China Yangtze Power Co. Ltd.

Annual Report • Apr 29, 2022

I. The Board of Directors and Board of Supervisors, as well as directors, supervisors, and senior executives of the Company guarantee that the present annual report is true, accurate, and complete in contents without the existence of false records, m... II. ShineWing Certified Public Accountants LLP has provided the Company with a standard and unqualified auditor’s report. III. Lei Mingshan, the Company responsible person, Zhan Pingyuan, the person in charge of accounting work, and Zhang Na, the leading member of the accounting body (accountant in charge) guarantee the truth, accuracy, and integrity of financial report... IV. Profit Distribution Plan or Capital Reserves Share Capitalization Plan for the reporting period, adopted by the Board of Directors via resolution. V. Forward-looking Risk Statement VI. Did it exist that the controlled shareholders and their related parties occupy funds non-operationally? VII. Did it exist that the security was given externally in violation of the stipulated decision-making process? VIII. Did it exist that more than half of the directors are unable to guarantee the authenticity, accuracy, and completeness of the Annual Report disclosed by the Company? IX. Major Risk Warning Section I Definitions I. Definitions Section II Company Profile and Major Financial Indexes I. Company Information II. Contact and Contact Information III. A Brief Introduction to Basic Information IV. Information Disclosure and Place for Preparation V. Stock Profile/Depository Receipts VI. Other Related Information VII. Principal Accounting Data and Financial Index in the Recent Three Years (I) Principal Accounting Data (II) Principal Financial Indexes VIII. Discrepancy of Accounting Data under the Accounting Standards at Home and Abroad (I) Discrepancy between the net profits and the net assets attributable to shareholders of the Listed Company in the Financial Reports disclosed simultaneously according to the International Accounting Standard and China Accounting Standard (II) Discrepancy between the net profits and the net assets belonging to shareholders of the Listed Company in the Financial Reports disclosed simultaneously according to foreign accounting standards and China Accounting Standards (III) Explanation on differences between foreign and domestic accounting standards: IX. 2021 Principal Financial Data in Quarters X. Items of Non-recurring Profits and Losses and the Relevant Amounts XI. Items Measured by Fair Value XII. Miscellenaous Section III Discussion and Analysis by Management I.Discussion and Analysis on Operations II. Industry of the Company during the Reporting Period III. Business during the Reporting Period IV. Core Competitiveness Analysis in the Reporting Period V. Main Operation Conditions in the Reporting Period (I) Analysis of Main Business 1. Analysis of Changes in Items Relevant to Statements of Profit and Cash Flow 2. Income and Cost Analysis (1). Performance of principal businesses by segment, by product, by region and by sales model (2). Analytical statement of production and sales volume (3). Performance for major purchase contracts and major sales contracts (4). Cost analysis (5). Changes in the scope of consolidation due to changes in the shareholdings of major subsidiaries during the reporting period (6). Major changes or adjustments in business, product or service of the Company during the reporting period (7). Information on main sales customers and main suppliers 3. Cost 4. R&D Investment 5. Cash flow (II) Explanation on Material Changes in Profits Resulted from Non-principal Activities (III) Analysis on Assets and Liabilities 1. Information on assets and liabilities 2. Overseas assets (1) Asset size (2) Notes to the high proportion of oversea assets 3. Restrictions on major assets by the end of the reporting period 4. Other descriptions (IV) Industry Operational Information Analysis Power industry operational information analysis 1. Information on electricity quantity and price in the reporting period 2. Information on electricity quantity, income, and cost in the reporting period 3. Installed capacity analysis 4. Generating efficiency analysis 5. Information on the capital expenditures 6. Market-oriented Transaction of Electricity 7. Operation of Electricity Selling Business 8. Other descriptions (V). Investment Analysis Overall analysis on foreign equity investment 1. Major equity investment 2. Major non-equity investment 3. Financial assets at fair value 4. Specific progress of material asset reorganization and integration during the reporting period (VI) Sales of Material Assets and Equity (VII) Analysis of Main Holding Companies and Joint-stock Companies (VIII) Structured Entities Controlled by the Company VI. Discussion and Analysis by the Company on Future Development of the Company (I)Industrial Pattern and Development Trend (II)Company's Development Strategy (III)Operating Plan (IV)Possible Risks (V)Others VII. Description for Situation and Cause that the Company Did Not Disclose According to the Criterion Due to Inapplicable Criteria or Special Causes Concerning the State Secret and Business Secret Section IV Corporate governance I. Explanation on the Corporate Governance II. Specific measures taken by the Controlling Shareholder and the Actual Controller to ensure the independence of the Company's assets, personnel, finance, departments, and business, as well as the solutions, work schedule, and follow-up work plan m... III. Introduction to General Meeting of Shareholders IV. Directors, Supervisors, and Senior Executives (I) Changes in Shareholding and Compensation of Directors, Supervisors, and Senior Executives Currently in Office and Leaving Posts in the Reporting Period (II) Service status of directors, supervisors, and senior executives currently in office and leaving posts in the reporting period (III) Compensation of Directors, Supervisors and Senior Management (IV) Change of Director, Supervisor and Senior Management of the Company (V) Explanation on the Punishment from the Securities Regulatory Institutions in the Last Three Years (VI) Miscellenaous V. Board Meetings during the Reporting Period VI. About Directors’ Performance of Duties (I) About Directors’ Attendance at the Board Meeting and General Meeting of Shareholders (II) Objection to the Company’s related issues raised by directors (III) Miscellenaous VII. Special Committees under the Board VIII. Description of the Company’s Risks Found by the Board of Supervisors IX. Employees of the Parent Company and Main Subsidiaries at the End of the Reporting Period (I) Employee status (II) Remuneration Compensation policy (III) Training plan (IV) Labor outsourcing X. Profit Distribution or Capital Reserve Capitalizing Plan (I) Development, Implementation or Adjustment of Cash Dividends Policy (II) Special Description of Cash Dividend Policy (III) The payoff in the reporting period and profit of the parent company available for distribution to the shareholders was positive, but in case of no Stock Cash Dividend Distribution Plan presented, the Company should, in detail, disclose the caus... XI. The Company’s Equity Incentive Plan, Employee Shareholding Plan or other Employee Incentives and Influence (I) Relevant incentive matters already disclosed in the temporary bulletin and without progress or changes of subsequent execution (II) Information on incentives not disclosed in the temporary bulletin or with subsequent Progress (III) Equity incentives granted to the directors and senior management during the reporting period (IV) About the establishment and implementation of the evaluation system and incentive mechanism for senior management in the reporting period XII. Establishment and Implementation of Internal Control System during the Reporting period XIII. Management Control over the Subsidiaries During the Reporting Period XIV. About the Internal Control Audit Report XV. Rectification of Problems Identified in the Self-inspection over the Company's Special Governance Measures XVI. Miscellenaous Section V Environmental and Social Responsibility I. Environmental Information (I) Explanations on the environment protection of the Company belonging to the heavy pollution units as prescribed by the environment protection department and its major subsidiaries (II) Explanations on the environmental protection of companies other than the heavy pollution units 1. Administrative penalties imposed on environmental problems 2. Disclosure of other environmental information with reference to heavy pollution units 3. Reasons for not disclosing other environmental information (III) Relevant information that is conducive to ecological protection, pollution prevention, and environmental responsibility fulfillment (IV) Measures and effects to reduce carbon emissions during the reporting period II. Social Responsibility III. Specific Conditions of Consolidation and Expansion of Poverty Alleviation and Rural Revitalization Section VI Important Matters I. Performance of Commitment Matters (I) Commitment Matters of the Company’s Actual Controllers, Shareholders, Related Parties, Purchasers, the Company and Other Related Parties in the Reporting Period or Lasting to the Reporting Period (II) If a profit forecast can be carried out for the Company’s assets or its projects, and the reporting period is still in the period of profit forecast, the Company shall explain (III) Completion of performance commitments and their impact on goodwill impairment assessment II. Non-operating Funds Occupied by Controlling Shareholders and Other Related Parties During the Reporting Period III. Illegal Guarantee IV. Explanations of the Company's Board on the “Nonstandard Auditor’s Report” provided by the Accounting Firm V. Analytical descriptions of the Company on the causes and influence of the Accounting Policy, Accounting Estimate Alterations or Major Accounting Error Correction (I) Analytical descriptions of the Company on the causes and influence of the accounting policy and accounting estimate alterations (II) Analytical descriptions of the company on the causes and influence of major accounting error correction (III) Communication with former accounting firms (IV) Other notes VI. Employment and Dismissal of Accounting Firms VII. Facing the Risk of Delisting (I) Causes of the delisting risk warning (II) Countermeasures planned to be taken by the Company (III) Circumstances and reasons for delisting VIII. Relevant Matters of Bankruptcy Reorganization IX. Major Litigation and Arbitration Matters X. Penalty to and Rectification of the Listed Company and Its Directors, Supervisors, Senior Management, Controlling Shareholders and Actual Controllers Due to Suspected Violation of Laws and Regulations XI. Explanations on the Honesty Condition of The Company and Its Controlling Shareholders and Actual Controllers in the Reporting Period XII. Major Related Party Transactions (I) Related party transaction relevant to daily management 1. Matters already disclosed in the temporary bulletin and without progress or changes of subsequent execution 2. Matters already disclosed in the temporary bulletin but with progress or changes of subsequent execution 3. Matters not disclosed in the temporary bulletin (II) Related Party Transactions Accrued from the Assets or Equity Acquisition and Sales 1. Matters already disclosed in the temporary bulletin and without progress or changes of subsequent execution 2. Matters already disclosed in the temporary bulletin but with progress or changes of subsequent execution 3. Matters not disclosed in the temporary bulletin 4. Where the performance is agreed, the achievements during the reporting period shall be disclosed (III) Major Related Party Transactions of Joint Investments Abroad 1. Matters already disclosed in the temporary bulletin and without progress or changes of subsequent execution 2. Matters already disclosed in the temporary bulletin but with progress or changes of subsequent execution 3. Matters not disclosed in the temporary bulletin (IV)Related Party Credit And Debt See notes to 2021 Financial Statement “Related Party and Related Party Transaction” for details. (V) Financial business between the Company and related financial companies, holding financial companies and related parties 1. Deposit business 2. Loan business 3. Credit business or other financial business 4. Other descriptions (VI) Others XIII. Major Contracts and Its Implementation (I) Trusteeship, Contracting and Leasing Events 1. Trusteeship 2. Contracting 3. Leasing (II) Guarantee (III) About the Entrusting Others with the Management of Cash Assets 1. Entrusted financial management (1) Overall entrusted financial management (2) Entrusted financial management (3) Impairment provision of entrusted financial management 2. Entrusted loans (1) Overall entrusted loan (2) Entrusted loans (3) Provision for impairment of entrusted loans 3. Other information (IV) Other Major Contracts XIV. Description of other significant matters that have a significant impact on investors' value judgments and investment decisions Section VII Changes in Shares and Shareholders I. Changes in Capital Stock (I) Changes in Shares 1. Changes in Shares 2. About Changes in Shares 3. Effect of changes in shares on financial indicators such as earnings per share and net assets per share for the recent year and the recent period (if any) 4. Other contents disclosed according to the requirements of the Company or the securities regulatory authorities (II) About Changes in Restricted Shares II. Conditions on Securities Issuance and Listing (I) Conditions on Issuance of Securities as of the Reporting Period (II) Changes in Number of Shares and Shareholding of the Company’s Shares and the Changes in Structure of its Balance Sheet (III) Conditions on Existing Internal Staff Shares III. Conditions on Shareholders and Actual Controllers (I) Total Number of Shareholders (II) Shareholding of the Top 10 Shareholders and Top 10 Outstanding Shareholders (or Holders of Unrestricted Shares) at the End of the Reporting Period (III) Strategic investor or general legal entity becoming top ten shareholders due to rights issue IV. Controlling Shareholders and Actual Controllers (I) Controlling Shareholders 1 Legal person (II) Actual Controllers 1 Legal person 2 Natural person 3 Special statement for the condition that the Company has no actual controller 4 Description of the changes in the Company's control rights during the reporting period 5 Block diagram of property right and control relationship between the Company and the actual controllers 6 Actual controllers control the Company by trust or other asset management methods (III) Other Information about Controlling Shareholders and Actual Controllers V. The company's controlling shareholder or the first majority shareholder and its concert parties pledged a total of 80% or more of their shareholdings in the company VI. Other corporate shareholders holding more than 10% of shares VII. Explanation on the restriction in reduction of shares VIII. The specific implementation of share repurchase during the reporting period Section VIII Preferred Shares Section IX Relevant Information of Corporate Bonds I. Enterprise Bonds, Corporate Bonds and Debt Financing Instrument of Non-financial Enterprises (I) Corporate bonds 1. Basic Information of Corporate Bonds 2. Trigger and implementation of issuer’s or investor’s choice clause, investor's protection clause 3. Intermediaries providing services for bond issuance and duration business 4. Use of raised funds at the end of the reporting period 5. Adjustment of credit rating results 6. Implementation and change of guarantee, debt repayment plan and other debt paying guarantee measures during the reporting period and their impact 7. About other situations of corporate bonds (II) Corporate Bonds 1. Basic information of corporate bonds 2. Trigger and implementation of issuer’s or investor’s choice clause, investor's protection clause 3. Intermediaries providing services for bond issuance and duration business 4. Use of raised funds at the end of the reporting period 5. Adjustment of credit rating results 6. Implementation and change of guarantee, debt repayment plan and other debt paying guarantee measures during the reporting period and their impact 7. About other situations of corporate bonds (III) Debt Financing Instrument for Non-financial Enterprises in the Inter-bank Bond Market 1. Basic information of debt financing instrument for non-financial enterprises 2. Trigger and implementation of issuer’s or investor’s choice clause, investor's protection clause 3. Intermediaries providing services for bond issuance and duration business 4. Use of raised funds at the end of the reporting period 5. Adjustment of credit rating results 6. Implementation and change of guarantee, debt repayment plan and other debt paying guarantee measures during the reporting period and their impact 7. Other information of debt financing instrument for non-financial enterprises (IV) The Loss within the Scope of Consolidated Statements of the Company during the Reporting Period Exceeds 10% of the Net Assets at the End of the Previous Year (V) The Overdue Status of Interest-bearing Debts Except for Bonds at the End of the Reporting Period (VI) The Impact on the Equity of Bond Investors in Violation of the Provisions in the Laws and Regulations, the Articles of Association of the Company, and the Management System for Information Disclosure, as well as the Circumstances Agreed or Promis... (VII) The Company’s Accounting Data and Financial Indexes in the Latest Two Years as of the End of the Reporting Period II. Convertible Corporate Bond Section X Financial Report XYZH/2022BJAA30825 Financial Statements Consolidated Balance Sheet Balance Sheet of Parent Company Consolidated Income Statement Income Statement of the Parent Company Consolidated Cash Flow Statement Cash Flow Statement of the Parent Company Consolidated Statement of Changes in Shareholders’ Equity Statement of Changes in Shareholders' Equity of the Parent Company 1. Company Profile 2. Scope of Consolidated Financial Statements Ⅳ. Basis of Preparation for Financial Statements 1. Basis of preparation 2. Going concern V. Significant Accounting Policies and Accounting Estimates 1. Statement of Compliance with Accounting Standards for Business Enterprises 2. Accounting Period 3. Business cycle 4. Bookkeeping Base Currency 5. Accounting treatment method for business combination under common control and different control 6. Preparation methods of consolidated financial statements 7. Classification of joint venture arrangements 8. Cash and Cash Equivalents 9. Foreign currency transactions and foreign exchange translation for financial statements (1) Foreign currency transaction (2) Translation of foreign currency financial statements 10. Financial Instruments (1) Financial assets (2) Financial liabilities (3) Recognition methods for fair value of financial assets and financial liabilities (4) Offset of financial assets and financial liabilities (5) Distinction between financial liability and equity instrument and related treatment method (6) Exchangeable bonds 11. Inventories 12. Long-term equity investments 13. Investment properties 14. Fixed assets (1). Recognition conditions 15. Construction in progress 16. Borrowing Costs 17. Right-of-use assets 18. Intangible assets (1).Valuation, service life and impairment testing 19. Impairment of long-term assets 20. Employee Remuneration 21. Estimated liabilities 22. Revenue (1) Accounting policies adopted for revenue recognition and measurement 23. Government Grants 24. Deferred income tax assets and deferred income tax liabilities 25. Lease (1) The Company as the lessee (2) The Company as the leaser 26. Other significant accounting policies and accounting estimates 27. Changes in significant accounting policies and accounting estimates (1) Changes in significant accounting policy (2) Relevant item conditions of the first implementation of new revenue standard to adjust the financial statements at the beginning of the current year (3) The Company's joint ventures and associates implemented the new financial instrument standards, new revenue standards, and new lease standards for the first time in the current period. The adjustment of these standards on the financial statements... V. Taxes Main taxes and tax rates Taxpayer’s description for the tax rates of different corporate income taxes: Unit: yuan Currency: RMB VI. Notes to Main Items in Consolidated Financial Statements 1. Cash and bank balances Unit: yuan Currency: RMB 2. Accounts receivable (1) Accounts receivable are listed by age Unit: yuan Currency: RMB (2) Classified presentation of accounts receivable by bad debt accrual method Unit: yuan Currency: RMB (3) Bad debt provision of accounts receivable Unit: yuan Currency: RMB (4) Top five of accounts receivable of closing balance collected by borrower Unit: yuan Currency: RMB 3. Advances to suppliers (1) Aging of advances to suppliers Unit: yuan Currency: RMB (2) Top five of the closing balance of the prepayment collected according to the prepayment target Unit: yuan Currency:RMB 4. Other receivables Unit: yuan Currency:RMB 4.1 Dividends receivable Category of dividends receivable Unit: yuan Currency:RMB Unit: yuan Currency:RMB Unit: yuan Currency:RMB Unit: yuan Currency:RMB Unit: yuan Currency:RMB Unit: yuan Currency:RMB 5. Inventories (1) Category of inventories Unit: yuan Currency:RMB (2) Inventories impairment provision Unit: yuan Currency:RMB 6. Other current assets Unit: yuan Currency:RMB 7. Debt investments Unit: yuan Currency:RMB 8. Long-term equity investments Unit: yuan Currency:RMB 9. Other equity instrument investments (1) About other equity instrument investments (2) Investment in non-trading equity instruments in the current period 10. Other non-current financial assets 11. Investment properties Investment real estates measured at cost 12. Fixed assets 12.1 Fixed assets: (1) List of fixed assets (2) Fixed assets whose certificate of titles are not settled 12.2. Disposal of fixed assets 13. Construction in progress 13.1 Construction in progress (1) List of construction in progress (2) Changes of major construction in progress in the current year 14. Right-of-use assets 15. Intangible assets 16. Goodwill (1) Original value of goodwill Unit: yuan Currency: RMB (2) Information on the assets group or combination of assets groups which goodwill belongs to Based on factors such as operating business characteristics and cash flows, the Company divided Peruvian Companies into the transmission and distribution asset group and power generation asset group, and the goodwill was allocated to these two asset g... There was no change in the classification of asset groups during the year. (3) Description of impairment of goodwill test process, key parameters and recognition methods of losses in impairment of goodwill At the end of the year, the Company engaged a third-party intermediary to perform an impairment assessment on the asset group in which the goodwill is listed. Based on the historical operation and future operation expectation of the asset group, the r... (1) Deferred income tax assets not offset Unit: yuan Currency: RMB (2) Deferred income tax liabilities not offset Unit: yuan Currency: RMB (3) Unrecognized deferred income tax assets details Unit: yuan Currency: RMB 18. Short-term borrowings Unit: yuan Currency: RMB 19. Financial liabilities held for trading Unit: yuan Currency: RMB 20. Accounts payable Unit: yuan Currency: RMB 21. Employee compensation payable (1) Classification of employee benefits payable Unit: yuan Currency: RMB (2) Short-term compensation Unit: yuan Currency: RMB (3) Defined contribution plans Unit: yuan Currency: RMB 22. Taxes payable Unit: yuan Currency: RMB 23. Other payables Unit: yuan Currency: RMB 23.1Interests payable Unit: yuan Currency: RMB 23.2 Other payables (1) Classification of other payables by nature Unit: yuan Currency: RMB (2) Other payables with significant amount and age of over 1 year Unit: yuan Currency: RMB 24. Current portion of non-current liabilities Unit: yuan Currency: RMB 25. Other current liabilities (1) Classification of other current liabilities Unit: yuan Currency: RMB (2) Short-term bonds payable Unit: yuan Currency: RMB 26. Long-term borrowings Unit: yuan Currency: RMB 27. Bonds payable (1) Classification of bonds payable Unit: yuan Currency: RMB (2) Increase or decrease in bonds payable Unit: yuan Currency: RMB (Continued) Unit: yuan Currency: RMB 28. Lease liabilities Unit: yuan Currency: RMB 29. Long-term payables Unit: yuan Currency: RMB Long-term payables classified by nature of payments Unit: yuan Currency: RMB 30. Share capital Unit: yuan Currency: RMB 31. Capital reserve Unit: yuan Currency: RMB 32. Other comprehensive income Unit: yuan Currency: RMB 33. Surplus reserve Unit: yuan Currency: RMB 34. Undistributed profits Unit: yuan Currency: RMB 35. Operating revenues and operating costs Unit: yuan Currency: RMB 36. Taxes and surcharges Unit: yuan Currency: RMB 37. Selling and distribution expenses Unit: yuan Currency: RMB 38. General and administrative expenses Unit: yuan Currency: RMB 39. R&D expenses Unit: yuan Currency: RMB 40. Finance costs Unit: yuan Currency: RMB 41. Other Incomes Unit: yuan Currency: RMB 42. Investment income Unit: yuan Currency: RMB 43. Gain from changes in fair value Unit: yuan Currency: RMB 44. Credit impairment losses Unit: yuan Currency: RMB 45. Asset impairment losses Unit: yuan Currency: RMB 46. Revenue from assets disposal (loss to be listed with “-”) Unit: yuan Currency: RMB 47. Non-operating Incomes (1) List of non-operating revenue Unit: yuan Currency: RMB (2) List of government subsidies Unit: yuan Currency: RMB 48. Non-operating expenses Unit: yuan Currency: RMB 49. Income tax expenses (1) Income tax expenses Unit: yuan Currency: RMB (2) Adjustment process of accounting profits and income tax expenses Unit: yuan Currency: RMB 50. Other comprehensive income 51. Items in the statement of cash flows (1) Other cash received / paid relating to operating / investment / financing activities Unit: yuan Currency: RMB Unit: yuan Currency: RMB Unit: yuan Currency: RMB Unit: yuan Currency: RMB Unit: yuan Currency: RMB (2) Supplementary information to consolidated cash flow statement Unit: yuan Currency: RMB (3) Cash and cash equivalents Unit: yuan Currency: RMB 52. Restricted assets Unit: yuan Currency: RMB 53. Monetary items in foreign currency (1) Monetary items in foreign currency Unit: yuan Currency: RMB (2) Group companies incorporated oversea Unit: yuan Currency: RMB 54. Government Grants Unit: yuan Currency: RMB VII. Changes in Consolidation Scope 1. Changes in consolidation scope for other reasons VIII. Equity in Other Entities 1. Equity in subsidiaries (1) Composition of the Enterprise Group 2. Equity in joint ventures or associates (1) Important joint ventures or associates Unit: yuan Currency: RMB (2) Main financial information of important associates Unit: yuan Currency: RMB (Continued) Unit: yuan Currency: RMB (3) Summary of financial information of insignificant joint ventures and associates Unit: yuan Currency: RMB (4) Contingent liabilities for investment in joint ventures or associates IX. Risks related to financial instruments 1. Credit risk 2. Liquidity risk 3. Market risk X. Disclosure of Fair Value 1. Ending fair value of assets and liabilities measured at fair value 2. Determination of market prices of each item is subject to continuous and non-continuous level 1 fair value measurement 3. Valuation techniques and qualitative and quantitative information about key parameters of items subject to continuous and non-continuous level 2 fair value measurement 4. Valuation techniques and qualitative and quantitative information about key parameters of items subject to continuous and non-continuous level 3 fair value measurement 5. Items measured by recurring fair value convert between levels in the current year 6. Change of valuation techniques incurred during the current year and the reasons thereof 7. Assets and liabilities that are not measured at fair value but disclosed at fair value XI. Related Parties and Related Party Transactions (I) Relationship of related party 1. Controlling shareholder and ultimate controlling party 2. Subsidiaries 3. Joint ventures and associates 4. Other related parties (II) Related-party transaction (III) Balance of transactions with related parties 1. Receivables Unit: RMB 10,000 Currency: RMB 2. Payables Unit: RMB 10,000 Currency: RMB (IV) Miscellaneous (V) Transactions with other Chinese state-owned enterprises 1. Selling goods/offering services Unit: RMB million Currency: RMB 2. Purchasing goods/receiving services Unit: RMB million Currency: RMB 3. Receivables Unit: RMB million Currency: RMB 4. Payables Unit: RMB million Currency: RMB 5. Balance of deposits and loans Unit: RMB million Currency: RMB XII. Contingencies XIII. Commitments XIV. Events after the Balance Sheet Date 1. Profit distribution 2. Issuance of bonds 3. There are no other significant events after the balance sheet date for the Company to disclose, except for those above-mentioned. XV. Other Significant Matters 1. Annuity plan 2. Other significant transactions and events affecting investors' decisions XVI. Notes to Main Items in Financial Statements of the Parent Company 1. Accounts receivable (1) Classified presentation of accounts receivable by bad debt accrual method (2) Accounts receivable are listed by age Unit: yuan Currency: RMB (3) Provision for bad debts for current year accounts receivable (4) Top five of accounts receivable of closing balance collected by borrower Unit: yuan Currency: RMB 2. Other receivables Unit: yuan Currency: RMB 2.1 Dividends receivable Unit: yuan Currency: RMB 2.2 Other receivables (1) Classification of other receivables by nature Unit: yuan Currency: RMB (2) Other receivables – bad debt provision withdrawn Unit: yuan Currency: RMB (3) Other receivables listed as per aging Unit: yuan Currency: RMB (4) Other receivables – bad debt provision Unit: yuan Currency: RMB (5) Other receivables of top five borrowers by closing balance Unit: yuan Currency: RMB 3. Long-term equity investments (1) Classification of long-term equity investments Unit: yuan Currency: RMB (2) Investment in subsidiaries Unit: yuan Currency: RMB (3) Investment in associates and joint ventures Unit: yuan Currency: RMB 4. Operating revenues and operating costs Unit: yuan Currency: RMB 5. Investment income Unit: yuan Currency: RMB XVII. Approval on Financial Statements Supplementary information of financial statements 1. List of non-recurring profits and losses in current year Unit: yuan Currency: RMB 2. Return on equity and earnings per share 2021 Annual Report 1 / 292 Company code: 600900 Company abbreviation: CYPC China Yangtze Power Co., Ltd. 2021 Annual Report 2021 Annual Report 2 / 292 Important Notes I. The Board of Directors and Board of Supervisors, as well as directors, supervisors, and senior executives of the Company guarantee that the present annual report is true, accurate, and complete in contents without the existence of false records, misleading statements, or major omissions, and undertake the individual and joint legal responsibilities therefore. II. ShineWing Certified Public Accountants LLP has provided the Company with a standard and unqualified auditor’s report. III. Lei Mingshan, the Company responsible person, Zhan Pingyuan, the person in charge of accounting work, and Zhang Na, the leading member of the accounting body (accountant in charge) guarantee the truth, accuracy, and integrity of financial report in the annual report. IV. Profit Distribution Plan or Capital Reserves Share Capitalization Plan for the reporting period, adopted by the Board of Directors via resolution. With the total capital stock of 22,741,859,230 shares at the end of 2021 as the base, the cash dividend of RMB 8.153 (tax inclusive) is distributed to the shareholders for every 10 shares. Totally, the cash dividend of RMB 18,541,437,830.22 is distributed. No capitalization of surplus would be made in 2021. This plan will be submitted to the 2021 Annual General Meeting for deliberation. V. Forward-looking Risk Statement √ Applicable □ Inapplicable Such forward-looking statements as the future plan and development strategy involved in this report would not constitute any real commitment. Investors were hoped to pay attention to investment risks, please. VI. Did it exist that the controlled shareholders and their related parties occupy funds non-operationally? No VII. Did it exist that the security was given externally in violation of the stipulated decision-making process? No VIII. Did it exist that more than half of the directors are unable to guarantee the authenticity, accuracy, and completeness of the Annual Report disclosed by the Company? No 2021 Annual Report 3 / 292 IX. Major Risk Warning The Company had already elaborated on possible risks in this report. Please refer to the related contents in “VI. Discussion and Analysis on the Company Future Development” of Section III Discussion and Analysis of the Management. 2021 Annual Report 4 / 292 Contents Section I Definitions............................................................................................................ 5 Section II Company Profile and Major Financial Indexes .......................................................... 5 Section III Discussion and Analysis by Management................................................................ 10 Section IV Corporate governance .......................................................................................... 32 Section V Environmental and Social Responsibility ................................................................ 56 Section VI Important Matters ................................................................................................ 60 Section VII Changes in Shares and Shareholders ...................................................................... 73 Section VIII Preferred Shares .................................................................................................. 79 Section IX Relevant Information of Corporate Bonds ............................................................... 80 Section X Financial Report .................................................................................................. 96 List of Documents Available for Inspection Financial statements signed and sealed by the Chairman of the Company, CFO, and person in charge of the accounting institution. The original copy of the auditor’s report sealed by the accounting firm and sealed and signed by certified public accountants. Originals of all documents and announcements which have been publicly disclosed in the newspapers specified by CSRC during the current reporting period. 2021 Annual Report 5 / 292 Section I Definitions I. Definitions In the Report, unless otherwise indicated in meanings, the following words and expressions had implications as follows: Paraphrasing of everyday expressions SASAC Refer(s) to State-owned Assets Supervision and Administration Commission of the State Council CSRC Refer(s) to China Securities Regulatory Commission CEC Refer(s) to China Electricity Council CTG Refer(s) to China Three Gorges Corporation Companies, the Company and CYPC Refer(s) to China Yangtze Power Co., Ltd. Three Gorges Finance Refer(s) to Three Gorges Finance Co., Ltd. Three Gorges Capital Refer(s) to Three Gorges Capital Holdings Co., Ltd. Three Gorges Development Refer(s) to Yangtze Three Gorges Technology & Economy Development Co., Ltd. Chuanyun Company Refer(s) to Three Gorges Jinsha River Chuanyun Hydropower Development Co., Ltd. CYPC Capital Refer(s) to CYPC Capital Holding Co., Ltd. CYPC International Refer(s) to China Yangtze Power International (Hong Kong) Co., Ltd. Three Gorges Power Refer(s) to Three Gorges Power Co., Ltd. Peru Company Refer(s) to Andes Bermuda Ltd. ("AB Company" for short, formerly Sempra Americas Bermuda Ltd.), holding 100% equity, and Peruvian Opportunity Company S.A.C. ("POC Company" for short), holding about 50.00000069% of the equity, and the remaining equity of about 49.99999931% of POC Company is held by AB Company. LDS Company Refer(s) to Luz del Sur S.A.A, a Peruvian company of power distribution and sales Yangtze Andes Refer(s) to Yangtze Andes Holding Co., Limited GDR Refer(s) to Global Depository Receipts Section II Company Profile and Major Financial Indexes I. Company Information Chinese name of the Company China Yangtze Power Co., Ltd. Abbreviation of Chinese name CYPC Name of the Company China Yangtze Power Co., Ltd. Abbreviation of company name CYPC Legal Representative of the Company Lei Mingshan 2021 Annual Report 6 / 292 II. Contact and Contact Information Board secretary Securities representative Full name Xue Ning Yuan Haiying Contact address 22th Floor, Focus Place B, 19 Financial Street, Xicheng District, Beijing 22th Floor, Focus Place B, 19 Financial Street, Xicheng District, Beijing Tel. 010-58688900 010-58688900 Fax 010-58688898 010-58688898 E-mail cypc@cypc.com.cn cypc@cypc.com.cn III. A Brief Introduction to Basic Information Company registered address Tower B, No.1 Yuyuantan South Road, Haidian District, Beijing Historical changes in the Company's registered address Primarily registered address on November 4, 2002: No. 25, Guangqumen Inner Avenue, Chongwen District, Beijing; Changed registered address on February 3, 2004: Tower B, Focus Place, No. 19, Financial Street, Xicheng District, Beijing; Changed registered address on August 11, 2010: Tower B, No.1 Yuyuantan South Road, Haidian District, Beijing; Company business address Tower B, Focus Place, No. 19, Financial Street, Xicheng District, Beijing; Tower B, No.1 Yuyuantan South Road, Haidian District, Beijing. Zip code of Company business address 100033 Company website https://www.cypc.com.cn E-mail cypc@cypc.com.cn IV. Information Disclosure and Place for Preparation Media name and website on which the Company discloses its annual report China Securities Journal (www.cs.com.cn), Shanghai Securities News (www.cnstock.com), Securities Times (www.stcn.com), and China Three Gorges Project News (www.ctg.com.cn) Stock exchange website where the Company discloses its annual report http://www.sse.com.cn Place for preparing the annual report Room 2215, Focus Place B, 19 Financial Street, Xicheng District, Beijing V. Stock Profile/Depository Receipts Stock Profile Type of stock/depository receipts Stock exchange on which the shares are listed Stock abbreviation Security code A-shares Shanghai Stock Exchange CYPC 600900 GDR London Stock Exchange China Yangtze Power Co., Ltd. CYPC VI. Other Related Information Certified Public Accountants (domestic) engaged by the Company Name ShineWing Certified Public Accountants LLP Office address 9/F, Block A, Fu Hua Mansion, No. 8, Chaoyangmen Beidajie, Dongcheng District, Beijing Names of the accountants as signatories Liang Zhigang and Yan Huan 2021 Annual Report 7 / 292 VII. Principal Accounting Data and Financial Index in the Recent Three Years (I) Principal Accounting Data Unit: yuan Currency: RMB Principal accounting data 2021 2020 Increase & decrease in this period over the same period of last year (%) 2019 Operating revenues 55,646,253,991.83 57,783,367,039.83 -3.70 49,874,086,874.95 Net profit attributable to shareholders of the Listed Company 26,272,998,503.24 26,297,890,222.70 -0.09 21,543,493,635.57 Net profit attributable to shareholders of the Company net of non-recurring profit or loss 24,141,419,619.03 26,175,647,473.85 -7.77 21,130,274,030.69 Net cash flows from operating activities 35,732,461,733.26 41,036,864,400.40 -12.93 36,464,419,570.28 End of 2021 End of 2020 Increase & decrease at the end of this period over the end of the same period of last year (%) End of 2019 Net assets attributable to shareholders of the Listed Company 181,063,819,486.27 172,118,146,991.60 5.20 149,510,174,624.05 Total assets 328,563,281,639.20 330,827,096,559.03 -0.68 296,482,881,040.89 (II) Principal Financial Indexes Principal financial indexes 2021 2020 Increase & decrease in this period over the same period of last year (%) 2019 Basic earnings per share (RMB/share) 1.1553 1.1853 -2.54 0.9792 Diluted earnings per share (RMB/share) 1.1553 1.1853 -2.54 0.9792 Basic earnings per share net of non-recurring profit and loss (RMB/share) 1.0615 1.1798 -10.03 0.9605 Weighted average ROE (%) 14.92 16.71 Decreased by 1.79% 14.77 Weighted mean ROE (%) net of non-recurring profits and losses 13.71 16.63 Decreased by 2.92% 14.49 Description on major accounting data and financial indexes in past three years at the end of reporting period □ Applicable √ Inapplicable 2021 Annual Report 8 / 292 VIII. Discrepancy of Accounting Data under the Accounting Standards at Home and Abroad (I) Discrepancy between the net profits and the net assets attributable to shareholders of the Listed Company in the Financial Reports disclosed simultaneously according to the International Accounting Standard and China Accounting Standard □ Applicable √ Inapplicable (II) Discrepancy between the net profits and the net assets belonging to shareholders of the Listed Company in the Financial Reports disclosed simultaneously according to foreign accounting standards and China Accounting Standards □ Applicable √ Inapplicable (III) Explanation on differences between foreign and domestic accounting standards: □ Applicable √ Inapplicable IX. 2021 Principal Financial Data in Quarters Unit: yuan Currency: RMB Q1 (January - March) Q2 (April - June) Q3 (July - September) Q4 (October - December) Operating revenues 8,870,397,197.98 11,031,096,244.01 20,546,726,096.22 15,198,034,453.62 Net profit attributable to shareholders of the Listed Company 2,869,334,570.29 5,712,658,141.17 10,985,247,902.82 6,705,757,888.96 Net profit attributable to shareholders of the listed company net of non-recurring profits or losses 2,383,572,424.89 4,741,867,641.21 10,976,144,284.84 6,039,835,268.09 Net cash flows from operating activities 3,304,210,279.50 6,239,533,835.90 12,062,447,173.18 14,126,270,444.68 Explanation of discrepancy between quarterly data and previously disclosed accounting period data □ Applicable √ Inapplicable X. Items of Non-recurring Profits and Losses and the Relevant Amounts √ Applicable □ Inapplicable Unit: yuan Currency: RMB Non-recurring profits or losses items Amount in 2021 Amount in 2020 Amount in 2019 Profit and loss of non-current assets disposal 564,829,216.07 36,811,121.25 26,792.08 Unauthorized approval or without official approval document or occasional tax returns and concessions Government subsidies included in the current profit and loss, except those closely related to the Company normal operations, conforming to the State policies and regulations and enjoyed persistently in line with certain standard ratings or ration 1,599,400.00 6,357,797.00 32,271,193.34 Payment for the use of state funds included in the current profit and loss and collected from non-financial business Income arising from the fair value of net identifiable assets of the investee 50,250,031.87 2021 Annual Report 9 / 292 the enterprise should enjoy when the cost of investment it acquired from the subsidiaries, associates and joint ventures was less than the investment it obtained Non-monetary assets exchange profit and loss 205,222,701.21 Profits and losses on the assets by entrusting others to invest or manage Each provision for the impairment of assets withdrawn due to force majeure factor, say, suffering from a natural disaster Debt restructuring profits and losses Enterprise restructuring charges, such as the staffing expenditures and integrating expenses Profit and loss of the part exceeding the fair value arising from the transaction with the bargain price losing fairness Net current profit and loss of the subsidiary acquired in business combination involving entities under common control from the beginning of the period to the combination date Profits and losses arising from contingencies irrelevant to the Company’s normal business operation In addition to the effective hedging business related to the normal business of the Company, profit and loss from changes in fair value arising from holding of financial assets held for trading, derivative financial assets, financial liabilities held for trading, derivative financial liabilities, and investment gains from disposal of financial assets held for trading, derivative financial assets, financial liabilities held for trading, derivative financial liabilities and other debts. 1,914,762,891.93 -55,598,675.12 461,825,906.25 Reversal of depreciation reserves of receivables and contractual assets under independent impairment assessment Profits and losses acquired from externally entrusted loans Profits and losses arising from changes in the fair value of investment real estates by using the fair value model for subsequent measurement Influence made by the one-off adjustment of the current profit and loss according to requirements of tax revenue and accounting laws and regulations on the current profit and 2021 Annual Report 10 / 292 loss Trustee fee income achieved from the entrusted management Other non-operating revenue and expenses than the above items -210,401,632.70 -200,395,826.32 -50,219,231.62 Other losses and profits conforming to the definition of extraordinary gains and losses 13,792,013.07 15,678,172.60 66,991,950.45 Less: amount affected by income tax 152,725,238.50 -88,040,202.18 97,663,591.54 Amount affected in minority shareholders' equity interest (after-tax) 277,765.66 24,122,775.82 13,414.08 TOTAL 2,131,578,884.21 122,242,748.85 413,219,604.88 Explanation of defining extraordinary gains and losses listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Securities to the Public - Extraordinary Gains and Losses as ordinary gains and losses □ Applicable √ Inapplicable XI. Items Measured by Fair Value √ Applicable □ Inapplicable Unit: yuan Currency: RMB Item Name Beginning balance Ending balance Current change Amount of influence on the current profit Other equity instrument investments 3,609,195,163.56 3,457,356,904.37 -219,230,723.07 231,710,374.30 Other non-current financial assets 4,713,666,463.26 1,622,160,091.31 -10,172,950.96 1,760,319,818.86 Financial liabilities held for trading 640,897,029.23 0.00 345,655,674.90 345,655,674.90 TOTAL 8,963,758,656.05 5,079,516,995.68 116,252,000.87 2,337,685,868.06 XII. Miscellenaous □ Applicable √ Inapplicable Section III Discussion and Analysis by Management I.Discussion and Analysis on Operations The year 2021 is the first year for the implementation of the Company's 14th Five-Year Plan. Under the strong leadership of the Board of Directors and the oversight of the Board of Supervisors, the management has united all employees as one and led them to strive against all difficulties to apply the new development philosophy and promote high-quality development for the purpose of fully completing the Company's annual production and operation tasks in face of the complicated situation, such as decrease of the volume of water from the Yangtze River at different stages, the first impoundment of the new reservoirs in the upper reaches, and the steadily advanced electricity market reform. (I). Focus on main responsibilities and businesses, consolidate large hydropower projects, and make new achievements. 