Power Generation Capacity and Operations - The company operates a total of 42 power plants with a combined installed capacity of approximately 53,355.55 MW, including 42,360 MW from coal-fired power, 8,589.05 MW from gas-fired power, and 2,403 MW from hydropower[26]. - The company holds a 100% ownership in several key power plants, including Zouxian Power Plant (2,575 MW) and Shiliquan Power Plant (2,120 MW)[27]. - The company has a significant stake in joint ventures, such as 69% in Zouxian Company (2,000 MW) and 75% in Laizhou Company (4,000 MW)[27]. - The company has a diversified power generation portfolio, with significant contributions from both coal and gas-fired plants[27]. - The company has a total installed capacity of 6,855.6 MW in Hubei, with an ownership interest of 82.56%[28]. - The company operates multiple power plants, including 1,320 MW in Changde with a 48.98% ownership and 1,200 MW in Changsha with a 70% ownership[28]. - The company has a significant presence in renewable energy, with 1,360 MW capacity in Hubei, holding a 50% stake[29]. - The company’s coal-fired plants include a significant 2,570 MW capacity in Jiangling, with a 100% ownership[29]. - The company’s gas-fired plants include a capacity of 1,310.2 MW in Shijiazhuang, with an 82% ownership[28]. - The company completed the commissioning of 3,885.9 MW of new power generation projects in 2021, including coal, gas, and hydropower installations[37]. Financial Performance - The company achieved a revenue of approximately RMB 100.98 billion in 2021, marking a 12.98% increase compared to 2020[37]. - The total power generation reached 232.80 million MWh, representing a year-on-year growth of approximately 7.52%[37]. - The company reported an operating loss of approximately RMB 14.40 billion in 2021, a significant decline from an operating profit of RMB 8.79 billion in 2020, primarily due to soaring coal prices[37]. - The installed capacity of the company reached approximately 53,355.55 MW, with a clean energy proportion of about 20.60%[37]. - The company’s asset-liability ratio at the end of the year was 66%, an increase of 6 percentage points from the beginning of the year[37]. - The group reported an operating loss of RMB 14,399,328 thousand for 2021, compared to an operating profit of RMB 8,790,151 thousand in 2020, indicating a significant decline in operational performance[182]. - The net loss attributable to equity holders for the year was RMB 5,215,889 thousand, a decrease from a profit of RMB 5,675,631 thousand in 2020[182]. - The company reported a significant increase in fuel costs, which rose to RMB (74,471,831) thousand in 2021 from RMB (41,394,152) thousand in 2020, impacting overall profitability[182]. Shareholder Information and Dividends - The company has issued approximately 688.16 million A-shares and 14,701,590 convertible bonds in September 2021[26]. - The company has a total of 8,152,624,615 A-shares, accounting for 82.60% of its total share capital, and 1,717,233,600 H-shares, accounting for 17.40%[26]. - The company proposed a cash dividend of RMB 0.25 per share for the fiscal year ending December 31, 2021[35]. - The company plans to distribute at least 50% of the annual distributable profit as cash dividends from 2020 to 2022[35]. - The company plans to distribute a minimum of RMB 0.2 per share in dividends during the 2020-2022 period[165]. Investments and Acquisitions - The company completed the acquisition of 45.15% equity in Inner Mongolia Huadian Mengdong Energy Co., Ltd. and 36.86% equity in Tianjin Huadian Fuyuan Thermal Power Co., Ltd. as part of a share purchase agreement approved on May 28, 2021[91]. - The company agreed to sell 65% equity in Ningxia Lingwu Power Co., Ltd. for a final transaction price of RMB 2.85 billion and 53% equity in Ningxia Huadian Heating Co., Ltd. for RMB 1.486 billion[95]. - The company completed the acquisition of regional companies in Hunan, including 70% equity in Changsha, 48.98% in Changde, and 100% in Pingjiang, for a total consideration of RMB 3.495 billion[98]. - The company agreed to inject approximately RMB 21.24 billion into Fuxin Development through the transfer of equity in its renewable energy company, totaling around RMB 13.61 billion, and a cash contribution of no less than RMB 7.63 billion[105]. Risk Management and Compliance - The group faces risks from the ongoing COVID-19 pandemic, which could impact macroeconomic recovery, electricity demand, and coal production[47]. - The group is addressing the risk of high coal prices, which have significantly increased since September 2021, by optimizing coal procurement strategies[47]. - The company has established a risk management and internal control system, which is reviewed at least annually to ensure its effectiveness[151]. - The company believes that enhancing risk management and internal control capabilities will strengthen corporate governance[153]. - The company has implemented policies to ensure assets are not used or disposed of without authorization, maintaining reliable financial records[152]. Governance and Management - The company has a structured approach to ensure that all securities transactions by directors are reported and approved[148]. - The board consists of 11 members, including 4 independent non-executive directors, ensuring a diverse range of skills and experiences[135]. - The company has established a strategic committee in addition to the audit, remuneration, and nomination committees[132]. - The company encourages directors to participate in professional development courses to enhance their knowledge and skills[135]. - The management team includes professionals with extensive backgrounds in financial management, corporate governance, and energy sector reforms, ensuring robust oversight and strategic direction[50]. Environmental and Social Responsibility - The company is focusing on the development of renewable energy to meet the national carbon peak goals by 2030[44]. - The group has achieved ultra-low emissions standards for all 95 coal-fired generating units as of the report date[73]. - The company has complied with the "comply or explain" provisions of the Environmental, Social, and Governance (ESG) reporting guidelines during the reporting period[169]. - The group will actively follow environmental regulations and improve waste management practices to mitigate environmental risks[48]. Employee and Human Resources - The company has a workforce of 25,139 employees as of December 31, 2021[26]. - The total number of employees as of December 31, 2021, was 25,139, with a focus on performance-based compensation and a fair distribution mechanism[160]. - The remuneration committee reviewed and proposed improvements to the compensation policies for directors and senior management, ensuring alignment with company performance[155].

