recognized into current profit or loss.

If the Group cancels the equity instruments granted in the waiting period (except for those

cancelled due to failing to meet the vesting conditions), such a cancellation shall be treated as

accelerated vesting as that stock payment plan in the remaining waiting period has fully met the

vesting conditions; and the Group will recognize all expenses in the remaining waiting period on

the current period of cancelling vested equity instrument.

Notes to Financial Statement Page37

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

(XXXII) Other financial instruments as preferred shares and perpetual bond

For the preferred shares and perpetual bonds categorized as debt instruments, the initial

recognition is made according to the amount by deducting transaction costs from the fair value of

these instruments. Also, the subsequent measurement is carried out according to amortized cost

with the adoption on effective interest rate method. Treatments on the interest expenditures or

dividend distribution of these instruments are made according to borrowing costs. The gains or

losses generated from the repurchase or redemption of these instruments are recognized in current

profits or losses.

For the preferred shares and perpetual bond categorized as equity instruments, shareholders’

equity is increased by the amount of deducting transaction costs from the consideration received at

the issuance. Treatments on the interest expenditures or dividend distribution of these instruments

are made according to profits distribution. The gains or losses generated from the repurchase or

cancellation of these instruments are treated as changes in equity.

(XXXIII)Revenue recognition principles and measuring methods

The operating income of the Group mainly includes electricity sales revenue, thermal sales

revenue, construction installation and design service revenue, labour service revenue, and

commodity sales revenue.

1. Accounting policies for revenue recognition and measurement

The Group has fulfilled its performance obligations of the Contract, which means it

recognizes the revenue when the customer has acquired the control rights of the relevant goods or

services. The acquisition of control over the relevant goods or services means to be able to

dominate the use of the relevant goods or services and obtain almost all the economic benefits.

If the contract contains two or more performance obligations, the Group shall, on the

commencement date of the contract, apportion the transaction price to each performance

obligation according to the relative proportion of the individual selling price of the goods or

services promised by each performance obligation. The Group measures revenue according to the

transaction price apportioned to each individual performance obligation.

The transaction price is the amount of consideration that the Group is expected to be entitled

to receive for the transfer of goods or services to the customer, but excluding payments received

on behalf of third parties and payments expected to be refunded to customers. According to the

contract terms, the Group determines the transaction price in combination with its past customary

practices, taking into account the influence of variable consideration, major financing components

in the Contract, non-cash consideration, the consideration payable to customers and other factors

Notes to Financial Statement Page38

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

when determining the transaction price. The Group shall determine the transaction price including

variable consideration at an amount that does not exceed the accumulated recognized income

which is extremely unlikely to be significantly reversed when the relevant uncertainty is

eliminated. If there are significant financing components in the Contract, the Group determines the

transaction price under the assumption that the amount payable in cash when the customer

acquires control of the goods or services, and uses the effective interest method to amortize the

difference between the transaction price and the contract consideration during the contract period.

In case one of the following conditions is met, the performance obligations belongs to

performance obligations within a period of time. Otherwise, it belongs to the the performance

obligations at a time point:

(1) The customer obtains and consumes the economic benefits brought by the Group while

performing the contract;

(2) The customer can control the goods under construction during the Group's performance;

(3) The goods generated during the performance of the Group are irreplaceable, and the

Group is entitled to collect the amount for the performance accumulatively completed so far

throughout the term of the Contract.

For the performance obligations performed within a certain period of time, the Group shall

recognize the income according to the performance progress within that period, except that the

performance progress cannot be reasonably determined. Considering the nature of goods or

services, the Group adopts the output method or the input method to determine the performance

progress. If the performance progress cannot be reasonably confirmed, and the costs incurred can

be expected to be compensated, the revenue shall be recognized by the Group according to the

amount of costs incurred until the performance progress can be reasonably confirmed.

For performance obligations performed at a certain time point, the Group shall confirm the

revenue at the time point when the customer gains control rights of the relevant commodities or

services. In determining whether a customer has obtained the control rights of the goods or

services, the Group shall take the following indications into consideration:

(1) The Group enjoys the current collection right in regard to such goods or services, i.e. the

customers have the obligation to pay immediately with respect to the goods or services;

(2) The Group has transferred the legal ownership of the goods to the customer, i.e. the

customer owns the legal ownership of the goods;

(3) The Group has transferred the goods to the customer in kind, i.e. the customer has

possessed the goods;

(4) The Group has transferred the major risks and remuneration on the ownership of the

Notes to Financial Statement Page39

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

goods to the customer, i.e. the customer has obtained the major risks and remuneration on the

ownership of the goods;

(5) The customer has accepted such goods or services, etc.

2. Specific principles

(1) Electricity sales revenue

The electricity sales revenue is the main commodity sales revenue of the Group. The Group

recognizes the realization of sales revenue when the electricity is transmitted to the power grid

specified in the sales contract, i.e., when the customer obtains the control right of electricity.

(2) Thermal sales revenue

The Group recognizes the realization of sales revenue when the thermal supply reaches the

customer who purchases heat, i.e., the customer who purchases heat obtains the thermal control

right.

(3) Construction installation and design service revenue

The Group uses the input method to determine the appropriate performance progress when

recognizing the performance progress of construction installation and design service revenue. The

input method is a method to determine the performance progress according to the input of the

Group's performance obligations, and the Group uses the incurred costs as the input indicators to

determine the performance progress. On the balance sheet date, the Group's revenue for the

current period shall be recognized as follows: The total transaction price of the contract is

multiplied by the percentage of performance progress (net of the accumulated and recognized

revenue in the previous accounting period). If the performance progress cannot be reasonably

confirmed, and the costs incurred can be expected to be compensated, the incomes shall be

recognized according to the amount of costs incurred until the performance progress can be

reasonably confirmed.

(4) Income from rendering labour services

The Group uses the output method to determine the appropriate performance progress when

recognizing the performance progress of the labour service revenue. The output method is a

method to determine the performance progress in accordance with the value of the commodity

transferred to customers. The achieved milestones are used as the output indicators to determine

the performance progress. On the balance sheet date, the Group's revenue for the current period

shall be recognized as follows: The total transaction price of the contract is multiplied by the

percentage of performance progress (net of the accumulated and recognized revenue in the

previous accounting period). If the outcome of labour services provision cannot be estimated

reliably, the service revenue will be recognized based on the service costs incurred and expected to

Notes to Financial Statement Page40

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

be compensable, and the service costs incurred are recognized as period charges. If the service

costs incurred are not compensable as expected, the revenue is not recognized.

(5) Sales of goods

When the commodity is delivered to the customer's site and accepted by the customer, the

customer obtains the right to control the commodity, and the Group recognizes the revenue at the

same time.

(XXXIV)Government subsidies

1. Types

Government subsidies refer to monetary or non-monetary assets acquired by the Group free

of charge from the government and are divided into asset-related government subsidies and

revenue-related government subsidies.

Asset-related government subsidies refer to the government subsidies that are obtained by the

Group and used for constructing long-term assets, or forming the long-term assets in other ways.

Revenue-related government subsidies refer to those other than asset-related government

subsidies.

The specific criteria for the Group to classify government subsidies as asset-related are:

government subsidies, as specified by the government document, obtained and used for

acquisition, construction or other formation of long-term assets.

Government subsidies are classified as revenue-related subsidies based on the clear

stipulations in government documents and that there are no government subsidies other than those

related to assets.

If the subsidy object is not clearly specified in the government documents, the Group divides

the government subsidy into asset-related or income-related government subsidies based on the

specific reasons for government subsidies and whether it is used for asset-related government

subsidies or government subsidies other than asset-related government subsidies.

2. Time point of recognition

The government subsidies shall be recognized only after they meet all of the following

conditions:

(1) The enterprise can meet the conditions for acquisition of government subsidies;

(2) The enterprise receives the government subsidies.

3. Accounting treatment

Asset-related government subsidies shall be used to offset the book value of the related assets

or recognized as deferred incomes. Where a grant is recognized as deferred income, it shall be

Notes to Financial Statement Page41

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

reasonably and systematically included, by stages, in the current profit and loss (or in other

income where it is related to the day-to-day activities of the Group, or in non-operating incomes

where it is irrelevant to the day-to-day activities of the Group) during the useful life of the relevant

asset;

The revenue-related government subsidies used to compensate for the related costs or losses

in the subsequent periods shall be recognized as deferred income and included in the current profit

and loss (or in other income where it is related to the day-to-day activities of the Group, or in

non-operating income where it is irrelevant to the day-to-day activities of the Group) or used to

offset the relevant costs or losses while those used to compensate for the related costs or losses

incurred shall be included in the current profit and loss (or in other income where it is related to

the day-to-day activities of the Group, or in non-operating income where it is irrelevant to the

day-to-day activities of the Group) or used to offset relevant costs or loses.

The discount of policy-based preferential loans obtained by the Group shall be accounted

according to the following two conditions:

(1) In the situation where public finance departments appropriate the discount interest funds

to the loan banks, if the loan banks provide loans to the Group at a preferential policy interest rate,

the Group takes the actually received loan amount as the entry value of the loans and calculates

the relevant borrowing costs according to the loan principal and the policy preferential interest

rate.

(2) Where the finance directly allocates the discount fund to the Group, the Group uses the

corresponding discount to offset relevant loan expenses.

(XXXV) Deferred income tax assets and deferred income tax liabilities

Deferred income tax assets and deferred income tax liabilities of the Group shall be

recognized by calculating the difference (temporary difference) between the tax base and book

value thereof. For the deductible loss of taxable income that can be deducted in the future years as

specified by tax laws, corresponding deferred income tax assets shall be recognized. For

temporary difference from initial recognition of goodwill, relevant deferred income tax liabilities

shall not be recognized. For the temporary difference with respect to initial recognition of assets or

liabilities incurred in transaction which is not business combination and the occurrence of which

has no impact on the accounting profits and the taxable income (or deductible losses), relevant

deferred income tax assets and liabilities shall not be recognized. Deferred income tax assets and

liabilities shall be measured at applicable tax rate during the anticipated period for recovering such

assets or paying off such liabilities on the balance sheet date.

Notes to Financial Statement Page42

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

The deferred income tax assets shall be recognized to the extent of the future taxable income

likely to be obtained for deducting deductible temporary difference, deductible loss, and tax

deduction by the Group.

(XXXVI)Lease

1. Identification of lease

Lease refers to a contract that the lessor transfers the right to use the asset to the lessee for

acquiring consideration within a certain period of time. On the commencement date of a contract,

the Group evaluates whether the contract is a lease or includes a lease. If one party to the contract

abalienates the right to control the use of one or more identified assets within a certain period of

time in exchange for consideration, the contract is a lease or includes a lease. In order to determine

whether one party to the contract has abalienated the right to control the use of the identified assets

within a certain period of time, the Group evaluates whether the customers in the contract are

entitled to obtain almost all the economic benefits arising from the use of the identified assets

during the use period and to dominate the use of the identified assets during the use period.

If the contract contains multiple separate leases at the same time, the Group will split the

contract and carry out accounting treatment for each separate lease. If the contract includes both

lease and non-lease parts, the Group will split the lease and non-lease parts and then carry out

accounting treatment.

2. The Group as the lessee

(1) Recognition of leases

At the commencement of the lease term, the Group recognizes the right-of-use asset and lease

liabilities for the lease. For the recognition and measurement of right-of-use assets and lease

liabilities, please refer to Note "(XXIII) Right-of-use Assets" and "(XXIX) Lease Liabilities".

(2) Lease change

Lease change refers to the change of lease scope, lease consideration and lease term beyond

the original contract terms, including the addition or termination of the right to use one or more

leased assets, and the extension or shortening of the lease term specified in the contract, etc. The

effective date of lease change refers to the date when both parties reach an agreement on lease

change.

If the lease changes and meets the following conditions at the same time, the Group will take

the lease change as a separate lease for the accounting treatment: ①the lease change expands the

lease scope or extend the lease term by increasing the right to use one or more leased assets, and

②the increased consideration is equivalent to the amount by adjusting the separate price of the

Notes to Financial Statement Page43

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

expanded lease scope or the extended lease term according to the contract.

If the lease change is not taken as a separate lease for the accounting treatment, the Group

will, on the effective date of the lease change, apportion the consideration of the changed contract

in accordance with the relevant provisions of the leasing standards, and redetermine the changed

lease term; and use the revised discount rate to discount the changed lease payment to remeasure

the lease liabilities. In calculating the present value of the changed lease payment, the Group

adopts the interest rate implicit in lease in the remaining lease term as the discount rate. If it is

impossible to determine the interest rate implicit in lease in the remaining lease term, the Group

will adopt the lessee's incremental borrowing rate at the effective date of the lease change as the

discount rate. As for the impact of the above adjustment of lease liabilities, the Group carries out

the accounting treatment according to the following circumstances: ① if the lease scope is

reduced or the lease term is shortened due to the lease change, the lessee shall reduce the book

value of the right-of-use asset and include the relevant gains or losses from the partial termination

or complete termination of the lease into the current profits and losses. ② if the lease liabilities are

remeasured due to the other lease changes, the lessee shall adjust the book value of the

right-of-use asset accordingly.

(3) Short-term lease and low-value asset lease

For the short-term lease with a lease term of not more than 12 months and low-value asset

lease with a lower value when a single leased asset is brand new, the Group chooses not to

recognize the right-of-use asset and lease liabilities. The Group will include the lease payment for

short-term lease and low-value asset lease into the related asset cost or current profits and losses

by the straight-line method or other systematic and reasonable methods during each lease term.

3. The Group as the leaser

On the basis that the contract evaluated in (1) is the lease or includes the lease, the Group, as

the lessor, divides the lease into finance leases and operating leases on the lease commencement

date.

If a lease substantially transfers almost all the risks and rewards related to the ownership of

the leased asset, the lessor shall classify the lease as a finance lease and other leases other than the

finance lease as operating leases.

If a lease has one or more of the following circumstances, the Group usually classifies it as a

finance lease: ①When the lease term expires, the ownership of the leased assets is transferred to

the lessee; ②The lessee has the option to purchase the leased assets, and the purchase price is low

enough compared with the fair value of the leased assets when the option is expected to be

exercised, so it can be reasonably determined that the lessee will exercise the option on the lease

Notes to Financial Statement Page44

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

start date; ③Although the ownership of the assets is not transferred, the lease period accounts for

most of the useful life of the leased assets (not less than 75% of the useful life of the leased assets);

④On the lease start date, the present value of lease receipts is almost equal to the fair value of

leased assets (not less than 90% of the fair value of leased assets.); ⑤The property of the leasing

assets is special. The leasing assets can be used by the leasee only, if not changed significantly. If a

lease has one or more of the following signs, the Group may also classify it as a finance lease: ①If

the lessee cancels the lease, the lessee shall bear the losses caused to the lessor by the cancellation

of the lease; ②The gain or loss arising from the fluctuation of the fair value of the residual value

of assets belongs to the lessee;③The lessee has the ability to renew the lease for the next period at

a rent far below the market level.

(1) Accounting treatment for finance lease

Initial measurement

At the commencement of the lease term, the Group recognizes the finance lease receivables

for the finance lease and derecognizes the finance leasing assets. When the Group initially

measures the finance lease receivables, the net investment in a lease is taken as the entry value of

the finance lease receivables.

The net investment in a lease is equivalent to the sum of the unguaranteed residual value and

the present value of the lease receipts that have not yet been received at the commencement of the

lease term which is discounted at the interest rate implicit in the lease. The lease receipts refer to

the amount that the lessor should collect from the lessee due to the transfer of right to use the

leased asset during the lease term, including: ① the fixed payment and the substantial fixed

payment that the lessee needs to pay; if there is the lease incentive, the relevant amount of lease

incentive shall be deducted; ② variable lease payment depending on index or ratio, which is

determined according to the index or ratio at the commencement of the lease term during initial

measurement; ③ the exercise price of purchase option, provided that it reasonably determines that

the lessee will exercise the option; ④ the amount to be paid by the lessee for exercising the option

to terminate the lease, provided that the lease term reflects that the lessee will exercise the option

to terminate the lease; and ⑤ the guaranteed residual value provided by the lessee, the party

related to the lessee and an independent third party that has the economical ability to perform the

guarantee obligation to the lessor.

Subsequent measurement

The Group calculates and recognizes interest income in each lease term at a fixed periodic

rate. The periodic rate means that the implicit discount rate is adopted by determining the net

investment in a lease (in case of sublease, if the implicit interest rate of sublease cannot be

Notes to Financial Statement Page45

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

determined, the discount rate of the original lease is adopted (adjusted according to the initial

direct expenses related to sublease)), or the change in finance lease is not taken as a separate lease

for the accounting treatment and meets the revised discount rate determined according to relevant

regulations when the lease is classified as the finance lease condition if the change takes effect on

the lease commencement date.

Accounting treatment of lease change

If the finance lease changes and meets the following conditions, the Group will take the

change as a separate lease for accounting treatment: ① the change expands the lease scope by

increasing the right to use one or more leased assets; and ② the increased consideration is

equivalent to the amount by adjusting the separate price of the expanded lease scope according to

the contract.

If the change in finance lease is not taken as a separate lease for the accounting treatment,

and takes effect on the lease commencement date, the lease will be classified as an operating lease

condition, and the Group will take it as a new lease for the accounting treatment from the effective

date of lease change and take the net investment in a lease before the effective date of lease change

as the book value of the leased asset.

(2) Accounting treatment of operating lease

Treatment of rent

In each lease term, the Group will recognize the lease amount of operating lease as the rental

income by the straight-line method.

Incentives provided

Where a rent-free period is provided, the Group will distribute the total rent by the

straight-line method throughout the lease term without deduction of rent-free period, and the rental

income shall be recognized during the rent-free period. Where the Group assumes some expenses

of the lessee, such expenses will be deducted from the total rent income and distribute the balance

of rental income, and the balance of the deducted rental income will be apportioned in the lease

term.

Initial direct expense

The initial direct expense incurred by the Group relating to the operating lease shall be

capitalized to the cost of the underlying asset of the lease, and shall be included in the current

profits and losses in stages during the lease term according to the same recognition basis as rental

income.

Depreciation

The fixed assets in the assets under operating lease will the depreciated according to the

Notes to Financial Statement Page46

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

depreciation policies applied by the Group for similar assets; and other assets under operating

lease shall be amortized in a systematic and reasonable way.

Variable lease payment

The Group's variable lease payment which is related to operating lease and not included in

lease receipts is included in the current profits and losses when is actually occurs.

Change in operating lease

If there is a change in the operating lease, the Group will take it as a new lease from the

effective date of change, and the lease receipts received in advance or receivable related to the

lease before the change will be regarded as the receipts for the new lease.

(XXXVII) Held-for-sale

1.The Group recognizes the non-current assets or disposal groups meeting all the following

conditions as the held-for-sale assets:

(1) Based on the practice of selling such assets or disposal groups in similar transactions,

those can be sold immediately under current conditions;

(2) Their sales are very likely to happen, that is, a resolution on a sales plan has been made

and a certain purchase commitment is obtained and their sales are expected to be completed within

one year. Relevant regulations require that the relevant approval needs to be obtained for those

available for sale after approval by relevant authorities or regulators. Before the non-current assets

or disposal groups are classified as the held-for-sale assets for the first time, the Group shall

measure the book value of each asset and liability in the non-current assets or disposal groups in

accordance with the relevant accounting standards. When the non-current assets or disposal groups

held for sale are measured initially or remeasured on the balance sheet date, if the book value is

higher than the net amount obtained by deducting the selling expenses from the fair value, the

book value shall be reduced to the net amount obtained by deducting the selling expenses from the

fair value, and the write-down amount shall be recognized as the asset impairment losses and shall

be included in the current profits or losses and the impairment provision of held-for-sale assets

shall be made at the same time.

2. The Group classifies the non-current assets or disposal groups that are acquired exclusively

for resale, meet the conditions of “the sales are expected to be completed within one year” on the

acquisition date and are likely to meet other conditions for held-for-sale assets in a short time

(usually three months) as the held-for-sale assets on the acquisition date. In the initial

measurement, the initial measurement amount assuming they are not classified as the held-for-sale

assets and the net amount obtained by deducting the selling expenses from the fair value are

Notes to Financial Statement Page47

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

compared, whichever is less. Except for the non-current assets or disposal groups acquired in the

business combination, the difference arising from the net amount obtained by deducting the selling

expenses from the fair value in the non-current assets or disposal groups as the initial

measurement amount shall be included in the current profits or losses.

3. If the Group loses control over its subsidiaries due to the sales of investment in subsidiaries

and other reasons, whether the Group reserves some of its equity investments after the sales or not,

when the investment in subsidiaries to be sold meets the conditions for the held-for-sale assets, the

investment in subsidiaries will be classified as the held-for-sale assets as a whole in the individual

financial statements of the company and all the assets and liabilities of subsidiaries will be

classified as the held-for-sale assets in the consolidated financial statements.

4. If the net amount obtained by deducting the selling expenses from the fair value of

non-current assets held for sale on the subsequent balance sheet date increases, the previous

write-down amount shall be recovered and reversed from the asset impairment losses recognized

after being classified as the held-for-sale assets, and the reversed amount shall be included in the

current profits or losses. The asset impairment losses recognized before being classified as the

held-for-sale assets shall not be reversed.

5. For the asset impairment losses recognized in the disposal group held for sale, the book

value of the goodwill in the disposal group shall be deducted, and then the book value shall be

deducted proportionately based on the proportion of the book value of each non-current asset.

If the net amount obtained by deducting the selling expenses from the fair value of disposal

groups held for sale on the subsequent balance sheet date increases, the previous write-down

amount shall be recovered and reversed from the asset impairment losses recognized in the

non-current assets applicable to the relevant measurement rules after being classified as the

held-for-sale assets, and the reversed amount shall be included in the current profits or losses. The

book value of goodwill deducted and the asset impairment losses recognized in the non-current

assets before being classified as the held-for-sale assets shall not be reversed.

For the subsequently reversed amount of asset impairment losses recognized in the disposal

group held for sale, the book value shall be increased proportionately based on the proportion of

the book value of each non-current asset other than the goodwill in the disposal group.

6. No depreciation or amortization is provided for non-current assets held for sale or

non-current assets in the disposal group. The interest of liabilities and other expenses in the

disposal group held for sale shall be recognized continuously.

7. When the non-current assets or disposal groups held for sale are not further classified as

the held-for-sale assets or the non-current assets are removed from the disposal groups held for

Notes to Financial Statement Page48

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

sale due to failure to meet the conditions for the held-for-sale assets, the measurement shall be

conducted based on the lower of the following two: 1) book value before being classified as the

held-for-sale assets based on the amount of depreciation, amortization or impairment after

adjustment that should be recognized in the case that assuming they are not classified as the

held-for-sale assets; 2) recoverable amount.

8. When the non-current assets or disposal groups held for sale are derecognized, the

unrecognized gains or losses shall be included in the current profits or losses.

(XXXVIII)

Safety production cost

The Group will calculate the safety production cost based on the standard of electric power

manufacturer, and take the operating income of previous year as a basis and adopt the excess

regressive mode to determine the amount to be calculated of current year and make calculation

monthly according to the Notice on Issuing the Administrative Measures for Calculation and Use

of Enterprise Safety Production Cost (CZ[2022]No.136) issued by the Ministry of Finance.

(XXXIX)Discontinued operations

Discontinued operations refer to the components of the Group which meet one of the

following conditions, which could be separately distinguished, and that such components have

been disposed or been classified as the type of held for sale assets: (1) Such components represent

an independent main business or separate main operating areas; (2) Such components are parts of

a related plan to dispose of an independent main business or a separate main business area; (3)

Such components are subsidiaries specially acquired for resale.

(XL) Changes in key accounting policies and estimates

Changes in key accounting policies

(1) Implement the regulation on “accounting treatment when the deferred income tax in

relation to the asset and liability produced from single transaction is inapplicable to exemption of

initial recognition” in the Interpretation No.16 of Accounting Standards for Business Enterprise.

On November 30, 2022, the Ministry of Finance publicized the Interpretation No.16 of

Accounting Standards for Business Enterprise (CK[2022]No.31, hereinafter referred to as

“Interpretation No.16”), of which the regulation on “accounting treatment when the deferred

income tax in relation to the asset and liability produced from single transaction is inapplicable to

exemption of initial recognition” would come into force from January 1, 2023.

The Interpretation No.16 specifies that if the single transaction which is not business

Notes to Financial Statement Page49

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

combination, produces no effect on the accounting profit and the taxable income (or deductible

loss) when occurring, and produces the equivalent amount of taxable temporary difference and

deductible temporary difference due to the initially recognized asset and liability (including the

lease transaction where the lessee, on the lease commencement date, initially recognizes lease

liability and charges it to the right-of-use asset, and the single transaction where the fixed asset is

recognized as estimated liability due to the existence of retirement obligation and charged to

relevant asset cost) is not applicable to the exemption of deferred income tax liability and deferred

income tax asset, enterprise shall, when the transaction occurs, recognize relevant deferred income

tax liability and deferred income tax asset respectively as required in the Accounting Standards for

Business Enterprise No.18-Income Tax.

For the single transaction which occurs from the beginning of the financial statement

presentation period in which the regulation is implemented for the first time to the implementation

date, the lease liability and right-of-use asset recognized due to the single transaction that is

applicable to the regulation at the beginning of the financial statement presentation period and

relevant estimated liability and asset of the recognized retirement obligation, if they produce

taxable temporary difference and deductible temporary difference, enterprise shall make

adjustment according to the regulation.

The Group implemented the regulation from January 1, 2023 and main effects of such

regulation were as follows:

Effect on the balance on January 1, 2022

Content and reason of accounting policy

change

Affected item

Consolidated

The company

On November 30, 2022, the Ministry of

Finance publicized the Interpretation No.16

of Accounting Standards for Business

Enterprise (CK[2022]No.31, hereinafter

referred to as “Interpretation No.16”),

including the accounting treatment on

“accounting treatment when the deferred

income tax in relation to the asset and

liability produced from single transaction is

inapplicable to exemption of initial

Deferred income tax

liabilities

45,194,682.29

Deferred income tax

assets

41,650,009.31

-3,587,338.90

No effect

Retained earnings

Minority shareholders’

interest

recognition” which was implemented by the

Group from January 1, 2023.

42,665.92

Consolidated

The company

Content and reason of accounting policy

change

Affected item

December 31, 2022

/Year 2022

No effect

Notes to Financial Statement Page50

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Consolidated

The company

Content and reason of accounting policy

Affected item

December 31, 2022

/Year 2022

change

Deferred income tax

liabilities

48,170,645.84

45,063,421.10

On November 30, 2022, the Ministry of

Finance publicized the Interpretation No.16

of Accounting Standards for Business

Enterprise (CK[2022]No.31, hereinafter

referred to as “Interpretation No.16”),

including the accounting treatment on

“accounting treatment when the deferred

income tax in relation to the asset and

liability produced from single transaction is

inapplicable to exemption of initial

Deferred income tax

assets

No effect

Income tax expense

Minority interest income

retained earnings

437,448.24

-864,156.78

-2,285,733.88

-821,490.86

recognition” which was implemented by the

Group from January 1, 2023.

Minority equity

Changes in key accounting estimates

The Group has no change in key accounting estimates in current period.

IV.

(I)

Tax

Main tax type and tax rate

Applicable

tax rate (%)

Types of tax

Tax basis

Calculate output tax on the basis of income from the sale of goods

and taxable services in accordance with the provisions of the tax

law, and after deducting the input tax allowable for deduction in the

current period, the difference will be the value-added tax payable

13、9、6

Value-added tax (VAT)

The Group also has operations that are subject to VAT on a

simplified basis without input tax credit

5、3

Subsidiaries of the Group also have small-sized taxpayers under the

simplified tax regime without input tax credit

7、5、1

Urban maintenance and construction tax

Education surcharge

Based on actual VAT and consumption tax paid

Based on taxable income

Local surcharge

Based on taxable income

25、22、20、

19、17、15

Corporate income tax

Based on taxable income

Description on the tax payers applicable to different enterprise income tax rate:

Notes to Financial Statement Page51

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Applicable tax rate

(%)

Name of tax payer

SDIC Power Holdings Co., Ltd., SDIC Guizhou Power Sales Co., Ltd., SDIC New Energy

Investment Co., Ltd., SDIC Gansu Power Sales Co., Ltd., SDIC KingRock Overseas Investment

Management Co., Ltd., Tianjin SDIC Jinneng Electric Power Co., Ltd., Tianjin Beijiang

Environmental Protection Technology Co., Ltd., Yalong River Sichuan Energy Co.,Ltd., Yalong

River (Yanyuan) New Energy Co., Ltd., Yalong River (Xichang) New Energy Co., Ltd., Xiamen

Huaxia International Power Development Co., Ltd., SDIC Huanneng Electric Power Co.,Ltd.,

Newsky (China) Environment & Technology Co., Ltd., Guizhou Newsky Environment & Tech

Co.,Ltd., Huzhou Xianghui Photovoltaic Power Co., Ltd., Xiangshui Hengneng Solar Power Co.,

Ltd., Xiangshui Yongneng Solar Power Co., Ltd., Zhangjiakou Jinko New Energy Co., Ltd., Guyuan

Guanghui New Energy Power Co., Ltd., Shenyang Jingbu Photovoltaic Power Co., Ltd., Fuxin

Jingbu Solar Power Co., Ltd., Hengfeng Jinko Electric Power Co., Ltd., SDIC Genting Meizhouwan

Electric Power Company Limited, Hainan Dongfang Gaopai Wind Power Co., Ltd., SDIC Qinzhou

Second Power Co., Ltd., SDIC (Hainan) New Energy Co., Ltd., SDIC Jineng (Zhoushan) Gas Power

Generation Co., Ltd., Changzhou Tiansui New Energy Co., Ltd., Suixi Tianhuai New Energy Co.,

Ltd., Jiangsu Tiansai New Energy Development Co., Ltd., Yingshang Runneng New Energy Co.,

Ltd., Yancheng Zhihui Energy Power Co., Ltd., Guizhou Newsky Kitchen Waste Treatment Co.,

Ltd., SDIC (Hunan Anren) Pumped Storage Co., Ltd.,Yunxian Qianrun New Energy Co., Ltd.,

Yuanjiang Qianrun New Energy Co., Ltd., Ruoqiang Guoli New Energy Co., Ltd., Pingyang Aoqi

New Energy Co., Ltd., Pingtang Yueyang New Energy Co., Ltd., Manas Guoli New Energy Co.,

Ltd., Huaning Ganrun New Energy Co., Ltd., SDIC Yunnan New Energy Technology Co., Ltd.,

SDIC Yichang New Energy Co., Ltd., SDIC Shiyan New Energy Co., Ltd., SDIC Shanxi Hejin

Pumped Storage Co., Ltd., SDIC Jilin Dunhua Pumped Storage Co., Ltd., SDIC (Guangdong)

Offshore Wind Power Development Co., Ltd., Yalong River (Muli) New Energy Co., Ltd., Xiamen

Huaxia Electric Energy Sales Co., Ltd., Panzhou Guoneng New Energy Co., Ltd., SDIC Bangda

(Hainan) New Energy Co., Ltd., Guangxi Guoling New Energy Co., Ltd., Kunming Dongchuan

Ganrun New Energy Co., Ltd., SDIC Inner Mongolia New Energy Development Co., Ltd., SDIC

Shaanxi New Energy Co., Ltd., Dongying Shengyue New Energy Co., Ltd., Shangyi Ruida New

Energy Co., Ltd., Tianjin Binhai Guoli New Energy Co., Ltd., Yuxi Ganrun New Energy Co., Ltd.,

Zhangjiakou Kaitou New Energy Co., Ltd., SDIC Genting Meizhouwan (Putian) New Energy Co.,

Ltd. Guangxi Guokai Energy Sales Co., Ltd., Guangxi Qinqin Power Sales Co., Ltd., SDIC Yunnan

New Energy Co., Ltd., SDIC Dali Photovoltaic Power Co., Ltd., Tianjin Baodi Huifeng New Energy

Co., Ltd., SDIC New Energy (Honghe) Co., Ltd., SDIC Guizhou New Energy Co., Ltd., Guiding

Guoneng New Energy Co., Ltd., Ceheng Huifeng New Energy Co., Ltd., Yangquan Guoli New

Energy Co., Ltd., SDIC Zhejiang New Energy Co., Ltd., Pubei Yuanli New Energy Co., Ltd., SDIC

Tibet Renbu New Energy Co., Ltd., SDIC Tibet Nyima New Energy Co., Ltd., Zhangjiakou Fufeng

New Energy Co., Ltd SDIC Guangxi New Energy Development Co., LTD., Ningxiang Gushan New

Energy Development Co., LTD., Tianjin SDIC New Energy Co., LTD., SDIC Chuxiong Wind

Power Co., LTD., Yalong River (Litang) New Energy Co., LTD., Yudu Guoli New Energy Co.,

LTD., SDIC (Huilai) Kuiyang New Energy Co., LTD., Mizhi Guoyuan New Energy Co., LTD.,

Yunnan Kunming Wuhua District Gangrun New Energy SDIC (Qionghai) New Energy Co., LTD.,

SDIC Tibet Seni New Energy Co., LTD., SDIC Tibet Nierong New Energy Co., LTD., Shilin

County Qianrun New Energy Co., LTD., SDIC (Shandong) New Energy Co., LTD., SDIC (Fujian)

New Energy Co., LTD., Xingtai Guoli New Energy Co., LTD., SDIC Meizhou Bay (Putian) Power

Generation Co., LTD., Xundian County Gan Run New Energy Co., LTD., Zhangjiakou Yuanli New

Energy Co., LTD., Zhangzhou Gulei Guozhang New Energy Co., LTD., Tongcheng Jinjia New

Energy Co., LTD., Chengde Lifeng New Energy Co., LTD.

PT Dharma Hydro Nusantara、PT North Sumatera Hydro Energy

SDIC Jiangsu New Energy Co., Ltd., SDIC New Energy Co., Ltd., SDIC Xinjiang New Energy Co.,

Ltd., SDIC Meizhouwan Power Sales Co., Ltd., Newsky Energy (Thailand) Company Limited,

Newsky Energy (Bangkok) Company Limited, C&G Environment Protection (Thailand) Company

Limited, Newsky (Philippines) Holdings Corporation

Red Rock Investment Limited, Red Rock Power Limited, Beatrice Wind Limited, Afton Wind Farm

Limited, Afton Wind Farm (Holdings) Limited, Afton Wind Farm (BMO) Limited, Benbrack Wind

Farm Limited, Aska Windfarm Holdings Limited

Jaderock Investment Singapore Pte.Ltd., Fareast Green Energy Pte.Ltd., Asia Ecoenergy

Development B Pte.Ltd., Asia Ecoenergy Development A Pte.Ltd.

Notes to Financial Statement Page52

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Applicable tax rate

(%)

Name of tax payer

SDIC Panjiang Power Co., Ltd., SDIC Qinzhou Electric Power Co., Ltd., SDIC Baiyin Wind Power

Co., Ltd., SDIC Jiuquan No. 1 Wind Power Co., Ltd., SDIC Jiuquan No. 2 Wind Power Co., Ltd.,

SDIC Qinghai Wind Power Co., Ltd., SDIC Turfan Wind Power Co., Ltd., SDIC Ningxia Wind

Power Co., Ltd., SDIC Dunhuang PV Power Generation Co., Ltd., SDIC Shizuishan PV Power

Generation Co., Ltd., SDIC Golmud PV Power Generation Co., Ltd., SDIC Guangxi Wind Power

Co., Ltd.,SDIC SDIC Hami Wind Power Co., Ltd., Yalong River Hydropower Development Co.,

Ltd.,Sichuan Ertan Industrial Development Co., Ltd.,Yalong River hydropower Liangshan Co., LTD

Yalong River Huili New Energy Co., Ltd., Yalong River Mian'ning New Energy Co., Ltd.,Dechang

Wind Power Development Co., Ltd SDIC Yunnan Dachaoshan Hydropower Co., Ltd., SDIC Aksay

New Energy Co., Ltd.,Toksun Trina Solar Co., Ltd., Dingbian Angli Photovoltaic Technology Co.,

Ltd., Jingbian Zhiguang New Energy Development Co.,SDIC Gansu Xiaosanxia Power Co., Ltd.,

SDIC Jiuquan New Energy Co., Ltd., SDIC Jiuquan New Energy Co., Ltd., Sichuan Ertan

Construction Consulting Co., Ltd. Yalong River Hydropower Panzhihua Co., LTD., Yalong River

(Yajiang) New Energy Co., LTD., Guangxi Guoqin Energy Co., LTD., SDIC Gansu New Energy

Co., LTD., Aksai Kazakh Autonomous County Huidong New Energy Co., LTD., Quanzhou

Yuansheng New Energy Co., LTD., Pubei Yuansheng New Energy Co., LTD., Aksai Kazakh

Autonomous County Boying Energy Co., LTD., Yalong River hydro power Ganzi Co., LTD., SDIC

(Ordos City) New energy Co., LTD

(II)

Tax preference

(1) Income tax

1) According to the Notice on Continuing the Enterprise Income Tax Policy of the Western

Region Development Strategy (No.23 Notice of the Ministry of Finance in 2020) issued by

Ministry of Finance, State Administration of Taxation and National Development and Reform

Commission, from 2022 the following subsidiaries of the Group continued implementing the

income tax preference of the Western Region Development Strategy at the tax rate of 15%:

SDIC Panjiang Electric Power Co., Ltd., SDIC Qinzhou Electric Power Co., Ltd., SDIC

Baiyin Wind Power Co., Ltd., SDIC Qiuquan First Wind Power Co., Ltd., SDIC Qiuquan Second

Wind Power Co., Ltd., SDIC Qinghai Wind Power Co., Ltd., SDI Turpan Wind Power Co., Ltd.,

SDIC Ningxia Wind Power Co., Ltd., SDIC Dunhuang Photovoltaic Power Co., Ltd., SDIC

Shizuishan Photovoltaic Power Co., Ltd., SDIC Geermu Photovoltaic Power Co., Ltd., SDIC

Guangxi Wind Power Co., Ltd., SDIC Hami Wind Power Co., Ltd., Yalong River Hydropower

Development Co., Ltd., Sichuan Ertan Industrial Development Co., Ltd., Yalong River

Hydropower Liangshan Co., Ltd., Yalong River Huili New Energy Co., Ltd., Yalong River

Mianning New Energy Co., Ltd., Dechang Wind Power Development Co., Ltd., SDIC Yunnan

Dachaoshan Hydropower Co., Ltd., SDIC Aksay New Energy Co., Ltd., Toksun Trina Solar

Energy Co., Ltd., Dingbian Angli Photovoltaic Technology Co., Ltd., Jingbian Zhiguang New

Energy Development Co., Ltd., SDIC Gansu Xiaosanxia Power Co., Ltd., SDIC Jiuquan New

Energy Co., Ltd., SDIC Barkol New Energy Co., Ltd., Sichuan Ertan Construction Consultancy

Co., Ltd., Yalong River Hydropower Panzhihua Co., Ltd., Yalong River (Yajiang) New Energy Co.,

Ltd., Guangxi Guoqin Energy Co., Ltd., SDIC Yan’an New Energy Co., Ltd., SDIC Gansu New

Notes to Financial Statement Page53

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Energy Co., Ltd., Aksay Kazakh Autonomous County Huidong New Energy Co., Ltd., SDIC

(Erdos City) New Energy Co., Ltd., Quanzhou Yuansheng New Energy Co., Ltd., Pubei

Yuansheng New Energy Co., Ltd., Aksay Kazakh Autonomous County Boying Energy Co., Ltd.

2) In accordance with the regulations in Enterprise Income tax Law of the People's Republic

of China, Notification on Promulgating the Enterprise Income Tax Preference Catalog (2008) of

Public Infrastructure Projects by Ministry of Finance, State Administration of Taxation and

National Development and Reform Commission (CS[2008]No.116), and Notification on

Implementing the Income Tax Preference of Public Infrastructure Project with National Special

Support by Station Administration of Taxation (GSF[2009]No.80), the following company can be

exempted from income tax for the first 3 years, and half exempted for the next 3 years:

Half-exemption

period

Company name

Exemption period

Remark

Cida wind farm

(phase VI) project

Dechang Wind Power Development Co., Ltd.

2019

2020

2021

2022

2024

2025

Tielu wind farm

(phase VII) project

2023

2024

Guizhou

Liupanshui kitchen

waste--municipal

sludge treatment

project

Guizhou Newsky Kitchen Waste Treatment Co., Ltd.

2021

2023

2026

Binchuan phase II

project

SDIC Dali Photovoltaic Power Co., Ltd.

SDIC Guangxi Wind Power Co., Ltd.

2018

2020

2021

2023

Pubei Longmen

wind farm phase I

project

Pubei Longmen

wind farm phase II

project

SDIC Guangxi Wind Power Co., Ltd.