2021 Annual Report 11 / 292 The power generation task has been completed in an all-round way. With the influence of the decrease in the volume of water from the Yangtze River and the impoundment of the reservoirs in the upper reaches, the Company has carried out accurate regulation, lean operation, and careful maintenance. It has made every effort to generate electricity as much as possible on the basis of ensuring work safety. As a result, the annual generation capacity of the Three Gorges Hydropower Station exceeded 100 thousand GWh for the third time; the annual generation capacity of the Gezhouba Hydropower Station reached another record high, and the generation capacity of the year of the Company's cascade stations reached 208,322 GWh. The power generation task is completed in excess of that being planned. Comprehensive benefits have been fully played. The Company has earnestly fulfilled its social responsibilities as a central government enterprise and ensured the safe, stable, and efficient operation of its cascade stations. Eight floods above 40,000 m³/s were successfully handled by the Three Gorges Reservoir, and the total flood detention by the cascade reservoirs reached 17.2 billion cubic meters. The flood control safety in the middle and lower reaches of the Yangtze River was thus effectively guaranteed. The cascade reservoirs of the Company have provided replenishment for the lower reaches, with a total water supply of 31.3 billion cubic meters throughout the year. The navigation and freight volume of the Three Gorges ship lock and Xiangjiaba lifter hit a new record. They are continuously injecting new impetus into the development of the Yangtze River Economic Belt. The connection and power generation work has been effectively completed. The Company actively participated in the project construction, connection, and power generation of Baihetan and Wudongde Hydropower Stations, and the stage impoundment goal of 760 meters of Baihetan Reservoir were achieved 10 days in advance. The connection and power generation for 6 sets of Baihetan Hydropower Station was achieved, and all sets of Wudongde Hydropower Station were safely put into generation on time. The downstream scheduling communication network in the lower reaches of the Jinsha River has been constructed and put into operation in an all-around way and it lays a solid foundation for the effective implementation of the "Six-reservoir Combined Scheduling" (combined scheduling of the six cascade stations on the main stream of the Yangtze River under the Company's operation and management), and thus effectively enhances the power generation capacity. Remarkable results have been achieved in terms of marketing. The energy consumption task has been successfully completed and electricity charges receivable were collected. The five-year long-term electricity purchase and sales contracts for the Three Gorges, Xiangjiaba, and Xiluodu Power Stations were successfully concluded. Special research on improving the potential value of hydropower as a green power was conducted. Renewable energy consumption agreements have been signed with relevant provinces and cities to promote the locking of hydropower, wind power, and solar power transmission channels and consumption markets. CYPC Sales Ltd. was inaugurated in Shanghai. A good stance of safety and environmental protection is presented. The safety and environmental protection management system adapted to the management of large hydropower projects was continuously improved. The construction of safety and environmental protection and prevention mechanisms was constantly improved. The goal of "zero personal injuries and zero equipment accidents" for work safety was realized and no environmental pollution or environmental punishment events occurred throughout the year. The supervision and inspection were further strengthened over new business areas and affiliates, and the management and control of safety and environmental protection were effectively extended to new business units. (II). Focus on transformation and development and expand new space to accelerate development. The integrated smart energy was transformed into large-scale development. The urban green integrated energy management mode was launched in an innovative manner. The integrated development of "power supply, power grid, load, and energy storage" (referring to the operating model covering the overall solution of the aforesaid four aspects) was actively laid out. Strategic cooperation agreements for integrated smart energy were signed with Changsha, Hunan Province and other cities and regions. A total of 15 projects including the Solar Energy Storage and Charging Project at Siyang, Suqian, Jiangsu Province have been constructed and put into operation, and the construction of a batch of projects including the Leiyang Biogas Project in Hunan Province has been commenced. The Yangtze River Three Gorges 1 has successfully completed its trial voyage and it is the first electric vessel in the world with the largest battery capacity and the most advanced charging technology produced to date. The final design for the Three Gorges Hydrogen Boat 1, the hydrogen fuel-powered boat was completed. Renewable energy and pumped storage business have been kicked off to a good start. Attention was focused on the multi-energy complementary of "hydropower, wind power, and solar power storage", 2021 Annual Report 12 / 292 "large base", and "large project". Both ends of the power transmission and power receiving were developed in a holistic approach to promote the differentiated development of the renewable energy business. The development of the integrated base of hydropower, wind power, and solar power in the lower reaches of the Jinsha River has proceeded in a well-conceived way, and in-depth operation and regulation research on the integration of hydropower, wind power, and solar power was carried out. The advantages of the Company in the field of hydropower were given full play and several pumped storage projects were targeted. The upgrading for the International operation was achieved. The international business units of the Company were integrated and optimized and the effectively integrated international management efficiency of CYPC International was further improved, and the operating income significantly rose on a year-on-year basis. The mandatory tender offer of the Luz del Sur Project in Peru has been successfully completed. The Company overcame the impact of the COVID-19 pandemic and assigned the second batch of on-site management and control teams to Peru, adjusted the composition of the Board of Directors, assigned officials, and strengthened the management and control. The overseas resources focusing on the main business were actively sought. The international influence of the Company has been continuously enhanced by actively participating in the exchange of international organizations such as the International Commission on Large Dams and the International Energy Agency. (III). Focus on reform and innovation and improve the new system to release new impetus. New breakthroughs in internal reform have been made. The Company's three-year action plan for SOE has been steadily advanced, and the tenure system and contract-based management of the management have been fully implemented. The management system for the assignment of full-time directors by the Company has been improved, and the ability of assigned directors to perform their duties has been effectively improved. The lists of rights and responsibilities definitions of sub-enterprises and of powers granted and delegated have been continuously improved, and the co-investment mechanism has been implemented in the new business sector for the first time. The Shareholders' Meeting, the Board of Directors, the Board of Supervisors, and the management have performed their respective duties with effective checks and balances; the granting and delegating of powers have been brought under due procedures, and the compliance system has comprehensively proceeded. The Company was successively appraised by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) as the Model Enterprise of Model Establishment Initiatives for the Management of Key State-owned Enterprises and the Model Enterprise of State-owned Enterprise Management. New progress has been made in scientific and technological innovation. The top-level planning for technical innovation was strengthened, with a focus on the Company's strategic development and industry-leading goal, and the '14th Five-Year Plan' of high quality for the technical innovation was prepared. The organization and management of major scientific and technological projects were optimized; the reform measure of "open competition mechanism to select the best candidates" was explored and implemented, and the research on key technologies such as digital twins and the physical field of key equipment was accelerated. The cooperation in scientific research and platform building for innovation were increased and joint innovation platforms were established with scientific research institutes, colleges, and universities, such as the National Innovation Institute of Digital Design and Manufacturing. The following key scientific research tasks have been completed: the R&D of the industrial Internet platform, the application of acoustics in status identification for wind tunnel equipment, and the application of UAV detection technology in closed space of hydropower stations. The Broadband Vibration Sensor Calibrator was successfully launched into the market, and the market-oriented transformation of the Company's scientific and technological achievements was first achieved. A number of results were rewarded at the provincial and ministerial levels, and Key Technologies and Applications for the Processing of in-Situ Robots of Large-scale Power Equipment was awarded the first prize of the Hubei Provincial Scientific and Technological Progress Award. A total of 409 patents were granted throughout the year, including 23 invention patents, and 107 software copyrights were obtained. The Company presided over the formulation of 3 industry technical standards and participated in the formulation of 1 international technical standard, 1 national technical standard, and 5 industry technical standards. The number of patents granted and the number of standards released reached another record high. (IV). Focus on quality and efficiency improvement, and take a new step in high-quality development. The capital operation was highly effective. The strategic investment in the upstream, downstream, and emerging fields of the industrial chain has been actively made by focusing on the main responsibilities and businesses, and the investment income reached a record high of RMB 5.426 billion throughout the year. 2021 Annual Report 13 / 292 Moody's A1 rating was assigned for the first time, and the rating outlook is stable and is consistent with the sovereign credit rating. The FTSE Russell ESG Ratings [evaluations of a company based on an assessment of environmental, social, or governance (ESG) issues] rank first in the electricity industry of A-shares in China. The first batch of domestic sustainability-linked bonds has been successfully issued. The maturity payment of foreign dual-currency exchangeable bonds in 2016 was successfully completed and the existing financial assets were efficiently activated to support the established objectives for the expansion of the Company's international business in foreign currency funds at nearly zero cost. The asset securitization of Wudongde and Baihetan Hydropower Stations has been advanced in an orderly manner. The Company's market value reached another record high. The Company had a maximum market value of RMB 523.7 billion throughout the year, being the first in the electricity sector of A-shares in China and among the top listed global electricity power companies. The Company's excellent performance and standardized governance have been widely recognized, and it has won the class-A evaluation on the annual assessment of information disclosure of the Shanghai Stock Exchange and the award of excellent issuers of corporate bonds. Moreover, it won 18 important awards including the Best Board of Directors of the Securities Times. It was selected as one of the Excellent Practice Cases of the Performance Statement Meeting of Listed Companies 2020. II. Industry of the Company during the Reporting Period (I) Basic information on the electricity industry The Company is mainly engaged in the hydropower generation business, which has the characteristics of renewable, pollution-free, mature technology, and strong peak shaving capacity. Under the national "carbon peak" and "carbon neutralization" strategic background, hydropower clean energy advantages are increasingly prominent. In 2021, the Chinese government continued to attach great importance to the clean energy industry, continuously issued policies in the fields of the power supply structure, electricity consumption, and electricity market, and strongly supported the development of the clean energy industry represented by hydropower, solar energy, and wind power. In terms of power supply structure, the construction of a clean, low-carbon, safe and efficient energy system was encouraged; the energy supply guarantee capacity was improved; the development of non-fossil energy was accelerated, both centralized and distributed energy was adhered to; the scale of wind power and PV power generation was vigorously enlarged; the development of distributed energy in the east and central regions was accelerated; offshore wind power was developed in an orderly manner; the construction of southwest hydropower bases was accelerated, and a number of clean energy bases with multi-energy complementarity were built. In terms of electricity consumption, the connection of power supply, power grid, load, and energy storage was continuously strengthened. The consumption and storage capacity of clean energy was improved, and so was the transmission and distribution capacity to remote areas. In terms of the electricity market, the establishment of a unified national electricity market system will be continuously pursued; the market-oriented allocation of cross-provincial and cross-regional resources will be promoted, and the scale of green electricity trading will be enlarged to form a market trading and price mechanism for the development of renewable energy and energy storage. Renewable energy will be encouraged to participate in market trading. Market participants will compete equally and choose independently, and electricity resources will be further better allocated nationwide. (II) Supply and demand in the electricity market 1 In 2021, the electricity consumption in China achieved double-digit growth, and the green and low carbon development trend for the installation structure continued. Due to factors such as supply shortages in thermal coal, the electricity supply and demand in China generally remained inadequate in September and October. Great importance was attached to the situation and a series of electricity supply guarantee measures were issued by the Chinese government. The electricity consumption of the whole society in 2021 was 8.31 million GWh, an increase of 10.3 percent year on year. The rapid growth of electricity consumption was mainly driven by the continued recovery and development of the domestic economy, the low base in the same period of the previous year, and the rapid growth of foreign trade exports. By the end of 2021, the installed capacity of complete power generation in China was 2,380 GW, an increase of 7.9 percent year on year. Among them, the installed capacity of complete non-fossil energy 1 Data is quoted from CEC's 2021-2022 National Power Supply and Demand Analysis and Forecast. 2021 Annual Report 14 / 292 power generation was 1,120 GW, an increase of 13.4 percent year on year, accounting for 47.0% of the total installed capacity. III. Business during the Reporting Period The Company is primarily engaged in operations of large hydropower stations and is the world's largest hydropower listed company. At present, the total installed capacity of hydropower is 45,595 MW, of which the domestic installed capacity is 45,495 MW, accounting for 11.64% of the national hydropower installation. The Wudongde and Baihetan Hydropower Stations entrusted by China Three Gorges Group (CTG) have a total installed capacity of 16,200 MW, accounting for 4.14% of the national hydropower installed capacity. The Company manages and operates 6 giant hydropower stations including the Three Gorges, Gezhouba, Xiluodu, Xiangjiaba, Wudongde, and Baihetan with the pursuit of excellence and a sense of responsibility, and continuously provides high-quality, stable, and reliable clean energy. The generation capacity of the Company's four cascade stations in 2021 reached 208,322 GWh, and that of the two power stations managed by the Company as an agent was 54,561 GWh. They played an important role in giving play to the comprehensive benefits of the cascade stations, energy conservation and emission reduction, ensuring energy supply, and promoting economic and social development. In 2021, while insisting on supporting the main business of hydropower in becoming stronger and doing better, the Company actively made strategic investments in the upstream and downstream industrial chains and related emerging fields, with an investment income reaching a record high of RMB 5.426 billion throughout the year. At the same time, the development of renewable energy integrated with wind power, solar power, and hydropower storage has proceeded in a well-conceived way. In-depth operation and regulation research on the integration of hydropower, wind power, and solar power was carried out. The core capacities in large hydropower O&M were given play to realize a high-quality layout and promote the development of the pumped storage business. The development of the integrated smart energy business was accelerated. The urban green integrated energy management mode was launched in an innovative manner and the integrated development of "power supply, power grid, load, and energy storage" was actively laid out. IV. Core Competitiveness Analysis in the Reporting Period √ Applicable □ Inapplicable (I)Cascade combined dispatching capacity in the valley Great efforts were made to promote the capability building of valley-dominated, market-oriented, decision-making-wise, and management-innovative regulation and constantly increased the well-designed dispatching level of cascade water control projects. The information-sharing platform was further expanded, and the scope covered by the network of water and rain regimen stations was further expanded while keeping the water regimen forecast accuracy at a relatively high level. The 24-hour hydrological forecast accuracy of cascade stations in the flood season in the watershed reached 96.93% in 2021. The Company closely centered on national strategies, gave full play to the social comprehensive effects (flood control, electricity generation, water-borne transportation, water replenishing and ecosystem, etc.) of the valley cascade water control project, actively served the construction of the Yangtze River Economic Belt and provided clean energy guarantee for the operation of the national economy. Eight ecological regulations were cumulatively carried out for the cascade stations in 2021, including five for the Three Gorges Reservoir. A record high was reached. The Company has provided replenishment for the lower reaches, with a total water supply of 31.3 billion cubic meters throughout the year to ensure the demand for production and domestic water in the lower reaches. (II) Operation and management capacity of large-sized hydropower stations The Company scientifically organized power generation. And the operation and management of stations were streamlined and efficient. The Company operates and manages (including managing as an agent) 6 giant hydropower stations, which consist of 76 giant hydraulic generator sets with a capacity of 700 MW and above, accounting for 59.84% of the world's similar sets. According to the principle of “being capable and high-efficient, scientific division of work, advanced and reasonable”, and relying on high-quality talent teams, advanced technical equipment, as well as excellent management philosophy, the Company scientifically organized power generation and obtained superior economic and technical norms and significant efficiency of operation. The Company has mastered the operation law of the sets in-depth and taken the lead in establishing the indicator system and evaluation approaches of international first-class hydropower plants. A replicable 2021 Annual Report 15 / 292 electricity production management system with high quality epitomized was formed and the technical management mode of electricity production of cascade stations in the watershed was unified. The ability to lead the hydropower industry has been continuously improved and the reliability level of equipment is at the world’s leading place. Through management practices of power generation for many years, the Company mastered the law on safe and steady operation of giant valley cascade station group under multiple conditions and improved the control capacity of “heavy-load, long-period and continuous” operation of the stations. The equipment has always been controllable and under control. In 2021, the average equivalent availability coefficient of sets in cascade stations reached 93.23%, and the key indicators of the equipment maintained the leading industrial level. The safety quality management system adapted to the management of large hydropower projects was continuously improved. The dual prevention mechanism for safety management has been constantly improved. The goal of "zero personal injuries and zero equipment accidents" was realized. (III) Overhaul and maintenance capacity of large-sized hydropower stations The management system for overhaul was optimized to build an industry-leading valley overhaul model. The Company has the country’s largest professional team for overhauling hydropower projects and masters the core overhauling technology of 700 MW giant sets. The Company built a professional decision-making support system centered on the Technical Commission, promoted advanced technology application in production, formed the valley cascade power station overhaul management system of “Mastering the core technology, being capable and high-efficient maneuvering, and overall planning coordination and cooperation as dominant factors” to provide reliable guarantee to a long-period safe operation of valley cascade station. The Company has used advanced management and technical means and continuously improved its core capacity of overhauling. The Company has used the Big Data concept for station operation, built a remote diagnosis and analysis platform for valley cascade station equipment and implemented a lean maintenance strategy based on diagnosis and evaluation. The Company strengthened scientific and technological innovation and helped to improve the quality and efficiency of maintenance. Among them, breakthroughs have been made in the key technologies of high-voltage circuit breaker maintenance, and the research and development and operation of high-pressure water knife for concrete breaking and dismantling, 500T transformer hauling equipment, automatic grinding of hydraulic turbine and other tooling have greatly improved the maintenance efficiency and safety factor. After the equipment maintenance and transformation of cascade stations in the basin, all technical indicators are good, the success rate of one-time startup after unit maintenance (including major technical transformation) is 100%, and the equipment operates safely all year round. (IV) Cross-regional power marketing capacity All of the Company's cascade stations are key national energy projects and backbone power sources for "West-to-East Electricity Transmission", and their power is sent across regions and provinces for long-distance consumption. Over the years, the Company has gradually formed a more scientific and perfect large hydropower consumption mechanism, which provides an important guarantee for implementing the national energy strategy, optimizing the allocation of resources, fulfilling social responsibilities, giving full play to the comprehensive benefits, and ensuring the sustainable operation. The Company will continue to comply with the reform direction, closely follow up and analyze the preparation of national and local policies and rules on power market construction and market-oriented trading, strive to give full play to its advantages, and actively strive for an appropriate market environment. Closely focusing on the two cores of benefit and market, and according to the production and consumption characteristics of the Company's power station, continue to expand marketing ideas, innovate marketing strategies and optimize marketing methods. Strengthen the market awareness of all employees in an all-round way, and promote the improvement of cost awareness, service awareness, competition awareness, cooperation awareness, and brand awareness, to maximize the overall benefits of the Company. (V) Capacity of financing and asset acquisition and integration With excellent financial status, stable and abundant cash flow, the Company is the first "A+G" listed entity in China, has the advantages of AAA domestic and national sovereign international credit rating, good reputation in international and domestic capital markets, extensive domestic and foreign market investor coverage and financing channels, and strong investment, merger and acquisition, and financing capabilities. In recent years, the Company insists on strategic leadership, focuses on the main responsibility and main business, and actively and steadily carries out foreign investment in the fields of clean energy, integrated smart energy and upstream and downstream of the industrial chain, etc. The 2021 Annual Report 16 / 292 investment structure is more reasonable and the quality of investment is further optimized, and the Company has the ability to contribute to the investment income in accordance with the scale of the Company. The Company will further leverage its credit advantages, make use of various financing tools and channels, optimize the debt structure and reduce capital costs. It will proactively serve national strategies such as the Yangtze River Economic Belt, "carbon emission peak", "carbon neutrality" and overall protection of Yangtze River; seize major opportunities such as power system reform, mixed-ownership reform, clean energy transformation, and new energy development, and actively pursue industrial chain extension and international development. And it will grasp the good opportunities of capital market reform and continuous improvement of the system, actively and steadily carry out investment around the main business, and carefully carry out market value management. V. Main Operation Conditions in the Reporting Period In 2021, affected by the year-on-year drier water from the Yangtze River and the water storage of new power stations upstream, the generation capacity of cascade stations affiliated to the Company was 208,322 GWh, a decrease of 18,608 GWh or 8.20% over the same period last year; The total profit was RMB 32,409 million, a decrease of RMB 46 million or 0.14% over the same period last year; the net profit attributable to the Parent Company was RMB 26,273 million, a decrease of RMB 25 million or 0.09% over the same period last year; The basic earnings per share was RMB 1.1553, a decrease of RMB 0.03 or 2.53% over the same period last year. (I) Analysis of Main Business 1. Analysis of Changes in Items Relevant to Statements of Profit and Cash Flow Unit: yuan Currency: RMB Item Balance of this period Amount in the same period of the previous year Change proportion (%) Operating revenues 55,646,253,991.83 57,783,367,039.83 -3.70 Operating costs 21,113,077,634.36 21,149,454,266.44 -0.17 Selling expenses 150,419,652.08 115,417,318.42 30.33 Administrative Expenses 1,359,765,980.97 1,292,798,651.45 5.18 Financial expenses 4,751,369,573.92 4,985,909,832.08 -4.70 Research and development expenses 39,416,834.88 39,568,009.51 -0.38 Net cash flows from operating activities 35,732,461,733.26 41,036,864,400.40 -12.93 Net cash flow generated in investment activities -6,565,209,402.80 -36,037,256,431.23 -81.78 Net cash flows from financing activities -28,380,741,024.38 -3,007,326,032.09 843.72 Detailed description of major changes in the Company's business type, profit composition, or source in the current period □ Applicable √ Inapplicable 2. Income and Cost Analysis √ Applicable □ Inapplicable (1). Performance of principal businesses by segment, by product, by region and by sales model Unit: yuan Currency: RMB Main businesses (by industry) Industry Operating revenues Operating costs Gross profit rate (%) Increase & decrease in the operating Increase & decrease in the operating Increase & decrease in the gross margin 2021 Annual Report 17 / 292 income over last year (%) cost over last year (%) over last year (%) Domestic hydropower industry 48,752,352,139.25 16,563,661,037.62 66.02 -7.81 -6.82 Decreased by 0.37% Other industries 5,887,736,575.35 3,996,643,239.96 32.12 35.57 35.99 Decreased by 0.21% Main businesses (by product) Product Operating revenues Operating costs Gross profit rate (%) Increase & decrease in the operating income over last year (%) Increase & decrease in the operating cost over last year (%) Increase & decrease in the gross margin over last year (%) Domestic hydropower industry 48,752,352,139.25 16,563,661,037.62 66.02 -7.81 -6.82 Decreased by 0.37% Other industries 5,887,736,575.35 3,996,643,239.96 32.12 35.57 35.99 Decreased by 0.21% (2). Analytical statement of production and sales volume □ Applicable √ Inapplicable (3). Performance for major purchase contracts and major sales contracts √ Applicable □ Inapplicable Performance for major sales contracts signed by the Company as of the reporting period □ Applicable √ Inapplicable Performance for major purchase contracts signed by the Company as of the reporting period □ Applicable √ Inapplicable (4). Cost analysis Unit: yuan Currency: RMB Condition (by industry) Industry Cost items Amount in the current period Proportion of the amount in the current period out of the total cost (%) Amount of the same period in the previous year Proportion of the amount in the same period of the previous year out of the total cost (%) Proportion of change in the amount of the current period compared with the same period in the previous year (%) Domestic hydropower industry Depreciation cost and various financial levies and 16,563,661,037.62 57.96 17,776,111,875.66 61.77 -6.82 2021 Annual Report 18 / 292 charges Other industries Materials expense and labor cost 3,996,643,239.96 13.99 2,938,930,720.73 10.21 35.99 By products Product Cost items Amount in the current period Proportion of the amount in the current period out of the total cost (%) Amount of the same period in the previous year Proportion of the amount in the same period of the previous year out of the total cost (%) Proportion of change in the amount of the current period compared with the same period in the previous year (%) Domestic hydropower industry Depreciation cost and various financial levies and charges 16,563,661,037.62 57.96 17,776,111,875.66 61.77 -6.82 Other industries Materials expense and labor cost 3,996,643,239.96 13.99 2,938,930,720.73 10.21 35.99 (5). Changes in the scope of consolidation due to changes in the shareholdings of major subsidiaries during the reporting period □ Applicable √ Inapplicable (6). Major changes or adjustments in business, product or service of the Company during the reporting period □ Applicable √ Inapplicable (7). Information on main sales customers and main suppliers A. Main sales customers of the Company The sales amount of the top five customers was RMB 55,014,673,900, accounting for 100% of the annual power selling revenue. The sales amount of related parties was RMB 0 in the sales amount of the top five customers. During the Reporting Period, there were cases in which sales to a single customer exceed 50% of the total, there are new customers among the top five customers, or the Company is heavily dependent on a few customers. □ Applicable √ Inapplicable B. Main suppliers of the Company Purchases from the Company's top five suppliers amounted to RMB 109,464,700, accounting for 25.09% of the total purchases in the year. Among the purchases to the top five customers, the purchases to their affiliates amounted to RMB 35,134,900, accounting for 8.05% of the total purchases in the year. During the Reporting Period, there were cases in which purchases to a single supplier exceed 50% of the total, there are new suppliers among the top five suppliers, or the Company is heavily dependent on a few suppliers. 2021 Annual Report 19 / 292 □ Applicable √ Inapplicable 3. Cost □ Applicable √ Inapplicable 4. R&D Investment (1). R&D Investment Table √ Applicable □ Inapplicable Unit: RMB 10,000 Current expensing R&D investment - Current capitalized R&D investment - Total R&D investment 64,253.92 Proportion of total R&D investment to the operating income (%) 1.15 Proportion of the capitalized R&D investment - (2). R&D Personnel √ Applicable □ Inapplicable Number of R&D personnel of the Company 306 Proportion of the number of R&D personnel in the headcount of domestic companies (%) 7.33 Educational Level of R&D Personnel Educational level Number Doctor's Degree 11 Master’s Degree 151 Bachelor’s degree 137 Junior college 5 Senior high school and below 2 Age Composition of R&D Personnel Age composition Number Under the age of 30 (excluding 30) 23 Aged 30-40 (including 30 and excluding 40) 150 Aged 40-50 (including 40 and excluding 50) 82 Aged 50-60 (including 50 and excluding 60) 51 60 and above 0 (3). Description □ Applicable √ Inapplicable (4). Reasons for Significant Changes in the Composition of R&D Personnel and Impact on the Company's Future Development □ Applicable √ Inapplicable 5. Cash flow √ Applicable □ Inapplicable The net cash flows from investing activities increased by RMB 29,472 million year-on-year, mainly due to the cash payment in the previous year for the acquisition of Luz Del Sur Project in Peru. The net cash flow from financing activities decreased by RMB 25,373 million year-over-year, mainly due to the absorbed investment from the issuance of GDRs in the previous year and the overseas borrowings for the acquisition of the Peruvian company. 2021 Annual Report 20 / 292 (II) Explanation on Material Changes in Profits Resulted from Non-principal Activities □ Applicable √ Inapplicable (III) Analysis on Assets and Liabilities √ Applicable □ Inapplicable 1. Information on assets and liabilities Unit: yuan Currency: RMB Item Name Amount at the end of the current period Proportion of ending amount of current period to total assets (%) Amount at the end of the previous period Proportion of final number of previous period to total assets (%) Changes in proportion of ending amount of current period to ending amount of previous period (%) Other current assets 3,032,334,387.33 0.92 948,456,661.57 0.29 219.71 Other non-current financial assets 1,622,160,091.31 0.49 4,713,666,463.26 1.42 -65.59 Right-of-use assets 637,016,483.14 0.19 Short-term borrowings 12,315,812,640.00 3.75 24,057,628,342.50 7.27 -48.81 Financial liabilities held for trading - 0.00 640,897,029.23 0.19 -100.00 Other current liabilities 4,502,059,923.29 1.37 7,500,533,260.58 2.27 -39.98 Long-term borrowings 36,439,373,166.26 11.09 14,447,141,791.44 4.37 152.23 Lease liabilities 639,176,461.52 0.19 Long-term Payables 11,855,875,004.42 3.61 20,080,756,020.71 6.07 -40.96 The final balance of other current assets was RMB 3.032 billion, up RMB 2.084 billion over the beginning of the period, mainly caused by the investment of equity in advance. The ending balance of other non-current financial assets was RMB 1.622 billion, a decrease of RMB 3.092 billion compared with the beginning balance, which was mainly due to the increase of investment in the reporting period, and the conversion of investment projects with significant impacts into equity method accounting. The change in right-of-use assets and lease liabilities compared with the beginning of the period is mainly due to the implementation of the new lease standards and the reclassification of relevant items in the financial statements during the reporting period. Trading financial liabilities decreased by RMB 641 million compared with the beginning of the period, mainly due to the maturity of dual-currency exchangeable bonds in this reporting period. The ending balance of interest-bearing liabilities was RMB 116.48 billion, down RMB 11.058 billion from the beginning of the period, mainly due to the repayment of due debts. 2. Overseas assets √ Applicable □ Inapplicable (1) Asset size Among them, offshore assets are RMB 40.391 billion, accounting for 12.29% of the total assets. 2021 Annual Report 21 / 292 (2) Notes to the high proportion of oversea assets □ Applicable √ Inapplicable 3. Restrictions on major assets by the end of the reporting period □ Applicable √ Inapplicable 4. Other descriptions □ Applicable √ Inapplicable (IV) Industry Operational Information Analysis √ Applicable □ Inapplicable 2021 Annual Report 22 / 292 Power industry operational information analysis 1. Information on electricity quantity and price in the reporting period √ Applicable □ Inapplicable Generated energy (10MWh) On-grid energy (10MWh) Sales amount (10MWh) On-grid price (RMB/MWh) Selling price (RMB/MWh) Business area/ type of generation This year The same period of previous year Year-on-Year (%) This year The same period of previous year Year-on-Year (%) This year The same period of previous year Year-on-Year (%) This year This year Domestic hydroelectricity 20,832,228 22,693,022 -8.20 20,711,153 22,567,075 -8.22 20,731,070 22,582,869 -8.20 265.63 265.63 TOTAL 20,832,228 22,693,022 -8.20 20,711,153 22,567,075 -8.22 20,731,070 22,582,869 -8.20 2. Information on electricity quantity, income, and cost in the reporting period √ Applicable □ Inapplicable Unit: RMB 100 million Currency: RMB Type Power generat ion (10M Wh) Year-on- Year (%) Sales amount (10M Wh) Year-on- Year (%) INCO ME Amo unt in the same perio d of the previ ous year Chang e propor tion (%) Cost items Amo unt in the curre nt perio d Propor tion of current amoun t to total cost (%) Amo unt of the same perio d in the previ ous year Propor tion of amoun t previo us year to total cost (%) Propor tion of change in the amoun t of the current period compa red with the same period in the previo us year (%) 2021 Annual Report 23 / 292 Domestic hydroelect ricity 20,832, 228 -8.20 20,731, 070 -8.20 487.5 2 528.8 2 -7.81 Depreciation cost and various financial levies and charges 165. 64 57.96 177.7 6 61.77 -6.82 TOTAL 20,832, 228 -8.20 20,731, 070 -8.20 487.5 2 528.8 2 -7.81 - 165. 64 57.96 177.7 6 61.77 -6.82 2021 Annual Report 24 / 292 3. Installed capacity analysis √ Applicable □ Inapplicable Up to the end of 2021, the Company had 45,595MW of installed capacity. Among them, the Company had 45,495MW of domestic installed capacity and 100MW of foreign installed capacity. 4. Generating efficiency analysis √ Applicable □ Inapplicable In 2021, the utilization hours of power generation equipment of the Three Gorges Hydropower Station were 4658.90 hours, a year-on-year decrease of 6.80%; The auxiliary power consumption rate was 0.0716%, with a year-on-year increase of 7.19%; The utilization hours of power generation equipment of the Gezhouba Hydropower Station were 7292.59 hours, a year-on-year increase of 3.23%; The auxiliary power consumption rate was 0.1332%, with a year-on-year decrease of 13.90%; The utilization hours of power generation equipment of the Xiluodu Hydropower Station were 4416.68 hours, a year-on-year decrease of 14.29%; The auxiliary power consumption rate was 0.1523%, with a year-on-year increase of 13.23%; The utilization hours of power generation equipment of the Xiangjiaba Hydropower Station were 5322.58 hours, a year-on-year decrease of 7.41%; The auxiliary power consumption rate was 0.0676%, with a year-on-year increase of 8.68%. 5. Information on the capital expenditures √ Applicable □ Inapplicable In the reporting period, the Company’s fixed assets investment was RMB 1.729 billion, including the purchase of fixed assets of RMB 57 million and infrastructure investment of RMB 1.672 billion. Important constructions in progress are as follows: Unit:yuan Currency: RMB Project Name Beginning amount Increase in the Current Year Transfer to fixed assets Other decreases Ending Balance Xiangjiaba Hydropower Project 1,485,013,496.49 59,195,007.72 1,544,208,504.21 Reconstruction of 170MW hydraulic generator set in Gezhouba Hydropower Station 30,963,713.88 102,349,748.80 94,587.18 133,218,875.50 SAN JUAN—BALNEARIOS Transmission Line Project 109,982,654.24 4,673,521.24 105,309,133.00 Renovation, reconstruction and capacity increase of hydraulic generator set in Gezhouba Hydropower Station 61,643,360.09 76,597,439.58 60,630,605.89 77,610,193.78 Reconstruction of monitoring system of Three Gorges Left Bank Power Station 33,116,587.03 12,020,919.57 45,137,506.60 Reconstruction of 220kV switchyard in Gezhouba Hydropower Station 75,903,756.68 28,040,920.78 53,180,619.77 7,684,693.54 43,079,364.15 BALNEARIOS—MONTERRICO Transmission Line Project 42,337,210.29 1,799,045.97 40,538,164.32 INDUSTRIALES-INGENIEROS 60KV Transmission Line Project 32,478,890.91 1,380,133.87 31,098,757.04 GCB switches added at the outlet of 6 generators of the Three Gorges Left Bank Power Station 29,519,374.10 29,519,374.10 6. Market-oriented Transaction of Electricity √ Applicable □ Inapplicable Current year (100 GWh) Previous year (100 GWh) Year-on-year Changes Total amount of electricity in market-oriented transactions 239.5 320.7 -25.32% Total amount of on-grid electricity 2,071.1 2,256.7 -8.22% 2021 Annual Report 25 / 292 Percentage 11.6% 14.2% Decreased by 2.6% 7. Operation of Electricity Selling Business √ Applicable □ Inapplicable In order to comply with the reform of the national power system, the Company and Three Gorges Capital jointly established Three Gorges Electric Power in June 2016, and launched electricity sales business on the platform of Three Gorges Electric Power. In 2021, the scope of electricity sales business mainly covered the southern power grid region (Guangdong, Yunnan), the eastern power grid region (Shanghai, Zhejiang, Anhui), and the central power grid region (Hubei, Sichuan). At the same time, taking the team mode of "company headquarters + holding and participating companies" as the main body of the market, it participated in the power trading in Sichuan power market for the first time, exploring a new working mode for the Company's power sales business. 8. Other descriptions □ Applicable √ Inapplicable (V). Investment Analysis Overall analysis on foreign equity investment √ Applicable □ Inapplicable By the end of 2021, the Company held a total of 59 equity stakes, with a cumulative original investment balance of about RMB 52.6 billion and an additional foreign investment of RMB 13 billion during the reporting period. 1. Major equity investment √ Applicable □ Inapplicable During the reporting period, Peruvian Opportunity Company S.A.C (hereinafter referred to as "POC"), a subsidiary of Yangtze Andes, as an offeror to fulfill the obligation of mandatory tender offer, made a mandatory tender offer for the remaining shares of not more than 13.7% of Luz Del Sur, LDS at a price of USD 8.5346 per share. The mandatory tender offer was completed on February 24, 2021, and POC acquired a total of 65,718,458 ordinary shares of Luz Del Sur, LDS, accounting for about 13.5% of the total capital stock of Luz Del Sur, LDS, with a payment consideration of USD 560,880,751.65. After the completion of this mandatory tender offer, Yangtze Andes indirectly holds about 97.14% of the shares of Luz Del Sur, LDS. For details of the transaction, please refer to the relevant announcement issued on the website of Shanghai Stock Exchange (http://www.sse.com.cn/), with an announcement No.: 2021-012. On September 24, the Proposal on Participating in Capital Increase and Share Expansion of Dinghe Property Insurance Co., Ltd. was deliberated and approved on the Company's 26th Meeting of the Fifth Board of Directors by telecommunication. Currently, the capital increase agreement has been signed, the funds has been paid and approved by the regulator. The Company will assist Dinghe Insurance to complete the industrial and commercial changes as soon as possible and carry out the post-investment management properly. For details of the transaction, please refer to the relevant announcement issued on the website of Shanghai Stock Exchange (http://www.sse.com.cn/), with an announcement No.: 2021-042. 2. Major non-equity investment □ Applicable √ Inapplicable 3. Financial assets at fair value √ Applicable □ Inapplicable As of the end of 2021, the ending balance of investment in other equity instruments and other non-current financial assets of the Company was RMB 3.457 billion and 1.622 billion, respectively. 4. Specific progress of material asset reorganization and integration during the reporting period √ Applicable □ Inapplicable 2021 Annual Report 26 / 292 On November 29, 2021, the Company disclosed the Announcement on Suspension of Trading for Planning of Material Asset Reorganization, the Company's shares were suspended from trading with immediate effect and the Company started the work of material assets reorganization. On December 10, the Proposal on "the Plan for China Yangtze Power Co., Ltd. on Issuing Shares and Convertible Corporate Bonds, Purchasing Assets by Cash and Raising Subscription Funds as well as on Related Party Transactions" and its Summary and other proposals related to this material assets reorganization were deliberated and approved on the Company's 30th Meeting of the Fifth Board of Directors. On December 13, the Company's stock resumed trading. On December 24, Inquiry Letter on Disclosure of Information about Reorganization Proposal of China Yangtze Power Co., Ltd. (SZGH [2021] No. 3021) from the Shanghai Stock Exchange. The Company, together with relevant parties and intermediaries of this material asset reorganization, carefully analyzed, verified, and replied to the questions in the Inquiry Letter item by item, and supplemented and revised the material asset reorganization plan and other documents, relevant verification opinions were also issued by intermediaries. The Company, the relevant parties, and intermediaries of the material asset reorganization are orderly promoting the due diligence, audit, and evaluation involved in this material asset reorganization, and preparing the Reorganization Report and relevant documents. After the relevant work is completed, the Company will convene the Meeting of the Board of Directors again to review the matters related to this material asset reorganization, and the Board of Directors will convene the General Meeting of Shareholders to review the relevant proposals of this transaction. For details of the above transactions, please refer to the relevant announcements issued on the website of Shanghai Stock Exchange (http://www.sse.com.cn/). Announcement No.: 2021-051, 2021-052, 2021-053, 2021-058, 2021-059, 2021-060, 2021-061, 2021-065, 2021-066, 2022-002, 2022-007, 2022-013, 2022-019. Opinions of independent directors: 1. The transaction constitutes a related party transaction, and the proposal and related motions of the transaction have been approved by us in advance before being submitted to the Board of Directors of the Company for deliberation. The relevant proposal of the transaction has been deliberated and approved at the 30th Meeting of the Fifth Board of Directors of the Company, and the related Directors have recused themselves from voting following the law. The convening, holding and voting procedures of the meeting of the Board of Directors are in compliance with the provisions of laws, regulations, and the Articles of Association and the resolutions of the meeting of the Board of Directors are legal and effective. 2. The transaction is in compliance with the provisions of the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, the Administrative Measures for the Material Asset Reorganizations of Listed Companies, the Provisions on Regulating Several Issues Concerning Material Asset Reorganizations of Listed Companies, the Measures for the Administration of Securities Issuance by Listed Companies, the Measures for the Administration of Convertible Corporate Bonds and other laws, regulations and regulatory documents, and the proposal is reasonable and operable. 3. The transaction price of the underlying assets of this transaction will be based on the evaluation results determined in the evaluation report issued by the asset evaluation institution in accordance with the provisions of the Securities Law and filed by the competent state-owned assets supervision and administration institution. The pricing of the underlying assets is fair and reasonable and in compliance with the relevant laws and regulations, and no damage to the interests of the Company and other shareholders exists. 4. The Plan for China Yangtze Power Co., Ltd. on Issuing Shares and Convertible Corporate Bonds, Purchasing Assets by Cash and Raising Supporting Funds as well as on Related Party Transactions formulated by the Company for this transaction is in compliance with the relevant laws and regulations and is feasible. 5. The pricing principles involved in the issuance of shares, convertible corporate bonds, and the raising of supporting funds to the Counterparty in this transaction comply with the provisions of relevant laws, regulations and regulatory documents, and the pricing is fair and reasonable, without any damage to the interests of the Company and all shareholders. 6. This transaction is conducive to enhancing the core competitiveness and sustainable profitability of the Company, reducing related party transactions and avoiding horizontal competition, which is conducive to the long-term development of the Company and in line with the interests of all shareholders of the Company. 2021 Annual Report 27 / 292 7. It is agreed that the Company and the Counterparty sign the Material Assets Purchase Agreement of China Three Gorges Corporation, Yangtze River Three Gorges Investment Management Co., Ltd., Yunnan Provincial Energy Investment Group Co., Ltd., Sichuan Energy Industry Investment Group Co., Ltd., and China Yangtze Power Co., Ltd. with effective conditions, as well as the overall arrangement of the Board of Directors on this transaction. For details of the above, please refer to the "Independent Opinion of the Independent Directors of CYPC on Issuing Shares and Convertible Corporate Bonds (if any), Purchasing Assets by Cash and Raising Supporting Funds as well as on Related Party Transactions by the Company" issued on the website of Shanghai Stock Exchange (http://www.sse.com.cn/) on December 11, 2021. (VI) Sales of Material Assets and Equity □ Applicable √ Inapplicable (VII) Analysis of Main Holding Companies and Joint-stock Companies √ Applicable □ Inapplicable 1. Analysis on main subsidiaries Monetary Unit: RMB 10,000 Name Shareholding proportion (%) Registered Capital Total assets Net assets Net Income Business scope CYPC Capital Holding Co., Ltd. 100 300,000.00 375,558.07 365,295.34 47,544.43 High-tech investment; industrial investment; equity investment; securities investment; asset management; investment management and consultation. China Yangtze Power International (Hong Kong) Co., Ltd. 100 USD 154 million 3,752,594.04 2,457,472.79 141,220.57 Development, investment and operation of overseas power projects, and equity investment in related industries. Three Gorges Jinsha River Chuanyun Hydropower Development Co., Ltd. 100 3,400,000.00 12,465,281.24 8,940,514.13 971,994.84 Hydropower development, construction, investment, operation and management; clean energy development and investment; professional and technical services for clean energy. Three Gorges Power Co., Ltd. 70 200,000.00 197,164.93 190,618.81 3,780.02 Development, construction, design and operation management of power distribution and sales system; electricity sales and services; development, consultation, transfer and service of electric power technology; carrying, repairing and testing power equipment and facilities; electric vehicle charging 2021 Annual Report 28 / 292 Name Shareholding proportion (%) Registered Capital Total assets Net assets Net Income Business scope service; distributed new energy comprehensive utilization service; energy service integrating power supply, gas supply, water supply and heat supply. CYPC Investment Management Co., Ltd. 100 500,000.00 478,878.43 461,037.56 61,037.56 Securities investment consulting. General projects: investment management, industrial investment, venture capital, information consulting services (excluding licensing information consulting services), business management, social and economic consulting services. CYPC Xinneng Co., Ltd. 100 700,000.00 145,893.48 144,743.99 -5,256.01 Hydroelectric power. General projects: solar power generation; wind power generation; energy storage. CYPC Sales Ltd. 100 100,000.00 2,028.02 2,026.95 26.87 Electricity supply. General projects: energy conservation management services, sales agents, information consulting services (excluding licensing information consulting services). Technical services, technology development, technical consulting, technology exchange, technology transfer, technology promotion, comprehensive energy management services and contract energy management services in the field of power science and technology. 