Huadian Power International : ANNUAL RESULTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020

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Huadian Power International Corporation Limited*

(A Sino-foreign investment joint stock company limited by shares incorporated in the People's Republic of China (the "PRC"))

(Stock code: 1071)

ANNUAL RESULTS FOR THE FINANCIAL

YEAR ENDED 31 DECEMBER 2020

The board of directors (the "Board") of Huadian Power International Corporation Limited (the "Company") hereby announces the consolidated results of the Company and its subsidiaries (the "Group") for the financial year ended 31 December 2020 extracted from the audited consolidated financial statements of the Group prepared in accordance with the International Financial Reporting Standards.

FINANCIAL AND BUSINESS SUMMARY

• • Power generation by the Group in 2020 amounted to 207.32 million MWh, representing a decrease of 3.62% over 2019; the volume of on-grid power sold amounted to 194.55 million MWh, representing a decrease of 3.42% over 2019;

• • Turnover of the Group in 2020 amounted to approximately RMB89,382 million, representing a decrease of approximately 2.58% over 2019;

• • Profit for the year attributable to equity holders of the Company in 2020 amounted to approximately RMB4,167 million, representing an increase of approximately 23.08% over 2019; profit for the year attributable to equity shareholders of the Company amounted to approximately RMB3,249 million;

• • Basic earnings per share in 2020 were approximately RMB0.329, and the Board proposes to declare a final cash dividend of RMB0.25 per share (tax inclusive, based on the total share capital of 9,862,976,653 shares) for the financial year ended 31 December 2020, totaling approximately RMB2,465.744 million (tax inclusive). The dividend distribution proposal is subject to the approval by the shareholders at the upcoming 2020 annual general meeting (such date has not been determined but will be published by the Company in due course).

STATUTORY SURPLUS RESERVE

According to the Company's articles of association (the "Articles of Association"), the Company is required to transfer at least 10% (at the discretion of the Board) of its profit after tax, as determined under the PRC accounting rules and regulations, to its statutory surplus reserve until the surplus reserve balance reaches 50% of its registered capital. The transfer to the statutory surplus reserve must be made before the distribution of dividend to shareholders. The statutory surplus reserve can be used to make up losses (if any) of the previous year and may be converted into share capital by issuance of new shares to shareholders in proportion to their existing shareholdings or by increasing the par value of the shares currently held by them, provided that the balance after the issuance of new shares is not less than 25% of the registered share capital. On 30 March 2021, the Board resolved to transfer 10% of the annual profit after tax as determined under the PRC accounting rules and regulations, amounting to RMB430,478,000 (2019: RMB233,333,000), to the statutory surplus reserve.

DIVIDENDS

Pursuant to a resolution passed at the Board meeting held on 30 March 2021, the Board of the Company proposes to declare a final cash dividend of RMB0.25 per share (tax inclusive, based on the total share capital of 9,862,976,653 shares) for the financial year ended 31 December 2020, totaling approximately RMB2,465.744 million (tax inclusive). The dividend distribution proposal is subject to approval by the shareholders at the upcoming 2020 annual general meeting. The notice of the 2020 annual general meeting of the Company, containing details of the period of the closure and procedures of the register of members, will be published and despatched to shareholders of the Company in due course.

If the above proposal for dividend distribution is considered and approved at the upcoming 2020 annual general meeting, the Company expects to distribute such cash dividends on or before 27

August 2021.

THE GROUP'S MAJOR EXISTING ASSETS

The Group is one of the largest comprehensive energy companies in the PRC, primarily engaged in the construction and operation of power plants, including large-scale efficient coal- or gas-fired generating units and various renewable energy projects. The Group's power generating assets are located in 14 provinces, autonomous regions and municipalities across the PRC at the prime location, mainly in the electricity and heat load centres or regions with abundant coal resources.

As at the date of this announcement, the Group had a total of 67 controlled power plants which have commenced operations involving a total of approximately 58,448 MW controlled installed capacity, with a total of 43,160 MW attributable to coal-fired generating units, approximately 7,340 MW attributable to gas-fired generating units and approximately 7,948 MW attributable to renewable energy generating units such as hydropower, wind power and solar power generating units. The details are as follows:

• (1) Details of controlled coal- and gas-fired generating units are as follows:

  Name of power plant/company

• 1 Zouxian Plant

• 2 Shiliquan Plant

• 3 Laicheng Plant

• 4 Shuozhou Thermal Power Branch Company

• 5 Fengjie Plant

• 6 Shenzhen Company

• Equity interest held

  Installed by thecapacity CompanyGenerating units

  (MW)

  2,575

  100%

  1 x 635MW

  • + 1 x 600MW

    2,120

    100%

  • + 4 x 335MW 2 x 660MW

  • + 2 x 330MW

  • + 1 x 140MW

    1,200

    100% 100% 100% 100%

    4 x 300MW

    700

    2 x 350MW

    1,200

    2 x 600MW

    365

    1 x 120MW + 2 x 82MW + 1 x 81MW

• 7 Huadian Zouxian Power Generation

  Company Limited ("Zouxian Company")

• 8 Huadian Laizhou Power Generation

  Company Limited ("Laizhou Company")

  2,000

  • 69% 2 x 1,000MW

    4,001.1

  • 75% 4 x 1,000MW + 1.1MW

• 9 Huadian Weifang Power Generation

  Company Limited ("Weifang Company")

  2,002.4

  45%

  2 x 670MW + 2 x 330MW + 2.4MW

• 10 Huadian Qingdao Power Generation

Company Limited ("Qingdao Company")

1,220

55%

1 x 320MW + 3 x 300MW

Name of power plant/company

• 11 Huadian Zibo Thermal Power

  Company Limited ("Zibo Company")

• 12 Huadian Zhangqiu Power Generation

  Company Limited ("Zhangqiu Company")

• 13 Huadian Tengzhou Xinyuan Thermal Power

  Company Limited ("Tengzhou Company")

• 14 Hudian Longkou Power Generation

  Company Limited ("Longkou Company")

• 15 Huadian Ningxia Lingwu Power Generation

  Company Limited ("Ningxia Lingwu")

  Installed capacityEquity interest held by the Company

  Generating units

  (MW)

  950

  100%

  2 x 330MW

  925

  87.5%

  • + 2 x 145MW 1 x 335MW

  • + 1 x 300MW

    930

    93.26%

  • + 2 x 145MW 2 x 315MW

    880

    84.31%

  • + 2 x 150MW 4 x 220MW

  3,320

  • 65% 2 x 1,060MW + 2 x 600MW

• 16 Sichuan Guang'an Power Generation

  Company Limited ("Guang'an Company")

  2,400

  80%

  2 x 600MW + 4 x 300MW

• 17 Huadian Xinxiang Power Generation

  Company Limited ("Xinxiang Company")

• 18 Huadian Luohe Power Generation

  Company Limited ("Luohe Company")

• 19 Huadian Qudong Power Generation

  Company Limited ("Qudong Company")

• 20 Anhui Huadian Suzhou Power Generation

Company Limited ("Suzhou Company")

1,320

90%

• 2 x 660MW

  660

  75%

• 2 x 330MW

  660

  90%

• 2 x 330MW

  1,260

  56.07%

• 2 x 630MW

Name of power plant/company

• 21 Anhui Huadian Wuhu Power Generation

  Company Limited ("Wuhu Company")

  Installed capacityEquity interest held by the Company

  Generating units

  (MW)

  2,320

  • 65% 1 x 1,000MW + 2 x 660MW

• 22 Anhui Huadian Lu'an Power Generation

  Company Limited ("Lu'an Company")

• 23 Hangzhou Huadian Banshan Power

  Generation Company Limited

  ("Hangzhou Banshan Company")

  1,320

  95%

  • 2 x 660MW

    2,415.7

    64%

  • 3 x 415MW + 3 x 390MW + 0.7MW

• 24 Hangzhou Huadian Xiasha Thermal Power

  Company Limited ("Xiasha Company")

  246

  56%

  • 1 x 88MW + 2 x 79MW

• 25 Hangzhou Huadian Jiangdong

  Thermal Power Company Limited

  ("Jiangdong Company")

• 26 Huadian Zhejiang Longyou Thermal Power

  Company Limited ("Longyou Company")

  960.5

  • 70% 2 x 480.25MW

    427

  • 100% 2 x 127.6MW + 1 x 130.3MW + 1 x 19.5MW + 22MW

• 27 Hebei Huadian Shijiazhuang

  Thermal Power Company Limited

  ("Shijiazhuang Thermal

  Power Company")

• 28 Hebei Huadian Shijiazhuang Yuhua

  Thermal Power Company Limited

  ("Yuhua Company")

• 29 Hebei Huadian Shijiazhuang Luhua

  Thermal Power Company Limited

  ("Luhua Company")

• 30 Shijiazhuang Huadian Heat

Corporation Limited

("Shijiazhuang Heat Corporation")

928.6

• 82% 1 x 453.6MW + 2 x 200MW + 3 x 25MW

600

100%

2 x 300MW

660

90%

2 x 330MW

12.55

100%

2 x 2MW + 2 x 4.275MW

Installed capacityEquity interest held by the

Name of power plant/company

• 31 Shaoguan City Pingshi Electric Power Plant

  Company Limited (Plant B)

  ("Pingshi Power Company")

• 32 Guangdong Huadian Shaoguan

  Thermal Power Company Limited

  ("Shaoguan Thermal Power Company")

• 33 Huadian Foshan Energy Company Limited

  ("Foshan Energy Company")

• 34 Huadian Guangdong Shunde Energy

  Company Limited

  ("Shunde Energy Company")

• 35 Tianjin Huadian Fuyuan Thermal Power

  Company Limited

  ("Fuyuan Thermal Power Company")

• 36 Tianjin Huadian Nanjiang Thermal Power

  Company Limited

  ("Nanjiang Thermal Power Company")

• 37 Huadian Hubei Power Generation

Company Limited ("Hubei Company") (note)

CompanyGenerating units

(MW)