2020

2022

2024

2023

2025

2027

Pubei Longmen

wind farm phase

III project

SDIC Hami Wind Power Co., Ltd.

2020

2023

2022

2025

2023

2026

2025

2028

Jingxia 5B project

Yiwu solar +

storage

SDIC Hami Wind Power Co., Ltd.

SDIC Ningxia Wind Power Co., Ltd.

2022

2020

2024

2022

2025

2023

2027

2025

Jiangxia PV

SDIC Zhongning

Enhe wind power

Notes to Financial Statement Page54

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Half-exemption

period

Company name

Exemption period

Remark

project

SDIC Qinghai Wind Power Co., Ltd.

Suixi Tianhuai New Energy Co., Ltd.

Tianjin SDIC New Energy Co., Ltd.

2021

2018

2021

2023

2020

2023

2024

2021

2024

2026

2023

2026

Qieji project

Renwei PV power

station project

Ninghe project

Lianghekou

hydropower station

project

Yalong River Hydropower Garze Co., Ltd.

2021

2023

2024

2026

Yangfanggou

hydropower station

project

Yalong River Hydropower Liangshan Co., Ltd.

130MW water

surface PV project

Yingshang Runneng New Energy Co., Ltd.

Fuxin Jingbu Solar Power Co.,Ltd.

2018

2022

2020

2024

2021

2025

2023

2027

100MW solar +

farming project

Pingtang

Tongzhou

Yueyang farming

PV power station

Pingtang Leyang NewEnergy Co., Ltd.

2022

2024

2025

2027

Guazhou

Beidaqiao second

wind farm wind +

solar 50MW PV

project

SDIC Jingyuan Second Wind Power Co., Ltd.

SDIC Qiaonan

second 400MW

supporting wind

power (areas A

and B)

SDIC Jiuquan New Energy Co., Ltd.

2022

2024

2025

2027

Moon Lake wind

power

SDIC (Ordos City) New Energy Co., Ltd.

2022

2023

2024

2025

2026

2027

2028

Yalong River (Yajiang) New Energy Co., Ltd.

Kela PV project

Tianhuai Suixi

Nanping mining

subsidence area

40MW water

surface PV power

project

Changzhou Tiansui New Energy Co., Ltd.

2018

2020

2021

2023

Yingshang

Gucheng mining

subsidence area

130MW water

surface PV power

Jiangsu Tiansai New Energy Development Co., Ltd.

Notes to Financial Statement Page55

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Half-exemption

period

Company name

Exemption period

Remark

station project

Dachaoshanxi

phase I and II

project

Yunxian Ganrun New Energy Co., Ltd.

Yuanjiang Ganrun New Energy Co., Ltd.

Yuxi Ganrun New Energy Co., Ltd.

2023

2025

2026

2028

Yuxi Yuanjiang

Ganba PV power

station; Yuxi

Yuanjiang

Pulichong PV

power station

2026

Yuxi Hongta

roof-distributed

PV power project

3) According to the Notice on Further Implementation of Income Tax Preference Policy for

Small and Micro Enterprises (MOF and SAT No.13 Notice in 2022) and the Notice on Income Tax

Preference Policy for Small and Micro Enterprises and Individual Business (MOF and SAT No.6

Notice in 2023), from January 1, 2023 to December 31, 2024, for the part not greater than 1

million Yuan of the taxable income in the small and micro enterprises, it shall be reduced to 25%

and charged to taxable income, and the enterprise income tax shall be paid at a tax rate of 20%;

For the part greater than 1 million Yuan but not greater than 3 million Yuan, it shall be reduced to

25% and charged to taxable income, and the enterprise income tax shall be paid at a tax rate of

20%:

SDIC Yunnan Dachaoshan Hydropower Co., Ltd., SDIC Jiangsu New Energy Co., Ltd.,

SDIC New Energy Co., Ltd., SDIC Xinjiang New Energy Co., Ltd., SDIC Tibet New Energy Co.,

Ltd., SDIC Guizhou New Energy Co., Ltd., SDIC Guangxi New Energy Development Co., Ltd.,

Quanzhou Yuansheng New Energy Co., Ltd., SDIC Hebei New Energy Co., Ltd., SDIC Inner

Mongolia New Energy Development Co., Ltd., SDIC Shaanxi New Energy Co., Ltd., Zhangjiakou

Kaitou New Energy Co., Ltd., Yangquan Guoli New Energy Co., Ltd., Zhangjiakou Fufeng New

Energy Co., Ltd., SDIC Qinghai New Energy Co., Ltd.

4) According to BOI certificate issued by Thailand Board of Investment in light of Investment

Promotion Act (B.E. 2520), ① as specified in item 1, Section 31, a promoted person shall be

granted exemption of juristic person income tax on the net profit derived from the promoted

activity, but not exceeding 100% of total investment excluding cost of land and working capital;

the exemption period shall be eight years from the date when the first income is obtained from

incineration of solid waste; ② as specified in item 2, Section 31, a promoted person shall be

Notes to Financial Statement Page56

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

granted exemption of juristic person income tax on the net profit derived from the promoted

activity, and the exemption period shall be eight years from the month when the first income is

obtained from solid waste-to-power generation business: C&G Environment Protection (Thailand)

Company Limited shall be exempted from enterprise income tax from March 2016 to February

2024.

5) According to the SAT Document on Issuing the Regulation on the Implementation of the

Income Tax Law of the People's Republic of China (No.714 Revision of the PRC State Council on

April 23, 2019), Tianjin Beijiang Environmental Protection Technology Co., Ltd. and Tianjin

SDIC Jinneng Electric Power Co., Ltd. can record its total income as per 90% because they take

the resource specified in Enterprise Income Tax Preference Catalog for Comprehensive Utilization

of Resources as main materials to produce the air-added which is not limited or prohibited and

conforms to national and industrial standard.

6) According to the SAT Notification on Offsetting Enterprise Income Tax with the Investment

in Special Equipment Including Environmental Protection, Energy Saving, Water Conservation

and Work Safety (GSH[2010]No.256), Xiamen Huaxia International Power Development Co., Ltd.

and SDIC Genting Meizhouwan Electric Power Company Limited can offset its 10% of

investment in special equipment specified in Enterprise Income Tax Preference Catalog for Work

Safety Special Equipment, Enterprise Income Tax Preference Catalog for Environmental

Protection Special Equipment and Enterprise Income Tax Preference Catalog for Energy Saving

and Water Conservation Special Equipment in the taxable income of the enterprise in current year;

if insufficient to offset in current year, it can be offset during the future five taxable years.

7) According to No.695/KMK Order of the Indonesia finance minister, PT North Sumatera

Hydro Energy was approved to be exempted from enterprise income tax on October 18, 2018.

When the NSHE has its paid-in capital up to 2120.1 billion Indonesian rupiahs, it will be entitled

to the following preferences: within 15 fiscal years from the date of commercial operation, exempt

100% of enterprise income tax, exempt withholding tax for the income received from a third party;

within 2 fiscal year after expiry of above fiscal years, reduce the enterprise income tax rate to 50%

of current rate.

(2) Value-added tax

1) According to the MOF and SAT Notice on Issuing the VAT Preference Catalog for the

Products and Labor Services Involved with Comprehensive Utilization of Resources

(CS[2015]No.78), SDIC Genting Meizhouwan Electric Power Company Limited and SDIC

Qinzhou Electric Power Co., Ltd. can be entitled to 50% VAT refundable policy for their income

realized from selling gypsum; SDIC Panjiang Electric Power Co., Ltd. can be entitled to 50% VAT

Notes to Financial Statement Page57

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

refundable policy for its income from selling coal gangue and coal slurry power; Tianjin Beijiang

Environmental Protection Technology Co., Ltd. can be entitled to 70% VAT refundable policy for

its income from selling air-added brick; Guizhou Newsky Environment & Tech Co.,Ltd. can be

entitled to 70% VAT refundable policy for its income from selling waste treatment; Xiamen

Huaxia International Power Development Co., Ltd. and Guizhou Newsky Kitchen Waste

Treatment Co., Ltd. can be entitled to 70% VAT refundable policy for their income from selling

sludge; Guizhou Newsky Environment & Tech Co.,Ltd. can be entitled to 100% VAT refundable

policy for its income from selling kitchen waste and bio oil; Guizhou Newsky Environment &

Tech Co.,Ltd. can be entitled to 100% VAT refundable policy for its income from selling garbage

power.

2) According to Notice on VAT Policy for Comprehensive Utilization of Resources and Other

Products (CS[2008]No.156) and the Notice on Wind Power VAT Policy ([2015]No.74) jointly

issued by the MOF and SAT, the wind power enterprises of the Group can be entitled to 50% VAT

refundable policy.

3) According to the Notice on Tax Policy for Further Supporting Retired Soldier for

Entrepreneurship and Employment (CS[2019]No.21) issued by MOF, SAT and MVA, Sichuan

Ertan Industrial Development Co., Ltd. can be entitled to the abatement of VAT, urban

maintenance and construction tax, education surcharge, local education surcharge and enterprise

income tax in turn on the basis of norm and actual number within 3 years from the month when

the labor contract is signed and the social insurance is paid because it employs the retired soldiers,

signs a labor contract of at least one year with them and pays social insurance expense for them

according to law. The norm standard shall be 6,000 Yuan/person annually, with the maximum

increase of 50%. The People’s Government of each province, autonomous region and municipality

can determine specific norm standard within this range according to local actual condition.

4) According to the Notice on Tax Policy for Further Supporting and Promoting Key Group

for Entrepreneurship and Employment (CS[2019]No.22), Sichuan Ertan Construction Consultancy

Co., Ltd. and Sichuan Ertan Industrial Development Co., Ltd. can be entitled to the abatement of

VAT, urban maintenance and construction tax, education surcharge, local education surcharge and

enterprise income tax in turn on the basis of norm and actual number within 3 years from the

month when the labor contract is signed and the social insurance is paid because they employ the

impoverished people and the people who have been unemployed for more than half a year as

registered in the public employment service agency of Human Resources and Social Security

Department

and

hold

Employment

and

Entrepreneurship

Certificate

Employment/Unemployment Registration Certificate (indicating “enterprise absorption tax

Notes to Financial Statement Page58

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

policy”), sign a labor contract of at least one year with them and pay social insurance expense for

them according to law. The norm standard shall be 6,000 Yuan/person annually, with the

maximum increase of 30%. The People’s Government of each province, autonomous region and

municipality can determine specific norm standard within this range according to local actual

condition.

(3) Local tax and relevant tax surcharge

1) According to the MOF, SAT and MOHURD Notice on Improving Tax Policy for Housing

and Leasing (No.24, 2021), Xiamen Huaxia International Power Development Co., Ltd. can

conform to the regulation that from October 1, 2021, the enterprises and public institutions, social

group and other organizations can pay the housing property tax at a rate of 4% if they rent housing

to any individual or professional or scaled housing leasing enterprise.

2) According to the SAT Notice on Issuing the Supplemental Provisions on Several Detailed

Problems about Land Use Tax (GSDZi[1989]No.140), Xiamen Huaxia International Power

Development Co., Ltd. can conform to the regulation that the land for public green space beyond

the enterprise plant area and the land for the park open to the public shall be exempt from land use

tax.

3) According to the Several Opinions on Quickening the Development of Private Enterprises

of Fujian Province, Xiamen Huaxia International Power Development Co., Ltd. and SDIC Genting

Meizhouwan Electric Power Company Limited can conform to the regulation that the current

housing property tax shall be paid at the residual value of original housing property value minus

30%; the urban land use tax shall be paid at 20% decrease in tax standard.

4) According to the State Council Decree on Modifying the Provisional Regulations on

Urban Land Use Tax of the People’s Republic of China (No.483 Decree of the State Council),

SDIC Qinzhou Electric Power Co., Ltd. can conform to the regulation that the land after hill

excavating and offshore filling with approval and the waste land after modification shall be

exempt from land use tax for five years from the month of use and be exempt by half from the

sixth year to the tenth year.

5) According to the MOF and SAT Notice on Tax Policy for Further Supporting the

Development of Small and Micro Enterprises and Individual Business (No.12 in 2023), Fuxin

Jingbu Solar Power Co.,Ltd., SDIC Guangxi New Energy Development Co., Ltd., SDIC Guizhou

New Energy Co., Ltd., Ceheng Huifeng New Energy Co., Ltd., Yunnan Dachao Industry Co., Ltd.,

SDIC Gansu New Energy Co., Ltd., SDIC Tibet New Energy Co., Ltd., SDIC Jiangsu New Energy

Co., Ltd., SDIC New Energy Co., Ltd., SDIC (Hunan Anren) Pumped Storage Co., Ltd., SDIC

(Guangdong) Offshore Wind Power Development Co., Ltd., SDIC Inner Mongolia New Energy

Notes to Financial Statement Page59

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Co., Ltd., Aksay Kazakh Autonomous County Huidong New Energy Co., Ltd., SDIC Hebei New

Energy Co., Ltd., SDIC Shiyan New Energy Co., Ltd., Huaning Ganrun New Energy Co., Ltd.,

Yancheng Zhihui Energy Power Co., Ltd., Guiding Guoneng New Energy Co., Ltd., Pingtang

Yueyang New Energy Co., Ltd., SDIC Yunnan New Energy Technology Co., Ltd., SDIC Xinjiang

New Energy Co., Ltd., Sichuan Ertan Construction Consultancy Co., Ltd., SDIC Meizhouwan

Power Sales Co., Ltd. and Guangxi Guokai Energy Sales Co., Ltd. can be entitled to less than 50%

abatement of resource tax, urban maintenance and construction tax, housing property tax, urban

land use tax, stamp tax (excluding stamp tax of stock exchange), farming land occupation tax,

education surcharge and local education surcharge.

6) According to the SAT Regulations on Exemption of Land Use Tax for Electric Power

Industry ((1989) GSDZi No.13), the land use tax of SDIC Genting Meizhouwan Electric Power

Company Limited shall implement the regulation that the land inside the enclosing wall of thermal

power plant shall be liable to the land use tax according to the regulations. The land for ash yard,

ash transmission pipe, oil (gas) transmission pipe and special railway line outside the plant

enclosing wall shall be exempt from land use tax; the land for other purposes outside the plant

enclosing wall shall be liable to the tax according to the regulations. In hydropower station, the

land for power house (including those inside and outside dam) and the land for production, office

and living shall be liable to the land use tax according to the regulations; the land for other

purposes shall be exempt from the tax. In power supply sector, the land for power transmission

line and substation shall be exempt from land use tax.

Notes to Financial Statement Page60

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Notes to main items in consolidated financial statement

Monetary fund

(I)

Item

Ending balance

Beginning balance

Cash on hand

44,049.90

Cash at bank

1,181,116,247.50

1,645,666,212.12

198,946,362.61

Other monetary fund

100,696,898.30

10,076,191,947.67

11,358,005,093.47

660,656,132.81

Deposits in financial companies

Total

9,794,124,345.83

11,638,780,970.46

974,593,526.80

Including: total amount deposited abroad

Amount deposited abroad and with restricted fund

repatriation

147,371,559.53

128,995,298.70

Monetary funds with restricted right of use

Item

Ending balance

Beginning balance

Guarantee for bank acceptance notes

Performance bond

67,842,370.36

62,410,264.75

21,550,637.68

5,493,907.39

7,457,955.15

96,770,909.47

261,526,044.80

38,241,352.41

102,927,954.02

19,916,949.75

5,480,331.72

Land reclamation deposit

Housing maintenance funds

Restricted loan funds

Bank guarantee

86,177,260.84

Total

252,743,848.74

(II)

Financial assets held for trading

Item

Financial assets at FVTPL

Ending balance

Beginning balance

17,831,453.40

16,364,308.50

122,054,850.00

Including: equity instrument investments

Designated as financial assets at FVTPL

17,831,453.40

113,320,350.00

Notes to Financial Statement Page61

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Item

Including:Investment in debt instruments

Others (Note)

Ending balance

Beginning balance

122,054,850.00

113,320,350.00

Total

138,419,158.50

131,151,803.40

Note: In 2020, Red Rock Power Limited sold 50% of its shares in Inch Cape Offshore

Limited to ESB II UK Limited, which is recognized by management based on the fair value of the

deferred consideration clause in the equity transfer agreement.

(III)

Derivative financial assets

Item

Ending balance

Beginning balance

Cash flow hedging instruments

60,739,049.26

77,790,465.98

Total

60,739,049.26

77,790,465.98

(IV)

Notes receivable

Notes receivable listed by category

Item

Ending balance

Beginning balance

Bank acceptance notes

7,204,974.86

44,062,537.46

Total

7,204,974.86

44,062,537.46

Notes to Financial Statement Page62

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Bad debt provision for notes receivable made individually:

Ending balance

Beginning balance

Name

Provision

proportion

(%)

Provision for

bad debts

Reasons for

provision

Provision for

bad debts

Book balance

Bank

Expected

acceptance

notes

7,213,802.72

8,827.86

0.12 credit loss

rate

44,069,902.82

7,365.36

Total

7,213,802.72

8,827.86

44,069,902.82

7,365.36

Provision for bad debts of notes receivable accrued, recovered, and

transferred back in the current year

Change in this year

Beginning

balance

Ending

balance

Recover

ed or

transfer

red back

Category

Charged or

written off

Provision

Others

Notes receivable with

provision for expected

credit losses on a

single basis

7,365.36

1,462.50

8,827.86

Total

7,365.36

1,462.50

8,827.86

(V)

Accounts receivable

Accounts receivable presented by ageing

Account receivable age

Within 1 year

Ending balance

Beginning balance

9,361,442,725.08

6,307,309,802.85

Including: sub-items within 1 year

1~6 months

7,588,942,553.20

1,772,500,171.88

9,361,442,725.08

2,497,491,098.55

5,133,870,712.93

1,173,439,089.92

6,307,309,802.85

1,876,663,139.90

7~12 months

Subtotal (within one year)

1~2 years

Notes to Financial Statement Page64

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Account receivable age

2~3 years

Ending balance

Beginning balance

1,696,739,964.09

540,136,162.39

3~4 years

459,506,125.57

315,004,106.59

300,177,660.47

14,630,361,680.35

381,736,942.99

68,575,838.47

4~5 years

More than 5 years

Total

243,372,362.13

9,417,794,248.73

Notes to Financial Statement Page65

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Classified presentation of accounts receivable by bad debt accrual method

Ending balance

Beginning balance

Book balance

Bad debt reserve

Book balance

Bad debt reserve

Category

Book value

Provision

proportio

n (%)

Proportion

(%)

Amount

Proportion (%)

Amount

proportio

n (%)

Amount

Provision for bad

debts accrued on

single basis

5,771,237,836.01

8,859,123,844.34

39.45

596,788,301.84

10.34

0.00

5,174,449,534.17

8,858,686,718.62

4,852,775,579.72

4,565,018,669.01

51.53

48.47

442,429,845.95

9.12

0.08

4,410,345,733.77

4,561,172,052.30

Receivables with bad

debt provision accrued

by portfolio of credit

risk features

60.55

437,125.72

3,846,616.71

Including:

Revenue from

electricity bills

receivable

8,552,485,061.29

257,907,042.18

58.46

1.76

8,552,485,061.29

257,907,042.18

4,365,269,846.76

153,850,624.76

46.35

1.63

4,365,269,846.76

153,850,624.76

Revenue from heat

charge receivable

Other portfolios

48,731,740.87

0.33

437,125.72

0.90

48,294,615.15

45,898,197.49

0.49

3,846,616.71

8.38

42,051,580.78

Total

14,630,361,680.35

100.00

597,225,427.56

14,033,136,252.79

9,417,794,248.73

100.00

446,276,462.66

8,971,517,786.07

Notes to Financial Statement Page66

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Bad debt provision of accounts receivable accrued on single basis:

Ending balance

Beginning balance

Enterprise name

Provisionforbad

Provision

proportion(%)

Reasonsfor

provision

Provision forbad

Book balance

758,082,707.98

682,162,729.58

803,621,523.51

282,133,174.87

265,759,625.04

350,808,488.64

283,330,321.86

238,696,634.63

debts

Hami Power Supply Co., Ltd. of State Grid Xinjiang Electric

Power Co., Ltd.

Expected credit

losses

927,852,944.99

36,774,557.03

3.96

16,920,778.15

Turpan Power Supply Co., Ltd. of State Grid Xinjiang Electric

Power Co., Ltd.

Expected credit

losses

775,392,140.61

748,306,155.87

359,702,405.27

340,612,648.81

339,608,679.58

314,809,490.28

312,917,077.35

77,006,083.86

31,947,296.29

18,277,995.12

11,833,668.70

31,062,798.98

25,834,434.44

22,350,983.53

9.93

4.27

5.08

3.47

9.15

8.21

7.14

47,480,664.35

26,824,561.98

9,351,591.28

3,794,976.56

21,049,683.11

9,560,589.62

12,302,983.10

Expected credit

losses

Yunnan Power Grid Co., Ltd

Expected credit

losses

State Grid Sichuan Electric Power Company

State Grid Gansu Electric Power Company

State Grid Shaanxi Electric Power Co., Ltd.

State Grid Qinghai Electric Power Company

Expected credit

losses

Expected credit

losses

Expected credit

losses

State Grid Zhejiang Electric Power Co., Ltd. Huzhou Power

Supply Company

Expected credit

losses

Notes to Financial Statement Page67

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Ending balance

Beginning balance

Enterprise name

Provisionforbad

Provision

proportion(%)

Reasonsfor

provision

Provision forbad

Book balance

249,798,346.60

141,002,028.60

108,793,576.53

171,920,181.30

118,073,539.17

112,722,891.28

debts

Expected credit

losses

Tianjin Huatailong Desalination Co., Ltd.

Guangxi Power Grid Co., Ltd.

243,002,543.59

183,728,010.89

171,487,948.05

163,407,443.86

148,730,570.28

145,278,177.75

241,971,396.76

99.58

13.86

4.17

2.37

8.48

7.50

6.66

241,980,109.40

Expected credit

losses

25,471,960.58

7,156,166.08

3,871,168.77

12,604,945.77

10,903,095.71

10,550,095.27

1,868,764.36

4,311,741.59

8,112,269.21

6,440,409.31

Fuyang Power Supply Company of State Grid Anhui Electric

Power Co., Ltd.

Expected credit

losses

Expected credit

losses

State Grid Jiangsu Electric Power Co., Ltd.

State Grid Ningxia Electric Power Company

Jiangxi Electric Power Company, SGCC

Expected credit

losses

Expected credit

losses

Expected credit

losses

Others

596,401,598.83

39,721,750.22

285,869,810.13

21,880,628.66

Total

5,771,237,836.01

596,788,301.84

4,852,775,579.72

442,429,845.95

Notes to Financial Statement Page68

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Provision for bad debt on a credit risk characteristics combination basis:

Accrual by combination:

Ending balance

Name

Accounts receivable

Bad debt reserve

Proportion of accrual (%)

Income from

electricity fee

receivable

8,552,485,061.29

Income from heating

fee receivable

257,907,042.18

Other combination

Total

48,731,740.87

437,125.72

0.90

8,859,123,844.34

437,125.72

Bad debt reserve accrued, carried-back or recovered in this year

Amount changed in the current year

Recovered

Category

Beginning balance

Ending balance

Othe

Charged

or written

off

Provision

transferred

back

Bad debt

provision

accrued on

single basis

442,429,845.95

3,846,616.71

154,358,455.89

596,788,301.84

Provision for

bad debt on a

credit risk

characteristics

combination

basis

-3,409,490.99

437,125.72

Other portfolios

3,846,616.71

-3,409,490.99

437,125.72

Total

446,276,462.66

150,948,964.90

597,225,427.56

Accounts receivable with top five ending balance collected as per the

borrowers

Notes to Financial Statement Page69

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Ending balance

of provision for

accounts

receivable bad

debt and

contractual

assets

impairment

Proportion in

total ending

balance of

Ending balance of

accounts

receivable and

contractual assets

Ending balance

of contractual

assets

Name of Unit

Ending balance

accounts

receivable and

contractual

assets (%)

State Grid

Corporation of

China

4,360,005,351.71

29.80

State Grid

Sichuan Electric

Power Company

1,557,576,974.91

967,372,350.89

1,557,576,974.91

967,372,350.89

10.65

6.61

18,277,995.12

25,471,960.58

Guangxi Power

Grid Co., Ltd

State Grid

Xinjiang

Electrical Power

Co., Ltd

957,415,523.41

6.54

36,774,557.03

State Grid

Fujian Electric

Power Co., Ltd.

867,955,917.99

5.93

Total

8,710,326,118.91

59.54

80,524,512.73

(VI)

Receivables financing

1. Classification of receivables financing

Item

Ending balance

Beginning balance

Notes receivable

98,893,922.83

Total

Changes in receivables financing and fair value in the reporting year

Accumulated

allowance for

losses

recognized in

other

Ending

balance of the

previous year

Increase in

the current

year

Derecognition

this year

Other

changes

Ending

balance

Item

comprehensive

income

Notes

receivable

98,893,922.83

Notes to Financial Statement Page70

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Accumulated

allowance for

losses

recognized in

other

Ending

balance of the

previous year

Increase in

the current

year

Derecognition

this year

Other

changes

Ending

balance

Item

comprehensive

income

Total

98,893,922.83

(VII) Advances to suppliers

Ageing of advances to suppliers

Ending balance

Beginning balance

Item

Proportion（%）

Amount

Within 1 year

1~2 years

2~3 years

Over 3 years

Total

290,296,014.40

11,629,132.81

1,094,436.19

1,745,473.74

304,765,057.14

95.25

3.82

176,498,826.40

8,025,699.78

1,701,801.82

561,367.81

94.49

4.30

0.36

0.91

0.57

0.30

100.00

186,787,695.81

100.00

Advances to suppliers from top five prepaid parties classified based on the

ending balance

Proportion in total ending

Name of Unit

Ending balance

balance of advances to

suppliers (%)

Taiyuan Coal Trading Centre Company Limited

Guangdong China Coal Import and Export Co., Ltd.

Siemens Gamesa

161,024,485.67

62,315,540.15

8,050,886.90

52.84

20.45

2.64

Agency Fund Settlement Room of China Railway Beijing Group

Co., Ltd.

4,883,563.20

1.60

Hebei Kailuan Guohe Energy Co., Ltd.

4,349,100.00

1.43

Total

240,623,575.92

78.95

Notes to Financial Statement Page71

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

(VIII) Other receivables

Item

Ending balance

Beginning balance

Interests receivable

Dividends receivable

Other receivables

122,599,145.07

899,490,994.15

576,910,836.67

Total

899,490,994.15

699,509,981.74

Dividends receivable

(1) Category of dividends receivable

Item

Ending balance

Beginning balance

Tongshan China Resources Power Co., Ltd.

Xuzhou China Resources Power Co., Ltd.

Subtotal

68,827,513.15

53,771,631.92

122,599,145.07

Minus: Bad debt reserves

Total

122,599,145.07

Other receivables

(1) Other receivables listed as per ageing

Aging

Ending balance

Beginning balance

Within 1 year

422,930,356.17

488,226,730.17

Including: sub-items within 1 year

1~6 months

396,702,614.32

26,227,741.85

422,930,356.17

423,822,900.45

2,552,040.69

69,281,695.41

418,945,034.76

488,226,730.17

21,180,571.95

21,634,806.56

7~12 months

Subtotal (within one year)

1~2 years

2~3 years

Notes to Financial Statement Page72

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Aging

Ending balance

Beginning balance

3~4 years

18,625,758.94

46,687,115.79

4~5 years

31,110,211.60

4,255,744.32

444,600.24

4,515,639.66

More than 5 years

Total

903,297,012.17

582,689,464.37

(2) Bad debt provision of other receivables

Stage I

Stage II

Stage III

Expected credit

loss within the

whole duration

(no credit

impairment

occurs)

Expected credit loss

within the whole

duration (credit

impairment has

occurred)

Provision for bad

debts

Total

Expected credit losses

for the next 12 months

Balance on January 1,

2023

5,429,018.70

349,609.00

5,778,627.70

Book balance of other

receivables on January

1, 2023 in the current

year

-Be transferred to Stage

III

-Be transferred back to

Stage II

-Be transferred back to

Stage I

Provision in the current

year

435,966.84

4,555.94

440,522.78

Reversal in the current

year

-2,138,175.07

-275,000.00

-2,413,175.07

Write-off in the current

year

Amount written off in

the current year

Other changes

42.61

Notes to Financial Statement Page73

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Stage I

Stage II

Stage III

Expected credit

loss within the

whole duration

(no credit

impairment

occurs)

Expected credit loss

within the whole

duration (credit

impairment has

occurred)

Provision for bad

debts

Total

Expected credit losses

for the next 12 months

Balance as at December

31, 2023

3,726,853.08

79,164.94

3,806,018.02

(4) Important accounts recovered or reversed from bad debt provision in the current

year:

Change in this year

Beginning

balance

Ending

balance

Category

Recovered or

transferred

back

Charged

or written

off

Provision

Others

Other receivables

with provision for

expected credit

losses on a single

basis

5,778,627.70

440,522.78

-2,413,175.07

42.61

3,806,018.02

Total

5,778,627.70

440,522.78

-2,413,175.07

42.61

3,806,018.02

The bad debt reserve for which the amount recovered or carried-back is significant:

Amount recovered

or transferred back

Reason for

carry-back

Reasons for

withdrawal or reversal

Name of unit

Method

Amount recovered in

full

Jinko Power Co., Ltd.

2,131,754.95

Monetary asset

Expected credit loss

Hanlan (Nanping)

Solid Waste

Treatment Co., Ltd.

Amount recovered in

full

275,000.00

Monetary asset

Total

2,406,754.95

Notes to Financial Statement Page74

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

(6) Classification of other receivables by nature

Nature

Ending book balance

Beginning balance

Project up-front fee

4,257,155.43

561,914.00

Security deposit

Deposit

799,136,891.67

3,168,555.35

1,677,279.68

8,439,182.87

86,617,947.17

903,297,012.17

465,134,603.63

6,551,080.47

2,563,570.52

19,215,550.26

88,662,745.49

582,689,464.37

Reserve

Advance payments

Others

Total

(7) Conditions about other receivables of top five balances as at the end of the year

collected by the borrowers

Proportion in

total ending

balance of

other

receivables

(%)

Ending

balance of bad

debt provision

Account

receivable age

Company name

Nature

Ending balance

Development and

Reform Commission

of Liangshan Yi

Autonomous

Security deposit

314,110,185.00

266,982,360.00

Within 1 years

34.77

Prefecture

People's Government

of Garze Tibetan

Autonomous

1-2 years

29.56

Prefecture’s Yajiang

County

Finance Bureau of

Quanzhou County

Security deposit

90,000,000.00

50,000,000.00

1-2 years

9.96

5.54

117,645.70

65,358.72

People’s Government

of Anren County

Hangjin Banner

Energy

Security deposit

30,000,000.00

4-5 years

3.32

39,215.23

Administration

Total

751,092,545.00

83.15

222,219.65

Notes to Financial Statement Page75

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Provision for inventory impairment / contract performance cost impairment

Increase in the current

Decrease in the current year

year

Beginning

Category

Ending balance

balance

Reversal or

write-off

Provision

Others

Raw

materials

260,897,285.33

7,614.69

3,395,550.46

18,873,570.32

155,603,946.45

18,592,377.58

108,688,889.34

288,807.43

Turnover

materials

Goods in

stocks

941,559.29

884,503.35

941,559.29

884,503.35

Total

261,846,459.31

23,153,624.13

175,137,883.32

109,862,200.12

(X)

Other current assets

Item

Ending balance

Beginning balance

Input tax to be deducted

Prepaid income tax

Prepaid VAT

635,614,314.25

10,766,657.55

26,793,658.08

1,673,452.76

212,196,547.56

15,336,387.30

28,263,649.20

1,844.26

Others

Total

674,848,082.64

255,798,428.32

Notes to Financial Statement Page77

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Balance as at December 31, 2023

5,678,193.51

62,500,000.00

68,178,193.51

Provision for long-term receivables and bad debts

Current variation

Category

Beginning balance

Ending balance

Provision

Take back or turn back

Resell or write off

Other changes

Long-term receivables that

individually account for

expected credit losses

64,930,011.87

3,248,181.64

68,178,193.51

Total

64,930,011.87

3,248,181.64

68,178,193.51

(XII) Long-term equity investment

Details of long-term equity investment

Increase/decrease in this year

Last year-end

balance of

impairment

reserve

Ending balance of

impairment

Beginning balance

(book value)

Ending balance

(book value)

Investment profit

or loss

Other

Investee

Declaring cash

dividends or

profits

Accrual of

provision for

impairment

Increase in

investment

Reduced

comprehensive

income

Other changes in

equity

provision

Others

investment

recognized by

equity method

adjustments

1. Joint ventures

Notes to Financial Statement Page80

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Increase/decrease in this year

Last year-end

Ending balance of

impairment

Beginning balance

(book value)

balance of

impairment

reserve

Ending balance

(book value)

Investment profit

or loss

Other

Investee

Declaring cash

dividends or

profits

Accrual of

provision for

impairment

Increase in

investment

Reduced

comprehensive

income

Other changes in

equity

provision

Others

investment

recognized by

equity method

adjustments

Cloud Wind Farm Holdings AB

Inch Cape Offshore Limited Holdings

Subtotal

29,610,604.76

87,188,759.20

116,799,363.96

203,119,277.16

-234,092,574.33

-28,863,951.90

-262,956,526.23

1,362,692.41

5,863,327.30

7,226,019.71

64,188,134.60

2. Associates

SDIC Finance Co., Ltd.

2,693,105,594.83

1,915,593,150.78

247,093,832.50

239,943,703.30

374,628,925.32

134,406,433.64

1,296,086,762.28

16,290,653.40

143,069,645.88

194,003,466.13

55,822,352.66

5,701,316.41

14,887,318.13

304,907.83

113,058,558.32

2,738,004,000.52

2,110,191,096.16

302,916,185.16

245,645,019.71

489,855,608.24

93,842,081.60

Jiangxi Ganneng Co., Ltd.

289,571.42

Jiangyin Ligang Power Generation Co., Ltd.

Jiangsu Ligang Electric Power Co., Ltd.

Tongshan China Resources Power Co., Ltd.

Xuzhou China Resources Power Co., Ltd.

Grandblue Environment Co., Ltd.

Hainan Haikong Smart Energy Co., Ltd.

Liaoning Dalian Pumped-Storage Co., Ltd.

112,506,584.64

-43,092,886.75

115,750,789.57

-450,830.40

98,280.00

122,400.00

332,845.01

2,621,818.28

2,406,134.71

-1,128,493.57

14,523,195.06

1,396,518,708.23

15,839,823.00

42,730,000.00

20,300,000.00

63,030,000.00

Notes to Financial Statement Page81

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Increase/decrease in this year

Last year-end

Ending balance of

impairment

Beginning balance

(book value)

balance of

impairment

reserve

Ending balance

(book value)

Investment profit

or loss

Other

Investee

Declaring cash

dividends or

profits

Accrual of

provision for

impairment

Increase in

investment

Reduced

comprehensive

income

Other changes in

equity

provision

Others

investment

recognized by

equity method

adjustments

Jiangxi Enpu Energy Technology Co., Ltd.

Capstone Energy (Yunnan) Co., Ltd.

570,000.00

-411.39

569,588.61

5,000,000.00

Xiamen Haicang Thermal Energy Investment

Co., Ltd.

27,463,958.09

324,552,745.48

20,117,556.31

2,476,141.01

2,993,372.23

46,447,637.30

230,276.78

30,457,330.32

341,530,320.99

20,247,833.09

2,596,245.44

Fujian Sanchuan Offshore Wind Power Co.,

Ltd.

529,938.21

30,000,000.00

100,000.00

Xiamen Haihua Electric Power Technology

Co., Ltd.

Lanzhou New Area Vocational Education

Park Power Distribution and Sales Co., Ltd.

120,104.43

Lestari Listrik Pte.Ltd.

1,389,036,403.30

37,347,179.36

362,008,879.00

83,651,473.37

4,884,920.53

26,585,078.04

6,649,200.00

200,212,806.08

23,845,684.47

93,971,190.69

1,469,948,483.10

36,351,534.30

569,383,178.10

Baiyin Daxia Electric Power Co., Ltd.

Beatrice Offshore Windfarm Holdco Limited

768,634.41

1,244,807,380.89

241,012,468.54

-123,661,565.31

183,903,010.62

1,272,226,464.19

HYDROGEN TIMES (Jieyang) Energy

Technology Co., Ltd.

12,000,000.00

Subtotal

10,005,680,420.49

362,008,879.00

37,870,000.00

962,650,279.93

-107,915,814.34

5,487,603.46

374,819,042.04

200,212,806.08

117,816,875.16

10,646,770,322.66

569,383,178.10

Notes to Financial Statement Page82

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Increase/decrease in this year

Last year-end

Ending balance of

impairment

Beginning balance

(book value)

balance of

impairment

reserve

Ending balance

(book value)

Investment profit

or loss

Other

Investee

Declaring cash

dividends or

profits

Accrual of

provision for

impairment

Increase in

investment

Reduced

comprehensive

income

Other changes in

equity

provision

Others

investment

recognized by

equity method

adjustments

Total

10,122,479,784.45

362,008,879.00

240,989,277.16

699,693,753.70

-107,915,814.34

5,487,603.46

374,819,042.04

200,212,806.08

125,042,894.87

10,710,958,457.26

569,383,178.10

2. Impairment test of long-term equity investment

Determination of the net amount of the fair value of recoverable amount minus the disposal cost:

Unit: Ten thousand U.S. dollars

Determination method of

fair value and disposal cost

Basis for determining

Key parameters

Item

Book value

Recoverable amount

Impairment amount

key parameters

The fair value is valuated by

asset-based approach; the

disposal cost is determined

upon the intermediary

service fee incurred during

property transaction and

stamp tax.

Installed capacity,

power generating

hours, discount rate

Determined upon actual

operation in historical

years and forecast

Lestari Listrik Pte. Ltd

15,556.23

12,715.00

2,841.23

Total

15,556.23

12,715.00

2,841.23

Notes to Financial Statement Page83

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

(XIII) Investment in other equity instruments

Details of investment in other equity instruments

Loss cumulatively

included in other

comprehensive income

at the end of current

year

Current loss

included in other

comprehensive

income

Gain cumulatively

included in other

Dividend

income

Current gain included

in other

Reasons for being designated

as being measured at

FVTOCI

Item

Ending balance

Beginning balance

comprehensive income at

the end of current year

recognized in

this year

comprehensive income

Tianjin Power Trading Center Co., Ltd.

National Coal Trading Center Co., Ltd.

Beijing Power Exchange Center Co., Ltd.

Yunnan Coal Chemical Industry Group Co., Ltd.

9,541,095.99

12,000,000.00

6,597,610.00

59,951,359.86

Strategic long-term holdings

12,000,000.00

6,597,610.00

61,495,759.86

1,544,400.00

18,986,683.83

4,331,166.05

Guian New District Power Distribution and Sales

Co., Ltd.

55,668,833.95

57,052,200.00

1,383,366.05

21,823,204.00

Strategic long-term holdings

Zhongmin Energy Engineering Co., Ltd.

Sichuan Power Exchange Center Co., Ltd.

SDIC Hami Industrial Co., Ltd.

Guangxi Power Exchange Center Co., Ltd.