Financial Performance - The company's operating revenue for 2021 was RMB 104,422,213 thousand, representing a 12.27% increase compared to RMB 93,009,907 thousand in 2020[16] - The net profit attributable to shareholders of the listed company was a loss of RMB 4,965,346 thousand, a decrease of 211.80% from a profit of RMB 4,441,268 thousand in the previous year[16] - The net cash flow from operating activities was a negative RMB 6,350,506 thousand, down 124.00% from RMB 26,465,861 thousand in 2020[16] - The total assets at the end of 2021 were RMB 218,860,429 thousand, a decrease of 9.84% from RMB 242,750,409 thousand at the end of 2020[16] - The net assets attributable to shareholders of the listed company decreased by 16.88% to RMB 61,829,644 thousand from RMB 74,383,869 thousand in 2020[16] - The company reported a decrease in the net profit after deducting non-recurring gains and losses to a loss of RMB 8,368,162 thousand, down 327.93% from RMB 3,671,424 thousand in 2020[16] - The basic earnings per share for 2021 was -0.61 CNY, a decrease of 269.44% compared to 0.36 CNY in 2020[17] - The weighted average return on equity decreased to -13.67% in 2021, down 20.93 percentage points from 7.26% in 2020[17] - The net profit attributable to shareholders under Chinese accounting standards was -4,965,346 thousand CNY for the current period, compared to 4,441,268 thousand CNY in the previous period[18] Revenue and Costs - The company's total operating costs were approximately RMB 117.969 billion, a year-on-year increase of 38.64%[33] - The company's fuel costs amounted to approximately RMB 75.743 billion, reflecting a significant year-on-year increase of 74.68% due to rising coal prices[35] - The company's total revenue from power generation was RMB 83,642,028 thousand, a decrease of 5.76% compared to the previous year[37] - Revenue from heating services was RMB 7,468,176 thousand, down 32.10% year-on-year, with a gross margin decrease of 28.63 percentage points to 10.61%[37] - The total revenue from coal sales was RMB 11,616,654 thousand, reflecting a 5.55% decrease, with a gross margin reduction of 4.91 percentage points to 4.03%[37] Operational Efficiency and Capacity - The company's total electricity generation reached 233.801 billion kWh, an increase of 7.52% compared to the previous year[26] - The company's total installed capacity reached approximately 53,355.55 MW, with coal-fired generation accounting for about 79%[29] - The company's coal consumption per unit of electricity generated was 287.55 grams/kWh, with all 95 coal-fired units meeting ultra-low emission standards[26] - The company's power generation efficiency showed a utilization rate of 4.86%, with an increase in annual utilization hours to 4,066 hours, up by 422 hours year-on-year[62] Investments and Future Plans - The company plans to expand its renewable energy capacity, particularly in wind and solar sectors, to enhance sustainability[53] - The company aims to achieve a 20% increase in overall power generation capacity by 2025 through strategic investments and expansions[57] - The company plans to invest around RMB 17 billion in 2022 for power project infrastructure, environmental protection, and energy-saving technology upgrades[74] - The company is focusing on the development of new energy projects, with related asset contribution plans being discussed and approved[120] Governance and Compliance - The company emphasizes the importance of compliance management and enhancing governance levels to ensure regulatory adherence and risk prevention[75] - The company has established a three-tier internal control assessment mechanism to promote efficient internal control work[79] - The company strictly adheres to insider information management, ensuring no illegal gains from insider trading[80] - The company is committed to continuous improvement in corporate governance and internal management to promote stable and healthy development[87] Shareholder and Management Information - The total pre-tax compensation for the chairman, Ding Huande, was CNY 450,000[95] - The total pre-tax compensation for the general manager, Luo Xiaoqian, was CNY 852,900[95] - The total pre-tax compensation for the financial director, Feng Rong, was CNY 760,400[95] - The total pre-tax compensation for the deputy general manager, Peng Guoquan, was CNY 778,400[99] - The company has appointed new directors and supervisors, including Zhang Zhiqiang and Li Pengyun, who were newly elected as directors[109] Environmental and Social Responsibility - The company achieved a 100% operational rate for desulfurization equipment and reduced wastewater discharge by approximately 99%, totaling about 7.86 million tons[146] - The company’s carbon emission intensity decreased by 7.4 grams per kilowatt-hour compared to the previous year, reflecting effective energy-saving technology research and management[147] - In 2021, the company allocated 4.921 million yuan for poverty alleviation projects, contributing significantly to the consolidation of poverty alleviation results in various regions[148] - The company received recognition for its poverty alleviation efforts, with its Hubei office awarded as an advanced collective in poverty alleviation[148] Financial Transactions and Debt Management - The company entered into a loan framework agreement with China Huadian, allowing for an annual borrowing limit of RMB 200 billion, with an outstanding balance of approximately RMB 171.66 billion as of December 31, 2021[157] - The company has issued a total of 15 billion RMB in corporate bonds, with interest rates ranging from 3.58% to 5.20%[196] - The total amount raised from the issuance of bonds was 43.50 billion RMB, with all funds fully utilized[199] - The company has no significant contracts or guarantees applicable for the reporting period[175]