600

100%

2 x 300MW

700

100%

2 x 350MW

165.5

163.5

100%

90%

2 x 59MW + 47.5MW 2 x 59MW + 45.5MW

400

63.14%

2 x 200MW

930

65%

2 x 315MW + 1 x 300MW

6,944.4

82.56%

2 x 680MW

• + 2 x 660MW

• + 2 x 640MW

• + 6 x 330MW

• + 1 x 300MW

  + 40 x 2MW

  + 254.4MW

• + 2 x 185MW

Note:Details of the installed generating units of Hubei Company are as follows:

Power generation enterprise

Huadian Hubei Power Generation Company Limited

Huangshi Thermal Power Plant

("Huangshi Thermal Power Plant")

Hubei Xisaishan Power Generation Company Limited

("Xisaishan Company")

Hubei Huadian Xisaishan Power Generation

Company Limited ("Huadian Xisaishan Company")

Hubei Huadian Xiangyang Power Generation

Company Limited ("Xiangyang Company")

Shareholding percentage

Installed of HubeicapacityCompanyGenerating units

(MW)

330

100%

1 x 330MW

660

50%

2 x 330MW

1,360

50%

2 x 680MW

2,570

60.10%

2 x 640MW + 3 x 330MW + 1 x 300MW

Hubei Huadian Jiangling Power Generation

Company Limited ("Jiangling Company")

Hubei Huadian Wuchang Thermal Power

Company Limited ("Wuchang Thermal Power")

Hubei Huadian Wuxue New Energy Company Limited

("Wuxue New Energy Company")

1,320

100%

2 x 660MW

370

100%

2 x 185MW

120

100%

40 x 2MW + 40MW

Hubei Huadian Zaoyang Photovoltaic Power Generation

Company Limited ("Zaoyang Photovoltaic

Power Generation Company")

Hubei Huadian Suixian Yindian Photovoltaic Power

Generation Company Limited ("Suixian Photovoltaic Power Generation Company")

Huadian Hubei Power Generation Company Limited

Huangshi Photovoltaic Power Generation

Branch Company ("Huangshi Photovoltaic Power Generation Company")

Huadian Hubei Power Generation Company Limited

Wuhan Photovoltaic Power Generation

Branch Company ("Wuhan Photovoltaic Power Generation Company")

100

100% 100MW

100

100% 100MW

6.4

100% 6.4MW

8

100% 8MW

• (2) Details of controlled renewable energy generating units are as follows:

  Name of power plant/company

• 1 Sichuan Huadian Luding Hydropower

  Company Limited

  ("Luding Hydropower Company")

• 2 Sichuan Huadian Za-gunao Hydroelectric

  Development Company Limited ("Za-gunao Hydroelectric Company")

• 3 Lixian Xinghe Power Company Limited

  ("Lixian Company")

• 4 Sichuan Liangshan Shuiluohe Hydropower

  Development Company Limited

  ("Shuiluohe Company")

• 5 Hebei Huadian Complex Pumping-storage

  Hydropower Company Limited ("Hebei Hydropower Company")

• 6 Inner Mongolia Huadian Mengdong Energy

  Company Limited

  ("Mengdong Energy Company")

• 7 Huadian Kezuozhongqi Wind Power

  Company Limited ("Kezuozhongqi Wind Power Company")

• 8 Huadian Power International Ningxia

  New Energy Power Company Limited ("Ningxia New Energy Company")

• 9 Huadian Wengniuteqi Wind Power

Company Limited

("Wengniuteqi Wind Power Company")

• Equity interest held Installed by the

  capacity CompanyGenerating units

  (MW)

  920

  100%

  4 x 230MW

  591

  64%

  3 x 65MW

  • + 3 x 56MW

  • + 3 x 46MW

    67

    100%

  • + 3 x 30MW 3 x 11MW

    648

    57%

  • + 4 x 8.5MW 3 x 70MW

  • + 3 x 62MW

  • + 3 x 46MW

  • + 3 x 38MW

    83.4

    100%

    1 x 16MW

  • + 2 x 15MW

  • + 1 x 11MW

  • + 2 x 3.2MW

  399

  54.85%

  + 20MW 262 x 1.5MW + 2 x 3MW

  49.5

  100%

  33 x 1.5MW

  1,541.6

  63.92%

  24 x 2.5MW

  + 40 x 2.1MW

  + 155 x 2MW

  + 665 x 1.5MW

  49.5

  100%

  + 90.01MW 24 x 2MW + 3.2MW

Name of power plant/company

• 10 Hebei Huadian Guyuan Wind Power

  Company Limited

  ("Guyuan Wind Power Company")

• 11 Hebei Huadian Kangbao Wind Power

  Company Limited

  ("Kangbao Wind Power Company")Installed capacityEquity interest held by the Company

  Generating units

  (MW)

  290.5

  61.87%

  167 x 1.5MW + 40MW

  699.5

  100%

  72 x 2MW + 137 x 1.5MW + 140 x 2.5MW + 30MW

• 13 Huadian Laizhou Wind Power

• 12 Hebei Huarui Energy Group

  Corporation Limited ("Huarui Company")

• Company Limited

  ("Laizhou Wind Power Company")

• 14 Huadian Laizhou Wind Power Generation

  Company Limited

  ("Laizhou Wind Company")

• 15 Huadian Laizhou Wind Energy Power

  Company Limited

  ("Laizhou Wind Energy Company")

• 16 Huadian Longkou Wind Power

  Company Limited

  ("Longkou Wind Power Company")

• 17 Longkou Dongyi Wind Power

  Company Limited ("Longkou Dongyi

  Wind Power Company")

• 18 Huadian Shandong New Energy

Company Limited

("Shandong New Energy Company")

40.5

99

100%

55%

48 x 2MW + 2 x 1.5MW 27 x 1.5MW

48

55%

24 x 2MW

149.4

55%

72 x 2MW + 3 x 1.8MW

99.3

65%

23 x 1.5MW

• + 6 x 2.5MW

• + 24 x 2MW

  80

  55%

• + 1 x 1.8MW 20 x 1.5MW + 25 x 2MW

663

100%

238 x 2MW

+ 3 x 1.9MW

+ 1 x 1.8MW

+ 33 x 1.5MW

+ 130MW

Name of power plant/company

• 19 Huadian Xuwen Wind Power

  Company Limited ("Xuwen Wind Power Company")

  Installed capacityEquity interest held by the Company

  Generating units

  (MW)

  198

  100%

  51 x 2MW + 32 x 3MW

• 20 Huadian Xiaxian Wind Power

  Company Limited ("Xiaxian Wind Power Company")

• 21 Zezhou County Huadian Wind Power

  Company Limited

  ("Zezhou Wind Power Company")

  100

  100%

  50 x 2MW

  197.7

  100%

  40 x 2.2MW + 5 x 2MW + 39 x 2.5MW

• 22 Shanxi Huadian Pinglu New Energy

  Company Limited

  ("Pinglu New Energy Company")

• 23 Shanxi Huadian Ying County New Energy

  Company Limited ("Ying County New

  Energy Company")

• 24 Huadian Henan New Energy Power

  Generation Company Limited

  ("Henan New Energy Power

  Generation Company")

• 25 Shaanxi Huadian Xunyi Wind Power

  Company Limited

  ("Xunyi Wind Power Company")

• 26 Huadian Ningxia Ningdong Shangde Solar

  Power Company Limited

  ("Shangde Solar Company")

• 27 Huadian Zhangjiakou Saibei New Energy

  Generation Company Limited

  ("Zhangjiakou Saibei

  New Energy Company")

• 28 Huadian Ningbo New Energy Generation

Company Limited

("Ningbo New Energy Company")

99.2

100%

31 x 3.2MW

50

100%

11 x 4MW + 2 x 3MW

40

100%

16 x 2.5MW

50

100%

23 x 2.2MW

10

60% 10MW

4

100% 4MW

10

100% 10MW

Name of power plant/companyInstalled capacityEquity interest held by the Company

Generating units

(MW)

• 29 Huadian Huzhou New Energy Power

  30

  100% 30MW

  Generation Company Limited ("Huzhou New Energy Company")

• 30 Huadian Taiqian Photovoltaic Power

100

50% 100MW

Generation Company Limited ("Taiqian Photovoltaic

Power Generation Company")

BUSINESS REVIEW

• (1) Power Generation

  As at 31 December 2020, the Group's total controlled installed capacity amounted to 57,699.3 MW. Power generation of the Group in 2020 amounted to 207.32 million MWh, representing a decrease of approximately 3.62% over the same period of last year; the volume of on-grid power sold amounted to 194.56 million MWh, representing a decrease of approximately 3.42% over the same period of last year. The annual utilization hours of the Group's generating units were 3,644 hours, representing a year-on-year decrease of 333 hours, among which the utilization hours of coal-fired generating units were 4,041 hours, representing a year-on-year decrease of 470 hours. The coal consumption for power supply was 290.4g/ KWh in aggregate, representing a year-on-year decrease of 4.88g/KWh.

• (2) Turnover

  In 2020, the Group's turnover amounted to approximately RMB89,382 million, representing a decrease of approximately 2.58% over 2019; revenue generated from sale of electricity amounted to approximately RMB70,185 million, representing a decrease of approximately 4.12% over 2019; revenue generated from sale of heat amounted to approximately RMB6,656 million, representing an increase of approximately 16.56% over 2019; revenue from sale of coal amounted to approximately RMB12,541 million, representing a decrease of approximately 2.35% over 2019.

• (3) Profit

  In 2020, the Group's operating profit amounted to approximately RMB8,790 million, representing an increase of approximately 6.99% over 2019, mainly due to the year-on-year decrease in coal prices. For the year ended 31 December 2020, the profit for the year attributable to equity holders of the Company amounted to approximately RMB4,167 million, the profit for the year attributable to equity shareholders of the Company amounted to approximately RMB3,249 million, and the basic earnings per share were approximately RMB0.329.