Total

95,367,401.48

3,177,388.07

7,072,885.00

2,607,256.83

253,528,231.18

117,190,605.48

3,177,388.07

9,559,760.00

2,607,256.83

277,677,276.23

102,787,290.84

2,182,320.40

Strategic long-term holdings

2,486,875.00

2,927,115.00

1,544,400.00

25,693,445.05

129,032,255.72

2,182,320.40

Notes to Financial Statement Page84

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

(XIV) Investment properties

Investment property measured at cost

Item

Houses and buildings

Land right of uses

Total

1. Original book value

(1) Beginning balance

268,884,959.65

2,291,003.32

6,754,563.13

898,313.25

31,467,275.41

300,352,235.06

2,291,003.32

6,754,563.13

898,313.25

(2) Increase in the current year

-- Transfer-in from fixed assets

(3) Decrease in the current year

-- Disposal

-- Transferred to fixed assets

(4) Ending balance

5,856,249.88

264,421,399.84

5,856,249.88

295,888,675.25

31,467,275.41

2. Accumulated depreciation and

accumulated amortization

(1) Beginning balance

(2) Increase in the current year

-- Provision or amortization

-- Transfer-in from fixed assets

(3) Decrease in the current year

-- Disposal

173,300,849.97

6,443,450.23

6,178,893.75

264,556.48

11,610,625.53

1,005,161.29

184,911,475.50

7,448,611.52

7,184,055.04

264,556.48

4,255,410.96

313,821.84

4,255,410.96

313,821.84

-- Transferred to fixed assets

(4) Ending balance

3,941,589.12

175,488,889.24

3,941,589.12

188,104,676.06

12,615,786.82

3.Provision for impairment

(1) Beginning balance

(2) Increase in the current year

-- Provision

(3) Decrease in the current year

-- Disposal

Notes to Financial Statement Page85

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Item

Houses and buildings

Land right of uses

Total

(4) Ending balance

4. Book value

(1) Book value at the end of the year

88,932,510.60

95,584,109.68

18,851,488.59

19,856,649.88

107,783,999.19

115,440,759.56

(2) Book value at the beginning of the

year

(XV) Fixed asset

Fixed assets and disposal of fixed assets

Item

Ending balance

Beginning balance

Fixed asset

198,078,570,195.36

194,452,180,674.97

33,041,466.12

Disposal of fixed assets

32,649,405.40

Total

198,111,219,600.76

194,485,222,141.09

Notes to Financial Statement Page86

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Details of fixed assets

Office and other

equipment

Item

Houses and buildings

Machinery Equipment

Transport equipment

Total

1. Original book value

(1) Beginning balance

191,690,421,447.34

87,911,423,972.13

11,995,465,552.20

37,265,291.70

452,495,936.72

70,272,469.95

34,073,335.76

689,710,881.15

280,744,052,237.34

13,603,311,332.19

139,969,059.95

(2) Increase in the current year

-- Purchase

1,428,293,799.16

13,117,304.18

109,279,510.88

55,513,128.31

-Transfer to projects under construction

1,376,261,551.39

11,369,306,289.83

35,831,399.69

50,259,461.48

12,831,658,702.39

- Increase from business combinations

30,460,420.37

2,598,273.34

5,856,249.88

266,754,209.55

322,139,761.12

601,778.53

297,816,408.45

328,010,911.52

5,856,249.88

-Adjustment of the original value

367,734.50

2,905,142.56

- Transfer from investment properties

(3) Decrease in the current year

-Disposal or retirement

300,836,159.67

179,392,685.64

119,152,470.71

302,641,142.73

276,351,022.83

26,290,119.90

15,531,294.60

15,472,115.11

59,179.49

63,032,962.69

29,196,860.47

33,836,102.22

682,041,559.69

500,412,684.05

179,337,872.32

- Adjustment of the original value

Notes to Financial Statement Page87

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Office and other

equipment

Item

Houses and buildings

Machinery Equipment

Transport equipment

Total

- Transfer to investment properties

2,291,003.32

(4)Translation differences arising from foreign

currency transactions

189,471.90

56,943,440.19

152,215.22

617,887.47

57,903,014.78

(5) Ending balance

192,818,068,558.73

99,661,191,821.79

507,389,327.29

736,575,316.81

293,723,225,024.62

2. Accumulated depreciation

(1) Beginning balance

42,717,210,252.74

4,887,611,760.65

4,880,405,254.35

2,005,520.37

42,388,225,833.36

4,676,690,957.62

4,570,407,349.53

41,280,663.34

298,328,509.05

30,417,728.88

504,633,116.25

82,079,488.97

81,902,502.50

164,036.53

85,908,397,711.40

9,676,799,936.12

9,563,132,835.26

43,450,220.24

3,941,589.12

(2) Increase in the current year

-- Provision

- Increase due to business combination

- Transfer from Investment properties

-- Other

3,941,589.12

1,259,396.81

65,002,944.75

184,082,725.74

12,949.94

43,530,322.86

28,453,543.84

66,275,291.50

315,934,043.50

297,654,674.12

264,556.48

(3) Decrease in the current year

-Disposal or retirement

73,147,396.14

69,944,805.78

264,556.48

15,173,598.76

- Transfer to investment property

Notes to Financial Statement Page88

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Office and other

equipment

Item

Houses and buildings

Machinery Equipment

Transport equipment

Total

15,076,779.02

18,014,812.90

-- Other

2,938,033.88

(4) Translation differences arising from foreign

currency transactions

7,752.31

10,348,773.75

87,048.09

448,011.68

10,891,585.83

(5) Ending balance

3. Provision for impairment

(1) Beginning balance

(2) Increase in the current year

-- Provision

47,531,682,369.56

46,891,182,838.99

313,659,687.26

543,630,294.04

95,280,155,189.85

9,023,972.39

432,881.55

374,391,863.84

23,512,160.49

58,014.74

140,264.50

383,473,850.97

24,201,549.13

116,242.59

-- Others

(3) Decrease in the current year

-Disposal or retirement

-- Others

413,597.12

42,608,981.22

108,637.01

44,545.34

43,175,760.69

(4) Translation differences arising from foreign

currency transactions

(5)Ending balance

9,043,256.82

355,295,043.11

7,605.58

153,733.90

364,499,639.41

Notes to Financial Statement Page89

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Fixed assets whose property certificates are not obtained

Reason(s) for the failure to transact the

certificate of title

Item

Book value

House and building

172,304,129.17

In progress

Disposal of fixed assets

Item

Ending balance

Beginning balance

House and buildings

Machinery equipment

Transportation equipment

Office equipment

Total

170,141.40

47,213.20

32,970,262.81

13,513.67

32,334,159.79

66,091.32

79,012.89

10,476.44

32,649,405.40

33,041,466.12

Notes to Financial Statement Page91

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

(XVI) Projects under construction

Projects under construction and engineering materials

Ending balance

Beginning balance

Item

Provision for

Book balance

Provision for

Impairment

Book value

Book balance

Book value

Impairment

Projects under

construction

16,789,473,986.65

12,291,298,799.27

Engineering

materials

508,737,274.18

42,112,458.28

Total

17,298,211,260.83

12,333,411,257.55

Details of projects under construction

Ending balance

Beginning balance

Item

Provision

for

impairment

Provision for

Impairment

Book balance

Book value

Book balance

Book value

Mengdigou Hydropower Station

Kala Hydropower Station

3,282,758,026.08

2,857,170,066.37

3,282,758,026.08

2,857,170,066.37

1,948,871,598.37

1,891,766,221.69

1,948,871,598.37

1,891,766,221.69

Notes to Financial Statement Page92

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Ending balance

Beginning balance

Item

Provision

for

impairment

Provision for

Impairment

Book balance

Book value

Book balance

Book value

Qinzhou Phase III Coal-fired Power Generation Project

1,848,956,333.88

1,624,168,782.10

1,848,956,333.88

1,624,168,782.10

1,121,240,351.38

111,478,440.63

1,121,240,351.38

111,478,440.63

Solar + PV pilot project of Aksay Kazakh Autonomous

County Huidong New Energy Co., Ltd.

CJPL-II

502,325,359.23

483,820,609.45

440,121,979.34

347,025,751.23

288,823,901.32

264,671,096.58

261,941,869.27

502,325,359.23

483,820,609.45

440,121,979.34

347,025,751.23

288,823,901.32

264,671,096.58

261,941,869.27

298,384,087.10

15,240,720.31

10,607,824.90

298,384,087.10

15,240,720.31

10,607,824.90

Lingshan Liulushan wind farm phase I project

Phase I equivalent capacity replacement

SDIC Qinzhou Pubei shared energy storage project (phase I)

SDIC Longlou 100MW fishery (farming) + solar PV project

Yunnan Yunxian Maolan PV project

32,395,205.82

40,134,585.13

28,094,495.13

32,395,205.82

40,134,585.13

28,094,495.13

Yuxi Yuanjiang Pulichong PV power station

Tibet Shigatse Renbu phase I 100MW husbandry + solar PV

project

219,869,558.95

223,654,283.46

227,284,318.12

219,869,558.95

223,654,283.46

227,284,318.12

Lingshan Dongyong wind farm project

6,612,413.71

Dongchuan Jiaojiacun farming + husbandry + solar PV power

station

Notes to Financial Statement Page93

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Changes of important projects under construction in the current year

Including:

Amount of

capitalized

interest in

Capitalization

rate of

Ratio of

Accumulated

amount of

capitalized

interest

Increase in the

current year

Transferred to

fixed assets

Other

accumulative

investment to

budget (%)

Progress

(%)

Source of

funds

Item

Budget

Beginning balance

Ending balance

interest in

current year

(%)

decreases

current year

Self-fund

Mengdigou

Hydropower

Station

raising and

borrowings

34,721,993,739.05

1,948,871,598.37

1,355,746,934.29

21,860,506.58

3,282,758,026.08

9.45

54,403,542.14

39,130,633.50

2.66

Self-fund

Kala

Hydropower

Station

raising and

borrowings

17,121,092,800.00

1,891,766,221.69

965,672,601.29

268,756.61

2,857,170,066.37

16.69

42,071,960.31

17,244,304.81

2.90

Qinzhou Phase

III Coal-fired

Power

Self-fund

raising and

borrowings

6,222,720,000.00

1,121,240,351.38

2,685,663,444.20

1,841,104,074.17

116,843,387.53

1,848,956,333.88

61.26

49,329,503.43

2.61

Generation

Project

Solar + PV

pilot project of

Aksay Kazakh

Autonomous

County

Self-fund

raising and

borrowings

4,884,880,000.00

111,478,440.63

1,515,169,754.90

2,479,413.43

1,624,168,782.10

33.25

16,844,590.57

15,934,868.36

2.50

Huidong New

Energy Co.,

Ltd.

Notes to Financial Statement Page95

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Including:

Amount of

capitalized

interest in

Capitalization

rate of

Ratio of

Accumulated

amount of

capitalized

interest

Increase in the

current year

Transferred to

fixed assets

Other

accumulative

investment to

budget (%)

Progress

(%)

Source of

funds

Item

Budget

Beginning balance

Ending balance

interest in

current year

(%)

decreases

current year

Self-fund

raising

CJPL-II

1,190,750,000.00

298,384,087.10

203,941,272.13

502,325,359.23

69.63

Self-fund

raising and

borrowings

Lingshan

Liulushan

1,926,100,400.00

15,240,720.31

468,579,889.14

483,820,609.45

25.69

6,337,177.64

1.94

wind farm

phase I project

Self-fund

Phase I

equivalent

capacity

raising and

borrowings

2,851,710,000.00

10,607,824.90

454,445,063.99

24,930,909.55

440,121,979.34

16.31

8,238,283.28

7,652,901.06

2.33

replacement

SDIC Qinzhou

Pubei shared

energy storage

project (phase

635,752,242.00

373,373,391.48

26,347,640.25

347,025,751.23

59.53

Self-financing

SDIC Longlou

100MW

Self-fund

raising and

borrowings

fishery

673,822,100.00

32,395,205.82

257,927,645.54

1,498,950.04

288,823,901.32

42.82

16,679,836.89

9,106,558.77

2.95

(farming) +

solar project

Notes to Financial Statement Page96

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Including:

Amount of

capitalized

interest in

Capitalization

rate of

Ratio of

Accumulated

amount of

capitalized

interest

Increase in the

current year

Transferred to

fixed assets

Other

accumulative

investment to

budget (%)

Progress

(%)

Source of

funds

Item

Budget

Beginning balance

Ending balance

interest in

current year

(%)

decreases

current year

Yunnan

Yunxian

Maolan PV

project

Self-fund

raising and

borrowings

1,068,626,500.00

528,664,000.00

490,004,800.00

40,134,585.13

28,094,495.13

224,536,511.45

233,847,374.14

219,869,558.95

264,671,096.58

261,941,869.27

219,869,558.95

49.55

48.39

7,258,160.86

1,795,404.82

747,329.48

5,213,746.10

1,795,404.82

747,329.48

2.34

2.78

2.20

Yuxi

Self-fund

raising and

borrowings

Yuanjiang

49.55

48.39

Pulichong PV

power station

Tibet Shigatse

Renbu phase I

100MW solar

+ PV project

Self-fund

raising and

borrowings

Lingshan

Dongyong

wind farm

project

Self-fund

raising and

borrowings

771,672,400.00

6,612,413.71

217,041,869.75

223,654,283.46

29.64

1,108,466.25

2.04

Dongchuan

Jiaojiacun

Self-fund

raising and

borrowings

farming +

779,511,000.00

227,284,318.12

29.16

30.00

1,016,536.14

2.30

husbandry +

solar PV power

station

Notes to Financial Statement Page97

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Including:

Amount of

capitalized

interest in

Capitalization

rate of

Ratio of

Accumulated

amount of

capitalized

interest

Increase in the

current year

Transferred to

fixed assets

Other

accumulative

investment to

budget (%)

Progress

(%)

Source of

funds

Item

Budget

Beginning balance

Ending balance

interest in

current year

(%)

decreases

current year

Yuxi

Self-fund

raising and

borrowings

Yuanjiang

Ganba PV

power station

262,728,800.00

3,953,338.77

13,387,678.72

166,792,863.99

128,218,899.30

170,746,202.76

141,606,578.02

64.99

829,660.41

2.62

Qinzhou Nasi

wind farm

project

Self-fund

raising and

borrowings

653,070,400.00

22.59

95.00

22.59

95.00

1,247,087.50

1,246,465.28

2.22

1.80

Kela phase I

PV power

station

Self-fund

raising and

borrowings

5,340,000,000.00

2,194,327,890.71

2,878,070,053.37

4,948,860,146.09

123,537,797.99

39,282,953.84

35,630,287.17

Total

7,716,494,852.37

12,576,181,446.03

6,839,503,806.43

144,689,977.82

13,308,482,514.15

247,190,493.56

192,323,843.22

Engineering materials

Ending balance

Beginning balance

Impairment reserve

Item

Book balance

438,952,679.02

1,917,593.25

Impairment reserve

Book value

Book balance

Book value

Engineering materials

Uninstalled equipment

438,952,679.02

11,451,017.67

30,113,177.03

1,917,593.25

30,113,177.03

Notes to Financial Statement Page98

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Ending balance

Beginning balance

Impairment reserve

Item

Book balance

Impairment reserve

Book value

Book balance

Book value

Tools and facilities for production

67,488,681.24

436,353.15

Others

378,320.67

111,910.43

Total

508,737,274.18

42,112,458.28

(XVII) Right-of-use assets

Details of right-of-use assets

Item

House and buildings

Machinery Equipment

Land

Total

1. Original book value

(1) Beginning balance

101,013,603.00

88,251,981.83

68,807,429.25

611,642,730.68

506,845,718.80

504,903,817.74

781,463,762.93

595,333,530.51

593,391,629.45

(2) Increase in the current year

-- New lease

235,829.88

-- Increase from business combination

-- Revaluation adjustment

(3) Decrease in the current year

1,941,901.06

21,914,277.25

21,490,163.47

424,113.78

Notes to Financial Statement Page99

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Item

-- Transferred to fixed asset

-- Disposal

House and buildings

Machinery Equipment

Land

Total

209,639.41

6,059,807.23

15,644,830.61

-- Others

15,430,356.24

691,186.40

214,474.37

23,440.77

(4) Translation differences arising from foreign currency

transactions

11,608,291.18

12,322,918.35

(5) Ending balance

2. Accumulated depreciation

(1) Balance at the end of last year

(2) Increase in this year

-- Provision

168,466,607.76

68,642,586.12

1,130,096,740.66

1,367,205,934.54

50,032,836.76

38,446,107.60

3,072,272.26

6,194,907.04

51,610,882.66

44,466,097.39

42,809,402.87

1,656,694.52

104,715,991.68

89,107,112.03

87,450,417.51

1,656,694.52

14,684,770.59

222,992.83

-- Other

(3) Decrease in this year

-- Transferred to fixed asset

-- Disposal

14,461,777.76

222,992.83

3,051,824.13

11,409,953.63

3,051,824.13

11,409,953.63

-- Others

Notes to Financial Statement Page100

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Item

House and buildings

Machinery Equipment

Land

Total

(1) Book value at the end of the year

(2) Book value at the beginning of the year

93,855,759.27

59,582,523.43

1,032,754,322.00

1,186,192,604.70

676,747,771.25

50,980,766.24

65,735,156.99

560,031,848.02

(XVIII)Intangible assets

1. Details of intangible assets

Green

Land right of

use

Housing

right of use

Highway right

of use

Sea area right

of use

electricity

certificate for

AFTON

Right of

charge

Item

Software

BOT franchise

Total

1. Original book value

(1) Beginning balance

(2) Increase in the current year

-- Purchase

1,678,671,684.26 434,028,084.86 7,276,809,707.39 6,711,296.20 1,697,089,763.04 197,941,175.46 288,178,793.54

11,579,430,504.75

841,817,242.23

450,827,368.91

337,631,900.97

143,718,058.85

54,096,940.85

17,112,060.15

312,908,853.57

289,997,249.91

67,901,346.84

69,278,200.00

-- Internal R&D

-- Increase from business

combination

4,933,921.00

69,278,200.00

74,212,121.00

316,777,752.32

-- Others

188,979,921.12

36,984,880.70

22,911,603.66

67,901,346.84

Notes to Financial Statement Page102

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Green

electricity

certificate for

AFTON

Land right of

Housing

right of use

Highway right

of use

Sea area right

of use

Right of

charge

Item

Software

BOT franchise

Total

use

(3) Decrease in in the current

year

68,197,171.24

2,924,836.70

30,885,750.42

102,007,758.36

-- Disposal

(4) Translation differences

arising from foreign currency

transactions

616,306.82

48,482,998.99

22,212,229.95

71,311,535.76

(5) Ending balance

1,948,106,413.99 485,816,495.83 7,607,315,809.53 6,711,296.20 1,764,991,109.88 197,941,175.46 310,391,023.49 69,278,200.00 12,390,551,524.38

2. Accumulated amortization

(1) Beginning balance

(2) Increase in the current year

--Provision

429,668,794.11 270,653,408.33 4,294,570,426.91 3,829,374.64

601,272,039.94

62,592,396.17

46,687,616.73

55,896,375.41

4,745,115.21

70,888,475.46

17,662,053.84

5,726,778,894.80

398,519,516.37

380,170,194.87

44,037,137.82

43,905,016.82

38,375,224.27

36,062,803.21

225,622,012.33

156,484.42

5,329,092.31

-- Increase from business

combination

132,121.00

-- Others

2,312,421.06

2,888,134.74

15,904,779.44

18,217,200.50

43,773,405.80

(3) Decrease in the current year

-- Disposal

16,016,664.81

24,868,606.25

Notes to Financial Statement Page103

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Green

electricity

certificate for

AFTON

Land right of

Housing

right of use

Highway right

of use

Sea area right

of use

Right of

charge

Item

Software

BOT franchise

Total

use

(4) Translation differences

arising from foreign currency

transactions

570,654.60

4,490,135.74

5,393,643.90

93,944,173.20

10,454,434.24

(5) Ending balance

457,689,267.12 306,711,152.46 4,499,813,968.73 3,985,859.06

663,864,436.11

60,641,490.62

5,329,092.31

6,091,979,439.61

3. Provision for impairment

(1) Beginning balance

(2) I Increase in the current year

-- Provision

174,381.36

10,321.13

22,629.29

187,217,067.33

1,162,264.18

187,401,769.82

1,184,893.47

(3) Decrease in the current

year

32,950.42

6,177,025.17

6,209,975.59

-- Disposal

(4) Translation differences

arising from foreign currency

transactions

(5) Ending balance

4. Book value

174,381.36

182,202,306.34

182,376,687.70

Notes to Financial Statement Page104

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

(XX) Goodwill

Changes in goodwill

Increase in the

current year

Increase in the

current year

Beginning

balance

Ending

balance

Name of investee

Formed through

business

Disposal

combination

Original book value

Hainan Dongfang Gaopai Wind

Power Generation Co., Ltd..

49,614,744.38

539,284.94

49,614,744.38

539,284.94

Changzhou Tiansui New Energy

Co., Ltd.

Jiangsu Tiansai New Energy

Development Co., Ltd.

58,099,601.67

Ningxiang Gushanfeng New Energy

Development Co., Ltd.

38,038,486.54

Subtotal

108,253,630.99

38,038,486.54

146,292,117.53

Impairment reserve

Subtotal

Book value

38,038,486.54

146,292,117.53

Composition of the asset group or the combination of asset groups to which a

goodwill belongs and information on its operating segment

Consistent with

previous year or

not

Composition of the asset group or the combination of

asset groups and basis

Operating segment

and basis

Item

Fixed asset, right-of-use asset, intangible asset and goodwill,

asset impairment amount on the combination date,

depreciation adjustment.

Electric power sector,

electric power

Ningxiang Gushanfeng

New Energy

New

Basis: the group is the minimum asset group which can be

recognized by enterprise, and the cash inflow incurred is

basically independent of other assets or asset groups.

production and selling

asset group

Development Co., Ltd.

Fixed asset, intangible asset and goodwill, asset impairment

amount on the combination date, depreciation adjustment.

Basis: the group is the minimum asset group which can be

recognized by enterprise, and the cash inflow incurred is

basically independent of other assets or asset groups.

Electric power sector,

electric power

Hainan Dongfang

Gaopai Wind Power

Generation Co., Ltd..

Yes

production and selling

asset group

Notes to Financial Statement Page107

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Consistent with

previous year or

not

Composition of the asset group or the combination of

asset groups and basis

Operating segment

Item

and basis

Fixed asset, goodwill, asset impairment amount on the

combination date, depreciation adjustment.

Electric power sector,

electric power

Changzhou Tiansui New

Energy Co., Ltd.

Basis: the group is the minimum asset group which can be

recognized by enterprise, and the cash inflow incurred is

basically independent of other assets or asset groups.

Yes

production and selling

asset group

Fixed asset, intangible asset, goodwill, asset impairment

amount on the combination date, depreciation adjustment.

Basis: the group is the minimum asset group which can be

recognized by enterprise, and the cash inflow incurred is

basically independent of other assets or asset groups.

Electric power sector,

electric power

Jiangsu Tiansai New

Energy Development

Co., Ltd.

production and selling

asset group

Notes to Financial Statement Page108

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Determination method of recoverable amount

The recoverable amount is determined as per the present value of the future cash flow:

Impa

irme

Item

Book value

Recoverable amount

amou

Remark

Asset group of Ningxiang

Gushanfeng New Energy

Development Co., Ltd.

356,492,079.36

395,357,100.00

1. The recoverable amount of the Group's goodwill related asset group was determined based on the present value of the estimated future

cash flows. The discount rate used for the cash flow projections was a pre-tax discount rate reflecting the specific risks of the related asset

group and ranged from 7.96% to 8.65%. Based on the results of the impairment test, the Group was not required to recognize any

provision for goodwill impairment for the current year.

Asset group of Hainan Dongfang

Gaopai Wind Power Generation

Co., Ltd..

274,311,660.04

277,546,300.00

2. Other significant assumptions used for the impairment test include the expected selling price of electricity, the annual effective

utilization hours of the equipment and the cost of power generation. Management determines these significant assumptions based on the

past operating conditions of each asset group or combination of asset groups and its expectation of future market development.

Asset group of Changzhou

3. The amounts allocated to these asset groups or portfolios of asset groups in relation to key assumptions such as discount rates and

industry trends are consistent with the Group's historical experience and external information.

151,376,380.88

215,041,600.00

Tiansui New Energy Co., Ltd.

Asset group of Jiangsu Tiansai

New Energy Development Co.,

Ltd.

449,500,925.33

683,043,200.00

Total

1,231,681,045.61

1,570,988,200.00

Notes to Financial Statement Page109

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

(XXI) Long-term prepaid expenses

Other

Increase in the

current year

Amortization in

this year

decreases in

the current

year

Item

Beginning balance

Ending balance

Meizhouwan

phase I technical

transformation

project

67,178,868.89

5,571,323.30

29,577,090.19

1,399,794.03

41,773,307.97

Huzhou land

lease

compensation

17,261,135.83

9,309,672.80

958,951.95

775,805.52

16,302,183.88

8,533,867.28

Turpan step-up

substation

project

Dongchuan

Yeniu Phase I

wind power

project

5,436,664.65

5,810,697.27

21,588,801.90

404,869.68

484,224.77

5,031,794.97

5,326,472.50

20,289,203.48

Hami Santanghu

pooling station

project

Hami 220kV

pooling station

construction

project

1,299,598.42

Other

14,968,443.34

7,002,493.27

2,755,166.12

19,215,770.49

Total

141,554,284.68

12,573,816.57

36,255,706.65

1,399,794.03

116,472,600.57

Note 1: The long-term prepaid expenses of Meizhouwan phase I technical

transformation project is due to the combination with Pacific Electric Power Co., Ltd. in

previous years, mainly including the denitrification engineering, ship right of use and

power transmission and transformation facilities and transformation of low NOx burner,

induced-draft fan, elector-dedust high-frequency power supply and ultra-low emission

transformation, the repair of houses, etc. The amortization for the above technical

transformation project will terminate in June 2025.

Note 2: The long-term prepaid expenses of Huzhou Xianghui Nanxun 100MWp

fishery + solar PV power project is the fish pond compensation in relation to land lease,

and its original value is 23,973,800.00 Yuan, which will be amortized within the lease

Notes to Financial Statement Page110

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

term (25 years).

Note 3: The long-term prepaid expense of Turpan step-up substation project is the

220kV step-up substation project payment paid to Guodian Qingsong Turpan New Energy

Co., Ltd., and its original value is 15,080,683.76 Yuan, which will be amortized within 20

years.

Note 4: The long-term prepaid expense of Dongchuan Yeniu phase I wind power

project are the expenses paid for access road, and its original value is 8,264.977.50 Yuan,

which will be amortized within 20 years.

Note 5: The long-term prepaid expense of Hami Santanghu pooling station project is

the Santanghu 220kV pooling station project payment to Longyuan Barkol Wind Power

Company, and its original value is 10,652,944.97 Yuan, which will be amortized within 20

years.

Note 6: the long-term prepaid expense of Hami 220kV pooling station construction

project is the 220KV pooling station project payment to Yandunba A wind farm, and its

original value is 29,351,911.31 Yuan, which will be amortized within 20 years.

(XXII) Deferred tax assets and deferred tax liabilities

Un-offset deferred income tax assets

Ending balance

Beginning balance

Item

Deductible

temporary

difference

Deductible

temporary

difference

Deferred income

tax assets

Preparation for the

impairment of assets

1,121,024,965.20

828,067,377.93

2,085,261,118.64

241,721,980.96

207,016,844.47

327,470,654.30

954,411,592.88

1,264,233,581.20

2,025,959,453.20

212,652,514.18

316,058,395.31

315,669,556.23

Deductible loss

Accrued outstanding

expenses

Depreciation of fixed

assets/Amortization of

intangible assets

271,033,073.76

62,875,425.85

222,886,566.17

51,062,797.68

Notes to Financial Statement Page111

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Ending balance

Beginning balance

Item

Deductible

temporary

difference

Deductible

temporary

difference

Deferred income

tax assets

Deferred income

tax assets

Deferred income

119,145,143.84

11,247,844.50

27,561,418.88

1,687,176.68

130,736,891.87

9,608,486.30

30,381,541.80

1,441,272.95

Provision for unpaid

employee remuneration

Unrealized internal

transaction profit

48,164,547.80

12,041,136.95

51,501,510.80

712,430.59

12,875,377.70

106,864.59

Changes in fair value of

receivables financing

Temporary difference

formed due to new lease

standard

456,959,032.43

85,794,716.78

222,471,737.33

45,063,421.10

Others

297,863,140.13

74,392,177.06

280,141,430.11

70,035,357.53

Total

5,238,766,244.23

1,040,561,531.93

5,162,663,680.45

1,055,347,099.07

Un-offset deferred income tax liabilities

Ending balance

Beginning balance

Item

Taxable temporary

difference

Deferred income

tax liabilities

Taxable temporary

difference

Deferred income

tax liabilities

Cost for commissioning

income

87,795,536.35

725,430,345.72

16,638,658.04

101,794,597.75

19,177,795.40

187,751,614.29

Assets evaluation

appreciation in the business

combination not under the

same control

126,741,360.45

1,619,322,434.71

Amortization of intangible

assets

1,826,490,323.44

457,818,883.83

401,632,065.41

85,364,893.29

1,127,873,835.89

244,033,205.47

248,640,312.49

48,170,645.84

Temporary difference

formed due to new lease

standard

Others

61,500,150.36

15,375,037.59

78,744,946.33

19,686,236.59

Total

3,159,035,239.70

645,752,014.78

3,171,769,020.15

523,426,604.61

Notes to Financial Statement Page112

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Breakdown of unrecognized deferred income tax assets

Item

Deductible temporary difference

Deductible loss

Ending balance

93,392,868.61

Beginning balance

196,130,202.97

7,468,428,912.39

7,561,821,781.00

6,764,369,675.40

6,960,499,878.37

Total

Deductible losses of unrecognized deferred income tax assets will become

mature and due in the following years

Year

2023

2024

2025

2026

2027

2028

Total

Ending balance

Beginning balance

Remark

463,953,387.53

180,210,339.30

181,221,260.97

814,788,230.52

2,358,003,780.60

2,946,403,015.78

808,610,086.88

2,156,401,213.76

2,773,179,420.67

1,550,027,851.78

7,468,428,912.39

6,764,369,675.40

Notes to Financial Statement Page113

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

(XXIV) Assets with restricted ownership or use right

End balance

Beginning balance

Item

Book value

Restriction

Book value

Restriction

Performance bond, housing maintenance fund, bank

guarantee and acceptance earnest money, land

reclamation earnest money, ETC frozen capital, etc.

Performance bond, bank guarantee and

acceptance earnest money, land

reclamation earnest money, etc.

Monetary fund

261,526,044.80

252,743,848.74

Accounts receivable

Fixed assets

3,644,415,608.54

3,194,569,356.87

Pledge of right of electricity charge

4,106,631,192.81

3,441,534,192.76

Pledge of right of electricity charge

Project mortgage loan, asset without title

document

Project mortgage loan, asset without title document

Project mortgage loan, asset without title

document

Intangible assets

556,454,587.84

Project mortgage loan, asset without title document

567,557,772.89

Total

7,656,965,598.05

8,368,467,007.20

Notes to Financial Statement Page115

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

(XXV) Short-term borrowing

Classification of short-term borrowing

Item

Ending balance

9,412,127,723.77

Beginning balance

11,298,824,403.10

Loans in credit

Total

(XXVI) Notes payable

Category

Ending balance

Beginning balance

Bank acceptance notes

1,123,317,749.75

460,532,777.04

Total

1,123,317,749.75

460,532,777.04

Total amount of notes payable due but not paid at the end of this year is 0.00 Yuan.

(XXVII) Accounts payable

1. Presentation of accounts payable

Item

Within 1 year (including 1 year)

1-2 years (including 2 years)

2-3 years (including 3 years)

Over 3 years

Ending balance

Beginning balance

4,380,026,217.97

3,104,181,601.66

179,540,933.66

387,423,076.43

415,909,604.27

4,087,055,216.02

124,644,236.12

76,263,109.61

714,017,393.99

5,294,950,957.69

Total

Significant payables with the ageing over 1 year:

Reason for not repaying or

carrying forward

Item

Ending balance

Failure to reach the payment

condition agreed in contract

Powerchina Chengdu Engineering Corporation Limited

Goldwind Sci & Tech Co.,Ltd.

369,481,434.81

257,299,699.63

Failure to reach payment

Notes to Financial Statement Page116

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

condition

Failure to reach settlement

condition

Jinko Power Technology Co., Ltd.

XEMC Windpower Co., Ltd.

71,554,630.40

26,080,000.00

Failure to reach settlement

condition

CSSC Heavy Industry (Chongqing) Offshore Wind

Power Equipment Co., Ltd.

Failure to reach payment

condition

19,305,000.00

Total

743,720,764.84

(XXVIII)Advance from customers

Item

Within 1 year (including 1 year)

1 to 2 year (including 2 years)

Total

Ending balance

Beginning balance

5,005,308.72

47,461.01

5,815,676.05

5,052,769.73

(XXIX) Contract liability

Details of contract liability

Item

Ending balance

Beginning balance

3,793,261.65

45,264.83

Contract payment received in advance

7,895,468.46

91,871.96

Others

Total

7,987,340.42

3,838,526.48

(XXX) Employee compensation payable

Presentation of employee compensation payable

Increase in the current

year

Decrease in the current

year

Item

Beginning balance

145,128,315.32

1,202,759.54

Ending balance

204,681,812.01

1,765,226.09

Short-term compensation

3,867,014,861.29

417,444,007.61

3,807,461,364.60

416,881,541.06

Post-employment benefits -

defined contribution plan

Notes to Financial Statement Page117

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Increase in the current

year

Decrease in the current

year

Item

Beginning balance

Ending balance

Termination benefits

Short-term compensation

Total

2,577,778.00

146,331,074.86

4,287,036,646.90

4,226,920,683.66

206,447,038.10

Short-term remuneration

Beginning

balance

Decrease in this

year

Item

Increase in this year

Ending balance

I. Wages, salaries, bonuses,

allowancesandsubsidies

12,481,875.02

3,066,800,021.31

3,072,015,581.41

7,266,314.92

II.Employeebenefits

169,045,089.24

233,820,600.38

169,045,089.24

217,112,353.09

III.Socialinsurancepremiums

45,873,139.08

44,704,812.65

62,581,386.37

62,556,933.26

Including: medical insurance

premiums

217,126,062.59

13,861,568.19

2,822,733.26

199,273,941.98

15,006,860.72

2,821,314.05

Work-related

insurancepremiums

injury

1,168,326.43

23,033.90

1,419.21

Maternity

premiums

insurance

Others

10,236.34

IV.Housingaccumulationfund

349,820.00

219,899,475.82

219,861,000.82

388,295.00

V. Union funds and employee

educationfunds

86,413,017.48

119,543,654.70

71,799,550.34

134,157,121.84

VI. Short-term compensated

absence

VII. Short-term profit sharing

plan

5,496.10

VIII. Other short-term employee

benefits

10,463.74

57,900,523.74

57,622,293.60

288,693.88

Total

145,128,315.32

3,867,014,861.29

3,807,461,364.60

204,681,812.01

Notes to Financial Statement Page118

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Defined contribution plan

Beginning

balance

Decrease in this

year

Item

Increase in this year

243,754,260.95

8,749,993.40

Ending balance

19,868.94

Basic endowment insurance

premium

243,734,392.01

8,749,283.79

Unemployment insurance

premium

709.61

Enterprise annuity payment

1,202,759.54

164,939,753.26

164,397,865.26

1,744,647.54

Total

1,202,759.54

417,444,007.61

416,881,541.06

1,765,226.09

(XXXI) Tax payable

Tax and expense

Ending balance

Beginning balance

Value-added tax (VAT)

Resource tax

314,683,229.19

438,605,243.57

108,017,906.00

514,648,518.67

29,784,319.77

4,968,284.17

117,585,517.70

548,418,059.19

28,542,651.36

7,942,433.14

Corporate income tax

Urban maintenance and construction tax

Property tax

Land use tax

8,643,197.02

7,630,578.70

Individual income tax

163,230,401.42

20,880,075.72

106,295,829.31

1,316,221,394.05

101,534,799.59

21,830,299.57

118,818,928.83

1,345,838,878.87

Education surcharge (including local surcharge)

Other taxes

Total

(XXXII) Other payables

Item

Ending balance

Beginning balance

Interest payable

Dividends payable

87,508,495.61

71,076,080.55

Notes to Financial Statement Page119

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Item

Ending balance

Beginning balance

Other payables

15,961,973,958.16

16,893,876,333.91

Total

16,049,482,453.77

16,964,952,414.46

Dividends payable

Item

Ending balance

Beginning balance

Ordinary share dividends

33,025,207.92

54,483,287.69

87,508,495.61

15,806,491.48

55,269,589.07

71,076,080.55

Preferred stock/perpetual bond dividends

classified as equity instrument

Total

Other payables

(1) Classification of other payables by nature

Nature

Ending balance

Beginning balance

Transactions payable

12,564,434,292.90

531,981,114.43

1,931,772,599.79

67,063,888.24

13,011,757,680.24

263,432,886.96

1,893,585,025.77

53,782,041.24

Guarantees and deposits payable

Reservoir area fund

Project acquisitions

Insurance compensation

Special-purpose fund

Others

10,012,459.93

6,001,343.42

671,448,550.00

185,261,052.87

15,961,973,958.16

653,500,000.00

1,011,817,356.28

16,893,876,333.91

Total

(2) Significant other payables with an ageing over 1 year

Reason for not repaying or

carrying forward

Item

Ending balance

PowerChina Chengdu Engineering Corporation Limited

254,643,314.36 Warranty not expired

Notes to Financial Statement Page120

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Reason for not repaying or

carrying forward

Item

Ending balance

Failure to reach the payment

condition agreed in contract

PowerChina Huadong Engineering Corporation Limited

82,247,944.63

China Gezhouba Group Company Limited

State Grid Fujian Electric Power Co., Ltd.

73,876,454.17 Warranty not expired

29,309,248.43 Unsettled

Failure to reach the payment

condition agreed in contract

Jinko Power Co., Ltd.

24,040,000.00

Total

464,116,961.59

(XXXIII)Non-current liabilities due within one year

Item

Ending balance

Beginning balance

7,071,171,337.45

3,049,262,465.89

232,995,593.50

Long-term borrowing due within one year

Bond payable due within one year

Long-term payables due within one year

Lease liability due within one year

Total

9,254,686,433.98

3,067,894,246.63

20,138,752.35

51,387,420.36

96,066,043.06

12,394,106,853.32

10,449,495,439.90

List of Long-term borrowing due within one year

Item

Ending balance

Beginning balance

Pledged borrowing

Mortgage loans

Loans in credit

Total

951,020,630.28

1,036,590,278.46

55,064,227.78

54,673.34

8,303,611,130.36

9,254,686,433.98

5,979,516,831.21

7,071,171,337.45

Notes to Financial Statement Page121

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Bond payable due within one year

Bond name

Face Value

Date of issuance

Bond period

Issuing value

Beginning balance

Reclassified amount

Interest accrued as per face amount

Amortization of premium/discount

Repayment in this year

Ending balance

20 Yalong

100.00

2020/5/26

3years

1,000,000,000.00

1,016,603,835.71

11,196,164.29

1,027,800,000.00

River GN001

G20 Yalong 1

G20 Yalong 2

GC Yalong 01

100.00

2020/4/3

2020/9/8

2021/4/8

3years

1,000,000,000.00

1,021,513,424.78

1,011,145,205.40

7,786,575.22

24,854,794.60

35,500,000.00

1,029,300,000.00

1,036,000,000.00

35,500,000.00

1,025,676,712.36

309,780,000.00

1,025,676,712.36

309,780,000.00

21 Yalong

100.00

2021/2/7

3years

300,000,000.00

700,000,000.00

10,950,000.00

24,500,000.00

10,950,000.00

24,500,000.00

River GN001

21 Yalong

River GN002

(Carbon

2021/4/12

717,586,301.38

Neutral Bond)

2021

Medium-term

Note of SDIC

Power

100.00

2021/7/14

3years

1,000,000,000.00

1,014,851,232.89

31,700,000.00

1,014,851,232.89

Holdings Co.,

Ltd. (Series 1)

Total

6,000,000,000.00

3,049,262,465.89

3,067,894,246.63

146,487,534.11

3,195,750,000.00

3,067,894,246.63

Notes to Financial Statement Page122

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

(XXXIV)Other current liabilities

Item

Ending balance

Beginning balance

Tax to be written off

815,728.82

203,744.15

Total

815,728.82

203,744.15

Notes to Financial Statement Page124

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Changes in short-term bonds payable:

Whether

or not

you are

Balance at

the end of

year

Amortization

of excess or

discount

Face

value

Coupon

rate

Date of

issue

Bond

term

Interest is

charged at par

Current

repayments

Closing

balance

Bond name

Amount issued

Current issue

default

Yalong River

Hydropower

Development

Co., LTD. The

first phase of

2023 ultra short

term financing

bond

May 23,

2023

100.00

2.12%

90 days

1,000,000,000.00

5,213,114.75

1,005,213,114.75

Note: Yalong River Hydropower Development Co., Ltd. issued the "Yalong River Hydropower Development Co., Ltd. 2023 First Ultra-Short Term

Financing Bond" on May 23, 2023. The face value of each bond is RMB100, the issue price is RMB100 per bond, and the actual scale is RMB1 billion; The

maturity of the current bond is 90 days, and the current bond is a fixed interest rate coupon with a coupon rate of 2.12%.

Notes to Financial Statement Page125

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

(XXXV) Long-term borrowing

Item

Ending balance

Beginning balance

Pledged borrowing

Mortgage loans

Guaranteed loans

Loans in credit

11,292,110,211.31

11,310,629,564.46

467,375,375.00

555,636,980.56

101,912,662,228.66

94,497,779,001.76

Total

113,672,147,814.97

106,364,045,546.78

The interest rate range for long-term borrowing is 0.1%-4.45%.