2. Analysis on main joint-stock companies Monetary Unit: RMB 10,000 Name Shareholding ratio (%) Registered Capital Business scope Hubei Energy Group Co., Ltd. 28.61 650,744.95 Energy investment, development, management, and other business permitted by national policy. Three Gorges Finance Co., Ltd. 19.35 500,000.00 Providing financial and financing consultancy, credit verification and related consulting and agency services for member units; assisting member units to realize the receipt and payment of transaction funds; providing guarantee to member units; handling entrusted loans and entrusted investments between member units; 2021 Annual Report 29 / 292 handling acceptance and discount of bills for member units; handling internal transfer settlement between member units and corresponding settlement and liquidation plan design; absorbing deposits from member units; handling loans and financial leasing to member units; being engaged in interbank borrowing; issuing bonds of financial company with approval; underwriting corporate bonds of member units; equity investment in financial institutions; portfolio investment; buyer's credit and financial leasing of member unit products; other businesses approved by the China Banking Regulatory Commission. Guangzhou Development Group Incorporated 15.35 354,405.55 Commodity retail trade (except for licensed commodities); commodity wholesale trade (except for licensed commodities); investment of enterprise own funds; enterprise management services (except those involving licensed business projects); management of enterprise headquarters; wholesale of coal and its products; wholesale of petroleum products (except refined oil and hazardous chemicals); retail of electrical equipment; general machinery and equipment retail; development of natural gas utilization technology; research, development and design of solar photovoltaic power supply system; engineering project management services; energy-saving technology promotion services; environmental technology promotion services; technical consultation and services in the field of renewable energy; municipal facilities management; technical services (excluding licensed items). Shenergy Group Company Limited 12.20 491,203.83 Power construction, energy, energy conservation, comprehensive utilization of resources and related projects, the development of raw materials related to energy construction, high technology and export projects earning foreign exchange, investment and operation. Guangxi Guiguan Electric Power Co., Ltd. 11.12 788,237.78 Development, construction, and operation of hydropower stations, thermal power plants, and various types of power plants, clean energy development, power transmission and transformation projects, organization of power (thermal) production and sales, construction of water conservancy and hydropower projects, installation, repair and test of power facilities, fabrication and installation of hydraulic metal structures, machinery manufacturing, processing and repair, engineering measurement, economic and technical consultation in power finance, property management, hotel management, catering services, domestic trade, staff internal training. Three Gorges Capital Holdings Co., Ltd. 10.00 714,285.71 Industrial investment; equity investment; asset management; investment consulting. Chongqing Three Gorges Water Conservancy and Electric Power Co., Ltd. 18.62 191,214.29 Power generation; power supply, sales and services; development, construction, design and operation management of distribution power system; engineering survey and design; installation (repair and test) of power facilities; power technology development, technology transfer, technology consultation and technology services; sales and leasing of electric power materials; power project development; distributed energy comprehensive utilization service; integrated energy service integrating power supply, gas supply, water supply and heat supply; production, processing and sales of roasted manganese, manganous carbonate, silicon-manganese alloy and manganese-iron alloy. SDIC Power Holdings Co., Ltd. 17.59 696,587.33 Investment, construction and operation management of energy project dominated by power production; development and operation of new energy project, high-tech technology and environmental protection industry; and development and operation of power supporting products and information, and consulting services. Sichuan Chuantou Energy Co., Ltd. 11.05 440,615.54 Investment, construction and operation management of energy project dominated by power production; development and operation of new energy project, power supporting products and information, and consulting services; and investment and 2021 Annual Report 30 / 292 operation of railway and traffic system automation as well as intelligent control product, optical fiber, optical cable and other high-tech industries. Yunnan Huadian Jinsha River Middle Reaches Hydropower Development Co., Ltd. 23.00 779,739.00 Basin cascade planning and preliminary work; investment, construction and management of power stations; operation regulation and dispatching of power stations in the basin; production and sale of electric energy; procurement of water conservancy and hydropower materials and equipment; technical advisory services of water conservancy and hydropower engineering. (VIII) Structured Entities Controlled by the Company □ Applicable √ Inapplicable VI. Discussion and Analysis by the Company on Future Development of the Company (I)Industrial Pattern and Development Trend √ Applicable □ Inapplicable 1. It is estimated that the overall balance of power supply and demand will be achieved in China but with a shortage in some regions in 2022 According to the forecast of the China Electricity Council, taking into account the domestic and international economic situation and power substitution, it is expected that the power consumption of the whole society will increase by 5% - 6% year-on-year in 2022. The growth rate of power consumption of the whole society in each quarter is generally increasing quarter by quarter, and the power supply and demand in some regions are relatively short during peak summer and peak winter. 2. Accelerated promotion of green and low-carbon energy transformation by the country Under the goals of "carbon emission peak" and "carbon neutrality", the country has stepped up efforts to accelerate the green and low-carbon energy transformation. It is required by 2030 to basically establish a complete basic system and policy system for green and low-carbon energy development, and form an energy production and consumption pattern in which non-fossil energy can basically meet the increment of energy demand, standardize the stock of fossil energy and comprehensively enhance the ability of energy security. As a source of renewable energy, hydropower is safe, stable, clean, efficient and flexible in operation, and is highly compatible with the national energy strategy. The large hydropower projects operated and managed by the Company are key national energy projects and the backbone power supply of "West-to-East Electricity Transmission". The consumption scope involves two major power grids, three major regions and 12 provinces and cities. Over the years, the Company has established and maintained good cooperative relations with all regions. With the further deepening reform of the power market, the value of hydropower's electric energy, reliability, flexibility and green environment will be fully utilized, and the Company's competitiveness will be further improved. (II)Company's Development Strategy √ Applicable □ Inapplicable During the "14th Five-Year Plan", the Company will adhere to the new concept of development, build a new development pattern, actively serve the national carbon peak and neutrality strategies, the Yangtze River economic belt and other major national strategic deployment, unswervingly promote market-oriented reform, digital transformation, international expansion, further consolidate the leading position in the world hydropower industry, and strive to create a world-class clean energy listed company with the core of hydropower. During the "14th Five-Year Plan", the Company will further consolidate, deepen and expand the new development model. First, in terms of the industry chain, the Company will promote power generation and sales of electricity to achieve an effective extension of the industry chain. Second, in terms of the energy structure, the Company will develop it into hydro-wind-photovoltaic storage and multi-energy complementary, to build an integrated development pattern of hydro-wind-photovoltaic storage. Third, in terms of the business form, the Company will continue to strengthen the development of integrated smart energy, and expand from the power generation side to the customer-side integrated services. Fourth, in terms of the development of regional, the Company will transfer the production system advantages into 2021 Annual Report 31 / 292 new advantages to participate in international cooperation and competition, and continue to expand internationally while strengthening the domestic business. (III)Operating Plan √ Applicable □ Inapplicable Power Generation Plan: In 2022, under the conditions that the total volume of water for the Xiluodu Reservoir is not less than 145 billion cubic meters, the total volume of water for the Three Gorges reservoir is not less than 430 billion cubic meters, and the distribution of water during the year is favorable for power generation, the annual power generation plan of the Company's cascade stations is 212,700 GWh. Marketing Plan: According to the marketing idea of "deepening market concept, strengthening analysis and study, strictly controlling market risk, and perform well on electricity consumption", the Company will actively follow the new situation of the electricity market, actively participate in the reform of the electricity system, plan scientifically for a long-term, enhance the core capacity, make every effort to strive for a fair and reasonable market environment, coordinate and carry out key works like electricity consumption, tariff negotiation, market transactions, and cash market value and create market benefits. Investment Plan: Take value creation as the direction, adhere to the focus on the main responsibility and the main business, and actively and steadily carry out strategic investment around the business expansion directions such as clean energy, distribution and sale of electricity, and integrated smart energy and other. The Company will adhere to activating the stock assets, strengthen active management of market value, and fully explore the value of stock equity combined with capital market trends. The Company will adhere to select investment targets with high standards, aim at value investment, long-term investment and a large proportion of equity participation to achieve good development of the Company in the "14th Five-Year Plan" and promote sustainable growth in scale and performance. Financing Plan: Closely track the market situation and policies, strengthen the analysis and study ability, scientifically formulate financing strategies, innovate financing methods, preferably select financing varieties and tools, expand financing channels, accurately hold the market window opportunities, actively innovate financing methods, continue to take advantage of the Company's high credit rating, optimize the Company's capital structure and reasonably suppress financing costs. (IV)Possible Risks √ Applicable □ Inapplicable 1. Risks of water inflow from the Yangtze River The giant hydropower stations of the Company are distributed in the middle and upper reaches of the Yangtze River, and the generation capacity is closely related to the water from the Yangtze River. The uncertainty of water from the basin and the water storage of new hydropower projects in the upper reaches may have a certain impact on the power production and generation capacity of the Company. The Company will pay close attention to the influence of meteorological change on the water and rain regimen and strengthen the cooperation with the hydrological and meteorological and engineering construction units to propel the perfection of the reservoir information sharing mechanism in the upper Yangtze River basin, constantly increase the forecast and analysis ability of water and rain regimen, carry out in-depth joint dispatching of cascade reservoirs in the river basin, coordinate the needs of flood control, power generation, shipping, and water replenishment, and make the most of comprehensive benefits in the cascade water control project. 2. Risks of work safety The cascade stations of the Company are located in the main stream of the Yangtze River and undertake many tasks such as flood control, power generation, shipping, and water replenishment, with complex operating conditions. Because of the large capacity and number of units and the many types and long operation cycle of the equipment in the power stations affiliated to the Company, the operation and management of the equipment are difficult and the responsibility for dam safety management is heavy. The Company will continue to take the management of five major security risks, including, major personal casualties, flooded plants, large-scale power outages, major equipment and facility damages, and major network information security incidents, as the focus to implement the enterprise safety management responsibility, innovate and develop the dual prevention mechanism, summarize and solidify the management experience, improve the construction level of intrinsic safety enterprise, form a long-term mechanism for risk management and control, and to promote the comprehensive conclusion of the 2021 Annual Report 32 / 292 three-year special rectification action of work safety. The promotion of innovation study of work safety and result application will also be continually carried out to reduce and eliminate safety risks with the help of technological innovation and the Company will summarize and refine the concept of safety culture, and create a safety culture brand rich in the characteristics of CYPC. 3. Risks of power markets Under the reform of the power system further deepened by the country, and the deepening and promotion of the medium and long term trading, auxiliary service market, and spot market, the Company needs to face the impact of external environment uncertainty. The Company will actively follow the development of the electricity market and the reform of the power system, track and analyze the changes in the situation of power supply and demand, and formulates marketing strategies by province and city, by power station, and by step with considering the economic development of the power receiving provinces and cities, the power supply structure, the load situation, and the power generation characteristics of the Company's power stations, etc. Multi-dimensional strategic collaboration with related parties will be explored and carried out based on cascade large hydropower. Continuously keep the advantages on professional and policy, closely follow up the construction of the electricity market-related policies, and actively strive for fair, scientific, and reasonable market rules. Hold the opportunity of power system reform, steadily improve the Company's core marketing capabilities, and enhance the deep power of development. 4. Risks of investment control Under the continuous spreading of the COVID-19 epidemic, the slowdown of global economic growth, and the adjustment of domestic economic structure, the Company's foreign investment has been affected by various factors such as domestic and foreign politics, economy, major natural disasters, capital market changes, and increased market competition, which result in difficulty in foreign investment, and investment income may be lower than expected. After the investment is completed, there are differences in aspects of the region, culture, system, and thinking, and the acquisition project also faces certain risks of management and control and cultural integration. The Company will establish a standardized and complete investment management system, to complete the preliminary research, due diligence, and feasibility study of the project, and strictly examines and evaluates the investment direction, working procedures, investment income, potential risks, and other factors. For the selection of the window period for investment, the Company will continuously pay attention to changes in financial markets of domestic and overseas capital and strengthen research on exchange rate and interest rate trends in relevant regions. Explore innovative management models and mechanisms to ensure flexible and efficient project follow-up management and rational implementation of dynamic adjustment of equity interest. (V)Others □ Applicable √ Inapplicable VII. Description for Situation and Cause that the Company Did Not Disclose According to the Criterion Due to Inapplicable Criteria or Special Causes Concerning the State Secret and Business Secret □ Applicable √ Inapplicable Section IV Corporate governance I. Explanation on the Corporate Governance √ Applicable □ Inapplicable In strict accordance with the requirements of laws and regulations such as the Company Law, the Securities Law, the Code of Corporate Governance of Listed Companies, and the Rules Governing the Listing of Stocks on the Shanghai Stock Exchange, the Company will continuously improve the corporate governance structure of the Company, establish and improve the corporate governance structure with "Three Boards and One Level", i.e. the General Meeting of Shareholders, Board of Directors, and Board of Supervisors, and the Management Level, as the core, carry out its work in strict accordance with its respective authority and procedures, promote the Board of Directors to perform its duties and exercise its 2021 Annual Report 33 / 292 powers following the law and regulations, ensure that the powers of the Board of Directors were implemented in practice, and effectively safeguard the interests of all shareholders. The Company takes the enterprise governance by law without crossing the red line as the primary premise and basic standard of governance and operation, fully integrates the requirements of the enterprise governance by law into all links of enterprise decision-making and operation, runs it through all business fields, managements, and posts. During the reporting period, the General Meeting of Shareholders, the Meeting of the Board of Directors and the Special Committee, and the Meeting of the Board of Supervisors were held 30 times, and a total of 135 motions were reviewed and approved, with an approval rate of 100%. The Company fully ensured the duty performance services of Directors and Supervisors, established the working mechanism of "three reports" (pre-report, daily report and major event report), "two investigations" (regular investigation and special investigation) and "one closed cycle" (report - implementation - second report), formulated and effectively implemented the annual investigation plan; Organized 11 person-times of Directors and Supervisors to participate in the duty performance training organized by Listed Companies Association of Beijing and Shanghai Stock Exchange; Timely revise the corporate governance system such as the Authorization Management System of the Board of Directors of the Company to promote the standardized operation of the company; The Company has won the class-A evaluation on the annual assessment of information disclosure of Shanghai Stock Exchange with true, accurate, complete, timely and fair information disclosure; The working mode of investor relations management was continuously innovated, the communication channels of investors were broaden, and the rights and interests of investors were effectively protected; In February 2022, the Company was rated as "Demonstration Enterprise of Governance in State-owned Enterprise" by the State-owned Assets Supervision and Administration Commission of the State Council. Whether there are material differences between corporate governance and the provisions of laws, administrative regulations, and China Securities Regulatory Commission on the governance of listed companies; if so, the reasons should be given. □ Applicable √ Inapplicable II. Specific measures taken by the Controlling Shareholde r and the Actual Controller to ensure the independence of the Company's assets, personnel, finance, departments, and business, as well as the solutions, work schedule, and follow-up work plan made to affect the independence of the Company □ Applicable √ Inapplicable The situation that the Controlling Shareholder, the Actual Controller, and other companies under their control are engaged in the same or similar business as the Company, the impact of the horizontal competition or significant changes in the horizontal competition on the Company, solutions taken, progress and the follow-up solutions □ Applicable √ Inapplicable III. Introduction to General Meeting of Shareholders Session number of meeting Holding date Query index of resolutions at the named websites Date to disclose resolutions published Meeting resolution 2020 General Meeting May 31, 2021 Website of Shanghai Stock Exchangewww.sse.com.cn Announcement No.: 2021-029 June 1, 2021 The followings were reviewed and approved: 1. The Company's 2020 Annual Work Report of the Board of Director 2. The Company's 2020 Annual Work Report of the Board of Supervisors 2021 Annual Report 34 / 292 3. The Company's 2020 Annual Final Accounting Report 4. The Company's 2020 Profit Distribution Plan 5. Proposal on Appointment of the Company's 2021 Annual Financial Report Auditors 6. Proposal on Appointment of the Company's 2021 Annual Internal Control Auditors 7. Proposal on Carrying Out Short-term Investment with Fixed Income in 2021 8. Proposal on Signing the Framework Agreement of Financial Services with Three Gorges Finance (Hong Kong) Co., Ltd 9. Proposal on Change of Registered Capital and Revision of the Company's Articles of Association after the Company's Listing on London Stock Exchange 10. Proposal on Election of Directors 11. Proposal on Election of Supervisors The preferred shareholders whose voting rights are restored request for an extraordinary general meeting □ Applicable √ Inapplicable 2021 Annual Report 35 / 292 IV. Directors, Supervisors, and Senior Executives (I) Changes in Shareholding and Compensation of Directors, Supervisors, and Senior Executives Currently in Office and Leaving Pos ts in the Reporting Period √ Applicable □ Inapplicable Unit: share Full name Position (Note) Gender Age Starting date of tenure Ending date of tenure Number of shares held at the beginning of year Number of shares held at the end of year Increase or decrease of stocks within the year Causes for changes Total pre-tax compensation acquired from the Company in the reporting period (RMB 10,000) Whether receiving compensation from related parties of the Company Lei Mingshan Chairman Male 60 2018-12 0 0 Yes Ma Zhenbo Deputy Chairman Male 58 2018-07 0 0 117.91 Zhang Xingliao Directors/General Managers Male 50 2020-11/ 2020-10 0 0 96.31 Guan Jielin Director Male 57 2022-03 0 0 98.02 Hu Weiming Director Male 57 2022-03 0 0 Yes Zong Renhuai Director Male 56 2016-05 0 0 Su Jinsong Director Male 55 2021-05 0 0 Su Tianpeng Director Male 42 2022-03 0 0 Zhao Yan Director Female 52 2016-05 0 0 Hong Meng Director Male 42 2022-03 0 0 Yes Zhang Biyi Independent Director Male 68 2017-03 0 0 15 2021 Annual Report 36 / 292 Wen Bingyou Independent Director Male 67 2017-03 0 0 15 Yan Hua Independent Director Male 67 2017-11 0 0 15 Huang Delin Independent Director Male 68 2022-03 0 0 Huang Feng Independent Director Male 65 2022-03 0 0 Zeng Yi Chairman of the Board of Supervisors Male 51 2021-06 0 0 Yes Mo Jinhe Supervisor Male 57 2015-05 0 0 Xia Ying Supervisor Female 52 2017-05 0 0 Sheng Xiang Supervisor Male 57 2018-12 0 0 Teng Weiheng Supervisor Male 39 2019-08 0 0 Ma Zhitao Employee supervisor Male 55 2022-01 0 0 Huang Xun Employee supervisor Female 44 2022-01 16000 16000 Lu Jinsong Employee supervisor Male 47 2022-01 0 0 Zhan Pingyuan Chief Financial Officer Male 49 2019-04 0 0 98.47 Xie Jun Deputy General Manager Male 52 2020-10 0 0 91.26 Chen Hui Deputy General Manager Male 46 2020-10 0 0 95.84 Ran Yichuan Deputy General Manager Male 52 2021-10 0 0 94.29 Xue Ning Board secretary Male 48 2022-01 0 0 Hong Wenhao Director Male 58 2016-05 2021-02 0 0 Yes Li Director Female 52 2020-05 2021-04 0 0 2021 Annual Report 37 / 292 Qinghua He Hongxin Director Male 51 2018-12 2022-03 0 0 Yes Wang Shiping Director Male 58 2021-05 2022-03 0 0 Yes Zhou Chuan'gen Director Male 56 2016-05 2022-03 0 0 Zhao Qiang Director Male 56 2018-07 2022-03 0 0 Yes Zhang Chongjiu Independent Director Male 69 2015-05 2022-03 0 0 15 Lyu Zhenyong Independent Director Male 74 2015-10 2022-03 0 0 15 Yang Xingshi Chairman of the Board of Supervisors Male 56 2018-12 2021-03 0 0 Hu Yang Employee supervisor Female 54 2019-08 2022-01 0 0 50.89 2 Yes Chen Yanshan Employee supervisor Male 48 2019-08 2022-01 0 0 91.06 Yang Xingbin Employee supervisor Male 60 2018-12 2022-01 0 0 69.79 Guan Jielin Deputy General Manager Male 57 2015-10 2021-06 0 0 Li Shaoping Board secretary Male 58 2016-08 2022-01 0 0 93.78 TOTAL / / / / / 16,000 16000 / 1,072.62 / Full name Main Work Experiences Lei Mingshan Chairman, with a master’s degree, Senior Economist. He has served as the General Manager Assistant and Deputy General Manager (director-general level) of China International Engineering Consulting Corporation, Deputy General Manager of China International Engineering Consulting Corporation, Deputy Director (director-general level) of Inspection Department of Executive Office of State Council Three Gorges Project 2 Ms. Hu Yang, employee supervisor, will not receive remuneration from the Company from June 2021. 2021 Annual Report 38 / 292 Construction Committee, Director of Capital Planning Department, Deputy Director of Executive Office of State Council Three Gorges Project Construction Committee, Deputy Minister of the Ministry of Water Resources. He is currently the Chairman of China Three Gorges Corporation. Ma Zhenbo Vice Chairman, Master of Engineering and Senior Engineer. He has served as Director of Gezhouba Power Plant, Director of Three Gorges Power Plant, Deputy General Manager of the Company, Director of the Human Resources Department of China Three Gorges Corporation and Director of the Retired Worker Management Office. He is currently the General Manager Assistant of China Three Gorges Corporation, Vice Chairman of the Company. Zhang Xingliao Director, General Manager, Master of Management, Senior Accountant, and Certified Public Accountant. He has served as Deputy Manager of the Financial Department of the Company, Deputy Manager of the Financial Department of the Company and the Deputy General Manager and Chief Financial Officer of Hubei Daye Nonferrous Metals Co. Ltd, Deputy Manager of the Financial Department of the Company as well as the Vice-Chairman of the Board of Supervisors of Hubei Daye Nonferrous Metals Co. Ltd, Deputy Chief Economist of the Company as well as Director, Deputy General Manager and Chief Accountant of Hubei Qingneng Real Estate Group Co. Ltd, Deputy Director of the Asset Finance Department, Deputy Director (in charge) and Director of China Three Gorges Corporation, General Manager of Three Gorges Finance Co., Ltd. He is currently the Director, General Manager of the Company. Guan Jielin General Manager, Doctor of Engineering and Senior Engineer. He successively held the posts of Chief Engineer, Deputy Director and concurrently Chief Engineer of Three Gorges Hydropower Plant, Deputy Head of Jinsha River Power Production Preparatory Working Group, Deputy Director and Director of Preparatory Office of Xiluodu Hydropower Plant, Director of Xiluodu Hydropower Plant, Deputy General Manager of the Company and concurrently Director of Xiluodu Hydropower Plant, Deputy General Manager. He is currently the Director of the Company. Hu Weiming Director, Master of Engineering and Senior Engineer. He successively held the posts of General Manager of Three Gorges Mechanical and Electrical Engineering Technology Co., Ltd., General Manager of China Three Gorges Construction Management Co., Ltd. and General Manager of Three Gorges Mechanical and Electrical Engineering Technology Co., Ltd. He is currently the General Manager of China Three Gorges Construction Engineering Corporation. Zong Renhuai Director, Master of Engineering, MBA, and Senior Engineer. He successively held the posts of Director of the Planning and Development Department of Guodian Dadu River Hydropower Development Co., Ltd., Executive Deputy General Manager and General Manager of Panzhihua Huarun Hydropower Development Co., Ltd., and was responsible for power supply development in Sichuan Energy Industry Investment Group Co., Ltd. He is currently the Deputy General Manager of Sichuan Energy Industry Investment Group Co., Ltd. Su Jinsong Director, bachelor’s degree, Senior Engineer. He successively held the posts of Assistant to the President of Yunnan Provincial Energy Investment Group Co., Ltd., General Manager of Yunnan Provincial Power Investment Co., Ltd., President and Chief Operating Officer of Beijing CPCEP Energy Conservation and Environmental Protection Technology Co., Ltd., Chairman of Yunnan Provincial Power Investment Co., Ltd. He is currently General Manager of the Equity Management Center of Yunnan Provincial Energy Investment Group Co., Ltd. Su Tianpeng Director, Ph.D. in Finance. He successively held the posts of the Customer Manager of Shanghai Sub-branch of Shanghai Pudong Development Bank, the Investment Manager, Deputy Manager, and Department Head of the Direct Investment Business Division of Ping An Asset Management Co., Ltd. He is currently the Senior Managing Director (Administrative Director) of Direct Investment Business Division of Ping An Asset Management Co., Ltd. Zhao Yan Director, Master of Science, MBA and Financial Risk Manager (FRM) She once served as Portfolio Manager of Taikang Asset Management Co., Ltd., Manager of Deloitte Management Consulting Co., Ltd., General Manager of Asset Management Center of Sunshine Insurance Group Co., Ltd., 2021 Annual Report 39 / 292 Assistant General Manager and Chief Risk Officer of Sunshine Asset Management Co., Ltd. She is currently Deputy General Manager, Director and Secretary of the Board of Directors of Sunshine Asset Management Co., Ltd. Hong Meng Director, Master of Accounting (Ph.D. in progress), Senior Accountant, National Accounting Leader (Reserve) of the Ministry of Finance, Certified Public Accountant, Certified Tax Agent, US Certified Management Accountant. He successively held the posts of the Deputy Manager, Deputy Manager, Deputy Director (presiding over the work), and Director of the Financial Assets Department of China National Nuclear Power Co., Ltd., and the Chief Accountant of China Nuclear Industry Huaxing Construction Co., Ltd. He is currently the Deputy Director of the Finance Department of China National Nuclear Corporation. Zhang Biyi Independent Director and Senior Accountant. He successively held the posts of Deputy General Manager, Chief Accountant of China Shipbuilding Industry Corporation (CSIC). Wen Bingyou Independent Director and Senior Engineer. He successively held the posts of Director of China Dongfang Electric Corporation. Yan Hua Independent Director and Senior Economist. He successively held the posts of General Manager Assistant of Commercial Aircraft Corporation of China, Ltd. Huang Delin Independent Director and Senior Engineer. He successively held the posts of Deputy General Manager of Wuhan Iron and Steel (Group) Corporation. Huang Feng Independent Director and Senior Engineer. He successively held the posts of Deputy General Manager, and concurrently Deputy Director of the Expert Academic Committee of China International Engineering Consulting Corporation. He is currently the Deputy Director of Expert Academic Committee of China International Engineering Consulting Corporation. Zeng Yi Chairman of the Board of Supervisors, Senior Accountant. He successively held the posts of Deputy Director and Director of Finance Department of Dongfang Electric Co., Ltd., Director of Assets and Finance Department of both Dongfang Electric Corporation and Dongfang Electric Co., Ltd., Director of Audit Department of both Dongfang Electric Corporation and Dongfang Electric Co., Ltd., and Director and General Manager of Dongfang Electric Group Finance Co., Ltd. He is currently the Chief Accountant of China Three Gorges Corporation. Mo Jinhe Supervisor, Bachelor's Degree in Accounting, Senior Economist, Senior Auditor, and International Certified Internal Auditor. He successively held the posts of Chief Accountant of Hainan Power Grid Company, Deputy Director of Financial Department of China Southern Power Grid Co., Ltd. and Chief Accountant of Guangdong Power Grid Co., Ltd. He is currently the first-class employee, deputy general manager and chief accountant of Guangdong Power Grid Co., Ltd. Xia Ying Supervisor with a bachelor’s degree and Senior Engineer. She has successively served as Deputy Director and Director of the Capital Market Office of the Capital Operation Department of China National Petroleum Corporation. Now he is a full-time director and supervisor of the Finance Department of China National Petroleum Corporation. Sheng Xiang Supervisor and Senior Accountant. He has successively served as the deputy director and the head of the finance department of Sichuan Tianhua Co., Ltd., the head of assets finance department of Sichuan Chemical Industry Holding (Group) Co., Ltd., and the head of the financial assets department (settlement center) of Sichuan Energy Industry Investment Group Co., Ltd. He is currently the Deputy Chief Accountant and the Head of Financial Assets Department (Settlement Center) of Sichuan Energy Industry Investment Group Co., Ltd. Teng Weiheng Supervisor, with a master’s degree He has successively served as the manager of the investment department of Anhui Guofu Industry Investment Fund Management Co., Ltd., the head of the institutional business department of Essence Securities Co., Ltd. Yunnan Branch, and the deputy general manager of the capital management center (the management office of directors and supervisors) of Yunnan Provincial Energy Investment Group Co., Ltd. and the deputy general manager of the capital management center of Yunnan Provincial Energy Investment Group Co., Ltd. He is currently the 2021 Annual Report 40 / 292 General Manager of the Capital Management Center of Yunnan Provincial Energy Investment Group Co., Ltd. Ma Zhitao Employee Supervisor, Bachelor of Law, Political Worker. He successively held the posts of Director of the Second Division of the Discipline Inspection and Supervision Department of China Three Gorges Corporation, Secretary of the Committee for Discipline Inspection and Deputy Manager of Three Gorges Tourism Development Co., Ltd., and Secretary of the Committee for Discipline Inspection of Yangtze Ecology and Environment Co., Ltd. He is now secretary of the Company’s Discipline Inspection Commission. Huang Xun Employee Supervisor, Master of Engineering, Senior Political Worker. He successively held the posts of Director of the Employee Management Division of the Human Resources Department of the Company, Director for the Management Office of Retired Employees of the Company, Deputy Director of the Management Office for Retirees (Management Office of Retired Employees) of the Company, and the Deputy Manager, Manager, and Director of Human Resources Department of the Company. He is currently the Deputy Director of the Three Gorges Power Plant. Lu Jinsong Employee Supervisor, Master of Engineering and Senior Engineer. He successively held the posts of Director of Monitoring / Automatic Equipment Management of Production Management Department of Xiangjiaba Power Plant, Deputy Director and Director of Electrical Maintenance Department of Xiangjiaba Power Plant, Assistant Director and concurrently Director of Electrical Maintenance Department of Xiangjiaba Power Plant, Deputy General Manager of Three Gorges Jinsha River Chuanyun Hydropower Development Co., Ltd. He is currently the General Manager of Three Gorges Jinsha River Chuanyun Hydropower Development Co., Ltd. Zhan Pingyuan Chief Financial Officer, Doctor of Management, Senior Accountant and Senior International Financial Controller. He successively held the posts of the Director of the Asset and Finance Department of CWE Investment Corporation, the Director of the Asset and Finance Department, the Chief Accountant and concurrently Director of the Asset and Finance Department, the Chief Accountant and concurrently Chairman of the Labor Union of Three Gorges International Energy Investment Group Co., Ltd., and the Chief Financial Officer and General Counsel of the Company. Currently, he is the Chief Financial Officer of the Company. Xie Jun Deputy General Manager, Master of Management and Senior Engineer. He successively held the posts of Deputy Director, Director of the Electrical Maintenance Department of Three Gorges Power Plant, Deputy Director of the Three Gorges Electrical and Mechanical Installation Project Department of the Electrical and Mechanical Engineering Department of China Three Gorges Corporation, Deputy Director of Three Gorges Power Plant, Preparatory Team Deputy Leader of Yangtze Three Gorges Power Distribution and Sales Co., Ltd., General Manager of Three Gorges Power Co., Ltd. Now he is the Deputy General Manager of the Company. Chen Hui The Deputy General Manager of Three Gorges Power Plant, Master of Engineering, Senior Engineer. He has served as Deputy Director of Production Technology Department of Three Gorges Power Plant; the Head of Production Management Department, Deputy Chief Engineer and Deputy Director of Production Management Department, of Xiluodu Hydropower Plant Preparation Office; Deputy Chief Engineer and Deputy Director of Production Management Department, as well as Chief Engineer and Director of Production Management Department of Xiluodu Hydropower Plant; Deputy Head of Wudongde and Baihetan Power Production Preparation Group; Director of Baihetan Power Plant Preparation Office; Director of Three Gorges Power Plant. He is currently the Deputy General Manager of the Company and concurrently Director of Three Gorges Power Plant. Ran Yichuan The Deputy President and concurrently Chief Engineer, Master of Management, Senior Engineer. He successively held the posts of Deputy Director of the Mechanical and Hydraulic Maintenance Department of Three Gorges Power Plant, Deputy Chief Engineer of Three Gorges Power Plant, Technical Head of Jinsha River Project Preparation Group, Head of Production Management Department of Xiluodu Hydropower Plant Preparation Office, Deputy Director of Xiluodu Mechanical and Electrical Installation Project Department of Mechanical and Electrical Engineering Department of China Three Gorges Corporation; Deputy Director, Director of Xiluodu Hydropower Plant, and Chief Engineer of the Company. He is currently the 2021 Annual Report 41 / 292 Deputy General Manager and Chief Engineer of the Company. Xue Ning Secretary of the Board of Directors, Master of Management, Master of Business Administration, Senior Engineer. He successively held the posts of Director of the Board of Directors' Office, Deputy Director (presiding) and Director of the Andes Project Office of the Company. He is currently the secretary of the Company's board of directors, the president of China Yangtze Power International (Hongkong) Co., Limited., and the director of the Andes Project Office and Foreign Affairs Office. Other information □ Applicable √ Inapplicable 2021 Annual Report 42 / 292 (II) Service status of directors, supervisors, and senior executives currently in office and leaving posts in the reporting period 1. Conditions on service in shareholder unit √ Applicable □ Inapplicable Name of employees Name of the unit of shareholders Position held in the unit of shareholders Starting date of tenure Ending date of tenure Lei Mingshan China Three Gorges Corporation Board Chairman 2018-08 Ma Zhenbo China Three Gorges Corporation General Manager’s Assistant 2020-06 Hu Weiming China Three Gorges Construction Engineering Corporation General Manager 2020-12 Zong Renhuai Sichuan Energy Industry Investment Group Co., Ltd. Deputy General Manager 2019-01 Su Jinsong Yunnan Provincial Energy Investment Group Co., Ltd. Equity Management Center General manager 2021-03 Su Tianpeng Ping An Asset Management Co., Ltd. Senior Managing Director of Direct Investment Business Department 2019-08 Zhao Yan Sunshine Asset Management Co., Ltd. Deputy General Manager 2014-12 Zhao Yan Sunshine Life Insurance Co., Ltd. Director 2015-06 Hong Meng China National Nuclear Corporation Deputy Director of the Finance Department 2021-07 Zeng Yi China Three Gorges Corporation Chief Accountant, 2020-12 Mo Jinhe Guangdong Power Grid Co., Ltd. First-level employee, Deputy General Manager, Chief Accountant 2020-12 Xia Ying China National Petroleum Corporation Full-time Director and Supervisor 2017-03 Sheng Xiang Sichuan Energy Industry Investment Group Co., Ltd. Head of Financial & Assets Department (Settlement Center) 2018-09 Sheng Xiang Sichuan Energy Industry Investment Group Co., Ltd. Deputy Chief Accountant 2020-11 Teng Weiheng Yunnan Provincial Energy Investment Group Co., Ltd. General Manager of Capital Management Center 2022-03 Zhan Pingyuan Three Gorges Finance Co., Ltd. Director 2020-12 Conditions on service in 2021 Annual Report 43 / 292 the unit of shareholders 2. Conditions on service in other units √ Applicable □ Inapplicable Name of employees Name of other units Position held in other units Starting date of tenure Ending date of tenure Zhang Xingliao Three Gorges International Energy Investment Group Co., Ltd. Director 2015-12 2021-04 Zhang Xingliao Minsheng Royal Fund Management Co., Ltd. Director 2017-01 2021-02 Guan Jielin China Three Gorges International Power Operation Co., Ltd. Director 2015-12 2021-09 Guan Jielin Hubei Energy Group Co., Ltd. Director 2020-06 Guan Jielin China National Nuclear Power Co., Ltd. Director 2021-12 Guan Jielin Three Gorges International Energy Investment Group Co., Ltd. (China Three Gorges International Corporation) Director 2021-12 Hu Weiming Hydraulic Machinery Special Committee of China Society for Hydropower Engineering Vice Chairman of the Committee 2009 Hu Weiming Chinese Society for Electrical Engineering Committee Member 2018 Hu Weiming The Ninth Session of the Council of China Society for Hydropower Engineering Councilor 2022 Zong Renhuai Investment Decision Committee of Beijing Huading New Power Private Equity Fund Committee Member 2016-09 Zong Renhuai CABRI Power Battery Co., Ltd. Director 2017-05 Zong Renhuai CABRI Battery Material Co., Ltd. Director 2017-05 Su Jinsong Huaneng Lancang River Hydropower INC. Deputy Chairman 2021-08 Su Jinsong Guodian Jinsha River Xulong Hydropower Development Co., Ltd. Director 2021-03 Su Jinsong Guodian Jinsha River Benzilan Hydropower Development Co., Ltd. Director 2021-03 Su Jinsong Yunnan Coal Industry Group Co., Ltd. Director 2020-02 Yan Hua China State Shipbuilding Corporation Limited Director 2019-11 Yan Hua Ansteel Group Corporation Director 2019-07 Huang Feng Dongfang Electric Co., Ltd. Director 2021-06 Mo Jinhe China South Power Grid Director 2013-08 2021 Annual Report 44 / 292 Finance Co., Ltd. Mo Jinhe Champion Property Insurance Co., Ltd. Director 2013-09 Xia Ying Jinzhou Port Company Limited Supervisor 2017-03 Xia Ying Sichuan Changning Natural Gas Development Co., Ltd. Director 2017-04 Xia Ying PetroChina Hainan Sales Co., Ltd. Supervisor 2017-08 Xia Ying Dalian Petrochina Shipping Co., Ltd. Director 2018-05 Xia Ying China Tendering and Bidding Public Service Platform Co., Ltd. Supervisor 2018-06 Xia Ying PetroChina Karamay Petrochemical Co., Ltd. Director 2022-02 Teng Weiheng Yunnan Provincial Energy Investment Group Co., Ltd. Director 2019-04 Teng Weiheng Yunnan Yunwei Company Limited Director 2019-10 Teng Weiheng Yunnan Green Energy Industry Group Co., Ltd. Legal Representative, Executive Director, and General Manager 2022-01 Zhan Pingyuan Yangtze Andes Holding Co., Limited (platform company and operating company in Peru) Director (Chairman and Chief Executive Officer) 2021-04 2022-04 Zhan Pingyuan SDIC Power Holdings Co., Ltd. Director 2019-09 Zhan Pingyuan CYPC Capital Holding Co., Ltd. Chairman and President 2019-11 Zhan Pingyuan CYPC Investment Management Co., Ltd. Chairman and General Manager 2020-09 Zhan Pingyuan Three Gorges Capital Holdings Co., Ltd. Director 2020-12 Zhan Pingyuan China Yangtze Power International (Hong Kong) Co., Ltd. Director / Chairman of the Board 2021-12 Xie Jun Three Gorges Electric Energy (Hubei) Co., Ltd. Chairman 2015-09 2021-01 Xie Jun Three Gorges Power Co., Ltd. General Manager 2019-12 2021-12 Xie Jun Chongqing Three Gorges Water Conservancy and Electric Power (Group) Co., Ltd. Chairman 2020-07 2022-02 Xie Jun CYPC Xinneng Co., Ltd. General manager 2021-05 2021-12 Xie Jun CYPC Sales Ltd. Executive Director (Legal Representative) 2020-12 Xie Jun CYPC Xinneng Co., Ltd. Executive director 2021-05 Xie Jun Three Gorges Power Co., Ltd. Director / Chairman of the Board 2021-12 Chen Hui China Yangtze Power Director 2021-12 2021 Annual Report 45 / 292 International (Hong Kong) Co., Ltd. Xue Ning CYPC Capital Holding Co., Ltd. Director 2019-11 Xue Ning Yangtze Andes Holding Co., Limited (platform company and operating company in Peru) Director (Chairman and Chief Executive Officer) 2022-04 Xue Ning China Three Gorges International Power Operation Co., Ltd. Director 2021-10 Xue Ning CYPC International Energy Investment (Hainan) Co., Ltd. Chairman 2021-12 Xue Ning China Yangtze Power International (Hong Kong) Co., Ltd. Director and President 2021-12 Conditions on service in other units (III) Compensation of Directors, Supervisors and Senior Management √ Applicable □ Inapplicable Decision-making process of compensation of directors, supervisors and senior management The remuneration for Independent Directors was paid according to the standard determined by the General Meeting of Shareholders. The Employee Representative Supervisor was paid according to the Company's salary system and its incumbency and work performance evaluation in the Company, and other supervisors collected no salary from the Company. The Remuneration and Appraisal Committee of the Board of Directors formulate the remuneration payment standard and payment plan for senior executives, which shall be implemented after being approved by the Board of Directors. Decision basis of the compensation of directors, supervisors and senior management The remuneration for Independent Directors was paid according to the standard determined by the General Meeting of Shareholders. The Employee Representative Supervisor was paid according to the Company's salary system and its incumbency and work performance evaluation in the Company, and other supervisors collected no salary from the Company. The senior executives were paid according to the Measures for the Administration of Remuneration for Top Management Personnel. Compensation Paid to Directors, Supervisors and Senior Managers Ma Zhenbo RMB 1,179,100; Zhang Xingliao RMB 963,100; Guan Jielin RMB 980,200; Zhan Pingyuan RMB 984,700; Xie Jun RMB 912,600; Chen Hui RMB 958,400; Ran Yichuan RMB 942,900; Li Shaoping RMB 937,800; Hu Yang RMB 508,900; Yang Xingbin RMB 697,900; Chen Yanshan RMB 910,600; Zhang Chongjiu RMB 150,000; Lyu Zhenyong RMB 150,000; Zhang Biyi RMB 150,000; Wen Bingyou RMB 150,000; Yan Hua RMB 150,000. Total Compensation Paid to all the Directors, Supervisors and Senior Managers at the End of the reporting period The total remuneration was RMB 10,726,200. 2021 Annual Report 46 / 292 (IV) Change of Director, Supervisor and Senior Management of the Company √ Applicable □ Inapplicable Full name Title Changes Reasons for change Guan Jielin Director Elected Change of term of office Wang Shiping Director Elected Supplement Hu Weiming Director Elected Change of term of office Su Jinsong Director Elected Supplement Su Tianpeng Director Elected Change of term of office Hong Meng Director Elected Change of term of office Huang Delin Independent Director Elected Change of term of office Huang Feng Independent Director Elected Change of term of office Hong Wenhao Director Resigned Resign Li Qinghua Director Resigned Resign He Hongxin Director Resigned Change of term of office Wang Shiping Director Resigned Change of term of office Zhou Chuan'gen Director Resigned Change of term of office Zhao Qiang Director Resigned Change of term of office Zhang Chongjiu Independent Director Resigned Change of term of office Lyu Zhenyong Independent Director Resigned Change of term of office Zeng Yi Chairman of the Board of Supervisors Elected Supplement Ma Zhitao Employee supervisor Elected Change of term of office Huang Xun Employee supervisor Elected Change of term of office Lu Jinsong Employee supervisor Elected Change of term of office Yang Xingshi Chairman of the Board of Supervisors Resigned Resign Hu Yang Employee supervisor Resigned Change of term of office Chen Yanshan Employee supervisor Resigned Change of term of office Yang Xingbin Employee supervisor Resigned Change of term of office Ran Yichuan Deputy General Manager Appointed Supplement Xue Ning Board secretary Appointed Supplement Guan Jielin Deputy General Manager Resigned Resign Li Shaoping Board secretary Resigned Resign 2021 Annual Report 47 / 292 (V) Explanation on the Punishment from the Securities Regulatory Institutions in the Last Three Years □ Applicable √ Inapplicable (VI) Miscellenaous □ Applicable √ Inapplicable V. Board Meetings during the Reporting Period Session number of meeting Holding date Meeting resolution The 21st Meeting of the Fifth Board of Directors February 5, 2021 The followings were reviewed and approved: 1. Proposal on By-election of Company Directors 2. The Proposal on Adjusting the Members of the Strategy and Environment Committee of the Board of Directors of the Company 3. The Proposal on Capital Increase of Three Gorges Base Company 4. Proposal on Amending the Information Disclosure System of the Company 5. Proposal on Amending the Insider Information Registration System of the Company 6. Proposal to Change the Registered Capital of the Company Following Its Listing on the London Stock Exchange and to Amend the Articles of Association 7. 2020 Compliance Management Report of the Company The 22nd Meeting of the Fifth Board of Directors 9 April 2021 Proposal on the Establishment of CYPC Xinneng Co., Ltd. was reviewed and approved The 23rd Meeting of the Fifth Board of Directors 29 April 2021 The followings were reviewed and approved: 1. 2020 Annual Work Report by General Manager of the Company and 2021 Annual Work Plan of the Company 2. 2020 Annual Work Report by Board of Directors of the Company 3. 2020 Annual Final Financial Report of the Company 4. 2020 Annual Profit Distribution Plan of the Company 5. 2020 Annual Report of the Company 6. 2020 Annual Social Responsibility Report of the Company 7. 2020 Annual Internal Control Evaluation and Risk Management Report of the Company 8. Proposal on the Implementation of the Remuneration of the Company's Senior Executives in 2020 9. Proposal on the Company's Project Plan for Fulfilling Social Responsibility in 2021 10. Proposal on Appointment of the Company's 2021 Annual Internal Control Auditors 11. Proposal on the Company’s Daily Related Party Transactions in 2021 12. Proposal on Appointment of the Company's 2021 Annual Financial Report Auditors 13. 2021 Annual Financial Budget Report of the Company 14. Proposal on Carrying Out Short-term Investment with Fixed Income in 2021 15. The Company’s First Quarterly Report in 2021 16. Proposal on Changes of Accounting Policies of the Company 17. Proposal on Signing the Framework Agreement of Financial Services with Three Gorges Finance (Hong Kong) Co., Ltd. 18. Special Report on the Storage and Actual Use of Raised Funds of the Company 19. Proposal on Revision of "Articles of Association" 2021 Annual Report 48 / 292 20. Proposal on By-election of Company Directors 21. Proposal on Convening 2020 Annual General Meeting of Shareholders The 24th Meeting of the Fifth Board of Directors June 8, 2021 The followings were reviewed and approved: 1. Proposal on the Term Agreement and Annual Assessment of the Company's Senior Executives in 2021 2. Proposal on Adjusting the Informatization Organization of the Company 3. Proposal on Granting the Chairperson the Authority to Approving Investment in 2021 The 25th Meeting of the Fifth Board of Directors August 27, 2021 The followings were reviewed and approved: 1. Proposal on the "'14th Five-Year Plan' of the Company" 2. 