(4)The Capacity of Newly-added Generating Units

From 1 January 2020 to the date of this announcement, the details of the Group's newly-added generating units are as follows:

Gas-fired Gas-fired

Hydropower

• (5) Installed Capacity of Shutdown Generating Unit:

  From 1 January 2020 to the date of this announcement, the Group's shutdown generating unit is as follows:

  Project

  CategoryCapacity

  (MW)

  Shijiazhuang Thermal Power Company

  Coal-fired 75

  Total 75

• (6) Generating Units under Construction:

  As at the date of this announcement, the Group's major generating units under construction are as follows:

  Planned
  installed
  capacity
  Type of generating units	(MW)
  Coal-fired generating unit	1,830
  Gas-fired generating unit	247.2
  Hydropower generating unit	168
  Wind power generating unit	320
  Photovoltaic generating unit	10
  Total	2,575.2

  The Group will manage the construction and the pace of commencing operation of its projects in accordance with the national and local energy policies, the conditions of the power market and the Group's overall strategy.

BUSINESS OUTLOOK

• (1) Competition and Development Trend of the Industry

  In 2021, one of the major goals of economic development in China is to increase its GDP by more than 6% year-on-year, heading towards a high quality development stage from a rapidly growing stage. The supply and demand of energy power exhibit a new trait. With the proposal of peak carbon dioxide emissions and carbon neutrality targets, transformation of energy consumption is imminent. Interactive energy facilities, such as distributed energy, storage, are developing rapidly and various forms of new energy, such as multi-energy supply, integrated service and intelligent energy consumption, are emerging. The integrated development of energy revolution and digital revolution has become an important trend in the new round of energy revolution.

  According to the forecast of the National Energy Administration, the installed capacity of generating units in China will be approximately 3.0 billion kW by the end of 14th Five-Year Plan and power consumption of the entire society in 2025 will reach 9,100-9,500 billion KWh, representing an average year-on-year increase of 4.3%-5.2%. There is a huge room for the development of energy and power demand in China and the power industry will embrace new development opportunities.

  According to the forecast of China Electricity Council, the installed capacity of new generating units in national infrastructure in 2021 will be approximately 180 million kW, of which the installed capacity of approximately 140 million kW will be generated from non-fossil energy, and at the end of the year, the installed capacity of generating units in China will be approximately 2.37 billion kW, representing a year-on-year increase of approximately 7.7%, and the proportion of installed capacity generated from non-fossil energy will continue to rise. Throughout the year, it is expected that there will be an overall balance between electricity supply and demand in China, with a tight supply of electricity in certain regions during the rush hours. While the power supply structure accelerates the green low-carbon transformation, the basic role and the function of regulating power supply of coal-fired power are prominent.

  In terms of environmental policies, the State has implemented "Measures for Administration of Carbon Emissions Trading (Trial)" from 1 February 2021, issuing carbon emission quotas to more than 2,000 power companies. Low-carbonization has become a rigid constraint for the development of energy industry. The Group's safety and environmental work is facing new challenges.

• (2) Development Strategies of the Group

  By stepping on the new development stage, implementing a new development concept, building a new development pattern, sticking to the principle of making progress while ensuring stability, being high-quality-oriented, taking the quality and efficiency improvement as the main line, governing enterprises according to law and standardizing operations and regarding reform and innovation as the driving force, the Company will continue to optimize and adjust the deployment structure, enhance the competitiveness, innovation, control, influence and anti-risk capabilities, in order to accelerate the creation of a first-class listed company with international reputation.

(3) Operation Plan of the Group in 2021

Where external conditions remain relatively stable, the Group expects to complete the goal of power generation of about 200 million MWh in 2021, and the utilisation hours of power generating units are expected to remain stable. According to the actual progress of each project, in 2021, the Group plans to invest approximately RMB17 billion, which will be used for the infrastructure of power supply projects, environmental protection and energy-saving technical reformation projects, and other projects.

In 2021, the Company will focus on the following four aspects:

Strengthening strategic leadership and promoting high-quality development. Highlighting quality efficiency, adhering to ecological and environmental protection as well as win-win cooperation and development, making the effort to promote the development of clean energy and developing the best pumped storage. Under the premise of guaranteeing gas sources and implementing electricity price, the development of gas-fired projects should be carried out with caution. Deeply taping into the potential thermal supply of thermal generating units, further strengthening the profitability of the thermal generating units of the Group and carrying out flexible transformations based on local conditions, emphasizing energy-saving efficiency and improving energy efficiency levels. Properly implementing the development of emerging business, such as Internet data centers, energy storage and geothermal and comprehensively expanding the development area of the Group.

Enhancing the control of operations and comprehensively improving quality and efficiency.

Strengthening marketing efforts, deeply taping into base power policies, prioritizing power generation themes, focusing on entering into medium-term and long-term transactions, and actively participating in spot transactions. Strengthening fuel cost control, continuing to improve the centralized procurement system and mechanism, accelerating the construction of the fuel logistic system and making every effort to control and reduce the fuel price.

Consolidating the safety foundation and strengthening environmental protection. Thoroughly monitoring and analyzing unsafe incidents of the Group, discovering problems in a timely manner and making improvement accordingly. Focusing on monitoring environmental protection to ensure that no material environmental incidents occur. Carrying out research and formulating peak carbon dioxide emission measures, attaching great importance to carbon emission rights trading, engaging in the design of trading mechanism, effectively fighting the battle of pollution prevention and control. Actively promoting modern information technologies, such as big data, cloud computing and artificial intelligence to transform thermal generating units, speeding up energy-saving transformation of existing coal-fired power assets and improving energy efficiency.

Strengthening compliance management and improving governance standards. Continuously standardizing the management of "general meetings, the Board and the Supervisory Committee", reinforcing the training of directors and supervisors, improving their ability to perform their duties, optimizing the governance system and enhancing governance efficiency. Further enhancing the monitoring process to prevent and mitigate regulatory risks. Focusing investor relations, responding to market concerns in a timely manner. Strengthening internal control management, accelerating system optimization and forming a closed-loop management of the entire process of internal control over evaluation-feedback- rectification, and continuing to improve the overall internal control management level of the Group.

(4) Possible Risks and Measures

In terms of macroeconomics and power market, while COVID-19 pandemic is still ravaging and spreading around the world, plunging the world economy into a deep recession, the global industrial supply chain is severely blocked. The domestic epidemic prevention and control in China has achieved significant strategic results and the economy has recovered steadily. In 2020, the GDP growth rate of China reached 2.3%, which is the only country recorded positive growth in the world. However, the growth rate dropped 3.7 percentage points year-on-year. The national power generation increased by 2.7% and the growth rate dropped 0.8 percentage point year-on-year. Based on the above information, the impact on the national economy and power generation brought by COVID-19 pandemic is obvious. The epidemic situation in many provinces has exhibited multi-point concentrated outbreak trend since 2021. The economic recovery still hangs in the balance, which will inevitably have a relatively great impact on the power generation industry.

In terms of the coal market, in the long run, the medium and long-term momentum of rising price of coal is insufficient but there will be phrasal price appreciation. The fuel cost of the Group is exposed to the risk of increase. Coal supply may be tight in certain regions and periods.

In terms of the capital market, China will continue to implement proactive fiscal policy and a prudent monetary policy, while maintaining the necessary support for economic recovery. It is expected that the extent and pace of tightening capital will be relatively mild and corporate financing costs will face certain upward pressure.

With regard to the above risks, in future operation and development, the Group will stick to the determination that the long-term economy of China will be improved with strong development resilience. Based on the strategic decision to establish the domestic circulation and the domestic-and-international dual circulation, which can mutually promote a new development pattern, the Group will make every effort to expand the market and extensively investigate overseas resources. With the principle of optimizing power generation, we will actively coordinate various regions to optimize power generation resources and expand profit margins; carry out an in-depth study of the allocation principle of priority power generation plan, tap into dominant themes and actively participate in spot transactions. We will carry out thorough coal market analysis and coal procurement strategy research, optimize order structure, plan seasonal reserves in advance, actively respond to the impact on the efficiency brought by coal price fluctuations and continue to improve the ability to maintain, supply and control price. We will deepen financing innovation, actively explore and continuously expand financing channels and financing methods, and reduce financing costs through the reasonable use of various financial instruments.

MANAGEMENT DISCUSSION AND ANALYSIS

• (1) Macroeconomic Conditions and Electricity Demand

  According to preliminary calculation of the National Bureau of Statistics, the Gross Domestic Product (GDP) of the PRC in 2020 amounted to RMB101,598.6 billion, representing a year-on-year increase of 2.3% determined based on comparable prices. Power consumption of the entire society totalled 7,511.0 billion KWh, representing a year-on-year increase of 3.1%. With regard to different industries, the consumption by the primary industry accounted for 85.9 billion KWh, representing a year-on-year increase of 10.2%; the consumption by the secondary industry accounted for 5,121.5 billion KWh, representing a year-on-year increase of 2.5%; and the consumption by the tertiary industry accounted for 1,208.7 billion KWh, representing a year-on-year increase of 1.9%; and the consumption by urban and rural residents accounted for 1,094.9 billion KWh, representing a year-on-year increase of 6.9%.

• (2) Turnover

  In 2020, the turnover of the Group was approximately RMB89,382 million, representing a decrease of approximately 2.58% over 2019, mainly due to the decrease in power generation volume.

• (3) Major Operating Expenses

  In 2020, the operating expenses of the Group amounted to approximately RMB80,592 million, representing a decrease of approximately 3.52% over 2019. The particulars are as follows:

  Fuel costs of the Group amounted to approximately RMB41,394 million in 2020, representing a decrease of approximately 8.77% over 2019, mainly due to the decrease in coal price and the decrease in power generation volume.

  Sale cost of coal of the Group amounted to approximately RMB11,462 million in 2020, representing a decrease of approximately 1.95% over 2019, mainly due to the decrease in coal price.

  Depreciation and amortisation expenses of the Group amounted to approximately RMB11,759 million in 2020, representing a decrease of approximately 0.56% over 2019, mainly due to the combined effect of full accrual of depreciation for certain generating units and the operation of new generating units.

  In 2020, the maintenance, repair and inspection expenses of the Group were approximately RMB3,940 million, representing an increase of approximately 3.53% over 2019, mainly due to the increase in the number of new generating units put into operation.

