[Definitions](index=4&type=section&id=Section%201%20Definitions) This section defines key technical terms used in the report, providing a foundation for understanding its content - This section defines key technical terms used in the report, including **power supply coal consumption**, **utilization hours**, **power generation**, **controlling installed capacity**, and **plant power consumption rate**, providing a basis for understanding the report's content[7](index=7&type=chunk)[404](index=404&type=chunk) [Company Profile and Key Financial Indicators](index=5&type=section&id=Section%202%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section presents the company's basic information, key financial performance, accounting standard differences, and non-recurring profit and loss items [Company Information](index=5&type=section&id=I.%20Company%20Information) This section provides the company's basic details, including names, legal representative, contact information, and stock listing information Company Basic Information | Item | Information | | :--- | :--- | | Chinese Name | 华电国际电力股份有限公司 | | Chinese Short Name | 华电国际 | | English Name | HUADIAN POWER INTERNATIONAL CORPORATION LIMITED | | Legal Representative | Mr. Wang Xuxiang | | A-Share Listing Exchange | Shanghai Stock Exchange | | A-Share Stock Ticker/Code | 华电国际 / 600027 | | H-Share Listing Exchange | Hong Kong Stock Exchange | | H-Share Stock Ticker/Code | 华电国际电力股份 / 01071 | [Key Accounting Data and Financial Indicators](index=6&type=section&id=VII.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In H1 2020, net profit attributable to shareholders grew significantly despite a decline in operating revenue Key Accounting Data for H1 2020 (Unit: RMB thousand) | Key Accounting Data | Current Period | Prior Year Period (Adjusted) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 41,531,486 | 44,140,958 | -5.91 | | Net Profit Attributable to Shareholders | 2,385,988 | 1,662,874 | 43.49 | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 2,126,905 | 1,600,528 | 32.89 | | Net Cash Flow from Operating Activities | 11,548,801 | 9,368,247 | 23.28 | Key Financial Indicators for H1 2020 | Key Financial Indicators | Current Period (Jan-Jun) | Prior Year Period (Adjusted) | Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 0.198 | 0.146 | Increased by 35.62% | | Basic EPS Excluding Non-recurring Items (RMB/share) | 0.171 | 0.140 | Increased by 22.14% | | Weighted Average Return on Equity (%) | 4.19 | 3.26 | Increased by 0.93 percentage points | | Weighted Average ROE Excluding Non-recurring Items (%) | 3.64 | 3.16 | Increased by 0.48 percentage points | [Accounting Data Differences under Domestic and International Standards](index=6&type=section&id=VIII.%20Accounting%20Data%20Differences%20under%20Domestic%20and%20International%20Standards) This section outlines the differences in net profit and net assets under PRC and International accounting standards H1 2020 Net Profit and Period-end Net Assets Standards Reconciliation (Unit: RMB thousand) | Item | Net Profit (Current Period) | Net Assets (Period-end) | | :--- | :--- | :--- | | **As per PRC Accounting Standards** | **2,385,988** | **67,106,078** | | Business combinations under common control | -121,142 | 2,191,052 | | Government grants | 16,796 | -303,597 | | Maintenance fees, safety production fees | 54,819 | 39,301 | | Separation of "three supplies, one property" | -618 | - | | Tax impact of adjustments | 30,314 | -447,206 | | Attributable to minority interests | 45,278 | -416,163 | | **As per International Accounting Standards** | **2,411,435** | **68,169,465** | - Key differences between domestic and international accounting standards explained: - **Business Combination**: International standards require measurement at fair value, while PRC standards use book value for combinations under common control[20](index=20&type=chunk)[21](index=21&type=chunk) - **Government Grants**: Under IFRS, some grants are recognized as deferred income, while under PRC GAAP, some are credited to capital reserve[20](index=20&type=chunk)[21](index=21&type=chunk) - **Maintenance/Safety Fees**: Under IFRS, these are treated as profit distribution upon provision, while under PRC GAAP, they are expensed in the current period[20](index=20&type=chunk)[21](index=21&type=chunk) - **"Three Supplies, One Property" Separation**: Under IFRS, transferred assets are recognized in current profit/loss, while under PRC GAAP, related losses are offset against equity[20](index=20&type=chunk)[21](index=21&type=chunk) [Non-recurring Profit and Loss Items](index=8&type=section&id=IX.%20Non-recurring%20Profit%20and%20Loss%20Items) The company's non-recurring profit and loss totaled RMB 259 million, mainly from government grants and asset disposals Non-recurring Profit and Loss Items for H1 2020 (Unit: RMB thousand) | Non-recurring P&L Item | Amount | | :--- | :--- | | Gain/Loss on disposal of non-current assets | 25,405 | | Government grants recognized in current profit or loss | 98,681 | | Reversal of impairment provision for individually tested receivables and contract assets | 7,108 | | Gains from entrusted loans | 7,597 | | Other non-operating income and expenses | 161,789 | | Minority interest impact | -16,163 | | Income tax impact | -25,334 | | **Total** | **259,083** | [Company Business Overview](index=9&type=section&id=Section%203%20Company%20Business%20Overview) This section details the company's primary business operations, operating model, industry context, and core competitive strengths [Main Business, Operating Model, and Industry Overview](index=9&type=section&id=I.%20Report%20Period%20Main%20Business%2C%20Operating%20Model%2C%20and%20Industry%20Overview) The company is a large integrated energy firm in China, primarily engaged in constructing and operating power plants - The company's main business is selling electricity and heat products in the regions where its power assets are located, accounting for approximately **87% of its main business revenue**[24](index=24&type=chunk) Controlling Installed Capacity Structure (as of the reporting date) | Energy Type | Controlling Installed Capacity (million kW) | Percentage | | :--- | :--- | :--- | | Coal-fired Power | 43.235 | 76% | | Gas-fired Power | 6.8781 | 12% | | Renewable Energy (Hydro, Wind, Solar) | 6.8402 | 12% | | **Total** | **56.9533** | **100%** | [Core Competency Analysis](index=9&type=section&id=III.%20Core%20Competency%20Analysis%20during%20the%20Reporting%20Period) The company's core competitiveness lies in its scale, advanced equipment, management experience, and strong governance - The company's core competencies include: - **Scale Advantage**: One of the largest listed power generation companies in China by installed capacity, with assets across 14 provinces and a relatively complete industrial chain[25](index=25&type=chunk) - **Advanced Equipment**: Over **90% of its thermal power units are large-capacity, high-efficiency, and environmentally friendly units of 300 MW or above**, with units of 600 MW and above accounting for about 60%, far exceeding the national average[26](index=26&type=chunk) - **Management Experience**: Possesses an experienced management and technical team with extensive experience in power plant construction and operation[27](index=27&type=chunk) - **Corporate Governance**: As a dually-listed company, it has established a standardized internal management and control system, enjoying a good market reputation and strong financing capabilities[27](index=27&type=chunk) [Discussion and Analysis of Operations](index=11&type=section&id=Section%204%20Discussion%20and%20Analysis%20of%20Operations) This section reviews operational performance, business segments, asset and liability status, investments, and key risks [Overall Analysis of Operations](index=11&type=section&id=I.%20Discussion%20and%20Analysis%20of%20Operations) In H1 2020, net profit grew 43.49% to RMB 2.386 billion despite lower power generation and revenue, driven by reduced fuel costs H1 2020 Operating Performance Overview | Indicator | H1 2020 | YoY Change | | :--- | :--- | :--- | | Cumulative Power Generation | 92.976 billion kWh | -8.66% | | On-grid Power Generation | 87.062 billion kWh | -8.53% | | Total Operating Revenue | RMB 41.531 billion | -5.91% | | Operating Costs | RMB 34.570 billion | -9.45% | | Net Profit Attributable to Parent | RMB 2.386 billion | +43.49% | | Basic EPS | RMB 0.198 | +35.62% | - The decrease in power generation was mainly due to the impact of the COVID-19 pandemic and increased external power purchases in the Shandong region[28](index=28&type=chunk) - The company's **power supply coal consumption was 288.52 g/kWh**, significantly lower than the national average, reflecting high operational efficiency[28](index=28&type=chunk) [Company's Controlling Installed Capacity](index=12&type=section&id=I.%20Company's%20Controlling%20Installed%20Capacity) The company's installed capacity is diversified, with a clear trend towards clean energy in its new and under-construction projects Newly Added Installed Capacity in H1 2020 (MW) | Project | Unit Type | Capacity (MW) | | :--- | :--- | :--- | | Shijiazhuang Heating Group | Gas-fired Power | 4 | | Shuoluohe Company | Hydropower | 124 | | Longkou Dongyi Wind Power Co. | Wind Power | 50 | | Shandong New Energy Co. | Wind Power | 40 | | Ningxia New Energy Co. | Wind Power | 100 | | Ningxia New Energy Co. | Solar Power | 70 | | **Total** | **-** | **388** | Major Units Under Construction (MW) | Unit Type | Planned Installed Capacity (MW) | | :--- | :--- | | Coal-fired Power Units | 510 | | Gas-fired Power Units | 1,629 | | Hydropower Units | 168 | | Wind Power Units | 1,716.5 | | Photovoltaic Power Units | 11.3 | | **Total** | **4,034.8** | [Analysis of Main Business](index=17&type=section&id=(I)%20Analysis%20of%20Main%20Business) In H1 2020, operating revenue fell due to lower power generation, but operating profit grew 42.21% as cost reductions outpaced the revenue decline Analysis of Financial Statement Item Changes in H1 2020 (Unit: RMB thousand) | Account | Current Period | Prior Year Period (Restated) | Change (%) | Main Reason | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 41,531,486 | 44,140,958 | -5.91 | Decrease in power generation | | Operating Costs | 34,570,239 | 38,179,877 | -9.45 | Decrease in power generation and coal prices | | Finance Costs | 2,379,309 | 2,623,631 | -9.31 | Reduced interest-bearing debt and financing costs | | Net