2021 Semi-annual Report and Summary of the Company The 26th Meeting of the Fifth Board of Directors September 24, 2021 The followings were reviewed and approved: 1. Proposal on Participating in Capital Increase and Share Expansion of Dinghe Property Insurance Co., Ltd. 2. Proposal on Conversion of Shareholder Loans to Capital of Yangtze Andes 3. Proposal on the Independent Establishment of the Audit Department The 27th Meeting of the Fifth Board of Directors 18 October 2021 The Proposal for Appointment of Mr. Ran Yichuan as the Deputy General Manager of the Company was deliberated and approved The 28th Meeting of the Fifth Board of Directors October 29, 2021 The Company’s Third Quarterly Report in 2021 was deliberated and approved The 29th Meeting of the Fifth Board of Directors November 16, 2021 The followings were reviewed and approved: 1. Proposal on Establishing a Joint Venture Company with CTG YEIG to Develop the Renewable Energy Base for Hydro, Wind and Solar Power Integration in the Lower Reaches of Jinsha River 2. Proposal on the Implementation of the Remuneration of the Company's Senior Executives in 2020 The 30th Meeting of the Fifth Board of Directors December 10, 2021 The followings were reviewed and approved: 1. Proposal of the Company on Issuing Shares and Convertible Corporate Bonds (if any), Purchasing Assets by Cash and Raising Subscription Funds as well as on Related Party Transactions and its Sub-proposal 2. Proposal on the Company Meeting the Conditions for Issuing Shares and Convertible Corporate Bonds (if any), Purchasing Assets by Cash and Raising Subscription Funds 3. Proposal of this Offering on Issuing Shares and Convertible Corporate Bonds (if any), Purchasing Assets by Cash and Raising Subscription Funds to Constitute Related Party Transactions 4. Proposal on "the Plan for China Yangtze Power Co., Ltd. on Issuing Shares and Convertible Corporate Bonds, Purchasing Assets by Cash and Raising Subscription Funds as well as on Related Party Transactions" and its Summary 5. Proposal on Signing the "Material Assets Purchase Agreement" with Effective Conditions 6. Proposal of the Company on Issuing Shares and Convertible Corporate Bonds (if any), Purchasing Assets by Cash and Raising Subscription Funds Meet the Requirements of Article 4 of "the Provisions on Regulating Several Issues Concerning Material Asset Reorganizations of Listed Companies" 7. Proposal on Completeness and Compliance of Legal Procedures for the Company of Issuing Shares and Convertible Corporate Bonds (if any), Purchasing Assets by Cash and Raising Subscription Funds, 2021 Annual Report 49 / 292 and Validity of Submitted Legal Documents 8. Proposal of this Offering on Issuing Shares and Convertible Corporate Bonds (if any), Purchasing Assets by Cash and Raising Subscription Funds Meet Article 11 of "the Administrative Measures for the Material Asset Reorganizations of Listed Companies" 9. Proposal of this Offering on Issuing Shares and Convertible Corporate Bonds (if any), Purchasing Assets by Cash and Raising Subscription Funds Meet Article 43 of "the Administrative Measures for the Material Asset Reorganizations of Listed Companies" 10. Proposal of this Offering on Issuing Shares and Convertible Corporate Bonds (if any), Purchasing Assets by Cash and Raising Subscription Funds Does not Constitute a Reorganization and Listing under Article 13 of "the Administrative Measures for the Material Asset Reorganizations of Listed Companies" 11. Proposal on Requesting the General Meeting of Shareholders to Authorize the Board of Directors and its Authorized Persons to Be Solely Responsible for Matters Related to the Issuance of Shares and Convertible Corporate Bonds (if any), Purchasement of Assets by Cash and Raise of Subscription Funds 12. Proposal on Failure of the Company's Stock Price Fluctuation to Meet the Relevant Standards of Article 5 of "the Notice of China Securities Regulatory Commission on Regulating the Information Disclosure of Listed Companies and the Acts of All the Related Parties" 13. Proposal on Not Convening the General Meeting of Shareholders to Consider Matters Related to this Transaction The 31st Meeting of the Fifth Board of Directors December 28, 2021 The followings were reviewed and approved: 1. Proposal on Establishing the Taihe Pumped Storage Power Station Project Joint Venture in Fuling District, Chongqing 2. Proposal on Establishing the Authorization Management System of the Board of Directors of the Company 3. Proposal on Amending the Internal Control Management System of the Company 4. Proposal on Developing the Company's Implementation Plan for Implementing the Authorities of the Board of Directors 5. Proposal on Improving the Tenure System and Contractual Management of Senior Managers of the Company VI. About Directors’ Performance of Duties (I) About Directors’ Attendance at the Board Meeting and General Meeting of Shareholders Name of Directo r Independ ent Director or not Attendance at the Board Meetings Attendanc e at Sharehold ers’ Meeting Time(s) of Suppose d Attenda nce at the Board of Director s Times of attenda nce in person Time(s) of Attendance via Telecommunic ation Time(s) of Entruste d Attenda nce Time( s) of Absen ce Failed to attend in person for two success ive times? Time(s) of Attendanc e at Sharehold ers’ Meeting Lei No 11 9 8 2 0 No 0 2021 Annual Report 50 / 292 Mingsh an Ma Zhenbo No 11 11 8 0 0 No 1 Zhang Xinglia o No 11 10 8 1 0 No 1 He Hongxi n No 11 8 8 3 0 No 0 Wang Shiping No 8 6 6 2 0 No 0 Zong Renhua i No 11 9 8 2 0 No 0 Su Jinsong No 8 8 6 0 0 No 0 Zhou Chuan' gen No 11 11 8 0 0 No 0 Zhao Yan No 11 10 8 1 0 No 0 Zhao Qiang No 11 9 8 2 0 No 0 Zhang Chongji u Yes 11 11 8 0 0 No 0 Lyu Zhenyo ng Yes 11 11 8 0 0 No 0 Zhang Biyi Yes 11 11 8 0 0 No 0 Wen Bingyo u Yes 11 11 8 0 0 No 0 Yan Hua Yes 11 11 8 0 0 No 0 Explanation on Failure to Attend in Person at the Board Meeting for Two Successive Times □ Applicable √ Inapplicable Times of Board Meeting(s) Convened Within the Year 11 Wherein: Time(s) of On-Site Meeting(s) 3 Time(s) of Meeting(s) Convened via Telecommunication 8 Time(s) of Meeting(s) Convened in Combination in On-Site and Telecommunication Mode 3 (II) Objection to the Company’s related issues raised by directors □ Applicable √ Inapplicable (III) Miscellenaous □ Applicable √ Inapplicable 2021 Annual Report 51 / 292 VII. Special Committees under the Board √ Applicable □ Inapplicable (1). Membership of special committees under the Board Name of special committee Member name Auditing Committee Zhang Biyi, Wen Bingyou, Yan Hua, Huang Delin, Huang Feng Remuneration and Appraisal Committee Wen Bingyou, Zhang Biyi, Yan Hua, Huang Delin, Huang Feng Strategy and Environment Committee Lei Mingshan, Ma Zhenbo, Zhang Xingliao, Guan Jielin, Zhang Biyi, Wen Bingyou, Yan Hua (2) The Audit Committee held 5 meetings during the reporting period Holding date Meeting contents Important comments and suggestions Other performance of duties February 4, 2021 The Proposal on Capital Increase of Three Gorges Base Company was deliberated and passed at the Sixth Meeting of the Audit Committee of the Fifth Board of Directors It is agreed to submit the proposal of this Meeting to the Board of Directors for deliberation. 23 April 2021 The Seventh Meeting of the Audit Committee of the Fifth Board of Directors deliberated and passed: 1. 2020 Annual Final Financial Report of the Company 2. 2020 Annual Report of the Company 3. 2020 Annual Internal Control Evaluation and Risk Management Report of the Company 4. 2021 Annual Financial Budget Report of the Company 5. Proposal on Appointment of the Company's 2021 Annual Financial Report Auditors 6. Proposal on Appointment of the Company's 2021 Annual Internal Control Auditors 7. The Proposal on the Company’s Daily Related Party Transactions in 2021 8. Proposal on Signing the Framework Agreement of Financial Services with Three Gorges Finance (Hong Kong) Co., Ltd. 9. Special Report on the Storage and Actual Use of Raised Funds of the Company 10. 2020 Annual Work Report by the Audit Committee of the Board of Directors of the Company It is agreed to submit the proposal of this Meeting to the Board of Directors for deliberation. September 23, 2021 The Eighth Meeting of the Audit Committee of the Fifth Board of Directors The followings were reviewed and approved: 1. Proposal on Participating in Capital Increase and Share Expansion of Dinghe Property Insurance Co., Ltd. 2. Proposal on Conversion of Shareholder Loans to Capital of Yangtze Andes It is agreed to submit the proposal of this Meeting to the Board of Directors for deliberation. November 15, 2021 The Ninth Eighth Meeting of the Audit Committee of the Fifth Board of Directors The Proposal on Establishing a Joint Venture Company with CTG YEIG to Develop the Renewable Energy Base for Hydro, Wind and It is agreed to submit the proposal of this Meeting to the Board of Directors for deliberation. 2021 Annual Report 52 / 292 Solar Power Integration in the Lower Reaches of Jinsha River was reviewed and approved. December 9, 2021 The Tenth Meeting of the Audit Committee of the Fifth Board of Directors The followings were reviewed and approved: 1. Proposal of this Offering on Issuing Shares and Convertible Corporate Bonds (if any), Purchasing Assets by Cash and Raising Subscription Funds to Constitute Related Party Transactions 2. Proposal of the Company on Issuing Shares and Convertible Corporate Bonds (if any), Purchasing Assets by Cash and Raising Subscription Funds as well as on Related Party Transactions 3. Proposal on "the Plan for China Yangtze Power Co., Ltd. on Issuing Shares and Convertible Corporate Bonds, Purchasing Assets by Cash and Raising Subscription Funds as well as on Related Party Transactions" and its Summary It is agreed to submit the proposal of this Meeting to the Board of Directors for deliberation. (3) The Remuneration and Appraisal Committee held three meetings during the reporting period Holding date Meeting contents Important comments and suggestions Other performance of duties 23 April 2021 The Fourth Meeting of the Remuneration and Appraisal Committee of the Fifth Board of Directors deliberated and approved the Proposal on the Implementation of the Remuneration of the Company's Senior Executives in 2020 It is agreed to submit the proposal of this Meeting to the Board of Directors for deliberation. June 7, 2021 The Fifth Meeting of the Remuneration and Appraisal Committee of the Fifth Board of Directors deliberated and approved the Proposal on the Term Agreement and Annual Assessment of the Company's Senior Executives in 2021 It is agreed to submit the proposal of this Meeting to the Board of Directors for deliberation. November 15, 2021 The Sixth Meeting of the Remuneration and Appraisal Committee of the Fifth Board of Directors deliberated and approved the Proposal on the Implementation of the Remuneration of the Company's Senior Executives in 2020 It is agreed to submit the proposal of this Meeting to the Board of Directors for deliberation. (4). The Strategy and Environment Committee held 3 meetings during the reporting period Holding date Meeting contents Important comments and suggestions Other performance of duties March 25, 2021 The Eighth Meeting of the Strategy and Environment Committee of the Fifth Board of Directors deliberated and approved: 1. Proposal on the Implementation of the '13th Five-Year Plan' of the Company 2. Report on Completion of the Company's Environmental Protection Work in 2020 and Work Plan for 2021 It is agreed to submit the proposal of this Meeting to the Board of Directors for deliberation. 26 August 2021 The Ninth Meeting of the Strategy and Environment Committee of the Fifth Board of It is agreed to submit the proposal of this 2021 Annual Report 53 / 292 Directors deliberated and approved the Proposal on the "'14th Five-Year Plan' of the Company" Meeting to the Board of Directors for deliberation. December 9, 2021 The Tenth Meeting of the Strategy and Environment Committee of the Fifth Board of Directors deliberated and approved: 1. Proposal of the Company on Issuing Shares and Convertible Corporate Bonds (if any), Purchasing Assets by Cash and Raising Subscription Funds as well as on Related Party Transactions 2. Proposal on "the Plan for China Yangtze Power Co., Ltd. on Issuing Shares and Convertible Corporate Bonds, Purchasing Assets by Cash and Raising Subscription Funds as well as on Related Party Transactions" and its Summary It is agreed to submit the proposal of this Meeting to the Board of Directors for deliberation. (5) Details of matters in question □ Applicable √ Inapplicable VIII. Description of the Company’s Risks Found by the Board of Supervisors □ Applicable √ Inapplicable The Board of Supervisors has not raised any objection to the supervision issues during the reporting period. IX. Employees of the Parent Company and Main Subsidiaries at the End of the Reporting Period (I) Employee status Number of employees on active duty in the parent company 3,955 Number of employees on active duty in the main subsidiary companies 3,752 Number of employees on duty in total  7,707 Professional composition Type of professions Number of professional persons Production personnel 5,553 Sales personnel 279 Technical personnel 836 Financial personnel 211 Administrative personnel 828 TOTAL 7,707 Education background Category of educational background Quantity (headcount) PhD 21 Master 1,183 Bachelor 3,023 Junior college 3,116 Technical secondary school diploma and below 364 TOTAL 7,707 (II) Remuneration Compensation policy √ Applicable □ Inapplicable  The "total number of employees" includes employees in China and overseas. 2021 Annual Report 54 / 292 The Company carried out the income distribution system based on post value and oriented by performance and market, established the remuneration incentive and constraint system of a multidimensional set of incentives co-exiting. The post salary standard was verified by job requirements and scope of work responsibility. The performance wage income and other bonus income were honored in line with the unit and employee performance assessment. The company strengthened incentives for market-oriented business units, technical innovation, special contributions, and important work, and further improved the differentiated salary allocation strategy. The company carried out total wage budget management in affiliated units, and established a linkage system of wage and benefit which is oriented by production & management performance and value creation. The Company handled all sorts of social insurance for employees according to law and implemented various systems of housing fund, enterprise annuity, supplementary medical insurance, paid leave, health sanatorium care and periodic physical examination. Driven by establishing a sound market mechanism and guiding value creation, the Company made overall control of the staff size and total wage bill for all subsidiaries according to the annual economic benefit, completion state of production and management target and human resource management requirement. And all subsidiaries worked up the relevant pay policy on the basis of their own production and operational characteristics. (III) Training plan √ Applicable □ Inapplicable In 2021, the Company thoroughly implemented the new development concept, closely followed the national energy development strategy, scientifically carried out talent training, and comprehensively built a systematic talent training system led by the Company's development strategy, guided by talent value matching, standardized by talent competence model, with the improvement of performance competence as the core and supported by key talent projects. The Company's talent training was closely focused on the Company's development strategy and annual important work. To cope with the impact of the normalization of epidemic prevention and control on the training, the Company continuously strengthened the online education platform and actively carried out the online training to promote the online and offline integration of employee education and training. The Company took the opportunity of successfully obtaining the qualification of National Vocational Skill Level Certification as an opportunity to pilot the Vocational Skill Level Certification and smoothed such channels for employees. The Company vigorously cultivated and inherited the craftsmanship spirit and culture, deeply carried out the post skills training and corresponding qualification assessment, selected the winners of the skills competition for further study at the national skills training base, and continuously consolidated the talent foundation of power production. The Company organized the key talent training programs such as "Pilot Program - Cadre Training", "Cruise Program - Mini MBA Training", "Sailing Program - Young Talent Training Program" to improve the market awareness, risk management and control ability, operating cost control ability and reform ability of employees. The Company established a systematic management theoretical knowledge system for outstanding young employees, increased the training and reserve of market-oriented reserve talents, and focused on gathering excellent talents matching the development of the CYPC electric power industry. (IV) Labor outsourcing □ Applicable √ Inapplicable X. Profit Distribution or Capital Reserve Capitalizing Plan (I) Development, Implementation or Adjustment of Cash Dividends Policy √ Applicable □ Inapplicable The profit distribution of the Company complies with the provisions of the Articles of Association and requirements of the resolutions of the general meeting. The dividend standards and proportions are clear and definite. The relevant decision-making procedures and mechanisms are complete. Independent directors expressed clear opinions, the opinions and demands of small and medium shareholders were fully expressed, and their legitimate rights and interests were protected. To further standardize the Company’s cash dividends, increase the transparency of cash dividends, and earnestly safeguard the legal rights and interests of investors, the Company issued the Announcement 2021 Annual Report 55 / 292 on Soliciting Opinions of Investors on the Matters Relevant to the 2021 Profit Distribution Plan on February 26, 2022 in accordance with the requirements of the Guide for Supervision of Listed Companies No. 3—Cash Dividend Distribution of Listed Companies (Rev. 2022) issued by CSRC, collected opinions and suggestions from investors on the Company’s 2021 profit distribution plan, and reported to the audit committee of the board of directors. The Company formulated and implemented the 2021 Annual Profit Distribution Plan in strict accordance with the Articles of Association, which stipulates that "the cash dividend for the annual profit distribution from 2021 to 2025 shall not be lower than 70% of the net profit". (II) Special Description of Cash Dividend Policy √ Applicable □ Inapplicable Whether it complies with the provisions of the Articles of Association or the requirements of resolutions of the general meeting of shareholders √Yes □No Whether the dividend standards and proportions are definite and clear √Yes □No Whether the relevant decision-making processes and mechanisms are complete √Yes □No Whether the independent directors perform their duties and play their due role √Yes □No Whether the minority shareholders have the opportunity to fully express their opinions and demands and whether their legitimate rights and interests are adequately protected √Yes □No (III) The payoff in the reporting period and profit of the parent company available for distribution to the shareholders was positive, but in case of no Stock Cash Dividend Distribution Plan presented, the Company should, in detail, disclose the cause, as well as the purpose and use plan of the undistributed profit. □ Applicable √ Inapplicable XI. The Company’s Equity Incentive Plan, Employee Shareholding Plan or other Employee Incentives and Influence (I) Relevant incentive matters already disclosed in the temporary bulletin and without progress or changes of subsequent execution □ Applicable √ Inapplicable (II) Information on incentives not disclosed in the temporary bulletin or with subsequent Progress Equity incentive □ Applicable √ Inapplicable Other descriptions □ Applicable √ Inapplicable Employee shareholding plan □ Applicable √ Inapplicable Other incentive measures □ Applicable √ Inapplicable (III) Equity incentives granted to the directors and senior management during the reporting period □ Applicable √ Inapplicable (IV) About the establishment and implementation of the evaluation system and incentive mechanism for senior management in the reporting period □ Applicable √ Inapplicable 2021 Annual Report 56 / 292 XII. Establishment and Implementation of Internal Control System during the Reporting period √ Applicable □ Inapplicable During the reporting period, the Company continued to conduct the standardized operation and further improved its internal control system. The Company updated relevant systems promptly around business development, revised 59 systems throughout the year, and optimized business processes simultaneously, so as to effectively enhance the effectiveness of internal control. Description of material.t defects in internal control in the reporting period □ Applicable √ Inapplicable XIII. Management Control over the Subsidiaries During the Reporting Period □ Applicable √ Inapplicable XIV. About the Internal Control Audit Report √ Applicable □ Inapplicable Pan-China Certified Public Accountants LLP has audited the effectiveness of internal control over the Company's 2021 Annual Financial Report and issued the 2021 Internal Control Auditor's Report of the Company. The full text was disclosed on the website of the Shanghai Stock Exchange at http://www.sse.com.cn. Internal control auditor’s report disclosed or not: Yes Type of opinion on the auditor’s report on internal control: Standard unqualified opinion XV. Rectification of Problems Identified in the Self-inspection over the Company's Special Governance Measures N/A. XVI. Miscellenaous □ Applicable √ Inapplicable Section V Environmental and Social Responsibility I. Environmental Information (I) Explanations on the environment protection of the Company belonging to the heavy pollution units as prescribed by the environment protection department and its major subsidiaries □ Applicable √ Inapplicable (II) Explanations on the environmental protection of companies other than the heavy pollution units √ Applicable □ Inapplicable 1. Administrative penalties imposed on environmental problems □ Applicable √ Inapplicable 2. Disclosure of other environmental information with reference to heavy pollution units √ Applicable □ Inapplicable The main business of the Company was hydropower, which effectively replaced fossil fuel consumption, significantly reduced the emission of air pollutants and greenhouse gases, and created favorable ecological environmental benefits. In 2021, the Company had no environmental emergencies and penalties for environmental violations. The Company strictly abided by the laws and regulations on environmental protection, fully performed the main responsibilities of the Company, and completed all environmental protection work with high quality. 2021 Annual Report 57 / 292 3. Reasons for not disclosing other environmental information □ Applicable √ Inapplicable (III) Relevant information that is conducive to ecological protection, pollution prevention, and environmental responsibility fulfillment √ Applicable □ Inapplicable As the world's largest hydropower listed company, the installed capacity of the Company accounts for about 11.64% of the total installed capacity of China's hydropower. Hydropower is renewable clean energy. Every hydropower is a contribution to the environment. In 2021, the cascade hydropower stations of the Company produced about 208,322 GWh of clean electric energy. Compared with coal-fired power generation, it is equivalent to a replacement of about 63,517,400 tons of standard coal combustion, about 173,323,900 tons of carbon dioxide emissions, about 33,300 tons of sulfur dioxide emissions, and about 37,300 tons of nitrogen oxide emissions, making significant contributions to ecological protection, pollution prevention, smog prevention and global warming. As an environment-friendly enterprise, the Company attached great importance to the construction of ecological civilization, fully implemented the new development concept, established an Environmental Protection Leading Group headed by the main responsible person, set up the Environmental Protection Department equipped with full-time management personnel, improved the environmental protection management network covering the whole Company, and made every effort to conduct effective work in environmental risk management and control and hidden danger investigation and management. The Company adhered to taking the environmental management system as a platform to comprehensively identify environmental factors such as wastewater, solid waste, and noise in the jurisdiction, formulated control measures respectively, and continuously carried out environmental protection inspection and supervision. In 2021, the Company had no environmental emergencies and penalties for environmental violations. The Company was committed to green and sustainable development, paid attention to the comprehensive benefits of ecological and environmental protection of hydropower stations, and made positive contributions to protecting biodiversity, improving water ecological environment through "ecological scheduling" and providing ecological water supplements for lower reaches through "water supplement scheduling". Related information was as follows: 1. Ecological protection and diversity maintenance The Company contributes to the proliferation and release activities of rare fish in the Yangtze River such as Chinese sturgeon, Chinese high-fin banded shark, and promotes the protection of aquatic biodiversity in the Yangtze River The Company supported the protection of rare plants and ensured that rare plants are properly protected after reservoir impoundment through relocation or in-situ protection, technological innovation, and other measures The "ecological scheduling" test was carried out in the Three Gorges Reservoir for 11 consecutive years to promote the natural reproduction of the Four Major Culture Fishes and a continuous rising water process suitable for spawning and reproduction of the Four Major Culture Fishes was artificially created. In late April, the Three Gorges Reservoir optimized the water level control to slow down the rate of drawdown, so as to improve the survival rate of carp, crucian carp, and other kinds of fish in the reservoir area. The stratified water intake scheduling test was carried out at the Xiluodu Hydropower Station and the Wudongde Hydropower Station respectively. The "ecological scheduling" was carried out eight times and created a better comprehensive benefit for maintaining the ecological function of the Yangtze River. The Company's cascade stations provided replenishment for the lower reaches, with a total water supply of 31.307 billion cubic meters throughout the year, of which the cumulative replenishment of the Three Gorges Hydropower Station reached 22.082 billion cubic meters 2. Pollution prevention and green development The Company adheres to the certification of environmental management system to ensure the implementation of various environmental factor control measures and management schemes The rate of compliance for the hydropower stations in the basin was 100%, the disposal compliance rate of general solid waste and hazardous waste was 100%, and the coverage rate of waste classification management was 100%. 2021 Annual Report 58 / 292 The Company organized 9 special inspections throughout the year, cooperated with the competent department for 12 inspections, and made rapid rectification of individual problems or hidden dangers The Company implemented the environmental remediation in the dam area and completed the renovation of the sewage treatment facilities in the dam area of the four cascade stations, including the Three Gorges, Gezhouba, Xiluodu, and Xiangjiaba stations to achieve "zero discharge and direct discharge" of sewage. The cleaning robot of the Gezhouba Hydropower Station was put into operation to realize the automatic operation of salvaging, weighing, and loading the floating materials in front of the dam, which opens up a new path to solving the problem of fully automatic cleaning in low head runoff hydropower stations (IV) Measures and effects to reduce carbon emissions during the reporting period √ Applicable □ Inapplicable The main business of the Company was hydropower, which effectively replaced fossil fuel consumption. Each degree of hydropower contributed to the emission reduction. In 2021, the Company produced about 208,322 GWh of clean electricity. Compared with coal-fired power generation, the Company reduced about 173,323,900 tons of carbon dioxide emissions, providing a cleaner and sustainable energy guarantee for social development. The Company, when operating 6 giant cascade hydropower stations on the mainstream of the Yangtze River, took green and low-carbon development as a long-term strategy, relied on large hydropower bases and power transmission channels, actively promoted the scale development of water, wind and light integration in the lower reaches of Jinsha River, actively arranged pumped storage and smart energy business, and served clean energy production, storage, energy conservation, emission reduction, and other industrial chain links. The Company advocated a low-carbon lifestyle, carried out such special publicity activities as "Energy Conservation Publicity Week" and "National Low-carbon Days", cultivated low-carbon life awareness among employees and related parties, and guided them to practice a green lifestyle with low energy, low consumption, and low expenditure. The Company was committed to the development concept of "innovation, coordination, greening, openness, and sharing," gave full play to the low-carbon and renewable characteristics of hydropower, contributed a large amount of clean energy to the society, actively implemented carbon reduction actions, fully fulfilled the social responsibilities, and led the development of the world's hydropower industry. II. Social Responsibility √ Applicable □ Inapplicable See the Company’s Report of Social Responsibilities for details. III. Specific Conditions of Consolidation and Expansion of Poverty Alleviation and Rural Revitalization √ Applicable □ Inapplicable 2021 was the first year when China embarked on a new journey to build a modern socialist country in an all-around way, and it was also the starting year to consolidate and expand the poverty alleviation and effectively connect with the rural revitalization strategy. Combined with the characteristics of the large hydropower industry involving many immigrants, many remote and poor areas, and a close relationship with the production order of the hydropower station, the Company continued to strengthen the support and assistance to the paired assistance counties and the reservoir dam area of the hydropower station according to the relevant national requirements and deployment, implemented 60 fulfillment projects throughout the year, invested more than RMB 237 million, promoting the comprehensive revitalization of industry, education, medical treatment and ecology in the assistance counties. First, the Company continued to make precise efforts to promote rural revitalization. The Company continued to promote rural revitalization in Wushan and Fengjie counties of Chongqing in the Three Gorges Reservoir Area, dispatched four cadres to work at the grass-roots level to actively help the local community to introduce assistance funds and solve practical problems of the people in difficulty; The 2021 Annual Report 59 / 292 company has successfully implemented 29 projects of targeted assistance, covering medical care, tourism, education, industrial development, infrastructure construction and other livelihood areas. Among them, Wushan and Fengjie counties' health assistance fund and medical supplement insurance projects benefited 130,000 people in need in the two counties; helped the two counties introduce RMB 7.63 million of assistance funds; purchased RMB 9.2 million of agricultural and sideline products in the assistance areas; trained cadres and skilled personnel at the attendance of 11,540 at the grass-roots level in the two counties; built 4 industrial assistance production workshops, created 5 rural revitalization demonstration sites, and two poverty alleviation villages have been built by grass-roots branches in pairs. All the annual task indicators for the targeted assistance of the enterprise have been completed. The second one was to fully implement the assistance responsibility and increase the efforts in assistance. The Company promoted the overall progress of the target assistance work in the reservoir area of four hydropower stations, namely Three Gorges, Gezhouba, Xiluodu, and Xiangjiaba, and implemented 22 assistance projects, covering infrastructure, education, health, industry, and other aspects, which has promoted the economic and livelihood development of the reservoir area and created a good production and operation environment for power production. At the same time, the Company focused on education assistance in the Jinsha River area and rural revitalization construction in the Yichang area by carrying out assistance projects such as the construction of Leibo Three Gorges Middle School, Mabian Junior Middle School, talent backbone project in Yibin City, "Charity Sunshine Class" of Yichang No. 1 Middle School and Yichang Xiba Fire Station, donating retired turbine runners and blades for hydropower cultural tourism displays to continuously strengthen the assistance efforts in education and rural revitalization infrastructure. The third one was to innovate the work initiatives and enrich the form of activities. The Company continued to innovate and enrich the form of public charity practice. By the way of "study activities coming in, enterprise propaganda going out", the company invited nearly 1,000 students from the Three Gorges and Jinsha River Reservoir areas to the Three Gorges Dam area and Xiluodu Hydropower Plant to carry out study activities; went to Yichang No. 1 Middle School, Yiling Middle School, and other schools to propagate the Three Gorges spirit and CYPC culture and organized the children from the reservoir area to hold the theme activity of "Light up micro-wishes and go forward with dreams" to make the teenagers immerse themselves in the achievements of the motherland and the splendor of the pillars of great power. The Company contributed to the theme activity of "Winter Olympics into the Three Gorges" and practiced the concept of "Clean Energy, Empowering Winter Olympics". The Company organized some employees to Wushan, Fengjie and other counties to carry out branch joint construction and charity donation activities, visit the people in need, and purchase local agricultural and sideline products to effectively play the leading role in the organization building to assist in targeted assistance. The Company has implemented "Happy Smile" and other public charity projects in Wuhan Stomatological Hospital. The Company has sponsored more than 30 children from poverty-stricken families who suffer from cleft palates to have repair surgeries and helped these special children change their fate to face their life with a "smile". 2021 Annual Report 60 / 292 Section VI Important Matters I. Performance of Commitment Matters (I) Commitment Matters of the Company’s Actual Controllers, Shareholders, Related Parties, Purchasers, the Company and Other Related Parties in the Reporting Period or Lasting to the Reporting Period √ Applicable □ Inapplicable Background Commitment type Committed party Commitment content Time and deadline Whether deadline for performance is provided Whether the commitment is performed timely and strictly Commitment related to material asset reorganization Asset injection CTG In the Report on the Material Assets Purchase and Related Transaction of China Yangtze Power Co., Ltd., the China Three Gorges Corporation and the Company made relevant appointment and promise: 1. Considering the related disposal formalities for parts of land of Three Gorges Development Company were not yet handled, China Three Gorges Corporation and the Company agreed that when related transaction conditions were OK, China Three Gorges Corporation would sell 100% of the Three Gorges Development equity it held to the Company, and the Company promised to purchase the preceding equity; 2. In accordance with the related appointment in the Agreement on Material Asset Reorganization Transaction and the Three Gorges Debt Take-on Agreement signed by the Company with China Three Gorges Corporation, the Company consented to inherit the issuer’s rights and obligations as stated in each bond issuance document of China Three Gorges Corporation No.99, No.01, No.02 and No.03 issues of Three Gorges debts from zero hour on the exercise date and take on the outstanding principal of each bond of target Three Gorges debts up to zero hour on the exercise date and the accrual interest payable of each bond from the latest interest payment date to zero hour on the exercise date, and promised August 9, 2009, long-term effective No Yes 2021 Annual Report 61 / 292 to perform the honoring obligation according to ensurethe terms and conditions as originally stated in each bond issuance document of target Three Gorges debts starting from the exercise date. China Three Gorges Corporation undertook that if the investors asked China Three Gorges Corporation to continue performing the honoring obligation, China Three Gorges Corporation would carry out the relevant honoring obligation to this part of investors; 3. China Three Gorges Corporation promised that as for the plant & buildings without obtaining the ownership certificate in the target assets transferred to the Company in material asset reorganization, in the circumstances of meeting the State policies, legislation, and requirements and having conditions of registration, China Three Gorges Corporation would, in time, help CYPC and related company carry out the procedures of title registration with CYPC and related company as the obligee for the above-mentioned plant & buildings. If China Yangtze Power and related companies suffered from any loss because the above-mentioned plant & building failed to go through the formalities of title registration, China Three Gorges Corporation would make compensations therefore; 4. China Three Gorges Corporation promised that as for the deposits China Yangtze Power and its subordinated subsidiaries left with Three Gorges Finance Co., Ltd. after China Yangtze Power conducted the material asset reorganization, if the insolvency of Three Gorges Finance Co., Ltd. resulted in the loss of China Yangtze Power and its subordinated subsidiaries, China Three Gorges Corporation would make equal amount compensation for the loss in cash according to the audit results within 30 days from receiving the notice. Dividend CYPC After successful execution of the current material asset reorganization, the Company proposed to amend the Articles of Association. The Company would conduct cash dividend for the annual profit distribution in 2016-2020 as per not lower than RMB 0.65 per share. For the annual profit 2017-2026 Yes Yes 2021 Annual Report 62 / 292 distribution in 2021-2025, the cash dividend would not be offered as per not lower than 70% of the net profits realized in those years. Solution of related party transaction CTG 1. After this transaction was over, the related party transaction between this Company and other enterprises controlled by this Company and the listed company would be reduced and avoided as much as possible. When the related party transaction was really needed but unable to be evaded, it ensured to conduct fair operation according to the marketization principle and fair price, and perform the procedure of related party transaction and obligation of information disclosure according to the provisions of such normative documents as the related laws, regulations and rules and CYPC Articles of Association. The Company guaranteed it would not damage the legal rights and interests of the listed company and other shareholders through the related party transaction. 2. The Company was committed not to use the controlling shareholder’s position of the listed company to damage the legal rights and interests of the listed company and other shareholders. 3. The Company would put a complete end to the behavior of non-operational occupation of the funds and assets of the listed company, and not ask the listed company to provide any form of guarantee for the Company and other enterprises controlled by the Company without the approval of the General Meeting. 4. The Company guaranteed to compensate the listed company and its subordinated companies for the loss or expense suffered or generated because this Company violated this commitment. November 2015, long-term effective No Yes Solution of horizontal competition CTG 1. Now, the Company and other enterprises directly or indirectly controlled by the Company had been neither engaged in any business of forming the substantial competition with the CYPC principal activities nor operated or operated for others any business of forming the substantial competition with the CYPC principal activities directly or in a form of investment in shareholding, participation, joint November 2015, long-term effective No Yes 2021 Annual Report 63 / 292 venture, joint operation or any other forms. 2. To avoid the substantial horizontal competition between the Company and other enterprises controlled by the Company and the listed company and its subordinated companies, the Company was committed not to work on, participate in or assist others to take up any business of the substantial competition with the operations engaged in by the listed company and its subordinated companies or other operating activities directly or indirectly in any forms (including, but not limited to those manners of joint venture, cooperation, joint operation, investment, mergers and entrusted management by itself or with others), and would try its best to urge other enterprises controlled by the Company to abide by the same obligations as the commitment issues of the Company. 3. The Company guaranteed to compensate the listed company and its subordinated companies for the loss or expense suffered or generated because the Company violated this commitment. Miscellenaous CTG I. It guaranteed the independence of the listed company personnel 1. Ensuring that senior executives, such as General Manager, Deputy General Manager, Chief Financial Officer (CFO), Secretary to the Board of Directors of the listed company would take office with the listed company in full time and collect compensations without exception, and take no other position than a director or supervisor in the Company and its related natural person, affiliated enterprises, associated legal persons (hereinafter collectively referred to as the “the Company and its related party”. See the currently effective Listing Rules to determine the specific scope). 2. Ensuring the complete independence among the labor, personnel and wage management of the listed company and the Company and its related party. 3. The Company would recommend a director, supervisor and other senior executives to the listed company through legal procedures without exception, and not interfere with the listed company Board of Directors and General Meetings in exercising official powers and making decision November 2015, long-term effective No Yes 2021 Annual Report 64 / 292 of personnel appointment or removal. II. It guaranteed the independence and integrity of the listed company assets. 1. Ensuring the listed company would possess the operation-related business system and independent and complete assets. 2. Ensuring there would not exist in the listed company the fund and assets were occupied non-operationally by the Company and its related party. III. It guaranteed the financial autonomy of the listed company. 1. Ensuring the listed company would establish the independent finance department and independent financial calculating system with standard and independent financial accounting system. 2. Ensuring the listed company would open an independent account with the bank and not share the bank account with the Company and its related party. 3. Ensuring the listed company financial staff would not hold concurrent job in the Company and its related party. 4. Ensuring the listed company would pay tax independently according to law. 5. Ensuring the listed company would be able to make independent financial decision, and the Company and its related party would not interfere in the fund utilization of the listed company. IV. It guaranteed the independence of the listed company institutions 1. Ensuring the listed company would establish and perfect the corporate governance structure and possess the independent and complete institutional framework. 2. Ensuring General Meeting, Board of Directors, independent directors, Board of Supervisors and senior executives would exercise official powers according to laws and regulations and CYPC Articles of Association. V. It guaranteed the service independence of the listed company. 1. Ensuring the listed company would possess the assets, personnel, aptitude and capabilities to carry independently out operating activities with the ability to conduct the market-oriented, independent and persistent operation. 2. Ensuring no unfair interference would be made in operational activities of the listed company. 3. Ensuring the Company 2021 Annual Report 65 / 292 would avoid any business of substantial competition with the listed company. 4. Ensuring to reduce and avoid any related transaction between the Company and other enterprises controlled by the Company and the listed company as much as possible. It ensured that when the related transaction was really needed but unable to be avoided, it would conduct the fair operation according to the market-based principle and fair price and perform the trading procedure and obligation of information disclosure according to the provisions of the related laws and regulations, normative documents and CYPC Articles of Association. Other commitments Solution of horizontal competition CTG To avoid the problem of possible horizontal competition, before the Company went public, the controlling shareholder-- China Three Gorges Corporation provided the Letter of Commitment to Avoiding Horizontal Competition, promising that China Three Gorges Corporation would not be engaged, directly or indirectly, in any business that constituted competitions or might possibly constitute competitions with the Company’s principal activities as specified in the Company’s Business License within or without the Chinese boundaries in the period of acting as the Company’s controlling shareholder, and urging its affiliated enterprises not to work on any business that resulted in or might possibly result in direct or indirect competitions with the Company’s principal activities inside or outside the Chinese boundaries. August 2001, long-term effective No Yes 2021 Annual Report 66 / 292 (II) If a profit forecast can be carried out for the Company’s assets or its projects, and the reporting period is still in the period of profit forecast, the Company shall explain whether the assets and projects can realize the original profit forecast and the reasons □Has realized □ Not realized √ Inapplicable (III) Completion of performance commitments and their impact on goodwill impairment assessment □ Applicable √ Inapplicable II. Non-operating Funds Occupied by Controlling Shareholders and Other Related Parties During the Reporting Period □ Applicable √ Inapplicable III. Illegal Guarantee □ Applicable √ Inapplicable IV. Explanations of the Company's Board on the “Nonstandard Auditor’s Report” provided by the Accounting Firm □ Applicable √ Inapplicable V. Analytical descriptions of the Company on the causes and influence of the Accounting Policy, Accounting Estimate Alterations or Major Accounting Error Correction (I) Analytical descriptions of the Company on the causes and influence of the accounting policy and accounting estimate alterations √ Applicable □ Inapplicable (II) Analytical descriptions of the company on the causes and influence of major accounting error correction □ Applicable √ Inapplicable (III) Communication with former accounting firms □ Applicable √ Inapplicable (IV) Other notes □ Applicable √ Inapplicable VI. Employment and Dismissal of Accounting Firms Unit: RMB 10,000 Currency: RMB Existing accounting firm Contents and reasons of changes in accounting policies Procedures for review and approval Remarks (name and amount of the significantly affected report items) In December 2018, the Ministry of Finance revised and issued the Accounting Standards for Business Enterprises No. 21 - Leases (CK [2018] No. 35) (hereinafter referred to as the "New Leasing Standard"). Changes of relevant accounting policies have been reviewed and approved in the 23rd Meeting of the Fifth Board of Directors of the Company. Since January 1, 2021, the Company has implemented the New Leasing Standard, disclosed the financial statements according to the requirements of such standard, adjusted the related items in the financial statements, and did not adjust the information of comparable periods. The implementation of the above new standards will not have a material impact on the Company’s financial statements. 2021 Annual Report 67 / 292 Name of domestic accounting firm ShineWing Certified Public Accountants LLP Remuneration for domestic accounting firm 305 Audit period of domestic accounting firm 6 Name Remuneration Accounting firm for internal control and audit Pan-China Certified Public Accountants LLP 38.16 Employment and dismissal of accounting firms □ Applicable √ Inapplicable About changed employment of the accounting firm during the audit VII. Facing the Risk of Delisting (I) Causes of the delisting risk warning □ Applicable √ Inapplicable (II) Countermeasures planned to be taken by the Company □ Applicable √ Inapplicable (III) Circumstances and reasons for delisting □ Applicable √ Inapplicable VIII. Relevant Matters of Bankruptcy Reorganization □ Applicable √ Inapplicable IX. Major Litigation and Arbitration Matters □ The Company had significant litigations or arbitrations in the current year. √ The Company had no significant litigations or arbitrations in the current year. X. Penalty to and Rectification of the Listed Company and Its Directors, Supervisors, Senior Management, Controlling Shareholders and Actual Controllers Due to Suspected Violation of Laws and Regulations □ Applicable √ Inapplicable XI. Explanations on the Honesty Condition of The Company and Its Controlling Shareholders and Actual Controllers in the Reporting Period □ Applicable √ Inapplicable XII. Major Related Party Transactions (I) Related party transaction relevant to daily management 1. Matters already disclosed in the temporary bulletin and without progress or changes of subsequent execution □ Applicable √ Inapplicable 2. Matters already disclosed in the temporary bulletin but with progress or changes of subsequent execution □ Applicable √ Inapplicable 3. Matters not disclosed in the temporary bulletin □ Applicable √ Inapplicable 2021 Annual Report 68 / 292 (II) Related Party Transactions Accrued from the Assets or Equity Acquisition and Sales 1. Matters already disclosed in the temporary bulletin and without progress or changes of subsequent execution □ Applicable √ Inapplicable 2. Matters already disclosed in the temporary bulletin but with progress or changes of subsequent execution □ Applicable √ Inapplicable 3. Matters not disclosed in the temporary bulletin □ Applicable √ Inapplicable 4. Where the performance is agreed, the achievements during the reporting period shall be disclosed □ Applicable √ Inapplicable (III) Major Related Party Transactions of Joint Investments Abroad 1. Matters already disclosed in the temporary bulletin and without progress or changes of subsequent execution √ Applicable □ Inapplicable Summary of matters Query index On November 17, 2021, the Company disclosed the Announcement on the Establishment of Joint Venture and Related Party Transactions with CTG Yunnan Energy Investment Co., Ltd., in which the Company's wholly-owned subsidiary CYPC Xinneng Co., Ltd. and CTG Yunnan Energy Investment Co., Ltd., a wholly-owned subsidiary of China Three Gorges Group, jointly invested RMB 3 billion (CYPC Xinneng Co., Ltd. contributed RMB 1.53 billion) in the ratio of 51% and 49% respectively to establish CYPC Yunnan Energy Investment Co., Ltd. which would be used as the business implementation platform of Yunnan side of the renewable energy base for hydro, wind and solar power integration in the lower reaches of Jinsha River to carry out relevant businesses as a whole. For details of the transaction, please refer to the relevant announcement issued on the website of the Shanghai Stock Exchange (http://www.sse.com.cn/), with an announcement No.: 2021-049. 