Operational Capacity and Projects - The company operates 67 power plants with a total installed capacity of approximately 58,448 MW, including 43,160 MW from coal-fired generation and 7,340 MW from gas-fired generation[4]. - Renewable energy capacity amounts to approximately 7,948 MW, comprising hydro, wind, and solar power[4]. - The company holds a 100% ownership in several key power plants, including Zouxian Power Plant (2,575 MW) and Shiliquan Power Plant (2,120 MW)[5]. - The company has a 69% stake in Zouxian Company, which has an installed capacity of 2,000 MW[5]. - The company has a 75% stake in Laizhou Company, with an installed capacity of 4,001.1 MW[5]. - The total installed capacity of Huadian International Power Co., Ltd. is 6,944.4 MW, with an ownership stake of 82.56% in Hubei Company[6]. - The company has a total of 12 power plants in Hubei, with a combined capacity of 6,944.4 MW, including 2,570 MW from Xiangyang Company, which has a 60.10% ownership[7]. - The company owns 100% of several renewable energy projects, including 920 MW from Luding Hydropower Company and 1,541.6 MW from Ningxia New Energy Company[8]. - The company has a significant presence in Sichuan, with 1,320 MW from Huadian Xinxing Company and 2,400 MW from Guang'an Company, holding 90% and 80% ownership respectively[6]. - The installed capacity of the company's thermal power plants varies, with the largest being 6,944.4 MW in Hubei, while smaller plants like the 12.55 MW in Shijiazhuang provide additional capacity[6]. Financial Performance - The company achieved a revenue of approximately RMB 89.38 billion in 2020, with a net profit attributable to shareholders of about RMB 4.17 billion, resulting in a basic earnings per share of RMB 0.329[16]. - The total electricity generation was 207.32 million MWh, a decrease of 3.62% year-on-year, while the heat supply increased by 16.98% to 145 million GJ[16]. - The group's revenue for 2020 was approximately RMB 89.38 billion, a decrease of about 2.58% compared to 2019, with electricity sales revenue of RMB 70.19 billion, down approximately 4.12%[19]. - The operating profit for 2020 was approximately RMB 8.79 billion, an increase of about 6.99% year-on-year, primarily due to a decrease in coal prices[19]. - The profit attributable to equity holders of the company for the year was approximately RMB 4.17 billion, with basic earnings per share of approximately RMB 0.329[19]. - The company maintained a debt-to-asset ratio of 60.11% at year-end, a decrease of 5.5 percentage points from the beginning of the year, reflecting strong financial health compared to peers[16]. - The company reported a significant increase in operational efficiency, with over 30 years of experience among its senior management team in power production and management[27]. Strategic Initiatives and Future Plans - The company has plans for future expansion in renewable energy projects to enhance its portfolio[4]. - The company aims to increase its market share in the energy sector through strategic acquisitions and partnerships[4]. - Future expansion plans include increasing the share of renewable energy in the overall energy mix, aligning with national energy policies[8]. - The company is exploring potential mergers and acquisitions to enhance its market position and expand its operational footprint in the energy sector[8]. - The company plans to invest around RMB 17 billion in 2021 for power project infrastructure, environmental protection, and energy-saving technology upgrades[23]. - The company aims to enhance the profitability of its thermal power units by improving energy efficiency and implementing flexible modifications[24]. - The company is actively pursuing new product development initiatives to meet evolving market demands and regulatory requirements[29]. Environmental and Social Responsibility - The company is focused on improving operational efficiency and reducing carbon emissions in line with national energy policies[4]. - The company is committed to ongoing research and development of new technologies to optimize energy production and consumption[4]. - The company has implemented energy-saving measures for coal-fired units, achieving significant results in air pollution control and steady progress in water pollution prevention[17]. - The company is actively involved in the development of new renewable energy projects, including solar and wind power, to enhance its sustainability efforts[8]. - The company has committed to ensuring uninterrupted power and heat supply during the COVID-19 pandemic, demonstrating its social responsibility[16]. - The company emphasizes the importance of carbon emission trading and aims to enhance its environmental protection efforts[25]. Governance and Compliance - The company has established a strict code of conduct for directors and employees regarding the trading of company securities, which aligns with the Hong Kong Listing Rules[103]. - The independent non-executive directors confirmed their independence in accordance with the Hong Kong Listing Rules[65]. - The company has adopted a code of conduct for securities trading by directors and supervisors, ensuring compliance with the required standards[68]. - The board has established several committees, including the Audit Committee, Remuneration and Assessment Committee, Nomination Committee, and Strategic Committee[110]. - The company emphasizes transparency, accountability, and independence in its governance principles[103]. - The board's composition includes a diverse range of expertise, with one independent non-executive director being an accounting professional[104]. Risk Management and Internal Control - The company has established a risk management and internal control system, which is reviewed at least annually to ensure its effectiveness in safeguarding shareholder interests[118]. - The audit committee is tasked with reviewing the completeness of the company's financial statements and monitoring compliance with legal and regulatory requirements[117]. - The company has implemented a code of conduct for directors and supervisors regarding securities trading, ensuring compliance with the Standard Code[115]. - The board is responsible for the ongoing supervision of the company's risk management and internal control systems[118]. - The company has integrated risk management and internal control into daily operations, continuously assessing risks and reporting to relevant management departments[120]. Shareholder Engagement and Dividend Policy - The company plans to distribute at least 50% of the annual distributable profits in cash from 2020 to 2022, with a minimum dividend of RMB 0.20 per share[18]. - The proposed final cash dividend for the fiscal year ending December 31, 2020, is RMB 0.25 per share, totaling approximately RMB 2.466 billion, subject to shareholder approval[46]. - The company emphasizes a cash dividend policy, prioritizing cash returns to investors, with a minimum cash dividend ratio of 40%[132]. - The company has established a hotline and email for shareholders to directly contact the board for inquiries[135]. Financial Reporting and Audit - The company’s financial statements for the year ended December 31, 2020, are prepared in accordance with International Financial Reporting Standards[64]. - The independent auditor's report confirmed that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2020[140]. - The audit committee reviewed the annual performance and financial statements for the fiscal year ending December 31, 2020[98]. - The company conducted a comprehensive internal control evaluation in 2020, confirming no significant internal control deficiencies were found, ensuring compliance with relevant regulations[121].