Cash Flow from Operating Activities | 11,548,801 | 9,368,247 | 23.28 | Increased company profitability | [Analysis of Assets and Liabilities](index=19&type=section&id=(III)%20Analysis%20of%20Assets%20and%20Liabilities) As of June 30, 2020, the company's balance sheet saw significant changes in working capital accounts and debt structure Major Changes in Balance Sheet Items (Unit: RMB thousand) | Item Name | End of Current Period | End of Prior Year Period | Change (%) | Main Reason | | :--- | :--- | :--- | :--- | :--- | | Notes Receivable | 3,201,669 | 1,645,555 | 94.56 | Increased scale of electricity bill settlement via notes | | Contract Liabilities | 493,243 | 1,757,069 | -71.93 | End of heating season, reduced prepaid heating fees | | Employee Benefits Payable | 580,481 | 236,568 | 145.38 | Impact of employee compensation payment schedule | | Non-current Liabilities Due within One Year | 8,621,349 | 13,286,633 | -35.11 | Repayment of medium-term notes and long-term loans | | Other Current Liabilities | 316,107 | 3,573,409 | -91.15 | Repayment of super short-term financing bills | - As of June 30, 2020, certain subsidiaries pledged electricity and heating fee collection rights of approximately **RMB 17.589 billion** and mortgaged power generation units, equipment, land use rights, and mining rights of approximately **RMB 4.162 billion** to secure loans[44](index=44&type=chunk) [Analysis of Investment Status](index=20&type=section&id=(IV)%20Analysis%20of%20Investment%20Status) As of June 30, 2020, the company's long-term equity investment was RMB 11.831 billion, a slight increase from the beginning of the year Significant Changes in Equity Investments (Unit: RMB thousand) | Company Name | Business Scope | Shareholding (%) | Change in Amount | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Huadian Coal Industry Group Co., Ltd. | Coal industry development and supply | 12.98 | 108,276 | 6.64 | | Otog Front Banner Great Wall Coal Mine Co., Ltd. | Sales of coal mining machinery and accessories | 35 | 47,652 | 6.27 | | Guodian Inner Mongolia Dongsheng Thermal Power Co., Ltd. | Power generation, sales, and heating | 20 | 22,031 | 14.12 | | China Huadian Finance Co., Ltd. | Financial services | 16.46 | -54,267 | -4.02 | | Xibaipo Second Power Generation Co., Ltd. | Power generation and sales | 35 | -44,073 | -8.45 | [Analysis of Major Subsidiaries and Investees](index=21&type=section&id=(VI)%20Analysis%20of%20Major%20Subsidiaries%20and%20Investees) Huadian Hubei Power Generation Co., Ltd. was the main subsidiary contributing over 10% to the company's net profit Key Financial Data of Huadian Hubei Power Generation Co., Ltd. (Unit: RMB thousand) | Indicator | Amount | | :--- | :--- | | Total Assets (2020-06-30) | 18,614,493 | | Net Assets (2020-06-30) | 8,370,329 | | Operating Revenue (H1 2020) | 4,577,485 | | Net Profit (H1 2020) | 537,764 | [Potential Risks](index=21&type=section&id=(II)%20Potential%20Risks) The company faces three main risks: electricity market risk, coal market risk, and environmental risk - Key risks and mitigation strategies: - **Electricity Market Risk**: Uncertain power demand due to COVID-19 and trade protectionism, along with pressure from external power purchases and market competition, may impact generation volume and tariffs; the company will enhance marketing and adopt differentiated strategies[51](index=51&type=chunk) - **Coal Market Risk**: Capacity adjustments in major production areas and cross-regional transportation create uncertainty in coal supply and prices; the company will strengthen market analysis and optimize procurement and inventory control[51](index=51&type=chunk) - **Environmental Risk**: Stricter environmental regulations may increase compliance expenditures; the company will rigorously implement environmental policies and enhance facility maintenance to ensure compliance[51](index=51&type=chunk) [Important Matters](index=23&type=section&id=Section%205%20Important%20Matters) This section covers profit distribution, commitment fulfillment, related-party transactions, contracts, and social responsibility initiatives [Profit Distribution Plan](index=23&type=section&id=II.%20Profit%20Distribution%20or%20Capital%20Reserve%20Capitalization%20Plan) The company has no profit distribution or capitalization of capital reserve plan for the first half of 2020 - The Board of Directors has resolved that there will be no profit distribution plan or capitalization of capital reserve for the first half of 2020[4](index=4&type=chunk)[55](index=55&type=chunk) [Fulfillment of Commitments](index=23&type=section&id=III.%20Fulfillment%20of%20Commitments) The company and its controlling shareholder, China Huadian Corporation, have strictly fulfilled all commitments during the reporting period - The controlling shareholder, China Huadian, has committed to injecting its non-listed conventional energy generation assets into the company within three years after they meet the injection criteria to resolve inter-industry competition, and this commitment is in progress[57](index=57&type=chunk) - China Huadian committed not to sell the 1.15 billion A-shares subscribed in the non-public offering on July 18, 2014, for 72 months (until July 18, 2020), and this commitment was strictly fulfilled during the reporting period[57](index=57&type=chunk)[96](index=96&type=chunk) [Significant Related-Party Transactions](index=26&type=section&id=X.%20Significant%20Related-Party%20Transactions) The company engaged in significant related-party transactions, primarily involving fuel and equipment procurement, engineering, and financial services - The company has ongoing daily related-party transactions with its controlling shareholder, China Huadian, and its affiliates in areas such as fuel procurement, engineering services, and financial services, with all transaction amounts within the annual caps[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk) Related-Party Borrowings (Unit: RMB thousand) | Related Party | Relationship | Opening Balance | Current Period Amount | Closing Balance | | :--- | :--- | :--- | :--- | :--- | | China Huadian | Controlling Shareholder | 2,570,000 | 3,830,000 | 6,400,000 | | Huadian Finance | Subsidiary of Parent Company | 8,513,060 | -478,033 | 8,035,027 | | **Total** | | **11,083,060** | **3,351,967** | **14,435,027** | [Major Contracts and Guarantees](index=28&type=section&id=XI.%20Major%20Contracts%20and%20Their%20Performance) The company had no major custody, contracting, or leasing matters, while its guarantee exposure remains low and controllable Total Guarantees (Unit: RMB thousand) | Item | Amount | | :--- | :--- | | Total year-end guarantee balance for subsidiaries (B) | 81,625 | | Total year-end external guarantee balance (A) | 43,575 | | **Total Guarantees (A+B)** | **125,200** | | Total Guarantees as a percentage of Net Assets (%) | 0.14 | [Poverty Alleviation Work](index=30&type=section&id=XII.%20Listed%20Company's%20Poverty%20Alleviation%20Work) In H1 2020, the company actively fulfilled its social responsibilities by investing in targeted poverty alleviation efforts Targeted Poverty Alleviation Achievements in H1 2020 | Indicator | Amount and Progress | | :--- | :--- | | Funds Invested | RMB 4.9738 million | | Value of Materials Donated | RMB 64,500 | | Number of Registered Poor People Lifted out of Poverty | 1,443 people | | Number of Industrial Poverty Alleviation Projects | 8 | | Investment in Industrial Poverty Alleviation Projects | RMB 2.8993 million | [Environmental Information](index=32&type=section&id=XIV.%20Environmental%20Information) The company prioritizes environmental protection, with most coal-fired units achieving ultra-low emissions through continuous investment - The company continues to increase investment in environmental protection facilities for its coal-fired power plants, with the vast majority of units achieving ultra-low emissions and ensuring the normal operation of these facilities[82](index=82&type=chunk)[84](index=84&type=chunk) - As of the reporting date, the company was fined a total of **RMB 595,000** for environmental issues (fugitive emissions and others)[82](index=82&type=chunk)[83](index=83&type=chunk) [Share Capital Changes and Shareholder Information](index=34&type=section&id=Section%206%20Ordinary%20Share%20Capital%20Changes%20and%20Shareholder%20Information) This section provides details on the company's shareholder structure as of the end of the reporting period [Shareholder Information](index=34&type=section&id=II.%20Shareholder%20Information) As of the period-end, the company had 114,783 ordinary shareholders, with China Huadian Corporation as the largest shareholder Top Ten Shareholders at the End of the Reporting Period | Shareholder Name | Number of Shares Held | Percentage (%) | | :--- | :--- | :--- | | China Huadian Corporation Limited | 4,620,061,224 | 46.84 | | HKSCC Nominees Limited | 1,794,747,811 | 18.20 | | Shandong Development & Investment Holding Group Co., Ltd. | 800,766,729 | 8.12 | | China Securities Finance Corporation Limited | 397,071,140 | 4.03 | | Shenergy Company Limited | 142,800,000 | 1.45 | | China National Arts & Crafts Group Corporation Ltd. | 91,000,000 | 0.92 | | Central Huijin Asset Management Ltd. | 77,978,400 | 0.79 | | Shanghai Electric Group Company Limited | 75,000,005 | 0.76 | | National Social Security Fund Portfolio 103 | 65,990,592 | 0.67 | | Caitong Fund - Bank of Ningbo - Cinda Guocui Equity Investment Fund | 43,780,292 | 0.44 | [Information on Preferred Shares](index=37&type=section&id=Section%207%20Information%20on%20Preferred%20Shares) The company had no preferred shares during the reporting period - During the reporting period, the company had no preferred shares[98](index=98&type=chunk) [Directors, Supervisors, and Senior Management](index=38&type=section&id=Section%208%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) This section details the changes in the company's board of directors, supervisory committee, and senior management during the period [Changes in Directors, Supervisors, and Senior Management](index=38&type=section&id=II.