2. Matters already disclosed in the temporary bulletin but with progress or changes of subsequent execution √ Applicable □ Inapplicable On February 9, 2021, the Company disclosed an Announcement on the Capital Increase of the Three Gorges Base Company and Related Transactions, in which the Company participated in the capital increase of Three Gorges Base Company by contributing RMB 600 million with its own funds in the same proportion. Three Gorges Base Company plans to increase its registered capital by RMB 2 billion to RMB 3.575 billion. The newly-increased capital will be increased by the original shareholders in cash by non-public agreement according to their shareholding proportion, and will be paid in installments according to the project progress. After the capital increase, the Company's total capital contribution to Three Gorges Base Company is RMB1.072 billion, with a shareholding proportion of 30%. As of the end of 2021, the Company has paid a total of RMB 331.5 million for the capital increase, with RMB 268.5 million remaining unpaid. For details of the transaction, please refer to the relevant announcement issued on the website of the Shanghai Stock Exchange (http://www.sse.com.cn/), with an announcement No.: 2021-010. 3. Matters not disclosed in the temporary bulletin □ Applicable √ Inapplicable 2021 Annual Report 69 / 292 (IV)Related Party Credit And Debt See notes to 2021 Financial Statement “Related Party and Related Party Transaction” for details. (V) Financial business between the Company and related financial companies, holding financial companies and related parties □ Applicable □ Not applicable 1. Deposit business √ Applicable □ Inapplicable Unit: yuan Currency: RMB Related party Relationship of related parties Daily maximum deposit limit Range of deposit interest rate Beginning balance Accrual of the period Ending balance Total deposit amount for the period Total withdrawal amount for the period Three Gorges Finance Co., Ltd. Legal person controlled by controlling shareholders of the Company 20,000,000,000 Higher than the benchmark deposit interest rate of the People's Bank of China in the same period 4,891,081,994.88 132,851,269,834.75 129,526,074,634.28 8,216,277,195.35 TOTAL / / / 4,891,081,994.88 132,851,269,834.75 129,526,074,634.28 8,216,277,195.35 2. Loan business √ Applicable □ Inapplicable Unit: yuan Currency: RMB Related party Relationship of related parties Loan limit Range of loan interest rate Beginning balance Accrual of the period Ending balance Total loan amount for the period Total repayment amount for the period Three Gorges Finance Co., Ltd. Legal person controlled by controlling shareholders of the Company 40,000,000,000 Lower than the benchmark loan interest rate of the People's Bank of China in the same period 12,000,000,000 23,800,000,000 22,100,000,000 13,700,000,000 TOTAL / / / 12,000,000,000 23,800,000,000 22,100,000,000 13,700,000,000 3. Credit business or other financial business √ Applicable □ Inapplicable Unit: yuan Currency: RMB Related party Relationship of related parties Business type Total amount Actual amount incurred Three Gorges Finance Co., Ltd. Legal person controlled by controlling shareholders of the Company Credit business 50,000,000,000 23,000,000,000 Note: As of December 31, 2021, the Company's comprehensive credit line of Three Gorges Finance Co., Ltd. is RMB 50 billion, including a loan limit of RMB 40 billion; the signed and existing loan contract amount is RMB 23 billion, with an actual withdrawal of RMB 13.7 billion; 4. Other descriptions □ Applicable √ Inapplicable 2021 Annual Report 70 / 292 (VI) Others □ Applicable √ Inapplicable XIII. Major Contracts and Its Implementation (I) Trusteeship, Contracting and Leasing Events 1. Trusteeship □ Applicable √ Inapplicable 2. Contracting □ Applicable √ Inapplicable 3. Leasing □ Applicable √ Inapplicable 2021 Annual Report 71 / 292 (II) Guarantee √ Applicable □ Inapplicable Unit: yuan Currency: RMB External guarantee (excluding the guarantee to subsidiaries) Guarant or Relation between guarant or and listed compan y Name of the Guarantee d Guaranteed amount Guarante e date (agreeme nt signing date) From To Types of guarante es Collater al (if any) Guarante e has been performe d or not Whether the guarante e is overdue Amou nt overrid e Counter-guarant ee Whether the related parties are guarantee d Relationsh ip of related parties China Yangtze Power Co., Ltd. Inside the Compan y Hunan Taohuajia ng Nuclear Power Co., Ltd. 243,468,000. 00 Novembe r 2019 Novemb er 2019 Novemb er 2025 General guarante e N/A No No - N/A Yes Associated enterprises Total amount incurred of the guarantee in the reporting period (excluding the guarantee to the subsidiaries) Total balance of the guarantee at the end of reporting period (A) (excluding the guarantee to the subsidiaries) 243,468,000.00 Guarantee of the Company and its subsidiaries on subsidiaries Total amount incurred of the guarantee to subsidiaries in the reporting period Total balance of guarantee to subsidiaries at the end of reporting period (B) Total guarantee amount (including the guarantee to subsidiaries) Total guarantee amount (A+B) 243,468,000.00 Proportion of total guarantee amount to the Company net assets (%) 0.13 Where: Amount of the guarantee provided for shareholders, actual controllers and their related party (C) 243,468,000.00 Amount of debt guarantee provided directly or indirectly for the 243,468,000.00 2021 Annual Report 72 / 292 guarantee with the asset-liability ratio exceeding 70% (D) Amount of the portion with the total amount of guarantee exceeding net assets by 50% (E) Total amount of above three guarantees (C+D+E) 243,468,000.00 Description of possible liability for satisfaction (the guarantee not yet due) 2021 Annual Report 73 / 292 (III) About the Entrusting Others with the Management of Cash Assets 1. Entrusted financial management (1) Overall entrusted financial management □ Applicable √ Inapplicable (2) Entrusted financial management □ Applicable √ Inapplicable (3) Impairment provision of entrusted financial management □ Applicable √ Inapplicable 2. Entrusted loans (1) Overall entrusted loan □ Applicable √ Inapplicable (2) Entrusted loans □ Applicable √ Inapplicable (3) Provision for impairment of entrusted loans □ Applicable √ Inapplicable 3. Other information □ Applicable √ Inapplicable (IV) Other Major Contracts □ Applicable √ Inapplicable XIV. Description of other significant matters that have a significant impact on investors' value judgments and investment decisions □ Applicable √ Inapplicable Section VII Changes in Shares and Shareholders I. Changes in Capital Stock (I) Changes in Shares 1. Changes in Shares During the reporting period, both the total amount of shares and capital stock structure of the Company have not changed. 2. About Changes in Shares □ Applicable √ Inapplicable 3. Effect of changes in shares on financial indicators such as earnings per share and net assets per share for the recent year and the recent period (if any) □ Applicable √ Inapplicable 2021 Annual Report 74 / 292 4. Other contents disclosed according to the requirements of the Company or the securities regulatory authorities □ Applicable √ Inapplicable (II) About Changes in Restricted Shares □ Applicable √ Inapplicable II. Conditions on Securities Issuance and Listing (I) Conditions on Issuance of Securities as of the Reporting Period √ Applicable □ Inapplicable Unit: yuan Currency: RMB Types of stock and its derivative securities Issuing date 3 Offer price (or interest rate) Issuing number Listing date Approved number listed for trading Termination date of transaction 4 Bonds (including enterprise bonds, corporate bonds and debt financing instruments of non-financial corporate) 2021 Short-term Commercial Papers (First Issue) of China Yangtze Power Co., Ltd. 2021/01/06 2.89% 2,500,000,000 2021/01/11 2,500,000,000 2022/01/07 2021 Short-term Commercial Papers (Second Issue) of China Yangtze Power Co., Ltd. 2021/03/11 3.08% 2,000,000,000 2021/03/16 2,000,000,000 2022/03/14 2021 Medium-term Notes (First Issue) of China Yangtze Power Co., Ltd. 2021/04/07 3.53% 2,500,000,000 2021/04/12 2,500,000,000 2024/04/08 2021 Medium-term Notes (Second Issue) (Sustainability-linked) of China Yangtze Power Co., Ltd. 2021/05/06 3.40% 1,000,000,000 2021/05/11 1,000,000,000 2024/05/09 China Yangtze Power Co., Ltd. publicly issued green corporate bonds in 2021 (First Issue) (for professional investors) 2021/06/17 3.73% 1,500,000,000 2021/06/25 1,500,000,000 2026/06/17 2021 Super & Short-term Commercial Paper (First Issue) of China Yangtze Power Co., Ltd. 2021/07/07 2.55% 2,500,000,000 2021/07/12 2,500,000,000 2021/11/05 2021 Super & Short-term Commercial Paper (Third Issue) of China Yangtze Power Co., Ltd. 2021/07/08 2.64% 2,000,000,000 2021/07/13 2,000,000,000 2021/12/17 3 The issue date is filled in according to the first day of bond issuance. 4 The transaction termination date is filled in according to the bond delisting date, which is the business day before the bond cashing date. 2021 Annual Report 75 / 292 2021 Super & Short-term Commercial Paper (Second Issue) of China Yangtze Power Co., Ltd. 2021/07/09 2.45% 1,500,000,000 2021/07/13 1,500,000,000 2021/10/29 China Yangtze Power Co., Ltd. publicly issued corporate bonds in 2021 (Second Issue) (for professional investors) 2021/11/08 3.05% 2,000,000,000 2021/11/16 2,000,000,000 2024/11/08 Explanation on the issuance of securities as of the reporting period (please specify separately for bonds with different interest rates during the duration): □ Applicable √ Inapplicable (II) Changes in Number of Shares and Shareholding of the Company’s Shares and the Changes in Structure of its Balance Sheet □ Applicable √ Inapplicable (III) Conditions on Existing Internal Staff Shares □ Applicable √ Inapplicable III. Conditions on Shareholders and Actual Controllers (I) Total Number of Shareholders Total number of ordinary Shareholders at the end of the Reporting Period (Nr.) 167,580 Total number (Nr.) of common shareholders at the end of the previous month before disclosure of the annual report 177,950 (II) Shareholding of the Top 10 Shareholders and Top 10 Outstanding Shareholders (or Holders of Unrestricted Shares) at the End of the Reporting Period Unit: share Shareholding structure of the top ten shareholders Name of shareholde r (full name) Increase/decrea se during reporting period Number of shares held at the end of the period Proportio n (%) Number of holding shares with trading limited conditio n Pledged, marked or frozen status Nature of shareholder Status of shares Qty. China Three Gorges Corporatio n -222,103,271 5 12,512,002,17 4 6 55.02 0 Pledge 1,727,572,88 2 State-owned legal person 5 Equity held by China Three Gorges Corporation decreased, which was mainly due to the fact that the exchangeable bonds issued by China Three Gorges Corporation in 2019 entered the stock exchange period from April 13, 2020, and some investors took stock exchange actions. 6 The number of shares held at the end of the period was calculated by combining the two accounts of "China Three Gorges Corporation" and "CTG-CITIC Securities-18 CTG EB Guarantee and Trust Property Account". 2021 Annual Report 76 / 292 Hong Kong Securities Clearing Company Limited 400,336,147 1,641,434,733 7.22 0 Unknow n Miscellenao us Ping An Life Insurance Company of China, Ltd. - Traditional - General insurance products 0 988,076,143 4.34 0 Unknow n Miscellenao us China Three Gorges Constructi on Engineerin g Corporatio n 0 880,000,000 3.87 0 N/A State-owned legal person Sichuan Energy Industry Investment Group Co., Ltd. 51,117,900 835,517,800 3.67 0 Unknow n State-owned legal person Yunnan Provincial Energy Investment Group Co., Ltd. -105,920,602 722,819,458 3.18 0 Unknow n State-owned legal person China Securities Finance Corporatio n Limited 0 657,980,472 2.89 0 Unknow n Miscellenao us Sunshine Life Insurance Co., Ltd. - Jili endowmen t insurance products 0 420,000,000 1.85 0 Unknow n Miscellenao us China National Nuclear Corporatio n 0 261,594,750 1.15 0 Unknow n State-owned legal person 2021 Annual Report 77 / 292 Sunshine Life Insurance Co., Ltd. - All-purpos e insurance products 0 250,000,000 1.10 0 Unknow n Miscellenao us Shareholdings of top ten shareholders without trading limited condition Name of shareholder Number of tradable shares without trading limited condition Share type and number Categories Qty. China Three Gorges Corporation 12,512,002,174 RMB common shares 12,512,002,174 Hong Kong Securities Clearing Company Limited 1,641,434,733 RMB common shares 1,641,434,733 Ping An Life Insurance Company of China, Ltd. - Traditional - General insurance products 988,076,143 RMB common shares 988,076,143 China Three Gorges Construction Engineering Corporation 880,000,000 RMB common shares 880,000,000 Sichuan Energy Industry Investment Group Co., Ltd. 835,517,800 RMB common shares 835,517,800 Yunnan Provincial Energy Investment Group Co., Ltd. 722,819,458 RMB common shares 722,819,458 China Securities Finance Corporation Limited 657,980,472 RMB common shares 657,980,472 Sunshine Life Insurance Co., Ltd. - Jili endowment insurance products 420,000,000 RMB common shares 420,000,000 China National Nuclear Corporation 261,594,750 RMB common shares 261,594,750 Sunshine Life Insurance Co., Ltd. - All-purpose insurance products 250,000,000 RMB common shares 250,000,000 Description of repurchase special account among the top ten shareholders N/A Description of the proxy voting rights, entrusted voting rights and abstention from voting rights of the above-mentioned shareholders N/A Explanations of relationships between or concerted actions of the aforementioned shareholders China Three Gorges Construction Engineering (Group) Co., Ltd. is a wholly-owned subsidiary of the Company's controlling shareholder, China Three Gorges Corporation. Besides, the related relationship and action in concert between other shareholders is unknown to the Company. Shares held by the top ten shareholders with trading conditions and the detailed information about the trading conditions □ Applicable √ Inapplicable (III) Strategic investor or general legal entity becoming top ten shareholders due to rights issue □ Applicable √ Inapplicable 2021 Annual Report 78 / 292 IV. Controlling Shareholders and Actual Controllers (I) Controlling Shareholders 1 Legal person √ Applicable □ Inapplicable Name China Three Gorges Corporation Head of unit or legal representative Lei Mingshan Date of establishment September 18, 1993 Main businesses Project investment; Equity investment; Hydropower generation; Wind power generation; Solar power generation; Ecological protection services; Water pollution control; Sewage treatment and its recycling; Water resources management; Water conservancy related consulting services; Research and development of emerging energy and resource recycling technologies; Development, consultation, exchange, transfer, promotion and service of new energy and environmental protection technology; Urban drainage facilities management services; Municipal facilities management services; Environmental consulting services; Engineering management services; Engineering supervision services; Internet of Things application services; Import & export of goods and technology and their agency; Domestic tourism business. Equity situation of other domestic and foreign listed companies of share controlling or participation in the reporting period The number of shares held by China Nuclear Power Co., Ltd. was 50 million shares with a shareholding proportion of 0.29%. The number of shares held by Hubei Energy was 1021.1 million shares with a shareholding proportion of 15.69%. The number of shares held by Bank of Beijing was 398.23 million shares with a shareholding proportion of 1.88%. The number of shares held by CHINA DEVELOPMENT BANK FINANCIAL LEASING CO., LTD. was 687,024,000 shares with a shareholding proportion of 5.43%. The China Three Gorges Renewables(group) Co., Ltd. held 14 billion shares, with a shareholding proportion of 49.00%. The Shanghai Electric Power Co., Ltd. held 160,852,800 shares, with a shareholding proportion of 6.15%. The Shijiazhuang Dongfang Energy Co., Ltd. held 260,940,200 shares, with a shareholding proportion of 4.85%. (II) Actual Controllers 1 Legal person √ Applicable □ Inapplicable Name State-owned Assets Supervision and Administration Commission of the State Council 2 Natural person □ Applicable √ Inapplicable 3 Special statement for the condition that the Company has no actual controller □ Applicable √ Inapplicable 4 Description of the changes in the Company's control rights during the reporting period □ Applicable √ Inapplicable 5 Block diagram of property right and control relationship between the Company and the actual controllers √ Applicable □ Inapplicable 2021 Annual Report 79 / 292 6 Actual controllers control the Company by trust or other asset management methods □ Applicable √ Inapplicable (III) Other Information about Controlling Shareholders and Actual Controllers □ Applicable √ Inapplicable V. The company's controlling shareholder or the first majority shareholder and its concert parties pledged a total of 80% or more of their shareholdings in the company □ Applicable √ Inapplicable VI. Other corporate shareholders holding more than 10% of shares □ Applicable √ Inapplicable VII. Explanation on the restriction in reduction of shares □ Applicable √ Inapplicable VIII. The specific implementation of share repurchase during the reporting period □ Applicable √ Inapplicable Section VIII Preferred Shares □ Applicable √ Inapplicable 2021 Annual Report 80 / 292 Section IX Relevant Information of Corporate Bonds I. Enterprise Bonds, Corporate Bonds and Debt Financing Instrument of Non-financial Enterprises √ Applicable □ Inapplicable (I) Corporate bonds √ Applicable □ Inapplicable 1. Basic Information of Corporate Bonds Unit: yuan Currency: RMB Name of bond Abbrevi ation Code Issue date 7 Value date Matur ity date Bond balance Inter est rate (%) Debt servi ce mode Trading place Adequa cy arrange ment by investo rs (if any) Tradin g mechan isms Risk of termin ation of listing 2002 Corpor ate Bonds of China Three Gorges Project Corpor ation 02 CTG bond 7103.IB;1202 01.SH 2002/ 9/20 2002/ 9/20 2022/ 9/20 5,000,00 0,000 4.76 Inter est paid once a year with the princ ipal repai d when due at a time Nationwid e Inter-bank bond market/Sh anghai Stock Exchange N/A Public transact ions No 2003 Corpor ate Bonds of China Three Gorges Project Corpor ation 03 CTG bond 038006.IB;12 0303.SH 2003/ 8/1 2003/ 8/1 2033/ 8/1 3,000,00 0,000 4.86 Inter est paid once a year with the princ ipal repai d when due at a time Nationwid e Inter-bank bond market/Sh anghai Stock Exchange N/A Public transact ions No The Company's countermeasures against the risk of termination of bond listing □ Applicable √ Inapplicable Overdue outstanding bonds □ Applicable √ Inapplicable Payment of interest and cash of bonds during the reporting period √ Applicable □ Inapplicable Name of bond Description of the payment of interest and cash 7 The issuance date is the starting date of the public offering period. 2021 Annual Report 81 / 292 2002 Corporate Bonds of China Three Gorges Project Corporation The interest-bearing period of the bonds is from September 20, 2002 to September 19, 2022. During the reporting period, the Company has paid interest to investors for the period from September 20, 2020 to September 19, 2021 in accordance with the agreement in the Prospectus on September 22, 2021 (if the interest payment date falls on a holiday, it will be postponed to the first business day thereafter). 2003 Corporate Bonds of China Three Gorges Project Corporation The interest-bearing period of the bonds is from August 1, 2003 to July 31, 2033. During the reporting period, the Company has paid interest to investors for the period from August 1, 2020 to July 31, 2021 in accordance with the agreement in the Prospectus on August 2, 2021 (if the interest payment date falls on a holiday, it will be postponed to the first business day thereafter). 2. Trigger and implementation of issuer’s or investor’s choice clause, investor's protection clause □ Applicable √ Inapplicable 3. Intermediaries providing services for bond issuance and duration business Name of the intermediary Office address Names of the accountants as signatories Contact person Tel. CITIC Securities Company Limited CITIC Securities Tower, No.48 Liangmaqiao Road, Chaoyang District, Beijing — Lin Luxiang, Wang Yanjun 010-60838276 China Government Securities Depository Trust & Clearing Co., Ltd. Building No.10, Finance Avenue, Xicheng District, Beijing — Gao Wendi, Li Zihan 010-88170827, 010-88170759 Changes in the above intermediaries □ Applicable √ Inapplicable 4. Use of raised funds at the end of the reporting period √ Applicable □ Inapplicable Unit: yuan Currency: RMB Name of bond Total raised funds Amount used Unused amount Operation of the special account for raised funds (if any) Rectification of irregular use of raised funds (if any) Compliance of actual use of raised funds with the committed use, use plan and other agreement of fundraising instructions. 2002 Corporate Bonds of China Three Gorges Project Corporation 5,000,000,000 5,000,000,000 0 N/A N/A Yes 2003 Corporate 3,000,000,000 3,000,000,000 0 N/A N/A Yes 2021 Annual Report 82 / 292 Bonds of China Three Gorges Project Corporation The progress and operational benefits of using raised funds for construction projects √ Applicable □ Inapplicable All the funds raised by the 02 CTG bond and 03 CTG bond were used for the Three Gorges Dam Project. In 2020, the Three Gorges Project completed all procedures for overall completion and acceptance, which meant the construction tasks of the Three Gorges Project were fully completed. The quality of the project met the regulations and design requirements, and it was generally excellent. The operation continued to be in good condition, and the comprehensive benefits of flood control, power generation, shipping, and water resources utilization were fully brought into play. Among them, Three Gorges Hydropower Station put all units into operation in 2012, with a total installed capacity of 22,500 MW. It is the largest hydropower station in the world, and the backbone power supply point for west-to-east power transmission and mutual supply between north and south in China, which could provide high-quality clean energy for the economic development of ten provinces and cities in Central, East and South China. The Three Gorges Hydropower Station installed 26 hydropower stations at dam-toe with a single capacity of 700 MW; 2 power supply stations with a single capacity of 50 MW; and 6 underground hydropower stations on the right bank with a single capacity of 700 MW. The annual average generation capacity of the Three Gorges Hydropower Station was 102,310 GWh from 2017 to 2021, and in 2020 its generation capacity reached 111,802 GWh, which has set a new world record for annual generation capacity from a single hydropower plant. In 2021, the annual generation capacity of the Three Gorges Hydropower Station was 103,649 GWh. The fundraising project of the above-mentioned bond was in good condition. Description of changing the use of the above-mentioned bond during the reporting period □ Applicable √ Inapplicable Other descriptions □ Applicable √ Inapplicable 5. Adjustment of credit rating results □ Applicable √ Inapplicable Other descriptions □ Applicable √ Inapplicable 6. Implementation and change of guarantee, debt repayment plan and other debt paying guarantee measures during the reporting period and their impact √ Applicable □ Inapplicable Current situation Implementation Whether the change occurred After change Reason for change Whether the change has been approve d by the authority Impact of the change on the equity of bond investors Guarante e China Three Gorges Corporation was responsible for the joint and several guarantee liabilities which were irrevocable for 02 No 2021 Annual Report 83 / 292 CTG bond and 03 CTG bond 7. About other situations of corporate bonds □ Applicable √ Inapplicable (II) Corporate Bonds √ Applicable □ Inapplicable 1. Basic information of corporate bonds Unit: yuan Currency: RMB Name of bond Abbrevi ation Code Issue date 8 Value date Maturit y date Bond balance Inter est rate (%) Debt servi ce mode Tradi ng place Adequa cy arrange ment by investor s (if any) Trading mechan isms Risk of termina tion of listing 2016 Corpor ate Bonds of China Yangtz e Power Co., Ltd. (First Issue) 16 CYPC bond 01 136762 .SH 2016/1 0/14 2016/1 0/17 2026/1 0/17 3,000,00 0,000 3.35 Intere st paid once a year with the princi pal repai d when due at a time Shang hai Stock Excha nge Accredi ted investor Public transact ions No China Yangtz e Power Co., Ltd. publicl y issues the 2019 corpora te bonds (Phase I) 19 CYPC bond 01 155177 .SH 2019/0 2/18 2019/0 2/19 2022/0 2/19 3,000,00 0,000 3.45 Intere st paid once a year with the princi pal repai d when due at a time Shang hai Stock Excha nge Accredi ted investor Public transact ions No China Yangtz e Power Co., Ltd. publicl y issued corpora te bonds in 2019 (Secon d Issue) 19 CYPC bond 02 155674 .SH 2019/0 9/03 2019/0 9/04 2024/0 9/04 2,000,00 0,000 3.80 Intere st paid once a year with the princi pal repai d when due at Shang hai Stock Excha nge Accredi ted investor Public transact ions No 8 The issuance date is the starting date of issuance under the current bond network. 2021 Annual Report 84 / 292 a time China Yangtz e Power Co., Ltd. publicl y issued corpora te bonds in 2019 (Third Issue) 19 CYPC bond 03 163052 .SH 2019/1 2/05 2019/1 2/06 2022/1 2/06 2,000,00 0,000 3.49 Intere st paid once a year with the princi pal repai d when due at a time Shang hai Stock Excha nge Accredi ted investor Public transact ions No China Yangtz e Power Co., Ltd. publicl y issued 2020 corpora te bonds (First Issue) (Variet y I) 20 CYPC bond 01 163096 .SH 2020/0 1/07 2020/0 1/08 2023/0 1/08 1,500,00 0,000 3.37 Intere st paid once a year with the princi pal repai d when due at a time Shang hai Stock Excha nge Accredi ted investor Public transact ions No China Yangtz e Power Co., Ltd. publicl y issued 2020 corpora te bonds (First Issue) (Variet y II) 20 CYPC bond 02 163097 .SH 2020/0 1/07 2020/0 1/08 2025/0 1/08 500,000, 000 3.70 Intere st paid once a year with the princi pal repai d when due at a time Shang hai Stock Excha nge Accredi ted investor Public transact ions No China Yangtz e Power Co., Ltd. publicl y issued green corpora te bonds in 2021 (First Issue) (for professi onal investor s) G21 CYPC 1 188243 .SH 2021/0 6/17 2021/0 6/18 2026/0 6/18 1,500,00 0,000 3.73 Intere st paid once a year with the princi pal repai d when due at a time Shang hai Stock Excha nge Professi onal investor Public transact ions No 2021 Annual Report 85 / 292 China Yangtz e Power Co., Ltd. publicl y issued corpora te bonds in 2021 (Secon d Issue) (for professi onal investor s) 21 CYPC bond 01 188971 .SH 2021/1 1/08 2021/1 1/09 2024/1 1/09 2,000,00 0,000 3.05 Intere st paid once a year with the princi pal repai d at matur ity Shang hai Stock Excha nge Professi onal investor Public transact ions No The Company's countermeasures against the risk of termination of bond listing □ Applicable √ Inapplicable Overdue outstanding bonds □ Applicable √ Inapplicable Payment of interest and cash of bonds during the reporting period √ Applicable □ Inapplicable Name of bond Description of the payment of interest and cash 2016 Corporate Bonds of China Yangtze Power Co., Ltd. (First Issue) The interest-bearing period of the bonds is from October 17, 2016 to October 16, 2026. During the reporting period, the Company has paid interest to investors for the period from October 17, 2020 to October 16, 2021 in accordance with the agreement in the Prospectus on October 18, 2021 (if the interest payment date falls on a holiday, it will be postponed to the first business day thereafter). China Yangtze Power Co., Ltd. publicly issued corporate bonds in 2018 (First Issue) The interest-bearing period of the bonds is from July 26, 2018 to July 25, 2021. During the reporting period, the Company has paid the interest and principal of the bonds to investors on July 26, 2021 for the period from July 26, 2020 to July 25, 2021 in accordance with the agreement in the Prospectus. China Yangtze Power Co., Ltd. publicly issued corporate bonds in 2018 (Second Issue) The interest-bearing period of the bonds is from September 27, 2018 to September 26, 2021. During the reporting period, the Company has paid the interest and principal of the bonds to investors on September 27, 2021 for the period from September 27, 2020 to September 26, 2021 in accordance with the agreement in the Prospectus. China Yangtze Power Co., Ltd. publicly issues the 2019 corporate bonds (Phase I) The interest-bearing period of the bonds is from February 19, 2019 to February 18, 2022. During the reporting period, the Company has paid interest to investors on February 19, 2021 for the period from February 19, 2020 to February 18, 2021 in accordance with the agreement in the Prospectus. China Yangtze Power Co., Ltd. publicly issued corporate bonds in 2019 (Second Issue) The interest-bearing period of the bonds is from September 4, 2019 to September 3, 2024. During the reporting period, the Company has paid interest to investors for the period from September 4, 2020 to September 3, 2021 in accordance with the agreement in the Prospectus on September 6, 2021 (if the interest payment date falls on a holiday, it will be postponed to the first business day thereafter). China Yangtze Power Co., Ltd. publicly issued corporate bonds in 2019 (Third Issue) The interest-bearing period of the bonds is from December 6, 2019 to December 5, 2022. During the reporting period, the Company has paid interest to investors on December 6, 2021 for the period from December 6, 2020 to December 5, 2021 in accordance with the agreement in the Prospectus. China Yangtze Power Co., Ltd. publicly issued The interest-bearing period of the bonds is from January 8, 2020 to January 7, 2023. During the reporting period, the Company has paid interest to investors 2021 Annual Report 86 / 292 2020 corporate bonds (First Issue) (Variety I) on January 8, 2021 for the period from January 8, 2020 to January 7, 2021 in accordance with the agreement in the Prospectus. China Yangtze Power Co., Ltd. publicly issued 2020 corporate bonds (First Issue) (Variety II) The interest-bearing period of the bonds from January 8, 2020 to January 7, 2025. During the reporting period, the Company has paid interest to investors on January 8, 2021 for the period from January 8, 2020 to January 7, 2021 in accordance with the agreement in the Prospectus. 2. Trigger and implementation of issuer’s or investor’s choice clause, investor's protection clause □ Applicable √ Inapplicable 3. Intermediaries providing services for bond issuance and duration business Name of the intermediary Office address Names of the accountants as signatories Contact person Tel. China Securities Co., Ltd. 2/F, Building B, Hengkai Center, No. 2, Chaonei Street, Dongcheng District, Beijing — Lei Yiming 010-86451464 CITIC Securities Company Limited CITIC Securities Tower, No.48 Liangmaqiao Road, Chaoyang District, Beijing — Lin Luxiang, Wang Yanjun 010-60838276 Ping An Securities Company Limited 16/F, North Building, Financial Street Center, No. 9, Financial Street, Xicheng District, Beijing — Cui Yidan 010-56800252 BOC International (China) Co., Ltd. 7F, No.110 Xidan North Street, Xicheng District, Beijing — Wang Rui 010-66229276 Beijing DeHeng Law Offices 12/F, Block B, Fukai Building, No. 19 Financial Street, Xicheng District, Beijing — Wang Huakun 010-52682888 ShineWing Certified Public Accountants LLP 9/F, Block A, Fu Hua Mansion, No. 8, Chaoyangmen Beidajie, Dongcheng District, Beijing Zhan Jun and Qiu Xin Qiu Xin 010-65542288 China Chengxin International Credit Rating Co., Ltd. 60101, Building 1, No.2 Nanhugan Hutong, Dongcheng District, Beijing — Li Junyan 010-66428877 Changes in the above intermediaries □ Applicable √ Inapplicable 2021 Annual Report 87 / 292 4. Use of raised funds at the end of the reporting period √ Applicable □ Inapplicable Unit: yuan Currency: RMB Name of bond Total raised funds Amount used Unused amount Operation of the special account for raised funds (if any) Rectification of irregular use of raised funds (if any) Compliance of actual use of raised funds with the committed use, use plan and other agreement of fundraising instructions. 2016 Corporate Bonds of China Yangtze Power Co., Ltd. (First Issue) 3,000,000,000 3,000,000,000 0 Operate normally in accordance with the Prospectus N/A Yes China Yangtze Power Co., Ltd. publicly issues the 2019 corporate bonds (First Issue) 3,000,000,000 3,000,000,000 0 Operate normally in accordance with the Prospectus N/A Yes China Yangtze Power Co., Ltd. publicly issued corporate bonds in 2019 (Second Issue) 2,000,000,000 2,000,000,000 0 Operate normally in accordance with the Prospectus N/A Yes China Yangtze Power Co., Ltd. publicly issued corporate bonds in 2019 (Third Issue) 2,000,000,000 2,000,000,000 0 Operate normally in accordance with the Prospectus N/A Yes China Yangtze Power Co., Ltd. publicly issued 2020 corporate bonds (First Issue) (Variety I) 1,500,000,000 1,500,000,000 0 Operate normally in accordance with the Prospectus N/A Yes China Yangtze Power Co., Ltd. publicly issued 2020 corporate bonds (First Issue) (Variety II) 500,000,000 500,000,000 0 Operate normally in accordance with the Prospectus N/A Yes China Yangtze 1,500,000,000 1,500,000,000 0 Operate N/A Yes 2021 Annual Report 88 / 292 Power Co., Ltd. publicly issued green corporate bonds in 2021 (First Issue) (for professional investors) normally in accordance with the Prospectus China Yangtze Power Co., Ltd. publicly issued corporate bonds in 2021 (Second Issue) (for professional investors) 2,000,000,000 2,000,000,000 0 Operate normally in accordance with the Prospectus N/A Yes The progress and operational benefits of using raised funds for construction projects □ Applicable √ Inapplicable Description of changing the use of the above-mentioned bond during the reporting period □ Applicable √ Inapplicable Other descriptions □ Applicable √ Inapplicable 5. Adjustment of credit rating results □ Applicable √ Inapplicable Other descriptions □ Applicable √ Inapplicable 6. Implementation and change of guarantee, debt repayment plan and other debt paying guarantee measures during the reporting period and their impact □ Applicable √ Inapplicable 7. About other situations of corporate bonds □ Applicable √ Inapplicable (III) Debt Financing Instrument for Non-financial Enterprises in the Inter-bank Bond Market √ Applicable □ Inapplicable 1. Basic information of debt financing instrument for non-financial enterprises Unit: yuan Currency: RMB Name of bond Abbreviation Code Issue date Value date Matur ity date Bond balance Inte rest rate (%) Debt servic e mode Tradi ng place Adequ acy arrang ement by investo rs (if any) Tradin g mecha nisms Risk of termin ation of listing 2015 Medium-ter m Notes (First Issue) of China 15 CYPC MTN001 101554 062.IB 2015/ 09/10 2015/ 9/14 2025/ 9/14 3,000,0 00,000 4.50 Intere st paid once a year with Natio nal inter- bank bond Institut ional investo rs in the Public transac tions No 2021 Annual Report 89 / 292 Yangtze Power Co., Ltd. the princi pal repaid when due at a time mark et nationa l inter-b ank bond market 2018 Medium-ter m Notes (First Issue) of China Yangtze Power Co., Ltd. 18 CYPC MTN001 101801 418.IB 2018/ 12/03 2018/ 12/05 2023/ 12/05 1,990,0 00,000 3.10 Intere st paid once a year with the princi pal repaid when due at a time Natio nal inter- bank bond mark et Institut ional investo rs in the nationa l inter-b ank bond market Public transac tions No 2019 Medium-ter m Notes (First Issue) of China Yangtze Power Co., Ltd. 19 CYPC MTN001 101900 332.IB 2019/ 03/13 2019/ 03/15 2024/ 03/15 3,000,0 00,000 3.65 Intere st paid once a year with the princi pal repaid when due at a time Natio nal inter- bank bond mark et Institut ional investo rs in the nationa l inter-b ank bond market Public transac tions No 2019 Medium-ter m Notes (Second Issue) of China Yangtze Power Co., Ltd. 19 CYPC MTN002 101901 055.IB 2019/ 08/07 2019/ 08/09 2024/ 08/09 2,000,0 00,000 3.40 Intere st paid once a year with the princi pal repaid when due at a time Natio nal inter- bank bond mark et Institut ional investo rs in the nationa l inter-b ank bond market Public transac tions No 2020 Medium-ter m Notes (First Issue) of China Yangtze Power Co., Ltd. (epidemic prevention and control bond) 20 CYPC (EPCB) MTN001 102000 353.IB 2020/ 03/12 2020/ 03/16 2023/ 03/16 2,500,0 00,000 2.95 Intere st paid once a year with the princi pal repaid when due at a time Natio nal inter- bank bond mark et Institut ional investo rs in the nationa l inter-b ank bond market Public transac tions No 2020 Medium-ter m Notes (Second Issue) of China Yangtze Power Co., Ltd. 20 CYPC MTN002 102000 681.IB 2020/ 04/13 2020/ 04/15 2025/ 04/15 2,500,0 00,000 3.07 Intere st paid once a year with the princi pal repaid when due at Natio nal inter- bank bond mark et Institut ional investo rs in the nationa l inter-b ank bond market Public transac tions No 2021 Annual Report 90 / 292 a time 2021 Short-term Commercial Papers (First Issue) of China Yangtze Power Co., Ltd. 21 CYPC CP001 042100 011.IB 2021/ 01/06 2021/ 01/08 2022/ 01/08 2,500,0 00,000 2.89 Repay ment of capital with interes t on the due date Natio nal inter- bank bond mark et Institut ional investo rs in the nationa l inter-b ank bond market Public transac tions No 2021 Short-term Commercial Papers (Second Issue) of China Yangtze Power Co., Ltd. 21 CYPC CP002 042100 115.IB 2021/ 03/11 2021/ 03/15 2022/ 03/15 2,000,0 00,000 3.08 Repay ment of capital with interes t on the due date Natio nal inter- bank bond mark et Institut ional investo rs in the nationa l inter-b ank bond market Public transac tions No 2021 Medium-ter m Notes (First Issue) of China Yangtze Power Co., Ltd. 21 CYPC MTN 001 102100 630.IB 2021/ 04/07 2021/ 04/09 2024/ 04/09 2,500,0 00,000 3.53 Intere st paid once a year with the princi pal repaid when due at a time Natio nal inter- bank bond mark et Institut ional investo rs in the nationa l inter-b ank bond market Public transac tions No 2021 Medium-ter m Notes (Second Issue) of China Yangtze Power Co., Ltd. (Sustainabili ty-linked) 21 CYPC MTN002 (Sustainabili ty-linked) 102100 945.IB 2021/ 05/06 2021/ 05/10 2024/ 05/10 1,000,0 00,000 3.40 Intere st paid once a year with the princi pal repaid when due at a time Natio nal inter- bank bond mark et Institut ional investo rs in the nationa l inter-b ank bond market Public transac tions No The Company's countermeasures against the risk of termination of bond listing □ Applicable √ Inapplicable Overdue outstanding bonds □ Applicable √ Inapplicable Payment of interest and cash of bonds during the reporting period √ Applicable □ Inapplicable Name of bond Description of the payment of interest and cash 2015 Medium-term Notes (First Issue) of China Yangtze Power Co., Ltd. The interest-bearing period of the bonds is from September 14, 2015 to September 13, 2025. During the reporting period, the Company has paid interest to investors on September 14, 2021. for the period from September 14, 2020 to September 13, 2021 in accordance with the agreement in the Prospectus. 2016 Medium-term The interest-bearing period of the bonds is from January 14, 2016 to January 2021 Annual Report 91 / 292 Notes (First Issue) of China Yangtze Power Co., Ltd. 13, 2021. During the reporting period, the Company has paid the interest and the principal of the bonds to investors on January 14, 2021 for the period from January 14, 2020 to January 13, 2021 in accordance with the agreement in the Prospectus. 2016 Medium-term Notes (Second Issue) of China Yangtze Power Co., Ltd. The interest-bearing period of the bonds is from August 2, 2016 to August 1, 2021. During the reporting period, the Company has paid the interest and the principal of the bonds to the investors on August 2, 2021 for the period from August 2, 2020 to August 1, 2021 in accordance with the agreement in the Prospectus. 2018 Medium-term Notes (First Issue) of China Yangtze Power Co., Ltd. The interest-bearing period of the bonds is from December 5, 2018 to December 4, 2023. During the reporting period, the Company has paid the interest for the period from December 5, 2020 to December 4, 2021 and the bond principals of the investors' resale on December 6, 2021 (if the interest payment date falls on a holiday, it will be postponed to the first business day thereafter) in accordance with the agreement in the Prospectus. 2019 Medium-term Notes (First Issue) of China Yangtze Power Co., Ltd. The interest-bearing period of the bonds is from March 15, 2019 to March 14, 2024. During the reporting period, the Company has paid interest to investors on March 15, 2021 for the period from March 15, 2020 to March 14, 2021 in accordance with the agreement in the Prospectus. 2019 Medium-term Notes (Second Issue) of China Yangtze Power Co., Ltd. The interest-bearing period of the bonds is from August 9, 2019 to August 8, 2024. During the reporting period, the Company has paid interest to investors on August 9, 2021 for the period from August 9, 2020 to August 8, 2021 in accordance with the agreement in the Prospectus. 2020 Medium-term Notes (First Issue) of China Yangtze Power Co., Ltd. (epidemic prevention and control bond) The interest-bearing period of the bonds is from March 16, 2020 to March 15, 2023. During the reporting period, the Company has paid interest to investors on March 16, 2021 for the period from March 16, 2020 to March 15, 2021 in accordance with the agreement in the Prospectus. 2020 Medium-term Notes (Second Issue) of China Yangtze Power Co., Ltd. The interest-bearing period of the bonds is from April 15, 2020 to April 14, 2025. During the reporting period, the Company has paid interest to investors on April 15, 2021 for the period from April 15, 2020 to April 14, 2021 in accordance with the agreement in the Prospectus. 2020 Short-term Commercial Paper (First Issue) of China Yangtze Power Co., Ltd. The interest-bearing period of the bonds is from May 18, 2020 to May 17, 2021. During the reporting period, the Company has paid the interest and the principal of the bonds to investors on May 18, 2021 for the period from May 18, 2020 to May 17, 2021 in accordance with the agreement in the Prospectus. 2020 Short-term Commercial Papers (Second Issue) of China Yangtze Power Co., Ltd. The interest-bearing period of the bonds is from August 26, 2020 to August 25, 2021. During the reporting period, the Company has paid the interest and principal of the bonds to the investors on August 26, 2021 for the period from August 26, 2020 to August 25, 2021 in accordance with the agreement in the Prospectus. 2020 Super & Short-term Commercial Paper (Fifth Issue) of China Yangtze Power Co., Ltd. The interest-bearing period of the bonds is from December 10, 2020 to April 18, 2021. During the reporting period, the Company has paid the interest and the principal of the bonds to the investors for the period from December 10, 2020 to April 18, 2021 on April 19, 2021 in accordance with the agreement in the Prospectus. 2021 Super & Short-term Commercial Paper (First Issue) of China Yangtze Power Co., Ltd. The interest-bearing period of the bonds is from July 9, 2021 to November 5, 2021. During the reporting period, the Company has paid the interest and bond principal to investors for the period from July 9, 2021 to November 5, 2021 in accordance with the agreement in the Prospectus on November 8, 2021 (if the interest payment date falls on a holiday, it will be postponed to the first business day thereafter). 2021 Super & Short-term Commercial Paper (Second Issue) of The interest-bearing period of the bonds is from July 12, 2021 to October 29, 2021. During the reporting period, the Company has paid the interest and bond principal to investors for the period from July 12, 2021 to October 29, 2021 in 2021 Annual Report 92 / 292 China Yangtze Power Co., Ltd. accordance with the agreement in the Prospectus on November 1, 2021 (if the interest payment date falls on a holiday, it will be postponed to the first business day thereafter). 2021 Super & Short-term Commercial Paper (Third Issue) of China Yangtze Power Co., Ltd. The interest-bearing period of the bonds is from July 12, 2021 to December 18, 2021. During the reporting period, the Company has paid the interest and bond principal to investors for the period from July 12, 2021 to December 18, 2021 in accordance with the agreement in the Prospectus on December 20, 2021 (if the interest payment date falls on a holiday, it will be postponed to the first business day thereafter). 2. Trigger and implementation of issuer’s or investor’s choice clause, investor's protection clause √ Applicable □ Inapplicable The Company issued the 2018 Medium-term Notes (first issue) of China Yangtze Power Co., Ltd. (hereinafter referred to as "18 CYPC MTN001") on December 5, 2018. The actual issue size of the bonds is RMB 2 billion, the coupon rate is 3.90% and the bond term is 5 years (3+2), with the issuer's option to adjust the coupon rate and the investor's option to sell back at the end of the third year. On November 15, 2021, the Company disclosed the Announcement on the exercise of the Issuer's Option to Adjust the Coupon Rate and the Investor's Option to Sell Back of 2018 Medium-term Notes (first issue) of China Yangtze Power Co., Ltd., which adjusted the coupon rate to 3.10% for the two years after the duration of the medium-term notes. The interest rate came into effect on December 5, 2021, and the registration of investors' resale would be launched. The registration of investors' resale would begin on November 16, 2021 and end on November 22, 2021. On November 24, 2021, the Company disclosed the Announcement of Resale Results of the First Tranche of 2018 Medium-term Notes (first issue) of China Yangtze Power Co., Ltd. According to the resale results, the total resale amount of the bonds was RMB10,000,000.00. The unsold bonds had a total amount of RMB1,990,000,000.00, with a coupon rate of 3.10%. The interest-bearing period is from December 5, 2021 to December 4, 2023. 3. Intermediaries providing services for bond issuance and duration business Name of the intermediary Office address Names of the accountants as signatories Contact person Tel. Bank of China Limited No. 1, Fuxingmennei Street, Xicheng District, Beijing — Li Xintong 010-66595026 Agricultural Bank of China Limited No.69 Jianguomen Inner Street, Dongcheng District, Beijing — An Liwei 010-85109045 Industrial and Commercial Bank of China Limited No. 55, Fuxingmennei Street, Xicheng District, Beijing — Chen Gang 010-66104321 China Construction Bank Corporation Limited No. 25, Finance Avenue, Xicheng District, Beijing — Li Guoliang 010-67595447 China Merchants Bank Co., Ltd. China Merchants Bank Tower, No. 7,088 Shennan Avenue, Shenzhen — Li Xueqi 027-83324168 Bank of Communications Company Limited No. 188, Yincheng Middle Road, Pudong New Area, Shanghai — Xu Chen 021-20588324 2021 Annual Report 93 / 292 PingAn Bank Co., Ltd. 25/F, Ping An Financial Building, No. 1333 Lujiazui Ring Road, Pudong New Area, Shanghai — Le Xiuxin 021-809638 China Postal Savings Bank Co., Ltd. No. 3, Finance Avenue, Xicheng District, Beijing — Wu Peng 010-68857392 China Everbright Bank Co., Ltd. China Everbright Centre, No.25 Taipingqiao Street, Xicheng District, Beijing — Huang Junlin 010-63637027 Export-Import Bank of China Tower C, Chemsunny World Trade Center, No. 30, Fuxingmennei Street, Xicheng District, Beijing — Liu Zhibo 010-83578719 Beijing DeHeng Law Offices 12/F, Block B, Fukai Building, No. 19 Financial Street, Xicheng District, Beijing — Yang Xinghui 010-52682875 ShineWing Certified Public Accountants LLP 9/F, Block A, Fu Hua Mansion, No. 8, Chaoyangmen Beidajie, Dongcheng District, Beijing Zhan Jun and Qiu Xin Qiu Xin 010-65542288 China Chengxin International Credit Rating Co., Ltd. 60101, Building 1, No.2 Nanhugan Hutong, Dongcheng District, Beijing — Li Junyan 010-66428877 Changes in the above intermediaries □ Applicable √ Inapplicable 4. Use of raised funds at the end of the reporting period √ Applicable □ Inapplicable Unit: yuan Currency: RMB Name of bond Total raised funds Amount used Unuse d amoun t Operatio n of the special account for raised funds (if any) Rectificatio n of irregular use of raised funds (if any) Complianc e of actual use of raised funds with the committed use, use plan and other agreement of fundraising 2021 Annual Report 94 / 292 instructions . 