  In 2020, the staff cost of the Group was approximately RMB6,333 million, representing an increase of approximately 5.63% over 2019, mainly due to the increase in the salary of the staff of the Group and the increase in the number of new generating units put into operation.

  In 2020, the administration expenses of the Group were approximately RMB3,300 million, representing an increase of approximately 28.26% over 2019, mainly due to the increase in assets impairment losses.

• (4) Investment Income

  Investment income of the Group amounted to approximately RMB45 million in 2020, representing an increase of approximately 92.83% over 2019. This was mainly due to the income from the disposal of the equity of an associate of the Company in 2020.

• (5) Other Revenue

  Other revenue of the Group amounted to approximately RMB1,040 million in 2020, representing an increase of approximately 33.25% over 2019. This was mainly due to the transfer-in without payment.

• (6) Other Net Income

  Other net income of the Group amounted to approximately RMB929 million in 2020, representing an increase of approximately 22.23% over 2019. This was mainly due to the increase in revenue arising from by-products of power generation.

• (7) Finance Costs

  Finance costs of the Group amounted to approximately RMB4,533 million in 2020, representing a decrease of approximately 13.87% over 2019. This was mainly due to the reduced interest-bearing liabilities and lower cost of funds ratio of the Group.

• (8) Share of Results of Associates and Joint Ventures

  Share of results of associates and joint ventures of the Group amounted to approximately RMB522 million in 2020, representing a decrease of approximately 31.12% over 2019, which was mainly due to the decrease in the profits of the coal mining enterprises invested by the Group.

• (9) Income Tax

  Income tax of the Group amounted to approximately RMB1,216 million in 2020, representing an increase of approximately 17.34% over 2019. This was mainly due to the increase in the Group's profits.

• (10) Pledge and Mortgage of Assets

  As at 31 December 2020, the Company and the Company's subsidiaries have pledged their income stream in respect of the sale of electricity and heat to secure loans amounting to approximately RMB18,200 million.

  As at 31 December 2020, some of the Company's subsidiaries have mortgaged their generating units and relevant equipment, land use rights and mining rights to secure loans amounting to approximately RMB3,971 million.

• (11) Indebtedness

  As at 31 December 2020, the total borrowings of the Group amounted to approximately RMB93,917 million, of which borrowings denominated in Euro amounted to approximately EUR8.26 million. The liabilities to assets ratio (representing the total liabilities divided by total assets of the Group as at 31 December 2020) was approximately 60.12%. Borrowings of the Group were mainly of floating rates. Short-term borrowings and long-term borrowings due within one year amounted to approximately RMB29,514 million, and long-term borrowings due after one year amounted to approximately RMB64,403 million. The closing balance of the medium-term notes (including the portion due within one year) and debt financing instruments issued through non-public offering to target subscribers (including the portion due within one year) amounted to approximately RMB12,492 million. The closing balance of lease liabilities of the Group amounted to approximately RMB1,817 million.

• (12) Contingent Liabilities

  As at 31 December 2020, Guang'an Company, a subsidiary of the Company, provided guarantees to banks amounting to approximately RMB43.58 million for loans which were granted to Sichuan Huayingshan Longtan Coal Company Limited, an associate of Guang'an Company.

• (13) Provisions

  Provisions represent the Group's best estimate of its liabilities and remedial work costs arising from mine disposal and environmental restoration based on industry practices and historical experience. As at 31 December 2020, the balance of the Group's provisions amounted to approximately RMB237 million.

• (14) Impairment Loss

  In 2020, under the China Accounting Standards for Business Enterprises, the impairment loss of the Group was approximately RMB1,646 million, which reduced the net profit attributable of the parent company of RMB1,353 million from the consolidated financial statements. This was mainly due to the impairment of mining rights of Shanxi Maohua Energy Investment Company. The Board is of view that the provision for asset impairment is based on the principle of prudence and it is sufficiently and fairly reflects the asset position of the Group.

  The Board agreed with the above provision of asset impairment.

• (15) Cash Flow Analysis

  In 2020, the net cash inflow from operating activities of the Group amounted to approximately RMB20,286 million, increased by approximately RMB4,740 million over 2019, mainly due to the impact of increased efficiency of the Company in 2020; the net cash outflow used in investing activities amounted to approximately RMB18,051 million, increased by approximately RMB2,886 million over 2019, mainly due to the increase in capital expenditures in 2020; the net cash outflow from financing activities amounted to approximately RMB2,202 million, increased by approximately RMB1,648 million over 2019, mainly due to the impact of increased efficiency of the Company and reduced borrowings in 2020.

• (16) Exchange Rate Fluctuation Risk and Related Hedging

  The Group mainly engages in business and obtains income in China, and has a relatively small amount of foreign currency borrowings. Therefore, the exchange rate fluctuation risk is relatively low. Based on the above considerations, the Group did not adopt relevant hedging measures.

• (17) The Impact of COVID-19 Pandemic on the Group

  Under the impact of COVID-19 pandemic, Hubei Company of the Group experienced year-on-year decline in power generation volume and operating income in 2020. In accordance with the results of pandemic control measures adopted by China, it is expected that the COVID-19 pandemic would not materially and adversely affect the future performance of the Company.

  As of the date of this announcement, the Group maintained sufficient liquidity and working capital.

  The Group will continuously carry out regular prevention and control of the pandemic, and particularly implement the work on production safety and fuel security, improve pandemic prevention and control plans, and fully review various preparation work regarding extreme conditions, to ensure quick response, proper action and timely reporting in case of pandemic outbreak. The Group will conscientiously implement the policies of the State Council and regional authorities on pandemic prevention and control to ensure that the pandemic is under proper control.

CHANGE OF DIRECTORS, SUPERVISORS AND MEMBERS OF SENIOR MANAGEMENT

As at 25 March 2020, due to age, Mr. Tian Hongbao tendered his resignation as the vice chairman, an executive director and a member of the nomination committee of the eighth session of the Board of the Company and the general manager of the Company with effect from the same date. Mr. Tian Hongbao has confirmed that he has no disagreements with the Board and there is no matter in relation to his resignation that needs to be brought to the attention of the shareholders of the Company.

As at 8 May 2020, due to work arrangement, Mr. Peng Xingyu tendered his resignation as a supervisor of the eighth session of the supervisory committee of the Company with effect from the same date. Mr. Peng Xingyu has confirmed that he has no disagreements with the Board and the Supervisory Committee, and there is no matter in relation to his resignation that needs to be brought to the attention of the shareholders of the Company.

At the 2019 annual general meeting (the "2019 AGM") convened on 30 June 2020, Mr. Wang Xuxiang, Mr. Luo Xiaoqian and Mr. Feng Rong were re-elected or elected as the executive directors of the ninth session of the Board; Mr. Ni Shoumin, Mr. Peng Xingyu, Mr. Gou Wei, Mr. Hao Bin and Mr. Wang Xiaobo were re-elected or elected as the non-executive directors of the ninth session of the Board; Mr. Wang Dashu, Mr. Zong Wenlong, Mr. Feng Zhenping and Mr. Li Xingchun were re-elected or elected as the independent non-executive directors of the ninth session of the Board. Ms. Chen Wei and Mr. Ma Jing'an were re-elected or elected as the supervisors of the ninth session of the Supervisory Committee. The terms of office of the above directors and supervisors are three years immediately effective upon the shareholders' approval at the 2019

AGM and expiring upon conclusion of the general meeting of the Company to be convened for election of the tenth session of the Board and the Supervisory Committee (excluding employee representatives).

As at 30 June 2020, due to expiry of terms of office, Mr. Chen Cunlai ceased to serve as the executive director of the Company, Mr. Chen Haibin and Mr. Tao Yunpeng ceased to serve as the non-executive directors of the Company, Mr. Ding Huiping and Mr. Wang Chuanshun ceased to serve as the independent non-executive directors of the Company. Each of them has confirmed that he has no disagreements with the Board and there are no matters in relation to his resignation that need to be brought to the attention of the shareholders of the Company. As at 30 June 2020, due to expiry of terms of office, Mr. Zha Jianqiu ceased to serve as the independent supervisor of the Company, and Ms. Yuan Yanan and Mr. Ma Jing'an ceased to serve as the employee representative supervisors of the Company. Each of them has confirmed that he or she has no disagreements with the Supervisory Committee and the Board, and there are no matters in relation to his or her resignation that need to be brought to the attention of the shareholders of the Company.

According to the laws and regulations of the PRC and the Articles of Association, the employees of the Company democratically elected Mr. Zhang Peng as an employee representative supervisor of the ninth session of the Supervisory Committee with a term of office commencing from the conclusion of the employee representative meeting on 30 June 2020 and ending on the expiry of the term of the ninth session of the Supervisory Committee.

At the first meeting of the ninth session of the Board convened on 30 June 2020, Mr. Wang Xuxiang and Mr. Ni Shoumin were re-elected as the chairman and the vice chairman of the Board, respectively, and Mr. Luo Xiaoqian was appointed as the general manager of the Company with a term of commencing from the conclusion of the Board meeting and ending on the expiry of the term of the ninth session of the Board. At the first meeting of the ninth session of the Supervisory Committee convened on 30 June 2020, Ms. Chen Wei was re-elected as the chairman of the

Supervisory Committee.

At the extraordinary general meeting convened on 28 October 2020, Mr. Ding Huande was elected as an executive director of the ninth session of the Board with a term of office commencing from the conclusion of the extraordinary general meeting and ending on the expiry of the term of the ninth session of the Board. At the fifth meeting of the ninth session of the Board convened on 28 October 2020, Mr. Ding Huande was elected as the chairman, and appointed as the chairman of the strategic committee. Since 28 October 2020, Mr. Ding Huande serves as the authorized representative of the Company under Rule 3.05 of the Rules Governing the Listing of Securities of The Stock Exchange of Hong Kong Limited (the "Hong Kong Listing Rules"). Due to work arrangement, Mr. Wang Xuxiang proposed to resign from his positions as the chairman, an executive director and the chairman of the strategic committee of the ninth session of the Board, with effect upon the conclusion of the above extraordinary general meeting. Mr. Wang Xuxiang has confirmed that he has no disagreements with the Board and there is no matter in relation to his resignation that needs to be brought to the attention of the shareholders of the Company. Since 28

October 2020, Mr. Wang Xuxiang ceased to serve as the anthorised representative of the Company under Rule 3.05 of the Hong Kong Listing Rules. Due to age, Mr. Chen Cunlai has resigned from his position as the deputy general manager of the Company. Mr. Chen Cunlai has confirmed that he has no disagreements with the Board and there is no matter in relation to his resignation that needs to be brought to the attention of the shareholders of the Company.