%20Changes%20in%20Company%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) The company's board, supervisory committee, and senior management underwent significant personnel changes during the reporting period Key Changes in Directors, Supervisors, and Senior Management | Name | Position | Change | | :--- | :--- | :--- | | Luo Xiaoqian | Director, General Manager | Elected, Appointed | | Peng Xingyu | Director | Elected | | Hao Bin | Director | Elected | | Feng Rong | Director | Elected | | Tian Hongbao | Former Vice Chairman, Director, General Manager | Resigned | | Chen Haibin | Former Director | Resigned | | Tao Yunpeng | Former Director | Resigned | [Information on Corporate Bonds](index=39&type=section&id=Section%209%20Information%20on%20Corporate%20Bonds) This section provides an overview of the company's outstanding corporate bonds, use of proceeds, credit ratings, and debt service capabilities [Basic Information on Corporate Bonds](index=39&type=section&id=I.%20Basic%20Information%20on%20Corporate%20Bonds) As of the period-end, the company had several series of corporate bonds outstanding with a total balance of RMB 7 billion Overview of Outstanding Corporate Bonds | Bond Ticker | Code | Maturity Date | Bond Balance (RMB billion) | Interest Rate (%) | | :--- | :--- | :--- | :--- | :--- | | 18 Huadian Y1 | 143992.SH | 2021-07-17 | 1.50 | 5.00 | | 18 Huadian Y2 | 143993.SH | 2023-07-17 | 1.50 | 5.20 | | 18 Huadian Y3 | 143963.SH | 2021-08-15 | 1.15 | 4.87 | | 18 Huadian Y4 | 143965.SH | 2023-08-15 | 0.85 | 5.05 | | 19HDGJ01 | 155747.SH | 2022-10-17 | 2.00 | 3.58 | [Use of Proceeds from Bond Issuance](index=41&type=section&id=III.%20Use%20of%20Proceeds%20from%20Corporate%20Bond%20Issuance) The proceeds from all issued corporate bonds have been fully used as disclosed in the respective offering circulars - The proceeds from each bond issuance have been fully utilized for their disclosed purposes (repayment of company debt and supplementing working capital) after deducting issuance costs[107](index=107&type=chunk) [Corporate Bond Credit Ratings](index=41&type=section&id=IV.%20Corporate%20Bond%20Credit%20Ratings) The company maintains a AAA corporate credit rating with a stable outlook, and all its issued bonds also carry a AAA rating - The company's corporate credit rating is **AAA** with a stable outlook; all outstanding corporate bonds are also rated **AAA**[108](index=108&type=chunk)[109](index=109&type=chunk) [Financial Indicators Related to Debt Service Ability](index=42&type=section&id=VIII.%20The%20following%20accounting%20data%20and%20financial%20indicators%20as%20of%20the%20end%20of%20the%20reporting%20period%20and%20the%20end%20of%20the%20previous%20year%20(or%20the%20current%20reporting%20period%20and%20the%20same%20period%20of%20the%20previous%20year)) The company's debt service indicators remained robust, with improved liquidity ratios and a stronger interest coverage multiple Key Debt Service Financial Indicators | Key Indicator | End of Current Period / Current Period | End of Prior Year / Prior Year Period | Change | | :--- | :--- | :--- | :--- | | Current Ratio | 0.44 | 0.40 | Increased by 10.00% | | Quick Ratio | 0.39 | 0.35 | Increased by 11.43% | | Asset-Liability Ratio (%) | 61.42 | 65.61 | Decreased by 4.19 percentage points | | EBITDA Interest Coverage Ratio | 4.71 | 3.74 | Increased by 25.94% | [Bank Credit Facilities](index=43&type=section&id=XI.%20Company's%20Bank%20Credit%20Facilities%20during%20the%20Reporting%20Period) The company maintains excellent credit standing and has access to substantial unused credit facilities from major domestic banks - As of the end of the reporting period, the company had total bank credit facilities of **RMB 244.2 billion**, with an unused amount of **RMB 139.4 billion**[116](index=116&type=chunk) [Financial Report](index=44&type=section&id=Section%2010%20Financial%20Report) This section contains the unaudited consolidated financial statements and accompanying notes for the first half of 2020 [Consolidated Financial Statements](index=45&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited H1 2020 consolidated financial statements, showing enhanced profitability and an optimized balance sheet Consolidated Income Statement Core Data (Jan-Jun 2020, Unit: RMB thousand) | Item | Current Period Amount | Prior Period Amount (Restated) | | :--- | :--- | :--- | | Total Operating Revenue | 41,531,486 | 44,140,958 | | Total Operating Costs | 38,191,515 | 41,972,440 | | Operating Profit | 3,835,300 | 2,696,929 | | Total Profit | 4,018,352 | 2,720,180 | | Net Profit | 3,182,069 | 2,174,165 | | Net Profit Attributable to Parent Company Shareholders | 2,385,988 | 1,662,874 | Consolidated Balance Sheet Core Data (as of 2020-06-30, Unit: RMB thousand) | Item | Period-end Balance | Beginning-of-Period Balance | | :--- | :--- | :--- | | Total Assets | 227,832,489 | 229,875,595 | | Total Liabilities | 139,940,743 | 150,820,587 | | Total Equity Attributable to Parent Company Shareholders | 67,106,078 | 61,510,437 | | Total Shareholders' Equity | 87,891,746 | 79,055,008 | Consolidated Cash Flow Statement Core Data (Jan-Jun 2020, Unit: RMB thousand) | Item | Current Period Amount | Prior Period Amount (Restated) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 11,548,801 | 9,368,247 | | Net Cash Flow from Investing Activities | -6,191,443 | -4,138,754 | | Net Cash Flow from Financing Activities | -5,778,870 | -2,646,388 | | Net Increase in Cash and Cash Equivalents | -421,512 | 2,583,105 | [Notes to the Financial Statements](index=55&type=section&id=Notes%20to%20the%20Financial%20Statements) The notes provide detailed explanations of accounting policies and key items in the consolidated financial statements - The company adopted several new accounting standards and interpretations issued by the Ministry of Finance starting January 1, 2020, which did not have a material impact on its financial position or operating results[230](index=230&type=chunk)[232](index=232&type=chunk)[233](index=233&type=chunk) - Certain subsidiaries of the company enjoy preferential tax policies, including a **15% preferential tax rate for Western Development** and "three-year exemption, three-year half" income tax benefits for engaging in state-supported public infrastructure projects[236](index=236&type=chunk)[237](index=237&type=chunk)[238](index=238&type=chunk) - The company has extensive related-party transactions with its controlling shareholder, China Huadian, and its subsidiaries, including procurement/sales, provision/receipt of services, related-party leases, guarantees, and fund borrowing, all conducted within pre-agreed framework agreements[356](index=356&type=chunk)[360](index=360&type=chunk)[361](index=361&type=chunk) [Directory of Documents for Inspection](index=139&type=section&id=Section%2011%20Directory%20of%20Documents%20for%20Inspection) This section lists the reference documents available for inspection, including signed financial statements and public filings - This section lists the available reference documents, including financial statements signed and sealed by the responsible persons, originals of all company documents and announcements publicly disclosed during the reporting period, and the interim report announced on the Hong Kong Stock Exchange[397](index=397&type=chunk)

Capacity and Operations - The total installed capacity of Huadian Power International Corporation is 56,615.3 MW, with coal-fired capacity at 43,235 MW, gas-fired capacity at 6,874.1 MW, and renewable energy capacity at 6,506.2 MW[4]. - The company operates 61 power plants across 14 provinces, autonomous regions, and municipalities in China[4]. - The company has a total workforce of 27,287 employees as of December 31, 2019[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]. - Huadian Power International Corporation has a 69% stake in Zouxian Company, which has an installed capacity of 2,000 MW[5]. - The total installed capacity of Hubei Electric Power Company is 6,944.4 MW, with a company ownership interest of 82.56%[9]. - The installed capacity of Sichuan Huadian Luding Hydropower Company is 920 MW, fully owned by the company[10]. - The company holds a 100% stake in multiple photovoltaic power generation companies with a total capacity of 1,000 MW[9]. - The installed capacity of Guangdong Huadian Shaoguan Thermal Power Company is 700 MW, fully owned by the company[9]. - The company has a 90% ownership in Hebei Huadian Shunde Energy Company, which has an installed capacity of 163.5 MW[9]. - The company operates a total of 8 wind power companies with a combined capacity of 1,000 MW[10]. - The installed capacity of Tianjin Huadian Fuyuan Thermal Power Company is 445.5 MW, fully owned by the company[9]. Financial Performance - The company achieved a revenue of approximately RMB 91.753 billion in 2019, an increase of about 4.96% compared to 2018[17]. - The net profit attributable to shareholders for the year was approximately RMB 3.385 billion, with a basic earnings per share of RMB 0.288[17]. - The total power generation for 2019 was 215.11 million MWh, representing a year-on-year growth of 1.84%[20]. - The average on-grid electricity price was RMB 414.49 per MWh, an increase of 1.16% compared to the previous year[18]. - The company completed the installation of 6,612.9 MW of new capacity in 2019, bringing the total installed capacity to 56,565.3 MW, a growth of 13.24%[18]. - The total coal consumption per unit of electricity generated was 295.28 grams per kWh, a decrease of 3.93 grams per kWh year-on-year[19]. - The company secured approximately 108.18 million MWh of market electricity, accounting for about 53.7% of the total on-grid electricity, an increase of 10.1 percentage points year-on-year[17]. - The company’s sales revenue from electricity was approximately RMB 73.2 billion, an increase of about 5.92% compared to 2018[20]. - The company reported a significant increase in revenue, achieving a total of 17.5 billion RMB for the year, representing a 12% year-over-year growth[30]. Strategic Initiatives - The company plans to expand its renewable energy projects, aiming to increase the share of clean energy in its overall capacity[4]. - Future outlook includes potential mergers and acquisitions to enhance market presence and operational capabilities[4]. - The company is investing in new technologies to improve power generation efficiency and reduce environmental impact[4]. - Huadian Power International Corporation aims to strengthen its market position through strategic partnerships and collaborations in the energy sector[4]. - The company has plans for market expansion and new technology development in renewable energy sectors[10]. - The company plans to continue focusing on quality improvement and efficiency enhancement in 2020, aiming for high-quality transformation and development[19]. - The