(XXXVI)Bonds payable

1. List of bonds payable

Item

Ending balance

Beginning balance

2019 Corporate Bond of SDIC Power Holdings Co., Ltd (Series

1,230,935,342.51

1,230,935,342.48

2021 Corporate Bond Issued publically to Accredited Investors of

SDIC Power Holdings Co., Ltd. (Series 1)

615,813,698.58

615,813,698.61

1,014,851,232.88

1,001,691,518.74

1,000,360,153.00

2021 Medium-term Note of SDIC Power Holdings Co., Ltd.

(Series 1)

2022 Medium-term Note of SDIC Power Holdings Co., Ltd.

(Series 1)

1,002,625,723.98

1,001,265,501.08

1,009,709,299.39

1,010,589,725.38

2022 Medium-term Note of SDIC Power Holdings Co., Ltd.

(Series 2)

2023 Corporate Bond of SDIC Power Holdings Co., Ltd (Series

1) (23 Power 01)

2023 Corporate Bond of SDIC Power Holdings Co., Ltd (Series

1) (23 Power 02)

2023 Corporate Bond of SDIC Power Holdings Co., Ltd (Series

2) (23 Power 03)

1,004,939,262.33

2021 Green Corporate Bond Issued Publically to Accredited

Investors of Yalong River Hydropower Development Co., Ltd.

(Series 1) (Special for Carbon Neutral)

1,025,676,712.36

Notes to Financial Statement Page126

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Item

Ending balance

Beginning balance

2022 Green Corporate Bond Issued Publically to Professional

Investors of Yalong River Hydropower Development Co., Ltd.

(Series 1)

1,020,749,315.05

1,020,830,684.91

2021 Green Medium-term Note of Yalong River Hydropower

Development Co., Ltd. (Series 1) (Carbon Neutral Bond)

309,780,000.00

717,586,301.38

1,021,293,150.71

1,016,841,643.86

1,013,578,082.24

2021 Green Medium-term Note of Yalong River Hydropower

Development Co., Ltd. (Series 2) (Carbon Neutral Bond)

2022 Green Medium-term Note of Yalong River Hydropower

Development Co., Ltd. (Series 1) (Carbon Neutral Bond)

1,021,293,150.71

1,016,767,123.31

1,013,578,082.24

2022 Green Medium-term Note of Yalong River Hydropower

Development Co., Ltd. (Series 2) (Carbon Neutral Bond)

2022 Green Medium-term Note of Yalong River Hydropower

Development Co., Ltd. (Series 3) (Carbon Neutral Bond)

2023 Green Medium-term Note of Yalong River Hydropower

Development Co., Ltd. (Series 1) (Sci-Tech Innovation Note)

1,009,948,493.09

Total

11,958,214,717.65

10,989,238,521.17

Notes to Financial Statement Page127

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Increase/decrease of bond payable (exclusive of preference stock, perpetual bond and other financial instruments classified into finance

liabilities)

Amortization

Face

Interest

Face

Bond

Beginning

balance

Issuance in this

year

Repayment in

this year

Due within one

year

Default

or not

Bond name

interes

t rate

Issuing date

Issuing value

accrued as per

face amount

Ending balance

amount

period

premium/disc

ount

2019 Corporate Bond of

SDIC Power Holdings

Co., Ltd (Series 1) (Note

100.00

4.59

2019/6/11

10 years

1,200,000,000.00

1,230,935,342.48

55,080,000.03

55,080,000.00

1,230,935,342.51

2021 Corporate Bond

Issued publically to

Accredited Investors of

SDIC Power Holdings

Co., Ltd. (Series 1) (Note

100.00

3.70

2021/4/16

5 years

600,000,000.00

615,813,698.61

22,199,999.97

22,200,000.00

615,813,698.58

2021 Medium-term Note

of SDIC Power Holdings

Co., Ltd. (Series 1) (Note

100.00

3.17

2.57

2.90

2021/7/14

2022/10/27

3 years

5 years

1,000,000,000.00

1,014,851,232.88

1,001,691,518.74

1,000,360,153.00

31,700,000.01

25,700,000.00

29,000,000.00

31,700,000.00

25,700,000.00

29,000,000.00

-1,014,851,232.89

2022 Medium-term Note

of SDIC Power Holdings

Co., Ltd. (Series 1) (Note

-934,205.24

-905,348.08

1,002,625,723.98

1,001,265,501.08

2022 Medium-term Note

of SDIC Power Holdings

Co., Ltd. (Series 2) (Note

Notes to Financial Statement Page128

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Amortization

Face

Interest

Face

Bond

Beginning

balance

Issuance in this

year

Repayment in

this year

Due within one

year

Default

or not

Bond name

interes

t rate

Issuing date

2023/8/15

2023/10/26

Issuing value

accrued as per

face amount

Ending balance

1,009,709,299.39

1,010,589,725.38

1,004,939,262.33

amount

period

premium/disc

ount

2023 Corporate Bond of

SDIC Power Holdings

Co., Ltd (Series 1) (23

Power 01) (Note 5)

100.00

2.68

2.92

2.98

3 years

5 years

3 years

1,000,000,000.00

999,528,301.88

999,528,301.89

10,132,602.74

11,040,000.00

5,388,493.15

-48,394.77

-21,423.49

-22,467.29

2023 Corporate Bond of

SDIC Power Holdings

Co., Ltd (Series 1) (23

Power 02) (Note 5)

2023 Corporate Bond of

SDIC Power Holdings

Co., Ltd (Series 2) (23

Power 03) (Note 6)

2021 Green Corporate

Bond Issued Publically to

Accredited Investors of

Yalong River

100.00

3.55

2021/4/8

3 years

1,000,000,000.00

1,025,676,712.36

35,500,000.00

-1,025,676,712.36

Hydropower

Development Co., Ltd.

(Series 1) (Special for

Carbon Neutral) (Note 7)

2022 Green Corporate

Bond Issued Publically to

Professional Investors of

Yalong River

100.00

2.97

2022/4/19

3 years

1,000,000,000.00

1,020,830,684.91

29,618,630.14

29,700,000.00

1,020,749,315.05

Hydropower

Development Co., Ltd.

(Series 1) (Note 8)

Notes to Financial Statement Page129

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Amortization

Face

Interest

Face

Bond

Beginning

balance

Issuance in this

year

Repayment in

this year

Due within one

year

Default

or not

Bond name

interes

t rate

Issuing date

Issuing value

accrued as per

face amount

Ending balance

amount

period

premium/disc

ount

2021 Green

Medium-term Note of

Yalong River

Hydropower

100.00

3.65

2021/2/7

3 years

300,000,000.00

309,780,000.00

10,950,000.00

-309,780,000.00

Development Co., Ltd.

(Series 1) (Carbon

Neutral Bond) (Note 9)

2021 Green

Medium-term Note of

Yalong River

Hydropower

100.00

3.50

2.90

2.72

2021/4/12

2022/4/7

2022/5/19

3 years

700,000,000.00

1,000,000,000.00

717,586,301.38

1,021,293,150.71

1,016,841,643.86

24,500,000.00

29,000,000.00

27,125,479.45

24,500,000.00

29,000,000.00

27,200,000.00

-717,586,301.38

Development Co., Ltd.

(Series 2) (Carbon

Neutral Bond) (Note 9)

2022 Green

Medium-term Note of

Yalong River

Hydropower

1,021,293,150.71

Development Co., Ltd.

(Series 1) (Carbon

Neutral Bond) (Note 10)

2022 Green

Medium-term Note of

Yalong River

Hydropower

1,016,767,123.31

Development Co., Ltd.

(Series 2) (Carbon

Neutral Bond) (Note 10)

Notes to Financial Statement Page130

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Amortization

Face

Interest

Face

Bond

Beginning

balance

Issuance in this

year

Repayment in

this year

Due within one

year

Default

or not

Bond name

interes

t rate

Issuing date

Issuing value

accrued as per

face amount

Ending balance

amount

period

premium/disc

ount

2022 Green

Medium-term Note of

Yalong River

Hydropower

100.00

2.80

2022/7/7

3 years

1,000,000,000.00

1,013,578,082.24

28,000,000.00

1,013,578,082.24

Development Co., Ltd.

(Series 3) (Carbon

Neutral Bond) (Note 10)

2023 Green

Medium-term Note of

Yalong River

Hydropower

100.00

2.67

2023/8/16

3 years

1,000,000,000.00

9,948,493.09

1,009,948,493.09

Development Co., Ltd.

(Series 1) (Sci-Tech

Innovation Note) (Note

11)

Total

14,800,000,000.00

10,989,238,521.17

3,998,584,905.66

384,883,698.58

-1,931,838.87

348,530,000.00

-3,067,894,246.63

11,958,214,717.65

Note 1: With the approval by China Securities Regulatory Commission via ZJXK[2019]No.580 document, the Company can issue the corporate

bond with face value not greater than RMB 1.80 billion Yuan on the open market. On June 11, 2019, the Company issued the company bond (series 1).

In the series, the face value per bond was RMB 100.00 Yuan, the issuing price was 100.00 Yuan/bond, and the actual size was RMB 1.20 billion Yuan,

the bond period was 10 years, the bond was fixed-rate bond and the face interest rate was 4.59%, and the interest was paid once a year.

Notes to Financial Statement Page131

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Note 2: With the approval by China Securities Regulatory Commission via ZJXK[2019]No.580 document, the Company can issue the corporate

bond with face value not greater than RMB 1.80 billion Yuan to accredited investors on the open market. On April 16, 2021, the Company issued the

company bond (series 2). In the series, the face value per bond was RMB 100.00 Yuan, the issuing price was 100.00 Yuan/bond, the actual size was

RMB 0.60 billion Yuan, the bond period was 5 years, the bond was fixed-rate bond and the face interest rate was 3.70%, and the interest was paid

once a year.

Note 3: On July 14, 2021, the Company issued the 2021 medium-term note (series 1). In the series, the face value per note was RMB 100.00

Yuan, the issuing price was 100.00 Yuan/note, and the actual size was RMB 1.00 billion Yuan, the face interest rate was 3.17%, the interest was paid

once a year, and the period was 3 years.

Note 4: The First Issue of 2022 medium-term notes was completed by the Company on October 27, 2022. The par value of each medium-term

note in the current issue is RMB 100, the issue price is RMB 100, and the actual scale is RMB 1 billion. The coupon rate is 2.57%, and the interest is

paid once a year with a term of 3 years. The Second Issue of 2022 medium-term notes was completed on October 27, 2022. The par value of each

medium-term note in the current issue is RMB 100, the issue price is RMB 100, and the actual scale is RMB 1 billion. The coupon rate is 2.90%, and

the interest is paid once a year with a term of 5 years.

Note 5: With the approval by China Securities Regulatory Commission via ZJXK[2021]No.3715 document, the Company can issue the corporate

bond not greater than RMB 3.00 billion Yuan to professional investors on the open market. On August 15, 2023, the Company issued the corporate

bond (series 1). The series included 3-year bond and 5-year bond. In the series, the face value per bond was RMB 100.00 Yuan, the issuing price was

100.00 Yuan/bond, the actual size was RMB 2.00 billion Yuan, the bond was a fix-rated bond, the face interest rate was 2.68% for 3-year bond and

Notes to Financial Statement Page132

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

2.92% for 5-year bond, and the interest was paid once a year.

Note 6: With the approval by China Securities Regulatory Commission via ZJXK[2021]No.3715 document, the Company can issue the corporate

bond not greater than RMB 3.00 billion Yuan to professional investors on the open market. On October 26, 2023, the Company issued the company

bond (series 2). In the series, the face value per bond was RMB 100.00 Yuan, the issuing price was 100.00 Yuan/bond, and the actual size was RMB

1.00 billion Yuan, the bond period was 3 years, the bond was a fix-rated bond and the face interest rate was 2.98%, and the interest was paid once a

year.

Note 7: With the approval by China Securities Regulatory Commission via ZJXK[2020]No.91 document, Yalong River Hydropower

Development Co., Ltd. can issue the green corporate bond with face value not greater than RMB 3.00 billion Yuan on the open market. On April 8,

2021, Yalong River Hydropower Development Co., Ltd. issued the green company bond (series 3). In the series, the face value per bond was RMB

100.00 Yuan, the issuing price was 100.00 Yuan/bond, the actual size was RMB 1.00 billion Yuan, the bond period was 3 years, the bond was a

fix-rated bond, and the face interest rate was 3.55%, and the interest was paid once a year.

Note 8: With the approval of China Securities Regulatory Commission "ZJXK [2021] No. 3124", the Yalong River Hydropower Development

Co., Ltd. is allowed to issue corporate bonds with a total par value not exceeding RMB 5 billion (including RMB 5 billion) to the public. The First

Issue of Yalong Hydro's corporate bonds was completed on April 19, 2022. The par value of each bond in the current issue is RMB 100, the issue price

is RMB 100, and the scale is RMB 1 billion; The bonds are fixed-rate bonds with a term of 3 years and a fixed coupon rate of 2.97%, and the interest

is paid once a year.

Notes to Financial Statement Page133

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Note 9: Yalong River Hydropower Development Co., Ltd. completed the issuance of the first phase of the 2021 Green Medium-Term Notes on

February 7, 2021. The face value of each note is RMB100.00, the issue price is RMB100.00 / Note, and the actual size is RMB300.00 million. The

term of the current note is 3 years, the current note is a fixed interest rate coupon, the coupon rate is 3.65%, and the interest is paid once a year. On

April 12, 2021, Yalong River Hydropower Development Co., Ltd. completed the issuance of the second phase of the 2021 Green Medium-Term Notes.

The face value of each note is 100.00 yuan, the issue price is 100.00 yuan/sheet, and the actual scale is 700.00 million yuan. The maturity of the

current note is 3 years, and the current note is a fixed interest rate note with a coupon rate of 3.50%, which is paid once a year.

Note The First Issue of Green Medium-term Notes of Yalong River Hydropower Development Co., Ltd. was completed on April 7, 2022. The par

value of each medium-term note in the current issue is RMB 100, the issue price is RMB 100, and the actual scale is RMB 1 billion; The term of the

current note is 3 years. The current note is a fixed-rate note with a coupon rate of 2.90% and an annual interest payment. The Second Issue of Green

Medium-term Notes of Yalong River Hydropower Development Co., Ltd. was completed on May 19, 2022. The par value of each medium-term note

in the current issue is RMB 100, the issue price is RMB 100, and the actual scale is RMB 1.0 billion; The term of the current note is 3 years. The

current note is a fixed-rate note with a coupon rate of 2.72% and an annual interest payment. The Third Issue of Green Medium-term Notes of Yalong

River Hydropower Development Co., Ltd. was completed on July 7, 2022. The par value of each medium-term note in the current issue is RMB 100,

the issue price is RMB 100, and the actual scale is RMB 1 billion; The term of the current note is 3 years. The current note is a fixed-rate note with a

coupon rate of 2.80% and an annual interest payment.;

Note 11: On August 16, 2023, Yalong River Hydropower Development Co., Ltd. issued the 2023 green medium-term note (series 1) (sci-tech

innovation note). In the series, the face value per note was RMB 100.00 Yuan, the issuing price was 100.00 Yuan/note, the actual size was RMB 1.00

billion Yuan, the period was 3 years, the note was a fixed-rate note, the face interest rate was 2.67%, and the interest was paid once a year.

Notes to Financial Statement Page134

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

(XXXVII) Lease liability

Item

Ending balance

Beginning balance

Lease payment

1,248,108,689.20

725,998,099.26

Unrecognized financing cost

368,350,346.22

51,387,420.36

828,370,922.62

164,199,164.37

96,066,043.06

465,732,891.83

Reclassified to current portion of non-current

liabilities

Total

(XXXVIII)

Long-term payable

Item

Ending balance

Beginning balance

Long-term payable

1,046,184,098.06

338,223,870.47

Total

1,046,184,098.06

338,223,870.47

Top five long-term payables with the largest ending balance

Item

Ending balance

Beginning balance

SDIC Finance Lease Co., Ltd.

1,045,924,143.35

337,878,994.74

344,875.73

Others

259,954.71

Total

1,046,184,098.06

338,223,870.47

(XXXIX)Long-term employee compensation payable

List of long-term employee compensation payable

Item

Ending balance

Beginning balance

I. Post-employment benefit--defined benefit plan net

liability

487,223,820.47

484,447,065.30

II. Other long-term benefits

1,867,424.27

1,740,804.18

Total

489,091,244.74

486,187,869.48

Notes to Financial Statement Page135

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Change in defined benefit plan

(1) Present value of defined benefit plan obligation

Item

Amount in the current year

Amount in the previous year

1. Beginning balance

484,447,065.30

-14,506,618.11

477,476,478.55

2. Defined benefit cost included in the current profits

and losses

-16,346,414.78

(1) Current service cost

48,804.92

-1,241,693.49

-1,384,757.10

(2) Previous service cost

-2,130,000.00

(3) Settlement gains (losses to be listed with “-”)

(4) Net interest

-12,425,423.03

-2,990,876.40

-13,719,964.19

-7,054,724.85

3. Defined benefit cost charged to other comprehensive

income

(1) Actuarial gains (losses to be listed with “-”)

4. Other changes

-2,990,876.40

14,720,739.34

2,294,941.13

9,833,199.68

-7,054,724.85

16,430,552.88

3,085,965.08

13,567,411.49

(1) Consideration paid in case of settlement

(2) Paid welfare

(3)Translation differences arising from foreign currency

transactions

2,592,598.53

-222,823.69

5. Ending balance

487,223,820.47

484,447,065.30

2. Change of defined benefit plan - net liabilities (net assets) in defined benefit plan

Amount in the current

Item

Amount in the previous year

477,476,478.55

year

1. Beginning balance

484,447,065.30

2. Defined benefit cost included in the current profits and

losses

-14,506,618.11

-2,990,876.40

-16,346,414.78

3.. Defined benefit cost included in other comprehensive

income

-7,054,724.85

4. Other changes

14,720,739.34

16,430,552.88

5. Ending balance

487,223,820.47

484,447,065.30

Notes to Financial Statement Page136

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

(XL) Estimated liability

Increase in this

year

Decrease in

this year

Item

Beginning balance

Ending balance

Reason

Obligation to

assets disposal

20,754,417.20

25,684,320.93

46,438,738.13

Others

2,342,250.82

73,586.05

339,266.62

2,076,570.25

Total

23,096,668.02

25,757,906.98

339,266.62

48,515,308.38

(1)The Disposal expenses are the estimated expenses for closing Afton Wind Farm

Limited and Benbrack Wind Farm Limited.In the future, which is 5,136,403.55 Sterling

pound at the end of year.

(XLI) Deferred income

Increase in the

current year

Decrease in the

current year

Cause of

formation

Item

Beginning balance

Ending balance

Government

subsidies

153,170,943.78

4,842,260.00

20,025,467.14

137,987,736.64

Total

153,170,943.78

4,842,260.00

20,025,467.14

137,987,736.64

Notes to Financial Statement Page137

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Projects using government subsidies:

Amount

Amount included in

other gains in the

current year

included in

non-operating

incomes of the

current year

Amount

refunded in this

year

Reason

for

refund

Amount of new subsidies in

current year

Asset-related/

Income-related

Projects using government subsidies

Beginning balance

Other changes

Ending balance

Refund for land requisition of Beijiang power plant

project

57,941,699.81

1,859,091.96

1,066,666.56

556,666.68

56,082,607.85

12,177,778.01

2,133,888.70

Asset-related

Phase II flue gas condensation and dehumidification

technical transformation

13,244,444.57

2008 import interest subsidy appropriated by the

central government

2,690,555.38

1,188,888.97

2# unit low-temperature economizer modification

Special fund for liquid ammonia-to-urea project

133,333.32

134,831.44

1,055,555.65

2,865,168.56

Asset-related

3,000,000.00

Study on the influence mode of hydropower

development on downstream water temperature

1,088,791.58

824,362.00

690,400.00

1,088,791.58

824,362.00

0.00

Income-related

Extra-high earth core rockfill dam construction

material engineering characteristics and dam body

deformation and seepage safety control

Study on mechanical property and long-term stability

of the rock mass of different depth

690,400.00

676,523.56

Study on earthquake damage evolution mechanism,

seismic performance and engineering measure for

extra-high core-wall rockfill dam at 300m in highly

seismic region

655,100.00

25,780.00

4,356.44

Income-related

Notes to Financial Statement Page138

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Study on the construction quality of high core-wall

rockfill dam and its theoretical method of intelligent

schedule monitoring

651,660.00

638,769.42

603,464.75

17,681.85

638,769.42

603,464.75

633,978.15

Income-related

Study on multi-electrode high purity germanium

detection technology with extremely low radiation

background

Study on deformation compatibility and construction

quality control theory and method of extra-high earth

core rockfill dam

Work mechanism and safety diagnosis of deep-buried

tunnel during operation

590,404.48

586,064.17

580,000.00

575,445.00

574,476.79

590,404.48

142,541.45

580,000.00

680,245.00

686,476.79

Income-related

Development of charged particle spectrograph for

screening of materials with extremely low radiation

443,522.72

Study on extremely low background radon

concentration measurement technology

Study on long-term deformation characteristics and

crack mechanism of extra-high earth core rockfill dam

104,800.00

112,000.00

Deep-seated fault activation law and cavern group

stability and environmental safety evaluation

Study on the flow propagation law and incoming water

forecast in Yalong River basin and the optimization

control and risk decision of cascaded hydropower plant

511,316.59

457,391.58

393,956.88

511,316.59

457,391.58

393,956.88

Income-related

Study on life cycle design, operation and maintenance

intelligent

wind,

solar

and

hydraulic

complementation

Study on drainage and atomization mechanism and

telemetry-forecast-hazard control technology of high

dam junction in complex environment

Notes to Financial Statement Page139

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Study on optimized dispatching mode for

wind-solar-hydraulic complementary operation in

Yalong River basin

391,153.16

388,970.43

391,153.16

388,970.43

Income-related

Study on long-term mechanical property and safety

evaluation and control of deep-buried diversion tunnel

surrounding rock and support system

Key problem study on development, operation and

management of large-sized wind-solar-hydraulic

complementary clean energy base in Yalong River

basin

349,228.86

28,800.00

238,778.77

139,250.09

Income-related

Study on fractured surrounding rock seepage stability

and dynamic mechanical behavior of extra deep cavern

348,000.00

300,000.00

277,012.96

246,441.61

278,080.00

312,800.00

0.00

626,080.00

612,800.00

197,319.03

Income-related

Integrated simulation analysis theory and dynamic

control method of large-sized underground cavern

group stability under complex geological condition

Diversion tunnel underwater robot system integration

and pilot application

79,693.93

246,441.61

High slope construction and operation life-cycle

stability evolution mechanism and safety control of

hydropower project

Study on surrounding rock fissure network structure

characteristics and evolution law under deep-buried

condition when considering the effect of crack

propagation

118,860.00

Income-related

Study on surrounding rock unloading seepage

characteristics and structural evolution law of

deeply-buried cavern in high-stress and high osmotic

pressure environment

116,320.00

113,160.00

116,320.00

113,160.00

Income-related

Dynamic counter-analysis and construction response of

underground cavern group controlling structural plane

parameters when considering unloading effect by zone

Notes to Financial Statement Page140

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Study on 10GW wind-solar-hydraulic complementary

multi-level collaborative intelligent scheduling mode

and key technology in Yalong River basin

110,000.00

106,440.00

110,000.00

106,440.00

Income-related

Short-term scheduling mode and gain distribution

mechanism of wind-solar complementary power

system containing giant cascade hydropower

Study on wear-resisting concrete crack of discharge

structure under high-altitude and high-flow-rate

conditions

100,000.00

Income-related

Freezing disaster mechanism and control technology of

fording infrastructure under high, cold and freezing and

thawing conditions in northwest region

87,055.20

83,477.86

81,945.82

0.00

83,477.86

56,001.96

87,055.20

Income-related

Rockfill material critical state theory and constitutive

model when considering the effect of particle breakage

Intelligent scheduling and optimum operation of

cascade hydropower station based on spatio-temporal

big data

25,943.86

Study on wind energy resource multi-scale coupling

evaluation method of Yalong River basin based on

numerical simulation

77,247.34

Income-related

Study on wind energy measurement of complex

mountain

66,000.00

51,131.80

66,000.00

0.00

Income-related

Ultra high purity background realization and

measurement of liquid xenon dark matter detector

51,131.80

42,179.11

Study on wind resource multi-scale coupling numerical

simulation evaluation method for wind farm

micro-siting

44,179.03

30,133.59

1,999.92

Income-related

Study on the safety of hydropower station in Yalong

River basin based on big data

30,133.59

Notes to Financial Statement Page141

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Provincial finance special fund for energy saving and

58,064.52

11,612.90

7,646.33

46,451.62

8,283.53

Asset-related

consumption reduction

Asset appropriated by the government

15,929.86

Financial incentive for #2 steam turbine through-flow

reconstruction and other energy system optimization

projects

662,248.10

220,749.24

6,377.28

441,498.86

12,754.31

Asset-related

Financial incentive for 2# steam turbine through-flow

reconstruction

19,131.59

Environmental subsidy for additional installation of

reserved layer catalyst in flue gas denitrification

system

1,861,986.51

743,187.00

1,118,799.51

Financial incentive for 1# steam turbine through-flow

and

thermal

power

system

energy-saving

282,963.02

53,897.64

229,065.38

Asset-related

reconstruction project

Subsidy for integral control of nitrogen oxide emission

of four units

849,752.34

2,597,000.00

2,412,599.92

178,471.53

294,000.00

268,066.68

671,280.81

2,303,000.00

2,144,533.24

Asset-related

Subsidy for phase I heating unit reconstruction

Subsidy for 3# steam turbine through-flow

reconstruction EPC project

Subsidy for 4# steam turbine through-flow

reconstruction EPC project

2,434,938.81

1,240,066.52

1,034,722.52

268,066.68

130,533.36

83,333.28

2,166,872.13

1,109,533.16

951,389.24

Asset-related

Subsidy for 2# steam turbine through-flow

reconstruction EPC project

Subsidy for phase

reconstruction

I 220KV step-up substation GIS

Notes to Financial Statement Page142

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Subsidy for 3# unit flue gas pollutant ultra-clean

2,064,905.50

229,434.00

228,000.00

192,151.92

190,943.40

1,835,471.50

1,843,000.00

1,537,215.08

1,543,459.10

Asset-related

emission upgrade and reconstruction

Subsidy for 4# unit flue gas pollutant ultra-clean

2,071,000.00

emission upgrade and reconstruction

Incentive for 3# unit flue gas pollutant ultra-clean

1,729,367.00

emission upgrade and reconstruction

Incentive for 4# unit flue gas pollutant ultra-clean

1,734,402.50

emission upgrade and reconstruction

Environmental fund subsidy for 1# unit flue gas

pollutant

reconstruction

ultra-clean

emission

upgrade

and

1,139,929.00

1,128,148.00

1,109,358.00

1,112,588.50

3,383,935.46

115,925.04

118,752.48

123,262.08

122,486.76

344,129.04

1,024,003.96

1,009,395.52

986,095.92

Asset-related

Environmental fund subsidy for 2# unit flue gas

pollutant ultra-clean emission upgrade and

reconstruction

Environmental fund subsidy for 3# unit flue gas

pollutant ultra-clean emission upgrade and

reconstruction

Environmental fund subsidy for 4# unit flue gas

pollutant ultra-clean emission upgrade and

reconstruction

990,101.74

Environmental investment subsidy for 1# unit flue gas

pollutant ultra-clean emission upgrade and

reconstruction

3,039,806.42

Environmental investment subsidy for 2# unit flue gas

pollutant ultra-clean emission upgrade and

reconstruction

3,355,827.67

1,690,064.54

353,245.08

171,870.96

3,002,582.59

1,518,193.58

Asset-related

Investment incentive for 1# unit flue gas pollutant

ultra-clean emission upgrade and reconstruction

Notes to Financial Statement Page143

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Investment incentive for 2# unit flue gas pollutant

1,676,026.37

176,423.88

44,503.32

46,344.84

46,027.44

24,518.28

49,133.40

16,097.52

46,987.92

14,457.84

239,012.40

1,499,602.49

378,278.11

370,758.57

372,054.62

277,873.05

565,034.27

182,439.12

540,361.52

166,265.04

1,195,061.27

Asset-related

ultra-clean emission upgrade and reconstruction

Investment incentive for for 2# steam turbine

422,781.43

through-flow reconstruction EPC project

Investment incentive for for 3# steam turbine

417,103.41

through-flow reconstruction EPC project

Investment incentive for for 4# steam turbine

418,082.06

through-flow reconstruction EPC project

Incentive and subsidy for technical transformation of

302,391.33

coal-fired sludge coupled power generation (2020)

Incentive and subsidy for reducing agent preparation

614,167.67

system reconstruction of denitrification system (2020)

Incentive for technical transformation of coal-fired

198,536.64

sludge coupled power generation (2021)

Incentive for reducing agent preparation system

587,349.44

reconstruction of denitrification system (2021)

Subsidy for reducing agent preparation system

180,722.88

reconstruction of denitrification system (2021)

Subsidy for denitrification and emission reduction of

1,434,073.67

SDIC Qinzhou Electric Power Co., Ltd.

Government subsidy for construction of intelligent

power plant from Qinzhou Port Industry and Hi-tech

Industry Bureau

791,666.75

99,999.96

691,666.79

Asset-related

Government subsidy for energy-saving reconstruction

from Finance Bureau of Qinzhou Port Economic and

Technological Development Zone

18,911,071.30

1,054,546.84

17,856,524.46

Notes to Financial Statement Page144

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

(XLII) Other non-current liabilities

Item

Ending balance

58,504,088.38

1,100,917.42

Beginning balance

63,391,045.26

1,169,724.76

Investment in 220kV pooling station of Naomaohu project

Iron tower leasing of Xinjiang Huaneng Xinhuozhou Power Co., Ltd.

Lease payment received in advance for Hanggin Banner Ducheng Green

Energy Step-up Substation Access, Operation and Maintenance

Contract

3,672,904.99

3,866,215.78

Shareholder loan

367,328,289.18

177,517,904.42

339,650,404.22

164,814,352.40

51,629.76

BOWL over-allocation

Other--incentive for office rental

Total

608,124,104.39

572,943,372.18

(XLIII) Share capital

Increase (+)/decrease (-) in the current year

Capital

surplus

converted

into share

capital

Item

Beginning balance

Ending balance

Issue

of new

Bonus

issue

Others

Subtotal

Total

7,454,179,797.00

Notes to Financial Statement Page146

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

(XLIV) Other equity instruments

Basic information of other financial instruments as preferred shares and perpetual bond externally issued at the end of year

Dividend

Stock

conversion

condition

Outstanding financial

instruments

Accounting

classification

rate or

interest

rate

Issuing

price

Total amount

actually issued

Due date or

renewal

Conversion

condition

Issue date

Number

2020 Issue 1 of Renewable

Corporate Bonds (20 Power

Y1)

Other equity

instruments

June 4, 2020

3.40

3.14

3.18

3.24

3.05

3.00

100.00

5,000,000.00

500,000,000.00 June 3, 2023

None

2021 Issue 1 of Renewable

Corporate Bonds (21 Power

Y1)

August 10,

2021

Other equity

instruments

August 9,

2,000,000,000.00

2024

20,000,000.00

10,000,000.00

12,000,000.00

5,000,000.00

2021 Issue 2 of Renewable

Corporate Bonds (21 Power

Y2)

August 24,

2021

Other equity

instruments

August 23,

1,000,000,000.00

2024

2021 Issue 3 of Renewable

Corporate Bonds (21 Power

Y3)

November

11, 2021

Other equity

instruments

November

1,000,000,000.00

10, 2024

2022 Issue 1 of Renewable

Corporate Bonds (22 Power

Y2)

November

14, 2022

Other equity

instruments

November

1,200,000,000.00

13, 2027

2023 Issue 1 of Renewable

Corporate Bonds (23 Power May 26, 2023

Y1)

Other equity

instruments

May 26,

500,000,000.00

2026

Notes to Financial Statement Page147

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Dividend

Stock

conversion

condition

Outstanding financial

instruments

Accounting

classification

rate or

interest

rate

Issuing

price

Total amount

actually issued

Due date or

renewal

Conversion

condition

Issue date

Number

Total

62,000,000.00

6,200,000,000.00

Additional information:

2020 Issue 1 of Renewable

Corporate Bonds (20 Power

Y1)

2021 Issue 1 of Renewable

Corporate Bonds (21 Power Corporate Bonds (21

Y1)

2021 Issue 2 of Renewable

2021 Issue 3 of

Renewable Corporate

Bonds (21 Power Y3)

2022 Issue 1 of

Renewable Corporate

Bonds (22 Power Y2)

2023 Issue 1 of Renewable

Corporate Bonds (23 Power Y1)

Series

Power Y2)

Approval number.

ZJXK [2019] No.1297

RMB 0.50 billion

3 years

ZJXK [2019] No.1297

RMB 1.00 billion

3 years

ZJXK [2022] No.1768

RMB 1.20 billion

5 years

ZJXK [2022] No.1768

RMB 0.50 billion

3 years

Total amount

actually issued

RMB 2.00 billion

3 years

RMB 1.00 billion

3 years

Duration

At the end of agreed base period

and each period, the issuer has the

right to exercise the renewal option

and extend by another one period as

agreed; otherwise the issuer shall

At the end of each period, the Issuer has the right to choose to extend the term of the Bonds by one period or choose to pay the Bonds in full at

Renewal option

the end of the period. The Issuer shall publish an announcement of the exercise of the option of renewal on the relevant media at least 30 business pay in full in due course. The issuer

days prior to the annual interest payment date for the exercise of the option of renewal.

shall publish a notice to exercise

such renewal option at least 30

business days before the interest

date in the year of exercising the

renewal option.

Notes to Financial Statement Page148

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Redemption right

(1) Redemption by the Issuer due to changes in tax policy; and (2) redemption by the Issuer due to changes in accounting standards.

The coupon rate for

the first 3 interest

years is 3.24%. If the

issuer does not

The coupon rate for the

first 5 interest years is

3.05%. If the issuer

does not exercise the

redemption right, the

coupon rate shall be

reset every 5 years

from the 6th interest

year, which shall be

determined by resetting

the current benchmark

interest rate plus the

initial interest rate

The coupon rate for the

first 3 interest years is

3.14%. If the issuer does

not exercise the redemption

right, the coupon rate shall

be reset every 3 years from

the 4th interest year, which

shall be determined by

resetting the current

benchmark interest rate

plus the initial interest rate

spread at the time of

issuance plus 300 basis

points.points.

The coupon rate for the

first 3 interest years is

3.18%. If the issuer does

not exercise the

The coupon rate for the first

3 interest years is 3.40%. If

the issuer does not exercise

the redemption right, the

coupon rate shall be reset

every 3 years from the 4th

interest year, which shall be

determined by resetting the

current benchmark interest

rate plus the initial interest

rate spread at the time of

issuance plus 300 basis

points.

The coupon rate for the first 5

interest years is 3.00%..If the issuer

does not exercise the redemption

right, then from the fourth

interest-bearing year the face

interest rate will be reset as the

benchmark interest rate at the

current period of reset plus the

initial interest margin when issued

plus 300 basis points every three

years.

exercise the

redemption right, the

coupon rate shall be

reset every 3 years

from the 4th interest

year, which shall be

determined by

resetting the current

benchmark interest

rate plus the initial

interest rate spread at

the time of issuance

plus 300 basis points.

redemption right, the

coupon rate shall be reset

every 3 years from the 4th

interest year, which shall

be determined by resetting

the current benchmark

interest rate plus the initial

interest rate spread at the

time of issuance plus 300

basis points.

Interest rate

spread at the time of

issuance plus 300 basis

points.

Changes in preferred shares, perpetual bonds and other financial instruments outstanding at the end of year

Beginning

Increase in this year

Quantity Book value

Decrease in this year

Ending

Outstanding

financial

instruments

Quantity

Book value

Quantity

Book value

Quantity

Book value

2020 Issue 1 of

Renewable Corporate

Bonds (20 Power

Y1))

5,000,000.00

499,964,622.64

5,000,000.00

499,964,622.64

Notes to Financial Statement Page149

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Beginning

Increase in this year

Decrease in this year

Ending

Outstanding

financial

instruments

Quantity

Book value

Quantity

Book value

Quantity

Book value

Quantity

Book value

2021 Issue 1 of

Renewable Corporate

Bonds (21 Power Y1)

20,000,000.00

10,000,000.00

12,000,000.00

1,999,858,490.57

20,000,000.00

10,000,000.00

12,000,000.00

1,999,858,490.57

2021 Issue 2 of

Renewable Corporate

Bonds (21 Power Y2)

999,929,245.28

999,929,245.29

1,199,433,962.27

999,929,245.28

999,929,245.29

1,199,433,962.27

2021 Issue 3 of

Renewable Corporate

Bonds (21 Power Y3)

2022 Issue 1 of

Renewable Corporate

Bonds (22 Power Y2)

2023 Issue 1 of

Renewable Corporate

5,000,000.00

499,764,150.94

5,000,000.00

499,764,150.94

Bonds (23 Power Y1)

Total

57,000,000.00

5,699,115,566.05

5,000,000.00

499,764,150.94

5,000,000.00

499,964,622.64

57,000,000.00

5,698,915,094.35

Note: After deducting relevant transaction expenses from the price received from the renewable corporate bonds issued by the Group, the

remaining amount is included in other equity instruments. The bond terms are expected to meet the requirements of term permanence and deferred

interest, and may be included in equity according to the Accounting Standards for Business Enterprises 37-Presentation of Financial Instruments (CK

[2014] No.23) and the Notice on Issuing the Provisions on the Distinction between Financial Liabilities and Equity Instruments and the Relevant

Notes to Financial Statement Page150

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Accounting Treatment (CK [2014] No.13).

(XLV) Capital reserve

Item

Beginning balance

10,810,223,977.61

Increase in this current year

Decrease in this current year

Ending balance

10,810,188,600.25

Share premium

35,377.36

Other capital reserve

138,168,125.96

20,929,458.67

159,097,584.63

Total

10,948,392,103.57

20,929,458.67

35,377.36

10,969,286,184.88

Note:

①During the current period, the Company sold its 100% equity interest in Huidong New Energy Co., Ltd. in Akse Hasak Autonomous County to Guotou New

Energy Investment Co. Ltd. for RMB179.00 million, and as investment income of RMB29.00 million arose from this disposal at the single entity level of the

Company, investment income corresponding to the portion attributable to the minority shareholders of Guotou New Energy Investment Co. Ltd. was recognized at

the consolidated level of the Group Capital surplus of RMB10,181.9 million;

②Changes in equity in associates belonging to the Company during the period increased capital surplus by $4,180.9 million;

③During the current period, the Company received a gain of $3,443,500 from GDR custodian fees;

④During the period, the capital surplus of the Group at consolidated level increased by RMB2,353,600,000 as a result of the divestment of the minority

shareholders of Sichuan Ertan Construction Consulting Company Limited, a subsidiary of Yalong River Basin Hydropower Development Company Limited.

Notes to Financial Statement Page151

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

(XLVI) Other comprehensive income

Amount in the current year

Minus:

Amount

Less: Amount

included in

other

included in

other

comprehensive

Amount

incurred

before income

tax in the

comprehensive

income in the

previous year

and

transferred to

profit and loss

in the current

year

Amount

after tax

attributable

to minority

shareholders

Beginning

balance

Ending

balance

Amount after

Item

Less: Income

tax expenses

tax

income in the

previous year

and

attributable to

the company

current year

transferred

to retained

income in the

current year

I. Other comprehensive

income not to be reclassified

into profit and loss

-109,864,791.24

-5,380,301.14

-28,014,751.32

-2,154,711.96

-26,136,504.44 -1,878,246.88

-1,149,606.89 -1,005,105.07

-136,001,295.68

-6,529,908.03

Including: Amount of change

arising from remeasurement

of the defined benefit plan

Other comprehensive income

not to be reclassified into

profit or loss by the equity

method

244,152.31

-1,710,994.31

-24,149,045.05

-1,710,994.31

-1,466,842.00

Changes in fair value of other

equity instrument investments

-104,728,642.41

-23,275,903.24

-873,141.81

-128,004,545.65

Notes to Financial Statement Page152

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Amount in the current year

Minus:

Amount

Less: Amount

included in

other

included in

other

comprehensive

Amount

incurred

before income

tax in the

comprehensive

income in the

previous year

and

transferred to

profit and loss

in the current

year

Amount

after tax

attributable

to minority

shareholders

Beginning

balance

Ending

balance

Amount after

Item

Less: Income

tax expenses

tax

income in the

previous year

and

attributable to

the company

current year

transferred

to retained

income in the

current year

II. Other comprehensive

incomes to be reclassified

into profit or loss in future

595,376,356.37

6,295,094.97

-19,905,462.28 26,200,557.25

575,470,894.09

577,014,783.03

Including: Other

comprehensive income that

can be converted to profit or

loss under the equity method

691,654,058.05 -109,254,471.49

-114,639,275.02

-16,787,082.22

5,384,803.53

Cash flow hedge reserve

57,056,675.51

-152,904,459.84

-429,917.35

-16,787,082.22

131,731,082.68

605,566.00

40,269,593.29

-41,749,657.69

-63,824.54

Translation differences in

foreign currency statements

111,154,802.15 20,576,280.53

Others

366,092.81

239,473.19

Total other comprehensive

incomes

485,511,565.13

-21,719,656.35

-46,041,966.72 24,322,310.37

439,469,598.41

Notes to Financial Statement Page153

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

(XLVII) Special reserve

Provision in the

current year

Decrease in the

current year

Item

Beginning balance

Ending balance

Work safety expenses

23,951,234.01

232,465,538.34

150,129,741.12

106,287,031.23

Total

23,951,234.01

232,465,538.34

106,287,031.23

The Work safety expenses are calculated according to the Administrative Measures

for Calculation and Use of Enterprise Safety Production Cost issued by the Ministry of

Finance and the Ministry of Emergency Management on November 21, 2022.