At the extraordinary general meeting convened on 27 January 2021, Mr. Zhang Zhiqiang and Mr. Li Pengyun were elected as the non-executive directors of the ninth session of the Board with a term of office commencing from the conclusion of the extraordinary general meeting and ending on the expiry of the term of the ninth session of the Board. At the eighth meeting of the ninth session of the Board convened on 27 January 2021, Mr. Zhang Zhiqiang was appointed as a member of the remuneration and appraisal committee, Mr. Li Pengyun was appointed as a member of the strategic committee, Mr. Song Jingshang was appointed as the chief engineer of the Company, and Mr. Wu Yuejie was appointed as the deputy general manager of the Company.

As at 27 January 2021, due to work arrangement, Mr. Gou Wei ceased to serve as a non-executive director and a member of the remuneration and appraisal committee of the ninth session of the Board, and Mr. Hao Bin ceased to serve as a non-executive director and a member of the strategic committee of the ninth session of the Board. Each of Mr. Gou Wei and Mr. Hao Bin has confirmed that he has no disagreements with the Board and there is no matter in relation to his resignation that needs to be brought to the attention of the shareholders of the Company.

For details, please refer to the announcements of the Company dated 25 March 2020, 8 May 2020, 30 June 2020, 11 September 2020, 28 October 2020, 8 January 2021 and 27 January 2021, and the circular of the Company dated 15 May 2020.

SIGNIFICANT EVENTS

Amendments to the "Articles of Association", "Rules of Procedures for the General Meetings of Shareholders", "Rules of Procedures for the Board of Directors" and "Rules of Procedures for the Supervisory Committee"

In order to further improve corporate governance and strengthen regulated operations of the listed company, the Company has, upon approval at the 27th meeting of the eighth session of the Board and the 2019 AGM, amended the Articles of Association, the Rules of Procedures for General Meetings of Shareholders, the Rules of Procedures for the Board of Directors and the Rules of Procedures for the Supervisory Committee, in accordance with the Company Law of the People's Republic of China (2018 Revision), the Guidelines on Articles of Associations of Listed Companies (2019 Revision), the Code of Corporate Governance for Listed Companies (2018 Revision) and other relevant laws and regulations. Such amendments involved provisions in relation to stock repurchase, election of the Board members, constitution of the Supervisory Committee, serving concurrent positions by senior management, etc.

In order to further improve corporate governance and complete the revision of the notice period of the general meetings of shareholders, the Company has, upon the approval at the fourth meeting of the ninth session of the Board and the extraordinary general meeting held on 28 October 2020, amended the Articles of Association and the Rules of Procedures for General Meetings of Shareholders, in accordance with the Reply of the State Council on Adjusting the Notice Period for the General Meeting of Shareholders and Other Matters Applicable to Companies Listed Abroad, and the Securities Law of the People's Republic of China (2019 Revision), the Company Law of the People's Republic of China (2018 Revision) and the Code of Corporate Governance for Listed Companies (China Securities Regulatory Commission Announcement [2018] No. 29) and other relevant requirements of laws and regulations. Such amendments involved provisions in relation to registration of changes to the register of shareholders, and the notice period and procedures for convening the general meetings of shareholders, etc.

For details, please refer to the announcements of the Company dated 25 March 2020, 30 June 2020, 24 September 2020 and 28 October 2020, and the circular of the Company dated 15 May 2020.

SUBSEQUENT EVENTS

(1) Entering into Commercial Factoring Services Framework Agreement with Huadian Commercial Factoring (Tianjin) Co., Ltd. ("Huadian Factoring")

On 8 January 2021, the Company and Huadian Factoring entered into the Commercial Factoring Services Framework Agreement, pursuant to which Huadian Factoring agrees to provide the Company and its subsidiaries with non-recourse factoring business services as required by the Company, comprising reverse factoring and factoring businesses. The Commercial Factoring Services Framework Agreement shall be subject to approval by the independent shareholders at the general meeting of the Company with a term ending on 31 December 2021. The directors of the Company propose the cap (including any fee to be charged by Huadian Factoring to the Group) of RMB7,500 million for the transactions contemplated under the Commercial Factoring Services Framework Agreement for the period from the effective date of the Commercial Factoring Services Framework Agreement to 31 December 2021.

China Huadian Corporation Limited ("China Huadian") is the controlling shareholder of the Company, directly and indirectly holding approximately 46.84% of the total issued share capital of the Company as at the date of this announcement. As Huadian Factoring is a wholly-owned subsidiary of China Huadian, Huadian Factoring is a connected person of the Company. Therefore, the entering into of the Commercial Factoring Services Framework Agreement and the transactions contemplated thereunder constitute continuing connected transactions of the Company.

As one or more of the applicable percentage ratios (as defined in Rule 14.07 of the Hong Kong Listing Rules) of the transactions contemplated under the Commercial Factoring Services Framework Agreement exceed 5%, the Commercial Factoring Services Framework Agreement and the transactions contemplated thereunder are subject to the reporting, announcement, annual review and independent shareholders' approval requirements under Chapter 14A of the Hong Kong Listing Rules.

In addition, as one or more of the applicable percentage ratios (as defined in Rule 14.07 of the Hong Kong Listing Rules) of the transactions contemplated under the Commercial Factoring Services Framework Agreement exceed 5% but are less than 25%, the Commercial Factoring Services Framework Agreement and the transactions contemplated thereunder constitute discloseable transaction pursuant to Chapter 14 of the Hong Kong Listing Rules, and are subject to the reporting and announcement requirements, but are exempt from the shareholders' approval requirement under Chapter 14 of the Hong Kong Listing Rules.

For details, please refer to the announcement of the Company dated 8 January 2021 and the circular of the Company dated 29 January 2021.

(2) Entering into Ningxia Lingwu Equity and Debt Transfer Agreement and Ningxia Heating Equity Transfer Agreement with China Huadian

On 26 February 2021, the Company and China Huadian entered into (i) Ningxia Lingwu Equity and Debt Transfer Agreement, pursuant to which the Company agreed to sell and China Huadian agreed to purchase 65% equity interests in Ningxia Lingwu held by the Company and the dividend receivable arising from the 65% equity interests in Ningxia Lingwu held by the Company as at the date of the Ningxia Lingwu Equity and Debt Transfer Agreement at the consideration of RMB2,822,503,971.45; and (ii) Ningxia Heating Equity Transfer Agreement, pursuant to which the Company agreed to sell and China Huadian agreed to purchase 53% equity interests in Ningxia Huadian Heating Corporation Limited ("Ningxia Heating") held by the Company at the consideration of RMB1,249,728,234, respectively (the "Transfers"). The Transfers shall be subject to approval by the independent shareholders at the general meeting of the Company. Upon the completion of the Transfers, the Company will no longer hold any interests in Ningxia Lingwu and Ningxia Heating, while Ningxia Lingwu and Ningxia Heating will cease to be the subsidiaries of the Company.

China Huadian is the controlling shareholder of the Company, directly and indirectly holding approximately 46.84% of the total issued equity of the Company as at the date of this announcement, is therefore a connected person of the Company under the Hong Kong Listing Rules. Pursuant to the Chapter 14A of the Hong Kong Listing Rules, the Transfers shall constitute connected transactions of the Company. Pursuant to Rule 14A.81, as one or more of the percentage ratios (as defined in Rule 14.07 of the Hong Kong Listing Rules) in respect of the Transfers, calculated on an aggregate basis, exceed 5%, the Transfers are subject to the annual report, announcement, circular and independent shareholders' approval requirements under Chapter 14A of the Hong Kong Listing Rules.

In addition, as one or more of the percentage ratios in respect of the Transfers, calculated on an aggregate basis, exceed 5% but are less than 25%, pursuant to the Chapter 14 of the Hong Kong Listing Rules, the Transfers also constitute a discloseable transaction of the Company, and are subject to the reporting and announcement requirements but are exempted from shareholders' approval requirement under Chapter 14 of the Hong Kong Listing Rules.

For details, please refer to the announcement of the Company dated 26 February 2021.

(3) Entering into Equity Acquisition Agreements with CCB Financial Asset Investment Co., Ltd ("CCB Financial") and BOC Financial Asset Investment Co., Ltd ("BOC Financial")

On 25 March 2021, the Company and CCB Financial entered into Mengdong Energy Equity Acquisition Agreement, pursuant to which the Company has agreed to acquire, and CCB Financial has agreed to sell its 45.15% equity interest in Mengdong Energy Company at a consideration of RMB1,000.0103 million (subject to adjustment), which will be paid by the Company through (i) the issuance of 4,338,468 (subject to adjustment) consideration shares at an issue price of RMB4.61 per consideration share, and (ii) the issuance of consideration convertible bonds in the total amount of RMB980.0100 million (subject to adjustment) to CCB Financial. On the same day, the Company and BOC Financial entered into Fuyuan Thermal Power Equity Acquisition Agreement, pursuant to which Company has agreed to acquire, and BOC Financial has agreed to sell its 36.86% equity interest in Fuyuan Thermal Power Company at a consideration of RMB500.1523 million (subject to adjustment), which will be paid by the Company through (i) the issuance of 2,169,908 (subject to adjustment) consideration shares at an issue price of RMB4.61 per consideration share, and (ii) the issuance of consideration convertible bonds in the total amount of RMB490.1490 million (subject to adjustment) to BOC Financial. Upon completion of the abovementioned acquisitions, Mengdong Energy Company and Fuyuan Thermal Power Company will become wholly-owned subsidiaries of the Company, and CCB Financial and BOC Financial will hold a total of 3.19% equity interest in the Company (assuming that the consideration convertible bonds are fully converted into conversion shares at the initial conversion price of RMB4.61 per conversion share).