company expects a stable growth in electricity consumption in 2020, with a projected increase of 4%-5% year-on-year, and a total installed capacity of approximately 2.13 billion kW by the end of the year[23]. - The company plans to achieve an electricity generation volume of approximately 210 to 220 million MWh in 2020, with an investment of about RMB 16 billion in power project infrastructure and environmental technology upgrades[24]. Environmental and Regulatory Compliance - The company emphasizes safety and environmental protection, implementing strict safety production responsibilities and improving energy conservation measures to meet national environmental standards[25]. - Strict adherence to environmental protection laws and regulations will be enforced to meet national environmental standards[26]. - The company is committed to regulatory compliance and risk management, enhancing legal management and internal control systems to mitigate legal risks[25]. - The company has implemented strict environmental policies and improved monitoring platforms to ensure compliance with environmental standards[51]. Governance and Management - The company has established a strategic committee in addition to the audit, remuneration and nomination committees[99]. - The board consists of 5 members in the audit committee, including 2 non-executive directors and 3 independent non-executive directors[99]. - The company has implemented stricter governance measures than those outlined in the Corporate Governance Code, including specific trading rules for directors and employees[98]. - The company emphasizes transparency, accountability, and independence in its governance principles[98]. - The company encourages directors to participate in professional development courses related to corporate governance and compliance[103]. - The company has a structured process for decision-making, requiring a majority or two-thirds approval for significant resolutions[110]. - The board reviews and monitors the training and continuous professional development of directors and senior management[110]. Investments and Acquisitions - The company raised RMB 1 billion from Jianxin Investment for a 45.15% stake in Mengdong Energy, aimed at repaying existing bank loans[72]. - The company secured RMB 1 billion from Nongyin Investment for a 24.05% stake in Ningxia New Energy, intended for repaying non-performing debts[72]. - The company obtained RMB 750 million from the Central Enterprise Poverty Alleviation Fund for a 38.13% stake in Guyuan Wind Power, to repay existing financial liabilities[73]. - The company raised RMB 250 million from the Central Enterprise Poverty Alleviation Fund for a 39.62% stake in Weizhou Company, also for repaying financial liabilities[73]. - The company acquired 100% equity of Wuchang Thermal Power for approximately RMB 571 million, enhancing its operational capacity in natural gas power generation[74]. Financial Management - The company’s net cash inflow from operating activities in 2019 was approximately RMB 15.546 billion, an increase of about RMB 3.897 billion compared to 2018, driven by higher electricity and heat sales revenue[41]. - The company’s financial expenses in 2019 were approximately RMB 5.263 billion, a decrease of about 2.71% from 2018, due to improved financing innovation and cost reduction[34]. - The company has not purchased, sold, or redeemed any of its issued securities during the fiscal year 2019[91]. - The company successfully issued six phases of ultra-short-term financing bonds totaling RMB 16.5 billion with interest rates ranging from 2.10% to 3.20%[89]. - The company issued one phase of medium-term notes with a face value of RMB 3 billion at an interest rate of 4.06%[89]. - The company issued one phase of corporate bonds with a face value of RMB 2 billion at an interest rate of 3.58%[89]. Risk Management - The company believes that its risk management and internal control systems are effective and sufficient as of 2019, in line with the latest requirements for listed companies[120]. - The internal control department conducts annual evaluations covering operations, business, finance, and key procedures, reporting results to management and the board[119]. - The company integrates risk management and internal control into daily operations, continuously assessing risks and developing management strategies[119]. - The audit committee reviews the effectiveness of the risk management and internal control systems, ensuring adequate resources and training for staff involved in accounting and financial reporting[120].

Financial Performance - The total operating revenue for 2019 was RMB 93,654,431 thousand, an increase of 4.86% compared to RMB 89,313,661 thousand in 2018[13] - The net profit attributable to shareholders of the listed company reached RMB 3,406,920 thousand, representing a significant increase of 97.44% from RMB 1,725,565 thousand in the previous year[13] - The cash flow generated from operating activities was RMB 21,376,881 thousand, up 18.84% from RMB 17,987,493 thousand in 2018[13] - The basic earnings per share for 2019 was RMB 0.29, an increase of 81.25% compared to RMB 0.16 in 2018[14] - The weighted average return on net assets was 6.46% for 2019, up 2.77 percentage points from 3.69% in 2018[14] - The net profit after deducting non-recurring gains and losses was RMB 3,437,909 thousand, an increase of 103.09% from RMB 1,692,795 thousand in 2018[13] - The company's total assets increased by 17.40% compared to the previous year, with net assets attributable to shareholders reaching RMB 61,510,437 thousand[13] - The net profit for the current period according to Chinese accounting standards is CNY 3,406,920, an increase from CNY 1,725,565 in the previous period[15] - According to international accounting standards, the adjusted net profit for the current period is CNY 3,385,324, compared to CNY 1,445,736 in the previous period[15] Revenue and Costs - The company's operating costs were approximately RMB 80.48 billion, up about 2.81% year-on-year, primarily due to the increase in newly commissioned units[29] - The company's total operating revenue for the power generation segment reached RMB 73.92 billion, an increase of 5.67% year-on-year, with a gross margin of 17.08%, up by 1.98 percentage points[30] - The heating segment reported operating revenue of RMB 5.71 billion, a year-on-year increase of 15.05%, but with a gross margin of -8.44%, down by 0.75 percentage points[30] - The coal sales segment generated RMB 12.84 billion in revenue, a decrease of 4.14% year-on-year, with a gross margin of 0.67%[30] Assets and Liabilities - The total assets at the end of 2019 amounted to RMB 229,875,595 thousand, reflecting a 1.52% increase from RMB 226,428,520 thousand in 2018[13] - The total liabilities decreased to RMB 150,820,587 thousand from RMB 159,386,669 thousand, a reduction of approximately 5.67%[190] - The company's total liabilities included RMB 789.93 million in accounts payable, which increased by 37.61% year-on-year due to a rise in fuel payment settlements[37] - The total equity increased to RMB 79,055,008 thousand from RMB 67,041,851 thousand, reflecting a growth of approximately 17.91%[190] Cash Flow - The net cash inflow from operating activities was approximately RMB 21.38 billion, an increase of 18.84% compared to the previous year, primarily due to improved company performance[36] - The cash flow from operating activities in Q4 2019 was CNY 6,496,435, indicating a strong operational performance towards the end of the year[18] - The net cash flow from financing activities was negative at RMB 6,826,773 thousand, compared to negative RMB 2,242,029 thousand in the previous period, indicating a worsening of approximately 204.5%[195] Dividends and Shareholder Returns - The company plans to distribute a cash dividend of RMB 0.146 per share, totaling RMB 1,439,995 thousand based on a total share capital of 9,862,976,653 shares[3] - In 2019, the company distributed cash dividends amounting to RMB 1,439,995 thousand, representing 50.29% of the net profit attributable to ordinary shareholders[73] - The cash dividend per 10 shares was RMB 1.46 in 2019, compared to RMB 0.66 in 2018 and RMB 0.18 in 2017[73] Environmental and Social Responsibility - The company emphasizes the importance of environmental protection and compliance with increasingly strict regulations on pollution control[70] - The company has committed to enhancing its poverty alleviation efforts, focusing on project development, employment, and education[108] - The company has committed a total of RMB 48,208.58 thousand for poverty alleviation efforts in 2019, focusing on various initiatives including education and infrastructure[103] Corporate Governance - The company has established a robust investor relations management system to improve transparency and communication with shareholders[156] - The board of directors consists of 12 members, including 4 independent directors, exceeding the legal requirement of one-third[152] - The company has implemented a three-tier internal control assessment mechanism to enhance internal control efficiency[148] Future Outlook - The company expects to achieve an electricity generation volume of approximately 2,100 to 2,200 billion kWh in 2020[69] - The company plans to invest about 16 billion RMB in power generation projects, environmental protection, and energy-saving technology upgrades in 2020[69] - The company anticipates a 4%-5% year-on-year growth in national electricity consumption for 2020[67]