(XLVIII) Surplus reserves

Increase in this

year

Decrease in this

year

Item

Beginning balance

3,082,854,529.22

2,384,187.23

Ending balance

3,444,989,210.66

2,384,187.23

Statutory surplus reserve

362,134,681.44

Discretionary surplus

reserve

Total

3,085,238,716.45

362,134,681.44

3,447,373,397.89

(XLIX) Retained earnings

Item

Current year

Previous year

Retained earnings at the end of the previous year before

adjustment

26,818,018,726.07

24,423,000,533.23

Adjust the total amount of retained earnings at the beginning

of the year (increase +, decrease -)

-3,587,338.90

24,419,413,194.33

4,080,677,255.05

Adjusted retained earnings at the beginning of the year

26,818,018,726.07

6,704,936,953.85

Add: Net profit attributable to owners of the company

during the year

Minus: Withdrawal of statutory surplus reserve

Payable ordinary share dividend（Note 1）

Other(Note 2)

362,134,681.44

2,049,899,453.13

159,903,698.62

270,051,518.19

1,218,758,396.86

193,261,808.26

Ending balance of the current year

30,951,017,846.73

26,818,018,726.07

Notes to Financial Statement Page154

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Note 1: In accordance with the Proposal of SDIC Power Holding Co., Ltd. on 2022

Annual Profit Distribution Plan approved by the Group's General meeting of shareholders

on June 27, 2023, based on the total share capital of 7,454,179,797 shares at the end of

2022, cash dividends (including tax) of RMB0.275 per share will be paid. The actual cash

dividends paid in total were RMB 2,049,899,453.13.

Note 2: The Group made a total provision for interest on perpetual bonds of

179,813,698.62 during the year.

(L)

Operating incomes and Operating costs

Operating income and operating cost

Amount in current year

Amount in previous year

Item

Revenue

Costs

Revenue

Costs

Main business

Other business

Total

56,312,348,446.98

399,514,022.71

56,711,862,469.69

36,010,731,407.57

238,813,869.16

36,249,545,276.73

50,085,570,033.34

403,673,590.23

34,125,173,734.18

186,317,449.44

34,311,491,183.62

50,489,243,623.57

Notes to Financial Statement Page155

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Detailed information on operating income and operating cost

In this year, the revenue from customer contract is as follows:

Wind, Solar and Waste-to-energy Power

Generation

Thermal power

hydropower

Other

Total

Category

Operating income

Operating costs

Operating income

Operating costs

Operating income

Operating costs

Operating income

Operating costs

Operating income

Operating costs

Commodity

type:

Electricity

Other

22,873,539,976.59

1,670,943,768.86

24,544,483,745.45

20,426,824,564.55

1,738,627,447.22

22,165,452,011.77

25,574,515,045.32

10,410,111.72

10,193,415,566.68

2,838,520.77

4,666,241,719.57

76,793,369.13

2,059,030,708.51

26,469,177.68

149,015,327.85

1,690,403,150.65

1,839,418,478.50

66,715,403.74

1,735,623,887.58

1,802,339,291.32

53,263,312,069.33

3,448,550,400.36

56,711,862,469.69

32,745,986,243.48

3,503,559,033.25

36,249,545,276.73

Total

25,584,925,157.04

10,196,254,087.45

4,743,035,088.70

2,085,499,886.19

Classification by

region:

Northeast China

0.00

37,895,900.01

24,507,714.36

929,536,613.04

0.00

37,895,900.01

24,507,714.36

Northwest

China

831,552,187.46

393,299,462.05

2,083,952,377.59

109,237,045.30

135,776,853.30

3,024,741,610.35

1,458,612,928.39

Southwest

China

1,039,545,476.92

7,163,097,368.39

842,300,593.78

24,753,372,969.58

0.00

9,802,954,625.40

0.00

1,353,679,372.48

135,440,126.46

621,884,547.25

61,939,524.75

124,328,144.96

0.00

37,203,421.54

0.00

27,270,925,963.94

7,298,537,494.85

11,304,343,187.97

7,001,174,622.10

North China

6,939,235,097.35

Notes to Financial Statement Page156

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Wind, Solar and Waste-to-energy Power

Generation

Thermal power

hydropower

Other

Total

Category

Operating income

Operating costs

6,697,307,184.41

7,686,609,136.23

0.00

Operating income

Operating costs

Operating income

353,016,586.86

445,108,779.72

62,750,960.08

Operating costs

138,425,079.46

178,573,968.56

27,312,766.48

Operating income

Operating costs

37,942,860.46

39,062,834.92

0.00

Operating income

Operating costs

6,873,675,124.33

7,904,245,939.71

27,312,766.48

South China

East China

Central China

Overseas

7,960,506,820.24

8,381,334,079.90

0.00

5,420,005.96

22,635,132.81

0.00

8,318,943,413.06

8,849,077,992.43

62,750,960.08

0.00

271,190,985.50

4,743,035,088.70

103,319,672.29

2,085,499,886.19

1,577,798,149.47

1,839,418,478.50

1,552,353,321.10

1,802,339,291.32

1,848,989,134.97

56,711,862,469.69

1,655,672,993.39

36,249,545,276.73

Total

24,544,483,745.45

22,165,452,011.77

25,584,925,157.04

10,196,254,087.45

Market or

customer type:

State-owned

enterprise

23,991,285,734.07

553,132,965.78

21,305,545,408.11

859,906,603.66

25,584,925,157.04

10,196,254,087.45

4,471,414,249.30

429,853.90

1,982,180,213.90

246,869,120.61

10,889,490.07

231,803,235.17

7,610,787.03

54,294,494,261.02

564,452,309.75

33,715,782,944.63

867,517,390.69

Private

0.00

enterprise

Other

Total

65,045.60

0.00

271,190,985.50

103,319,672.29

1,581,659,867.82

1,839,418,478.50

1,562,925,269.12

1,802,339,291.32

1,852,915,898.92

56,711,862,469.69

1,666,244,941.41

36,249,545,276.73

24,544,483,745.45

22,165,452,011.77

25,584,925,157.04

10,196,254,087.45

4,743,035,088.70

2,085,499,886.19

Contract type:

Electric power

contract

22,873,539,905.60

20,426,824,564.55

25,574,515,045.32

10,193,415,566.68

4,666,241,719.57

2,059,030,708.51

149,015,327.85

66,715,403.74

53,263,311,998.34

32,745,986,243.48

Notes to Financial Statement Page157

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Wind, Solar and Waste-to-energy Power

Generation

Thermal power

hydropower

Other

Total

Category

Operating income

Operating costs

1,738,627,447.22

22,165,452,011.77

Operating income

Operating costs

2,838,520.77

Operating income

76,793,369.13

Operating costs

26,469,177.68

Operating income

Operating costs

1,735,623,887.58

1,802,339,291.32

Operating income

Operating costs

3,503,559,033.25

36,249,545,276.73

Other

Total

1,670,943,839.85

24,544,483,745.45

10,410,111.72

1,690,403,150.65

1,839,418,478.50

3,448,550,471.35

56,711,862,469.69

25,584,925,157.04

10,196,254,087.45

4,743,035,088.70

2,085,499,886.19

The time of

goods transfer:

A point in time

Period of time

Total

24,541,250,752.17

3,232,993.28

22,164,475,374.96

976,636.81

25,580,569,082.69

4,356,074.35

10,195,576,453.01

677,634.44

4,706,022,273.31

37,012,815.39

2,085,638,667.56

-138,781.37

218,676,594.39

1,620,741,884.11

1,839,418,478.50

169,594,647.22

1,632,744,644.10

1,802,339,291.32

55,046,518,702.56

1,665,343,767.13

56,711,862,469.69

34,615,285,142.75

1,634,260,133.98

36,249,545,276.73

24,544,483,745.45

22,165,452,011.77

25,584,925,157.04

10,196,254,087.45

4,743,035,088.70

2,085,499,886.19

Classification by

saleschannel

State grid

15,111,720,077.98

7,761,590,252.12

13,847,717,051.69

6,525,221,366.66

24,555,578,477.74

1,018,936,567.58

9,895,119,975.39

298,295,591.29

3,426,265,112.00

1,033,443,645.99

1,566,850,956.87

442,791,907.66

138,584,644.54

134,638.94

76,162,330.90

608,038.52

43,232,148,312.26

9,814,105,104.63

25,385,850,314.85

7,266,916,904.13

China Southern

Power Grid

Others

Total

1,671,173,415.35

1,792,513,593.42

10,410,111.72

2,838,520.77

283,326,330.71

75,857,021.66

1,700,699,195.02

1,725,568,921.90

3,665,609,052.80

3,596,778,057.75

24,544,483,745.45

22,165,452,011.77

25,584,925,157.04

10,196,254,087.45

4,743,035,088.70

2,085,499,886.19

1,839,418,478.50

1,802,339,291.32

56,711,862,469.69

36,249,545,276.73

Notes to Financial Statement Page158

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

(LI)

Taxes and surcharges

Item

Water resource tax

Urban maintenance and construction tax

Education surcharge

Real estate tax

Amount in current year

Amount in previous year

444,710,812.98

194,577,160.95

143,789,388.08

78,414,995.64

46,056,709.60

15,716,865.99

31,224,863.72

758,993.29

423,278,576.33

190,458,299.51

142,244,341.69

93,784,835.72

47,165,670.84

12,886,673.04

28,151,633.66

800,273.01

Land use tax

Environmental protection tax

Stamp tax

Vehicle and vessel use tax

Others

402,555.85

15,705,677.97

970,955,468.22

Total

939,172,859.65

(LII) Selling expense

Item

Amount in current year

Amount in previous year

1,947,015.07

Sales service fee

377,337.97

38,578,274.18

496,511.60

Employee Benefits payable

Business expense

Travel expense

Consultancy cost

Others

30,693,294.99

362,151.39

853,635.27

500,786.88

1,144,418.14

4,600,205.84

46,050,383.00

1,718,026.78

2,129,302.58

Total

37,350,577.69

Notes to Financial Statement Page159

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

(LIII) Administration expense

Item

Employee benefits payable

Insurance premium

Amount in current year

1,185,723,280.71

14,483,673.46

98,028,134.91

8,559,826.15

Amount in previous year

976,043,383.50

2,129,090.82

Depreciation expenses

Repair expense

85,792,323.40

6,455,854.58

Amortization of intangible assets

Business entertainment expense

Travel expense

70,931,059.43

5,732,919.62

55,223,634.67

8,526,411.87

38,220,429.45

13,632,342.98

2,541,106.44

19,376,732.24

12,798,981.37

1,503,904.98

Office expense

Conference expense

Expenses on employment of intermediary

organizations

24,637,700.65

30,352,519.13

Consultancy cost

50,108,345.65

1,265,336.70

35,348,193.93

521,590.83

Expense of board of directors

Property management fee

Rental fee

35,611,941.19

11,502,872.01

10,884,076.73

7,652,782.46

43,039,995.38

12,578,502.23

8,780,638.15

7,974,151.35

5,222,984.23

3,687,008.05

164,497,116.24

1,479,853,016.95

Water and electricity charges

Traveling expenses

Amortization of long-term prepaid expenses

Labourfee

1,484,256.35

6,440,175.40

Others

181,833,314.60

1,769,273,574.89

Total

Notes to Financial Statement Page160

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

(LIV) R&D Expense

Item

Amount in current year

Amount in previous year

33,659,339.99

Independent R&D

Entrusted R&D

83,157,989.50

17,447,491.73

6,210,944.22

Total

100,605,481.23

39,870,284.21

(LV) Financial expense

Item

Amount in current year

Amount in previous year

5,086,740,741.96

5,181,857.36

Interest expense

4,612,319,271.08

9,575,198.27

Including: Interest expense of lease liability

Less: interest income

Add: net exchange (gain)/loss

Others

661,326,040.50

-9,867,803.03

456,876,875.91

4,163,657.51

34,163,174.11

3,975,288,601.66

20,486,243.61

Total

4,654,513,767.17

(LVI) Other income

Item

Amount in current year

Amount in previous year

Government Subsidies

106,937,429.27

3,365,131.74

157,590,601.30

Refund of handling charges for

withholding individual income tax

2,980,747.82

Others

3,990,457.17

4,240,529.94

Total

114,293,018.18

164,811,879.06

Notes to Financial Statement Page161

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Details of government subsidies:

Item

Current amount

70,770,883.31

10,481,029.76

9,174,516.42

6,393,960.46

4,642,269.32

2,045,354.00

891,450.00

Asset-related/ Income-related

Income-related

Asset-related

VAT is collected and refunded

Deferred income transfer

Incentive payment

Income-related

Generation rights trade

Job stabilization subsidy

Industry Doubling incentive Bonus 2022

Tax incentives for resettlement of key groups

Xiamen Social Insurance Center one-time training subsidy

Nanxun key backbone enterprise development award

Others

258,500.00

200,000.00

2,079,466.00

106,937,429.27

Total

(LVII) Income from investment

Amount in current

year

Amount in previous

year

Item

Income from long-term equity investment calculated by equity

method

699,693,753.70

-4,775,877.44

2,182,320.40

239,468,046.66

32,565,138.59

Investment income from disposal of long-term equity investments

Investment income received during the period of holding financial

assets held for trading

Investment income from disposal of financial assets held for trading

230,939.17

1,071,983.41

Total

697,331,135.83

273,105,168.66

(LVIII) Profit arising from changes in fair value

Gain or loss from changes in fair values

Amount in current year

Amount in previous year

Notes to Financial Statement Page162

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Gain or loss from changes in fair values

Financial assets held for trading

Total

Amount in current year

-1,467,144.90

Amount in previous year

21,746,895.60

-1,467,144.90

21,746,895.60

(LIX) Credit impairment loss

Item

Amount in current year

-1,462.50

Amount in previous year

527,251.35

Loss on bad debts of notes receivable

Loss on bad debts of accounts receivable

Loss on bad debts of other receivables

Bad debt loss of long-term receivables

Total

-146,550,638.39

1,972,425.12

112,406,149.35

8,570,553.86

-2,970,403.58

-153,738.42

-147,550,079.35

121,350,216.14

(LX) Asset impairment loss

Item

Inventory impairment loss

Contractual assets impairment loss

Long-term equity investment impairment loss

Loss from fixed assets impairment

Loss from impairment of intangible assets

Others

Amount in current year

Amount in previous year

-164,255,699.12

1,198.68

-23,153,624.13

-200,212,806.08

-24,201,549.13

-1,184,893.47

-1,199,204.52

-249,952,077.33

-18,336,736.70

-475,668.86

-1,104,267.30

-184,171,173.30

Total

(LXI) Income of assets disposal

Amount included in non-recurring

profits and losses in the current

years

Amount in current

year

Amount in previous

year

Item

3,712,474.25

19,217,207.83

3,712,474.25

Incomes from disposal of

Notes to Financial Statement Page163

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Amount included in non-recurring

profits and losses in the current

years

Amount in current

year

Amount in previous

year

Item

non-current assets

Income from disposal of

right-of-use asset

-5,181.20

317,927.30

-5,181.20

Total

3,707,293.05

19,535,135.13

3,707,293.05

(LXII) Non-operating income

Amount included in

Amount in the current

year

Amount in the previous

year

non-recurring profits

and losses in the

current year

Item

Gain from scrapping of non-current

assets

801,489.28

4,908,990.90

801,489.28

9,839,576.10

Government subsidies not Related to

ordinary activities of the enterprise

9,839,576.10

2,075,428.52

22,936.98

Transaction payment for carbon

emission rights

142,065,783.64

Litigation compensation

Revenue from breach indemnity

Insurance claim

Unpayable dues

Others

19,837,814.75

16,119,311.37

7,746,530.60

5,505,444.80

7,560,521.97

209,476,472.51

19,837,814.75

16,119,311.37

7,746,530.60

5,505,444.80

7,560,521.97

209,476,472.51

26,161,059.47

41,762,602.67

5,394,170.79

80,325,189.33

Total

Government subsidies included in the current profits and losses

Amount incurred

in the current year

Amount Incurred in the

previous year

Asset-related

Subsidy item

/income-related

Special funds for Yalong River(Transfer of deferred

income)

9,544,437.38

276,000.00

1,132,544.28

Income-related

Incentive from Guazhou Bureau of Industry and

Information Technology

Notes to Financial Statement Page164

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Amount incurred

in the current year

Amount Incurred in the

previous year

Asset-related

Subsidy item

/income-related

Award and subsidy for research and development

investment of Agriculture, Rural, and Science and

Technology Bureau of Jianshui County

400,000.00

300,000.00

Income-related

2020 Awards and subsidies for material financial

investment promotion projects of Dechang County

Bureau of Commerce, Economic Cooperation and

Foreign Affairs

Income-related

Yalong River vocational training subsidy

117,800.00

125,084.24

Income-related

Others

19,138.72

Total

9,839,576.10

2,075,428.52

(LXIII) Non-operating expenses

Amount included in

non-recurring profits

and losses in the

current year

Amount in current

year

Amount in previous

year

Item

Losses of retirement of non-current

assets

6,135,905.55

31,751,864.58

3,235,163.53

6,135,905.55

31,751,864.58

Donations

32,811,053.53

19,910,000.00

2,986,460.19

58,942,677.25

Transaction of carbon emission rights

Others

4,416,774.88

3,819,760.04

Total

42,304,545.01

41,707,530.17

(LXIV) Income tax expenses

Table for income tax expense

Item

Amount in current year

Amount in previous year

1,781,745,396.27

-29,143,171.28

Income tax expense in the current year

Deferred income tax expenses

Total

1,912,902,433.58

142,298,831.22

2,055,201,264.80

1,752,602,224.99

Notes to Financial Statement Page165

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Accounting profit and income tax expense adjustment process

Item

Amount in current year

14,215,460,365.51

3,553,865,091.38

-1,583,426,812.40

-49,291,115.37

Consolidated total profit

Income tax expense calculated in accordance with legal/applicable tax rate

Effect of different tax rates applicable to subsidiaries

Effect of income tax during the year before adjustment

Effect of non-taxable income

-169,832,783.96

16,959,896.43

Effect of nondeductible cost, expense and loss

Effect from using the deductible losses of unrecognized deferred income tax assets

-95,503,806.82

Impact of deductible temporary difference or deductible losses on unrecognized

deferred income tax assets in the current year

387,506,962.95

Others

-5,076,167.41

Income tax expense

2,055,201,264.80

(LXV) Earnings per share

1. Basic EPS

The basic EPS (earnings per share) is calculated by dividing the consolidated

net profit attributable to the common shareholders of the company by the weighted

mean of the outstanding common stock of the Company:

Item

Amount in current year

Amount in previous year

Consolidated net profit attributable to the common

shareholders of the company

6,525,123,255.23

3,887,415,446.79

Weighted mean of the outstanding common stock of the

Company

7,454,179,797.00

Basic EPS

0.8754

0.5215

Including: basic EPS of going concern

Notes to Financial Statement Page166

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Diluted EPS

The diluted EPS is calculated by dividing the consolidated net profit (dilution)

attributable to the common shareholders of the company by the weighted mean

(dilution) of the outstanding common stock of the Company:

Item

Amount in current year

Amount in previous year

Consolidated net profit (dilution) attributable to the common

shareholders of the company

6,525,123,255.23

3,887,415,446.79

Weighted mean (dilution) of the outstanding common stock

of the Company

7,454,179,797.00

Diluted EPS

0.8754

0.5215

Including: diluted EPS of going concern

(LXVI) Items of cash flow statement

Cash relating to operating activities

(1) Other cash receipts relating to operating activities

Item

Amount in current year

Amount in previous year

327,659,459.16

120,930,546.72

97,512,830.34

65,510,220.47

1,440,000.00

Security deposit

Current accounts

Interest income

438,859,833.15

103,234,315.77

193,229,382.68

49,503,997.62

200,000.00

Government subsidies

Compensation for loss of electricity

Transaction payment for carbon emission rights

Insurance compensation

Rental income

151,294,706.66

17,716,385.90

26,065,707.77

40,384,580.72

4,291,911.27

24,313.19

13,312,872.52

25,294,902.94

23,907,172.78

2,280,905.62

Receipts received on behalf of others

Reserve fund

Others

74,978,563.89

1,099,759,385.43

35,170,338.04

713,043,561.78

Total

Notes to Financial Statement Page167

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

(2) Other cash payments related to operating activities

Item

Amount in current year

463,125,925.63

241,832,027.90

249,667,577.36

6,085,436.43

Amount in previous year

261,013,155.89

251,616,083.96

174,691,421.16

1,596,474.50

Security deposit

Period expenses

Current accounts

Project upfront fee

Reserve fund

4,396,115.63

2,022,102.33

Sewerage, water treatment expenses

2,665,190.86

1,842,602.57

Restricted Monetary Funds

29,283,424.75

92,312,323.61

1,089,368,022.17

41,788,646.51

51,610,137.94

786,180,624.86

Others

Total

Cash relating to investment activities

(1)Other cash received related to investment activities

Item

Amount in current year

Amount in previous year

132,475,288.57

Bid security

366,800.20

Restricted Monetary Funds

Others

16,000,000.00

674,815.61

Total

1,041,615.81

148,475,288.57

(2) Other cash payments related to investing activities

Item

Amount in current year

Amount in previous year

Shareholder loans

Bid security

448,980,234.46

2,650,000.00

170,500,000.00

Performance bond

304,319,022.61

Notes to Financial Statement Page168

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Item

Amount in current year

2,407,500.00

Amount in previous year

170,500,000.00

Others

Total

758,356,757.07

Cash relating to financing activities

(1) Other cash receipts related to financing activities

Item

Amount in current year

Amount in previous year

Interest income

22,104,430.89

Income from escrow fees

3,443,495.83

Total

3,443,495.83

22,104,430.89

(2) Other cash payments related to financing activities

Item

Commission charge for financing

Operating lease fee

Amount in current year

Amount in previous year

28,207,499.60

88,540,269.57

127,654,875.28

9,120,200.00

139,050,085.04

Reduction of contribution

Guarantee fee

Fixed assets purchased on installments

Repayment of perpetual bond

Others

51,391.54

500,000,000.00

5,732,417.18

Total

731,047,762.03

167,308,976.18

Notes to Financial Statement Page169

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

(3) Changes in liabilities arising from financing activities

Increase in current year

Decrease in current year

Item

Beginning balance

Ending balance

Changes

non-cash

Changes in

non-cash

Changes in cash

Bonds

payable

14,038,500,987.06

11,298,824,403.10

113,435,216,884.23

3,998,500,000.00

18,348,121,661.73

20,354,525,849.88

427,166,881.33

275,112,269.45

4,284,878,627.12

3,438,058,904.11

20,509,930,610.51

15,147,787,112.28

15,026,108,964.28

9,412,127,723.77

122,926,834,248.95

Short-term

borrowings

Long-term

borrowings

(LXVII) Supplementary information of consolidated cash flow statement

1. Supplementary information for cash flow statement

Item

Amount in current year

Amount in previous year

1. Reconciliation of net profits into cash flow from operating

activities:

Net profit

12,160,259,100.71

147,550,079.35

249,952,077.33

9,449,536,291.14

61,888,982.14

7,680,367,734.09

-121,350,216.14

184,171,173.30

9,234,447,033.47

47,343,699.79

Add: Credit impairment losses

Asset impairment provision

Depreciation of fixed assets

Depreciation of right-of-use assets

Amortization of intangible assets

Amortization of long-term prepaid expenses

375,107,685.22

35,506,304.77

346,727,498.71

40,776,911.15

Losses from disposal of fixed assets, intangible assets and

other long-term assets (gains to be listed with “-”)

-3,707,293.05

5,334,416.27

1,467,144.90

-19,535,135.13

-1,673,827.37

-21,746,895.60

Losses from retirement of fixed assets (gains to be listed

with “-”)

Losses from changes in fair value (gains to be listed with

“-”)

Financial expenses (gains to be listed with “-”)

Investment losses (gains to be listed with “-”)

4,602,726,591.64

-697,331,135.83

4,736,355,468.38

-273,105,168.66

Notes to Financial Statement Page170

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Item

Amount in current year

Amount in previous year

Decrease of deferred income tax assets (increase to be

listed with “-”)

-49,888,910.59

-87,820,387.82

Increase of deferred income tax liabilities (decrease to be

listed with “-”)

122,355,686.05

60,667,311.24

58,677,216.54

34,382,817.36

-363,430,645.25

Decrease of inventory (increase to be listed with “-”)

Decrease of operating receivables (increase to be listed

with “-”)

-7,683,364,483.00

Increase in operating items payable (decrease to be listed

with “-”)

2,430,062,741.79

21,268,122,590.08

488,914,374.00

Others

Net cash flows from operating activities

21,963,501,650.82

2. Significant investment or finance activities not involving

cash

Transfer of debt into capital

Current portion of convertible corporate bonds

Fixed assets acquired under financial leases

3. Net changes in cash and cash equivalents:

Ending balance of cash

11,096,479,048.67

11,386,037,121.72

8,659,597,034.62

Less: beginning balance of cash

Add: Ending balance of cash equivalents

Less: beginning balance of cash equivalents

Net increase in cash and cash equivalents

-289,558,073.05

2,726,440,087.10

Net cash paid for acquisition of subsidiaries in the current year

Item

Amount in current year

Cash and cash equivalents paid in the current year for business combinations

occurred in the current year

160,176,000.00

Among them:Ningxiang Gushanfeng New Energy Development Co., Ltd.

Less: cash and cash equivalents held by subsidiaries on acquisition date

160,176,000.00

24,423,712.29

Notes to Financial Statement Page171

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Item

Amount in current year

Among them: Ningxiang Gushanfeng New Energy Development Co., Ltd.

Net cash paid for acquisition of subsidiaries

24,423,712.29

135,752,287.71

Composition of cash and cash equivalent

Item

Ending balance

Beginning balance

11,386,037,121.72

44,049.90

I. Cash

11,096,479,048.67

Including: Cash on hand

Cash in bank available for payments at any

11,041,340,970.66

11,382,162,871.65

time

Other monetary funds for payment at any time

55,138,078.01

3,830,200.17

II. Ending balance of cash and cash equivalent

11,096,479,048.67

11,386,037,121.72

Including:cash and cash equivalents with limited use of the

company or subsidiaries of the Group

(LXVIII)Foreign currency monetary item

Foreign currency monetary item

Ending balance of foreign

currency

Ending balance in RMB

(equivalent)

Item

Exchange rate

Monetary fund

Including: USD

GBP

677,275,999.11

184,704,285.50

175,111,326.61

308,517,503.18

8,784,974.49

26,078,230.83

7.0827

9.0411

0.2074

0.0005

5.3772

19,368,365.20

1,487,548,231.33

17,569,948,980.00

29,366.46

THB

IDR

SGD

157,909.33

Accounts receivable

Including: GBP

THB

62,773,407.94

48,761,048.91

14,012,359.03

5,393,265.08

67,562,001.12

9.0411

0.2074

Notes to Financial Statement Page172

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Ending balance of foreign

Ending balance in RMB

(equivalent)

Item

Exchange rate

currency

Other receivables

Including: USD

GBP

64,270,888.81

56,764,772.27

6,313,093.18

8,014,566.80

698,266.05

7.0827

9.0411

0.2074

THB

5,752,282.35

1,193,023.36

Long-term receivables

Including: USD

GBP

7,155,172,479.30

5,867,718,122.67

1,287,454,356.63

335,296,720.55

301,952,139.89

11,610,761.80

21,733,818.86

112,099,388.50

35,742,688.86

66,425,598.19

9,931,101.45

828,457,808.84

142,400,189.87

7.0827

9.0411

Accounts payable

Including: USD

GBP

42,632,349.23

1,284,220.04

7.0827

9.0411

0.2074

THB

104,791,797.78

Other payables

Including: USD

GBP

5,046,477.88

7,347,070.40

47,883,806.41

7.0827

9.0411

0.2074

THB

Short-term borrowing

Including: THB

Long-term borrowing

Including: USD

GBP

188,152,645.59

9,224,665,879.49

6,936,522,433.09

2,288,143,446.40

907,196,941.13

0.2074

979,361,322.25

253,082,417.67

7.0827

9.0411

Non-current liabilities due

within one year

37,042,303.67

Including: GBP

THB

4,030,706.62

2,894,320.40

9.0411

0.2074

36,442,021.62

600,282.05

Notes to Financial Statement Page173

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Description of overseas business entity

1)The Company agreed to acquire 100% equity interest of Red Rock Power Limited, a

wholly-owned subsidiary of Repsol Nuevas Energias S.A, for £185.4 million (subject to the

availability of a contract of price difference or such preferential support for the acquisition of the

subject-owned Inch Cape Offshore Wind Power Project to determine whether to pay an additional

£16.6 million) after deliberation and approval at the 29th Meeting of the Company's 9th Board of

Directors on February 24, 2016. The acquired company, which is based in Scotland, UK, and has a

bookkeeping currency of GBP, is mainly engaged in offshore wind power development and is

currently operating a Beatrice project and a pre-infrastructure Inch Cape project.

2)The Company agreed with Red Rock Power Limited to acquire 100% equity interest of

Afton Wind Farm (Holdings) Limited, a wholly-owned subsidiary of InfraRed Capital Partners for

£121 million after deliberation and approval at the 20th Meeting of the Company's 10th Board of

Directors on December 15, 2017. The acquired company, which is based in Scotland, UK, and has

a bookkeeping currency of GBP, is mainly engaged in onshore wind power development and is

currently operating a Wind Farm Limited project and an Asset Management Company of Afton

Wind Farm (BMO) Limited.

3)The subsidiary of the Company, SDIC Huanneng Electric Power Co., Ltd., increased the

capital to Newsky (China) Environment & Technology Co., Ltd. by USD 43 million through the

resolution of the 51st Meeting of the 10th Board of Directors of the Company on May 28, 2019,

and held 60% of the equity interest of the Company after the increase of capital. The main

business places of Newsky China are Guizhou Newsky Environment & Tech. Co., Ltd. located in

Guizhou Province, China, and C&G Environment Protection (Thailand) CO. located in Thailand,

both of which are mainly engaged in waste-to-energy power generation. The bookkeeping

currency of Guizhou Newsky is RMB; the bookkeeping base currency of C&G Environment

Protection (Thailand) CO is THB.

4)The Company agreed with Red Rock Power Limited to acquire 100% equity interest of

Benbrack Wind Farm Limited, a wholly-owned subsidiary of RWE Renewables UK Limited after

deliberation and approval at the 15th meeting of the Office of General Manager on January 22,

2021. The acquired company, which is based in Scotland, UK, and has a bookkeeping currency of

GBP, is mainly engaged in onshore wind power development.

5)The Company agreed with Jaderock Investment Singapore Pte Ltd to acquire 93.33%

equity interest of Fareast Green Energy Pte Ltd., a wholly-owned subsidiary of HYDRO

SUMATRA PTE LTD after deliberation and approval at the 28th Meeting of the 11th Board of

Directors of the Company on June 11, 2021. The acquired company, which is based in Singapore,

and has a bookkeeping currency of USD, is mainly engaged in hydropower development.

Notes to Financial Statement Page174

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

(LXIX) Lease

As lessee

Item

Amount in current year

Amount in previous year

Interest cost of lease liability

164,600,702.46

38,230,969.85

Simplified short-term lease expense charged to relevant

asset cost or current profit and loss

20,459,150.88

13,101,341.05

827,194.65

Simplified low-value asset lease expense charged to

relevant asset cost or current profit and loss (except for

short-term lease expense of low-value asset)

181,020.05

Total cash outflows in relation to lease

Relevant profit and loss from sale-leaseback

Cash inflow of sale-leaseback

Cash outflow of sale-leaseback

Other

241,350,432.50

425,576,379.44

7,941,993.66

285,253,555.56

89,146,229.22

37,392,422.39

As lessor

(1) Operating lease

Item

Amount in current year

Amount in previous year

Income from operating lease

26,015,017.38

15,786,567.11

Including: income in relation to the variable lease payment

not included in lease receivables

1,689,660.87

1,528,265.78

Undiscounted lease receivables to be received after the balance sheet date are as

follows:

Remaining lease term

Amount in current year

1,198,266.24

Amount in previous year

1,173,097.24

Within 1 year

1~2 years

344,000.00

278,000.00

2~3 years

69,497.00

278,000.00

Notes to Financial Statement Page175

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Remaining lease term

Amount in current year

1,611,763.24

Amount in previous year

69,497.00

3~4 years

Total

1,798,594.24

VI.

(I)

Research and development expenditure

Item

Employee benefits payable

Materials consumed

Amount in current year

Amount in previous year

17,413,962.04

35,517.76

37,206,998.41

802,626.22

Depreciation and amortization

Consigned Research and development expense

National basic research

Technical service expense

Other

325,226.47

155,894.61

15,477,197.86

30,000,000.00

375,471.70

6,932,726.99

6,642,993.55

90,830,514.21

13,119,458.43

Total

37,657,559.83

Including: expensed Research and development

expenditure

90,830,514.21

37,657,559.83

(II)

Development expenditure

Increase in this year

Decrease in this year

Beginning

balance

Ending

balance

Item

Internal

development

expenditure

Recognized as

intangible asset

Other

Independent

research and

development

12,662,022.14

9,774,967.02

2,723,140.03

163,915.09

Total

12,662,022.14

9,774,967.02

2,723,140.03

163,915.09

Notes to Financial Statement Page176

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Combination cost and goodwill

Ningxiang Gushanfeng New Energy

Development Co., Ltd.

Combination cost

179,700,000.00

-- Cash

179,700,000.00

-- Fair value of non-cash asset

-- Fair value of debt issued or undertaken

-- Fair value of equity security issued

-- Fair value of contingent consideration

-- Fair value of equity held before the acquisition date on the acquisition

date

-- Other

Total combination cost

Minus: fair value of net identifiable asset

Goodwill

179,700,000.00

141,661,513.46

38,038,486.54

Note: recognition the fair value of combination cost: asset-based approach.

Identifiable asset and liability of acquiree on the acquisition date

Unit:10,000.00 RMB

Ningxiang Gushanfeng New Energy Development Co., Ltd.

Item

Fair value on the acquisition date

Book value on the acquisition date

Asset:

42,066.91

7,423.98

25,436.62

7,408.00

866.14

44,853.07

7,423.98

36,195.22

364.28

Current asset

Fixed asset

Intangible asset

Right-of-use asset

Deferred tax asset

866.14

932.17

3.45

Notes to Financial Statement Page178

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Ningxiang Gushanfeng New Energy Development Co., Ltd.

Item

Fair value on the acquisition date

Book value on the acquisition date

Liability:

Net assets

27,900.76

14,166.15

27,900.76

16,952.31

Minus: Minority stockholder's equity

Net assets obtained

14,166.15

16,952.31

Recognition of the fair value of identifiable asset and liability: Asset-based approach

(II)

Change of consolidated scope due to other reasons

Entity newly included in consolidated scope in this year:

No.

Name

Formation of control right

Newly established

Yalong River (Xichang) New Energy Co., Ltd.

Yalong River (Litang) New Energy Co., Ltd.

Guangxi Guokai Energy Sales Co., Ltd.

Yudu Guoli New Energy Co., Ltd.

Guangxi Qinqin Power Sales Co., Ltd.

SDIC (Huilai) Kuiyang New Energy Co., Ltd.

Mizhi Guoyuan New Energy Co., Ltd.

Yunnan Kunming Wuhua Ganrun New Energy Co.,

Ltd.

Newly established

Yangquan Guoli New Energy Co., Ltd.

SDIC Zhejiang New Energy Co., Ltd.

Pubei Yuanli New Energy Co., Ltd.

Newly established

SDIC (Qionghai) New Energy Co., Ltd.

SDIC Tibet Renbu New Energy Co., Ltd.

SDIC Tibet Seni New Energy Co., Ltd.

SDIC Tibet Nyima New Energy Co., Ltd.

Notes to Financial Statement Page179

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

SDIC Tibet Nyainrong New Energy Co., Ltd.

Zhangjiakou Fufeng New Energy Co., Ltd.

Shilin Ganrun New Energy Co., Ltd.

Newly established

SDIC Qinghai New Energy Co., Ltd.

SDIC (Shandong) New Energy Co., Ltd.

SDIC (Fujian) New Energy Co., Ltd.

Xingtai Guoli New Energy Co., Ltd.

SDIC Meizhouwan (Putian) Electric Power Co., Ltd.

Xundian Ganrun New Energy Co., Ltd.

Zhangjiakou Yuanli New Energy Co., Ltd.

Zhangzhou Gulei Guozhang New Energy Co., Ltd.

Tongcheng Jinjia New Energy Co., Ltd.

Entity not included in consolidated scope in this year:

Voting

power

proportion

(%)

Reason why it

Shareholding

proportion

(%)

Place of

registration

is not

subsidiary in

this year

No.

Enterprise name

Business nature

Dongfang

Zhengwei Electric

Power

Engineering Co.,

Ltd.

Production and

supply industry

of electric power

and heat

Dongfang

City, Hainan

Province

100.00

Logout

Dalian City,

Liaoning

Province,

China

Production and

supply industry

of electric power

and heat

Liaoning Kaitai

New Energy Co.,

Ltd.

80.00

Logout

Yan'an City,

Shaanxi

Province,

China

New energy

power

generation

SDIC Yan'an New

Energy Co., Ltd.

100.00

Notes to Financial Statement Page180

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

VIII. Equity in other entity

(I)

Equity in subsidiary company

Composition of enterprise group

Unit: 10,000.00 RMB

Shareholding proportion

(%)

Place of main

business

Name of subsidiary company

Place of registration

Business nature

Acquirement method

Direct

Indirect

1 Yalong River Hydropower Development Co., Ltd.

1-1 Sichuan Ertan Construction Consultancy Co., Ltd.

Chengdu, Sichuan

Hydraulic power

52.00

Establishment by investment

Construction

consultancy

66.67

1-2 Sichuan Ertan Industrial Development Co., Ltd

1-3 Yalong River Hydropower Liangshan Co., Ltd.

Chengdu, Sichuan

Liangshan, Sichuan

Chengdu, Sichuan

Liangshan, Sichuan

Property service

Hydraulic power

100.00

Establishment by investment

1-4 Yalong River Hydropower Panzhihua Tongzilin

Co., Ltd.

Panzhihua City,

Sichuan

Panzhihua City,

Sichuan

Hydraulic power

100.00

51.00

Establishment by investment

Purchase and sale of

electric power

1-5 Yalong River Sichuan Energy Co., Ltd.

1-6 Yalong River Huili New Energy Co., Ltd.

1-7 Yalong River Mianning New Energy Co., Ltd.

Chengdu, Sichuan

Liangshan, Sichuan

Chengdu, Sichuan

Liangshan, Sichuan

Business combination under different

control

Photovoltaic power

Business combination under different

control

60.00

Notes to Financial Statement Page181

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Shareholding proportion

(%)

Place of main

business

Name of subsidiary company

Place of registration

Business nature

Acquirement method

Direct

Indirect

1-8 Yalong River Hydropower Garze Co., Ltd.

1-9 Dechang Wind Power Development Co., Ltd.

Garze, Sichuan

Hydraulic power

Wind power

100.00

Establishment by investment

Business combination under different

control

Liangshan, Sichuan

100.00

1-10 Yalong River (Muli) New Energy Co., Ltd.

1-11 Yalong River (Panzhihua) Energy Co., Ltd.

1-12 Yalong River (Yajiang) New Energy Co., Ltd.

1-13 Yalong River (Yanyuan) New Energy Co., Ltd.

Liangshan, Sichuan

Panzhihua, Sichuan

Yajiang, Sichuan

Yanyuan, Sichuan

Liangshan, Sichuan

Panzhihua, Sichuan

Yajiang, Sichuan

Yanyuan, Sichuan

New energy

100.00

66.00

Establishment by investment

100.00

Xichang City,

Sichuan

Xichang City,

Sichuan

1-14 Yalong River (Xichang) New Energy Co., Ltd.