Based on currently available information, as the highest applicable percentage ratio (as defined under the Hong Kong Listing Rules) of the abovementioned acquisitions is less than 5% and the considerations under the Equity Acquisition Agreements are satisfied by way of issuance of consideration shares and consideration convertible bonds, the abovementioned acquisitions constitute share transactions of the Company under Chapter 14 of the Hong Kong Listing Rules and are therefore subject to the reporting and announcement requirements, but are exempt from the shareholders' approval requirement. As the consideration for the target equity will be determined with reference to the appraised value of the target equity as set out in the assets valuation reports filed with relevant authority(ies) and may be subject to adjustment, and the final number of consideration shares and consideration convertible bonds to be issued may also be subject to adjustment, further announcement(s) will be made by the Company in due course upon the determination of the above relevant information.

Although the abovementioned acquisitions are exempt from the shareholders' approval requirement under Chapter 14 of the Hong Kong Listing Rules, the abovementioned acquisitions in consideration of the issuance of consideration shares and consideration convertible bonds shall be subject to the approval of the shareholders at the general meeting of the Company pursuant to the Administrative Measures for the Major Asset Restructuring of Listed Companies issued by China Securities Regulatory Commission. The consideration shares and the conversion shares will be issued pursuant to the general mandate.

For details, please refer to the announcement of the Company dated 25 March 2021.

(4) Shareholder's Return Plan

On 25 March 2021, the Shareholders' Return Plan for the Years 2020-2022 was considered and approved at the 10th meeting of the ninth session of the Board by adhering to the principals of getting a reasonable return on investment for shareholders while taking into account the interests of all the shareholders as a whole, and the long-term interests and the reasonable funding requirements of the Company, so as to implement a sustainable, stable and proactive profit distribution policy. During 2020 to 2022, the profit to be distributed in cash by the Company in principle will not be less than 50% of the distributable profits achieved in that year as indicated in the consolidated statements, and dividend per share will not be less than RMB0.2. Aforesaid Shareholder's Return Plan is subject to the approval of the shareholders at the general meeting of the Company.

For details, please refer to the announcement of the Company dated 25 March 2021.

SHAREHOLDINGS OF SUBSTANTIAL SHAREHOLDERS

So far as the directors of the Company are aware, each of the following persons, not being a director, supervisor, chief executive or member of the senior management of the Company, had an interest or short position as at 31 December 2020 in the Company's shares or underlying shares (as the case may be) which was disclosed to the Company and The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange") under the provisions of Divisions 2 and 3 of Part XV of the Securities and Futures Ordinance (the "SFO"), or was otherwise interested in 5% or more of any class of issued share capital of the Company as at 31 December 2020, or was a substantial shareholder (as defined in Hong Kong Listing Rules) of the Company as at 31 December 2020.

Approximate

Name of shareholderClass of sharesNumber of shares held

Approximate percentage of the total number of shares of theApproximate percentage of the total number of A shares of the

Company in issue Company in issuepercentage of the total number of H shares of the Company in issue

Capacity

China Huadian

• A Shares

  4,534,199,224 (L)

• H Shares

  85,862,000 (L) (Note 1)

  45.97% 0.87%

  55.66% -

  - 5.00%

  Shandong Development Investment Holding Group Co., Ltd.

• A Shares

  757,226,729 (L)

  7.68%

  9.30%

  -

  Beneficial owner Interests of controlled corporations Beneficial owner

  FIL Limited

• H Shares

  119,322,000 (L) (Note 2)

  1.21%

  -

  • 6.95% Interests of controlled corporations

    Pandanus Partners L.P.

• H Shares

  119,322,000 (L) (Note 2)

  1.21%

  -

  • 6.95% Interests of controlled corporations

    Pandanus Associates Inc.

• H Shares

  119,322,000 (L) (Note 2)

  1.21%

  Brown Brothers Harriman & Co.

• H Shares

86,462,341(L) 86,462,341(P)

0.88% 0.88%

- - -

• 6.95% Interests of controlled corporations

• 5.03% Agent

• 5.03% Agent

(L) = long position

(P) = lending pool

Note 1j So far as the directors of the Company are aware or are given to understand, these 85,862,000 H shares were held directly by a wholly-owned subsidiary of China Huadian, namely, China Huadian Hong Kong Company Limited through CCASS in the name of HKSCC Nominees Limited.

Note 2j So far as the directors of the Company are aware or are given to understand, these 119,322,000 H shares were held in the name of HKSCC Nominees Limited. These 119,322,000 H Shares were held by FIL Limited through its subsidiaries, namely, FIL Asia Holdings Pte Limited, FIL Asset Management (Korea) Limited, FIL Japan Holdings (Singapore) Pte Limited, FIL Japan Holdings KK, FIL Investments (Japan) Limited, FIL Responsible Entity (Australia) Limited, FIL Investment Management (Hong Kong) Limited, FIL Fund Management Limited, FIL Holdings (Luxembourg) S.A., FIL Investment Management (Luxembourg)

S.A., FIL Investment Advisors, FIL Holdings (UK) Limited, FIL Investment Services (UK) Limited, FIL Investments International, FIL Pensions Management, FIL Life Insurance Limited, FIL Fund Management (Ireland) Limited, 483A Bay Street Holdings LP, BlueJay Lux 1 S.a.r.l., FIC Holdings ULC and Fidelity Investments Canada ULC, respectively. Pandanus Associates Inc. and Pandanus Partners L.P. are deemed to be interested in the same tranche of H shares through their direct or indirect control over FIL Limited.

Save as disclosed above and so far as the directors are aware, as at 31 December 2020, no other person (other than the directors, supervisors, chief executives or members of senior management of the Company) had any interest or short position in the Company's shares or underlying shares (as the case may be) which was disclosed to the Company and the Hong Kong Stock Exchange under the provisions of Divisions 2 and 3 of Part XV of the SFO and as recorded in the register required to be kept under Section 336 of the SFO, or was otherwise a substantial shareholder (as defined in the Hong Kong Listing Rules) of the Company.

SECURITIES INTERESTS OF DIRECTORS, SUPERVISORS, CHIEF EXECUTIVES OR MEMBERS OF SENIOR MANAGEMENT

As at 31 December 2020, the interests or short positions of the directors, supervisors, chief executive or members of senior management of the Company in the shares, underlying shares and debentures of the Company or any of its associated corporations (as defined in Part XV of the SFO) which were notified to the Company and the Hong Kong Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO (including interests or short positions which they were taken or deemed to have under such provisions of the SFO), or which were recorded in the register required to be kept by the Company under Section 352 of the SFO, or which were required, pursuant to the Model Code for Securities Transactions by Directors of Listed Issuers (the "Model Code") adopted by the Company, to be notified to the Company and the Hong Kong Stock Exchange, were as follows:

Number of A shares of the Company held

Note 1: As at 27 January 2021, Mr. Gou Wei ceased to serve as the non-executive director of the Company.

Note 2:

Accounted for approximately 0.0001% of the total issued A shares of the Company as at 31 December 2020.

Save as disclosed above, as at 31 December 2020, none of the directors, supervisors, chief executives or members of senior management of the Company and their respective associates had any interest or short position in the shares, underlying shares and/or debentures (as the case may be) of the Company and/or any of its associated corporations (within the meaning of Part XV of the SFO) which was (i) required to be notified to the Company and the Hong Kong Stock Exchange pursuant to the provisions of Divisions 7 and 8 of Part XV of the SFO (including interest and short position which any such director, supervisor, chief executive or member of senior management of the Company was taken or deemed to have under such provisions of the SFO) or was (ii) required to be recorded in the register of interests required to be kept by the Company pursuant to Section 352 of the SFO, or which was otherwise (iii) required to be notified to the Company and the Hong Kong Stock Exchange pursuant to the Model Code (which for this purpose shall be deemed to apply to the supervisors to the same extent as it applies to the directors).

In 2020, the Company has adopted a code of conduct regarding transactions of the directors and supervisors in the Company's securities on terms identical to those of the Model Code. Having made specific enquiries of all directors and supervisors, the Company understands that all directors and supervisors have complied with the required standards set out in the Model Code.

CORPORATE GOVERNANCE

The Company has always attached great importance to the corporate governance and continuously promoted management innovation. In strict compliance with the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, the Rules Governing the Listing of Stocks on Shanghai Stock Exchange, the Hong Kong Listing Rules and relevant provisions promulgated by domestic and overseas securities regulatory institutions, the Company has improved its corporate governance structure, enhanced the level of its governance and endeavoured to achieve a harmonious development between the Company's growth and the interest of its shareholders.

The codes on corporate governance of the Company include, but not limited to, the following documents:

• 1. Articles of Association;

• 2. Rules of Procedures for General Meetings of Shareholders, Rules of Procedures for the Board of Directors and Rules of Procedures for the Supervisory Committee (as a part of the current Articles of Association);

• 3. Terms of Reference of the Audit Committee, the Remuneration and Appraisal Committee, the Nomination Committee, and the Strategic Committee of the Board;

• 4. Working Requirements for Independent Directors;

• 5. Working Requirements for Secretary to the Board;

• 6. Working Rules for General Manager;

• 7. Code on the Company's Investment Projects;

• 8. the Company's Management Methods on Raised Proceeds;

• 9. the Company's Management Methods on External Guarantees;

• 10. the Company's Management Rules on Information Disclosure;

• 11. Management Rules on Investor Relations and Implementation Procedures;

• 12. Code on Trading in Securities of the Company by Directors (Supervisors) of the Company;

• 13. Code on Trading in Securities of the Company by Employees of the Company;

• 14. Management Methods for Affairs of the Board of Directors;

• 15. Working Rules on Annual Report for the Audit Committee of the Board;

• 16. Working Rules on Annual Report for Independent Directors;

• 17. Management Methods on Connected Transactions; and

• 18. Insider Registration and Management Methods.