[Business Review and Company Overview](index=2&type=section&id=Business%20Review%20and%20Company%20Overview) The Group reported increased turnover and profit, expanded its power generation assets across 14 provinces, and continued capacity growth with new units and ongoing construction projects [Financial and Operational Highlights](index=2&type=section&id=Financial%20and%20Operational%20Highlights) During this period, the Group achieved year-on-year growth in both turnover and profit, with turnover approximately RMB 43.263 billion, a 4.90% increase, and profit attributable to equity holders of the company approximately RMB 1.638 billion; the Board recommended no interim dividend | Metric | Amount | YoY Change | | :--- | :--- | :--- | | Turnover | RMB 43.263 billion | +4.90% | | Profit attributable to equity holders of the company | RMB 1.638 billion | - | | Profit attributable to shareholders of the company | RMB 1.417 billion | - | | Basic Earnings Per Share | RMB 0.144 | - | - The Board recommended no interim dividend for this period[4](index=4&type=chunk) [Major Assets Overview](index=2&type=section&id=Major%20Assets%20Overview) The Group is one of China's large integrated energy companies, primarily engaged in power plant construction and operation, with generation assets across 14 provinces and a total controlled installed capacity of 53,542.5 MW as of the reporting date, predominantly coal-fired power - The Group's primary business involves constructing and operating power plants, with assets distributed across 14 provinces, autonomous regions, and municipalities nationwide, mainly located in power load centers, heat load centers, or coal-rich areas[4](index=4&type=chunk) | Asset Type | Controlled Installed Capacity (MW) | | :--- | :--- | | Coal-fired Power | 40,885 | | Gas-fired Power | 6,411.1 | | Renewable Energy (Hydro, Wind, Solar, etc.) | 6,246.4 | | **Total** | **53,542.5** | - The report details the specific conditions of the Group's 60 controlled power plants, including installed capacity, company equity, and unit composition for coal-fired, gas-fired, and renewable energy units[5](index=5&type=chunk)[12](index=12&type=chunk) [Capacity Changes and Projects Under Construction](index=14&type=section&id=Capacity%20Changes%20and%20Projects%20Under%20Construction) From the beginning of the year to the reporting date, the Group added 3,590.1 MW of new generating unit capacity, primarily coal-fired and gas-fired, while 5,116.9 MW of various units are under construction, indicating ongoing capacity expansion | Unit Type | New Installed Capacity (MW) | | :--- | :--- | | Coal-fired Power | 1,660 | | Gas-fired Power | 1,746.6 | | Wind Power | 49.5 | | Solar Power | 134 | | **Total** | **3,590.1** | | Unit Type | Planned Installed Capacity (MW) | | :--- | :--- | | Coal-fired Units | 2,350 | | Gas-fired Units | 1,373.6 | | Hydroelectric Units | 354 | | Wind Power Units | 1,039.3 | | **Total** | **5,116.9** | [Management Discussion and Analysis](index=15&type=section&id=Management%20Discussion%20and%20Analysis) The Group's performance benefited from increased power generation and favorable market conditions, leading to profit growth and improved financial leverage, despite facing macroeconomic and market-specific challenges [Macroeconomy and Power Demand](index=15&type=section&id=Macroeconomy%20and%20Power%20Demand) In the first half of 2019, China's macroeconomy maintained growth, but electricity consumption growth slowed, with GDP increasing by 6.3% year-on-year, while total electricity consumption grew by 5.0%, a 4.4 percentage point decrease in growth rate - China's GDP grew by **6.3%** year-on-year in the first half of 2019[18](index=18&type=chunk) - National total electricity consumption increased by **5.0%** year-on-year, with the growth rate decreasing by approximately **4.4 percentage points**; among these, electricity consumption by the tertiary industry and urban and rural residents grew faster, by **9.4%** and **9.6%** respectively[18](index=18&type=chunk) [Production and Operations](index=15&type=section&id=Production%20and%20Operations) During this period, the Group's power generation and on-grid electricity both increased by over 5.5% year-on-year, primarily due to new units, with coal-fired unit utilization hours at 2,202 and coal consumption for power supply significantly below the national average, reflecting high operational efficiency | Metric | Value | YoY Change | | :--- | :--- | :--- | | Power Generation | 101.13 million MWh | +5.54% | | On-grid Electricity | 94.54 million MWh | +5.66% | | Average Utilization Hours of Generating Units | 1,927 hours | - | | Average Utilization Hours of Coal-fired Units | 2,202 hours | - | | Coal Consumption for Power Supply | 294.92 g/kWh | - | [Financial Performance Analysis](index=15&type=section&id=Financial%20Performance%20Analysis) Benefiting from increased power generation, falling coal prices, and rising electricity tariffs, the Group's turnover and operating profit both grew, while some operating expenses like maintenance and staff costs increased significantly, and finance costs decreased [Revenue and Profit](index=15&type=section&id=Revenue%20and%20Profit) Turnover for this period increased by 4.90% year-on-year, primarily driven by a 9.12% growth in electricity sales revenue, while operating profit surged by 23.21% due to falling coal prices, increased power generation, and higher electricity tariffs (excluding tax) | Revenue Item | Amount | YoY Change | | :--- | :--- | :--- | | Electricity Sales Revenue | RMB 34.412 billion | +9.12% | | Heat Sales Revenue | RMB 3.172 billion | +12.81% | | Coal Sales Revenue | RMB 5.680 billion | -17.62% | | **Total Turnover** | **RMB 43.263 billion** | **+4.90%** | - Operating profit was approximately **RMB 4.297 billion**, an increase of approximately **23.21%** year-on-year, primarily due to falling coal prices, increased power generation, and higher electricity tariffs (excluding tax)[20](index=20&type=chunk) [Major Operating Expenses](index=16&type=section&id=Major%20Operating%20Expenses) Fuel costs, the largest expense, increased by 5.87% year-on-year with higher power generation, while maintenance and staff costs rose significantly by 25.14% and 32.33% respectively, and administrative expenses sharply declined due to a higher base in the prior period | Expense Item | Amount (RMB billion) | YoY Change | Primary Reason | | :--- | :--- | :--- | :--- | | Fuel Costs | 21.755 | +5.87% | Increased power generation | | Coal Sales Costs | 5.313 | -18.40% | Changes in coal prices and sales volume | | Depreciation and Amortization | 5.553 | +8.02% | Newly commissioned units and accounting standard changes | | Maintenance, Upkeep, and Inspection Expenses | 1.856 | +25.14% | Increase in consumable material costs | | Staff Costs | 2.854 | +32.33% | Growth in employee remuneration and timing differences in cost recognition | | Administrative Expenses | 0.592 | -26.19% | Impact of coal mine relocation compensation in prior period | [Other Income and Finance Costs](index=17&type=section&id=Other%20Income%20and%20Finance%20Costs) Net other income and gains surged by 56.24% year-on-year, mainly from increased sales of power generation by-products, while finance costs slightly decreased by 1.92% due to lower funding costs; however, profit from associates and joint ventures fell by 28.27%, primarily impacted by reduced earnings from equity-invested coal mining companies - Net other income and gains were approximately **RMB 0.592 billion**, an increase of approximately **56.24%** year-on-year, mainly due to increased sales revenue from power generation by-products such as fly ash[22](index=22&type=chunk) - Finance costs were approximately **RMB 2.650 billion**, a decrease of approximately **1.92%** year-on-year, primarily due to a lower funding cost rate[23](index=23&type=chunk) - Profit from associates and joint ventures was approximately **RMB 0.321 billion**, a decrease of approximately **28.27%** year-on-year, primarily due to the impact of lower earnings from equity-invested coal mining companies[23](index=23&type=chunk) [Financial Position and Liquidity](index=17&type=section&id=Financial%20Position%20and%20Liquidity) As of period-end, the Group secured borrowings through asset pledges and mortgages, with overall debt slightly decreasing and the debt-to-asset ratio falling to 68.40%, while contingent liabilities remained small and cash and cash equivalents were ample [Asset Pledges and Mortgages](index=17&type=section&id=Asset%20Pledges%20and%20Mortgages) As of June 30, 2019, the Group pledged electricity and heat tariff collection rights of approximately RMB 20.073 billion and mortgaged generating units and related assets of approximately RMB 3.374 billion to secure borrowings - Electricity and heat tariff collection rights were pledged to secure borrowings of approximately **RMB 20.073 billion**[24](index=24&type=chunk) - Generating units and related equipment, land use rights, and mining rights were mortgaged to secure borrowings of approximately **RMB 3.374 billion**[24](index=24&type=chunk) [Debt Position](index=18&type=section&id=Debt%20Position) At period-end, the Group's total borrowings were approximately RMB 99.425 billion, with a debt-to-asset ratio of 68.40%, a 1.60 percentage point decrease from end-2018, indicating improved financial leverage | Metric | Amount (RMB) | | :--- | :--- | | Total Borrowings | Approximately **RMB 99.425 billion** | | Debt-to-Asset Ratio | **68.40%** | | Balance of Super Short-term Commercial Papers | Approximately **RMB 9.643 billion** | | Balance of Medium-term Notes Payable | Approximately **RMB 10.480 billion** | | Balance of Lease Liabilities | Approximately **RMB 3.106 billion** | [Contingent Liabilities and Cash Flow](index=18&type=section&id=Contingent%20Liabilities%20and%20Cash%20Flow) The Group has a contingent liability of RMB 43.58 million for a bank loan guarantee, and held approximately RMB 9.203 billion in cash and cash equivalents at period-end - As of June 30, 2019, the Group's subsidiary, Guang'an Company, provided a bank loan guarantee of **RMB 43.58 million** for Sichuan Huaying Mountain Longtan Coal Industry Co., Ltd[26](index=26&type=chunk) - As of June 30, 2019, the Group held cash and cash equivalents of approximately **RMB 9.203 billion**[26](index=26&type=chunk) [Business Outlook and Risks](index=19&type=section&id=Business%20Outlook%20and%20Risks) The Group anticipates positive impacts from national policies on economic growth and financing costs, while actively managing risks related to power and coal markets, funding, and environmental regulations [Business Outlook](index=19&type=section&id=Business%20Outlook) The Group anticipates benefiting in the second half from favorable national policies such as expanded opening-up, increased infrastructure investment, tax cuts, and a relaxed financing environment, which will drive economic growth, enhance operating performance, and reduce financing costs - Favorable national policies provide advantageous conditions for the Group to improve quality and efficiency, including: - Expanded opening-up and increased infrastructure investment driving economic growth - Continued tax cuts and fee reductions boosting operating performance - A relatively relaxed financing environment helping to lower financing costs[27](index=27&type=chunk) [Key Risk Analysis](index=19&type=section&id=Key%20Risk%20Analysis) The