Company Profile and Key Financial Indicators [Company Information](index=5&type=section&id=%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF) Huadian Power International Corporation Limited (HDPI) is a comprehensive energy company dual-listed in Shanghai and Hong Kong, with its main office in Beijing - The company is dual-listed on the Shanghai Stock Exchange (**A-share code: 600027**) and the Hong Kong Stock Exchange (**H-share code: 01071**)[12](index=12&type=chunk) [Key Accounting Data and Financial Indicators](index=6&type=section&id=%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) In 2020, operating revenue decreased by 3.11% to RMB 90.744 billion, while net profit attributable to shareholders significantly increased by 22.68% to RMB 4.179 billion Key Accounting Data | Major Accounting Data | 2020 (RMB thousand) | 2019 (RMB thousand) | Year-on-year change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 90,744,016 | 93,654,431 | -3.11% | | Net Profit Attributable to Shareholders | 4,179,447 | 3,406,920 | 22.68% | | Net Cash Flow from Operating Activities | 25,248,152 | 21,376,881 | 18.11% | | Total Assets | 234,611,122 | 229,875,595 | 2.06% | Key Financial Indicators | Major Financial Indicators | 2020 | 2019 | Year-on-year change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan/share) | 0.33 | 0.29 | 13.79% | | Weighted Average Return on Net Assets (%) | 7.03% | 6.46% | Increased by 0.57 percentage points | [Differences in Accounting Data Under Domestic and International Accounting Standards](index=7&type=section&id=%E5%A2%83%E5%86%85%E5%A4%96%E4%BC%9A%E8%AE%A1%E5%87%86%E5%88%99%E4%B8%8B%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%B7%AE%E5%BC%82) In 2020, the company's net profit and net assets differed under Chinese and International Accounting Standards, with IFRS net profit at RMB 4.167 billion and net assets at RMB 73.145 billion after adjustments Accounting Data Differences | Item | Net Profit (RMB thousand) | Net Assets (RMB thousand) | | :--- | :--- | :--- | | **Under Chinese Accounting Standards** | **4,179,447** | **72,088,981** | | Adjustment for business combinations under common control | -249,191 | 2,063,003 | | Adjustment for government grants | 33,592 | -286,801 | | Adjustment for maintenance and safety production funds | 61,603 | 78,320 | | **Under International Accounting Standards** | **4,166,756** | **73,145,361** | [Quarterly Key Financial Data](index=8&type=section&id=%E5%88%86%E5%AD%A3%E5%BA%A6%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE) Q4 2020 saw the highest operating revenue at RMB 26.928 billion but the lowest net profit attributable to parent company shareholders at RMB 547 million Quarterly Financial Data | Financial Indicators (RMB thousand) | Q1 | Q2 | Q3 | Q4 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 22,116,437 | 19,415,049 | 22,284,300 | 26,928,230 | | Net Profit Attributable to Shareholders | 1,189,361 | 1,196,627 | 1,246,097 | 547,362 | [Non-Recurring Gains and Losses Items and Amounts](index=8&type=section&id=%E9%9D%9E%E5%B8%B8%E8%A7%84%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%92%8C%E9%87%91%E9%A2%9D) In 2020, non-recurring gains and losses totaled RMB 508 million, primarily from government grants and other non-operating income/expenses, a significant shift from a 2019 loss Non-Recurring Gains and Losses | Non-Recurring Gains and Losses Items (RMB thousand) | 2020 Amount | 2019 Amount | | :--- | :--- | :--- | | Gains or losses from disposal of non-current assets | 81,716 | -54,072 | | Government grants recognized in current profit or loss | 267,320 | 326,627 | | Other non-operating income and expenses | 237,275 | 15,948 | | **Total** | **508,181** | **-30,989** | Company Business Overview [Principal Business, Business Model, and Industry Conditions](index=10&type=section&id=%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1%E3%80%81%E7%BB%8F%E8%90%A5%E6%A8%A1%E5%BC%8F%E5%8F%8A%E8%A1%8C%E4%B8%9A%E6%83%85%E5%86%B5) The company is a large integrated energy company in China, primarily engaged in power plant construction and operation across 14 provinces, with 74% coal-fired and 26% clean energy capacity Controlling Installed Capacity by Power Type | Power Type | Controlling Installed Capacity (MW) | Proportion | | :--- | :--- | :--- | | Coal-fired generating units | 43,160.0 | ~73.8% | | Gas-fired power generation | 7,340.0 | ~12.6% | | Renewable energy (hydro, wind, solar) | 7,948.0 | ~13.6% | | **Total** | **~58,448.0** | **100%** | - The company primarily generates revenue by selling electricity and heat products in the regions where its power assets are located, accounting for approximately **86% of its main business revenue**[23](index=23&type=chunk) [Analysis of Core Competencies](index=10&type=section&id=%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competencies include its significant scale, advanced energy-saving and environmental protection equipment, extensive management experience, and robust corporate governance - Over **90% of the company's thermal power units are large-capacity, high-efficiency units of 300 MW and above**, with approximately **60% being 600 MW and above**, significantly higher than the national average[25](index=25&type=chunk) - All coal-fired units have achieved **ultra-low emissions**[25](index=25&type=chunk) - As a public company listed in Hong Kong and Shanghai, the company has established an effective internal management and control system, fostering a positive image in the capital market and demonstrating **strong financing capabilities**[26](index=26&type=chunk) Management Discussion and Analysis of Operations [Overall Business Performance