The Board is committed to the principles of corporate governance in order to achieve a prudent management and enhancement of shareholders' value. Transparency, accountability and independence are enshrined under these principles.

The Board has reviewed the relevant requirements prescribed under the corporate governance codes adopted by the Company and its actual practices, and has taken the view that the corporate governance of the Company in 2020 has met the requirements under the code provisions in the Corporate Governance Code (the "CG Code") as contained in Appendix 14 to the Hong Kong Listing Rules and there was no deviation from such provisions. In certain aspects, the corporate governance codes adopted by the Company are more stringent than the code provisions set out in the CG Code, the particulars of which are as follows:

• Ñ The Company has formulated the Code on Trading in Securities of Huadian Power International Corporation Limited* by Directors (Supervisors) and the Code on Trading in Securities of Huadian Power International Corporation Limited* by Employees, which are on terms no less exacting than those set out in the Model Code set out in Appendix 10 to the Hong Kong Listing Rules.

• Ñ In addition to the audit committee, the remuneration and appraisal committee and the nomination committee, the Company has established the strategic committee and stipulated the Terms of Reference of the Strategic Committee.

• Ñ In the financial year of 2020, a total of eleven Board meetings were held by the Company.

• Ñ The audit committee comprises five members, including two non-executive directors and three independent non-executive directors.

PURCHASE, SALE OR REDEMPTION OF LISTED SECURITIES

During the financial year of 2020, neither the Company nor any of its subsidiaries had purchased, sold or redeemed any of its issued securities ("securities" having the meaning as ascribed thereto under paragraph 1 of Appendix 16 to the Hong Kong Listing Rules).

DESIGNATED DEPOSITS AND OVERDUE TIME DEPOSITS

As at 31 December 2020, the Group's deposits placed with financial institutions or other parties did not include any designated or entrusted deposits, or any material overdue time deposits which could not be collected by the Group upon maturity.

AUDIT COMMITTEE

The Company's audit committee has reviewed the annual results of the Group for 2020 and the financial statements prepared under IFRSs for the financial year ended 31 December 2020.

MATERIAL LITIGATION

As of 31 December 2020, some members of the Group were a party to certain litigations arising from the Group's ordinary course of business or acquisition of assets. The management of the Group believes that any possible legal liability which incurred or may incur from the aforesaid cases will have no material adverse effect on the financial position and operating results of the Group.

By order of the Board

Huadian Power International Corporation Limited*

Ding Huande

Chairman

As at the date of this announcement, the Board comprises:

Ding Huande (Chairman, Executive Director), Ni Shoumin (Vice Chairman, Non-executive Director), Peng Xingyu (Non-executive Director), Luo Xiaoqian (Executive Director), Zhang Zhiqiang (Non-executive Director), Li Pengyun (Non-executive Director), Wang Xiaobo (Non-executive Director), Feng Rong (Executive Director), Wang Dashu (Independent Non-executive Director), Zong Wenlong (Independent Non-executive Director), Feng Zhenping (Independent Non-executive Director) and Li Xingchun (Independent Non-executive Director).

Beijing, the PRC

30 March 2021

* For identification purpose only

I SUMMARY OF FINANCIAL INFORMATION IN CONSOLIDATED FINANCIAL

STATEMENTS PREPARED UNDER INTERNATIONAL FINANCIAL REPORTING STANDARDS ("IFRSs")

The consolidated financial information set out below is extracted from the audited consolidated financial statements prepared under IFRSs of the Group as set out in its 2020 annual report.

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the year ended 31 December 2020 (Expressed in Renminbi)

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (CONTINUED)

For the year ended 31 December 2020 (Expressed in Renminbi)

Notes

2020 RMB' 000

2019

RMB' 000

Other comprehensive income for the year

(net of tax):

Items that may be subsequently reclassified to profit or loss:

Share of other comprehensive income of investees accounted for under the equity method

11

5,800

22,375

• Total comprehensive income for the year 5,681,431 4,347,077

  Profit for the year attributable to:

• Equity holders of the Company 4,166,756 3,385,324

  Non-controlling interests

  1,508,875

  939,378

• 5,675,631 4,324,702

  Total comprehensive income for the year attributable to:

• Equity holders of the Company 4,172,556 3,406,951

  Non-controlling interests

  1,508,875

  940,126

• 5,681,431 4,347,077

Basic earnings per share

• 12 RMB0.329

RMB0.288

CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 31 December 2020

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)

As at 31 December 2020

NOTES TO THE FINANCIAL STATEMENTS

• 1. Basis of Preparation of the Consolidated Financial Statements

  The consolidated financial statements for the year ended 31 December 2020 comprise the Group and its interests in associates and joint ventures.

  The measurement basis used in the preparation of the consolidated financial statements is the historical cost basis except for certain financial instruments, which are measured at fair value.

  Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

  Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Group takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in the consolidated financial statements is determined on such a basis, except for leasing transactions that are within the scope of IFRS 16 Leases, and measurements that have some similarities to fair value but are not fair value, such as net realisable value in IAS 2 Inventories, or value in use in IAS 36 Impairment of Assets.

  In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

  • - Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

  • - Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

  • - Level 3 inputs are unobservable inputs for the asset or liability.

  The preparation of the consolidated financial statements in conformity with IFRSs requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

  The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

• 2. Application of New and Revised IFRSs

  In the current year, the Group has applied, for the first time, the following amendments to IFRSs:

  Amendments to IAS 1 and IAS 8	Definition of Material
  Amendments to IFRS 3	Definition of a Business
  Amendments to IFRS 7, IFRS 9 and IAS 39	Interest Rate Benchmark Reform

  None of the new or revised standards and interpretation have had material effect on the Group's accounting policies. The Group has not applied any new standard or interpretation that is not yet effective for the current accounting period.

Amendments to IAS 1 and IAS 8 - Definition of Material

The amendments provide a new definition of material that states "information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity."

The amendments clarify that materiality will depend on the nature or magnitude of information, either individually or in combination with other information, in the context of the financial statements. A misstatement of information is material if it could reasonably be expected to influence decisions made by the primary users.

Amendments to IFRS 3 - Definition of a Business

The amendments clarify that a business must include, as a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs, together with providing extensive guidance on what is meant by a "substantive process".

Additionally, the amendments remove the assessment of whether market participants are capable of replacing any missing inputs or processes and continuing to produce outputs, whilst narrowing the definition of "outputs" and a "business" to focus on returns from selling goods and services to customers, rather than on cost reductions.

An optional concentration test has also been added that permits a simplified assessment of whether an acquired set of activities and assets is not a business.

Amendments to IFRS 7, IFRS 9 and IAS 39 - Interest Rate Benchmark Reform

The amendments modify some specific hedge accounting requirements to provide relief from potential effects of the uncertainties caused by interest rate benchmark reform. In addition, the amendments require companies to provide additional information to investors about their hedging relationships which are directly affected by these uncertainties.

3. Turnover

Turnover represents the sale of electricity, heat and coal. Major components of the Group's turnover are as follows:

In 2020, there are two (2019: two) customers whose sale has exceeded 10% of the Group's revenue, and revenue from sale of electricity to these customers, including sale to entities which are known to the Group to be under common control of these customers, amounted to approximately RMB34,835 million (2019: RMB39,110 million).

The chief operating decision makers review the Group's revenue and profit as a whole, which are determined in accordance with the Group's accounting policies, for resources allocation and performance assessment. Therefore, the Group has only one operating and reportable segment and no further segment information is presented in the consolidated financial statements. The Group's major customers are the power grid operators in relation to the sale of electricity. The revenue from sale of electricity, heat and coal is recognised at a point in time. The Group's assets are mainly located in the PRC.

The following table provides information about trade debtors and bills receivable and contract liabilities from contracts with customers.

The contract liabilities mainly relate to the advance consideration received from customers in relating to sale of heat and coal. RMB1,748 million (2019: RMB1,355 million) of the contract liabilities as of 31 December 2019

has been recognised as revenue for the year ended 31 December 2020 from performance obligations satisfied.

• 4. Personnel costs

  2020 RMB' 000

  2019

  RMB' 000

  Wages, welfare and other benefits Retirement costs

  4,608,664

  4,053,150

  690,459 962,575

  Other staff costs

  1,034,346 980,050

  6,333,469

  5,995,775

• 5. Taxes and surcharges

  During the year, taxes and surcharges of the Group with the amount of RMB1,099 million (2019: RMB1,095 million) mainly represent city maintenance and construction tax, education surcharge, urban land use tax, real estate tax and other taxes and surcharges.

• 6. Investment income

• (i) Government grants mainly represent value added tax refund and the grants from government for environmental protection and heat supply. There is no unfulfilled condition relating to those grants.

  In addition, for grants related to assets, such grants have been deferred and released to profit or loss in accordance with the useful lives of the related assets. In 2020, the Group received such grants amounting to RMB203 million (2019: RMB145 million), and the amount released to profit or loss is RMB111 million (2019: RMB136 million).

• (ii) Others for the year ended 31 December 2020 include non-recurring income amounting of RMB264 million.

8.

The borrowing costs have been capitalised at an average rate of 4.32% per annum (2019: 4.60%) for construction in progress.

9.

Profit before taxation

• 10. Income tax in the consolidated statement of profit or loss and other comprehensive income

  2020

  RMB' 000

  Current tax

  Charge for PRC enterprise income tax for the year Under provision in respect of prior years

  2019

  RMB' 000

  1,574,744 12,850

  1,374,200 7,024

  Deferred tax

  Origination and reversal of temporary differences and tax losses

  1,587,594

  (371,392)

  1,381,224

  (344,784)

  Total income tax expense in the consolidated statement of profit or loss and other comprehensive income

• 11. Other comprehensive income

  1,216,202

  1,036,440

  2020 RMB' 000

  2019

  RMB' 000

  Share of other comprehensive income of investees accounted for under the equity method

  5,800 22,375

  Other comprehensive income, net of income tax

• 12. Earnings per share

5,800 22,375

Basic earnings per share

No diluted earnings per share was presented as there were no potential ordinary shares outstanding during the years ended 31 December 2020 and 2019.