1-15 Yalong River (Litang) New Energy Co., Ltd.

New energy

100.00

Establishment by investment

Garze Tibetan

Autonomous

Prefecture, Sichuan

Garze Tibetan

Autonomous

Prefecture, Sichuan

Establishment by investment

2 SDIC Yunnan Dachaoshan Hydropower Co., Ltd.

2-1 Yunnan Dachao Industry Co., Ltd

Kunming, Yunnan

Lanzhou, Gansu

Kunming, Yunnan

Lanzhou, Gansu

Hydraulic power

Property service

Hydraulic power

50.00

60.45

Business combination under different

control

100.00

3 SDIC Gansu Xiaosanxia Power Co., Ltd.

Establishment by investment

Notes to Financial Statement Page182

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Shareholding proportion

(%)

Place of main

business

Name of subsidiary company

Place of registration

Business nature

Acquirement method

Direct

Indirect

4 Tianjin SDIC Jinneng Electric Power Co., Ltd.

Tianjin

Thermal power

64.00

Establishment by investment

4-1 Tianjin Beijiang Environmental Protection

Technology Co., Ltd.

Production of

building material

Tianjin

100.00

5 SDIC Genting Meizhouwan Electric Power

Company Limited

Putian, Fujian

Qinzhou, Guangxi

Putian, Fujian

Thermal power

51.00

61.00

Establishment by investment

Purchase and sale of

electric power

5-1 SDIC Meizhouwan Power Sales Co., Ltd.

6 SDIC Qinzhou Electric Power Co., Ltd.

6-1 Guangxi Guoqin Energy Co., Ltd.

Putian, Fujian

100.00

Business combination under common

control

Qinzhou, Guangxi

Thermal power

Purchase and sale of

electric power

51.00

Establishment by investment

Nanning City,

Guangxi Province

Nanning City,

Guangxi Province

6-2 Guangxi Guokai Energy Sales Co., Ltd.

7 SDIC Panjiang Electric Power Co., Ltd.

7-1 SDIC Guizhou Power Sales Co., Ltd.

Electric power

Thermal power

100.00

Establishment by investment

Liupanshui, Guizhou

55.00

56.00

Purchase and sale of

electric power

100.00

8 Xiamen Huaxia International Power Development

Co., Ltd.

Business combination under common

control

Xiamen, Fujian

Thermal power

Notes to Financial Statement Page183

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Shareholding proportion

(%)

Place of main

business

Name of subsidiary company

Place of registration

Business nature

Acquirement method

Direct

Indirect

Purchase and sale of

electric power

8-1 Xiamen Huaxia Electric Energy Sales Co., Ltd.

9 SDIC Qinzhou Second Electric Power Co., Ltd.

9-1 Guangxi Qinqin Power Sales Co., Ltd.

Xiamen, Fujian

100.00

Establishment by investment

Qinzhou, Guangxi

Thermal power

Electric power

90.00

Qinzhou City,

Guangxi Province

Qinzhou City,

Guangxi Province

100.00

10 SDIC Jineng (Zhoushan) Gas Power Generation

Co., Ltd.

Zhoushan, Zhejiang

Singapore

Zhoushan, Zhejiang

Singapore

Gas power generation

Power investment

51.00

Establishment by investment

11 Jaderock Investment Singapore Pte.Ltd.

11-1 Fareast Green Energy Pte.Ltd.

100.00

Investment and asset

management

Business combination under different

control

Singapore

93.33

100.00

Investment and asset

management

Business combination under different

control

11-1-1 Asia Ecoenergy Development A Pte.Ltd.

11-1-2 Asia Ecoenergy Development B Pte.Ltd.

Singapore

Investment and asset

management

Business combination under different

control

Investment and asset

management

Business combination under different

control

11-1-2-1 PT Dharma Hydro Nusantara

Indonesia

100.00

75.00

Business combination under different

control

11-1-2-1-1 PT North Sumatera Hydro Energy

Hydraulic power

Notes to Financial Statement Page184

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Shareholding proportion

(%)

Place of main

business

Name of subsidiary company

Place of registration

Business nature

Acquirement method

Direct

Indirect

12RedRock Investment Limited

London, UK

Scotland, UK

Power investment

100.00

Establishment by investment

Business combination under different

control

12-1Red Rock Power Limited

Scotland, UK

100.00

Business combination under different

control

12-1-1 Beatrice Wind Limited

Scotland, UK

Power investment

Asset management

Wind power

Business combination under different

control

12-1-2 Afton Wind Farm (Holdings) Limited

12-1-2-1Afton Wind Farm Limited

12-1-2-2Afton Wind Farm (BMO) Limited

Business combination under different

control

Business combination under different

control

Asset management

Business combination under different

control

12-1-3Benbrack Wind Farm Limited

12-1-4Aska Windfarm Holdings Limited

13 SDIC Gansu Power Sales Co., Ltd.

Scotland, UK

Lanzhou, Gansu

Scotland, UK

Lanzhou, Gansu

Wind power

100.00

51.00

Asset management

Establishment by investment

Purchase and sale of

electric power

65.00

14 SDIC Kingrock Overseas Investment Management

Co., Ltd.

Investment

management

Xiamen, Fujian

100.00

Establishment by investment

Notes to Financial Statement Page185

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Shareholding proportion

(%)

Place of main

business

Name of subsidiary company

Place of registration

Business nature

Acquirement method

Direct

Indirect

15 SDIC Huanneng Electric Power Co.,Ltd.

Beijing

Power investment

100.00

Establishment by investment

15-1 Xiamen Newsky Energy Environmental

Technology Co., Ltd.

Business combination under different

control

Xiamen, Fujian

Liupanshui, Guizhou

Thailand

Xiamen, Fujian

60.00

100.00

99.00

15-1-1 Guizhou Newsky Environmental Technology

Co., Ltd.

Business combination under different

control

Liupanshui, Guizhou

Thailand

Garbage power

Waste treatment

Power investment

Garbage power

Power investment

15-1-1-1 Guizhou Newsky Kitchen Waste Treatment

Co., Ltd.

Business combination under different

control

Business combination under different

control

15-1-2 Newsky Energy (Thailand) Company Limited

100.00

15-1-2-1 C&G Environment Protection (Thailand)

Company Limited

Business combination under different

control

Thailand

Business combination under different

control

15-1-2-2 Newsky Energy (Bangkok) Company Limited Thailand

Thailand

99.99

15-1-3 Newsky (Philippines) Holdings Corporation

16. SDIC New Energy Investment Co., Ltd.

16 SDIC Baiyin Wind Power Co., Ltd.

Philippines

Beijing

Power investment

Wind power

100.00

Establishment by investment

Lanzhou, Gansu

Baiyin, Gansu

Jiuquan, Gansu

64.89

Baiyin, Gansu

Jiuquan, Gansu

100.00

65.00

16-2 SDIC Jingyuan First Wind Power Co., Ltd.

Wind power

Notes to Financial Statement Page186

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Shareholding proportion

(%)

Place of main

business

Name of subsidiary company

Place of registration

Business nature

Acquirement method

Direct

Indirect

100.00

79.60

16-3 SDIC Jingyuan Second Wind Power Co., Ltd.

16-4 SDIC Qinghai Wind Power Co., Ltd.

16-5 SDIC Turpan Wind Power Co., Ltd.

16-6 SDIC Ningxia Wind Power Co., Ltd.

16-7 SDIC Dunhuang Photovoltaic Power Co., Ltd.

16-8 SDIC Shizuishan Photovoltaic Power Co., Ltd.

16-9 SDIC Geermu Photovoltaic Power Co., Ltd.

16-10 SDIC Yunnan New Energy Co., Ltd.

16-11 SDIC Chuxiong Wind Power Co., Ltd.

16-12 SDIC Dali Photovoltaic Power Co., Ltd.

16-13 SDIC Guangxi Wind Power Co., Ltd.

16 SDIC Hami Wind Power Co., Ltd.

Jiuquan, Gansu

Haixi, Qinghai

Jiuquan, Gansu

Haixi, Qinghai

Wind power

Establishment by investment

Wind power

Turpan, Xinjiang

Zhongwei, Ningxia

Dunhuang, Gansu

Shizuishan, Ningxia

Geermu, Qinghai

Kunming, Yunnan

Chuxiong, Yunnan

Dali, Yunnan

Turpan, Xinjiang

Zhongwei, Ningxia

Dunhuang, Gansu

Shizuishan, Ningxia

Geermu, Qinghai

Kunming, Yunnan

Chuxiong, Yunnan

Dali, Yunnan

Wind power

100.00

90.00

Wind power

Photovoltaic power

Wind power

90.00

Photovoltaic power

Wind power

100.00

Qinzhou, Guangxi

Hami, Xinjiang

Tianjin

Qinzhou, Guangxi

Hami, Xinjiang

Tianjin

Wind power

16-15 Tianjin SDIC New Energy Co., Ltd.

Wind power

Notes to Financial Statement Page187

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Shareholding proportion

(%)

Place of main

business

Name of subsidiary company

Place of registration

Business nature

Acquirement method

Direct

Indirect

100.00

Lanzhou City, Gansu

Province

Lanzhou City, Gansu

Province

16-16 SDIC Gansu New Energy Co., Ltd.

16-17 SDIC Barkol New Energy Co., Ltd.

Power investment

Wind power

Establishment by investment

Hami, Xinjiang

Jiuquan, Gansu

Turpan, Xinjiang

Hami, Xinjiang

Jiuquan, Gansu

Turpan, Xinjiang

17 Aksay Kazakh Autonomous County Boying Energy

Co., Ltd.

Photovoltaic power

Wind power

65.00

51.00

18 SDIC Jiuquan New Energy Co., Ltd.

19 Toksun Trina Solar Energy Co., Ltd.

Business combination under different

control

Photovoltaic power

100.00

Business combination under different

control

20 SDIC New Energy (Honghe) Co., Ltd.

21 Yunxian Ganrun New Energy Co., Ltd.

22 Guiding Guoneng New Energy Co., Ltd.

Honghe, Yunnan

Lincang, Yunnan

Qiannan, Guizhou

Honghe, Yunnan

Lincang, Yunnan

Qiannan, Guizhou

Photovoltaic power

90.00

95.00

10.00

Establishment by investment

Photovoltaic power,

wind power

100.00

Photovoltaic power,

wind power

23 Pingtang Yueyang New Energy Co., Ltd.

24 SDIC (Erdos City) New Energy Co., Ltd.

Qiannan, Guizhou

100.00

Establishment by investment

Erdos, Inner

Mongolia

Erdos, Inner

Mongolia

Power investment

Notes to Financial Statement Page188

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Shareholding proportion

(%)

Place of main

business

Name of subsidiary company

Place of registration

Business nature

Acquirement method

Direct

Indirect

Business combination under different

control

25 Dingbian Angli Photovoltaic Technology Co., Ltd.

Yulin, Shaanxi

Photovoltaic power

100.00

26 Jingbian Zhiguang New Energy Development Co.,

Ltd.

Business combination under different

control

Yulin, Shaanxi

Photovoltaic power

Power investment

Photovoltaic power

100.00

27 SDIC Jiangsu New Energy Co., Ltd.

Nanjing, Jiangsu

Huzhou, Zhejiang

Nanjing, Jiangsu

Huzhou, Zhejiang

Establishment by investment

Business combination under different

control

28 Huzhou Xianghui Photovoltaic Power Co., Ltd.

Business combination under different

control

29 Xiangshui Hengneng Solar Power Co., Ltd.

30 Xiangshui Yongneng Solar Power Co., Ltd.

31 Hengfeng Jinko Electric Power Co., Ltd.

32 Yancheng Zhihui Energy Power Co., Ltd.

Yancheng, Jiangsu

Shangrao, Jiangxi

Yancheng, Jiangsu

Shangrao, Jiangxi

Yancheng, Jiangsu

Changzhou, Jiangsu

Fuyang, Anhui

Photovoltaic power

Energy storage

100.00

90.00

81.00

90.00

Business combination under different

control

Business combination under different

control

Business combination under different

control

Business combination under different

control

33 Jiangsu Tiansai New Energy Development Co., Ltd. Changzhou, Jiangsu

Photovoltaic power

Business combination under different

control

33-1 Yingshang Runneng New Energy Co., Ltd.

Fuyang, Anhui

100.00

Notes to Financial Statement Page189

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Shareholding proportion

(%)

Place of main

business

Name of subsidiary company

Place of registration

Business nature

Acquirement method

Direct

Indirect

Business combination under different

control

34 Changzhou Tiansui New Energy Co., Ltd.

34-1 Suixi Tianhuai New Energy Co., Ltd.

35 SDIC New Energy Co., Ltd.

Changzhou, Jiangsu

Huaibei, Anhui

Changzhou, Jiangsu

Huaibei, Anhui

Photovoltaic power

100.00

Business combination under different

control

100.00

Investment

management

Zhangjiakou, Hebei

100.00

Establishment by investment

Ganzhou City, Jiangxi Ganzhou City,

Province

35-1 Yudu Guoli New Energy Co., Ltd.

36 Zhangjiakou Jinko New Energy Co., Ltd.

37 Guyuan Guanghui New Energy Power Co., Ltd.

38 Shenyang Jingbu Photovoltaic Power Co., Ltd.

New energy

95.00

Jiangxi Province

Business combination under different

control

Zhangjiakou, Hebei

Photovoltaic power

100.00

Business combination under different

control

Zhangjiakou, Hebei

Shenyang, Liaoning

Zhangjiakou, Hebei

Shenyang, Liaoning

Business combination under different

control

Business combination under different

control

38-1 Fuxin Jingbu Solar Power Co., Ltd.

39 SDIC (Hainan) New Energy Co., Ltd.

40 Hainan Dongfang Gaopai Wind Power Co., Ltd.

Fuxin, Liaoning

Photovoltaic power

Wind power

100.00

Wenchang, Hainan

Dongfang, Hainan

Wenchang, Hainan

Dongfang, Hainan

100.00

Establishment by investment

Business combination under different

control

Wind power

Notes to Financial Statement Page190

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Shareholding proportion

(%)

Place of main

business

Name of subsidiary company

Place of registration

Business nature

Acquirement method

Direct

Indirect

Investment

management

41 SDIC Tibet New Energy Co., Ltd.

Lhasa, Tibet

100.00

Establishment by investment

42 Aksay Kazakh Autonomous County Huidong New

Energy Co., Ltd.

Business combination under different

control

Jiuquan, Gansu

New energy

100.00

43 SDIC Shanxi Hejin Pumped Storage Co., Ltd.

44 SDIC (Hunan Anren) Pumped Storage Co., Ltd.

45 Tianjin Baodi Huifeng New Energy Co., Ltd.

46 SDIC Xinjiang New Energy Co., Ltd.

Hejin, Shanxi

Chenzhou, Hunan

Tianjin

Hejin, Shanxi

Chenzhou, Hunan

Tianjin

Energy storage

New energy

100.00

51.00

Establishment by investment

Urumchi, Xinjiang

New energy

100.00

Changji Hui

46-1 Manas Guoli New Energy Co., Ltd.

46-2 Ruoqiang Guoli New Energy Co., Ltd.

Autonomous

Prefecture, Xinjiang

Autonomous

Prefecture, Xinjiang

New energy

100.00

Establishment by investment

Bayingolin Mongol

Autonomous

Bayingolin Mongol

Autonomous

Prefecture, Xinjiang

47 Yuanjiang Ganrun New Energy Co., Ltd.

48 SDIC Guizhou New Energy Co., Ltd.

49 Ceheng Huifeng New Energy Co., Ltd.

Yuxi, Yunnan

New energy

100.00

Establishment by investment

Guiyang, Guizhou

Ceheng, Guizhou

Guiyang, Guizhou

Ceheng, Guizhou

Notes to Financial Statement Page191

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Shareholding proportion

(%)

Place of main

business

Name of subsidiary company

Place of registration

Business nature

Acquirement method

Direct

Indirect

50 SDIC (Guangdong) Offshore Wind Power

Development Co., Ltd.

Shantou, Guangdong

New energy

51.00

Establishment by investment

Jieyang City,

Guangdong province

Jieyang City,

Guangdong province

50-1 SDIC (Huilai) Kuiyang New Energy Co., Ltd.

100.00

51 SDIC Shiyan New Energy Co., Ltd.

Shiyan, Hubei

New energy

Energy storage

New energy

100.00

99.60

Establishment by investment

52 SDIC Hebei New Energy Co., Ltd.

Shijiazhuang, Hebei

Dunhua, Jilin

Shijiazhuang, Hebei

Dunhua, Jilin

53 SDIC Jilin Dunhua Pumped Storage Co., Ltd.

54 Huaning Ganrun New Energy Co., Ltd.

55 SDIC Guangxi New Energy Development Co., Ltd.

56 Quanzhou Yuansheng New Energy Co., Ltd.

57 Pingyang Aoqi New Energy Co., Ltd.

Yuxi, Yunnan

100.00

60.00

Qinzhou, Guangxi

Guilin, Guangxi

Wenzhou, Zhejiang

Qinzhou, Guangxi

Guilin, Guangxi

Wenzhou, Zhejiang

58 SDIC Yunnan New Energy Technology Co.,

Ltd.(Note 1)

Kunming, Yunnan

Yichang, Hubei

Kunming, Yunnan

Yichang, Hubei

New energy

40.00

95.00

Establishment by investment

59 SDIC Yichang New Energy Co., Ltd.

60 Chengde Lifeng New Energy Co., Ltd.

Liupanshui City,

Guzhou Province

Liupanshui City,

Guzhou Province

100.00

Notes to Financial Statement Page192

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Shareholding proportion

(%)

Place of main

business

Name of subsidiary company

Place of registration

Business nature

Acquirement method

Direct

55.00

51.00

Indirect

61 SDIC Bangda (Hainan) New Energy Co., Ltd.

62 Guangxi Guoling New Energy Co., Ltd.

Wanning, Hainan

Wuzhou, Guangxi

Wanning, Hainan

Wuzhou, Guangxi

Kunming, Yunnan

New energy

Establishment by investment

63 Kunming Dongchuan Ganrun New Energy Co., Ltd. Kunming, Yunnan

64 SDIC Inner Mongolia New Energy Development

Co., Ltd.

Hohhot, Inner

Mongolia

Hohhot, Inner

Mongolia

New energy

100.00

Establishment by investment

65 SDIC Shaanxi New Energy Co., Ltd.

65-1 Mizhi Guoyuan New Energy Co., Ltd.

66 Dongying Shengyue New Energy Co., Ltd.

67 Shangyi Ruida New Energy Co., Ltd.

Xi’an, Shaanxi

Yulin City, Shaanxi

Province

Yulin City, Shaanxi

Province

Dongying, Shandong

Dongying, Shandong New energy

100.00

Zhangjiakou City,

Hebei Province

Zhangjiakou City,

New energy

Hebei Province

Guangxi Zhuang

Autonomous Region

Guangxi Zhuang

New energy

68 Pubei Yuansheng New Energy Co., Ltd

69 Tianjin Binhai Guoli New Energy Co., Ltd.

70 Yuxi Ganrun New Energy Co., Ltd.,

51.00

100.00

Establishment by investment

Autonomous Region

Tianjin

New energy

Yuxi City, Yunnan

Province

Yuxi City, Yunnan

Province

Notes to Financial Statement Page193

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Shareholding proportion

(%)

Place of main

business

Name of subsidiary company

Place of registration

Business nature

Acquirement method

Direct

Indirect

Zhangjiakou City,

Hebei Province

Zhangjiakou City,

Hebei Province

71 Zhangjiakou Kaitou New Energy Co., Ltd.

New energy

100.00

Establishment by investment

72 SDIC Genting Meizhouwan (Putian) New Energy

Co., Ltd.

Putian City, Fujian

Province

Putian City, Fujian

Province

61.00

100.00

40.00

73 Ningxiang Gushanfeng New Energy Development

Co., Ltd.

Changsha City,

Hunan Province

Changsha City,

Hunan Province

Business combination under different

control

74 Yunnan Kunming Wuhua Qianrun New Energy

Co., Ltd.（Notes 2）

Kunming City,

Yunnan Province

Kunming City,

Yunnan Province

Establishment by investment

Yangquan City,

Shanxi Province

Yangquan City,

Shanxi Province

75 Yangquan Guoli New Energy Co., Ltd.

76 SDIC Zhejiang New Energy Co., Ltd.

77 Pubei Yuanli New Energy Co., Ltd.

78 SDIC (Qionghai) New Energy Co., Ltd.

100.00

Hangzhou City,

Zhejiang Province

Hangzhou City,

Zhejiang Province

Guangxi Zhuang

Autonomous Region

Guangxi Zhuang

Autonomous Region

Qionghai City,

Hainan Province

Qionghai City,

Hainan Province

79 SDIC Tibet Renbu New Energy Co., Ltd.

80 SDIC Tibet Seni New Energy Co., Ltd.

Shigatse, Tibet

Nagchu, Tibet

Shigatse, Tibet

Nagchu, Tibet

New energy

100.00

Establishment by investment

Notes to Financial Statement Page194

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Shareholding proportion

(%)

Place of main

business

Name of subsidiary company

Place of registration

Business nature

Acquirement method

Direct

100.00

Indirect

81 SDIC Tibet Nyima New Energy Co., Ltd.

82 SDIC Tibet Nyainrong New Energy Co., Ltd.

Nagchu, Tibet

New energy

Establishment by investment

Zhangjiakou City,

Hebei Province

Zhangjiakou City,

Hebei Province

83 Zhangjiakou Fufeng New Energy Co., Ltd.

84 Shilin Qianrun New Energy Co., Ltd.(Note 3)

85 SDIC Qinghai New Energy Co., Ltd.

86 SDIC (Shandong) New Energy Co., Ltd.

87 SDIC (Fujian) New Energy Co., Ltd.

New energy

100.00

40.00

Establishment by investment

Kunming City,

Yunnan Province

Kunming City,

Yunnan Province

Xining City, Qinghai

Province

Xining City, Qinghai

Province

100.00

Jinan City, Shandong

Province

Jinan City, Shandong

Province

Fuzhou City, Fujian

Province

Fuzhou City, Fujian

Province

87-1 Zhangzhou Gulei Guozhang New Energy Co.,

Ltd.

Zhangpu County,

Fujian Province

Zhangpu County,

Fujian Province

80.00

Xingtai City, Hebei

Province

Xingtai City, Hebei

Province

88 Xingtai Guoli New Energy Co., Ltd.

100.00

51.00

89 SDIC Meizhouwan (Putian) Electric Power Co.,

Ltd.

Putian City, Fujian

Province

Putian City, Fujian

Province

Notes to Financial Statement Page195

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Shareholding proportion

(%)

Place of main

business

Name of subsidiary company

Place of registration

Business nature

Acquirement method

Direct

Indirect

Kunming City,

Yunnan Province

Kunming City,

Yunnan Province

90 Xundian Qianrun New Energy Co., Ltd.(Note 4)

91 Zhangjiakou Yuanli New Energy Co., Ltd.

92 Tongcheng Jinjia New Energy Co., Ltd.

New energy

35.00

Establishment by investment

Zhangjiakou City,

Hebei Province

Zhangjiakou City,

Hebei Province

100.00

Tongcheng, Anqing

City, Anhui Province

Tongcheng, Anqing

City, Anhui Province

Notes 1: SDIC Power Holdings co., Ltd holds 40% equity in SDIC Yunnan New Energy Technology Co., LTD. In August 2022, SDIC

Power and Kunming Yao Yang Technology Co., LTD. (holding 30%, hereinafter referred to as Kunming Yao Yang) signed a joint action

agreement, which stipulated that Kunming Yao Yang will take actions consistent with SDIC Power when exercising its convening rights,

proposal rights and voting rights. Sdic Power effectively controls 70% of the equity, so it can control the main body.

Notes 2: SDIC Power Holdings co., Ltd holds 40% equity in Yunnan Kunming Wuhua District Qianrun New Energy Co., LTD. In March

2023, SDIC Power signed a joint action agreement with Shiyan Hechang Macalline Commercial Management Co., LTD. (holding 27.10%). The

agreement stipulates that Shiyan Hechang Macalline Commercial Management Co., Ltd. shall take actions consistent with SDIC Power when

exercising its convening rights, proposing rights and voting rights, and SDIC Power shall actually control 67.10% of the equity, so it can control

the subject.

Notes 3: SDIC Power Holdings co., Ltd holds 40% equity in Shilin County Qianrun New Energy Co., LTD. In August 2023, SDIC Power

signed a joint action agreement with Yunnan Longjun New Energy Automobile Co., LTD. (Holding 30%, hereinafter referred to as Yunnan

Longjun) and Yunnan Xianglong New Energy Co., LTD. (Holding 30%, hereinafter referred to as Yunnan Xianglong). The agreement stipulates

that Yunnan Longjun and Yunnan Xianglong take the same actions as SDIC Power when exercising the right to propose and vote, and SDIC

Power actually controls the equity proportion of 100%, so it can control the main body.

Notes to Financial Statement Page196

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Important non-wholly owned subsidiaries

Profits and losses

attributable to the

minority

shareholders in

this year

Dividends

distributed to

minority

shareholder in this

year

Shareholding

ratio of

minority

Ending balance of

minority

Name of subsidiary company

stockholder's equity

shareholders

Yalong River Hydropower

Development Co., Ltd.

48.00

36.00

4,157,964,757.91

3,778,084.95

2,400,000,000.00

32,637,713,886.67

356,035,260.55

Tianjin SDIC Jinneng Electric

Power Co., Ltd.

SDIC Genting Meizhouwan

Electric Power Company

Limited

49.00

142,970,575.89

1,455,538,299.78

SDIC Qinzhou Electric Power

Co., Ltd.

39.00

35.11

44.00

50.00

370,326,889.50

272,790,727.17

59,772,490.63

294,344,686.90

1,188,620,717.72

2,427,696,841.95

610,336,290.71

1,704,130,208.57

SDIC New Energy Investment

Co., Ltd.

Xiamen Huaxia International

Power Development Co., Ltd.

SDIC Yunnan Dachaoshan

Hydropower Co., Ltd.

330,327,798.76

Notes to Financial Statement Page198

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Main financial information of important non-wholly owned subsidiary companies

Ending balance

Name of subsidiary company

Non-current

liabilities

Current assets

Non-current assets

Total assets

Current liabilities

Total liabilities

Yalong River Hydropower Development Co., Ltd.

Tianjin SDIC Jinneng Electric Power Co., Ltd.

8,941,587,510.41

1,486,595,563.96

170,252,986,551.01

9,041,464,374.32

179,194,574,061.42

10,528,059,938.28

30,090,737,689.68

2,144,918,117.80

81,170,950,522.73

7,394,154,985.60

111,261,688,212.41

9,539,073,103.40

SDIC Genting Meizhouwan Electric Power Company

Limited

1,852,113,843.90

3,962,610,538.67

5,814,724,382.57

869,669,456.27

1,936,116,006.89

2,805,785,463.16

SDIC Qinzhou Electric Power Co., Ltd.

SDIC New Energy Investment Co., Ltd.

1,606,055,175.72

3,476,215,498.78

3,922,029,070.73

13,478,579,018.45

5,528,084,246.45

16,954,794,517.23

637,464,938.48

1,861,430,848.66

7,802,643,322.99

2,498,895,787.14

10,822,718,760.52

3,020,075,437.53

Xiamen Huaxia International Power Development Co.,

Ltd.

808,716,995.45

2,367,441,399.90

3,176,158,395.35

374,727,211.91

1,414,303,250.00

1,789,030,461.91

SDIC Yunnan Dachaoshan Hydropower Co., Ltd.

SDIC Panjiang Electric Power Co., Ltd.

SDIC Gansu Xiaosanxia Power Co., Ltd.

1,123,556,267.52

265,100,286.12

165,022,154.29

2,434,032,709.40

1,506,495,252.39

1,967,441,608.78

3,557,588,976.92

1,771,595,538.51

2,132,463,763.07

107,168,264.97

401,040,649.51

291,327,237.53

42,160,294.81

723,336,414.23

258,629,535.23

149,328,559.78

1,124,377,063.74

549,956,772.76

Notes to Financial Statement Page199

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Amount in current year

Name of subsidiary company

Operating income

Cash flows from operating

activities

Net profit

Total comprehensive income

Yalong River Hydropower Development Co., Ltd.

Tianjin SDIC Jinneng Electric Power Co., Ltd.

24,485,411,155.03

7,163,097,368.39

8,657,958,958.86

8,653,151,033.46

10,514,680.43

15,380,802,284.56

10,494,680.43

251,757,314.73

948,591,489.35

934,725,550.04

SDIC Genting Meizhouwan Electric Power

Company Limited

5,732,778,536.30

253,837,314.73

SDIC Qinzhou Electric Power Co., Ltd.

SDIC New Energy Investment Co., Ltd.

7,904,543,074.22

2,182,571,417.76

949,475,677.72

737,865,223.53

950,035,677.72

735,388,348.53

1,468,847,680.40

1,460,844,762.48

Xiamen Huaxia International Power Development

Co., Ltd.

2,648,555,543.60

135,846,569.59

135,836,569.59

252,834,840.94

SDIC Yunnan Dachaoshan Hydropower Co., Ltd.

SDIC Panjiang Electric Power Co., Ltd.

SDIC Gansu Xiaosanxia Power Co., Ltd.

1,035,141,794.56

1,039,680,115.86

832,422,670.91

588,689,373.80

81,547,241.29

324,531,523.90

586,739,373.80

81,547,241.29

323,117,089.90

697,835,379.19

221,320,375.14

491,455,168.59

Notes to Financial Statement Page200

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Continued:

Beginning balance

Name of subsidiary company

Non-current

liabilities

Current assets

5,457,057,779.97

1,174,725,230.76

1,228,272,550.67

1,048,729,414.56

3,760,823,053.34

683,197,456.05

1,149,977,619.17

249,128,406.85

220,404,612.26

Non-current assets

169,151,575,242.13

9,933,149,283.42

4,557,070,413.12

4,265,450,935.02

10,836,478,602.42

2,169,195,299.02

2,485,651,426.69

1,633,178,094.55

2,039,659,891.52

Total assets

Current liabilities

31,845,063,842.03

2,158,394,904.13

880,440,202.90

603,365,938.88

3,178,565,318.37

830,802,548.08

113,374,478.88

379,151,850.45

291,823,555.80

Total liabilities

Yalong River Hydropower

Development Co., Ltd.

174,608,633,022.10

11,107,874,514.18

5,785,342,963.79

5,314,180,349.58

14,597,301,655.76

2,852,392,755.07

3,635,629,045.86

1,882,306,501.40

2,260,064,503.78

80,511,266,848.25

7,986,221,760.36

2,174,493,285.15

2,640,223,964.38

6,395,170,208.15

779,280,282.56

41,252,598.65

112,356,330,690.28

Tianjin SDIC Jinneng Electric Power

Co., Ltd.

10,144,616,664.49

3,054,933,488.05

3,243,589,903.26

9,573,735,526.52

1,610,082,830.64

154,627,077.53

1,240,054,582.40

664,344,128.16

SDIC Genting Meizhouwan Electric

Power Company Limited

SDIC Qinzhou Electric Power Co.,

Ltd.

SDIC New Energy Investment Co.,

Ltd.

Xiamen Huaxia International Power

Development Co., Ltd.

SDIC Yunnan Dachaoshan

Hydropower Co., Ltd.

SDIC Panjiang Electric Power Co.,

Ltd.

860,902,731.95

372,520,572.36

SDIC Gansu Xiaosanxia Power Co.,

Ltd.

Notes to Financial Statement Page201

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Amount in previous year

Name of subsidiary company

Operating income

Net profit

Total comprehensive income

Cash flows from operating activities

Yalong River Hydropower Development Co.,

Ltd.

22,221,416,028.45

7,360,616,191.58

-1,283,631,833.21

-218,342,217.02

7,370,603,243.99

-1,283,491,833.21

-219,702,217.02

15,548,995,744.57

Tianjin SDIC Jinneng Electric Power Co., Ltd.

6,095,747,091.90

5,206,364,959.42

281,499,613.54

277,437,993.90

SDIC Genting Meizhouwan Electric Power

Company Limited

SDIC Qinzhou Electric Power Co., Ltd.

SDIC New Energy Investment Co., Ltd.

6,585,620,754.35

1,837,364,172.69

-174,211,530.22

606,628,257.50

-184,641,530.22

608,000,437.50

850,073,848.13

2,833,690,310.88

Xiamen Huaxia International Power

Development Co., Ltd.

2,685,716,737.75

1,129,261,366.10

-71,968,578.22

660,255,151.96

-71,398,578.22

654,695,151.96

26,962,557.82

689,660,806.89

SDIC Yunnan Dachaoshan Hydropower Co.,

Ltd.

SDIC Panjiang Electric Power Co., Ltd.

SDIC Gansu Xiaosanxia Power Co., Ltd.

957,707,643.69

891,733,767.89

88,942,912.44

383,025,616.14

88,942,912.44

383,733,673.58

323,404,506.28

539,154,553.45

Notes to Financial Statement Page202

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

(II)

Equity in joint ventures or associates

Important joint ventures or associates

Shareholding

proportion (%)

Accounting

methods for

the

Principal

placeof

business

Nameofjointventureor

associate

Registration

place

BusinessNature

investment

in joint

venture or

associate

Direct

Indirect

Cloud Wind Farm

Holdings AB

Equity

method

Sweden

Wind power

Thermal power

50.00

Inch Cape Offshore

Limited Holdings

Equity

method

Tongshan Huarun Electric

Power Co., Ltd.

Xuzhou,

Jiangsu

Xuzhou,

Jiangsu

Equity

method

21.00

33.22

Nanchang,

Jiangxi

Nanchang,

Jiangxi

Power

production

Equity

method

Jiangxi Ganneng Co., Ltd.

Environmental

protection

industry

Hanlan Environment Co.,

Ltd.

Foshan,

Guangdong

Foshan,

Guangdong

Equity

method

8.10

0.80

Financial

investment

Equity

method

SDIC Finance Co., Ltd.

Beijing

34.60

25.00

42.11

Beatrice Offshore

Windfarm Holdco Limited

Equity

method

Wind power

Investment

management

Equity

method

Lestari Listrik Pte. Ltd

Singapore

Xuzhou Huarun Electric

Power Co., Ltd.

Xuzhou,

Jiangsu

Xuzhou,

Jiangsu

Equity

method

Thermal power

30.00

9.17

Jiangyin Ligang Power

Stock Co., Ltd

Jiangyin,

Jiangsu

Jiangyin,

Jiangsu

Equity

method

Basis for holding 20% below of voting right but having significant influence or holding 20% or

above of voting but having no significant influence:

Note 1: the Company holds 8.10% of shares of Hanlan Environment Co., Ltd., is the third-largest

shareholder of the latter, and dispatches one director to the latter, having significant influence on

the business decision of the latter.

Note 2: the Company holds 9.17% of shares of Jiangyin Ligang Power Stock Co., Ltd., is the

third-largest shareholder of the latter, and dispatches one director to the latter, having significant

influence on the business decision of the latter.

Notes to Financial Statement Page203

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Main financial information of important joint ventures

Ending balance/Amount incurred in the

current year

Beginning balance/Amount incurred in

the previous year

Item

Cloud Wind Farm

Holdings AB

Inch Cape Offshore

Limited Holdings

Cloud Wind Farm

Holdings AB

Inch Cape Offshore

Limited Holdings

Current assets

134,287,116.75

15.480,384.13

187,532,684.15

51,502,825.05

104,328,814.96

210,461,936.84

47,698,910.85

Including: cash and cash

equivalent

96,760,901.23

Non-current assets

Total assets

1,762,909,915.34

1,897,197,032.09

587,920,077.88

1,294,555,100.77

1,882,475,178.65

2,992,779,126.65

3,180,311,810.80

2,891,465,129.64

109,948,120.94

3,001,413,250.58

1,827,257,720.33

1,931,586,535.29

59,961,414.20

1,415,018,887.91

1,625,480,824.75

1,367,263,107.04

75,743,691.28

Current liabilities

Non-current liabilities

Total liabilities

1,769,973,751.55

1,829,935,165.75

1,443,006,798.32

Minority equity

Shareholder's

attributable

company

equity

the

14,721,853.44

178,898,560.22

101,651,369.54

182,474,026.43

Share of net asset

calculated as per

shareholding proportion

7,360,926.72

-7,360,926.72

89,449,280.11

-25,261,145.51

50,825,684.77

-21,215,080.01

91,237,013.22

-4,048,254.02

Adjusted item

-- Goodwill

-- Unrealized profit in

internal transaction

-11,626,284.93

7,578,030.91

-- Other

-7,360,926.72

-25,261,145.51

64,188,134.60

-21,215,080.01

29,610,604.73

Book value of equity

investment

ventures

joint

87,188,759.22

Fair value of equity

investment in joint

ventures with public

offer

Operating income

Financial expense

42,943,094.53

-94,814,529.51

-6,947,579.30

-10,183,955.72

39,611,867.51

-88,477,092.95

339,663.70

-8,191,979.04

Notes to Financial Statement Page204

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Ending balance/Amount incurred in the

current year

Beginning balance/Amount incurred in

the previous year

Item

Cloud Wind Farm

Holdings AB

Inch Cape Offshore

Limited Holdings

Cloud Wind Farm

Holdings AB

Inch Cape Offshore

Limited Holdings

Income tax expense

Net profit

-188,027,301.89

-17,131,526.24

-417,659,610.44

-14,365,947.90

Net

profit

from

discontinued operations

Other

income

comprehensive

-2,774,692.42

Total

income

-188,027,301.89

-17,131,526.24

-420,434,302.86

-14,365,947.90

Dividend received from

joint ventures in this year

Continued 1:

Ending balance/Amount incurred in the

current year

Beginning balance/Amount incurred in

the previous year

Item

Tongshan Huarun

Jiangxi Ganneng

Electric Power Co.,

Co., Ltd.

Tongshan Huarun

Jiangxi Ganneng

Electric Power

Co., Ltd.

Ltd.

Co., Ltd.

Current assets

1,761,205,632.73

2,101,522,581.52

3,862,728,214.25

751,899,550.74

770,857,473.02

1,522,757,023.76

2,045,191,193.97

11,703,811,865.45

13,749,003,059.42

2,205,503,979.17

6,198,058,738.25

8,403,562,717.42

93,672,947.02

1,479,339,614.71

2,478,097,501.50

3,957,437,116.21

1,211,852,812.95

954,311,602.89

2,108,093,645.94

9,646,764,792.57

11,754,858,438.51

2,565,295,795.21

4,458,280,767.95

7,023,576,563.16

71,129,750.26

Non-current assets

Total assets

Current liabilities

Non-current liabilities

Total liabilities

Minority equity

2,166,164,415.84

Shareholder's equity

attributable to the

company

2,339,971,190.49

5,251,767,394.98

1,791,272,700.37

4,660,152,125.09

Share of net asset

calculated

shareholding

proportion

per

491,393,950.00

-1,538,341.76

1,744,637,128.61

365,553,967.55

376,167,267.08

-1,538,341.76

1,366,801,759.89

548,791,390.89

Adjusted item

Notes to Financial Statement Page205

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Ending balance/Amount incurred in the

current year

Beginning balance/Amount incurred in

the previous year

Item

Tongshan Huarun

Jiangxi Ganneng

Electric Power Co.,

Co., Ltd.

Tongshan Huarun

Electric Power

Co., Ltd.

Jiangxi Ganneng

Co., Ltd.

Ltd.

-- Goodwill

-- Unrealized profit in

internal transaction

-- Other

-1,538,341.76

365,553,967.55

-1,538,341.76

548,791,390.89

Book value of equity

investment

associates

489,855,608.24

2,110,191,096.16

374,628,925.32

1,915,593,150.78

Fair value of equity

investment in

associates with public

offer

2,508,701,958.00

3,166,669,009.00

Operating income

Net profit

4,295,612,608.68

535,745,641.15

7,090,130,359.08

585,061,914.33

3,742,186,805.20

132,683,777.87

4,099,602,441.82

11,492,854.41

Net

profit

from

discontinued

operations

Other comprehensive

income

468,000.00

917,844.16

1,668,000.00

Total comprehensive

income

536,213,641.15

585,979,758.49

134,351,777.87

11,492,854.41

Dividend

received

from associates in this

year

Continued 2:

Ending balance/Amount incurred in the

current year

Beginning balance/Amount incurred in the

previous year

Item

Hanlan

SDIC Finance Co.,

Environment Co.,

Ltd.

Hanlan Environment

Co., Ltd.

SDIC Finance Co.,

Ltd.