Group faces challenges in four areas: power, coal, capital markets, and environmental protection, with uncertain electricity demand and intensified market competition potentially impacting generation efficiency, high coal prices and supply concentration posing systemic risks, regional imbalances in the capital market, and rising environmental standards increasing operating costs - **Electricity Market Risk**: Downward economic pressure leads to uncertain electricity demand growth, and intensified market competition may result in declining power generation efficiency; the Group will strengthen market research and optimize bidding strategies[27](index=27&type=chunk) - **Coal Market Risk**: Coal prices remain high, and production concentration in the "Sanxi" region increases transportation dependence and systemic risks; the Group will adjust its coal procurement strategy, optimize channels, and reduce costs[27](index=27&type=chunk) - **Capital Market Risk**: Although capital market costs are slowly decreasing, regional credit imbalances persist; the Group will broaden financing channels, reduce costs, and control risks[28](index=28&type=chunk) - **Environmental Protection Risk**: Increasingly stringent environmental protection requirements lead to higher operating and maintenance costs for environmental facilities; the Group will strengthen daily management and operation of environmental protection facilities[28](index=28&type=chunk) [Corporate Governance and Shareholder Information](index=20&type=section&id=Corporate%20Governance%20and%20Shareholder%20Information) The company underwent significant board changes and related party transactions, while maintaining a stable shareholder structure and adhering to stringent corporate governance practices [Significant Events](index=20&type=section&id=Significant%20Events) During the reporting period, the company underwent significant board member changes, including resignations and new appointments for the chairman, vice chairman, and several directors, and also injected RMB 0.71064 billion into associate Huadian Jinshajiang Upstream Hydropower Development Co., Ltd. to support its development strategy - The company convened an extraordinary general meeting to elect and appoint Mr. Wang Xuxiang, Mr. Chen Haibin, Mr. Tao Yunpeng, and Mr. Chen Cunlai as company directors[29](index=29&type=chunk) - Former Chairman Mr. Zhao Jianguo, Vice Chairman Mr. Chen Bin, and Non-executive Director Mr. Chu Yu resigned due to work or age reasons[30](index=30&type=chunk) - The company participated in the capital increase of Huadian Jinshajiang, contributing **RMB 0.71064 billion** in cash based on a **12%** equity stake, which constitutes a connected transaction[32](index=32&type=chunk)[33](index=33&type=chunk) [Shareholder Information](index=22&type=section&id=Shareholder%20Information) As of June 30, 2019, controlling shareholder China Huadian Corporation held 45.97% of the company's A shares and 0.87% of H shares, with other major shareholders including Shandong Development Investment Holding Group Co., Ltd. and BlackRock, Inc. | Shareholder Name | Share Class | Shareholding Percentage (of total share capital) | | :--- | :--- | :--- | | China Huadian | A Shares & H Shares | **46.84%** (Total) | | Shandong Development Investment Holding Group Co., Ltd. | A Shares | **8.12%** | | BlackRock, Inc. | H Shares | **1.01%** | - Non-executive Director Mr. Gou Wei personally holds **10,000** of the company's A shares[38](index=38&type=chunk) [Corporate Governance Practices](index=25&type=section&id=Corporate%20Governance%20Practices) The company asserts its corporate governance meets Hong Kong Listing Rules requirements and adopts stricter standards in some areas, such as establishing a strategy committee and formulating specific securities dealing codes for directors, supervisors, and all employees - The company complied with the code provisions of the Corporate Governance Code set out in Appendix 14 of the Hong Kong Listing Rules[45](index=45&type=chunk) - The company's adopted corporate governance is stricter than the code provisions, as evidenced by: - Establishing specific securities dealing codes for directors, supervisors, and employees - Setting up a Strategy Committee in addition to the Audit, Remuneration and Appraisal, and Nomination Committees - Having an Audit Committee composed of five members, exceeding the regular requirement[45](index=45&type=chunk) [Condensed Consolidated Financial Statements](index=27&type=section&id=Condensed%20Consolidated%20Financial%20Statements) The condensed consolidated financial statements, reviewed with an unmodified conclusion, show significant profit growth, a stable financial position, and detailed notes on accounting policy changes, revenue, related party transactions, and liquidity management [Review Report](index=27&type=section&id=Review%20Report) International auditor BDO Limited, Hong Kong, reviewed the Group's interim condensed consolidated financial statements and issued an unmodified review conclusion, deeming the statements prepared in all material respects in accordance with International Accounting Standard 34 - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410[49](index=49&type=chunk) - The review conclusion stated that nothing had come to their attention that caused them to believe the condensed consolidated financial statements were not prepared in all material respects in accordance with International Accounting Standard 34[50](index=50&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=28&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2019, the Group achieved turnover of RMB 43.263 billion, a 4.9% year-on-year increase, with profit for the period significantly growing by 72.2% to RMB 2.101 billion from RMB 1.220 billion in the prior period, and basic earnings per share at RMB 0.144 | Item (RMB thousand) | 2019 H1 (Unaudited) | 2018 H1 (Unaudited) | | :--- | :--- | :--- | | Turnover | 43,263,433 | 41,241,534 | | Operating Profit | 4,297,375 | 3,487,863 | | Profit Before Tax | 2,612,297 | 1,647,526 | | Profit for the Period | 2,100,553 | 1,220,044 | | Profit attributable to equity holders of the company | 1,637,885 | 1,041,312 | | Basic Earnings Per Share (RMB) | 0.144 | 0.106 | [Condensed Consolidated Statement of Financial Position](index=30&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2019, the Group's total assets were RMB 229.308 billion, total liabilities RMB 156.846 billion, and net assets RMB 72.462 billion, showing an increase in net assets compared to end-2018 and maintaining a sound financial position | Item (RMB thousand) | June 30, 2019 (Unaudited) | December 31, 2018 (Audited) | | :--- | :--- | :--- | | Non-current Assets | 200,573,297 | 201,724,007 | | Current Assets | 28,734,422 | 25,772,114 | | **Total Assets** | **229,307,719** | **227,496,121** | | Current Liabilities | 73,928,488 | 75,534,410 | | Non-current Liabilities | 82,917,380 | 83,719,847 | | **Total Liabilities** | **156,845,868** | **159,254,257** | | **Net Assets** | **72,461,851** | **68,241,864** | [Condensed Consolidated Statement of Changes in Equity](index=33&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) During this period, the Group's total equity increased from RMB 68.242 billion at the beginning to RMB 72.462 billion at the end, primarily due to profit for the period, issuance of perpetual capital securities, and non-controlling shareholder contributions, partially offset by dividends paid - Total equity increased from **RMB 68.242 billion** at the end of 2018 to **RMB 72.462 billion** as of June 30, 2019[56](index=56&type=chunk) - Key items in equity changes include: total comprehensive income for the period of **RMB 2.123 billion**, issuance of perpetual capital securities of **RMB 2.994 billion**, and dividends paid of **RMB 0.651 billion**[56](index=56&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=35&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) During this period, the Group generated net cash of RMB 6.277 billion from operating activities, had net cash outflow of RMB 4.139 billion from investing activities, and net cash inflow of RMB 0.427 billion from financing activities, with cash and cash equivalents increasing by RMB 2.565 billion to RMB 9.203 billion at period-end | Item (RMB thousand) | 2019 H1 (Unaudited) | 2018 H1 (Unaudited) | | :--- | :--- | :--- | | Net cash from operating activities | 6,276,958 | 4,249,826 | | Net cash used in investing activities | (4,138,890) | (7,119,171) | | Net cash from financing activities | 426,865 | 2,016,256 | | Increase/(Decrease) in cash and cash equivalents | 2,564,933 | (853,089) | | Cash and cash equivalents at end of period | 9,203,259 | 6,563,712 | [Notes to the Financial Statements](index=36&type=section&id=Notes%20to%20the%20Financial%20Statements) The notes to the financial statements detail accounting policies, key accounting estimates, and specifics of each statement item, including the impact of adopting IFRS 16 "Leases" from January 1, 2019, turnover composition, significant related party transactions, and liquidity risk management measures [Changes in Accounting Policies (IFRS 16)](index=37&type=section&id=Changes%20in%20Accounting%20Policies%20(IFRS%2016)) Effective January 1, 2019, the Group adopted IFRS 16 "Leases" using the modified retrospective approach, resulting in the recognition of approximately RMB 10.025 billion in right-of-use assets and RMB 3.408 billion in lease liabilities at inception, significantly impacting the statement of financial position without restating comparative periods - The Group applied IFRS 16 using the modified retrospective approach, with the cumulative effect of initial application recognized in retained earnings on January 1, 2019, and comparative information not restated[64](index=64&type=chunk) | Impact of Adjustments to Opening Balances as at January 1, 2019 (RMB thousand) | Increase / (Decrease) | | :--- | :--- | | Right-of-use assets | 10,024,834 | | Property, plant and equipment | (4,559,281) | | Prepaid leases | (3,553,529) | | Intangible assets | (1,549,118) | | Lease liabilities | 3,408,478 | | Finance lease payables | (3,014,378) | [Revenue](index=44&type=section&id=Revenue) The Group's turnover primarily derives from electricity, heat, and coal sales, with electricity sales being the main revenue source, accounting for 79.5% of total turnover and achieving a 9.12% year-on-year growth this period | Revenue