Review](index=12&type=section&id=%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) In 2020, total power generation decreased by 3.62% to 207.317 billion kWh, while heat sales increased by 16.98% to 145 million GJ, with all new capacity being clean energy Core Operating Data | Core Operating Data | 2020 | Year-on-year change | | :--- | :--- | :--- | | Power Generation | 207.317 billion kWh | -3.62% | | Heat Sales | 145 million GJ | +16.98% | | New Generating Units | 1,957.56 MW | All clean energy | [Analysis of Key Operating Performance](index=12&type=section&id=%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E4%B8%BB%E8%A6%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5) Total operating revenue decreased by 3.11% to RMB 90.744 billion, while net profit attributable to parent company shareholders surged by 22.68% to RMB 4.179 billion, driven by lower costs [Analysis of Main Business](index=12&type=section&id=%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) In 2020, operating revenue declined due to lower power generation, while operating costs decreased significantly due to a 9.91% reduction in fuel costs, leading to improved gross profit margins Key Financial Items | Item | Current Period (RMB thousand) | Prior Period (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 90,744,016 | 93,654,431 | -3.11 | | Operating Costs | 76,075,537 | 80,482,483 | -5.48 | | Financial Expenses | 4,432,582 | 5,189,379 | -14.58 | | Net Cash Flow from Operating Activities | 25,248,152 | 21,376,881 | 18.11 | Gross Profit Margin by Business Segment | Business Segment | Operating Revenue (RMB thousand) | Operating Costs (RMB thousand) | Gross Profit Margin (%) | Change in Gross Profit Margin from Prior Year | | :--- | :--- | :--- | :--- | :--- | | Power Generation | 70,185,438 | 56,344,739 | 19.72 | Increased by 2.64 percentage points | | Heat Supply | 6,656,108 | 6,921,609 | -3.99 | Increased by 4.45 percentage points | | Coal Sales | 12,540,697 | 12,603,247 | -0.50 | Decreased by 1.17 percentage points | - Sales to the **top five customers accounted for 54.04% of total annual sales**, with State Grid Shandong Electric Power Company being the largest customer at **27.73%**[36](index=36&type=chunk)[37](index=37&type=chunk) [Analysis of Assets and Liabilities](index=15&type=section&id=%E8%B5%84%E4%BA%A7%E3%80%81%E8%B4%9F%E5%80%BA%E6%83%85%E5%86%B5%E5%88%86%E6%9E%90) Total assets reached RMB 234.611 billion, with construction in progress significantly increasing by 34.15% due to higher capital expenditure, and other equity instruments rising by 52.80% Key Balance Sheet Items | Item Name | Current Period End (RMB thousand) | Change from Prior Period End (%) | Main Reason | | :--- | :--- | :--- | :--- | | Construction in Progress | 22,409,048 | 34.15% | Increase in infrastructure projects | | Other Equity Instruments | 24,645,175 | 52.80% | Issuance of perpetual medium-term notes | - As of December 31, 2020, some of the company's subsidiaries pledged electricity and heat collection rights for approximately **RMB 18.44 billion in borrowings**, and generating units, equipment, land, and mining rights for approximately **RMB 3.971 billion in borrowings**[41](index=41&type=chunk) [Analysis of Industry Operating Information](index=16&type=section&id=%E8%A1%8C%E4%B8%9A%E7%BB%8F%E8%90%A5%E6%80%A7%E4%BF%A1%E6%81%AF%E5%88%86%E6%9E%90) Total power generation decreased by 3.62%, with thermal power down 5.10%, while clean energy generation increased; market-based electricity transactions rose to 59.6% Power Generation and Revenue by Type | Type | Power Generation (billion kWh) | Year-on-year | Revenue (RMB thousand) | Year-on-year | | :--- | :--- | :--- | :--- | :--- | | Thermal Power | 189.719 | -5.10% | 64,450,166 | -6.05% | | Wind Power | 6.410 | 7.66% | 3,032,587 | 5.56% | | Hydropower | 10.240 | 22.54% | 1,983,884 | 10.78% | | Photovoltaic Power | 0.948 | 8.35% | 718,801 | 10.22% | | **Total** | **207.317** | **-3.62%** | **70,185,438** | **-5.05%** | - As of the reporting date, the company's controlling installed capacity was **58,448 MW**, comprising **43,160 MW of coal-fired**, **7,340 MW of gas-fired**, and **7,948 MW of renewable energy**[46](index=46&type=chunk) - In 2020, **1,957.56 MW of new installed capacity was added, all from clean energy projects**; **75 MW of coal-fired generating units were shut down**[54](index=54&type=chunk)[55](index=55&type=chunk) - The proportion of **market-based electricity transactions increased from 53.7% to 59.6%** of total on-grid power[59](index=59&type=chunk) [Discussion and Analysis of Future Development](index=27&type=section&id=%E5%85%AC%E5%8F%B8%E5%85%B3%E4%BA%8E%E5%85%AC%E5%8F%B8%E6%9C%AA%E6%9D%A5%E5%8F%91%E5%B1%95%E7%9A%84%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) The company aims to become a first-class energy listed company by optimizing its structure, planning 200 billion kWh generation and RMB 17 billion in investments for 2021, while addressing macroeconomic, coal market, and financing risks - The company's 2021 operating plan projects approximately **200 billion kWh of power generation** and plans to invest around **RMB 17 billion** in power project infrastructure, environmental protection, and energy-saving technological upgrades[70](index=70&type=chunk) - The main risks faced by the company include **macroeconomic and electricity market uncertainties**, **coal market price fluctuations**, and **rising financing costs in the capital market**[71](index=71&type=chunk) Significant Matters [Profit Distribution Plan](index=30&type=section&id=%E6%99%AE%E9%80%9A%E8%82%A1%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E6%88%96%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E9%A2%84%E6%A1%88) The