2015 Medium-term Notes (First Issue) of China Yangtze Power Co., Ltd. 3,000,000,00 0 3,000,000,00 0 0 N/A N/A Yes 2018 Medium-term Notes (First Issue) of China Yangtze Power Co., Ltd. 2,000,000,00 0 2,000,000,00 0 0 N/A N/A Yes 2019 Medium-term Notes (First Issue) of China Yangtze Power Co., Ltd. 3,000,000,00 0 3,000,000,00 0 0 N/A N/A Yes 2019 Medium-term Notes (Second Issue) of China Yangtze Power Co., Ltd. 2,000,000,00 0 2,000,000,00 0 0 N/A N/A Yes 2020 Medium-term Notes (First Issue) of China Yangtze Power Co., Ltd. (epidemic prevention and control bond) 2,500,000,00 0 2,500,000,00 0 0 N/A N/A Yes 2020 Medium-term Notes (Second Issue) of China Yangtze Power Co., Ltd. 2,500,000,00 0 2,500,000,00 0 0 N/A N/A Yes 2021 Short-term Commercial Papers (First Issue) of China Yangtze Power Co., Ltd. 2,500,000,00 0 2,500,000,00 0 0 N/A N/A Yes 2021 Short-term Commercial Papers (Second Issue) of China Yangtze Power Co., Ltd. 2,000,000,00 0 2,000,000,00 0 0 N/A N/A Yes 2021 Medium-term Notes (First Issue) of China Yangtze Power Co., Ltd. 2,500,000,00 0 2,500,000,00 0 0 N/A N/A Yes 2021 Medium-term Notes (Second Issue) (Sustainability-linked ) of China Yangtze Power Co., Ltd. 1,000,000,00 0 1,000,000,00 0 0 N/A N/A Yes The progress and operational benefits of using raised funds for construction projects □ Applicable √ Inapplicable Description of changing the use of the above-mentioned bond during the reporting period □ Applicable √ Inapplicable Other descriptions □ Applicable √ Inapplicable 2021 Annual Report 95 / 292 5. Adjustment of credit rating results □ Applicable √ Inapplicable Other descriptions □ Applicable √ Inapplicable 6. Implementation and change of guarantee, debt repayment plan and other debt paying guarantee measures during the reporting period and their impact □ Applicable √ Inapplicable 7. Other information of debt financing instrument for non-financial enterprises □ Applicable √ Inapplicable (IV) The Loss within the Scope of Consolidated Statements of the Company during the Reporting Period Exceeds 10% of the Net Assets at the End of the Previous Year □ Applicable √ Inapplicable (V) The Overdue Status of Interest-bearing Debts Except for Bonds at the End of the Reporting Period □ Applicable √ Inapplicable (VI) The Impact on the Equity of Bond Investors in Violation of the Provisions in the Laws and Regulations, the Articles of Association of the Company, and the Management System for Information Disclosure, as well as the Circumstances Agreed or Promised in the Bond Prospectus during the Reporting Period □ Applicable √ Inapplicable (VII) The Company’s Accounting Data and Financial Indexes in the Latest Two Years as of the End of the Reporting Period √ Applicable □ Inapplicable Unit: yuan Currency: RMB Major indexes 2021 2020 More or less of the current period over last year (%) Net profit after deducting non-recurring profits and losses 24,141,419,619.03 26,175,647,473.85 -7.77 Liquidity ratio 0.34 0.19 78.95 Quick ratio 0.33 0.18 83.33 Assets-liabilities ratio (%) 42.08 46.10 -8.72 EBITDA-total debts ratio 2.84 3.10 -8.39 Times of interest earned 7.75 7.28 6.46 Times of cash interest earned 9.67 10.09 -4.16 EBITDA interest protection multiples 10.14 9.53 6.40 Loan repayment rate (%) 100 100 0.00 Interest coverage rate (%) 100 100 0.00 II. Convertible Corporate Bond □ Applicable √ Inapplicable 2021 Annual Report 96 / 292 Section X Financial Report Auditor’s Report XYZH/2022BJAA30825 To All the Shareholders of China Yangtze Power Co., Ltd.: I. Auditor’s Opinion We have audited the financial statements of China Yangtze Power Co., Ltd. (hereinafter referred to as CYPC or the Company), including Consolidated and Parent Company's Balance Sheets dated December 31, 2021, and the Consolidated and Parent Company's Income Statements, Consolidated and Parent Company's Cash Flow Statements, Consolidated and Parent Company's Statements of Changes in Shareholders' Equity of the year 2021, and Notes to the Financial Statements. In our opinion, the attached financial statements present fairly, in all material respects, the consolidated and parent company’s financial positions of CYPC as of December 31, 2021, and its consolidated and parent company’s financial performance and cash flows for the year then ended in accordance with the Accounting Standards for Business Enterprises. II. Basis for Auditor's Opinion We conducted the audit in accordance with the Auditing Standards for Certified Public Accountants of China. Besides, we perform additional steps to meet the requirements of ISA (International Standards on Auditing) 550 in full. The section in the auditor’s report titled “CPAs’ Responsibilities for the Audit of the Financial Statements” further describes our responsibilities under these standards. We conduct our audit independent of CYPC in accordance with the China Code of Ethics for Certified Public Accountants and fulfill other responsibilities in ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for the auditor’s opinion. 2021 Annual Report 97 / 292 III. Key Audit Matters The key audit matters are the most important matters to audit the financial statements in the current period in our opinion according to professional judgment. These matters are addressed by auditing the financial statements integrally and forming the audit opinion. We do not declare a separate opinion on these matters. Accuracy of operating costs Key Audit Matters How the matter was addressed in the audit As described in Note VI. 35 to the consolidated financial statements, the Company incurred operating costs totaling RMB 21.113 billion in the fiscal year 2021, representing 65.15% of the total profit, consisting primarily of depreciation expense on fixed assets used in production, fiscal fees, etc., and such amounts are material to the financial statements; For all the reasons above, we listed the accuracy of the operating cost as the key audit matter. The main audit procedures executed: --Field observation and monitoring of important fixed assets for production; --Check the accuracy of the amount such as depreciation of fixed assets and financial fees included in the operating cost with methods such as re-calculation; --Analyze the reasonableness of the operating costs of the current year by adopting the method of analytical review, considering the audits of fixed assets, construction in progress and other accounts. Impairment assessment of goodwill and intangible assets Key Audit Matters How the matter was addressed in the audit As described in Notes VI. 15 and 16 to the consolidated financial statements, on April 24, 2020, the Company acquired 100% of the equity interest in Sempra Americas Bermuda Ltd. (now Andes Bermuda Ltd., hereinafter referred to as "AB") and Peruvian Opportunity Company S.A.C. (hereinafter referred to as "POC") (hereinafter collectively referred to as "Peruvian Companies") with consideration of RMB 3,602 million. As of December 31, 2021, the goodwill of approximately RMB 987 million arose from this acquisition and approximately RMB 19,833 million transmission The main audit procedures executed: -- To understand, test, and evaluate the effectiveness of management's design and operation of key internal controls related to the impairment of goodwill and intangible assets; -- Evaluate the objectivity, independence and professional competence of third-party intermediaries engaged by the Company; -- To review the judgment and analysis of third-party institutions on indicators of impairment of goodwill and intangible assets; -- To review the underlying data, key 2021 Annual Report 98 / 292 and distribution business concessions were identified, the Company has engaged a third-party intermediary to perform an impairment assessment on the goodwill and transmission and distribution business concessions. The impairment assessment involves valuation parameters determining discount rates and assumptions about future years' operating and financial conditions, including revenue growth rates and EBITDA margin (earnings before interest, tax, depreciation and amortization) for future years. The rationality of the above parameters and assumptions has a significant impact on the impairment assessment results of goodwill and intangible assets and involves the accounting estimations and judgments of the management. Based on the above reasons, we included the impairment assessment of goodwill and intangible assets as a key audit matter. assumptions, parameters, and other factors adopted in the assessment and evaluate the appropriateness of the results; -- To review the adequacy of relevant disclosures in the financial statements. IV. Other Information The management of CYPC (hereinafter referred to as management) is responsible for other information. Other information includes information covered in 2021 Annual Report of CYPC, except the financial statements and our auditor’s report. Our audit opinion on the financial statements does not include other information, and we neither express any form of authentication opinion for other information. Based on our audit of the financial statements, our responsibility is to consider whether other information has material inconsistency or seems to have material misstatement with the financial statements or circumstance that we know during audit while reading other information. Based on the work that we have executed, we should report the fact in case of determining the material misstatement of other information. In this regard, we have nothing to report. 2021 Annual Report 99 / 292 V. Responsibilities of the Management and the Governance for the Financial Statements The management is responsible for the preparation and fair presentation of the financial statements in accordance with the Accounting Standards for Business Enterprises, and the maintenance and preservation of such internal controls as management deems necessary to enable the preparation of financial statements free from material misstatement, whether due to fraud or error. In preparation of the financial statement, the management is responsible for assessing CYPC’s sustainable operation ability, disclosing the sustainable operation related items (if applicable) and applying sustainable operation assumptions, unless otherwise the management plans to liquidate CYPC, stop operation or it has no other practical choice. The governance is responsible for supervising CYPC’s financial reporting process. VI. CPAs’ Responsibilities for the Audit of the Financial Statements Our objective is to obtain reasonable assurance as to whether the financial statements as a whole are free from material misstatement caused by fraud or error, and to issue an auditor's report containing our opinion. Reasonable assurance is high-level assurance, but it does not guarantee that a material misstatement will always be detected in an audit performed in accordance with auditing standards when it exists. Misstatements may arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions users would make on the basis of these financial statements. We exercised professional judgment and maintained professional skepticism in performing our audit in accordance with Auditing Standards. At the same time, we also carried out the following work: (1) Identify and assess the risks of material misstatements of the financial statements due to fraud or error, design and perform audit procedures in response to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of failing to detect a material misstatement due to fraud is higher than that of failing to detect a material misstatement resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or overriding of internal control. (2) Understand audit-related internal control in order to design appropriate audit procedures, but not for the purpose of expressing opinions on the effectiveness of internal control. 2021 Annual Report 100 / 292 (3) Evaluate the appropriateness of the Management's selection of accounting policies and the rationality of accounting estimates as well as related disclosures. (4) Conclude on the appropriateness of the management’s use of the going concern basis of accounting and, Meanwhile, we can conclude whether major uncertainty exists in items or circumstances, causing substantial doubts to the sustainable operation ability of CYPC in accordance with the audit evidence we have acquired. If we conclude that a material uncertainty exists, auditing standards require us to draw attention to users of the financial statements in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on information available as of the date of the auditor's report. However, future items or circumstances may cause that CYPC is not sustainable. (5) Evaluate the overall presentation, structure and content of the financial statements, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. (6) Obtain the sufficient and appropriate audit evidence with regard to the financial information of entity or business activity in CYPC, to express the opinion on the financial statements. We are responsible for guiding, supervising and performing the audit of the Group, and assume all responsibilities for our opinion. We have communicated with the Governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We have made statements to the governance as per the occupational ethnic requirements related to independence and communicate with the governance about all relations and other matters that can be reasonably considered to affect our independence as well as relevant precautionary measures (if applicable). We have determined which matters are the most important to audit the financial statement in the current period from the matter which has been communicated with the Governance, therefore, these matters form the key audit matters. We have described these matters in the auditor’s report, except that they are prohibited from being publicly disclosed as per the laws and regulations, or in the rare cases, if a negative result that may be caused by communicating some matter in the auditor’s report as reasonably expected exceeds the benefit generated by the public interest, we determine not to communicate such matter in the auditor’s report. 2021 Annual Report 101 / 292 ShineWing Certified Public Accountants LLP China Certified Public Accountant: LIANG Zhigang(Engagement Partner) China Certified Public Accountant: YAN Huan China Beijing April 28, 2022 2021 Annual Report 102 / 292 Financial Statements Consolidated Balance Sheet December 31, 2021 Prepared by: China Yangtze Power Co., Ltd. Unit: yuan Currency: RMB Item Notes December 31, 2021 December 31, 2020 Current assets: Cash and bank balances VI. 1 9,929,980,061.69 9,231,213,791.79 Settlement reserves Loans to banks and other financial institutions Held-for-trading financial assets Derivative financial assets Notes receivable 524,640.21 17,673,000.00 Accounts receivable VI. 2 3,768,258,804.36 3,650,048,602.74 Receivables financing Advances to suppliers VI. 3 93,606,544.48 48,859,512.50 Premiums receivable Reinsurance premium receivable Reinsurance contract provision receivable Other receivables VI. 4 628,719,306.50 497,300,115.36 Including: interest receivable Dividends receivable 55,028,400.00 45,473,100.00 Financial assets purchased under agreements to resell Inventories VI. 5 470,031,320.31 282,060,444.83 Contractual assets Held-for-sale assets Current portion of non-current assets Other current assets VI. 6 3,032,334,387.33 948,456,661.57 Total current assets 17,923,455,064.88 14,675,612,128.79 Non-current assets: Offering loans and advances in cash Debt investments VI. 7 1,014,594,368.22 1,139,169,084.08 Other debt investments Long-term receivables Long-term equity investments VI. 8 60,716,844,608.70 50,424,131,310.62 Other equity instrument investments VI. 9 3,457,356,904.37 3,609,195,163.56 Other non-current financial assets VI. 10 1,622,160,091.31 4,713,666,463.26 Investment properties VI. 11 113,822,846.75 125,275,104.17 Fixed assets VI. 12 218,712,613,101.63 231,119,863,354.48 2021 Annual Report 103 / 292 Construction in progress VI. 13 2,891,576,923.64 2,993,468,500.20 Bearer biological assets Oil and gas assets Right-of-use assets VI. 14 637,016,483.14 Intangible assets VI. 15 20,181,419,977.24 20,614,325,419.64 Development expenditures Goodwill VI. 16 987,246,902.63 1,010,349,814.92 Long-term prepaid expenses 47,615,228.81 1,205,923.35 Deferred income tax assets VI. 17 241,972,703.05 385,247,857.13 Other non-current assets 15,586,434.83 15,586,434.83 Total non-current assets 310,639,826,574.32 316,151,484,430.24 Total assets 328,563,281,639.20 330,827,096,559.03 Current liabilities: Short-term borrowings VI. 18 12,315,812,640.00 24,057,628,342.50 Borrowings from the central bank Placements from banks and other financial institutions Financial liabilities held for trading VI. 19 640,897,029.23 Derivative financial liabilities Notes payable 11,199,405.85 26,658,209.68 Accounts payable VI. 20 682,732,769.54 867,671,236.16 Advances from customers 33,980,139.67 Contract liabilities 13,389,470.26 48,910.52 Financial assets sold under agreements to repurchase Customer bank deposits and due to banks and other financial institutions Customer deposits for securities trading Customer deposits for securities underwriting Employee compensation payable VI. 21 254,195,056.07 219,231,174.29 Taxes payable VI. 22 4,716,410,703.94 4,235,444,499.44 Other payables VI. 23 13,470,287,522.53 16,960,189,786.68 Including: interest payable 1,022,278,878.81 1,091,987,201.14 Dividends payable 27,118,308.84 36,473,316.08 Fees and commissions payable Reinsurance amounts payable Held-for-sale liabilities Current portion of non-current liabilities VI. 24 17,440,128,682.74 23,924,325,034.79 Other current liabilities VI. 25 4,502,059,923.29 7,500,533,260.58 Total current liabilities 53,406,216,174.22 78,466,607,623.54 Non-current liabilities: Insurance contract reserves Long-term borrowings VI. 26 36,439,373,166.26 14,447,141,791.44 Bonds payable VI. 27 33,978,897,510.99 37,527,057,075.03 2021 Annual Report 104 / 292 Including: Preferred shares Perpetual bonds Lease liabilities VI. 28 639,176,461.52 Long-term payables VI. 29 11,855,875,004.42 20,080,756,020.71 Long-term payroll payable Estimated liabilities 18,434,099.44 16,245,669.92 Deferred incomes 5,903,248.03 7,276,220.13 Deferred income tax liabilities VI. 17 1,931,183,085.62 1,960,405,682.52 Other non-current liabilities Total non-current liabilities 84,868,842,576.28 74,038,882,459.75 Total liabilities 138,275,058,750.50 152,505,490,083.29 Shareholders’ equity: Share capital VI. 30 22,741,859,230.00 22,741,859,230.00 Other equity instruments Including: Preferred shares Perpetual bonds Capital reserve VI. 31 56,915,340,256.97 56,928,124,174.94 Less: Treasury stocks Other comprehensive income VI. 32 318,915,804.42 313,556,807.71 Special reserve Surplus reserve VI. 33 24,319,522,433.93 24,319,522,433.93 General risk reserve Undistributed profits VI. 34 76,768,181,760.95 67,815,084,345.02 Total shareholders' equity attributable to parent company 181,063,819,486.27 172,118,146,991.60 Minority interests 9,224,403,402.43 6,203,459,484.14 Total shareholders’ equity 190,288,222,888.70 178,321,606,475.74 Total liabilities and shareholders’ equity 328,563,281,639.20 330,827,096,559.03 Legal Representative: Lei Mingshan Chief Financial Officer: Zhan Pingyuan Accounting Manager: Zhang Na Balance Sheet of Parent Company December 31, 2021 Prepared by: China Yangtze Power Co., Ltd. Unit: yuan Currency: RMB Item Notes December 31, 2021 December 31, 2020 Current assets: Cash and bank balances 7,002,485,878.73 3,978,908,570.72 Held-for-trading financial assets Derivative financial assets Notes receivable 16,800,000.00 Accounts receivable XVI. 1 1,525,800,124.22 1,681,426,962.93 Receivables financing 2021 Annual Report 105 / 292 Advances to suppliers 71,735,485.97 21,721,249.03 Other receivables XVI. 2 5,189,895,851.59 382,249,508.06 Including: interest receivable Dividends receivable 4,699,458,155.29 45,473,100.00 Inventories 203,484,657.44 148,625,915.93 Contractual assets Held-for-sale assets Current portion of non-current assets Other current assets 2,764,660,225.64 400,005,769.04 Total current assets 16,758,062,223.59 6,629,737,975.71 Non-current assets: Debt investments Other debt investments Long-term receivables Long-term equity investments XVI. 3 114,959,841,455.93 103,001,611,185.89 Other equity instrument investments 2,880,249,003.37 3,217,073,876.83 Other non-current financial assets 3,535,850,527.86 Investment properties 25,367,893.37 26,460,352.37 Fixed assets 87,441,220,906.55 91,912,217,948.12 Construction in progress 554,016,405.80 464,366,936.37 Bearer biological assets Oil and gas assets Right-of-use assets 627,450,963.12 Intangible assets 215,737,666.01 195,210,484.09 Development expenditures Goodwill Long-term prepaid expenses 46,852,291.35 Deferred income tax assets 54,093,268.78 73,320,614.32 Other non-current assets 15,586,434.83 15,586,434.83 Total non-current assets 206,820,416,289.11 202,441,698,360.68 Total Assets 223,578,478,512.70 209,071,436,336.39 Current liabilities: Short-term borrowings 6,200,000,000.00 10,850,000,000.00 Financial liabilities held for trading Derivative financial liabilities Notes payable 11,199,405.85 25,618,826.08 Accounts payable 43,773,051.97 42,133,196.84 Advances from customers 8,788,393.38 Contract liabilities Employee compensation payable 103,071,877.52 82,124,919.31 Taxes payable 3,155,919,191.32 2,689,038,478.78 Other payables 1,586,637,370.63 1,627,706,272.34 Including: interest payable 905,763,803.99 902,865,871.52 Dividends payable Held-for-sale liabilities Current portion of non-current liabilities 17,041,860,023.07 20,453,152,452.60 2021 Annual Report 106 / 292 Other current liabilities 4,501,867,149.11 7,500,526,902.22 Total current liabilities 32,644,328,069.47 43,279,089,441.55 Non-current liabilities: Long-term borrowings 29,999,200,000.00 7,000,000,000.00 Bonds payable 31,949,506,170.99 34,948,377,070.45 Including: Preferred shares Perpetual bonds Lease liabilities 599,098,301.21 Long-term payables Long-term payroll payable Estimated liabilities Deferred incomes Deferred income tax liabilities 667,787,306.29 715,444,884.34 Other non-current liabilities Total non-current liabilities 63,215,591,778.49 42,663,821,954.79 Total liabilities 95,859,919,847.96 85,942,911,396.34 Shareholders’ equity: Share capital 22,741,859,230.00 22,741,859,230.00 Other equity instruments Including: Preferred shares Perpetual bonds Capital reserve 59,517,335,828.17 59,502,183,193.81 Less: Treasury stocks Other comprehensive income 2,087,397,686.80 1,820,853,213.49 Special reserve Surplus reserve 22,934,762,401.97 22,934,762,401.97 Undistributed profits 20,437,203,517.80 16,128,866,900.78 Total shareholders’ equity 127,718,558,664.74 123,128,524,940.05 Total liabilities and shareholders’ equity 223,578,478,512.70 209,071,436,336.39 Legal Representative: Lei Mingshan Chief Financial Officer: Zhan Pingyuan Accounting Manager: Zhang Na Consolidated Income Statement 2021 Prepared by: China Yangtze Power Co., Ltd. Unit: yuan Currency: RMB Items Notes 2021 2020 I. Total Operating Revenue 55,646,253,991.83 57,783,367,039.83 Including: operating revenue VI. 35 55,646,253,991.83 57,783,367,039.83 Interest incomes Earned premiums Fees and commissions income II. Total Operating Cost 28,577,669,866.81 28,776,077,425.53 Including: operating cost VI. 35 21,113,077,634.36 21,149,454,266.44 Interest expenses Fees and commissions expenses Cash surrender amount 2021 Annual Report 107 / 292 Net payments for insurance claims Net provision for insurance contract reserves Policy dividend expenses Reinsurance expenses Taxes and surcharges VI. 36 1,163,620,190.60 1,192,929,347.63 Selling and distribution expenses VI. 37 150,419,652.08 115,417,318.42 General and administrative expenses VI. 38 1,359,765,980.97 1,292,798,651.45 R&D expenses VI. 39 39,416,834.88 39,568,009.51 Finance costs VI. 40 4,751,369,573.92 4,985,909,832.08 Including: interest expenses 4,802,658,407.18 5,166,955,172.60 Interest incomes 117,069,848.87 100,213,191.69 Add: Other incomes VI. 41 3,874,035.47 5,886,834.66 Investment income (loss to be listed with “-”) VI. 42 5,425,670,105.27 4,052,756,076.57 Including: Income from investment in associates and joint ventures 2,801,782,313.06 3,182,977,402.41 Revenue from derecognize of financial assets at amortized cost Exchange income (loss to be listed with “-”) Net exposure hedging income (loss to be listed with “-”) Profit arising from changes in fair value (loss expressed with "-") VI. 43 335,482,723.94 -172,887,058.21 Credit impairment loss (loss to be listed with “-”) VI. 44 -11,731,842.75 -1,492,867.05 Asset impairment loss (loss to be listed with "-") VI. 45 40,383,396.92 -17,737,932.85 Income of asset disposal (loss to be listed with “-”) VI. 46 13,911,487.71 22,038,670.15 III. Operating Profit (loss to be listed with "-") 32,876,174,031.58 32,895,853,337.57 Add: Non-operating incomes VI. 47 30,301,675.23 50,968,275.16 Less: Non-operating expenses VI. 48 497,131,532.13 491,280,818.61 IV. Total Profit (total loss to be listed with "-") 32,409,344,174.68 32,455,540,794.12 Less: Income tax expenses VI. 49 5,923,900,313.19 5,949,278,995.30 V. Net Profit (net loss to be listed with “-”) 26,485,443,861.49 26,506,261,798.82 (I) Classified according to operating continuity 1. Net profit from continuing operations (net loss to be listed with “-”) 26,485,443,861.49 26,506,261,798.82 2. Net profit from discontinuing operations (net loss to be listed with “-”) (II) Classified according to attribution of the ownership 1. Net profit attributable to owners of the parent company (net losses to be listed with “-”) 26,272,998,503.24 26,297,890,222.70 2. Minority shareholder's profits 212,445,358.25 208,371,576.12 2021 Annual Report 108 / 292 and losses (net loss to be listed with “-”) VI. Net of Tax of Other Comprehensive Income VI. 50 -420,356,680.26 -2,342,891,062.80 Other net after-tax comprehensive income attributable to the owner of the parent company -281,012,853.85 -2,034,622,149.75 (I) Other comprehensive income not to be reclassified into profits or losses 90,422,060.48 -618,339,810.10 1. Changes arising from re-measurement of the defined benefit plan 2. Other comprehensive incomes that cannot be reclassified into profits or losses under the equity method 215,172,334.71 2,747,070.92 3. Changes in fair value of other equity instrument investments -124,750,274.23 -621,086,881.02 4. Changes in fair value of the enterprise’s credit risk 5. Others (II) Other comprehensive income to be reclassified into profits or losses -371,434,914.33 -1,416,282,339.65 1. Other comprehensive income to be transferred into profit or loss under the equity method 64,315,949.96 -151,969,944.28 2. Changes in fair value of other debt investment 3. The amount of financial assets reclassified into other comprehensive incomes 4. Provision for impairment of credit in other debt investment 5. Reserves for cash flow hedge (effective parts of cash flow hedging profit or loss) 6. Translation difference of foreign currency financial statements -435,750,864.29 -1,264,312,395.37 7. Others Net of tax of other comprehensive income attributable to minority shareholders -139,343,826.41 -308,268,913.05 VII. Total Comprehensive Income 26,065,087,181.23 24,163,370,736.02 Total comprehensive incomes attributable to shareholders of the parent company 25,991,985,649.39 24,263,268,072.95 Total comprehensive incomes attributable to minority shareholders 73,101,531.84 -99,897,336.93 VIII. Earnings per Share: (I) Basic earnings per share (RMB/share) 1.1553 1.1853 (II) Diluted earnings per share (RMB/share) 1.1553 1.1853 2021 Annual Report 109 / 292 Amongst business combination under common control in the current period, the net profit realized by the mergee prior to the combination is：0 yuan (previous year: 0) Legal Representative: Lei Mingshan Chief Financial Officer: Zhan Pingyuan Accounting Manager: Zhang Na Income Statement of the Parent Company 2021 Prepared by: China Yangtze Power Co., Ltd. Unit: yuan Currency: RMB Items Notes 2021 2020 I. Operating income XVI. 4 27,652,551,080.97 28,904,856,391.56 Less: Operating cost XVI. 4 8,841,065,102.39 8,931,263,633.65 Taxes and surcharges 471,425,275.87 455,436,526.45 Selling and distribution expenses 20,908,837.95 15,935,883.90 General and administrative expenses 677,195,961.45 640,685,662.72 R&D expenses 38,778,371.83 27,873,504.45 Finance costs 3,227,047,752.11 2,997,856,378.73 Including: interest expenses 3,288,985,829.44 3,042,612,320.94 Interest incomes 58,572,594.85 46,510,946.37 Add: Other incomes 2,135,953.86 3,213,340.84 Investment income (loss to be listed with “-”) XVI. 5 9,599,771,328.66 3,739,463,466.11 Including: Income from investment in associates and joint ventures 2,612,071,186.00 3,072,615,088.68 Revenue from derecognize of financial assets at amortized cost Net exposure hedging income (loss to be listed with “-”) Profit arising from changes in fair value (loss expressed with "-") -209,840,546.90 Credit impairment loss (loss to be listed with “-”) -124,816.41 -350,732.57 Asset impairment loss (loss to be listed with "-") 22,754,191.25 2,874,293.16 Income of asset disposal (loss to be listed with “-”) 14,323,190.45 22,067,694.01 II. Operating Profit(loss to be listed with “-”) 24,014,989,627.18 19,393,232,316.31 Add: Non-operating incomes 29,604,402.57 50,769,195.13 Less: Non-operating expenses 242,285,663.14 203,146,732.61 III. Total Profit(total loss to be listed with “-”) 23,802,308,366.61 19,240,854,778.83 Less: Income tax expenses 3,767,610,766.03 3,885,963,636.63 IV. Net Profit(net loss to be listed with “-”) 20,034,697,600.58 15,354,891,142.20 (I) Net profit from going concern 20,034,697,600.58 15,354,891,142.20 2021 Annual Report 110 / 292 (net loss to be listed with “-”) (II) Net profit from discontinuing operations (net loss to be listed with “-”) V. Net of tax of other comprehensive income -20,207,390.55 -679,063,249.48 (I) Other comprehensive income not to be reclassified into profits or losses -73,014,123.15 -518,292,306.81 1. Changes arising from re-measurement of the defined benefit plan 2. Other comprehensive incomes that cannot be reclassified into profits or losses under the equity method 210,427,223.37 3,356,909.21 3. Changes in fair value of other equity instrument investments -283,441,346.52 -521,649,216.02 4. Changes in fair value of the enterprise’s credit risk 5. Others (II) Other comprehensive income to be reclassified into profits or losses 52,806,732.60 -160,770,942.67 1. Other comprehensive income to be transferred into profit or loss under the equity method 52,806,732.60 -160,770,942.67 2. Changes in fair value of other debt investment 3. The amount of financial assets reclassified into other comprehensive incomes 4. Provision for impairment of credit in other debt investment 5. Reserves for cash flow hedge (effective parts of cash flow hedging profit or loss) 6. Translation difference of foreign currency financial statements 7. Others VI. Total comprehensive incomes 20,014,490,210.03 14,675,827,892.72 Legal Representative: Lei Mingshan Chief Financial Officer: Zhan Pingyuan Accounting Manager: Zhang Na Consolidated Cash Flow Statement 2021 Prepared by: China Yangtze Power Co., Ltd. Unit: yuan Currency: RMB Item Notes 2021 2020 I. Cash flows from operating activities: Cash received from sales of goods or rendering of services 62,861,271,803.49 65,699,895,013.35 Net increase in deposits and placements from financial institutions 2021 Annual Report 111 / 292 Net increase in due to central banks Net increase in placement from other financial institutions Cash received for receiving premium of original insurance contract Net cash received from reinsurance business Net increase in deposits of the insured and investment Cash received from interests, fees and commissions Net increase in placements from banks and other financial institutions Net increase in repurchasing Net cash received from securities brokering Refunds of taxes and surcharges received Cash received relating to other operating activities VI. 51 701,153,868.69 528,865,293.99 Sub-total of cash inflows from operating activities 63,562,425,672.18 66,228,760,307.34 Cash paid for goods and services 11,095,390,713.22 9,499,436,962.27 Net increase in loans and advances Net increase in deposits in the central bank and other financial institutions Cash paid for claim settlements on original insurance contract Net increase in loans to banks and other financial institutions Cash paid for interests, fees and commissions Cash paid for policy dividends Cash paid to and for employees 2,803,197,556.38 2,610,978,872.63 Taxes and surcharges paid 13,123,193,534.72 12,180,759,493.47 Cash paid relating to other operating activities VI. 51 808,182,134.60 900,720,578.57 Sub-total of cash outflows for operating activities 27,829,963,938.92 25,191,895,906.94 Net cash flows from operating activities 35,732,461,733.26 41,036,864,400.40 II. Cash flows from investing activities: Cash received from investment recovery 140,253,288,981.75 91,515,324,035.50 Cash received from investment income 1,973,990,756.86 1,588,089,130.39 Net cash received from disposal of fixed assets, intangible assets and other long-term assets 22,040,168.08 11,688,319.11 Net cash received from disposal of subsidiaries and other business entities Other cash received concerning 2021 Annual Report 112 / 292 investing activities Sub-total of cash inflows from investing activities 142,249,319,906.69 93,115,101,485.00 Cash paid for purchasing fixed assets, intangible assets and other long-term assets 3,473,877,431.53 3,627,862,822.44 Cash paid for investment 145,340,651,877.96 101,333,734,312.21 Net increase in pledge loans Net payment for the acquisition of subsidiaries and other business units 24,000,543,409.77 Other cash payments related to investing activities VI. 51 190,217,371.81 Sub-total of cash outflows for investing activities 148,814,529,309.49 129,152,357,916.23 Net cash flows from operating activities -6,565,209,402.80 -36,037,256,431.23 III. Cash flow generated in financing activities: Cash received from absorbing investment 155,000,000.00 14,931,906,615.82 Including: cash received by subsidiaries' absorbing investments from minority shareholders 155,000,000.00 1,476,545,673.69 Cash received from borrowings 78,053,784,848.58 99,092,695,765.97 Other cash received relating to financing activities VI. 51 1,160,432,406.00 5,974,723,001.24 Sub-total of cash inflows from financing activities 79,369,217,254.58 119,999,325,383.03 Cash paid for repayment of debts 80,388,318,465.26 95,990,337,350.22 Cash paid for the distribution of dividends, profits or interests 20,007,782,816.36 19,291,552,358.96 Including: distribution of dividends, profit to minority shareholders by subsidiaries 27,100,257.89 108,579,541.22 Other cash payments related to financing activities VI. 51 7,353,856,997.34 7,724,761,705.94 Sub-total of cash outflows for financing activities 107,749,958,278.96 123,006,651,415.12 Net cash flows from financing activities -28,380,741,024.38 -3,007,326,032.09 IV. Effects from Change of Exchange Rate on Cash and Cash Equivalents -85,945,498.20 -86,009,125.31 V. Net Increase in Cash and Cash Equivalents VI. 51 700,565,807.88 1,906,272,811.77 Add: Beginning balance of cash and cash equivalents VI. 51 9,224,213,791.79 7,317,940,980.02 VI. Ending Balance of Cash and Cash Equivalents VI. 51 9,924,779,599.67 9,224,213,791.79 Legal Representative: Lei Mingshan Chief Financial Officer: Zhan Pingyuan Accounting Manager: Zhang Na 2021 Annual Report 113 / 292 Cash Flow Stateme nt of the Pare nt Company 2021 Prepared by: China Yangtze Power Co., Ltd. Unit: yuan Currency: RMB Item Notes 2021 2020 I. Cash flows from operating activities: Cash received from sales of goods or rendering of services 31,193,865,969.72 32,127,048,335.16 Refunds of taxes and surcharges received Cash received relating to other operating activities 208,877,548.33 173,211,165.88 Sub-total of cash inflows from operating activities 31,402,743,518.05 32,300,259,501.04 Cash paid for goods and services 3,067,455,979.60 3,218,720,948.02 Cash paid to and for employees 1,642,512,828.08 1,466,666,561.48 Taxes and surcharges paid 7,193,187,138.25 6,177,649,094.80 Cash paid relating to other operating activities 467,575,677.81 410,422,370.54 Sub-total of cash outflows for operating activities 12,370,731,623.74 11,273,458,974.84 Net cash flows from operating activities 19,032,011,894.31 21,026,800,526.20 II. Cash flows from investing activities: Cash received from investment recovery 57,504,637,386.36 80,987,493,485.00 Cash received from investment income 1,777,346,294.15 1,368,418,342.85 Net cash received from disposal of fixed assets, intangible assets and other long-term assets 16,979,585.78 11,688,319.11 Net cash received from disposal of subsidiaries and other business entities Other cash received concerning investing activities Sub-total of cash inflows from investing activities 59,298,963,266.29 82,367,600,146.96 Cash paid for purchasing fixed assets, intangible assets and other long-term assets 591,518,456.59 633,486,211.31 Cash paid for investment 64,329,707,776.51 105,645,041,990.10 Net payment for the acquisition of subsidiaries and other business units Other cash payments related to investing activities Sub-total of cash outflows for investing activities 64,921,226,233.10 106,278,528,201.41 Net cash flows from operating activities -5,622,262,966.81 -23,910,928,054.45 III. Cash flow generated in financing activities: Cash received from absorbing investment 13,305,360,942.13 2021 Annual Report 114 / 292 Cash received from borrowings 55,699,160,000.00 43,516,491,323.20 Other cash received relating to financing activities Sub-total of cash inflows from financing activities 55,699,160,000.00 56,821,852,265.33 Cash paid for debt repayment 46,811,000,000.00 36,234,800,000.00 Cash paid for distributing dividends and profits or paying interests 19,174,579,734.92 17,937,278,417.40 Other cash payments related to financing activities 99,550,883.87 32,351,234.50 Sub-total of cash outflows for financing activities 66,085,130,618.79 54,204,429,651.90 Net cash flows from financing activities -10,385,970,618.79 2,617,422,613.43 IV. Effects from Change of Exchange Rate on Cash and Cash Equivalents -201,000.70 49,632,396.56 V. Net Increase in Cash and Cash Equivalents 3,023,577,308.01 -217,072,518.26 Add: Beginning balance of cash and cash equivalents 3,978,908,570.72 4,195,981,088.98 VI. Ending Balance of Cash and Cash Equivalents 7,002,485,878.73 3,978,908,570.72 Legal Representative: Lei Mingshan Chief Financial Officer: Zhan Pingyuan Accounting Manager: Zhang Na 2021 Annual Report 115 / 292 Consolidated Statement of Changes in Shareholders’ Equity 2021 Prepared by: China Yangtze Power Co., Ltd. Unit: yuan Currency: RMB Item 2021 Equity attributable to shareholders of the parent company Minority interests Shareholders Total equity Share capital Other equity instrument s Capital reserve L e s s : T r e a s u r y s t o c k s Other comprehensi ve income S p e c i a l r e s e r v e Surplus reserve G en er al ris ks Pr ep ar ati on s Undistribut ed profits Mis cell ane ous Sub-total P re fe rr e d s h ar es Pe rp et ua l bo nd s M i s c e l l a n e o u s I. Closing balance of the previous year 22,741,859,230.0 0 56,928,124,174.9 4 313,556,807.7 1 24,319,522,433.9 3 67,815,084,3 45.02 172,118,146,991.6 0 6,203,459,484.14 178,321,606,475. 74 Add: Changes in accounting policies 318,158,690.3 1 157,107,416. 85 475,266,107.16 -232,535.20 475,033,571.96 Correctio ns of early 2021 Annual Report 116 / 292 errors Business combination under common control Miscellan eous II. Opening balance of the current year 22,741,859,230.0 0 56,928,124,174.9 4 631,715,498.0 2 24,319,522,433.9 3 67,972,191,7 61.87 172,593,413,098.7 6 6,203,226,948.94 178,796,640,047. 70 III. Increase/Decr ease in the Current Year (decrease to be listed with “-”) -12,783,917.97 -312,799,693.6 0 8,795,989,99 9.08 8,470,406,387.51 3,021,176,453.49 11,491,582,841.0 0 (I) Total comprehensive income -281,012,853.8 5 26,272,998,5 03.24 25,991,985,649.39 73,101,531.84 26,065,087,181.2 3 (II) Capital invested and decreased by shareholders -23,176,767.67 -23,176,767.67 2,975,570,832.31 2,952,394,064.64 1. Ordinary shares input by shareholders 6,575,739,808.37 6,575,739,808.37 2. Contribution capital of holders of other equity instruments 3. Amounts of share-based payments recorded in owners' equity 4. Others -23,176,767.67 -23,176,767.67 -3,600,168,976.06 -3,623,345,743.73 2021 Annual Report 117 / 292 (III) Profit distribution -15,919,301, 461.00 -15,919,301,461.0 0 -27,990,962.24 -15,947,292,423.2 4 1. Appropriation to surplus reserves 2. Appropriation to general risk reserve 3. Distribution to shareholders -15,919,301, 461.00 -15,919,301,461.0 0 -27,990,962.24 -15,947,292,423.2 4 4. Others (IV) Internal carry-over in shareholder's equity -31,786,839.75 31,786,839.7 5 1. Capital reserve transferred to capital (or share capital) 2. Surplus reserves transferred to capital ( or share capital) 3. Surplus reserves to recover loss 4. Retained earnings carried forward from changes in defined benefit plan 5. Retained earnings carried over from other comprehensive -31,786,839.75 31,786,839.7 5 2021 Annual Report 118 / 292 income 6. Others (V) Special reserves 1. Appropriation in current year 2. Use in current year (VI) Others 10,392,849.70 -1,589,493,8 82.91 -1,579,101,033.21 495,051.58 -1,578,605,981.63 IV. Closing balance of the current year 22,741,859,230.0 0 56,915,340,256.9 7 318,915,804.4 2 24,319,522,433.9 3 76,768,181,7 60.95 181,063,819,486.2 7 9,224,403,402.43 190,288,222,888. 70 Item 2020 Equity attributable to shareholders of the parent company Minority interests Shareholders Total equity Share capital Other equity instruments Capital reserve L es s: Tr ea su ry st oc ks Other comprehensive income S p e c i a l r e s e r v e Surplus reserve Ge ner al ris ks Pr ep ara tio ns Undistributed profits M i s c e l l a n e o u s Sub-total Pr ef er re d sh ar es Pe rp et ua l bo nd s Mi sc el la ne ou s I. Closing balance of 22,000,000,000.00 44,364,313,786.27 2,352,431,567.60 24,319,522,433.93 56,473,906,836.25 149,510,174,624.05 505,791,900.93 150,015,966,524.98 2021 Annual Report 119 / 292 the previous year Add: Changes in accounting policies Corrections of early errors Business combinatio n under common control Miscellane ous II. Opening balance of the current year 22,000,000,000.00 44,364,313,786.27 2,352,431,567.60 24,319,522,433.93 56,473,906,836.25 149,510,174,624.05 505,791,900.93 150,015,966,524.98 III. Increase/D ecrease in the Current Year (decrease to be listed with “-”) 741,859,230.00 12,563,810,388.67 -2,038,874,759.89 11,341,177,508.77 22,607,972,367.55 5,697,667,583.21 28,305,639,950.76 (I) Total comprehens ive income -2,034,622,149.75 26,297,890,222.70 24,263,268,072.95 -99,897,336.93 24,163,370,736.02 (II) Capital invested and decreased by shareholder s 741,859,230.00 12,562,562,126.53 13,304,421,356.53 5,913,416,400.70 19,217,837,757.23 2021 Annual Report 120 / 292 1. Ordinary shares input by shareholder s 741,859,230.00 12,562,562,126.53 13,304,421,356.53 1,444,847,184.99 14,749,268,541.52 2. Contributio n capital of holders of other equity instruments 3. Amounts of share-based payments recorded in owners' equity 4. Others 4,468,569,215.71 4,468,569,215.71 (III) Profit distribution -14,960,000,000.00 -14,960,000,000.00 -115,806,445.47 -15,075,806,445.47 1. Appropriati on to surplus reserves 2. Appropriati on to general risk reserve 3. Distributio n to shareholder s -14,960,000,000.00 -14,960,000,000.00 -115,806,445.47 -15,075,806,445.47 4. Others (IV) Internal carry-over in -4,252,610.14 4,252,610.14 2021 Annual Report 121 / 292 shareholder 's equity 1. Capital reserve transferred to capital (or share capital) 2. Surplus reserves transferred to capital ( or share capital) 3. Surplus reserves to recover loss 4. Retained earnings carried forward from changes in defined benefit plan 5. Retained earnings carried over from other comprehens ive income -4,252,610.14 4,252,610.14 6. Others (V) Special reserves 1. Appropriati on in current year 2. Use in current year (VI) Others 1,248,262.14 -965,324.07 282,938.07 -45,035.09 237,902.98 2021 Annual Report 122 / 292 IV. Closing balance of the current year 22,741,859,230.00 56,928,124,174.94 313,556,807.71 24,319,522,433.93 67,815,084,345.02 172,118,146,991.60 6,203,459,484.14 178,321,606,475.74 Legal Representative: Lei Mingshan Chief Financial Officer: Zhan Pingyuan Accounting Manager: Zhang Na State ment of Changes in Shareholders' Equity of the Parent Company 2021 Prepared by: China Yangtze Power Co., Ltd. Unit: yuan Currency: RMB Item Share capital Other equity instruments Capital reserve Less: Treasur y stocks Other comprehensive income Special reserve Surplus reserve Undistributed profits Total shareholders’ equity Pref erre d shar es Perp etual bon ds Mis cella neou s I. Closing balance of the previous year 22,741,859,230.00 59,502,183,193.81 1,820,853,213.49 22,934,762,401.97 16,128,866,900.78 123,128,524,940.05 Add: Changes in accounting policies 318,538,703.61 156,892,737.69 475,431,441.30 Corrections of early errors Miscellaneous II. Opening balance of the current year 22,741,859,230.00 59,502,183,193.81 2,139,391,917.10 22,934,762,401.97 16,285,759,638.47 123,603,956,381.35 III. Increase/Decrease in the Current Year (decrease to be listed with “-”) 15,152,634.36 -51,994,230.30 4,151,443,879.33 4,114,602,283.39 (I) Total -20,207,390.55 20,034,697,600.58 20,014,490,210.03 2021 Annual Report 123 / 292 comprehensive income (II) Capital invested and decreased by shareholders 1. Ordinary shares input by shareholders 2. Contribution capital of holders of other equity instruments 3. Amounts of share-based payments recorded in owners' equity 4. Others (III) Profit distribution -15,919,301,461.00 -15,919,301,461.00 1. Appropriation to surplus reserves 2. Distribution to shareholders -15,919,301,461.00 -15,919,301,461.00 3.Others (IV) Internal carry-over in shareholder's equity -31,786,839.75 31,786,839.75 1. Capital reserve transferred to capital (or share capital) 2. Surplus reserves transferred to capital ( or share capital) 3. Surplus reserves to recover loss 4. Retained 2021 Annual Report 124 / 292 earnings carried forward from changes in defined benefit plan 5. Retained earnings carried over from other comprehensive income -31,786,839.75 31,786,839.75 6. Others (V) Special reserves 1. Appropriation in current year 2. Use in current year (VI) Others 15,152,634.36 4,260,900.00 19,413,534.36 IV. Closing balance of the current year 22,741,859,230.00 59,517,335,828.17 2,087,397,686.80 22,934,762,401.97 20,437,203,517.80 127,718,558,664.74 Item Share capital Other equity instruments Capital reserve Less: Treasur y stocks Other comprehensive income Special reserve Surplus reserve Undistributed profits Total shareholders’ equity Pref erre d shar es Perp etual bon ds Mis cella neou s I. Closing balance of the previous year 22,000,000,000.00 46,906,964,332.39 2,502,766,455.34 22,934,762,401.97 15,732,091,090.28 110,076,584,279.98 Add: Changes in accounting policies Corrections of early errors Miscellaneou 2021 Annual Report 125 / 292 s II. Opening balance of the current year 22,000,000,000.00 46,906,964,332.39 2,502,766,455.34 22,934,762,401.97 15,732,091,090.28 110,076,584,279.98 III. Increase/Decreas e in the Current Year (decrease to be listed with “-”) 741,859,230.00 12,595,218,861.42 -681,913,241.85 396,775,810.50 13,051,940,660.07 (I) Total comprehensive income -679,063,249.48 15,354,891,142.20 14,675,827,892.72 (II) Capital invested and decreased by shareholders 741,859,230.00 12,562,562,126.53 13,304,421,356.53 1. Ordinary shares input by shareholders 741,859,230.00 12,562,562,126.53 13,304,421,356.53 2. Contribution capital of holders of other equity instruments 3. Amounts of share-based payments recorded in owners' equity 4. Others (III) Profit distribution -14,960,000,000.00 -14,960,000,000.00 1. Appropriation to surplus reserves 2. Distribution to shareholders -14,960,000,000.00 -14,960,000,000.00 3.Others (IV) Internal carry-over in shareholder's -2,849,992.37 2,849,992.37 2021 Annual Report 126 / 292 equity 1. Capital reserve transferred to capital (or share capital) 2. Surplus reserves transferred to capital ( or share capital) 3. Surplus reserves to recover loss 4. Retained earnings carried forward from changes in defined benefit plan 5. Retained earnings carried over from other comprehensive income -2,849,992.37 2,849,992.37 6. Others (V) Special reserves 1. Appropriation in current year 2. Use in current year (VI) Others 32,656,734.89 -965,324.07 31,691,410.82 IV. Closing balance of the current year 22,741,859,230.00 59,502,183,193.81 1,820,853,213.49 22,934,762,401.97 16,128,866,900.78 123,128,524,940.05 Legal Representative: Lei Mingshan Chief Financial Officer: Zhan Pingyuan Accounting Manager: Zhang Na 2021 Annual Report 127 / 292 Ⅲ. GENERAL INFORMATION OF THE COMPANY 1. Company Profile China Yangtze Power Co., Ltd. (hereinafter referred to as the “Company”) is a limited liability company established by means of sponsorship by the principal sponsor, namely China Three Gorges Corporation (former China Three Gorges Project Corporation, hereinafter referred to as "CTG") and other 5 sponsors including Huaneng Power International Inc., China National Nuclear Corporation, China National Petroleum Corporation, China Gezhouba Construction Group Corporation for Water Resources and Hydropower and Changjiang Institute of Survey, Planning, Design and Research of Changjiang Water Resources Commission. The Company was established on September 23, 2002 according to the approval of "GJMQG [2002] No. 700" issued by the former State Economic and Trade Commission and completed its industrial and commercial registration in the State Administration for Industry & Commerce on November 4, 2002. As approved by China Securities Regulatory Commission, the Company issued A-shares to the public in the form of placement and was listed on Shanghai Stock Exchange on November 18, 2003. In 2009, according to the resolution of the first extraordinary general meeting of 2009 of the Company and as approved by China Securities Regulatory Commission, the Company implemented material asset reorganization and acquired the power generation assets of Three Gorges Project and shares of five specialized auxiliary production companies. On March 25, 2016, as approved by China Securities Regulatory Commission, the Company issued shares to purchase assets and raise subscription funds. Totally 3,500,000,000 shares were issued to CTG, Sichuan Energy Investment Group Co., Ltd. and Yunnan Provincial Energy Investment Group Co., Ltd. to acquire 100% of shares of Three Gorges Jinsha River Chuanyun Hydropower Development Co., Ltd. jointly held by them; meanwhile, 2,000,000,000 shares were issued through private placement to 7 investors including Ping An Asset Management Co., Ltd., Sunshine Life Insurance Co., Ltd., China Life Insurance Co., Ltd., Guangzhou Development Group Incorporated, Pacific Asset Management Co., Ltd., GIC Private Limited and Shanghai Chongyang Strategic Investment Co., Ltd. After the above-mentioned issuance, the total number of capital stock of the Company was changed to 22,000,000,000. The Company has obtained the State Administration for Industry & Commerce (No. 91110000710930405L) approved and issued by the State Administration for Industry & Commerce with Lei Mingshan acting as the legal representative and Beijing as the registration place. On October 19, 2020, the Company completed the issuance of 74,185,923 Global Depository Receipts ("GDR"), raising gross proceeds of approximately USD 1,963 million, which were listed 2021 Annual Report 128 / 292 on the London Stock Exchange, with each GDR representing 10 shares of the Company's A-shares, resulting in 741,859,230 additional shares of the underlying A-shares. As of December 31, 2021, the total cumulative issued capital stock of the Company was 22,741,859,200. The controlling shareholder of the Company is CTG and the main subsidiaries include the following: 1. CYPC Capital Holding Co., Ltd. (Former name: Beijing Yangtze Power Innovation Investment Management Co., Ltd., hereinafter referred to as CYPC Capital); 2. China Yangtze Power International (Hongkong) Co., Ltd. (hereinafter referred to as "CYPC International"); 3. Three Gorges Jinsha River Chuanyun Hydropower Development Co., Ltd. (hereinafter referred to as "Three Gorges Chuanyun Company"); 4. Three Gorges Power Co., Ltd. (hereinafter referred to as "Three Gorges Power"); 5. CYPC Investment Management Co., Ltd. (hereinafter referred to as "CYPC Investment"). The Company is engaged in the power generation industry and its main products or services include power generation, operation and investment, and technical consultation of power generation. 2. Scope of Consolidated Financial Statements There are 34 entities included in the consolidation scope this period. See relevant contents of "VIII. Equity in Other Entities" in the Notes for details. Ⅳ . Basis of Preparation for Financial State me nts 1. Basis of preparation The financial statements of the Company are prepared on the basis of going concern assumption and actual transactions and events, and in accordance with the Accounting Standards for Business Enterprises and relevant provisions issued by Ministry of Finance, and the accounting policies and accounting estimates specified in "V. Significant Accounting Policies and Accounting Estimates" in the Notes. 2. Going concern 2021 Annual Report 129 / 292 The Company has evaluated the going concern ability within 12 months since the end of the reporting period and has not found any event or condition causing substantial doubt about the going-concern ability. It is believed reasonable that the Company's financial statements have been prepared based on going concern for recent profit-making history and sourced financial support. V. Significant Accounting Policies and Accounting Estimates 1. Statement of Compliance with Accounting Standards for Business Enterprises The financial statements prepared by the Company meet the requirements of ASBE and truly and fully reflect the financial position and such relevant information as business performance and cash flow of the Company. 