Current assets

Non-current assets

Total assets

7,807,503,085.29

27,990,196,386.09

35,797,699,471.38

11,512,226,009.48

34,852,360,836.41

46,364,586,845.89

6,431,647,472.78

26,856,125,959.65

33,287,773,432.43

14,963,610,869.36

30,998,375,569.34

45,961,986,438.70

Notes to Financial Statement Page206

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Ending balance/Amount incurred in the

current year

Beginning balance/Amount incurred in the

previous year

Item

Hanlan

Environment Co.,

Ltd.

Hanlan Environment

Co., Ltd.

SDIC Finance Co.,

Ltd.

SDIC Finance Co.,

Ltd.

Current liabilities

Non-current liabilities

Total liabilities

9,908,240,687.86

13,049,588,671.21

22,957,829,359.07

720,923,449.50

38,547,000,990.18

83,111,277.96

9,866,607,688.37

11,821,843,316.99

21,688,451,005.36

716,123,879.59

38,274,621,601.59

79,721,913.86

38,630,112,268.14

38,354,343,515.45

Minority equity

Shareholder's equity

attributable to the

company

12,118,946,662.81

7,734,474,577.75

2,738,004,000.52

10,883,198,547.48

7,607,642,923.25

Share of net asset

calculated

per

981,210,516.55

415,308,191.68

881,158,170.40

414,928,591.88

2,693,105,594.83

shareholding

proportion

Adjusted item

-- Goodwill

-- Unrealized profit in

internal transaction

-- Other

415,308,191.68

414,928,591.88

Book value of equity

investment

associates

1,396,518,708.23

2,738,004,000.52

1,296,086,762.28

2,693,105,594.83

Fair value of equity

investment in

associates with public

offer

1,144,031,683.59

1,218,628,094.58

Operating income

Net profit

12,541,288,979.45

1,469,648,851.09

1,105,173,196.53

404,003,357.98

12,875,063,180.82

1,176,117,364.08

1,088,218,467.53

423,852,361.79

Net

profit

from

discontinued

operations

Other comprehensive

income

4,110,973.95

42,054,570.99

446,057,928.97

2,726,444.24

-30,266,366.99

393,585,994.80

Total comprehensive

income

1,473,759,825.04

1,178,843,808.32

Notes to Financial Statement Page207

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Ending balance/Amount incurred in the

current year

Beginning balance/Amount incurred in the

previous year

Item

Hanlan

Environment Co.,

Ltd.

Hanlan Environment

Co., Ltd.

SDIC Finance Co.,

Ltd.

SDIC Finance Co.,

Ltd.

Dividend

received

from associates in this

year

14,523,195.06

113,058,558.32

14,523,195.06

103,617,045.63

Continued 3:

Beginning balance/Amount incurred in

the previous year

Ending balance/Amount in current year

Item

Beatrice Offshore

Lestari Listrik Pte.

Windfarm Holdco

Ltd

Beatrice Offshore

Lestari Listrik Pte.

Windfarm Holdco

Ltd

Limited

Current assets

688,932,491.26

17,614,792,292.94

18,303,724,784.20

97,369,946.27

2,230,147,151.19

5,795,252,753.64

8,025,399,904.83

609,345,674.12

5,411,666,357.18

6,021,012,031.30

1,032,406,604.86

17,920,145,821.65

18,952,552,426.51

108,316,097.99

2,011,298,107.36

5,856,463,531.73

7,867,761,639.09

538,052,722.04

5,537,184,698.36

6,075,237,420.40

85,416,305.94

Non-current assets

Total assets

Current liabilities

Non-current liabilities

Total liabilities

Minority equity

16,212,542,704.93

16,309,912,651.20

16,826,912,354.93

16,935,228,452.92

Shareholder's

attributable

company

equity

the

1,993,812,133.00

2,004,387,873.53

2,017,323,973.59

1,707,107,912.75

calculated

net

asset

per

498,453,033.25

773,773,430.94

844,047,733.54

56,517,571.46

504,330,993.40

740,476,387.49

754,765,625.09

272,261,899.21

shareholding proportion

Adjusted item

-- Goodwill

-- Unrealized profit in

internal transaction

-- Other

773,773,430.94

56,517,571.46

900,565,305.00

740,476,387.49

272,261,899.21

Book value of equity

investment in associates

1,272,226,464.19

1,244,807,380.89

1,027,027,524.30

Notes to Financial Statement Page208

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Beginning balance/Amount incurred in

the previous year

Ending balance/Amount in current year

Item

Beatrice Offshore

Lestari Listrik Pte.

Windfarm Holdco

Ltd

Beatrice Offshore

Windfarm Holdco

Limited

Lestari Listrik Pte.

Ltd

Limited

Fair value of equity

investment in associates

with public offer

Operating income

Net profit

3,132,858,356.58

1,057,962,520.33

1,791,966,726.80

244,758,034.26

3,765,533,346.10

815,385,304.28

1,536,145,487.24

91,323,521.86

Net

profit

from

discontinued operations

Other

income

comprehensive

69,051,542.71

1,127,014,063.04

183,903,010.69

1,788,260,999.76

2,603,646,304.04

262,434,519.01

Total

income

comprehensive

244,758,034.26

26,585,078.04

91,323,521.86

11,600,249.08

Dividend received from

associates in this year

Continued 4:

Beginning balance/Amount incurred in

the previous year

Ending balance/Amount in current year

Item

Xuzhou Huarun

Electric Power

Co., Ltd.

Jiangyin Ligang

Power Stock Co.,

Ltd

Xuzhou Huarun

Electric Power

Co., Ltd.

Jiangyin Ligang

Power Stock Co.,

Ltd

Current assets

902,635,332.22

1,126,494,596.36

2,029,129,928.58

909,477,535.81

783,091,507.42

1,692,569,043.23

2,147,972,944.46

5,714,037,930.08

7,862,010,874.54

1,810,930,420.16

2,537,303,002.90

4,348,233,423.06

1,234,161,663.26

1,208,979,821.51

2,443,141,484.77

1,141,410,572.04

830,395,373.67

1,971,805,945.71

2,084,468,827.11

6,417,658,602.25

8,502,127,429.36

2,105,936,761.61

3,505,365,979.71

5,611,302,741.32

Non-current assets

Total assets

Current liabilities

Non-current liabilities

Total liabilities

Minority equity

3,059,641.45

182,688,309.27

2,619,788.39

184,078,900.32

Shareholder's

attributable to the company

equity

333,501,243.90

3,331,089,142.21

468,859,750.67

2,706,745,787.72

Notes to Financial Statement Page209

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Beginning balance/Amount incurred in

the previous year

Ending balance/Amount in current year

Item

Xuzhou Huarun

Electric Power

Co., Ltd.

Jiangyin Ligang

Power Stock Co.,

Ltd

Xuzhou Huarun

Electric Power

Co., Ltd.

Jiangyin Ligang

Power Stock Co.,

Ltd

Share of net asset calculated

per

shareholding

100,050,373.17

-6,208,291.57

305,460,874.34

-2,544,689.18

140,614,725.20

-6,208,291.56

270,099,824.89

-23,005,992.39

proportion

Adjusted item

-- Goodwill

-- Unrealized profit in

internal transaction

-- Other

-6,208,291.57

93,842,081.60

-2,544,689.18

-6,208,291.56

-23,005,992.39

247,093,832.50

Book value of equity

investment in associates

302,916,185.16

134,406,433.64

Fair

value

equity

investment in associates with

public offer

Operating income

Net profit

2,311,654,139.72

-141,425,469.52

7,130,971,601.09

632,552,763.44

2,475,245,631.40

-261,420,310.74

8,486,308,216.06

-125,466,775.06

Net profit from discontinued

operations

Other

income

comprehensive

408,000.00

-141,017,469.52

53,771,631.92

1,112,000.00

Total comprehensive income

632,552,763.44

-260,308,310.74

-125,466,775.06

Dividend received from

associates in this year

Financial information of unimportant joint ventures and associates

Ending balance/Amount in

current year

Beginning balance/Amount

incurred in the previous year

Item

Associates:

Total Book value of investment

773,267,695.46

710,921,936.95

Total number calculated as per shareholding

proportion

Notes to Financial Statement Page210

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Ending balance/Amount in

Beginning balance/Amount

incurred in the previous year

Item

current year

-- Net profit

59,926,385.89

18,352,245.47

--Other comprehensive income

--Total comprehensive income

18,352,245.47

IX.

(I)

Government subsidy

Type, amount and presentation of government subsidy

1. Government subsidy charged to profit and loss

Government subsidy related to assets

Amount

recognized in

non-operating

income during

the year

The amount

Balanc

e sheet

item

Amount recognized in

other income during

the year

Beginning

balance

of subsidy

increased

this year

Other

change

Ending

Balance

Deferr

140,262,582.88

3,980,000.00

10,481,029.76

133,761,553.12

income

Note: Details of government subsidy items are detailed in "V (XLI)" of this report.

Government subsidy related to income

The amount of

Amount recognized

in other income

during the year

Amount recognized in

non-operating income

during the year

Beginning

balance

subsidy

increased this

year

Other

Ending

Balance

Report item

change

Deferred income

0ther income

12,908,360.90

862,260.00

9,544,437.38

4,226,183.52

96,456,399.51

Non-operating

income

295,138.72

Total

12,908,360.90

97,613,798.23

96,456,399.51

9,839,576.10

4,226,183.52

Note: Details of government subsidy items are detailed in "V (XLI)", "V (LVI)"

and "V (LXII)" of this report.

Notes to Financial Statement Page211

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

(I)

Risk related to financial instrument

Various risks caused by financial instrument

The main financial instruments of the Group include loans, receivables, financial

assets held for trading, etc.; refer to Note V for detailed information on all financial

instruments.

The Group's risk management aims to achieve a proper balance between risk and

benefit, to minimize the negative effect of risks on the business performance of the Group,

and to maximize the interest of shareholders and other equity investors. Based on this risk

management objective, The Group’s Board of Directors is fully responsible for the

formulation of objectives and policies of risk management, and takes ultimate

responsibility for such objectives and policies. However, it has authorized the audit

department of the Group to design and implement procedures to ensure the effective

execution of the risk management objectives and policies. The Board of Directors reviews

the effectiveness of the implemented procedures and rationality of the risk management

objectives and policies according to monthly reports submitted by the audit supervisor.

The internal auditor of the Group also audits these risk management policies and

procedures and reports relevant findings to the audit committee.

The overall objective of the Group’s risk management is to formulate risk

management policies that reduce risks as much as possible without unduly affecting the

Company’s competitiveness and contingency ability.

Credit risk

On December 31, 2023, the greatest credit risk exposure causing the financial

loss of the Group is mainly from the loss of the financial assets of the Group that

the other party to the contract failed to perform obligations, including: accounts

receivable.

Most current assets of the Group are deposited with several large state-owned

banks and a non-bank financial institution that is a related party of the Group.

Because these state-owned banks have strong state support and have seats on the

Board of Directors of the related non-bank financial institution, the directors

believe that there is no significant credit risk for these assets.

Notes to Financial Statement Page212

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

For accounts receivable arising from electricity sales, most power plants of the

Group sell electricity to a single customer (grid company) in the province or

territory where the power plant is located. The Group communicates regularly with

grid companies and is confident that the accounts receivable can be fully recovered.

The total amount of accounts receivable owed by the top five debtors is RMB

8,710,326,118.91 as of December 31, 2023 (2022: RMB 4,690,912,157.39),

accounting for 59.54% (2022: 49.81%) of the total accounts receivable.

Except for accounts receivable, no significant concentrated credit risk exists in

the Group. Other receivables and long-term receivables mainly include receivables

from related parties. The Group evaluates the credit risk of related parties by

regularly checking their operating results and asset-liability ratio.

Liquidity risk

Liquidity risk is the risk that the Group cannot perform its financial

obligations on the maturity date. The Group has managed the liquidity risk in a

way by ensuring sufficient financial liquidity to perform due debts, so as to avoid

causing unacceptable loss or causing damage to enterprise reputation. The Group

has analysed the liability structure and duration on a regular basis, so as to ensure

sufficient fund. The management of the Group supervises the usage of the bank

loans and ensures to obey the loan agreement. Meanwhile, the Group will perform

financing negotiations with financial institutions to keep certain credit lines and

reduce liquidity risk.

Market risk

Market risk of financial instruments refers to the risk of fluctuation in fair

value or future cash flow of financial instruments due to market price development,

including interest rate risk, exchange rate risk and other price risks.

(1) Interest rate risk

Interest rate risk refers to the risk of fluctuation in fair value or future cash

flow of financial instruments due to the fluctuation in the market interest rate. The

interest rate risk of the Group comes from the interest-bearing debts, such as bank

loans and bonds payable. Due to financial liabilities with a floating interest rate, the

Notes to Financial Statement Page213

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Group faces cash flow interest rate risk; due to financial liabilities with a fixed

interest rate, the Group faces fair value interest rate risk. The Group determines the

ratio of fixed-rate and floating-rate instruments based on the market environment

and maintains an appropriate combination of fixed-rate and floating-rate

instruments through regular review and monitoring. The Group uses interest rate

swap instruments to hedge interest rate risk when necessary.

(2) Exchange rate risk

Exchange rate risk refers to the risk arising from the change of exchange rate

in the foreign currency business conducted by the Group. The foreign currency

exchange risk of the Group mainly comes from some borrowings and deposits of

GBP, THB, USD, EUR, and JPY. The Group pays close attention to the changes in

exchange rates in the international foreign exchange market and considers the

impact of exchange rates when financing foreign currency borrowings and

investing foreign currency deposits.The Group continually monitors the scale of

the foreign currency trading and the foreign currency assets and liabilities to

minimize the foreign exchange rate risks it faces.

The amounts of foreign-currency financial assets and foreign-currency

financial liabilities translated into RMB at the end of the period are presented

below:

Notes to Financial Statement Page214

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Item

USD

184,704,285.50

HKD

GBP

THB

INR

SGD

Total

Monetary fund

175,111,326.61

308,517,503.18

8,784,974.49

157,909.33

677,275,999.11

Derivative financial

assets

60,739,049.26

Accounts receivable

Other receivables

48,761,048.91

6,313,093.18

14,012,359.03

1,193,023.36

62,773,407.94

64,270,888.81

56,764,772.27

Long-term

receivables

5,867,718,122.67

1,287,454,356.63

7,155,172,479.30

Short-term borrowing

Accounts payable

Other payables

188,152,645.59

21,733,818.86

9,931,101.45

188,152,645.59

335,296,720.55

112,099,388.50

301,952,139.89

35,742,688.86

11,610,761.80

66,425,598.19

Non-current liabilities

due within one year

36,442,021.62

600,282.05

37,042,303.67

Long-term borrowing

6,936,522,433.09

2,288,143,446.40

9,224,665,879.49

Total

13,383,404,442.28

3,981,000,702.60

544,140,733.52

8,784,974.49

157,909.33

17,917,488,762.22

Notes to Financial Statement Page215

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

(3) Other price risk

For 5,642,900 shares of Yunwei Company held by the Group at the end of

year, the management layer believes that the market price risk of the these

investment activities are acceptable.

The equity investments of listed company held by the Group are presented as

follows:

Item

Trading financial assets

Total

Year-end balance

16,364,308.50

Beginning balance

17,831,453.40

On December 31, 2023, when all other variables keep unchanged, if the equity

instrument price rises or drops by 5%, then the Group will increase or decrease

new profit by RMB 818,200.00 Yuan. The management layer believes that 5% can

reasonably reflect the possible fluctuation range of the equity instrument in next

year.

Notes to Financial Statement Page216

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

(II)

Hedging business risk management

Disclosure of hedging item by hedge type and relevant qualitative and quantitative information on relevant hedging instrument and hedged

risk

（1）Cash flow hedge

Book value of hedging

instrument

Items

present

ed in

Change in fair

value of the

hedging

instrument

used as a basis

for

determining

the hedging

ineffectiveness

portion in this

year

Items

presented

in the

Amount

reclassifi

ed from

cash flow

hedge

reserve

into

current

profit

Change in fair

value of the

hedged item

used as a basis

for determining

the hedging

ineffectiveness

portion in this

year

Items

presented

in the

balance

sheet

containing

hedging

instrumen

Hedging

ineffectiv

eness

portion

charged

current

profit

and loss

the

Change in fair

value of hedging

instrument

charged to other

comprehensive

income

stateme

contain

ing

reclassi

fication

adjust

ment

income

Nominal amount

of hedging

instrument

Cash flow

hedge reserve

statement

containing

recognized

hedging

ineffectiven

ess portion

Liab

Asset

ility

and loss

Cash

flow

-87,782,320.70

509,726,716.67

60,739,049.26

-87,782,320.70

Notes to Financial Statement Page217

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

XI.

Disclosure of fair value

The input value used for measurement of fair value can be classified into three

levels:

The first-level input value means the unadjusted quoted price of same asset or

liability which is available in active market on the date of measurement.

The second-level input value means the observable input value of relevant asset or

liability except for the first-level input value.

The third-level input value means the unobservable input value of relevant asset or

liability.

The level of the fair value measurement result is dependent upon the lowest level of

the input value which is significant to measure the fair value.

(I)

Ending fair value of asset and liability measured at fair value

Ending fair value

Item

Level 1

measurement at

fair value

Level 2

measurement at

fair value

Level 3

measurement at

fair value

Total

I. Continuous fair value

measurement

Financial assets held for trading

Financial assets at FVTPL

199,158,207.76

77,103,357.76

199,158,207.76

77,103,357.76

(1) Debt instrument investment

(2) Equity instrument

investments

16,364,308.50

60,739,049.26

16,364,308.50

60,739,049.26

(3) Derivative financial assets

(4) Others

2. Designated financial assets at

FVTPL

122,054,850.00

(1) Debt instrument investment

(2) Others

122,054,850.00

95,367,401.48

122,054,850.00

253,528,231.18

Equity instrument investments

158,160,829.70

Notes to Financial Statement Page218

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Ending fair value

Item

Level 1

measurement at

fair value

Level 2

measurement at

fair value

Level 3

measurement at

fair value

Total

Total assets continuously

measured at fair value

294,525,609.24

158,160,829.70

452,686,438.94

(II)

Basis for determination of market prices of items subject to continuous and

non-continuous level 1 fair value measurement

5,642,865.00 Shares of SSE A-share ST Yunwei (security code: ST Yunwei 600725)

are held by the Company and the market price is based on the open price of the securities

market;

21,823,204.00 Shares of SSE Zhongmin Energy (security code: Zhongmin Energy

600163) are held by the Company and the market price is based on the open price of the

securities market.

(III)

(IV)

Valuation techniques and qualitative and quantitative information about key

parameters of items subject to continuous and non-continuous level 2 fair value

measurement

None.

Valuation techniques and qualitative and quantitative information about key

parameters of items subject to continuous and non-continuous level 3 fair value

measurement

Ending fair

value

Range interval

(weighted average)

Item

Valuation technique

Unobservable input values

Weighted average cost of

capitalt

7.84%-8.74%

Discounted cash

flow method

Long-term income growth

rate

Investment in other

equity instrumentst

253,528,231.18

Comparison

approach of listed

companies

Liquidity discount

27%

Notes to Financial Statement Page219

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

(V)

Information on adjustment between book value at the beginning of the year and book value at the end of the year of items subject to continuous

level 3 fair value measurement and sensitivity analysis of non-observable parameters

Profit or losses in the current year

Purchase, issuance, sales and settlement

For assets

held at the

end of the

report year,

unrealized

gains or

changes in

the current

year

Transfer

from

Level 3

Ending balance of

the previous year

Transfer

to Level 3

Item

Ending balance

Recognized in other

Recognized in

comprehensive

Purchase

Issuance

Sale

Settlement

profit or loss

income

included in

profit or

loss

Other equity

instrument

investment

277,677,276.23

-24,149,045.05

253,528,231.18

(VI)

Items measured by recurring fair value convert between levels in the current year

None.

(VII) Change of valuation techniques incurred in the current year and the reasons thereof

None.

(VIII) Assets and liabilities that are not measured at fair value but disclosed at fair value

None.

Notes to Financial Statement Page220

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

XII.

(I)

Related party and related party transaction

Controlling shareholder and ultimate controlling party

Unit: 10,000.00RMB

Shareholdi

Proportion

Name of controlling

shareholder and ultimate

controlling party

Registration

place

Registered

capital

(%) of voting

right to the

Company

Business nature

proportion

(%) to the

Company

State Development &

Investment Corp., Ltd.

Beijing

Investment

3,380,000.00

51.32

The ultimate controlling party of the Company is State-owned Assets Supervision and

Administration Commission of the State Council (SASAC).

(II)

Subsidiary company

See the Note “VIII. (I) 1. Composition enterprise group” for the subsidiary companies of

the Company.

(III)

Joint ventures and associates of the Company

For the important joint ventures or associates of this enterprise, see “Note VIII. (II) 1.

Important joint ventures or associates.

Other joint ventures or associates which have related-party transaction with the Company

in this year or previous year and generate balance:

Name of joint ventures or associates

Relationship with the Company

Inch Cape Offshore Limited Holdings

Joint ventures

Cloud Snurran AB Wind Farm

Joint ventures

Associates

SDIC Finance Co., Ltd.

Xiamen Haicang Thermal Energy Investment Co.,Ltd.

Jiangxi Ganneng Co., Ltd.

Lestari Listrik Pte.Ltd.

Tongshan Huarun Electric Power Co., Ltd.

Xuzhou Huarun Electric Power Co., Ltd.

Notes to Financial Statement Page221

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

(IV)

Details of other related parties

Relationship between other related party and the

Company

Name of other related parties

Shandong Special Equipment Inspection and Testing Group Co.,

Ltd.

Holding subsidiary of parent company

SDIC Zhonglu Fruit Juice Co., Ltd.

Holding subsidiary of parent company

Wholly-owned subsidiary of parent company

Holding subsidiary of parent company

Wholly-owned subsidiary of parent company

Other related relationship

China National Investment and Guaranty Corporation

Sdic Transportation Holdings Co., LTD

China Investment Consulting Co. LTD

SDIC Gaoxin Industrial Investment Co., Ltd.

Sdic Engineering Inspection and Testing Co., LTD

China Investment high-tech Industry Investment Co., LTD

Beijing Yahua Real Estate Development Co., Ltd.

SDIC Property Co., Ltd.

SDIC Asset Management Co., Ltd.

China Electronics Engineering Design Institute Co., Ltd.

SDIC Human Resource Service Co., Ltd.

SDIC Health Industrial Investment Co., Ltd.

Rongshi International Treasury Management Company Limited

SDIC International Trade Co., Ltd.

SDIC Inspection and Testing Certification Co., Ltd.

SDIC Mining Investment Co., Ltd.

SDIC Finance Lease Co., Ltd.

Xiamen Fuyun Information Technology Co., Ltd.

Zhongneng Integrated Intelligence Technology Co., Ltd.

Zhongmin Energy Co., Ltd.

Other related relationship

Tianjin Beiqing Power Intelligent Energy Co., Ltd.

Other related relationship

Notes to Financial Statement Page222

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

CNIC Corporation Limited

Other related relationship

Asia Hydria Pte.Ltd.

Other related relationship

Beijing Guozhi Yunding Technology Co., LTD

Rongshi International Holdings Limited

(V)

Related party transactions

Related-party transactions of purchase/sales of goods and rendering/receiving

of labour services

(1) Table for purchasing goods/receiving labor service

Amount in current

year

Amount in previous

year

Related party

Related party transaction

Technical service expense,

procurement of office

equipment

Beijing Guozhi Yunding Technology

Co., Ltd.

9,391,118.98

7,914,881.21

Xiamen Fuyun Information

Technology Co., Ltd.

Service expense

6,132.08

12,266,632.63

10,563,414.48

121,509.43

Xiamen Haicang Thermal Energy

Investment Co., Ltd.

Steam transmission expense

Depreciation cost

9,130,325.81

Beijing Yahua Real Estate

Development Co., Ltd.

SDIC Property Co., Ltd.

Property fee

6,297,228.65

20,886.78

5,106,426.05

13,392.42

SDIC Asset Management Co., Ltd.

Handling fee, labor service fee

China Electronics Engineering Design Report preparation expense,

1,813,424.53

1,974,907.01

1,471,698.12

2,119,654.85

Institute Co., Ltd.

technical service expense

SDIC Finance Co., Ltd.

Handling fee

SDIC Communication Holdings Co.,

Ltd

Port handling charge

243,778,343.18

203,761,838.22

Software procurement,

technical service fee,

consulting fee

SDIC Human Resource Service Co.,

Ltd.

8,386,398.62

688,072.88

7,787,811.84

130,075.85

Expense for software

procurement, product purchase

and party organization

SDIC Health Industrial Investment

Co., Ltd.

Notes to Financial Statement Page223

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Amount in current

year

Amount in previous

year

Related party

Related party transaction

Software procurement and

office equipment procurement

and leasing fee and service fee

SDIC Intelligence Technology Co.,

Ltd

16,790,833.08

6,474,498.08

286,337.30

Shandong Special Equipment

Inspection and Testing Group Co.,

Ltd.

Material expense, consulting

fee, inspection fee

390,572.07

Rongshi International Treasury

Management Company Limited

Financing fee, handling fee

4,368,954.00

10,257,113.86

120,106.19

Labor protection fee of

employee

SDIC International Trade Co., Ltd.

SDIC Inspection and Testing

Certification Co., Ltd.

Technical service expense

Commodity procurement

392,207.55

800.00

SDIC Zhonglu Fruit Juice Co., Ltd.

(2) Information on selling goods/providing labor service

Related party

transaction

Amount in current

year

Amount in previous

year

Related party

Management

advisory service

Jiangxi Ganneng Co., Ltd.

295,943.40

396,415.09

3,706,905.42

13,202,248.77

Xiamen Haicang Thermal Energy Investment

Co.,Ltd.

Heat sale

Power sale, port

handling charge

SDIC Communication Holdings Co., Ltd

15,453,488.10

Disposal of waste

and old materials

SDIC Mining Investment Co., Ltd.

SDIC Human Resource Service Co., Ltd.

Lestari Listrik Pte.Ltd.

7,546.90

2,830.19

Bidding agency

57,547.17

Management

advisory service

966,671.02

696,120.54

Entrusted

management

service

Cloud Snurran AB Wind Farm

1,375,723.74

SDIC Mining Investment Co., Ltd.

CDM transaction

23,234,622.65

Notes to Financial Statement Page224

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

entrusted

management/contracting

and

entrusting

management/outsourcing

Table for trustee management/contracting management of this company:

Valuation

Trusteeship

income/contracti

ng income

recognized in

this year

Name of

entrusting

party/contra party/contr

Name of

entrusted

basis of

trusteeship

income/contr

acting

Type of

entrusted/cont

racted asset

Entrusted/cont

racting

starting date

Entrusted/c

ontracting

end date

ct-out party

actor

income

Inch Cape

Offshore

Limited

Red Rock

Power

Limited

Trusteeship of

other assets

November 5,

2020

Negotiated

price

26,541,589.02

Holdings

Condition of related-party lease

The Company as lessor:

Type of leased

Rental income recognized

in this year

Rental income recognized

in previous year

Name of lessee

assets

State Development and Investment

Group Co., Ltd.

House use right

779,816.51

SDIC Communication Holdings Co.,

Ltd

Sea area use right,

land use right

1,111,829.76

Notes to Financial Statement Page225

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

The Company as lessee:

Amount in current year

Amount in previous year

Rental

Variable

lease

payment not

included in

lease liability

for

Rental

Variable

lease

payment not

included in

lease liability

for

expense of

simplified

short-term

lease and

low-value

asset lease

expense of

simplified

short-term

lease and

low-value

asset lease

Type of

leased assets

Interest

expenditure

of lease

Interest

expenditure

of lease

Name of lessor

Additional

right-of-use

asset

Additional

right-of-use

asset

Rental paid

liability

measurement

Beijing Yahua

Real Estate

Development

Co., Ltd.

Office

building and

furniture

leasing

40,904.88

10,915,498.16

154,871.53

36,435.01

11,592,085.80

31,041,318.06

566,645.26

SDIC Finance

Lease Co., Ltd.

Machine,

equipment

104,792,422.39 22,223,451.25

Notes to Financial Statement Page226

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Related party guarantees

(1) The Company as guarantor:

Unit: 10,000.00 RMB

Whether the

Amount of

Guaranteed party

Guarantee

starting date

Guarantee due

guarantee has

been performed

completely

guarantee

date

Inch Cape Offshore Limited

Holdings

2,260.28

2016/05/11

2064/10/10

Inch Cape Offshore Limited

Holdings

23,561.58

23,716.07

241,024.28

2022/09/26

2022/08/11

2023/03/24

2024/09/30

2024/09/24

2041/03/24

Benbrack Wind FarmLimited

PT NORTH SUMATERA

HYDRO ENERGY

（2）Subsidiaries of the Group as guarantor:

Unit: 10,000.00 RMB

Whether the

Amount of

Name of guaranteed party

guarantee

Guarantee

starting date

Guarantee

due date

guarantee has

been performed

completely

C&G Environment Protection (Thailand)

8,068.22

2021-08-09

2034-08-09

Company Limited

Newsky Energy (Bangkok) Company

5,971.70

Limited

Afton Wind Farm Limited

50,972.67

711.38

2019-05-02

2022-10-01

2034-05-01

2024-10-01

Aska Windfarm Holdings Limited

（3）Subsidiaries of the Group as guaranteed parties:

Unit:10,000.00 RMB

Amount of

guarantee

Guarantee

starting date

Guarantee due

date

Whether the guarantee is

performed completely

Name of guarantor

SDIC Finance Co., Ltd.

15,000.00

2022/10/26

2022/11/2

2022/11/3

2022/11/7

2024/3/16

500.00

4,000.00

160.00

2024/3/31

Notes to Financial Statement Page227

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Amount of

guarantee

Guarantee

starting date

Guarantee due

date

Whether the guarantee is

performed completely

Name of guarantor

SDIC Finance Co., Ltd.

2,000.00

2022/11/9

2022/11/11

2022/11/22

2022/11/23

2022/11/30

2022/12/12

2022/12/20

2023/2/17

2023/2/20

2023/6/29

2023/7/21

2023/8/28

2023/9/18

2023/9/21

2023/9/25

2023/9/28

2023/10/30

2023/11/15

2023/11/21

2023/11/22

2024/3/31

2024/4/1

80.00

340.00

700.00

2,400.00

3,000.00

200.00

500.00

32.00

2024/3/31

2025/4/30

2024/2/29

2024/1/31

2024/2/29

2024/4/1

360.00

420.00

800.00

80.00

2024/4/1

2024/3/31

2024/2/29

2024/3/31

2025/3/16

2025/4/30

2025/3/31

2025/3/1

100.00

2.00

6.45

20.00

5,000.00

100.00

4,800.00

4,500.00

200.00

1,600.00

300.00

2025/3/31

Notes to Financial Statement Page228

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Amount of

guarantee

Guarantee

starting date

Guarantee due

date

Whether the guarantee is

performed completely

Name of guarantor

SDIC Finance Co., Ltd.

180.00

2023/11/23

2023/11/24

2023/11/30

2023/12/1

2023/12/8

2023/12/12

2023/12/15

2023/12/27

2022/1/1

2025/3/31

2025/3/1

Yes

320.00

800.00

2025/3/16

2025/3/31

2025/6/30

2025/2/28

2025/6/30

2025/3/1

280.00

2,000.00

2,800.00

160.00

6,500.00

100.00

240.00

2025/3/1

500.00

2025/12/15

2027/7/31

2023/2/28

2023/3/31

2023/5/1

159.98

2,000.00

1,937.00

1,400.00

1,000.00

200.00

2021/12/30

2022/8/21

2021/8/21

2021/12/10

2021/11/25

2022/4/12

2023/5/1

2023/3/31

2023/2/28

2023/2/1

50.00

Related-party capital borrowing/lending

Unit: RMB

Related party

Borrowing/lending amount

Starting date

2023/9/6

Due date

Note

SDIC Finance Co., Ltd.

500,000,000.00

1,000,000,000.00

2024/9/6 Borrow

2024/9/20 Borrow

2023/12/26 Return

2023/9/20

2022/12/26

Notes to Financial Statement Page229

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Related party

Borrowing/lending amount

500,000,000.00

400,000,000.00

900,000,000.00

547,930,000.00

74,010,000.00

41,000,000.00

50,000,000.00

700,000,000.00

90,000,000.00

700,000,000.00

14,000,000.00

1,800,000.00

Starting date

2022/8/24

2022/12/23

2023/12/28

2010/10/8

2021/4/29

2022/1/29

2022/12/1

2023/3/27

2023/4/17

2022/10/21

2023/3/27

2023/4/17

2023/3/27

2023/4/17

2023/3/27

2023/4/17

2023/12/1

Due date

Note

SDIC Finance Co., Ltd.

2023/8/24 Return

2023/12/23 Return

2024/12/28 Borrow

2035/10/7 Borrow

2051/4/29 Borrow

2052/1/29 Borrow

2023/12/1 Return

2026/3/23 Borrow

2026/4/10 Borrow

2023/3/27 Return

2023/6/26 Return

2023/9/4 Return

2023/12/12 Return

2024/11/30 Borrow

SDIC Finance Co., Ltd.

SDIC Finance Lease Co., Ltd.

SDIC Finance Co., Ltd.

20,000,000.00

1,800,000.00

14,000,000.00

1,800,000.00

50,000,000.00

Rongshi International Treasury

Management Company Limited

187,691,550.00

174,851,322.90

2023/3/16

2020/3/20

2024/3/17 Borrow

2023/3/21 Return

Rongshi International Treasury

Management Company Limited

SDIC Finance Co., Ltd.

9,000,000.00

10,000,000.00

11,000,000.00

10,000,000.00

8,412,500.00

2023/3/16

2023/6/16

2023/6/21

2023/12/18

2023/3/20

2024/3/16 Borrow

2024/6/16 Borrow

2024/6/21 Borrow

2024/12/18 Borrow

2024/3/20 Borrow

Notes to Financial Statement Page230

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Related party

Borrowing/lending amount

6,587,500.00

Starting date

2023/6/20

2023/7/19

2023/9/19

2023/9/27

2023/10/19

2023/12/11

2023/12/26

2022/10/20

2020/7/31

2021/10/8

2022/12/23

2022/8/22

2023/4/28

2023/5/19

2023/7/20

2023/6/21

2022/9/28

2022/10/20

2023/8/7

Due date

Note

SDIC Finance Co., Ltd.

2024/6/20 Borrow

2024/7/19 Borrow

2024/9/19 Borrow

2024/9/27 Borrow

2024/10/19 Borrow

2024/12/11 Borrow

2024/12/26 Borrow

2025/10/20 Borrow

2025/7/31 Borrow

2024/10/8 Borrow

2025/12/23 Borrow

2023/8/22 Return

2026/4/28 Borrow

2026/7/20 Borrow

2024/6/21 Borrow

2023/11/1 Return

2023/8/21 Return

2023/10/30 Return

2027/5/30 Borrow

2037/12/8 Borrow

2024/7/25 Borrow

2024/9/6 Borrow

2024/9/14 Borrow

2024/10/19 Borrow

SDIC Finance Co., Ltd.

State Investment Finance Limited

SDIC Finance Co., Ltd.

SDIC Finance Lease Co., Ltd.

SDIC Finance Co., Ltd.

1,000,000.00

2,000,000.00

3,000,000.00

1,000,000.00

12,000,000.00

60,000,000.00

350,000,000.00

20,000,000.00

300,000,000.00

100,000,000.00

500,000,000.00

1,000,000,000.00

2,000,000,000.00

1,000,000,000.00

39,000,000.00

54,047,025.00

5,000,000.00

2023/10/16

2022/5/30

2022/12/8

2023/7/26

2023/9/7

1,000,000.00

2023/9/15

2023/10/20

10,000,000.00

Notes to Financial Statement Page231

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Related party

Borrowing/lending amount

5,000,000.00

Starting date

2023/11/28

2023/3/30

Due date

Note

SDIC Finance Co., Ltd.

2024/11/27 Borrow

2036/11/20 Borrow

2036/12/21 Borrow

2024/12/20 Borrow

2024/12/12 Borrow

2024/12/20 Borrow

SDIC Finance Co., Ltd.

26,000,000.00

11,000,000.00

8,000,000.00

2022/10/13

2023/3/24

21,000,000.00

43,000,000.00

18,000,000.00

53,000,000.00

2023/3/30

2023/12/21

2023/12/12

2023/12/21

Rongshi International Treasury

Management Company Limited

1,811,868,004.56

3,099,168,150.21

1,416,540,000.00

2022/4/20

2021/9/10

2022/4/6

2025/4/20 Borrow

2026/9/10 Borrow

2025/4/7 Borrow

Rongshi International Treasury

Management Company Limited

Rongshi International Treasury

Management Company Limited

SDIC Finance Co., Ltd.

245,000,000.00

180,500,000.00

23,000,000.00

5,000,000.00

30,000,000.00

27,000,000.00

29,000,000.00

111,000,000.00

3,000,000.00

6,000,000.00

5,000,000.00

500,000.00

2020/6/17

2022/5/6

2024/7/28 Borrow

2027/4/15 Borrow

2024/3/16 Borrow

2024/4/17 Borrow

2024/5/5 Borrow

2024/6/15 Borrow

2024/8/31 Borrow

2024/11/7 Borrow

2023/9/17 Return

2023/11/6 Return

2023/11/30 Return

2023/5/15 Return

2023/11/15 Return

2023/3/17 Return

2023/3/16

2023/4/17

2023/5/5

2023/6/15

2023/8/31

2023/11/7

2020/9/17

2020/11/6

2020/11/30

2022/5/6

500,000.00

2022/5/6

14,000,000.00

2022/3/17

Notes to Financial Statement Page232

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Related party

Borrowing/lending amount

3,000,000.00

Starting date

2022/4/18

2022/5/6

Due date

Note

SDIC Finance Co., Ltd.

2023/4/18 Return

2023/5/6 Return

SDIC Finance Co., Ltd.

34,000,000.00

23,000,000.00

26,000,000.00

134,000,000.00

72,000,000.00

41,000,000.00

147,500,000.00

20,000,000.00

64,000,000.00

115,000,000.00

3,000,000.00

2022/6/16

2022/9/19

2022/11/7

2022/12/23

2022/9/27

2022/10/26

2022/11/22

2022/12/21

2022/12/23

2023/2/28

2023/3/15

2023/3/17

2023/3/30

2023/8/10

2022/9/27

2022/10/26

2022/11/28

2023/12/23

2022/11/23

2023/10/17

2023/11/17

2023/3/17

2023/6/26

2023/9/26

2023/6/16 Return

2023/9/19 Return

2023/11/7 Return

2023/12/23 Return

2023/9/27 Return

2023/10/26 Return

2023/11/22 Return

2023/12/21 Return

2023/12/23 Return

2024/2/28 Borrow

2024/3/15 Borrow

2024/3/17 Borrow

2024/3/30 Borrow

2024/8/10 Borrow

2023/9/27 Return

2023/10/26 Return

2023/11/28 Return

2024/12/23 Borrow

2041/9/13 Borrow

2041/9/30 Borrow

2024/3/17 Borrow

2024/6/26 Borrow

2038/3/1 Borrow

31,000,000.00

2,000,000.00

20,000,000.00

5,000,000.00

64,000,000.00

100,000,000.00

13,000,000.00

10,000,000.00

23,670,000.00

6,600,000.00

4,400,000.00

1,500,000.00

9,600,000.00

64,000,000.00

Notes to Financial Statement Page233

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Related party

Borrowing/lending amount

38,000,000.00

7,000,000.00

65,600,000.00

5,000,000.00

20,000,000.00

40,000,000.00

5,000,000.00

10,000,000.00

145,000,000.00

53,000,000.00

100,000,000.00

2,500,000.00

1,750,000.00

2,000,000.00

7,000,000.00

2,000,000.00

1,000,000.00

5,500,000.00

2,000,000.00

2,500,000.00

71,300.00

Starting date

2023/11/17

2023/11/24

2023/12/11

2023/6/15

2023/9/14

2023/10/13

2023/11/17

2023/11/22

2023/12/15

2022/12/22

2023/3/16

2022/3/18

2022/5/18

2022/6/17

2022/9/20

2022/10/28

2022/11/18

2022/12/20

2023/3/16

2021/7/27

2023/3/16

2021/7/27

2023/3/16

Due date

Note

SDIC Finance Co., Ltd.

2024/8/31 Borrow

2041/10/18 Borrow

2024/6/15 Borrow

2024/9/14 Borrow

2024/10/13 Borrow

2024/11/17 Borrow

2024/11/22 Borrow

2024/12/15 Borrow

2023/12/21 Return

2024/3/15 Borrow

2036/5/20 Borrow

2023/3/17 Return

2023/5/17 Return

2023/6/16 Return

2023/9/19 Return

2023/10/27 Return

2023/11/17 Return

2023/12/19 Return

2024/3/15 Borrow

2023/5/19 Return

2023/11/19 Return

SDIC Finance Co., Ltd.