Category (RMB thousand) | 2019 H1 | 2018 H1 | | :--- | :--- | :--- | | Electricity sales revenue | 34,411,588 | 31,534,768 | | Heat sales revenue | 3,171,501 | 2,811,439 | | Coal sales revenue | 5,680,344 | 6,895,327 | | **Total** | **43,263,433** | **41,241,534** | [Related Party Transactions](index=64&type=section&id=Related%20Party%20Transactions) The Group engages in extensive daily operating transactions with its parent company China Huadian, its fellow subsidiaries, and associates, including purchasing coal, obtaining loans, and paying interest and rent from related parties, while also providing guarantees for related parties and receiving guarantees from the parent company - Significant related party transactions include: purchasing coal from associates and fellow subsidiaries, totaling over **RMB 2.14 billion**; and obtaining loans from associates and fellow subsidiaries, totaling over **RMB 3 billion**[128](index=128&type=chunk)[130](index=130&type=chunk) - At period-end, the Group's outstanding shareholder loans from parent company China Huadian amounted to **RMB 1.75 billion**, and outstanding loans from associate China Huadian Finance amounted to **RMB 7.76 billion**[134](index=134&type=chunk) - The Group provided a bank loan guarantee of **RMB 43.58 million** for associate Longtan Coal Power Company, while also receiving bank loan guarantees of **RMB 2.764 billion** from parent company China Huadian[136](index=136&type=chunk)[137](index=137&type=chunk) [Liquidity Risk Management](index=77&type=section&id=Liquidity%20Risk%20Management) Despite a net current liability of RMB 45.194 billion at the reporting period end, management mitigates liquidity risk by maintaining ample cash reserves and available credit lines, with unused bank credit facilities totaling RMB 139.1 billion and unissued bond quotas of RMB 35 billion at period-end, demonstrating sufficient financing capacity for short-term liquidity needs - At the end of the reporting period, the Group's net current liabilities amounted to **RMB 45.194 billion**[152](index=152&type=chunk) - To manage liquidity risk, as of June 30, 2019, the Group had unused bank credit facilities totaling **RMB 139.1 billion** and unissued bond quotas of **RMB 35 billion**[152](index=152&type=chunk)

[Important Notice](index=3&type=section&id=%E4%B8%80%E3%80%81%20%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report and assume corresponding legal responsibilities[3](index=3&type=chunk) - This company's Q1 2019 report is unaudited[3](index=3&type=chunk) [Company Profile](index=3&type=section&id=%E4%BA%8C%E3%80%81%20%E6%9C%AC%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) This section provides an overview of the company's fundamental information, including key financial data and shareholder structure [Key Financial Data](index=3&type=section&id=2.1%20%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE) In Q1 2019, the company achieved steady growth with revenue up **4.04%** to **RMB 23.38 billion**, net profit attributable to shareholders up **12.60%** to **RMB 774 million**, and strong operating cash flow growth of **16.61%** Q1 2019 Key Financial Data (Unit: Thousand RMB) | Indicator | Current Period | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 23,380,037 | 22,471,788 | 4.04% | | Net Profit Attributable to Shareholders of Listed Company | 773,914 | 687,321 | 12.60% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Items) | 721,903 | 657,586 | 9.78% | | Net Cash Flow from Operating Activities | 6,258,479 | 5,367,078 | 16.61% | | Basic Earnings Per Share (RMB/share) | 0.067 | 0.070 | -4.29% | | Weighted Average Return on Net Assets (%) | 1.54% | 1.63% | Decrease 0.09 percentage points | Q1 2019 Non-recurring Gains and Losses (Unit: Thousand RMB) | Item | Amount for Current Period | | :--- | :--- | | Gains/Losses on Disposal of Non-current Assets | 306 | | Government Grants Recognized in Current Profit/Loss | 74,204 | | Other Non-operating Income/Expenses and Miscellaneous Items | 5,346 | | Impact of Minority Interests and Income Tax | -27,845 | | **Total** | **52,011** | [Shareholder Ownership](index=4&type=section&id=2.2%20%E6%88%AA%E6%AD%A2%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E7%9A%84%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E3%80%81%E5%89%8D%E5%8D%81%E5%90%8D%E8%82%A1%E4%B8%9C%E3%80%81%E5%89%8D%E5%8D%81%E5%90%8D%E6%B5%81%E9%80%9A%E8%82%A1%E4%B8%9C%EF%BC%88%E6%88%96%E6%97%A0%E9%99%90%E5%94%AE%E6%9D%A1%E4%BB%B6%E8%82%A1%E4%B8%9C%EF%BC%89%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) As of Q1 2019, the company had **131,714 shareholders**, with controlling shareholder China Huadian Corporation Limited holding **46.84%**, maintaining a stable equity structure dominated by state-owned legal entities and institutional investors - As of the end of the reporting period, the company had a total of **131,714 shareholders**[6](index=6&type=chunk) Top Three Shareholders' Ownership | Shareholder Name | Number of Shares Held (shares) | Shareholding Percentage (%) | | :--- | :--- | :--- | | China Huadian Corporation Limited | 4,620,061,224 | 46.84% | | Hong Kong Securities Clearing Company Nominees Limited | 1,754,686,622 | 17.79% | | Shandong Development Investment Holding Group Co., Ltd | 800,766,729 | 8.12% | [Significant Events](index=5&type=section&id=%E4%B8%89%E3%80%81%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This section details significant changes in the company's financial performance and balance sheet items, along with their underlying causes [Analysis of Significant Changes in Key Financial Indicators](index=5&type=section&id=3.1%20%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8%E7%9A%84%E6%83%85%E5%86%B5%E5%8F%8A%E5%8E%9F%E5%9B%A0) During the reporting period, revenue increased by **4.04%** due to higher power generation income, driving operating profit and net profit up by **35.61%** and **38.55%** respectively, though net profit attributable to parent company shareholders decreased by **3.20%** after excluding perpetual bonds - Operating revenue increased by **4.04%** year-on-year to **RMB 23.38 billion**, primarily due to increased power generation business revenue[8](index=8&type=chunk) - Net profit attributable to parent company shareholders was **RMB 774 million**, a year-on-year increase of **12.60%**; however, after excluding income from holders of equity instruments such as perpetual bonds, the actual net profit was **RMB 665 million**, a year-on-year decrease of **3.20%**[8](index=8&type=chunk) - Investment income decreased by **36.52%** year-on-year, mainly due to reduced income from associate coal mines[8](index=8&type=chunk) - Minority interest income significantly increased by **204.05%** year-on-year, primarily due to structural differences in shareholding ratios and uneven profit realization among subsidiaries[8](index=8&type=chunk) Significant Balance Sheet Item Changes (vs. Beginning of Period) | Item | Change (%) | Primary Reason | | :--- | :--- | :--- | | Deferred Income Tax Assets | +34.54% | Provision for deferred income tax assets on future deductible losses | | Contract Liabilities | -80.99% | Decrease in advance heating fees due to end of heating season | | Employee Compensation Payable | +123.40% | Employee compensation growth linked to operating performance | | Other Current Liabilities | +33.47% | Increase in super short-term commercial papers | [Appendix](index=7&type=section&id=%E5%9B%9B%E3%80%81%20%E9%99%84%E5%BD%95) This section includes the company's unaudited financial statements for Q1 2019, along with details on the impact of new accounting standards [Financial Statements](index=7&type=section&id=4.1%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the company's unaudited consolidated and parent company balance sheets, income statements, and cash flow statements for Q1 2019, reflecting financial position, operating results, and cash flows [Consolidated Balance Sheet](index=7&type=section&id=%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of March 31, 2019, total assets were **RMB 224.91 billion**, total liabilities **RMB 157.08 billion**, with a debt-to-asset ratio of **69.84%**, and total equity attributable to parent company owners increased by **1.48%** from year-end Consolidated Balance Sheet Key Items (Unit: Thousand RMB) | Item | March 31, 2019 | December 31, 2018 | | :--- | :--- | :--- | | Total Assets | 224,912,140 | 225,025,836 | | Total Liabilities | 157,081,574 | 158,426,190 | | Total Equity Attributable to Parent Company Owners | 52,798,663 | 52,031,011 | | Total Equity | 67,830,566 | 66,599,646 | [Parent Company Balance Sheet](index=9&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of March 31, 2019, the parent company's total assets were **RMB 86.86 billion**, total liabilities **RMB 43.51 billion**, and total owner's equity **RMB 43.35 billion** Parent Company Balance Sheet Key Items (Unit: Thousand RMB) | Item | March 31, 2019 | December 31, 2018 | | :--- | :--- | :--- | | Total Assets | 86,859,968 | 86,105,749 | | Total Liabilities | 43,505,779 | 42,612,033 | | Total Equity | 43,354,189 | 43,493,716 | [Consolidated Income Statement](index=11&type=section&id=%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) In Q1 2019, total operating revenue was **RMB 23.38 billion** (up **4.04%**), operating profit **RMB 1.41 billion** (up **35.61%**), net profit **RMB 1.10 billion** (up **38.55%**), and net profit attributable to parent company shareholders **RMB 774 million** (up **12.60%**) Consolidated Income Statement Key Items (Unit: Thousand RMB) | Item | Q1 2019 | Q1 2018 | | :--- | :--- | :--- | | Total Operating Revenue | 23,380,037 | 22,471,788 | | Operating Profit | 1,409,983 | 1,039,712 | | Total Profit | 1,454,973 | 1,048,920 | | Net Profit | 1,101,542 | 795,074 | | Net Profit Attributable to Parent Company Shareholders | 773,914 | 687,321 | [Parent Company Income Statement](index=13&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E5%88%A9%E6%B6%A6%E8%A1%A8) In Q1 2019, parent company operating revenue was **RMB 2.90 billion**, a slight decrease year-on-year, resulting in an operating loss of **RMB 135 million** and a net loss of **RMB 139 million**, widening the loss from the prior period Parent Company Income Statement Key Items (Unit: Thousand RMB) | Item | Q1 2019 | Q1 2018 | | :--- | :--- | :--- | | Operating Revenue | 2,899,266 | 2,954,142 | | Operating Profit | -134,886 | -31,392 | | Net Profit | -139,259 | -32,284 | [Consolidated Cash