13. Lease

The Group as a lessee

The Group has lease contracts for various items of buildings, generators, machinery and equipment, land use rights, sea use right and motor vehicles were used in its operations. Leases of buildings, generators, machinery and equipment generally have lease terms between 6 months and 45 years (2019: between 6 months and 45 years), while land use right and sea use right generally have lease terms between 10 and 70 years (2019: between 10 and 70 years). For motor vehicles, generally have lease terms of 12 months or less as at 31 December 2020 and 2019. Generally, the Group is restricted from assigning and subleasing the leased assets outside the Group.

(a) Right-of-use assets

• (i) The carrying amounts of the Group's right-of-use assets are as follows:

• (ii) Depreciation charge of right-of-use assets is as follows:

• Additions to the right-of-use assets during the year ended 31 December 2020 were RMB269,266,000 (2019: RMB573,979,000).

  2020	2019
  RMB' 000	RMB' 000
  Buildings	62,881	57,323
  Generators, machinery and equipment	177,178	259,176
  Land use rights and sea use right	160,105	155,951
  Motor vehicles, furniture, fixtures, equipment and others	16	153
  Total	400,180	472,603

(b)Lease liabilities

The carrying amounts of lease liabilities and the movements during the year are as follows:

2020 RMB' 000

2019

RMB' 000

The amounts recognised in profit or loss in relation to lease are as follows:

The total cash outflow for leases for the year ended 31 December 2020 was RMB1,264,082,000 (2019:

RMB953,749,000).

14. Trade debtors and bills receivable

(i) As at 31 December 2020, bank acceptance bills discounted of RMB3,537 million (2019: RMB3,487 million) were derecognised by the Group (the "Derecognised Bills"). In accordance with the Law of Negotiable Instruments in the PRC, the holders of the Derecognised Bills have a right of recourse against the Group if the PRC banks default (the "Continuing Involvement"). In the opinion of the directors, the Group has transferred substantially all risks and rewards relating to the Derecognised Bills. Accordingly, it has derecognised the full carrying amounts of the Derecognised Bills and the associated trade payables.

In the opinion of the directors, the fair values of the Group's Continuing Involvement in the Derecognised Bills are not significant. Losses related to derecognition of the Derecognised Bills was RMB50 million

(2019: RMB8.21 million) in total and charged into profit or loss.

(ii) As at 31 December 2020, trade receivables amounted to RMB5,288 million (2019: RMB3,964 million)

had been factored to a bank on a non-recourse basis. These trade receivables were derecognised as the Group had transferred the significant risks and rewards relating to the trade receivables to the bank under the non-recourse factoring agreements. Losses related to derecognition of the derecognised trade receivables was RMB1.8 million (2019: RMB1.1 million) in total and charged into profit or loss.

As at 31 December 2020, the ageing analysis of trade debtors and bills receivable (net of allowance for impairment), presented based on the invoice date, which approximated to the revenue recognition date, is as follows:

15.

As at 31 December 2020, the ageing analysis of trade creditors and bills payable, presented based on the invoice date, is as follows:

• 16. Dividends

  • (i) Dividends payable to equity shareholders of the Company attributable to the year:

    2020

    2019

    RMB' 000

    RMB' 000

    Final dividend proposed after the end of reporting period of

    RMB0.25 per share (2019: RMB0.146 per share)

    2,465,744

    1,439,995

    Pursuant to a resolution passed at the directors' meeting held on 30 March 2021, final dividend of RMB0.25 per share will be payable to shareholders for 2020, subject to the approval of the shareholders at the coming annual general meeting.

  • (ii) Dividends payable to equity shareholders of the Company attributable to the previous financial year, approved and paid during the year:

  2020 RMB' 000

  2019

  RMB' 000

  Final dividend in respect of the previous financial year approved and paid during the year, of RMB0.146 per share (2019: RMB0.066 per share)

  1,439,995

  650,956

• 17. Contingent liabilities

  During 2020, some subsidiaries of the Company were the defendants in certain lawsuits for events incurred before the acquisition date. At the end of reporting period, the lawsuits were in progress whose final outcomes cannot be determined at present. The directors of the Company considered that the outcome of these outstanding lawsuits will not result in significant adverse effect on the financial position and operating results of the Group.

  As at 31 December 2020, Sichuan Guang'an Power Generation Company Limited ("Guang'an Company"), a subsidiary of the Company, provided guarantees to banks for loans amounting to approximately RMB43.58 million (2019: RMB43.58 million) which were granted to Sichuan Huayingshan Longtan Coal Company Limited, an associate of Guang'an Company.

  Apart from the above guarantees, the Group has no other material contingent liabilities as at 31 December 2020 (2019: nil).

II. SUMMARY OF FINANCIAL INFORMATION IN CONSOLIDATED FINANCIAL

STATEMENTS PREPARED UNDER CHINA ACCOUNTING STANDARDS FOR BUSINESS ENTERPRISES ("CAS")

The consolidated financial information set out below is extracted from the audited consolidated financial statements prepared under CAS of the Group as set out in its 2020 annual report.

CONSOLIDATED BALANCE SHEET AND BALANCE SHEET As at 31 December 2020

(Expressed in Renminbi'000)

As at 31 December 2020

As at 31 December 2020

Item

Shareholders' equity:Consolidated The Company

31 December 31 December 31 December 31 December

2020 2019 2020 2019

CONSOLIDATED INCOME STATEMENT AND INCOME STATEMENT For the year ended 31 December 2020

(i) Classified according to the continuity of operation

• (1) Continuous operating net profit

• (2) Terminate operating net profit

The Company 2020

CONSOLIDATED INCOME STATEMENT AND INCOME STATEMENT (CONTINUED)

For the year ended 31 December 2020 (Expressed in Renminbi'000)

Item

Other comprehensive income, net of tax

Other comprehensive income attributable to equity shareholders of the Company, net of tax

• (i) Items that will not be subsequently reclassified to profit or loss:

• (ii) Items that may be subsequently reclassified to profit or loss:

  (1) Shares of other comprehensive income that may be subsequently reclassified to profit or loss of investees accounted for under the equity method

Other comprehensive income attributable to minority interests, net of tax

Total comprehensive incomeConsolidated

2020 5,800

5,800

- 5,800

5,800

- 5,782,535

2019

22,375

21,627

-

21,627

21,627

748

4,460,919

The Company

• 2020 2019

• 5,800 20,295

• 5,800 20,295

  -

  -

• 5,800 20,295

• 5,800 20,295

-

-

• 4,310,575 2,353,621

  Attributable to equity shareholders of the Company

  Minority interests

  Earnings per share

  Basic earnings per share (RMB/Share)

  4,185,247 1,597,288

  0.33

  3,428,547 1,032,372

  0.29

• 4,310,575 2,353,621

-

N/A

-

N/A

Diluted earnings per share (RMB/Share)

N/A

N/A

N/A

N/A

III. RECONCILIATION OF THE FINANCIAL STATEMENTS PREPARED UNDER CAS AND IFRSs

Effects of major differences between the CAS and IFRSs on net profit and net assets attributable to equity shareholders of the Company are analysed as follows:

*The figures are extracted from the audited report prepared under China Accounting Standards for Business Enterprise and issued on Shanghai Stock Exchange for the year ended 31 December 2019.

Notes:

(1) According to the accounting policies adopted in the Group's financial statements prepared under IFRSs, assets and liabilities acquired by the Group during business combination, irrespective of whether such business combination is involving entities under common control or not, are measured at the fair value of identifiable assets and liabilities of the acquiree at the date of acquisition. In preparing the consolidated financial statements, the respective financial statements of subsidiaries are adjusted based on the fair value of individual identifiable assets and liabilities at the date of acquisition. The excess of purchase consideration paid by the Company over its share of fair value of identifiable net assets of the acquired was recognised as goodwill.

In accordance with CAS, assets and liabilities acquired by the Group in business combination involving entities under common control are measured at their carrying value at the date of combination. The excess of carrying value of purchase consideration paid by the Company over its share of carrying value of identifiable net assets of the acquiree for business combination involving entities under common control reduces the share premium of capital reserve or retained profits.

In addition, according to CAS, in respect of business combination involving entities under common control, when preparing consolidated financial statements, the opening balances as well as the comparative figures of the financial statements should be adjusted as if the current structure and operations resulting from the acquisitions had been in existence since prior periods (no earlier than the later of both parties were under common control).

• (2) According to IFRSs, conditional government grants should be first recorded in long-term liabilities and amortised to profit or loss using the straight line method over the useful lives of the relevant assets after fulfilling the requirements from the government in respect of the construction projects.

  According to CAS, government grants related to assets (required to be recorded in capital reserve pursuant to the relevant government notice) are not recognised as deferred income.

• (3) Pursuant to the relevant PRC regulations for coal mining companies, the funds for production maintenance and production safety are accrued by the Group at fixed rates based on coal production volume. Provision for maintenance and production funds is recognised as expense in profit or loss with a corresponding adjustment to the specific reserve. The maintenance and production funds could be utilised when expenses or capital expenditures on production maintenance and safety measures are incurred. The amount of maintenance and production funds utilised would be transferred from the specific reserve back to retained earnings.

  According to IFRSs, coal mining companies are required to set aside an amount to a fund for production maintenance, production safety and other similar funds through transferring from retained earnings to specific reserve. When qualifying revenue expenditures are incurred, such expenses are recorded in the profit or loss as incurred. When capital expenditures are incurred, an amount is transferred to property, plant and equipment and is depreciated in accordance with the depreciation policy of the Group. Internal equity items transfers take place based on the actual application amount of such expenses whereas specific reserve is offset against retained earnings to the extent of zero.

• (4) Pursuant to the relevant PRC regulations for the separation and transfer of "Water/Electricity/Gas Supply and Property Management", the Group was required to transfer certain equipment to relevant parties without any consideration, which the loss will directly recognise to equity.

  According to IFRSs, the loss from the separation and transfer of equipment should be first recorded in profit or loss as incurred, then to equity as reduced the retained profits for the Group.