State Investment Finance Limited

SDIC Finance Co., Ltd.

54,250.00

71,300.00

54,250.00

Notes to Financial Statement Page234

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Related party

Borrowing/lending amount

6,000,000.00

Starting date

2022/8/15

2022/10/31

2022/12/9

2023/3/24

2023/11/30

2023/7/29

2023/9/22

2023/11/21

2022/10/20

2022/5/24

2022/5/27

2022/6/17

2017/6/7

Due date

Note

SDIC Finance Co., Ltd.

2023/3/30 Return

2023/6/23 Return

2023/8/24 Return

2023/12/21 Return

2023/6/24 Return

2024/3/24 Borrow

2024/11/30 Borrow

2043/7/29 Borrow

2043/9/22 Borrow

2043/11/21 Borrow

2023/2/17 Return

2023/3/21 Return

2023/5/24 Return

2023/5/27 Return

2023/6/17 Return

2023/5/25 Return

2023/11/24 Return

2024/5/24 Borrow

2024/6/16 Borrow

2024/11/16 Borrow

2023/3/31 Return

2023/12/21 Return

2023/12/25 Return

SDIC Finance Co., Ltd.

State Investment Finance Limited

SDIC Finance Co., Ltd.

State Investment Finance Limited

SDIC Finance Co., Ltd.

6,000,000.00

3,000,000.00

1,000,000.00

100,000,000.00

300,000,000.00

130,000,000.00

400,000,000.00

10,000,000.00

60,000,000.00

261,000,000.00

58,000,000.00

12,000,000.00

13,000,000.00

3,000,000.00

10,000,000.00

7,426,250.00

11,915,000.00

17,000,000.00

8,000,000.00

2017/6/7

2023/5/24

2023/6/16

2023/11/16

2022/8/15

2022/8/8

12,000,000.00

3,000,000.00

1,000,000.00

2022/11/11

2023/7/19

1,000,000.00

Notes to Financial Statement Page235

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Related party

Borrowing/lending amount

2,000,000.00

9,640,837.23

1,300,000.00

1,000,000.00

6,000,000.00

1,000,000.00

7,000,000.00

1,000,000.00

3,000,000.00

7,000,000.00

6,000,000.00

10,000,000.00

82,000,000.00

3,000,000.00

63,000,000.00

7,000,000.00

3,500,000.00

6,000,000.00

10,000,000.00

54,000,000.00

28,000,000.00

6,000,000.00

Starting date

2023/6/15

2023/6/30

2023/7/19

2023/9/21

2023/10/24

2023/11/16

2023/12/21

2022/8/30

2022/9/23

2023/6/21

2023/10/13

2023/12/21

2022/3/17

2022/3/29

2021/5/11

2022/5/24

2022/6/14

2022/7/15

2022/9/19

2022/12/16

2023/3/17

2023/3/29

2023/5/10

2023/5/24

Due date

Note

SDIC Finance Co., Ltd.

2024/6/15 Borrow

2030/6/30 Borrow

2030/7/19 Borrow

2024/9/21 Borrow

2024/10/24 Borrow

2024/11/16 Borrow

2026/12/21 Borrow

2023/2/21 Return

2023/12/21 Return

2024/6/21 Borrow

2024/10/13 Borrow

2024/12/21 Borrow

2023/3/17 Return

2023/3/29 Return

2023/5/11 Return

2023/5/24 Return

2023/6/14 Return

2023/7/15 Return

2023/9/19 Return

2023/12/16 Return

2024/3/17 Borrow

2024/3/29 Borrow

2024/5/10 Borrow

2024/5/24 Borrow

SDIC Finance Co., Ltd.

State Investment Finance Limited

SDIC Finance Co., Ltd.

Notes to Financial Statement Page236

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Related party

Borrowing/lending amount

2,000,000.00

63,000,000.00

7,000,000.00

60,500,000.00

1,000,000.00

4,000,000.00

15,000,000.00

23,920,000.00

8,000,000.00

9,000,000.00

1,656,847.00

25,850,160.10

2,000,000.00

220,000,000.00

10,000,000.00

500,000.00

Starting date

2023/5/31

2023/6/14

2023/6/21

2023/7/14

2022/12/27

2023/12/28

2020/12/18

2023/11/3

2023/11/6

2023/12/20

2023/12/26

2020/7/2

Due date

Note

SDIC Finance Co., Ltd.

2024/5/31 Borrow

2024/6/14 Borrow

2024/6/21 Borrow

2024/7/14 Borrow

2023/12/27 Return

2024/12/28 Borrow

2023/12/17 Return

2024/9/30 Borrow

2023/3/7 Return

SDIC Finance Co., Ltd.

State Investment Finance Limited

SDIC Finance Co., Ltd.

State Investment Finance Limited

SDIC Finance Co., Ltd.

2022/6/24

2023/11/8

2022/8/12

2022/7/25

2022/12/20

2023/9/20

2022/7/25

2023/1/10 Return

2023/5/15 Return

2023/11/15 Return

2024/11/8 Borrow

2032/8/12 Borrow

2032/7/25 Borrow

2023/12/20 Return

2026/9/20 Borrow

2032/7/25 Borrow

500,000.00

25,000,000.00

3,000,000.00

5,000,000.00

1,000,000.00

15,000,000.00

10,000,000.00

18,000,000.00

Notes to Financial Statement Page237

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Related party

Borrowing/lending amount

12,000,000.00

5,000,000.00

Starting date

2022/8/12

2022/4/22

2022/6/30

2022/9/21

2022/12/30

2023/4/24

2023/5/26

2023/7/17

2016/12/27

2022/11/18

2023/5/15

2023/2/28

2023/5/15

2023/6/27

2023/9/27

2023/2/16

2023/3/3

Due date

Note

SDIC Finance Co., Ltd.

2032/8/12 Borrow

2023/4/22 Return

2023/5/26 Return

2023/7/11 Return

2024/4/24 Borrow

2026/5/26 Borrow

2024/7/17 Borrow

2023/11/15 Return

2023/11/18 Return

2024/5/14 Borrow

2024/2/28 Borrow

2024/5/14 Borrow

2024/6/27 Borrow

2024/9/27 Borrow

2024/2/16 Borrow

2024/3/3 Borrow

2024/8/29 Borrow

2024/9/21 Borrow

2024/11/29 Borrow

2024/12/14 Borrow

2023/1/6 Return

SDIC Finance Co., Ltd.

1,000,000.00

40,000,000.00

110,000,000.00

2,000,000.00

38,000,000.00

110,000,000.00

2,000,000.00

2,996,776.36

16,000,000.00

10,000,000.00

30,000,000.00

10,000,000.00

27,000,000.00

29,000,000.00

47,000,000.00

84,000,000.00

9,000,000.00

1,000,000.00

2023/8/29

2023/9/21

2023/11/29

2023/12/14

2022/6/20

2022/3/18

91,500,000.00

370,000,000.00

100,000,000.00

7,000,000.00

5,000,000.00

2023/3/17 Return

Notes to Financial Statement Page238

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Related party

Borrowing/lending amount

2,000,000.00

11,000,000.00

3,000,000.00

13,000,000.00

6,000,000.00

500,000.00

Starting date

2022/4/27

2022/5/24

2022/5/21

2022/11/21

2023/3/20

2023/4/6

Due date

Note

SDIC Finance Co., Ltd.

2023/4/7 Return

SDIC Finance Co., Ltd.

State Investment Finance Limited

SDIC Finance Co., Ltd.

2023/5/20 Return

2023/11/20 Return

2024/3/20 Borrow

2024/4/6 Borrow

2024/5/19 Borrow

2024/6/19 Borrow

2024/5/18 Borrow

2024/11/16 Borrow

2024/12/19 Borrow

2037/11/15 Borrow

2041/11/29 Borrow

2023/12/12 Return

2023/7/30 Return

2025/12/30 Borrow

2024/6/30 Borrow

2038/5/29 Borrow

2038/12/15 Borrow

2023/4/8 Return

2023/5/19

2023/6/19

2023/5/18

2023/11/16

2023/12/19

2023/9/27

2023/9/22

2022/12/12

2022/7/21

2023/3/15

2023/7/31

2023/5/29

2023/12/15

2022/4/8

40,000,000.00

15,000,000.00

5,000,000.00

3,000,000.00

12,000,000.00

60,000,000.00

9,000,000.00

30,000,000.00

14,000,000.00

8,100,000.00

8,000,000.00

12,000,000.00

6,000,000.00

13,000,000.00

6,000,000.00

13,000,000.00

5,000,000.00

2022/6/20

2022/6/27

2022/9/1

2023/6/20 Return

2023/6/27 Return

2023/9/1 Return

2022/9/19

2022/10/13

2023/9/19 Return

2023/10/13 Return

Notes to Financial Statement Page239

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Related party

Borrowing/lending amount

12,000,000.00

48,000,000.00

5,000,000.00

10,000,000.00

5,000,000.00

13,000,000.00

8,000,000.00

7,000,000.00

48,000,000.00

8,000,000.00

845,000.00

Starting date

2022/11/3

2022/11/14

2023/3/17

2023/4/7

Due date

Note

SDIC Finance Co., Ltd.

2023/11/3 Return

2023/11/14 Return

2024/3/17 Borrow

2024/4/7 Borrow

2024/6/26 Borrow

2024/8/31 Borrow

2024/9/1 Borrow

2024/11/2 Borrow

2024/11/13 Borrow

2024/12/21 Borrow

2031/6/13 Borrow

2023/10/15 Return

2024/3/17 Borrow

2024/5/4 Borrow

2024/10/26 Borrow

2024/12/21 Borrow

2023/5/5 Return

SDIC Finance Co., Ltd.

State Investment Finance Limited

SDIC Finance Co., Ltd.

State Investment Finance Limited

SDIC Finance Co., Ltd.

2023/6/26

2023/8/31

2023/9/1

2023/11/2

2023/11/13

2023/12/21

2016/8/10

2016/8/23

2016/10/18

2016/11/25

2017/5/11

2017/9/27

2017/8/7

874,000.00

1,105,000.00

1,185,000.00

665,000.00

756,000.00

8,150,000.00

4,000,000.00

21,000,000.00

18,000,000.00

6,000,000.00

26,000,000.00

8,000,000.00

18,000,000.00

5,839,300.00

2,000,000.00

2023/3/17

2023/5/4

2023/10/26

2023/12/21

2022/5/5

2022/10/27

2022/11/1

2016/12/19

2023/3/17

2023/10/27 Return

2023/11/1 Return

2031/12/16 Borrow

2024/3/17 Borrow

Notes to Financial Statement Page240

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Related party

Borrowing/lending amount

12,000,000.00

4,000,000.00

1,800,000.00

600,000.00

Starting date

2023/8/31

2023/12/21

2023/1/6

Due date

Note

SDIC Finance Co., Ltd.

2024/8/31 Borrow

2024/12/21 Borrow

2024/1/5 Borrow

2024/3/16 Borrow

2024/6/19 Borrow

2033/12/9 Borrow

2030/12/15 Borrow

2023/8/26 Return

2023/9/17 Return

2023/10/20 Return

2024/8/16 Borrow

2023/4/27 Return

2023/12/23 Return

2024/4/27 Borrow

2024/8/25 Borrow

2024/9/15 Borrow

2024/10/20 Borrow

2024/10/27 Borrow

2024/12/20 Borrow

2024/8/8 Borrow

2024/9/27 Borrow

2024/12/8 Borrow

2024/12/14 Borrow

2024/12/20 Borrow

2024/12/22 Borrow

SDIC Finance Co., Ltd.

State Investment Finance Limited

SDIC Finance Co., Ltd.

2023/3/17

2023/6/20

2021/12/22

2023/12/20

2022/12/15

2020/8/26

2020/9/17

2020/10/20

2021/8/16

2022/4/27

2022/12/23

2023/4/27

2023/8/25

2023/9/15

2023/10/20

2023/10/27

2023/12/20

2023/8/8

800,000.00

55,000,000.00

27,000,000.00

150,000,000.00

4,000,000.00

21,000,000.00

45,000,000.00

25,000,000.00

10,000,000.00

4,000,000.00

22,000,000.00

4,000,000.00

20,000,000.00

45,000,000.00

16,000,000.00

4,000,000.00

127,000,000.00

92,000,000.00

1,500,000.00

2,000,000.00

1,400,000.00

1,100,000.00

2023/9/27

2023/12/8

2023/12/14

2023/12/20

2023/12/22

Notes to Financial Statement Page241

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Related party

Borrowing/lending amount

27,000,000.00

Starting date

2023/12/28

2023/5/29

Due date

Note

SDIC Finance Co., Ltd.

2024/12/28 Borrow

2024/5/29 Borrow

2024/9/25 Borrow

2024/12/22 Borrow

SDIC Finance Co., Ltd.

36,000,000.00

14,000,000.00

2023/9/25

30,000,000.00

2023/12/22

Notes to Financial Statement Page242

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Compensation for key managerial personnel

Unit: 10,000.00 RMB

Item

Amount in current year

Amount in previous year

Total compensation

981.02

1,576.21

(VI)

Outstanding items of related parties including receivables and payables

Item receivable

Ending balance

Beginning balance

Name of

item

Provision for bad

debt

Related party

Provision for

bad debt

Book balance

Monetary

Fund

SDIC Finance Co., Ltd

10,072,035,357.52

4,156,590.15

9,789,384,653.39

4,739,692.44

Rongshi International

Treasury Management

Company Limited

Accounts

receivable

SDIC Communication

Holdings Co., Ltd

575,663.76

508,511.82

59,686.62

Lestari Listrik Pte.Ltd.

Advances to

suppliers

SDIC Communication

Holdings Co., Ltd

1,008,000.00

4,170,054.32

8,140.00

Rongshi International

Treasury Management

Company Limited

SDIC Asset Management Co.,

Ltd.

Other

receivables

Notes to Financial Statement Page244

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Ending balance

Beginning balance

Name of

Provision for bad

debt

Related party

item

Provision for

Book balance

bad debt

China National Investment

Consultation Co., Ltd

20,000.00

40,235.37

11,659,666.29

223,306.73

Inch Cape Offshore Limited

Holdings

6,056,334.72

132,542.53

4,941.04

15,117.35

Cloud Snurran AB Wind

Farm

980.81

289.60

Long-term

receivables

Lestari Listrik Pte.Ltd.

340,103,824.39

129,694,899.90

337,482,598.54

260,227,573.99

Cloud Snurran AB Wind

Farm

569,495.17

713,100.37

Inch Cape Offshore Limited

Holdings

1,163,437,650.24

5,108,698.34

626,542,647.34

1,716,911.50

Dividends

receivable

China Resources

68,827,513.15

53,771,631.92

Power(Tongshan)Co.,Ltd.

China Resources

Power(Xuzhou)Co.,Ltd.

Item payable

Last year-end book

Name of item

Related party

Ending book balance

balance

Short-term

borrowing

Rongshi International Treasury

Management Company Limited

187,691,552.61

760,673,050.10

SDIC Finance Co., Ltd.

6,315,372,541.05

4,502,544,271.44

Accounts payable

Notes to Financial Statement Page245

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Last year-end book

balance

Name of item

Related party

Ending book balance

Beijing Guozhi Yunding Technology Co.,

Ltd.

874,769.73

436,914.55

6,132.08

1,690,412.71

603,835.71

121,509.43

SDIC Intelligence Technology Co., Ltd

Xiamen Fuyun Information Technology

Co., Ltd.

Xiamen Haicang Thermal Energy

Investment Co.,Ltd.

1,813,560.00

35,732,280.04

931,620.00

21,137,103.20

101,110.00

SDIC Communication Holdings Co., Ltd

Zhongneng Integrated Intelligence

Technology Co., Ltd.

SDIC Engineering Inspection and Testing

Co., Ltd.

48,000.00

Other payables

Beijing Guozhi Yunding Technology Co.,

Ltd.

471,423.00

839,622.64

3,465.00

1,258,221.50

1,410,754.72

China National Investment Consultation

Co., Ltd

Shandong Special Equipment Inspection

and Testing Group Co., Ltd.

Zhongneng Integrated Intelligence

Technology Co., Ltd.

64,416.00

7,412,833.95

286,510.50

SDIC Gaoxin Industrial Investment Co.,

Ltd.

Rongshi International Treasury

Management Company Limited

286,510.50

Tianjin Beiqing Power Intelligent Energy

Co., Ltd.

1,000,000.00

SDIC Finance Lease Co., Ltd.

701,599,094.44

13,345.50

SDIC Intelligence Technology Co., Ltd

13,834.95

Long-term payable

SDIC Finance Lease Co., Ltd

1,045,924,143.35

337,878,994.74

Long-term

borrowing

Notes to Financial Statement Page246

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Last year-end book

balance

Name of item

Related party

Ending book balance

4,563,976,277.07

6,327,576,154.77

SDIC Finance Co., Ltd

4,077,565,925.83

6,095,970,021.84

Rongshi International Treasury

Management Company Limited

Non-current

liabilities due

within one year

SDIC Finance Co., Ltd.

365,257,465.72

20,043,662.05

286,831,706.83

174,380,452.06

19,560,080.88

Rongshi International Treasury

Management Company Limited

SDIC Finance Lease Co., Ltd.

Other non-current

liabilities

CNIC Corporation Limited

Asia Hydria Pte.Ltd.

227,718,672.92

139,610,215.38

195,307,119.83

144,343,284.39

XIII. Promise and contingent item

(I) Important commitments

Unit: 10,000.00 RMB

Whether the

guarantee has

beenperformed

completely

Guarantee

starting

date

Guaranteed

Amount of

guarantee

Guarantee

due date

Guarantee

method

Guarantor

party

Inch Cape

Offshore

Limited

SDIC Power Holdings Co.,

Ltd.

Credit

guarantee

2,260.28 2016/5/11

23,561.58 2022/9/26

2064/10/10

2024/9/30

Holdings

Inch Cape

Offshore

Limited

SDIC Power Holdings Co.,

Ltd.

Credit

guarantee

Benbrack

Wind

FarmLimited

SDIC Power Holdings Co.,

Ltd.

Credit

guarantee

23,716.07 2022/8/11

241,024.28 2023/3/24

2024/9/24

2041/3/24

PT NORTH

SUMATERA

HYDRO

SDIC Power Holdings Co.,

Ltd.

Credit

guarantee

ENERGY

Notes to Financial Statement Page247

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Whether the

guarantee has

beenperformed

completely

Guarantee

starting

date

Guaranteed

party

Amount of

guarantee

Guarantee

due date

Guarantee

method

Guarantor

C&G

Environment

Protection

(Thailand)

Company

Limited

Xiamen Newsky Energy

Environmental Technology

Co., Ltd.

Other

guarantee

8,068.22 2021/8/9

2034/8/9

Newsky

Energy

(Bangkok)

Company

Limited

Xiamen Newsky Energy

Environmental Technology

Co., Ltd.

Other

guarantee

5,971.70 2021/8/9

Afton Wind

Farm Limited

Pledge

guarantee

Red Rock Power Limited

50,972.67 2019/5/2

711.38 2022/10/1

2034/5/1

Aska

Windfarm

Holdings

Limited

Credit

guarantee

2024/10/1

Apart from the above, as at 31 December 2023, the Group has no other commitments that

should be disclosed.

(II)

Contingent item

None.

XIV. Item after the balance sheet date

(I)

Important non-adjusted item

None.

(II)

Conditions of profit distribution

Profits or dividends to be distributed

3,688,328,163.56

Note: The profit distribution proposal for the year 2023 considered and approved at the

27th meeting of the 12th session of the Board of Directors of the Group: the Board of

Directors of the Company proposed to distribute a cash dividend of RMB0.4948

(inclusive of tax) per share on the basis of the total share capital of 7,454,179,797 shares

as at the end of the year 2023, totaling a cash dividend of RMB3,688,328,163.56 for the

year 2023, which represented approximately 55% of the net profit attributable to the

shareholders of the listed company of that year, which resolution is pending consideration

Notes to Financial Statement Page248

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

and approval by the shareholders at the general meeting of the Company.

(III)

Description on the item after the balance sheet date

None.

XV.

(I)

Notes to main items in financial statement of the company

Other receivables

Item

Ending balance

Beginning balance

Interest receivable

Dividends receivable

Other receivables

319,722,449.37

261,680,251.50

233,889,453.05

553,611,902.42

217,713,959.46

479,394,210.96

Total

Dividends receivable

(1) List of dividends receivable

Item (or invested entity)

Ending balance

Beginning balance

Including: SDIC Gansu Xiaosanxia Power Co.,

Ltd.

105,006,423.07

108,311,947.55

1,069,158.88

29,700,000.00

SDIC Gansu Power Sales Co., Ltd.

Jiangsu Tiansai New Energy Development Co.,

Ltd.

55,239,955.15

Xiangshui Hengneng Solar Power Co., Ltd.

Xiangshui Yongneng Solar Power Co., Ltd.

Zhangjiakou Jinko New Energy Co., Ltd.

Hengfeng Jinko Electric Power Co., Ltd.

53,530,676.41

35,177,305.49

10,927,339.64

59,840,749.61

Including: Tongshan Huarun Electric Power

Co., Ltd.

68,827,513.15

Xuzhou Huarun Electric Power Co., Ltd.

53,771,631.92

Total

319,722,449.37

261,680,251.50

Notes to Financial Statement Page249

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

(2) Important dividends receivable with aging more than one year

Impairment (if any)

and its judgment

basis

Item (or invested

entity)

Reason for recovering

failure

Ending balance

Aging

Jiangsu Tiansai

New Energy

Development Co.,

Ltd.

29,700,000.00

1~2 years

Undistributed

Total

29,700,000.00

Other receivables

(1) Disclosure by aging

Aging

Ending balance

Beginning balance

Within 1 year

Among them: within 1 year

1~6 months

14,744,122.03

141,817,678.41

14,117,669.59

626,452.44

1,590,878.41

140,226,800.00

141,817,678.41

1,011,503.31

7~12 months

Subtotal (within one year)

1~2 years

14,744,122.03

140,230,800.00

646,415.39

2~3 years

3~4 years

34,212,124.25

14,305,774.28

26,651,841.82

217,998,922.07

4~5 years

34,459,707.96

44,114,542.16

234,195,587.54

More than 5 years

Toal

（2）Classification as per nature

Nature of amount

Ending book balance

Beginning book balance

Security deposit

173,460,000.00

171,000,000.00

647,055.39

Deposit

589,215.39

Notes to Financial Statement Page250

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Reserve

1,344,697.44

47,574,250.12

11,227,424.59

234,195,587.54

998,887.92

44,169,740.35

1,183,238.41

Transaction payments

Others

Total

217,998,922.07

(3) Provision for bad debt

First stage

Second stage

Third stage

Expected credit

loss within entire

life (without credit

impairment)

Expected credit

loss within entire

life (with credit

impairment)

Provision for bad debt

Total

Expected credit

loss in future 12

months

Beginning balance

284,962.61

Beginning balance in in this

year

--Transferred to the second

stage

--Transferred to the third stage

--Carried back to the second

stage

--Carried back to the first

stage

Accrued in this year

Carried back in this year

Written off in this year

21,171.88

Canceled after verification in

this year

Other changes

Ending balance

306,134.49

Notes to Financial Statement Page251

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

(4) Provision for bad debt

Change in this year

Beginning

Write-off or

Category

Ending

balance

Recovered

balance

cancellation

Other

changes

Accrued

or carried

back

after

verification

Other receivables

with provision for

expected credit

loss on an

284,962.61

21,171.88

306,134.49

individual basis

Total

284,962.61

21,171.88

306,134.49

(5) Top five other receivables which are classified as per borrower

Ending

balance of

provision for

bad debt

Proportion in

total ending

balance of

other accounts

receivable (%)

Name of unit

Ending balance

Nature

Aging

Finance Bureau

of Quanzhou

County

Performance

bond

90,000,000.00

38.43

21.35

1~2 years

117,645.70

65,358.72

People’s

Government of

Anren County

Performance

bond

50,000,000.00

4~5 years:

3,459,707.96

Yuan, more than

5 years:

44,114,542.16

Yuan

Redrock

Investment Co.,

Ltd

Collection and

payment for

others

47,574,250.12

30,000,000.00

20.31

12.81

62,187.86

39,215.23

Energy Bureau of

Hanggin Banner

Performance

bond

4~5 years

PT North

Sumatera Hydro

Energy

11,113,949.59

4.75

Guarantee fee

Within 1 year

14,527.87

Total

228,688,199.71

97.65

298,935.38

Notes to Financial Statement Page252

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

(II)

Long-term equity investment

Ending balance

Beginning balance

Item

Impairment

reserve

Impairment

reserve

Book balance

Book value

Book balance

Book value

Investment

45,796,204,189.83

42,245,632,311.79

subsidiary

companies

Investment

in joint and

associates

4,723,408,110.71

4,266,773,461.22

Total

50,519,612,300.54

46,512,405,773.01

Notes to Financial Statement Page253

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Investment in subsidiary companies

Impairment

reserve accrued in

this year

Ending balance

of impairment

reserve

Invested entity

Beginning balance

Increase in this year

Decrease in this year

Ending balance

Aksay Kazakh Autonomous County

Huidong New Energy Co., Ltd.

150,000,000.00

100,000,000.00

40,525,809.69

150,000,000.00

Ceheng Huifeng New Energy Co., Ltd.

100,000,000.00

Changzhou Tiansui New Energy Co.,

Ltd.

40,525,809.69

155,580,000.00

63,000,000.00

Dingbian Angli Photovoltaic Technology

Co., Ltd.

155,580,000.00

63,000,000.00

Guyuan Guanghui New Energy Power

Co., Ltd.

Guiding Guoneng New Energy Co., Ltd.

SDIC (Erdos City) New Energy Co., Ltd.

10,500,000.00

175,000,000.00

11,000,000.00

25,000,000.00

21,500,000.00

200,000,000.00

SDIC (Guangdong) Offshore Wind

Power Development Co., Ltd.

10,200,000.00

90,000,000.00

65,000,000.00

15,300,000.00

34,000,000.00

25,500,000.00

124,000,000.00

65,000,000.00

SDIC (Hainan) New Energy Co., Ltd.

SDIC (Hunan Anren) Pumped Storage

Co., Ltd.

Notes to Financial Statement Page254

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

SDIC Aksay New Energy Co., Ltd.

2,275,000.00

50,000,000.00

2,275,000.00

50,000,000.00

SDIC Kingrock Overseas Investment

Management Co., Ltd.

SDIC Gansu Power Sales Co., Ltd.

71,500,000.00

657,470,034.43

71,500,000.00

657,470,034.43

SDIC Gansu Xiaosanxia Power Co., Ltd.

SDIC Guangxi New Energy

Development Co., Ltd.

30,000,000.00

SDIC Guizhou New Energy Co., Ltd.

SDIC Hebei New Energy Co., Ltd.

SDIC Huanneng Electric Power Co.,Ltd.

15,000,000.00

20,000,000.00

413,000,000.00

15,000,000.00

20,000,000.00

533,000,000.00

120,000,000.00

40,000,000.00

SDIC Jilin Dunhua Pumped Storage Co.,

Ltd.

49,800,000.00

127,500,000.00

89,800,000.00

127,500,000.00

SDIC Jineng (Zhoushan) Gas Power

Generation Co., Ltd.

SDIC Jiangsu New Energy Co., Ltd.

SDIC Jiuquan New Energy Co., Ltd.

20,000,000.00

44,780,000.00

20,000,000.00

44,780,000.00

SDIC Inner Mongolia New Energy

Development Co., Ltd.

10,000,000.00

283,794,500.00

SDIC Panjiang Electric Power Co., Ltd.

283,794,500.00

Notes to Financial Statement Page255

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

SDIC Qinzhou Second Electric Power

Co., Ltd.

630,000,000.00

1,353,960,836.59

50,000,000.00

270,000,000.00

900,000,000.00

1,353,960,836.59

50,000,000.00

SDIC Qinzhou Electric Power Co., Ltd.

SDIC Shanxi Hejin Pumped Storage Co.,

Ltd.

SDIC Shaanxi New Energy Co., Ltd.

SDIC Shiyan New Energy Co., Ltd.

7,000,000.00

20,450,000.00

7,000,000.00

20,450,000.00

SDIC Tibet Nyima New Energy Co.,

Ltd.

45,800,000.00

94,000,000.00

45,800,000.00

SDIC Tibet Renbu New Energy Co., Ltd.

SDIC Tibet New Energy Co., Ltd.

SDIC Xinjiang New Energy Co., Ltd.

SDIC New Energy (Honghe) Co., Ltd.

SDIC New Energy Investment Co., Ltd.

SDIC New Energy Co., Ltd.

94,000,000.00

5,000,000.00

20,000,000.00

702,000,000.00

353,996,878.04

722,000,000.00

539,678,000.00

2,171,255,773.92

20,000,000.00

539,678,000.00

1,817,258,895.88

20,000,000.00

SDIC Genting Meizhouwan Electric

Power Company Limited

1,637,490,000.00

2,716,163,606.65

1,637,490,000.00

2,716,163,606.65

SDIC Yunnan Dachaoshan Hydropower

Co., Ltd.

Notes to Financial Statement Page256

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

SDIC Yunnan New Energy Technology

8,000,000.00

Co., Ltd.

8,000,000.00

20,000,000.00

127,800,000.00

SDIC Zhejiang New Energy Co., Ltd.

20,000,000.00

Hainan Dongfang Gaopai Wind Power

Co., Ltd.

127,800,000.00

Hengfeng Jinko Electric Power Co., Ltd.

Redrock Investment Co., Ltd

158,400,000.00

1,358,786,331.45

Huzhou Xianghui Photovoltaic Power

Co., Ltd.

177,000,000.00

40,000,000.00

150,905,682.40

Huaning Ganrun New Energy Co., Ltd.

40,000,000.00

Jiangsu Tiansai New Energy

Development Co., Ltd.

150,905,682.40

82,000,000.00

Jingbian Zhiguang New Energy

Development Co., Ltd.

82,000,000.00

48,450,000.00

179,700,000.00

Kunming Dongchuan Ganrun New

Energy Co., Ltd.

48,450,000.00

179,700,000.00

Ningxiang Gushanfeng New Energy

Development Co., Ltd.

Pingtang Yueyang New Energy Co., Ltd.

Pingyang Aoqi New Energy Co., Ltd.

167,500,000.00

60,600,000.00

12,000,000.00

228,100,000.00

12,000,000.00

Notes to Financial Statement Page257

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Pubei Yuanli New Energy Co., Ltd.

90,700,000.00

6,375,000.00

Pubei Yuansheng New Energy Co., Ltd

6,375,000.00

Xiamen Huaxia International Power

Development Co., Ltd.

662,562,474.52

45,500,000.00

125,500,000.00

Shangyi Ruida New Energy Co., Ltd.

45,500,000.00

30,500,000.00

Shenyang Jingbu Photovoltaic Power

Co., Ltd.

95,000,000.00

5,100,000.00

Tianjin Baodi Huifeng New Energy Co.,

Ltd.

14,790,000.00

10,000,000.00

19,890,000.00

10,000,000.00

Tianjin Binhai Guoli New Energy Co.,

Ltd.

Tianjin SDIC Jinneng Electric Power

Co., Ltd.

2,389,990,905.46

446,732,488.20

438,000,000.00

2,389,990,905.46

446,732,488.20

438,000,000.00

Toksun Trina Solar Energy Co., Ltd.

Xiangshui Hengneng Solar Power Co.,

Ltd.

Xiangshui Yongneng Solar Power Co.,

Ltd.

100,000,000.00

4.60

100,000,000.00

4.60

Jaderock Investment Singapore Pte Ltd

Yalong River Hydropower Development

Co., Ltd.

24,063,077,741.92

1,040,000,000.00

25,103,077,741.92

Notes to Financial Statement Page258

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Yancheng Zhihui Energy Power Co.,

Ltd.

16,200,000.00

Yangquan Guoli New Energy Co., Ltd.

Yuxi Ganrun New Energy Co., Ltd.

Yuanjiang Ganrun New Energy Co., Ltd.

Yunxian Ganrun New Energy Co., Ltd.

Zhangjiakou Jinko New Energy Co., Ltd.

Total

35,950,000.00

10,000,000.00

126,000,000.00

181,460,000.00

60,000,000.00

264,100,000.00

40,000,000.00

186,000,000.00

445,560,000.00

40,000,000.00

42,245,632,311.79

3,700,571,878.04

150,000,000.00

45,796,204,189.83

Investment in joint ventures and associates

Increase/decrease in this year

Beginning

balance of

impairment

reserve

Ending

balance of

impairment

reserve

Beginning

balance

Investment

profit or loss

recognized by

equity method

Adjustment of

other

Invested entity

Ending balance

Cash dividend

Additional

investment

Negative

Change of

Impairment

reserve

or profit to be

distributed

Other

investment

comprehensive

income

other equity

1. Associates

Jiangxi Ganneng

Co., Ltd.

1,915,593,150.78

194,003,466.13

304,907.83

289,571.42

2,110,191,096.16

Notes to Financial Statement Page259

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Increase/decrease in this year

Adjustment of

Beginning

Ending

balance of

impairment

reserve

Beginning

balance

balance of

impairment

reserve

Investment

profit or loss

recognized by

equity method

Invested entity

Ending balance

Cash dividend

or profit to be

distributed

Additional

investment

Negative

other

comprehensive

income

Change of

Impairment

reserve

Other

investment

other equity

Jiangyin Ligang

Power Stock Co.,

Ltd

247,093,832.50

239,943,703.30

55,822,352.66

5,701,316.41

302,916,185.16

245,645,019.71

Jiangsu Ligang

Electric Power

Co., Ltd.

Tongshan Huarun

Electric Power

Co., Ltd.

374,628,925.32

112,506,584.64

98,280.00

2,621,818.28

489,855,608.24

Xuzhou Huarun

Electric Power

Co., Ltd.

134,406,433.64

1,296,086,762.28

16,290,653.40

-43,092,886.75

115,750,789.57

-450,830.40

122,400.00

332,845.01

2,406,134.71

-1,128,493.57

93,842,081.60

1,396,518,708.23

15,839,823.00

Hanlan

Environment Co.,

Ltd.

14,523,195.06

Hainan Holdings

Intelligent Energy

Co., Ltd.

Notes to Financial Statement Page260

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Increase/decrease in this year

Adjustment of

Beginning

Ending

balance of

impairment

reserve

Beginning

balance

balance of

impairment

reserve

Investment

profit or loss

recognized by

equity method

Invested entity

Ending balance

Cash dividend

or profit to be

distributed

Additional

investment

Negative

other

comprehensive

income

Change of

Impairment

reserve

Other

investment

other equity

Liaoning Dalian

Pumped Storage

Co., Ltd.

42,730,000.00

20,300,000.00

570,000.00

63,030,000.00

569,588.61

Jiangxi Enpu

Energy

-411.39

Technology Co.,

Ltd.

Capstone Energy

(Yunnan) Co.,

Ltd.

5,000,000.00

Subtotal

Total

4,266,773,461.22

25,870,000.00

440,240,380.87

858,432.84

4,189,030.84

14,523,195.06

4,723,408,110.71

Notes to Financial Statement Page261

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

(III)

Operating income and operating cost

Details of operating income and operating cost

Amount in current year

Item

Amount in previous year

Revenue

Cost

Revenue

Cost

Other business

10,484,858.09

Total

Operating income

Item

Total

Amount in current year

Amount in previous year

Guarantee fee

10,484,858.09

(IV)

Income from investment

Amount in previous

Item

Amount in current year

3,460,538,700.38

year

Income from long-term equity investment accounted by cost

method

2,897,756,720.55

Income from long-term equity investment accounted by equity

method

440,240,380.87

3,171,371.62

Income from disposal of long-term equity investment

29,000,000.00

4,737,316.07

32,565,138.59

2,341,628.15

Dividend income from other equity instrument in holding period

Other

42,316,893.19

3,976,833,290.51

30,476,157.34

2,966,311,016.25

Total

Notes to Financial Statement Page262

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

XVI. Additional information

(一)

List of current non-recurring gains and losses

Item

Amount

Note

Profit and loss from the disposal of non-current assets, including the write-off with

provision for asset impairment

-1,068,584.39

Government subsidies charged to current profit and loss, except for those which are

closely related to the normal business of the Company, conform to appropriate

national regulations, are entitled according to established standard, and have

continuous influence on the profit and loss of the Company

38,292,270.80

-1,467,144.90

Gain or loss from the change in fair value of financial asset and liability held by

non-financial enterprise and gain or loss from the disposal of financial asset and

liability, except for the effective hedging business in relation to the normal business

of the Company

Other non-operating income and expenditure than above items

157,914,192.79

283,231.06

Other profit and loss items conforming with the definition of non-recurring profits

and losses

Subtotal

193,953,965.36

4,309,590.28

Influence on income tax

Influence on minority equity (after tax)

Total

74,085,962.59

115,558,412.49

(I)

Return on equity (ROE) and earnings per share (EPS)

EPS (Yuan)

Weighted average ROE

Profit in report year

(%)

Basic EPS

0.8754

Diluted EPS

Net profit attributable to the ordinary

12.78

0.8754

shareholders of this company

Net profit attributable to the ordinary

shareholders of this company after deduction of

non-recurring profits and losses

12.55

0.8599

(II)

Relevant additional information on accounting policy change

According to the Interpretation No.16 of Accounting Standards for Business

Enterprise, the Company changes relevant accounting policy and makes retroactive

restatement for the comparative financial statement. After the restatement, the

consolidated balance sheets at the beginning and end of last year are as follows:

Notes to Financial Statement Page263

Notes to the Financial Statements of SDIC Power Holdings Co., Ltd.

From January 1, 2023 to December 31, 2023

(Monetary unit for the notes to these Financial Statements is RMB unless otherwise stated)

Item

Last year-beginning balance

Beginning balance

Ending balance

Current assets:

Monetary capital

Trading financial asset

Derivative financial asset

Notes receivable

8,886,552,236.85

111,358,657.80

11,638,780,970.46

131,151,803.40

77,790,465.98

11,358,005,093.47

138,419,158.50

60,739,049.26

84,700,844.78

9,583,126,556.34

197,671,484.08

424,328,429.43

371,152,162.76

1,269,923,038.19

915,801.32

44,062,537.46

7,204,974.86

Accounts receivable

Receivables financing

Advance payment

Other receivables

8,971,517,786.07

98,893,922.83

14,033,136,252.79

186,787,695.81

699,509,981.74

1,217,472,605.40

304,765,057.14

899,490,994.15

1,296,496,367.94

Inventory

Contract asset

Other current assets

Total current assets

Non-current assets:

Long-term receivables

Long-term equity investment

767,090,755.42

21,696,819,966.97

255,798,428.32

674,848,082.64

23,321,766,197.47

28,773,105,030.75

3,350,198,626.93

9,337,640,073.49

4,955,753,141.51

9,760,470,905.45

7,155,172,479.30

10,141,575,279.16

Other

investment

equity

instrument

359,118,398.35

277,677,276.23

253,528,231.18

Investment property

Fixed asset

110,076,983.78

184,311,618,978.46

11,224,884,489.88

416,016,183.59

115,440,759.56

194,485,222,141.09

12,333,411,257.55

676,747,771.25

107,783,999.19

198,111,219,600.76

17,298,211,260.83

1,186,192,604.70

6,116,195,397.07

163,915.09

Construction in progress

Right-of-use asset

Intangible asset

5,588,340,596.35

27,993,349.73

5,665,249,840.13

12,662,022.14

Development expenditure

Goodwill

109,022,138.90

108,253,630.99

146,292,117.53

Long-term prepaid expenses

Deferred income tax asset

Other non-current assets

Total non-current assets

Total assets

142,687,169.90

141,554,284.68

116,472,600.57

987,207,299.26

1,055,347,099.07

5,389,962,051.42

234,977,752,181.07

258,299,518,378.54

1,040,561,531.93

6,916,547,028.26

248,589,916,045.57

277,363,021,076.32

3,785,733,907.17

219,750,538,195.79

241,447,358,162.76

Current liabilities:

Short-term borrowing

Derivative financial liability

Notes payable

8,590,709,276.38

17,008,949.15

1,126,798,345.56

3,605,482,885.02

6,959,179.48

11,298,824,403.10

9,412,127,723.77

460,532,777.04

4,087,055,216.02

5,052,769.73

1,123,317,749.75

5,294,950,957.69

5,815,676.05

Accounts payable

Accounts received in advance

Contract liability

5,079,920.49

3,838,526.48

7,987,340.42

Employee

payable

compensation

103,677,731.80

146,331,074.86

206,447,038.10

Tax payable

1,040,067,870.48

10,045,919,782.48

1,345,838,878.87

16,964,952,414.46

1,316,221,394.05

16,049,482,453.77

Other payables

Non-current

within one year

liabilities

due

9,931,099,825.26

10,449,495,439.90

12,394,106,853.32

Notes to Financial Statement Page264