2. Accounting Period An accounting period of the Company is from January 1 to December 31 of each calendar year. 3. Business cycle The business cycle of the Company is 12 months. 4. Bookkeeping Base Currency The Company takes RMB as its bookkeeping base currency. 5. Accounting treatment method for business combination under common control and different control The assets and liabilities acquired by the Company, as the combining party, from business combination under common control, shall be measured based on the book value of the combined party in the consolidated statements of final controlling party on the combining date. The difference between the book value of the net assets acquired and that of the paid combination consideration shall be used to adjust the capital surplus. Where the capital surplus is insufficient for offset, retained earnings shall be adjusted. The identifiable assets, liabilities and contingent liabilities acquired from the acquiree in the business combination not under common control are measured at fair value on the acquisition date. The combination cost consists of the fair value of cash or non-cash assets paid, liabilities issued or assumed and equity securities issued by the Company on the acquisition date for acquiring control over the acquiree, and all costs directly related to the business combination (for business combination achieved in stages through multiple transactions, the combination cost refers to the sum of costs of all individual transactions). Positive balance between the combination cost and the 2021 Annual Report 130 / 292 fair value of the identifiable net assets of the acquiree obtained by the Group on the acquisition date shall be recognized as goodwill; if the combination cost is less than the fair value of the identifiable net assets of the acquiree obtained, the fair value of various identifiable assets, liabilities and contingent liabilities obtained in the business combination and the fair value of non-cash assets or equity security issued in the consideration of combination shall be re-checked first. If the rechecked combination cost is still less than the fair value of identifiable net assets of the acquiree obtained, the balance shall be included in current non-operating revenue. 6. Preparation methods of consolidated financial statements The Company shall include all subsidiaries and structured entities in the scope of consolidated financial statements. In preparing of the consolidated financial statements, where the accounting policy or accounting period adopted by subsidiaries are inconsistent with that adopted by the Company, financial statements of subsidiaries shall be adjusted according to the accounting policy and accounting period of the Company. All significant internal transactions, balances and unrealized profits within the scope of consolidation shall be eliminated during the preparation of consolidated financial statements. Shares in owners' equity of subsidiaries but not attributable to the parent company, net profit and loss for the current period, other comprehensive income and shares attributable to minority shareholders' equity in total comprehensive income shall be listed in consolidated financial statements as “minority shareholders' equity, non-controlling interests, other comprehensive income attributable to minority shareholders and total comprehensive income attributable to minority shareholders” respectively. For the subsidiaries acquired in the business combination under common control, its business performance and cash flow are included into the consolidated financial statements from the beginning of the current period of the combination. During the preparation of comparative consolidated financial statements, relevant items of the financial statements of the previous periods shall be adjusted. It shall be deemed that the reporting entity formed after the business combination has existed since the beginning of the control by the ultimate controlling party. For the subsidiaries acquired in the business combination under different controls, its business performance and cash flow are included into the consolidated financial statements from the date that the Company acquires its control. In preparing of consolidated financial statements, financial statements of the subsidiaries are adjusted based on the fair value of all identifiable assets, liabilities and contingent liabilities recognized on the acquisition date. Where the Company disposes partial long-term equity investments in subsidiaries without losing control, in the consolidated financial statements, the balance between the disposal price and the 2021 Annual Report 131 / 292 share of net assets in the subsidiaries corresponding to the disposal of long-term equity investments and measured constantly from the acquisition date or combination date shall be used to adjust the capital premium or share premium. Where the capital surplus is insufficient for offset, retained earnings shall be adjusted. In the event the Company losses the right of control over an investee due to disposal of partial equity investments or other reasons, in the preparation of consolidated financial statements, the residual equity interest shall be measured again according to its fair value on the day when the Company loses the right of control. The balance between the sum of consideration acquired from disposal of equity interest and the fair value of the residual equity interest and the share of net assets of the original subsidiaries measured constantly based on the original proportion of the shareholding from the acquisition date or combination date shall be recognized as the profit and loss on investment of the period at the loss of control and the goodwill shall be offset. Other comprehensive income in connection with equity investment of the original subsidiaries shall be transferred to the profit and loss on investment of the period at the loss of control. For the multiple transactions for step-by-step equity investment disposal by the Company that lead to the loss of control over the subsidiaries, if the above transactions belong to the package deal, they shall be subject to the accounting treatment oriented for subsidiaries disposal and loss of control. However, prior to the loss of control, the balance between the price of each disposal and the share of net assets in the subsidiaries corresponding to the investment disposed is recognized as other comprehensive income in the consolidated financial statements and will be transferred to the profit and loss on investment of the period at the loss of control. 7. Classification of joint venture arrangements The Company is arranged as a joint venture. 8. Cash and Cash Equivalents Cash shown in the cash flow statement of the Company refers to cash on hand and deposits that are available for payment at any time. Cash equivalent in the cash flow statement refers to the investment with a term not more than 3 months and high liquidity, and is easily convertible to known amounts of cash and subject to an insignificant risk of changes in value. 9. Foreign currency transactions and foreign exchange translation for financial statements (1) Foreign currency transaction The foreign currency amount in a foreign currency transaction of the Company shall be translated into RMB amount based on the spot exchange rate on the transaction date. The foreign currency 2021 Annual Report 132 / 292 monetary items in the balance sheet date are translated into RMB at the spot exchange rate on the balance sheet date; the translation difference is directly recognized as the current profit and loss, except the disposal of translation difference that is formed by foreign currency specific borrowings for establishing or producing assets eligible for capitalization as per capitalization principle. (2) Translation of foreign currency financial statements The asset and liability items in the foreign currency balance sheet are converted at the spot exchange rate on the balance sheet date; the owner's equity items, except for the items of "undistributed profit", are converted at the spot exchange rate on the transaction date; the income and expenditure items in the profit statement are converted at the spot exchange rate on the transaction date (or according to the actual situation). The difference arising from the above translation shall be listed in other comprehensive income items. Foreign currency cash flow shall be converted at the spot rate on the date that cash flow occurs (or according to the actual situation). The amount of effect of exchange rate fluctuations on cash shall be separately listed in the cash flow statement. 10. Financial Instruments An item of financial assets or financial liabilities is recognized when the Company becomes a party to the contract of the financial instruments. (1) Financial assets 1) Classification, recognition and measurement of financial assets According to the business mode of financial assets management and the contractual cash flow characteristics of financial assets, the Company classifies financial assets into financial assets measured at amortized cost, financial assets at fair value through other comprehensive income, and financial assets at fair value through profit and loss. The Company classified the financial assets that meet the following conditions simultaneously into the financial assets measured at amortized cost: ① the business mode of the financial assets management takes the collection of contractual cash flow as the objective. ② The contract terms of the financial assets stipulate that, the cash flow generated on a specific date is only the payment of the principal and the interest based on the outstanding principal amount. Such financial assets shall be initially measured at the fair value, and the relevant transaction expenses shall be included in the initially recognized amount; and the subsequent measurement will be conducted at the amortized cost. For financial assets that are not of any hedging relationship, the gains or losses arising from amortization according to the effective interest method, impairment, exchange gain or loss, and derecognition shall be included in the current profits and losses. The financial assets 2021 Annual Report 133 / 292 classified in this category by the Company specifically include the cash at bank and on hand, notes receivable, accounts receivable, other receivables and creditor's investments. The Company recognizes the interest income by the effective interest method. The interest income shall be determined by multiplying the book balance of financial assets by the effective interest rate, except for the following circumstances: ① for the purchased or originated financial assets that the credit impairment has occurred, their interest incomes shall be determined at their amortized costs and by the effective interest rate adjusted through credit from the initial recognition. ② For purchased or originated financial assets that the credit impairment has not occurred but the credit impairment has occurred in the subsequent period, their interest incomes shall be determined at their amortized costs and by the effective interest rate during the subsequent period. The Company shall designate the non-trading equity instrument investments as the financial assets at fair value through other comprehensive income. This designation shall not be revoked once made. The non-trading equity instrument investments at fair value through other comprehensive income that the Company designates shall be initially measured at the fair value, and the relevant transaction expenses shall be included in the initially recognized amount; and other relevant gains and losses (including the exchange gain or loss) shall be included in other comprehensive income, and shall not be transferred in the current profits and losses subsequently, but the obtained dividends (except for those belonging to the investment cost recovered). When its recognition is terminated, the accumulated gains or losses previously booked into other comprehensive income shall be transferred from other comprehensive incomes and recorded into retained earnings. The Company reports such equity instrument investments as investments in other equity instruments. Financial assets other than the above financial assets measured at the amortized cost and the financial assets measured at the fair value with changes included into other comprehensive income. The Company classified it as financial assets at fair value through profit or loss. Such financial assets shall be initially measured at the fair value, and the relevant transaction expenses shall be included in the current profits and losses directly. The gains or losses of such financial assets shall be included in the current profits and losses. The Company presented the financial assets at fair value through profit or loss, with maturity longer than one year from the balance sheet date and expected to be held for more than one year as other non-current financial assets. The financial assets will be classified as the financial assets at fair value through profit and loss if they are recognized by the Company in the business combination not under common control and constituted by the contingent consideration. 2) Recognition basis and measurement method for transfer of financial assets Financial assets shall be derecognized where any one of the following conditions is met: ① the contractual right to acquire cash flow of the financial assets is terminated; ② the financial assets have been transferred and the Company transfers substantially all the risks and rewards of 2021 Annual Report 134 / 292 ownership of the financial assets to the transferee; and ③ the financial assets have been transferred, and the Company waives its control over the financial assets, despite that the Company neither transfers nor retains substantially all the risks and rewards of ownership of the financial assets. If the entire transfer of the financial assets meets derecognition conditions, the difference between the book value of transferred financial assets at the date of derecognition and the sum of the consideration received from the transfer and the accumulated amount of changes in fair value previously recognized in other comprehensive income should be included in current profits and losses. Where the partial transfer of the financial assets meets derecognition conditions, the book value of the transferred financial assets should be appointed between the derecognized and non-derecognized portions as per their relative fair values respectively; and the difference between the sum of consideration received from the transfer and accumulated amount of changes in fair value previously recognized in other comprehensive income and appointed to the derecognized portion, and the aforesaid book value appointed should be included in current profits and losses. 3) Impairment of financial assets For financial assets measured by amortized cost and debt instrument investments measured at fair value and with changes are included in other comprehensive income, etc. the Company recognized the provision for loss on the basis of expected credit loss. The Company considers reasonable and reliable information about past events, current situation and forecast of future economic situation, taking the risk of default as the weight, calculates the probability weighted amount of the present value of the difference between the cash flow receivable from the contract and the cash flow expected to be received, and recognizes the expected credit loss. On each balance sheet date, the Company separately measures the expected credit losses of financial instruments at different stages. If the credit risk of financial instruments has not increased significantly since the initial recognition, it is in the first stage. The Company will measure the provision for loss according to the expected credit loss in the next 12 months. If the credit risk of a financial instrument has increased significantly since its initial recognition but no credit impairment has occurred, it is in the second stage, and the Company measures the provision for loss according to the expected credit loss of the instrument throughout its life. If a financial instrument has suffered credit impairment since its initial recognition, it is in the third stage. The Company measures the provision for loss according to the expected credit loss of the instrument throughout its life. For financial instruments with low credit risk on the balance sheet date, the Company assumes that the credit risk has not increased significantly since the initial recognition, and measures the provision for loss according to the expected credit loss in the next 12 months. 2021 Annual Report 135 / 292 For financial instruments in the first and second stages and with low credit risk, the Company calculates interest income according to the book balance before deducting provision for impairment and the actual interest rate. For financial instruments in the third stage, the interest income shall be calculated according to their book balance minus the amortized cost after provision for impairment and the actual interest rate. For accounts receivable, regardless of whether there is any significant financing component, the Company measures the provision for losses based on expected credit losses over the whole duration. For accounts receivable with objective evidence showing impairment and other accounts receivable suitable for single assessment, impairment assessment shall be conducted separately to recognize expected credit loss and accrue single provision for impairment. For accounts receivable without objective evidence of impairment or when information of the expected credit loss for a single financial assets cannot be evaluated at a reasonable cost, the Company divides the accounts receivable into several portfolios according to the credit risk characteristics, calculates the expected credit loss on the basis of the portfolios, and determines the portfolio on the following basis: ① Notes receivable Portfolio: Bank acceptance bills ② Accounts receivable Portfolio 1: Hydropower receivables Portfolio 2: Receivables of Peruvian Companies Portfolio 3: Other business receivables ③ Other receivables Portfolio 1: Dividends receivable Portfolio 2: Receivables of Peruvian Companies Portfolio 3: Other business receivables For notes receivable divided into portfolios, the Company refers to the historical credit loss experience, combines the current situation with the forecast of the future economic situation, and calculates the expected credit loss through default risk exposure and the expected credit loss rate for the whole duration. For accounts receivable divided into portfolios, the Company refers to the historical credit loss experience, combines the current situation with the forecast of the future economic situation, and calculates the expected credit loss through default risk exposure and the expected credit loss rate for the whole duration. For other receivables divided into portfolios, the Company refers to the historical credit loss experience, combines the current situation with the forecast of the future economic situation, and 2021 Annual Report 136 / 292 calculates the expected credit loss through default risk exposure and the expected credit loss rate in the next 12 months or for the whole duration. The Company shall record the provision for loss accrued or transferred back into the current profits and losses. For debt instruments held at fair value through other comprehensive income, the Company adjusts other comprehensive income while recording impairment loss or profit into current profits and losses. (2) Financial liabilities 1) Classification, recognition and measurement of financial liabilities At the time of initial recognition, the financial liabilities of the Company are classified into the financial liabilities at fair value through profit or loss and other financial liabilities. Financial liabilities at fair value through profit or loss include financial liabilities held for trading and those directly designated at the time of initial recognition as financial liabilities at fair value through profit or loss. Subsequent measurement should be performed based on fair value. Profits or losses arising from the changes of fair value as well as the dividend and interests expenses related to the said financial liabilities should be included into the current profits and losses. Other financial liabilities are subsequently measured at amortized cost using the effective interest method. 2) Conditions for derecognition of financial liabilities Where the current obligation of financial liabilities has been terminated entirely or partially, the financial liabilities or obligation that has been terminated shall be derecognized. The company and the Creditor sign an agreement in which the existing financial liabilities are replaced by means of undertaking new financial liabilities; in the event that the contractual terms of the new financial liabilities and those for existing financial liabilities are inconsistent, recognition for the existing financial liabilities shall be terminated and the new financial liabilities shall be recognized. In case the Company makes a material alteration to all or part of the contractual terms of the existing financial liabilities, recognition for the existing financial liabilities or part thereof shall be terminated while the financial liabilities after the alteration shall be recognized as new financial liabilities. The difference between the book value of the derecognized part and the paid consideration shall be included in current profits and losses. (3) Recognition methods for fair value of financial assets and financial liabilities The fair value of financial assets and financial liabilities in the Company shall be measured by the price in the primary market, and in case of no primary market, such assets and liabilities shall be 2021 Annual Report 137 / 292 measured by the price in the most favorable market. And then applicable and sufficient data and valuation techniques supported by other information shall be used. The inputs for measuring the fair value are divided into three levels: the inputs for Level 1 are the unadjusted quotation of identical assets or liabilities in the active market which can be obtained on the measurement date; the inputs for Level 2 are the inputs directly or indirectly observable for relevant assets or liabilities other than those for Level 1; and the inputs for Level 3 are the inputs that are unobservable for relevant assets or liabilities. The Company gives priority in use of the input value for the first level and finally uses that of the third level. The level of fair value measurement results is determined based on the lowest level for input value that is significant for the whole fair value measurement. (4) Offset of financial assets and financial liabilities Financial assets and financial liabilities of the Company shall be presented separately in the balance sheet and be not mutually offset. However, the net amount is presented in the balance sheet after being offset, when the following conditions are met at the same time: (1) The Company has a legal right to offset the recognized amount and that such legal rights are currently enforceable; (2) The Company plans to settle by the net assets or sell off financial assets and liquidate the financial liabilities at the same time. (5) Distinction between financial liability and equity instrument and related treatment method The Company distinguishes financial liabilities and equity instruments according to the following principles: (1) if the Company fails to unconditionally avoid performing one contractual obligation by delivering cash or other financial assets, the contractual obligation satisfies the definition of financial liabilities. While some financial instruments do not expressly include the terms and conditions for the obligation to deliver cash or other financial assets, it is possible to form contractual obligations indirectly through other terms and conditions. (2) if one financial instrument must or can be settled by the Company’s own equity instruments, the Company’s own equity instruments used for settling such instruments shall be considered as an substitute of cash or other financial assets, or as residual equity in the issuer’s assets that the instrument holder enjoys after deducting all the liabilities. If it is the former one, this instrument is the financial liabilities of the Issuer. If it is the latter, the instrument is the equity instrument of the Issuer. Under certain circumstances, a financial instrument contract requires that the Company must or may settle the financial instrument with its own equity instruments, where the amount of contractual rights or contractual obligations is equal to the number of own equity instruments available or to be delivered multiplied by the fair value upon its settlement. In this case, regardless of whether the amount of the contractual right or obligation is a fixed value or changes based in whole or in part on changes in variables other than the market price of the Company's own equity instruments (such as 2021 Annual Report 138 / 292 interest rates, the price of a good or the price of a financial instrument), the contract is classified as financial liabilities. When classifying a financial instrument (or its components) in the consolidated financial statements, the Company takes into consideration all the terms and conditions agreed between members of the Company and holders of financial instruments. If the Company as a whole has assumed the obligation to deliver cash, other financial assets or settle it by other means of rendering the instrument a financial liabilities, the instrument shall be classified as a financial liabilities. Where the financial instruments or their components are classified as financial liabilities, the related interest, stock dividends (or dividends), gains or losses, gains or losses arising from redemption or refinancing, etc. are included by the Company in the current profits and losses. Where the financial instruments or their components are classified as equity instruments, its issue (including refinancing), repurchase, sale or cancellation is treated as a change in equity and the fair value change of the equity instruments is not recognized. (6) Exchangeable bonds The exchangeable bonds issued by the Company, including liabilities and exchangeable options at the same time, are split at the time of initial recognition and recognized respectively. Among them, the exchange option to exchange the principal and interest included in the liability portion for the financial assets held by the Company for settlement is reported as financial liabilities held for trading. At the time of initial recognition, the fair value of the liability portion is determined by discounting the bond cash flow, and the fair value of the exchange option portion is determined by option binary tree method in the manner of Bermuda call option. The value of exchangeable bonds and that of exchangeable option are respectively distributed in the entire issue price based on a proportion of the fair value of the liability part or that of the exchangeable option to the sum of the fair value of the liability part and that of the exchangeable option. At the time of subsequent measurement, the liability portion of the exchangeable bonds is measured at the amortized cost by the effective interest method, and the value of the exchangeable option that is classified as financial liabilities continues to remain in liabilities Exchangeable bonds are due or exchanged without profit or loss. The transaction costs arising from the issuance of exchangeable bonds are amortized between the liability portion and the exchangeable option portion at their relative fair values respectively. The transaction costs associated with the exchangeable option portion are directly recognized as the current profits and losses. The transaction costs associated with the liability portion are recognized 2021 Annual Report 139 / 292 as the book value of the liabilities and amortized by the effective interest method during the term of the exchangeable bonds. 11. Inventories The inventories of the Company mainly include raw materials, turnover materials, spare parts, low-value consumables, finished goods, etc. Inventories shall be subject to the perpetual inventory system and initially valued according to the actual cost when acquired, including procurement cost, processing cost and other costs. Inventories are valuated as per the weighted average method and the specific identification method when they are sent out. After the Company completely checks the inventories at the end of the period, the provision for inventory falling price shall be drawn or adjusted based on the inventories cost or the net realizable value, whichever lower. For merchandise inventories directly for selling such as finished products, commodities in stock and materials for selling, during normal production and operation process, the net realizable value shall be recognized at the amount of the estimated selling price less estimated selling expense and relevant taxes; for material inventories to be processed, during normal production and operation process, the net realizable value shall be recognized at the amount of the estimated selling price of the finished products less estimated cost incurred till completion of production, estimated selling expense and relevant taxes; for inventories held for implementing sales contract or labor service contract, the net realizable value shall be calculated based on the contract price and if the quantity of inventories held is greater than the ordered quantity of the sales contract, the net realizable value of the excess part shall be calculated based on the general selling price. Inventory depreciation provision shall be provided in accordance with single inventory item at the end of the period; however, for inventories with large quantities and low unit price, depreciation provision shall be provided based on the type of the inventory; for inventories that are related to the series produced and sold in the same area and with the same or similar end use or purpose, and are hard to be measured separately from other items, depreciation provision shall be provided in a consolidated manner. Provided the factors affecting write-down of the inventories value no longer exist, the write-down amount shall be recovered and reversed from the falling price provision for inventories which has been drawn, and the recovered amount shall be included into the profits and losses in current period, and the reversed amount shall be included in the current profits and losses. 2021 Annual Report 140 / 292 12. Long-term equity investments The Company's long-term equity investments are mainly investments on subsidiaries, associates and joint ventures. The Company's criterion for joint control is that all participants or participant portfolios jointly control the arrangement, and policies of related activities of the arrangement must be subject to unanimous agreement by participants that jointly control the arrangement. It is generally considered that the Company, when directly owing or indirectly owning via subsidiaries 20% (included) to 50% voting power of the investee, has a significant influence on the investee. The Group, if holding less than 20% of the voting right of the investee, may have a significant influence on the investee in consideration of facts and situations that the Group sends representatives to the Board of Directors or similar organs of authorities of the investee, participates in financial and operation policy-making of the investee, has important transactions with the investee, sends management personnel to the investee, or provides critical technical information for the investee. Where the investee is under control, it is the subsidiary of the Company. As to long-term equity investments acquired in business combination under common control, the share of book value of net assets in the ultimate holding party’s consolidated statements of the acquiree on the combination date shall be recognized as the initial investment cost of long-term equity investments. If the book value of the net asset of the combined party on the combination date is negative, then the cost of long-term equity investments shall be determined as zero. Under the circumstance that the equity of the investees under common control is obtained through multiple transactions step by step, which results in business combination, supplementary disclosure to treatment methods for long-term equity investments in consolidated financial statements shall be made in the reporting period acquiring the control. For example, as to equity interest of the investee under common control acquired step-by-step through multiple transactions and a business combination finally completed, which belongs to a package deal, the Company takes all transactions as a control power acquiring transaction for accounting treatment. If it is not a package deal, the combined party's portion of book value of net assets in the final controlling party's consolidated financial statement owned on the combination date is taken as the initial investment amount for long-term equity investments. The balance between the initial investment amount and the sum of the book value of long-term equity investments which has reached the amount before the combination and the book value of new payment consideration obtained on the combination date shall be applied to adjust capital surplus. If the capital surplus is insufficient to set it off, the retained earnings shall be written down. For long-term equity investments acquired via business combination not under common control, the combination cost is taken as the initial investment amount. 2021 Annual Report 141 / 292 As to equity interest of the investee under different controls acquired step-by-step through multiple transactions and a business combination finally completed, the method for handling the cost of long-term equity investments in the financial statement of the parent company shall be complementarily disclosed during the reporting period acquiring the control. For example, as to equity interest of the investee under different controls acquired step-by-step through multiple transactions and a business combination finally completed, which belongs to a package deal, the Company takes all transactions as a control power acquiring transaction for accounting treatment. If it is not a package deal, the sum of book value of equity investment originally held and new investment cost is taken as the initial investment amount calculated by the cost method. If the equity interest originally held before the acquisition date and calculated by the equity method, relevant other comprehensive income originally figured out by the equity method is temporarily not adjusted and will be subject to accounting treatment when disposing the investment, on the same basis as that adopted by the investee entity for directly handling related assets or liabilities. If the equity interest held before the acquisition date is calculated by fair value, the accumulated changes in fair value originally included in other comprehensive income are transferred into current investment profits or losses on the combination date. Apart from aforementioned long-term equity investments acquired through business combination, as to long-term equity investments acquired by cash payment, the actually paid amount is taken as the investment cost; as to long-term equity investments acquired through issuing equity securities, the fair value of the issued equity securities is taken as the investment cost; as to long-term equity investments invested by investors, the value specified in investment contract or agreement is taken as the investment cost; if the Company has long-term equity investments acquired through debt restructuring and exchange of non-monetary assets, the method of determining investment cost shall be disclosed as per relevant accounting rules of enterprises and considering actual conditions of the Company. The Company uses the cost method to calculate the investments of subsidiaries and equity method to calculate investments of joint ventures and associates. For long-term equity investments subsequently calculated by the cost method, when more investments added, the book value of the long-term equity investments cost is increased based on the fair value of cost paid for added investments and related transaction expenses. Cash dividend or profit declared by the investee is recognized as current investment income in accordance with the amount to enjoy. For long-term equity investments subsequently calculated by the equity method, the book value of long-term equity investments is increased or decreased accordingly with variance of owners' equity of the investee entity. When determining the portion owning the net profit or loss of the investee, the Company will adjust and then recognize the net profits of investee based on the fair value of identifiable assets of the investee when investments are acquired, by offsetting internal profit and 2021 Annual Report 142 / 292 loss incurred in transactions with associates and joint ventures and calculating the portion belonging to the investing enterprise based on the shareholding ratio, according to the accounting policy and accounting period of the Company. For the disposal of long-term equity investments, the difference between the book value and actually obtained price shall be included in current investment income. For the long-term equity investments calculated by equity method which has been included in the owners' equity due to other changes in owners' equity (excluding the net profit or loss) of the investee entity, when disposed of, the part which has been included in the owners' equity of such investment shall be transferred to current profits and losses according to corresponding proportion. In case that the Company loses the joint control of or the significant effect on the investee due to disposal of part of the equity investment, the residual equity after the disposal shall be calculated as per relevant regulations of the standards for financial instrument recognition and measurement, and the balance between the fair value and the book value of the residual equity since the date of losing the joint control or significant influence shall be included in current profits and losses. For other comprehensive income from original equity investment recognized by the equity method is subject to the accounting treatment on the same basis as that adopted by the investee for directly handling related assets or liabilities when the equity method is not used anymore. For loss control of the investee due to disposal of partial long-term equity investments, the residual equity after disposal, if capable of realizing joint control or applying significant influence on the investee, is changed to the equity method for calculation, the difference for disposal of book value and consideration is included in the investment income, and the residual equity is adjusted as it is calculated by the equity method since it is acquired; the residual equity after disposal, if unable to realize joint control or apply significant effect on the investee, is changed to accounting treatment based on related regulations of relevant regulations of the standards for financial instrument recognition and measurement, the difference for disposal of book value and consideration is included in the investment income, and the difference between the fair value and book value of the residual equity on the loss-control date is included in current profit and loss. Various transactions of the Company from step-by-step equity interest disposal to loss of controlling power do not belong to the package deal, and every transaction is separately subject to accounting treatment. Any transaction categorized as package deal is subject to the accounting treatment oriented for subsidiary disposal and loss of controlling power. However, before the loss of controlling power, the difference between the disposal price and book value of long-term equity investments of the corresponding disposed equity interest for every transaction is recognized as other comprehensive income, which is not transferred into current profit and loss until the controlling power is lost. 13. Investment properties (1).The cost measurement mode is adopted: 2021 Annual Report 143 / 292 Depreciation or amortization method Investment properties of the Company are plant and buildings and land which have been leased out and are measured by the cost model. The estimated service life, net residual rate and annual rate of depreciation rate of investment properties of the Company are as follows: Type Period of depreciation (year) Estimated residual rate (%) Annual depreciation rate (%) Buildings and structures 8-50 0-3 1.94-12.50 The estimated service life, net residual rate and annual rate of depreciation rate of investment properties of Peruvian Companies are as follows: Type Period of depreciation (year) Estimated residual rate (%) Annual depreciation rate (%) Buildings and structures 80 -- 1.25 Land Permanent -- -- 14. Fixed assets (1). Recognition conditions The fixed assets of the Company feature the following characteristics: tangible assets with a high unit value and held for the sake of producing goods, rendering services, renting or operating management, with a service life in excess of one year. The fixed assets shall be recognized only when the related economic benefits are likely to flow into the Company and the costs can be measured reliably. Fixed assets of the Company consist of water-retaining structure, plant & buildings, machinery equipment, electronic equipment, transportation equipment, office equipment, land and others. Except for the fully depreciated fixed assets that are still in use and the land that is separately valuated and recorded, all the fixed assets of the Company shall be depreciated. The Company uses the average age method to depreciate water-retaining structures, buildings and structures, machinery equipment, transportation equipment and office equipment, and charges them to the cost of the related assets or to current expense according to the purpose. (2).Depreciation method 2021 Annual Report 144 / 292 The depreciation life, estimated net salvage value, and depreciation rates for the Company's classification are as follows: S/N Type Period of depreciation (year) Estimated residual rate (%) Annual rate of depreciation (%) 1 Water-retaining structure 40-60 -- 1.67-2.50 2 Buildings 8-50 0-3 1.94-12.50 3 Machinery equipment 5-32 0-3 3.03-20.00 4 Transportation equipment 3-10 0-3 9.70-33.33 5 Electronic equipment and others 3-12 0-3 8.08-33.33 Note: Water-retaining structures include Gezhouba Dam, Three Gorges Dam, Xiangjiaba Dam, Xiluodu Dam and others. The depreciation life, estimated residuals rate and depreciation rate of the fixed assets of Peruvian Companies are as follows: S/N Type Period of depreciation (year) Estimated residual rate (%) Annual rate of depreciation (%) 1 Buildings 20-100 -- 1.00-5.00 2 Machinery equipment 5-60 -- 1.67-20.00 3 Transportation equipment 5-8 -- 12.50-20.00 4 Miscellaneous 2-20 -- 5.00-50.00 The Company shall review the expected service life, expected net salvage and depreciation method of the fixed assets at the end of each year. Any change shall be handled as changes in accounting estimates. 15. Construction in progress Construction in progress ready for intended use shall be transferred to fixed assets based on the estimated value according to construction budget, project cost or actual project cost. The depreciation shall be drawn from the next month. After going through procedures of completion settlement, the difference of the original value of the fixed assets shall be adjusted. 2021 Annual Report 145 / 292 16. Borrowing Costs The borrowing costs directly belonging to fixed assets, investment properties and inventories that require more than one year of acquisition or construction to be ready for intended use or selling shall be capitalized when the expenditures of the assets and the borrowing costs incurred and acquisition or construction activities necessary for making the assets be ready for intended use or selling begin. When the assets meeting the capitalization requirements are acquired or constructed are ready for use or selling, the capitalization shall be terminated, and the borrowing costs incurred subsequently shall be included in current profits and losses. If assets eligible for capitalization are suddenly suspended in acquisition or construction or production for more than three months continuously, the capitalization of borrowing costs shall be suspended until the restart of acquisition or construction and production activities of the assets. The actually incurred interest costs of special borrowings in current period shall be capitalized after the interest income from unused borrowings deposited in banks or investment income from temporary investment of unused borrowings is deducted. The capitalized amount of general borrowings shall be obtained by multiplying the weighted average of the excess of the accumulated asset expenditures over the asset expenditures of special borrowings with the capitalization rate of general borrowings used. The capitalization rate shall be calculated and determined based on the weighted average interest rate of the general borrowings. 17. Right-of-use assets The right-to-use asset refers to the right of the Company as the lessee to use the leased assets during the lease term. (1) Initial measurement At the commencement of the lease term, the Company initially measures the right-to-use assets at cost. The costs includes the following four items: ① initial measurement amount of lease liabilities; ② deducted amount related to the enjoyed lease incentive if there is a lease incentive for the lease payment made on or before the commencement of the lease term; ③ initial direct costs incurred, i.e., incremental cost incurred to reach the lease; and ④ costs expected to be incurred for dismantling and removing the leased asset, restoring the site where the leased asset is located or restoring the leased asset to the state agreed in the leasing terms, except those incurred for the production of inventory. (2) Subsequent measurement After the start date of a lease term, the Company uses the cost model for subsequent measurement of right-of-use assets, that is, the right-of-use assets shall be measured at costs less accumulated 2021 Annual Report 146 / 292 depreciation and accumulated impairment losses. Where the Company re-measures lease liabilities in accordance with relevant provisions of lease criteria, the book value of right-of-use assets shall be adjusted accordingly. Starting from the commencement of the lease term, the Company will depreciate the right-to-use asset. The right-to-us asset is usually depreciated from the current month that the lease term starts. The depreciation amount for provision is included in the cost of underlying assets or the current profits and losses according to the use of the right-to-use asset. When determining the depreciation method for the right-to-use asset, the Company makes a decision based on the expected consumption mode of economic benefits related to the right-to-use asset, and depreciates the right-to-use asset by the straight-line method. When determining the depreciation life of right-to-use asset, the Company follows the following principles: if the ownership of the leased asset can be reasonably confirmed to be acquired at the expiration of lease term, the depreciation shall be carried out within the remaining service life of the leased asset; otherwise, the depreciation shall be carried out within the remaining lease term or the service life of the leased asset, whichever is shorter. If the right-to-use asset is impaired, the Company will carry out subsequent depreciation according to the book value of the right-to-use asset after deducting the impairment loss. 18. Intangible assets (1).Valuation, service life and impairment testing The intangible assets of the Company includes the land use right, software, parking space use right and others are measured at actual cost when being acquired; wherein, for the purchase intangible assets are measured at the prices actually paid and related other expenditure that are the actual cost; for the intangible assets invested by the investor, the value agreed in accordance with investment contract or agreement is recognized as actual cost, except value agreed in the contract or agreement is unfair, in such case, the actual cost shall be recognized at fair value. Intangible assets acquired in business combination not under common control which are previously held by the acquiree but are not recognized in the financial statements of the acquiree, shall be recognized as intangible assets at the fair value at the initial recognition of assets of the acquiree. Land use right shall be amortized from the date of transfer on an average basis for the term of transfer. Software, patented technology, non-patented technology and other intangible assets shall be amortized on an average basis by stages according to the estimated service life, benefit life under contract, and effective period under laws, whichever is the shortest. The amortized amounts shall be included in current profits and losses and relevant asset costs according to beneficiaries. The 2021 Annual Report 147 / 292 estimated service life and the amortization method of intangible assets with limited service life shall be reviewed at the end of each year. Any change shall be handled as changes in accounting estimates. The Peruvian Companies' intangible assets, of which the concessions are intangible assets with indefinite service life, are reviewed and performed impairment assessment at the end of each fiscal year for the estimated service life of the intangible assets with indefinite service life. The expected service life of intangible assets with limited life used by the Company is as follows: S/N Type Expected service life (year) 1 Software 3-4 2 Parking space use right 40-50 3 Land use right 30-40 Software and other intangible assets of Peruvian Companies have an estimated service life of five years. The Company's research and development expenditures are classified as research stage expenditures and development stage expenditures based on their nature and whether there is a high degree of uncertainty that the research and development activities will ultimately result in intangible assets. The expenditures in research stage shall be included in current profits and losses when incurred. The expenditures in development stage shall be recognized as intangible assets when meeting the following conditions: (1) It is technically feasible to complete the intangible assets so that it will be available for use or sale; (2) There is an intention to complete the intangible assets and to use or sell it; (3) There exists market for products produced by using the intangible assets or market for the intangible assets; (4) Adequate technical, financial and other resources are available to complete the development of the intangible assets, and it is able to use or sell the intangible assets; (5) The expenditures attributable to the intangible assets during the development can be reliably measured. The expenditures in development stage which do not meet the above conditions shall be included in current profits and losses when incurred. Development expenditures included in profits or losses before will not be recognized as assets in subsequent period. The capitalized expenditures in 2021 Annual Report 148 / 292 development stage shall be listed in the balance sheet as development expenditures and transferred into intangible assets when the R&D project is ready for intended use. 19. Impairment of long-term assets On each balance sheet date, the Company shall check the long-term equity investments, investment real estates measured by cost model, fixed assets, construction in progress, intangible assets with limited service life, and other items. In case of any indication of impairment, the Company shall carry out an impairment assessment. Impairment assessment is conducted at the end of the period for intangible assets with uncertain goodwill or service life, regardless of whether there is indication of impairment loss. If the impairment assessment shows that the book value of the asset is greater than its recoverable value, the difference between the two shall be recognized as impairment loss. Such impairment loss, once recognized, shall not be reversed in subsequent accounting period. 