company proposed a 2020 cash dividend of RMB 0.25 per share, totaling RMB 2.466 billion, representing 75.60% of net profit, and plans for annual cash dividends of at least 50% of distributable profit from 2020-2022 Cash Dividend Distribution | Dividend Year | Dividend per 10 shares (RMB, pre-tax) | Cash Dividend Amount (RMB thousand) | Ratio to Net Profit Attributable to Parent (%) | | :--- | :--- | :--- | :--- | | 2020 | 2.50 | 2,465,744 | 75.60% | | 2019 | 1.46 | 1,439,995 | 50.29% | | 2018 | 0.66 | 650,956 | 42.00% | - The company's 2020-2022 shareholder return plan proposes that annual cash dividends will generally be **no less than 50% of the distributable profit** in the consolidated financial statements, with a minimum dividend of **RMB 0.2 per share**[73](index=73&type=chunk) [Material Related Party Transactions](index=33&type=section&id=%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company engaged in various daily operational related party transactions with its controlling shareholder, China Huadian, and its affiliates, all within annual limits, and announced post-period equity sales - In 2020, the company purchased approximately **RMB 5.158 billion in fuel** and approximately **RMB 5.422 billion in engineering equipment and services** from its controlling shareholder, China Huadian, both within annual limits[81](index=81&type=chunk) - As of the end of 2020, the company and its subsidiaries had outstanding borrowings of approximately **RMB 15.422 billion from China Huadian**; the highest daily average deposit balance with Huadian Finance was approximately **RMB 8.901 billion**, both within agreement limits[82](index=82&type=chunk)[83](index=83&type=chunk) - Post-reporting period, on February 26, 2021, the company announced the sale of a **65% equity stake in Ningxia Lingwu** and a **53% equity stake in Ningxia Heating** to China Huadian for a total consideration of approximately **RMB 4.072 billion**[86](index=86&type=chunk) [Social Responsibility](index=40&type=section&id=%E7%A7%AF%E6%9E%81%E5%B1%A5%E8%A1%8C%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB%E7%9A%84%E5%B7%A5%E4%BD%9C%E6%83%85%E5%86%B5) The company actively fulfilled social responsibilities, investing RMB 8.518 million in poverty alleviation and achieving ultra-low emissions for most coal-fired units, despite incurring environmental fines totaling RMB 595,000 - In 2020, the company directly invested **RMB 8.518 million in poverty alleviation efforts**, helping **1,245 individuals escape poverty**[94](index=94&type=chunk)[97](index=97&type=chunk) - Most of the company's coal-fired generating units have achieved **ultra-low emissions**[102](index=102&type=chunk) - During the reporting period, the company was fined a total of **RMB 595,000** for environmental matters, including unorganized emissions[103](index=103&type=chunk) Share Changes and Shareholder Information [Shareholders and Actual Controller Information](index=45&type=section&id=%E8%82%A1%E4%B8%9C%E5%92%8C%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E6%83%85%E5%86%B5) As of 2020 year-end, the company had 122,950 ordinary shareholders, with China Huadian Group Co., Ltd. as the controlling shareholder holding 46.84% of shares Top Shareholders | Shareholder Name | Shares Held at Period End (shares) | Proportion (%) | | :--- | :--- | :--- | | China Huadian Group Co., Ltd. | 4,620,061,224 | 46.84 | | HKSCC Nominees Limited | 1,802,636,924 | 17.35 | | Shandong Development Investment Holding Group Co., Ltd. | 757,226,729 | 7.68 | | China Securities Finance Corporation Limited | 397,071,140 | 4.03 | - The company's controlling shareholder is **China Huadian Group Co., Ltd.**, holding **46.84% of the company's shares**[116](index=116&type=chunk)[451](index=451&type=chunk) Directors, Supervisors, Senior Management, and Employees [Changes in Holdings and Remuneration of Directors, Supervisors, and Senior Management](index=50&type=section&id=%E6%8C%81%E8%82%A1%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5%E5%8F%8A%E6%8A%A5%E9%85%AC%E6%83%85%E5%86%B5) The company experienced frequent changes in key management positions, with minimal shareholdings among directors, supervisors, and senior management, whose total pre-tax remuneration was RMB 6.2926 million - During the reporting period, Mr. Wang Xuxiang was replaced by **Mr. Ding Huande as Chairman**; **Mr. Luo Xiaoqian was appointed as the company's General Manager**[122](index=122&type=chunk)[133](index=133&type=chunk) - As of the end of the reporting period, the total pre-tax remuneration actually received by all directors, supervisors, and senior management receiving compensation from the company was **RMB 6.2926 million**[123](index=123&type=chunk)[132](index=132&type=chunk) [Employee Information](index=61&type=section&id=%E5%91%98%E5%B7%A5%E6%83%85%E5%86%B5) As of the reporting period end, the company and its main subsidiaries employed 27,116 individuals, with production personnel forming the largest group and approximately 49% of employees holding bachelor's degrees or higher Employee Professional Composition | Professional Composition | Number of Employees | | :--- | :--- | | Management Personnel | 6,469 | | Professional and Technical Personnel | 2,189 | | Production Personnel | 17,512 | | **Total** | **27,116** | Corporate Governance [Overview of Corporate Governance](index=62&type=section&id=%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) The company maintains strict adherence to corporate governance regulations, ensuring independent operation from its controlling shareholder through "five separations," and