Flow Statement](index=14&type=section&id=%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) In Q1 2019, net cash flow from operating activities was **RMB 6.26 billion**, up **16.61%**, indicating stronger core business cash generation, with net cash outflows from investing and financing activities of **RMB 2.97 billion** and **RMB 2.09 billion** respectively Consolidated Cash Flow Statement Key Items (Unit: Thousand RMB) | Item | Q1 2019 | Q1 2018 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 6,258,479 | 5,367,078 | | Net Cash Flow from Investing Activities | -2,965,955 | -3,526,242 | | Net Cash Flow from Financing Activities | -2,086,745 | -1,365,395 | | Net Increase in Cash and Cash Equivalents | 1,205,779 | 475,441 | [Parent Company Cash Flow Statement](index=16&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) In Q1 2019, parent company net cash flow from operating activities was **RMB 452 million**, a significant decrease from **RMB 1.23 billion** in the prior period, with net cash outflows from investing activities of **RMB 811 million** and net cash inflows from financing activities of **RMB 818 million** Parent Company Cash Flow Statement Key Items (Unit: Thousand RMB) | Item | Q1 2019 | Q1 2018 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 452,134 | 1,226,857 | | Net Cash Flow from Investing Activities | -811,107 | -1,027,845 | | Net Cash Flow from Financing Activities | 817,826 | -718,129 | | Net Increase in Cash and Cash Equivalents | 458,853 | -519,117 | [Impact of Accounting Standard Changes](index=18&type=section&id=4.2%20%E9%A6%96%E6%AC%A1%E6%89%A7%E8%A1%8C%E6%96%B0%E7%A7%9F%E8%B5%81%E5%87%86%E5%88%99%E8%B0%83%E6%95%B4%E9%A6%96%E6%AC%A1%E6%89%A7%E8%A1%8C%E5%BD%93%E5%B9%B4%E5%B9%B4%E5%88%9D%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9B%B8%E5%85%B3%E9%A1%B9%E7%9B%AE%E6%83%85%E5%86%B5) The company adopted the revised "Accounting Standard for Business Enterprises No. 21 - Leases" from January 1, 2019, recognizing **RMB 4.99 billion** in "Right-of-Use Assets" and **RMB 2.79 billion** in "Lease Liabilities" on the consolidated balance sheet, with no impact on owner's equity - The company began implementing the revised "Accounting Standard for Business Enterprises No. 21 - Leases" issued by the Ministry of Finance in 2018, effective January 1, 2019[29](index=29&type=chunk) Major Impact of New Lease Standard on Consolidated Financial Statements as of January 1, 2019 (Unit: Thousand RMB) | Affected Item | Impact Amount | Adjusted Amount | | :--- | :--- | :--- | | Right-of-Use Assets | +4,988,977 | 4,988,977 | | Fixed Assets | -4,559,281 | 138,416,482 | | Lease Liabilities (Non-current) | +2,705,719 | 2,705,719 | | Non-current Liabilities Due Within One Year | +81,339 | 14,105,696 | | Long-term Payables | -2,392,958 | 585,417 |

Operational Overview - The company operates a total of 60 power plants with a controlling installed capacity of 51,570.5 MW, including 40,225 MW from coal-fired generation and 5,118.1 MW from gas-fired generation[6]. - The renewable energy generation capacity amounts to 6,227.4 MW, which includes hydro, wind, and solar power projects[6]. - The company has a total workforce of 27,386 employees as of December 31, 2018[6]. - The company has significant ownership stakes in various power plants, with the highest being 100% in several facilities, including the Zouxian Power Plant (2,575 MW) and the Shiliquan Power Plant (2,060 MW)[7]. - The company has a controlling interest of 69% in the Zouxian Company, which has an installed capacity of 2,000 MW[7]. - The company reported a total of 5,906.4 MW capacity from the Hubei Company, with an ownership interest of 82.56%[10]. - The installed capacity of Huadian International Power Co., Ltd. in Hubei includes 2,570 MW from Xiangyang Company, with a 60.10% ownership stake[12]. - The company has a total of 1,311.5 MW from Ningxia New Energy Company, fully owned by Huadian International[13]. - The company operates a total of 660 MW from Jiangling Company, fully owned[12]. - The installed capacity of Huadian's wind power projects includes 99.3 MW from Longkou Wind Power Company, with a 65% ownership stake[14]. Financial Performance - The group's revenue for 2018 was approximately RMB 87.419 billion, an increase of about 11.41% compared to 2017, with electricity sales revenue of RMB 69.111 billion, up 12.13% year-on-year[18]. - The operating profit for 2018 was approximately RMB 6.269 billion, an increase of about 43.16% year-on-year, primarily due to increased power generation and higher grid electricity prices[18]. - The net profit attributable to shareholders for the year was approximately RMB 1.446 billion, with basic earnings per share of RMB 0.132[18]. - The company reported a significant increase in revenue, achieving a total of 10 billion RMB for the year, representing a 15% year-over-year growth[32]. - The company’s revenue for the year ended December 31, 2018, was RMB 87,419,418 thousand, an increase of 11.3% from RMB 78,463,912 thousand in 2017[155]. - Operating profit for 2018 was RMB 6,268,605 thousand, up 43.1% from RMB 4,378,937 thousand in 2017[155]. - Net profit for the year was RMB 1,912,032 thousand, representing a significant increase of 174.3% compared to RMB 694,476 thousand in 2017[155]. - The total comprehensive income for the year was RMB 1,896,138 thousand, an increase from RMB 672,141 thousand in 2017[155]. Investment and Expansion Plans - The company plans to expand its renewable energy projects to enhance its sustainability and reduce carbon emissions[6]. - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its operational capabilities[6]. - Approximately RMB 16 billion is planned for investment in 2019, with about 68% allocated to power project infrastructure, 27% to environmental protection and energy-saving technology upgrades, and 5% to other projects[26]. - The company is focused on expanding its power generation and heating services across China, leveraging its established infrastructure[164]. - The company is actively evaluating potential mergers and acquisitions to enhance its market position and operational capabilities[164]. Environmental and Sustainability Initiatives - The company aims to transition from scale expansion to efficiency improvement, focusing on high-quality transformation and development to become a competitive integrated energy company[25]. - The management team emphasized the importance of sustainability initiatives, with a goal to reduce carbon emissions by 30% by 2030[32]. - Environmental protection policies are becoming stricter, requiring higher standards for the company's projects and operations[27]. - The company will focus on enhancing ecological and environmental self-discipline and improving the management of environmental protection facilities[27]. - The company emphasizes the importance of legal compliance in asset acquisitions, project development, and contract management to mitigate legal risks[26]. Governance and Compliance - The company emphasizes strict adherence to corporate governance principles, achieving compliance with the Hong Kong Listing Rules and maintaining a governance level that exceeds the requirements of the Corporate Governance Code[101]. - The board consists of 11 members, including 4 independent non-executive directors, ensuring a strong balance of oversight and independence[103]. - The company has established a Securities Trading Code for directors and employees, which is stricter than the standard code outlined in the Hong Kong Listing Rules[101]. - The independent non-executive directors possess extensive skills and experience, with one being an accounting professional, enhancing the board's ability to provide independent judgment[104]. - The company has implemented a comprehensive investor relations management system to enhance communication with shareholders[101]. Risk Management - The company has established a risk management and internal control system, which is reviewed at least annually to ensure its effectiveness[119]. - The risk management system aims to manage rather than completely eliminate risks, providing reasonable assurance against significant misstatements or losses[120]. - The internal control department conducts annual evaluations covering operations, business, finance, and major procedures[121]. - The management is responsible for the design, implementation, and monitoring of the risk management and internal control systems[122]. Shareholder Engagement - The company allows shareholders holding more than 10% of shares to request the convening of an extraordinary general meeting within 10 days of submitting a written request[138]. - The company’s last annual general meeting was held on June 26, 2018, in Beijing, where the chairman addressed shareholder questions[139]. - The company is committed to enhancing shareholder value, with plans to increase dividends by 10% in the upcoming fiscal year[32]. Financial Reporting and Audit - The independent auditor's report confirmed that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2018[145]. - The financial statements were prepared in accordance with International Financial Reporting Standards (IFRS), ensuring compliance and transparency[165]. - The company’s annual report for 2018 was published in April 2019, providing comprehensive financial information[143]. - The audit committee reviewed the group's annual performance and financial statements for the fiscal year ending December 31, 2018[96]. Employee and Compensation - The total number of employees in the group as of December 31, 2018, was 27,386, with a focus on performance-based compensation and a fair distribution mechanism[130]. - Independent non-executive directors received a pre-tax allowance of approximately RMB 80,000 each in 2018[131]. - The company has implemented an active profit distribution policy, prioritizing cash dividends, with a minimum cash dividend ratio of 40% during profit distribution[136].

2018 年年度报告 公司代码：600027 公司简称：华电国际 华电国际电力股份有限公司 2018 年年度报告 1/181 2018 年年度报告 重要提示 一、 本公司董事会、监事会及董事、监事、高级管理人员保证年度报告内容的真实、准确、完 整，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 二、 公司全体董事出席董事会会议。 三、 立信会计师事务所(特殊普通合伙)为本公司出具了标准无保留意见的审计报告。 四、 公司负责人田洪宝先生、主管会计工作负责人冯荣先生及会计机构负责人（会计主管人员） 丁圣民先生声明：保证年度报告中财务报告的真实、准确、完整。 五、 经董事会审议的报告期利润分配预案或公积金转增股本预案 按照母公司国内会计报告净利润提取10%的法定公积金人民币75,864千元；建议2018年度派发股 息每股人民币0.066元（以总股本9,862,976,653股为基数），总额合计人民币650,956千元。 六、 前瞻性陈述的风险声明 √适用 □不适用 本年度报告涉及未来计划等前瞻性陈述，本公司郑重声明该计划不构成本公司对投资者的实质承 诺，请投资者注意投资风险。 七、 是否存在被控 ...