held regular board, supervisory, and general meetings - During the reporting period, the company held **2 general meetings, 11 board meetings, and 6 supervisory board meetings**[141](index=141&type=chunk)[143](index=143&type=chunk)[144](index=144&type=chunk) - The company maintains **"five separations"** (personnel, assets, finance, institutions, and business) from its controlling shareholder, ensuring independent operation[142](index=142&type=chunk) [Internal Control](index=65&type=section&id=%E5%86%85%E9%83%A8%E6%8E%A7%E5%88%B6%E8%87%AA%E6%88%91%E8%AF%84%E4%BB%B7%E6%8A%A5%E5%91%8A) The board deemed internal controls effective as of December 31, 2020, with no significant deficiencies, and Lixin Certified Public Accountants issued an unqualified audit report on financial reporting internal controls - The company disclosed its internal control self-evaluation report, concluding that internal controls were **effective as of December 31, 2020**, with **no significant deficiencies** found[156](index=156&type=chunk)[157](index=157&type=chunk) - Lixin Certified Public Accountants issued a **standard unqualified audit report** on the company's internal controls[158](index=158&type=chunk) Corporate Bonds Information [Overview of Corporate Bonds](index=67&type=section&id=%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) As of the reporting period end, the company had multiple outstanding perpetual or ordinary corporate bonds traded on the Shanghai Stock Exchange, all with timely interest payments Corporate Bonds Overview | Bond Abbreviation | Code | Bond Balance (RMB 100 million) | Interest Rate (%) | Maturity Date | | :--- | :--- | :--- | :--- | :--- | | 18 Huadian Y1 | 143992.SH | 15.00 | 5.00 | 2021-07-17 | | 18 Huadian Y2 | 143993.SH | 15.00 | 5.20 | 2023-07-17 | | 18 Huadian Y3 | 143963.SH | 11.50 | 4.87 | 2021-08-15 | | 18 Huadian Y4 | 143965.SH | 8.50 | 5.05 | 2023-08-15 | | 19HDGJ01 | 155747.SH | 20.00 | 3.58 | 2022-10-17 | [Credit Rating and Bank Credit Lines](index=69&type=section&id=%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8%E8%AF%84%E7%BA%A7%E5%8F%8A%E9%93%B6%E8%A1%8C%E6%8E%88%E4%BF%A1%E6%83%85%E5%86%B5) The company holds an AAA credit rating with a stable outlook and has secured total bank credit lines of RMB 249.8 billion, with RMB 143.6 billion remaining unused - The company's corporate credit rating is **AAA**, with a **stable outlook**[165](index=165&type=chunk) - As of the end of the reporting period, the company had obtained total bank credit lines of **RMB 249.8 billion**, of which **RMB 143.6 billion remained unused**[173](index=173&type=chunk) Financial Report [Audit Report](index=72&type=section&id=%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) Lixin Certified Public Accountants issued a standard unqualified audit report for the 2020 financial statements, with "impairment of non-current assets" identified as a key audit matter due to significant management judgment - Lixin Certified Public Accountants issued a **standard unqualified audit report**[176](index=176&type=chunk) - A key audit matter was **"impairment of non-current assets"**, primarily involving impairment tests for fixed assets, construction in progress, intangible assets, and goodwill, which require significant management judgment[177](index=177&type=chunk)[178](index=178&type=chunk) [Consolidated Financial Statements](index=75&type=section&id=%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) As of 2020 year-end, total assets were RMB 234.611 billion, total liabilities RMB 141.646 billion, and equity attributable to parent company shareholders RMB 72.089 billion, with operating revenue of RMB 90.744 billion and net profit of RMB 4.179 billion Key Consolidated Income Statement Items | Consolidated Income Statement Items (RMB thousand) | 2020 | 2019 | | :--- | :--- | :--- | | Total Operating Revenue | 90,744,016 | 93,654,431 | | Total Operating Costs | 83,401,784 | 88,510,062 | | Total Profit | 7,044,050 | 5,536,575 | | Net Profit | 5,776,735 | 4,438,544 | | Net Profit Attributable to Parent Company Shareholders | 4,179,447 | 3,406,920 | Key Consolidated Cash Flow Statement Items | Consolidated Cash Flow Statement Items (RMB thousand) | 2020 | 2019 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 25,248,152 | 21,376,881 | | Net Cash Flow from Investing Activities | -18,050,882 | -14,785,966 | | Net Cash Flow from Financing Activities | -7,164,373 | -6,826,773 | [Notes to Financial Statements](index=85&type=section&id=%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%99%84%E6%B3%A8) The notes detail significant accounting policies and estimates, including revenue recognition, long-term asset impairment, and financial instruments, along with disclosures on segment information and post-balance sheet events - The company's revenue recognition policy states that **electricity revenue is recognized when electricity is supplied to grid companies**; **heat revenue is recognized when heat is supplied to customers**; and **coal sales revenue is recognized when control of the goods is transferred to the buyer**[264](index=264&type=chunk) - Important accounting estimates and judgments include **impairment of long-term assets**, **allowance for expected credit losses on accounts receivable**, **depreciation and amortization of fixed assets and intangible assets**, and **recognition of deferred income tax assets**[283](index=283&type=chunk) - In February 2021, the company signed an agreement with China Huadian to sell equity stakes in Lingwu Power Generation and Ningxia Heating for a total consideration of approximately **RMB 4.073 billion**[475](index=475&type=chunk) - In March 2021, the company proposed to issue shares and convertible bonds to acquire minority equity stakes in Fuyuan Thermal Power and Mengdong Energy, aiming for **full ownership**[475](index=475&type=chunk)

Financial Performance - The group achieved a revenue of approximately RMB 40.943 billion, a decrease of about 5.36% compared to the same period in 2019[4]. - The profit attributable to equity holders of the company for the period was approximately RMB 2.411 billion, with basic earnings per share of RMB 0.200[4]. - The company's revenue for the period was approximately RMB 40.943 billion, a decrease of about 5.36% year-on-year, primarily due to reduced electricity sales revenue[27]. - The group’s revenue for the six months ended June 30, 2020, was RMB 40,942,846 thousand, a decrease of 5.9% compared to RMB 43,263,433 thousand for the same period in 2019[64]. - Operating profit for the same period was RMB 5,182,313 thousand, an increase of 20.6% from RMB 4,297,375 thousand in the previous year[64]. - The group reported a net profit of RMB 3,162,238 thousand for the six months ended June 30, 2020, compared to RMB 2,100,553 thousand for the same period in 2019, representing a growth of 50.6%[64]. - The company's profit attributable to equity holders for the six months ended June 30, 2020, was RMB 1,974,721 thousand, an increase of 39.4% compared to RMB 1,416,521 thousand for the same period in 2019[99]. - Basic earnings per share for the six months ended June 30, 2020, was RMB 0.200, up from RMB 0.144 in the same period of 2019, representing an increase of 38.9%[99]. Installed Capacity and Operations - The company has a total installed capacity of 56,953.3 MW across 62 operating power plants, with coal-fired capacity at 43,235 MW and gas-fired capacity at 6,878.1 MW[5]. - The company has significant renewable energy capacity totaling 6,840.2 MW, including hydro, wind, and solar power[5]. - The company has a total installed capacity of 6,944.4 MW in Hubei province, with an ownership interest of 82.56%[37]. - The company has a total of 1,481.5 MW installed capacity in Ningxia with a 63.92% ownership in Ningxia New Energy Co., Ltd.[18]. - The company has ongoing construction projects with a planned capacity of 1,716.5 MW for wind power generation[24]. - The company has a diverse portfolio of power plants, including major facilities like Zouxian Power Plant (2,575 MW) and Shiliquan Power Plant (2,120 MW)[6]. Strategic Focus and Development - The group is committed to expanding its renewable energy projects as part of its long-term strategy[5]. - The company continues to evaluate potential mergers and acquisitions to enhance its market position and operational efficiency[5]. - The company is focused on expanding its renewable energy capacity, with several projects in hydropower and wind energy development underway[17]. - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency and service delivery[77]. - The company is focused on strategic mergers and acquisitions to bolster its market position and drive future growth[77]. - The company has allocated resources towards research and development of new products and technologies to meet evolving market demands[77]. Financial Position and Cash Flow - As of June 30, 2020, the total borrowings of the group amounted to approximately RMB 93.114 billion, with a debt-to-asset ratio of approximately 61.14%, a decrease of 4 percentage points from the end of 2019[36]. - The group had cash and cash equivalents of approximately RMB 6.044 billion as of June 30, 2020[36]. - The net cash generated from operating activities for the six months ended June 30, 2020, was RMB 8,770,496 thousand, up from RMB 6,276,958 thousand in the prior year, indicating a growth of about 39.8%[76]. - The company incurred a net cash outflow from investing activities of RMB (6,191,443) thousand for the six months ended June 30, 2020, compared to RMB (4,138,890) thousand in the same period of 2019, reflecting an increase in investment activities[76]. - The net cash generated from financing activities was RMB (3,000,565) thousand for the six months ended June 30, 2020, compared to RMB 426,865 thousand in the same period of 2019[134]. Environmental and Regulatory Compliance - The revised Solid Waste Pollution Prevention and Control Law will take effect in September 2020, increasing the company's environmental protection responsibilities and potential expenditures[41]. - The company will strengthen its environmental protection measures and ensure compliance with national pollution prevention policies[41]. - The company has complied with the environmental, social, and governance requirements set by the Hong Kong Listing Rules during the first half of 2020[60]. Shareholder and Governance Matters - The board of directors proposed not to distribute an interim dividend for the period[5]. - The company did not purchase, sell, or redeem any of its issued securities during the reporting period[55]. - The board of directors and supervisory board underwent a restructuring, with new appointments made effective June 30, 2020[43]. - The company has adopted a code of conduct for securities transactions by its directors, ensuring compliance with required standards[54]. Related Party Transactions - The company has significant related party transactions with its parent company and subsidiaries, including China Huadian Group[137]. - Sales of electricity to subsidiaries amounted to RMB 12,217,000 for the six months ended June 30, 2020, down 35.4% from RMB 18,973,000 in the same period of 2019[145]. - Purchases of electricity from a subsidiary totaled RMB 1,650,000, a decrease of 56.5% compared to RMB 3,796,000 in the prior year[145].