20. Employee Remuneration (1).Short-term employee benefits payable Employee compensation of the Company includes short-term compensation, post-employment benefits, termination benefits and other long-term welfare. The short-term compensation mainly includes salaries, bonuses, allowances & subsidy, staff welfare, social insurance charges, housing funds, labor union expenditures, personnel education fund and relevant expenditures spent in obtaining the staff’s service. The actually incurred short-term compensation shall be recognized as liability in the accounting period when the staff are rendering their services and be included in the current profits and losses or relevant asset costs according to the beneficiaries. (2).Post-employment benefit The post-employment benefits mainly include basic endowment insurance premium, unemployment insurance expense, enterprise annuity and supplement welfare provided by the Company for retired staff, and classified as defined contribution plan and defined benefit plan depending on the risk and obligation the Company bears. As for the defined contribution plans, the contributions which are made for individual subjects in exchange for the staff's services rendered in the accounting period shall be recognized as liabilities on the balance sheet date and included into the current profits and losses or relevant asset costs according to beneficiaries. As for the defined benefit plan, the Company shall use an actuarial assumption that is unbiased and mutually compatible to make a reliable estimate of the variables on population and finance according to the projected accumulated benefit unit method, measure obligations generated by defined benefit plan and determine the period to which relevant obligations belong. The deficit or surplus formed by the present value of obligations under defined benefit plan minus the fair value of assets under defined 2021 Annual Report 149 / 292 benefit plan shall be recognized as a net liability or a net asset under defined benefit plan. In case that the defined benefit plan has surplus, the Company measures the net asset under defined benefit plan as per the surplus under defined benefit plan and the upper asset limit, whichever is lower. The Company shall discount the obligations under the defined benefit plan, including the obligation to pay within 12 months after the annual reporting period when the employees provide services. The discount shall be made on the balance sheet date based on the market return on the national bonds matching with the obligations under the defined benefit plan in terms of the term and currency or based on the high-quality corporate bonds in the active market. The service costs arising from the defined benefit plan and the net amount of interest of the net liability or net asset of the defined benefit plan shall be included in current profits and losses or relevant asset cost; the changes arising from re-measurement of the net liability or net asset of the defined benefit plan shall be included in other comprehensive income and shall never be reversed back to profits or losses in subsequent accounting periods. For settlement of the defined benefit plan, the settlement gains or losses shall be recognized as per the difference between the present value of the defined benefit plan obligation and the settlement price determined on the date of settlement. (3) Termination benefits The termination benefits refer to the compensation paid to employees for either the enterprise’s decision to terminate the employment relationship before the expiration of employment contract or encouragement to an employee for voluntary acceptance of dismissal. (4) Other long-term employee welfare Other long-term employee welfare means all employee welfare excluding short-term benefits, post-employment welfare and termination benefits. 21. Estimated liabilities When the businesses related to contingencies including foreign guarantee, discount of trade acceptance, pending litigation or arbitration and product quality assurance conform to the following conditions simultaneously: Such obligation is a current obligation of the Company; it is probable that an outflow of economic benefits from the enterprise will be required to settle the obligation; and the amount for such obligation can be calculated reliably. Estimated liabilities are initially measured at the best estimate required to be paid when performing relevant current obligations, with comprehensive consideration of such factors as risks, uncertainties and time value of money related to contingencies. Where the time value of money is of great influence, the best estimate is recognized through the discount of relevant future cash outflows. As of the balance sheet date, the book value of the estimated liabilities is reviewed and adjusted (if any change) to reflect current best estimate. 2021 Annual Report 150 / 292 22. Revenue (1) Accounting policies adopted for revenue recognition and measurement The Company has fulfilled the performance obligation in the contract, that is, when the customer obtains the control right of the relevant goods or services, the revenue is recognized. If the contract contains two or more performance obligations, the Company shall, at the beginning date of the contract, apportion the transaction price to each performance obligation according to the relative proportion of the individual selling price of the commodities or services promised by each performance obligation, and measure the revenue according to the transaction price apportioned to each performance obligation. The transaction price is the amount of consideration that the Company is expected to be entitled to receive for the transfer of commodities or services to the customer, excluding payments received on behalf of third parties. The transaction price confirmed by the Company shall not exceed the amount of accumulative confirmed revenue that will most likely not have a material reversal when the relevant uncertainty is removed. The amount expected to be refunded to the consumer shall not be included in the transaction price as the return liabilities. Where there is a material financing element in the contract, the Company determines the transaction price on the basis of the amount payable in cash assuming that the customer acquired control of the goods or services at the time of acquisition. The difference between the transaction price and the contract consideration shall be amortized over the contract period using the effective interest method. By the commencement date of the contract, if the Company estimates that the interval between customers' control rights of goods or services and the payments of the customer is no more than one year, the significant financing components existing in the contract shall not be considered. In case one of the following conditions is met, the Company will perform the performance obligations within a period of time. Otherwise, it will perform the performance obligations at a time point: ① The customer obtains and consumes the economic benefits brought by the performance of the contract by the Company at the same time; ② The customer can control the goods under construction during the Company's performance; ③ The goods generated during the performance of the Company are irreplaceable, and the Company is entitled to receive payment for the performance accumulated so far throughout the term of the contract. 2021 Annual Report 151 / 292 For the performance obligations performed within a certain period of time, the Company shall recognize the revenue within that period according to the performance progress. If the performance progress cannot be reasonably confirmed, and the costs incurred by the Company can be expected to be compensated, the incomes shall be recognized according to the amount of costs incurred until the performance progress can be reasonably confirmed. For performance obligations performed at a certain time point, the Company shall confirm the revenue at the time point when the customer gains control rights of the relevant commodities or services. In determining whether a customer has obtained the control rights of the goods or services, the Company shall take the following indications into consideration: ① The Company enjoys the current collection right in regard to such goods or services; ② The Company has transferred to the physical goods to the customer; ③ The Company has transferred the legal ownership of such goods or the main risks and rewards in terms of ownership to the customer; ④ The customer has accepted such goods or services, etc. 23. Government Grants Government subsidies refer to monetary or non-monetary assets acquired for free by the Company from the government; however, the capital invested by the government as the owner of the enterprise is excluded. Government subsidies are divided into asset-related government subsidies and revenue-related government subsidies. The asset-related government subsidies refer to those obtained by the Company and used for the acquisition or construction of long-term assets or obtainment of such assets by other forms. The revenue-related government subsidies refer to those other than the asset-related government subsidies. If no assistance object is specified in the government documents, the Company shall determine it based on the above identifying principles. For those hard to be identified, classify them totally in the income-related government subsidies. If a government subsidy is monetary asset,, it shall be measured at the amount received; for subsidy granted as per the fixed quota standard, when there is unambiguous evidence showing that related conditions as stipulated in the financial supporting policies are met and it is expected that the financial supporting assets can be obtained, such subsidy shall be measured as per the receivable amount; where the government subsidies are non-monetary assets, it shall be measured at the fair value; if the fair value cannot be obtained, then it shall be measured at its nominal amount (RMB 1). 2021 Annual Report 152 / 292 Government subsidies related to assets are used to offset the book value of the related assets or are recognized as deferred incomes. Asset-related government subsidies shall be recognized as deferred incomes, and it shall be distributed with a reasonable and systematic method within the service life of related assets and included in profits and losses. When the related assets are sold, assigned, scraped or damaged before the end of service life, all the undistributed deferred incomes shall be transferred to the profits or losses of the current period of assets disposal. The revenue-related government subsidies used to compensate for related costs or losses during future periods shall be recognized as deferred incomes, and shall be recognized as current profits and losses or offset relevant costs at the period when it is recognized. The government subsidies related to daily activities shall be included in other incomes or offset relevant costs based on the substance of business transactions. The government subsidies not related to daily activities shall be included in the non-operating revenues and expenses. For the government subsidies recognized by the Company that it needs to be returned, the accounting treatment shall, as the case may be, be performed according to following stipulations during the current period when the return is required: 1) For government subsidies used to offset the book value of the related assets when they are initially recognized, the book value of assets shall be adjusted. 2) If there are deferred incomes concerned, the government subsidies shall be offset against the book balance of the deferred income, and the excess shall be included into current profit or loss. 3) Where it belongs to other situations, it is included in the current profits and losses. 24. Deferred income tax assets and deferred income tax liabilities The Company's deferred income tax assets and deferred income tax liabilities shall be recognized by calculating the difference (temporary difference) between the tax base and book value thereof. For the deductible loss of taxable income that can be deducted in the future years as specified by tax laws, corresponding deferred income tax assets shall be recognized. For temporary difference from initial recognition of goodwill, relevant deferred income tax liabilities shall not be recognized. For the temporary difference with respect to initial recognition of assets or liabilities incurred in transaction which is not business combination and the occurrence of which has no impact on the accounting profits and the taxable income (or deductible losses), relevant deferred income tax assets and liabilities shall not be recognized. Deferred income tax assets and liabilities shall be measured at applicable tax rate during the anticipated period for recovering such assets or paying off such liabilities on the balance sheet date. 2021 Annual Report 153 / 292 The deferred income tax assets shall be recognized to the extent of the future taxable income likely to be obtained for deducting deductible temporary difference, deductible loss, and tax deduction by the Company. 25. Lease Lease refers to a contract that the lessor transfers the right to use the asset to the lessee for acquiring consideration within a certain period of time. On the commencement date of a contract, the Company evaluates whether the contract is a lease or includes a lease. If one party to the contract abalienates the right to control the use of one or more identified assets within a certain period of time in exchange for consideration, the contract is a lease or includes a lease. In order to determine whether one party to the contract has abalienated the right to control the use of the identified assets within a certain period of time, the Company evaluates whether the customers in the contract are entitled to obtain almost all the economic benefits arising from the use of the identified assets during the use period and to dominate the use of the identified assets during the use period. (1) The Company as the lessee At the commencement date of the lease term, the Company recognizes its right to use the leased assets during the lease term as right-of-use assets, including the initial measurement amount of lease liabilities; if there is a lease incentive for the lease payment paid on or before the commencement date of the lease term, the relevant amount of the enjoyed lease incentive shall be deducted; initial direct costs incurred by the lessee; the expected costs incurred by the lessee to dismantle and remove the leased assets, restore the site where the leased assets are located or restore the leased assets to the state agreed in the lease terms. At the commencement date of the lease term, the Company recognizes the present value of the unpaid lease payment as lease liabilities, except for short-term lease and low-value asset lease. When calculating the present value of the lease payment, the Company adopts the interest rate included in the lease as the discount rate; if it is impossible to determine the interest rate included in the lease, the interest rate on additional borrowing of the lessee shall be used as the discount rate. The Company subsequently depreciates the right-of-use assets by using the straight-line method, and calculates the interest expenses of the lease liabilities during each period of the lease term and includes them in the current profits and losses, unless otherwise specified to be included in the cost of relevant assets. Variable lease payments not included in the measurement of lease liabilities shall be included in current profits and losses when they actually occur, unless otherwise specified to be included in the cost of relevant assets. The Company does not recognize the right-of-use assets and lease liabilities for short-term lease and low-value asset lease. However, they are included in relevant asset costs or current profits and losses using the straight-line method during the lease term. 2021 Annual Report 154 / 292 (2) The Company as the leaser As a lessor, the lease that substantially transfers almost all risks and rewards related to the ownership of the leased assets on the commencement date of the lease is a finance lease, except for which it is an operating lease. The accounting treatment of operating lease is as follows: the rent charged by the Company for leasing assets is amortized by straight-line method during the whole lease period without deducting the lease exemption period, and is recognized as lease revenue. The initial direct expenses related to the lease transaction paid by the Company shall be included in current expenses; if the amount is relatively large, it shall be subject to the capitalization, and be included by stages in current revenue as per the same basis for recognition of lease revenue within the whole lease term. If the Company bears expenses related to the lease which should be borne by the lessee, the Company shall deduct such expenses from the total amount of rent, and the expenses after deduction shall be allocated over the lease term. 26. Other significant accounting policies and accounting estimates No. 27. Changes in significant accounting policies and accounting estimates (1) Changes in significant accounting policy Contents and reasons of changes in accounting policies Procedures for review and approval Remarks In December 2018, the Ministry of Finance revised and issued the Accounting Standards for Business Enterprises No. 21 - Leases (CK [2018] No. 35) (hereinafter referred to as the "New Leasing Standard"). Changes of relevant accounting policies have been reviewed and approved in the 23rd Meeting of the Fifth Board of Directors of the Company. Since January 1, 2021, the Company has implemented the New Leasing Standard, disclosed the financial statements according to the requirements of such standard, adjusted the related items in the financial statements, and did not adjust the information of comparable periods. The implementation of the above new standards will not have a material impact on the Company’s financial statements. (2) Relevant item conditions of the first implementation of new revenue standard to adjust the financial statements at the beginning of the current year 2021 Annual Report 155 / 292 1) Consolidated Balance Sheet Unit: yuan Currency: RMB Items December 31, 2020 January 1, 2021 Adjusted amount Right-of-use assets 675,014,226.26 675,014,226.26 Non-current liabilities due within 1 year 23,924,325,034.79 23,965,656,811.68 41,331,776.89 Lease liabilities 633,682,449.37 633,682,449.37 2) Parent Company Balance Sheet Unit: yuan Currency: RMB Items December 31, 2020 January 1, 2021 Adjusted amount Right-of-use assets 673,972,632.22 673,972,632.22 Non-current liabilities due within 1 year 20,453,152,452.60 20,493,975,050.43 40,822,597.83 Lease liabilities 633,150,034.39 633,150,034.39 (3) The Company's joint ventures and associates implemented the new financial instrument standards, new revenue standards, and new lease standards for the first time in the current period. The adjustment of these standards on the financial statements at the beginning of the period and the impact on the Company were as follows: 1) Consolidated Balance Sheet Unit: RMB Items December 31, 2020 January 1, 2021 Adjusted amount Long-term equity investments 50,424,131,310.62 50,899,164,882.58 475,033,571.96 Other comprehensive income 313,556,807.71 631,715,498.02 318,158,690.31 Undistributed profits 67,815,084,345.02 67,972,191,761.87 157,107,416.85 Minority interests 6,203,459,484.14 6,203,226,948.94 -232,535.20 2) Parent Company Balance Sheet Unit: RMB Items December 31, 2020 January 1, 2021 Adjusted amount Long-term equity investments 103,001,611,185.89 103,477,042,627.19 475,431,441.30 Other comprehensive income 1,820,853,213.49 2,139,391,917.10 318,538,703.61 Undistributed profits 16,128,866,900.78 16,285,759,638.47 156,892,737.69 V. Taxes Main taxes and tax rates Tax category Tax basis Tax Rate Remar ks Value-added tax (VAT) Incomes from electricity sales, commodity sales, and lease of movable property 13%、3% 2021 Annual Report 156 / 292 Tax category Tax basis Tax Rate Remar ks Income from lease of real properties 9% Taxable service income and taxable labor service income 3%、6%、9% Income from transfer of financial commodities 6% City maintenance and construction tax Taxable amount of turnover tax 7%、5% Educational surcharge Taxable amount of turnover tax 3% Local educational surcharge Taxable amount of turnover tax 2% Income Tax Taxable income 15%、16.5%、25%、29.5% Note 1 Property tax 70% of the original value of the property and rent income 1.2%、12% Note 2 Water resources tax Actual generation capacity and water intake RMB 0.008/kWh, RMB 0.09/m 3 and RMB 0.1/m 3 Note 3 Peruvian IGV tax Electricity sales revenue, merchandise sales revenue, etc. 18% Taxpayer’s description for the tax rates of different corporate income taxes: Name of taxpayer Income tax rate (%) The Company and its subsidiaries (except the following companies) 25 Three Gorges Jinsha River Chuanyun Hydropower Development Co., Ltd. 15 China Yangtze Power International (Hong Kong) Co., Ltd. 16.5 China Three Gorges International Power Operation Co., Ltd. 16.5 Yangtze Andes Holding Co., Limited 16.5 Peru Company 29.5 2021 Annual Report 157 / 292 Note 1: According to Announcement No. 23 of the Ministry of Finance (2020) "Announcement on the Continuation of the Corporate Income Tax Policy for West China Development" for the continuation of the implementation period of tax incentives, from January 1, 2021 to December 31, 2030, Three Gorges Chuanyun Company continues to pay corporate income tax at a reduced rate of 15%. Note 2: The tax benchmark of property taxes is mainly determined as 70% of the original value of the property with the tax rate of 1.2%, or the tax benchmark is rental incomes with a tax rate of 12%. The original value of the property to be taxed of underground workshop is determined as 50% (Yichang) of the original price of the house, and the tax benchmark is 70% of the original value of the property to be taxed with a tax rate of 1.2%. Note 3: In accordance with the Notice on Printing and Issuing the Implementation Measures for Expanding the Water Resources Tax Reform Pilot (CS [2017] No. 80) jointly issued by the Ministry of Finance, the State Administration of Taxation and the Ministry of Water Resources, Sichuan Province is specified as one of the second batch of water resources tax reform pilot provinces in China. Since December 1, 2017, Chuanyun Company has started to pay the water resources tax, and the levy standard is as shown in the following table: Unit: yuan Currency: RMB Tax category Classification Tax basis Levy standard Water resources tax Water for power generation Actual generation capacity RMB 0.008/kWh Production water Actual water intake Xiluodu Hydropower Station RMB 0.09/m 3 Xiangjiaba Hydropower Station RMB 0.1/m 3 VI. Notes to Main Items in Consolidated Financial Statements Unless otherwise stated, among the following disclosed data in the financial statements, “opening” refers to January 1, 2021; “closing” refers to December 31, 2021; “current year” refers to the period from 1 January to December 31, 2021; “previous year” refers to the period from January 1 to December 31, 2020; and the monetary unit is RMB. 1. Cash and bank balances Unit: yuan Currency: RMB Items Ending balance Opening balance Cash on hand 7,869,287.15 6,680,457.72 Cash at bank 9,893,319,687.60 9,159,811,937.11 2021 Annual Report 158 / 292 Items Ending balance Opening balance Other monetary funds 28,791,086.94 64,721,396.96 Total 9,929,980,061.69 9,231,213,791.79 Including: total amount deposited abroad 1,126,963,307.94 3,924,867,095.04 Note: The performance bond and performance security in other cash at bank and on hand of the Company is RMB 5,000,000.00 and RMB 200,462.02 respectively and belongs to the cash at bank and on hand whose ownership is restricted. Other funds are cash for investment without mortgage, freeze and other constraints. 2. Accounts receivable (1) Accounts receivable are listed by age Unit: yuan Currency: RMB Aging Ending balance Within 1 year 3,762,963,377.29 1-2 years 19,045,142.59 2-3 years 62,899.95 3-4 years 5,974.17 Total 3,782,077,394.00 2021 Annual Report 159 / 292 (2) Classified presentation of accounts receivable by bad debt accrual method Unit: yuan Currency: RMB Type Ending balance Opening balance Book balance Provision for bad debts Book value Book balance Provision for bad debts Book value Amount Propor tion (%) Amount Propo rtion of provi sion (%) Amount Propor tion (%) Amount Propo rtion of provis ion (%) Bad debt provision made individually Bad debt provision made as per portfolio 3,782,077,394.00 100.00 13,818,589.64 0.37 3,768,258,804.36 3,651,204,444.73 100.00 1,155,841.99 0.03 3,650,048,602.74 Including: portfolio of hydropower business receivables 2,877,613,834.83 76.09 2,877,613,834.83 2,657,790,696.57 72.79 2,657,790,696.57 Receivables portfolio of Peruvian Companies 844,848,146.47 22.34 13,818,589.64 1.64 831,029,556.83 946,681,812.83 25.93 1,155,841.99 0.12 945,525,970.84 Other payment portfolio 59,615,412.70 1.57 59,615,412.70 46,731,935.33 1.28 46,731,935.33 Total 3,782,077,394.00 - 13,818,589.64 - 3,768,258,804.36 3,651,204,444.73 - 1,155,841.99 - 3,650,048,602.74 2021 Annual Report 160 / 292 (3) Bad debt provision of accounts receivable Unit: yuan Currency: RMB Type Opening balance Amount changed in the current year Ending balance Provision Accoun ts recover ed or transfer red back Amou nts charg ed or writte n off Miscellane ous Accounts receivable 1,155,841.99 13,228,381.92 -565,634.27 13,818,589.64 Total 1,155,841.99 13,228,381.92 -565,634.27 13,818,589.64 (4) Top five of accounts receivable of closing balance collected by borrower Unit: yuan Currency: RMB Company Name Ending balance Aging Proportion in total closing balance of accounts receivable (%) Closing balance of bad debt provision State Grid Corporation of China 2,292,044,137.65 Within 1 year 60.60 China Southern Power Grid Co., Ltd. 304,145,170.66 Within 1 year 8.04 Central China Branch, State Grid Corporation of China 269,076,591.65 Within 1 year 7.11 Pakistan Company of Yangtze Three Gorges Technology & Economy Development Co., Ltd. 18,354,711.54 Within 1 year 0.49 Three Gorges Pakistan No. 1 Wind Power Co., Ltd. 17,381,015.98 Within 1 year 0.46 Total 2,901,001,627.48 — 76.70 3. Advances to suppliers (1) Aging of advances to suppliers Unit: yuan Currency: RMB Items Ending balance Opening balance Amount Proportion (%) Amount Proportion (%) Within 1 year 90,980,727.79 97.19 43,024,823.72 88.06 1 - 2 years 2,021,073.33 2.16 5,824,384.11 11.92 2021 Annual Report 161 / 292 2 - 3 years 604,743.36 0.65 9,101.91 0.02 3 - 4 years 1,202.76 0.00 Total 93,606,544.48 100.00 48,859,512.50 100.00 (2) Top five of the closing balance of the prepayment collected according to the prepayment target Unit: yuan Currency:RMB Company Name Ending balance Aging Proportion in total closing balance of advances to suppliers (%) Three Gorges Electric Energy Digital Energy Technology (Hubei) Co., Ltd. 3,193,254.72 Within 1 year 3.41 Jiangsu Wujin Hydraulic Hoist Co., Ltd. 2,570,159.28 1-3 year (s) 2.75 SCHNEIDER ELECTRIC PERU 2,236,497.89 Within 1 year 2.39 EL PACIFICO PERUANO-SUIZA CIA SEG Y REASEGUROS 1,981,999.27 Within 1 year 2.12 Shenzhen Santu Construction Engineering Co., Ltd. 1,614,494.31 Within 1 year 1.72 Total 11,596,405.47 — 12.39 4. Other receivables Unit: yuan Currency:RMB Items Ending balance Opening balance Dividends receivable 55,028,400.00 45,473,100.00 Other receivables 573,690,906.50 451,827,015.36 Total 628,719,306.50 497,300,115.36 4.1 Dividends receivable Category of dividends receivable Unit: yuan Currency:RMB Item (or the investee) Ending balance Opening balance 2021 Annual Report 162 / 292 Item (or the investee) Ending balance Opening balance Hubei Qingneng Investment and Development Group Co., Ltd. 55,028,400.00 45,473,100.00 Total 55,028,400.00 45,473,100.00 2021 Annual Report 163 / 292 4.2 Other receivables (1) Classification of other receivables by nature Unit: yuan Currency:RMB Payment nature Closing book balance Opening book balance Guarantee deposit and security deposit 40,807,597.58 8,764,532.65 Advance payments 4,730,172.86 6,084,696.61 Current accounts 512,739,129.14 402,358,367.37 Peruvian Social Compensation Fund for the Electricity Sector 6,540,362.16 8,992,470.80 Miscellaneous 10,091,385.58 28,341,528.94 Total 574,908,647.32 454,541,596.37 (2) Other receivables – bad debt provision withdrawn Unit: yuan Currency:RMB Provision for bad debts Stage I Stage II Stage III Total Expected credit loss in the future 12 months Expected credit loss within the whole duration (no credit impairment occur) Expected credit loss within the whole duration (credit impairment has occurred) Balance as at January 1, 2021 2,714,581.01 2,714,581.01 Provision in the current year -1,496,539.17 -1,496,539.17 Other changes -301.02 -301.02 Balance as at December 31, 2021 1,217,740.82 1,217,740.82 (3) Other receivables listed as per aging Unit: yuan Currency:RMB Aging Ending balance Within 1 year 556,888,875.78 2021 Annual Report 164 / 292 1-2 years 12,869,464.31 2-3 years 2,594,934.53 3-4 years 1,397,460.43 4-5 years 712,040.71 Over 5 years 445,871.56 Total 574,908,647.32 (4) Other receivables – bad debt provision Unit: yuan Currency:RMB Type Opening balance Amount changed in the current year Ending balance Provision Accou nts recove red or transfe rred back Amoun ts charged or written off Miscell aneous Other payment portfolio 2,714,581.01 -1,496,539.17 -301.02 1,217,740.82 Total 2,714,581.01 -1,496,539.17 -301.02 1,217,740.82 (5) Other receivables of top five borrowers by closing balance Unit: yuan Currency:RMB Company Name Payment nature Ending balance Aging Proportion in total closing balance of other receivables (%) Provision for bad debts Ending balance Three Gorges Jinsha River Yunchuan Hydropower Development Co., Ltd. Current accounts 454,079,250.00 Within 1 year 78.98 454,079.25 The Three Gorges Industrial Co., Ltd. Current accounts 14,900,381.75 Within 1 year 2.59 14,900.38 Inner Mongolia Chuangsheng Development and Investment Co., Ltd. Security Deposit 10,000,000.00 Within 1 year 1.74 10,000.00 2021 Annual Report 165 / 292 Company Name Payment nature Ending balance Aging Proportion in total closing balance of other receivables (%) Provision for bad debts Ending balance Anneng (Qujialing) Biomass Power Generation Co., Ltd. Security Deposit 10,000,000.00 Within 1 year 1.74 10,000.00 Development and Reform Bureau of Mangshi People's Government Security Deposit 10,000,000.00 Within 1 year 1.74 10,000.00 Total — 498,979,631.75 — 86.79 498,979.63 5. Inventories (1) Category of inventories Unit: yuan Currency:RMB Items Ending balance Opening balance Book balance Inventories impairment provision Book value Book balance Inventories impairment provision Book value Raw materials 105,611,771.51 47,699,547.39 57,912,224.12 121,478,254.65 63,013,625.97 58,464,628.68 Commod ities in stock 1,289,178.53 1,289,178.53 16,556,347.87 16,556,347.87 Spare parts 618,201,620.52 207,427,167.31 410,774,453.21 463,169,090.62 256,232,932.34 206,936,158.28 Miscella neous 60,225.31 4,760.86 55,464.45 105,041.70 1,731.70 103,310.00 Total 725,162,795.87 255,131,475.56 470,031,320.31 601,308,734.84 319,248,290.01 282,060,444.83 (2) Inventories impairment provision Unit: yuan Currency:RMB Items Opening balance Increase in the current year Decrease in the current year Ending balance 2021 Annual Report 166 / 292 Provision Miscellaneous Reversal or write-off Miscellaneous Raw materials 63,013,625.97 -4,548,858.16 1,505,938.82 9,259,281.60 47,699,547.39 Commodities in stock Spare parts 256,232,932.34 -35,839,139.63 13,047,387.63 -80,762.23 207,427,167.31 Miscellaneous 1,731.70 4,600.87 1,302.14 269.57 4,760.86 Total 319,248,290.01 -40,383,396.92 14,554,628.59 9,178,788.94 255,131,475.56 6. Other current assets Unit: yuan Currency:RMB Items Ending balance Opening balance Retained tax of VAT tax amount 5,357,659.56 261,516.66 Reversal of repurchase of Government Treasury Bonds (Note 1) 168,904,971.50 852,007,760.00 Prepaid tax 5,635,388.13 1,932,668.63 Pending deduction of Peruvian IGV tax 87,777,270.76 94,254,716.28 Prepayment for investments (Note 2) 2,764,659,097.38 Total 3,032,334,387.33 948,456,661.57 Note 1: The reverse repo of treasury bonds is the principal of the Company’s capital lending through the reverse repo of treasury bonds market to obtain the interest income during the current period. The Company’s holding period for reverse repo of treasury bonds during the current year includes 1 day, 2 days, 3 days, 4 days, 7 days, 14 days and 28 days. The interest income is calculated at the actual interest rate at the time of repo transaction between Shanghai Stock Exchange and Shenzhen Stock Exchange. Note 2: On November 8, 2021, the Company and Dinghe Property Insurance Co., Ltd. entered into the Agreement on Capital Increase of Dinghe Property Insurance Co., Ltd. to subscribe to 15% equity interest of Dinghe Property Insurance Co., Ltd.; as of December 31, 2021, the subscription amount of RMB 2,764,659,097.38 for the equity interest has been paid in full, but the delivery procedures of equity interest have not been completed. 2021 Annual Report 167 / 292 7. Debt investments Unit: yuan Currency:RMB Items Ending balance Opening balance Book balance Impairment provision Book value Book balance Impairment provision Book value Preferred shares and shareholder loans 1,014,594,368.22 1,014,594,368.22 1,139,169,084.08 1,139,169,084.08 Total 1,014,594,368.22 1,014,594,368.22 1,139,169,084.08 1,139,169,084.08 2021 Annual Report 168 / 292 8. Long-term equity investments Unit: yuan Currency:RMB Investee Opening balance Increase and decrease for the current year Ending balance Ending balance of impairme nt provision Additional investment Reduced investment Investment profits and losses recognized by equity method Adjustment to other comprehens ive income Other equity changes Cash dividends or profits declared to be distributed Provision of impairme nt provision Miscellane ous I. Joint Venture Three Gorges Electric Energy (Anhui) Co., Ltd. 66,739,657.97 698,816.41 67,438,474.38 Yangtze Smart Distributed Energy Co., Ltd. 90,274,537.47 92,000,000.00 2,049,239.15 -1,150,071. 80 183,173,704.8 2 Three Gorges Electric Energy (Guangdong) Co., Ltd 32,315,116.07 563,830.28 32,878,946.35 Shaanxi Yan’an Electricity Industry Co., 29,565,386.04 -149,163.32 29,416,222.72 2021 Annual Report 169 / 292 Investee Opening balance Increase and decrease for the current year Ending balance Ending balance of impairme nt provision Additional investment Reduced investment Investment profits and losses recognized by equity method Adjustment to other comprehens ive income Other equity changes Cash dividends or profits declared to be distributed Provision of impairme nt provision Miscellane ous Ltd. Three Gorges Electric Energy (Yunnan) Co., Ltd. 35,301,768.13 -5,260,808.71 30,040,959.42 Sub-total 254,196,465.6 8 92,000,000.00 -2,098,086.19 -1,150,071. 80 342,948,307.6 9 "II. Associates" Hubei Energy Group Co., Ltd. 8,380,022,367. 18 669,408,111.0 7 4,720,595.54 -7,624,829. 17 223,458,795.9 6 8,823,067,448. 66 Hubei Qingneng Investment and Developmen t Group Co., Ltd. 2,219,502,299. 46 241,765,949.2 6 39,136,178.1 0 55,028,400.00 2,445,376,026. 82 Guangzhou Developmen t Group Incorporated 3,931,457,085. 98 40,449,877.37 25,832,838.3 5 23,491,794. 89 92,497,553.86 3,928,734,042. 73 2021 Annual Report 170 / 292 Investee Opening balance Increase and decrease for the current year Ending balance Ending balance of impairme nt provision Additional investment Reduced investment Investment profits and losses recognized by equity method Adjustment to other comprehens ive income Other equity changes Cash dividends or profits declared to be distributed Provision of impairme nt provision Miscellane ous Three Gorges Finance Co., Ltd. 2,161,419,535. 56 260,230,854.3 1 50,380,316.6 0 104,969,852.2 3 2,367,060,854. 24 Shanghai Electric Power Co., Ltd. (Note 1) 1,961,923,053. 84 429,909,193.3 1 -188,953,743. 88 -2,233,810.0 0 33,280,360. 10 28,718,079.50 1,345,388,587. 25 Hunan Taohuajiang Nuclear Power Co., Ltd. 224,119,537.5 2 224,119,537.5 2 Chongqing Three Gorges Water Conservancy and Electric Power (Group) Co., Ltd. (Note 4) 2,866,592,643. 49 356,069,099.2 9 153,524,362.2 3 3,283,153.47 5,606,975.2 2 33,759,038.40 3,351,317,195. 30 Three Gorges Base Developmen t Co., Ltd. 798,333,807.8 8 331,500,000.0 0 36,723,455.57 -60,534,416. 23 14,461,357.20 1,091,561,490. 02 2021 Annual Report 171 / 292 Investee Opening balance Increase and decrease for the current year Ending balance Ending balance of impairme nt provision Additional investment Reduced investment Investment profits and losses recognized by equity method Adjustment to other comprehens ive income Other equity changes Cash dividends or profits declared to be distributed Provision of impairme nt provision Miscellane ous Shenergy Group Company Limited (Note 4) 3,027,239,470. 92 612,608,977.7 4 177,317,307.3 4 1,060,454.17 -35,622,018 .59 161,170,873.6 4 3,621,433,317. 94 Chongqing Youtai Energy Co., Ltd. 20,018,230.17 7,679,544.49 27,697,774.66 Chongqing Fuling Energy Industry Group Co., Ltd. 617,342,747.8 5 26,650,241.58 1,349,548.04 422,767.34 4,396,090.58 641,369,214.2 3 Three Gorges Capital Holdings Co., Ltd. 3,032,577,398. 00 406,628,491.1 0 21,499,557.4 9 19,253,449. 01 216,700,282.7 0 3,263,258,612. 90 SDIC Power Holdings Co., Ltd. (Note 4) 9,411,210,698. 76 2,343,342,978. 51 399,660,727.9 7 40,548,612.7 9 6,024,159.3 3 353,031,344.1 7 11,847,755,83 3.19 Sichuan Chuantou 6,025,916,762. 19,411,911.66 1,360,701,185 433,482,556.0 141,367,739. 4,824,307.5 235,126,593.3 5,029,175,498. 2021 Annual Report 172 / 292 Investee Opening balance Increase and decrease for the current year Ending balance Ending balance of impairme nt provision Additional investment Reduced investment Investment profits and losses recognized by equity method Adjustment to other comprehens ive income Other equity changes Cash dividends or profits declared to be distributed Provision of impairme nt provision Miscellane ous Energy Co., Ltd. (Note 2) 26 .83 6 66 5 4 02 Guangxi Guiguan Electric Power Co., Ltd. (Note 3) 5,391,061,710. 51 12,003,155.53 1,746,470.98 -34,477,914 .27 1,560,888.57 5,368,772,534. 18 Chongqing Fuling Three Gorges Changfu Equity Investment Fund Partnership (Limited Partnership ) 49,430,880.67 -6,409.95 49,424,470.72 Chongqing Liangjiang Three Gorges Xinghong Equity Investment 41,418,778.04 358,036.84 41,776,814.88 2021 Annual Report 173 / 292 Investee Opening balance Increase and decrease for the current year Ending balance Ending balance of impairme nt provision Additional investment Reduced investment Investment profits and losses recognized by equity method Adjustment to other comprehens ive income Other equity changes Cash dividends or profits declared to be distributed Provision of impairme nt provision Miscellane ous Fund Partnership (Limited Partnership ) Chongqing Qianjiang Three Gorges Changhong Equity Investment Fund Partnership (Limited Partnership ) 176,629,239.6 2 -919,837.03 175,709,402.5 9 Yunnan Huadian Jinsha River Middle Reaches Hydropowe r Developme nt Co., Ltd. 5,001,750,088. 94 107,023,652.3 3 1,392,949.00 18,225,200.00 5,091,941,490. 27 2021 Annual Report 174 / 292 Investee Opening balance Increase and decrease for the current year Ending balance Ending balance of impairme nt provision Additional investment Reduced investment Investment profits and losses recognized by equity method Adjustment to other comprehens ive income Other equity changes Cash dividends or profits declared to be distributed Provision of impairme nt provision Miscellane ous CCB Internationa l Medical Industry Equity Investment Co., Ltd. 24,468,012.03 13,439,628.76 -11,028,383.2 7 Hubei New Energy Venture Capital Fund Co., Ltd. 37,757,357.07 15,659,416.69 23,519,448.71 45,617,389.09 Hubei Longteng Landscape Engineerin g Co., Ltd. 8,653,816.56 -7,553,304.83 1,100,511.73 Three Gorges Insurance Brokerage Co., Ltd. 29,907,939.31 3,450,146.06 2,338,450.79 31,019,634.58 Zhengzhou Hydraulic Machinery Co., Ltd. 189,894,592.6 2 3,056,076.55 192,950,669.1 7 2021 Annual Report 175 / 292 Investee Opening balance Increase and decrease for the current year Ending balance Ending balance of impairme nt provision Additional investment Reduced investment Investment profits and losses recognized by equity method Adjustment to other comprehens ive income Other equity changes Cash dividends or profits declared to be distributed Provision of impairme nt provision Miscellane ous China Three Gorges Offshore Luxembour g S.a.r.l 105,656,142.4 0 -15,476,921.0 6 6,808,005.44 -2,311,717. 40 94,675,509.38 Chongqing Changxing you Energy Co., Ltd. 25,944,036.52 2,706,268.20 202,130.77 2,049,415.3 3 30,901,850.82 Green Energy Mixed Equity Investment Fund (Guangzho u) Partnership (Limited Partnership ) 125,679,923.0 1 5,783,498.97 -220.33 -55,706.50 131,407,495.1 5 Chongqing Changshen g New Energy Private Equity 883,320,000.0 0 483,845.81 883,803,845.8 1 2021 Annual Report 176 / 292 Investee Opening balance Increase and decrease for the current year Ending balance Ending balance of impairme nt provision Additional investment Reduced investment Investment profits and losses recognized by equity method Adjustment to other comprehens ive income Other equity changes Cash dividends or profits declared to be distributed Provision of impairme nt provision Miscellane ous Interest Investment Fund Partnership (Limited Partnership ) Miscellane ous 150,101,971.2 4 61,278,437.65 15,913,391.92 185,448.35 227,479,249.1 6 Sub-total 50,644,968,41 6.90 9,998,593,115. 36 1,819,709,424 .59 2,803,880,399 .25 276,560,103. 84 17,358,208. 59 1,545,442,800 .94 -2,311,717. 40 60,373,896,30 1.01 Total 50,899,164,88 2.58 10,090,593,11 5.36 1,819,709,424 .59 2,801,782,313 .06 276,560,103. 84 16,208,136. 79 1,545,442,800 .94 -2,311,717. 40 60,716,844,60 8.70 Note 1: The Company disposed of 63,222,000.00 shares of Shanghai Electric Power Co., Ltd. through the secondary market during the period, and its shareholding ratio decreased from 9.98% to 7.56%, but can still exert significant influence on it as the Company assigned special directors for this purpose. The equity method is continually used for subsequent measurement. 2021 Annual Report 177 / 292 Note 2: The Company disposed of 131,761,473.00 shares of Sichuan Chuantou Energy Co., Ltd. through the secondary market during the period, and its shareholding ratio decreased from 14.04% to 11.05%, but can still exert significant influence on it as the Company assigned special directors for this purpose. The equity method is continually used for subsequent measurement. Note 3:The Company increased its holdings of Guangxi Guiguan Electric Power Co., Ltd. through the secondary market in the current period. As of December 31, 2021, the Company holds 876,618,179.00 shares of Guangxi Guiguan Electric Power Co., Ltd., and the Company is its third-largest shareholder and has the right to nominate directors, capable of exerting a significant influence on it. It is therefore turned into a long-term equity investment and the subsequent measurement is made under the equity method. Note 4: The Company made additional investments in Chongqing Three Gorges Water Conservancy and Electric Power Co., Ltd., Shenergy Group Company Limited, and SDIC Power Holding Company Limited through the secondary market during the period. 2021 Annual Report 178 / 292 9. Other equity instrument investments (1) About other equity instrument investments Unit: yuan Currency: RMB Items Ending balance Opening balance Non-trading equity instruments 3,457,356,904.37 3,609,195,163.56 Total 3,457,356,904.37 3,609,195,163.56 (2) Investment in non-trading equity instruments in the current period Unit: yuan Currency: RMB Items Dividend income recognized this year Cumulative profits Cumulati ve losses Amount of other comprehens ive income transferred to retained earnings Reasons for being designated as being measured at fair value through other comprehens ive income Reasons for transferring other comprehens ive income to retained earnings Non-tradi ng equity instrumen ts 231,710,374. 30 1,971,505,826 .31 Long-term holding Total 231,710,374. 30 1,971,505,826 .31 - 10. Other non-current financial assets Unit: yuan Currency: RMB Items Ending balance Opening balance Classified as financial assets at fair value through profit or loss 1,622,160,091.31 4,713,666,463.26 Including: equity instrument investments 1,622,160,091.31 4,713,666,463.26 Total 1,622,160,091.31 4,713,666,463.26 11. Investment properties Investment real estates measured at cost Unit: yuan Currency: RMB Items Land, premises and buildings 2021 Annual Report 179 / 292 Items Land, premises and buildings I. Original book value 1. Opening balance 155,338,482.33 2. Increase in the current year 3. Decrease in the current year 4. Changes in the scope of business combination 5. Translation of foreign currency statements -9,881,087.76 6. Closing balance 145,457,394.57 II. Accumulated Depreciation and Accumulated Amortization 1. Opening balance 30,063,378.16 2. Increase in the current year 2,948,426.68 (1) Provision or amortization 2,948,426.68 3. Decrease in the current year 4. Changes in the scope of business combination 5. Translation of foreign currency statements -1,377,257.02 6. Closing balance 31,634,547.82 III. Impairment provision 1. Opening balance 2. Increase in the current year 3. Decrease in the current year 4. Changes in the scope of business combination 5. Translation of foreign currency statements 6. Closing balance IV. Book value 1. Closing book value 113,822,846.75 2. Opening book value 125,275,104.17 12. Fixed assets Unit: yuan Currency: RMB Items Closing book value Beginning book value Fixed assets 218,698,689,602.56 231,101,152,705.45 Disposal of fixed assets 13,923,499.07 18,710,649.03 Total 218,712,613,101.63 231,119,863,354.48 2021 Annual Report 180 / 292 12.1 Fixed assets: (1) List of fixed assets Unit: yuan Currency: RMB Items Water-retaining structure Buildings and structures Machinery equipment Transportation equipment Electronic equipment and others Land (Note 2) Total I. Original book value 1. Opening balance 141,901,897,534.55 93,084,116,479.99 115,065,752,044.41 343,866,289.31 1,412,716,733.46 1,104,871,371.74 352,913,220,453.46 2. Increase in the current year 286,499,170.50 1,298,847,789.69 16,234,096.26 135,339,156.30 578,966.16 1,737,499,178.91 (1) Purchase 2,647,983.54 23,699,416.48 12,503,093.32 18,348,625.48 57,199,118.82 (2) Transferred from construction in progress 283,851,186.96 1,275,148,373.21 3,731,002.94 116,990,530.82 578,966.16 1,680,300,060.09 (3) Miscellaneous 3. Decrease in the current year 3,128,703,799.90 375,576,956.37 21,067,963.62 51,247,027.22 394,410.04 3,576,990,157.15 (1) Disposal, obsolescence and other (Note 1) 3,128,703,799.90 375,576,956.37 21,067,963.62 51,247,027.22 394,410.04 3,576,990,157.15 (2) Others 4. Changes in the scope of 2021 Annual Report 181 / 292 Items Water-retaining structure Buildings and structures Machinery equipment Transportation equipment Electronic equipment and others Land (Note 2) Total business combination 5. Translation of foreign currency statements -154,883,358.08 -1,118,881,064.48 -10,478,383.47 -37,254,796.17 -52,509,829.85 -1,374,007,432.05 6. Closing balance 141,901,897,534.55 90,087,028,492.51 114,870,141,813.25 328,554,038.48 1,459,554,066.37 1,052,546,098.01 349,699,722,043.17 II. Accumulated depreciation 1. Opening balance 33,469,261,965.22 22,343,927,428.67 65,077,982,295.11 196,654,553.54 724,241,505.47 121,812,067,748.01 2. Increase in the current year 3,205,051,188.08 2,338,429,578.79 5,673,129,195.65 25,260,129.00 98,031,918.99 11,339,902,010.51 (1) Provision 3,205,051,188.08 2,338,429,578.79 5,673,129,195.65 25,260,129.00 98,031,918.99 11,339,902,010.51 (2) Others 3. Decrease in the current year 1,523,727,685.73 234,001,138.14 20,599,217.04 35,288,777.26 1,813,616,818.17 (1) Disposal, obsolescence and other 1,523,727,685.73 234,001,138.14 20,599,217.04 35,288,777.26 1,813,616,818.17 (2) Others 4. Changes in the scope of business combination 5. Translation of foreign currency statements -15,508,647.81 -289,580,429.57 -3,366,025.19 -28,865,397.17 -337,320,499.74 2021 Annual Report 182 / 292 Items Water-retaining structure Buildings and structures Machinery equipment Transportation equipment Electronic equipment and others Land (Note 2) Total 6. Closing balance 36,674,313,153.30 23,143,120,673.92 70,227,529,923.05 197,949,440.31 758,119,250.03 131,001,032,440.61 III. Impairment provision 1. Opening balance 2. Increase in the current year (1) Provision 3. Decrease in the current year (1) Disposal, obsolescence and other 4. Changes in the scope of business combination 5. Translation of foreign currency statements 6. Closing balance IV. Book value 1. Closing book value 105,227,584,381.25 66,943,907,818.59 44,642,611,890.20 130,604,598.17 701,434,816.34 1,052,546,098.01 218,698,689,602.56 2. Opening book value 108,432,635,569.33 70,740,189,051.32 49,987,769,749.30 147,211,735.77 688,475,227.99 1,104,871,371.74 231,101,152,705.45 Note 1: The other decrease in plant & buildings during the period was mainly due to the transfer of the connection roads for Xiluodu and Xiangjiaba Hydropower Stations to the government, as described in Note "VI(34)". 2021 Annual Report 183 / 292 Note 2: Land is owned by Peruvian Companies. 2021 Annual Report 184 / 292 (2) Fixed assets whose certificate of titles are not settled Unit: yuan Currency: RMB Items Book value Reason(s) for the failure to transact the certificate of title Buildings 18,244,102.69 Property certificate in process Total 18,244,102.69 — 12.2. Disposal of fixed assets Unit: yuan Currency: RMB Items Ending balance Opening balance Disposal of fixed assets 13,923,499.07 18,710,649.03 Total 13,923,499.07 18,710,649.03 13. Construction in progress Unit: yuan Currency: RMB Items Ending balance Opening balance Construction in progress 2,890,730,789.56 2,978,656,023.35 Construction materials 846,134.08 14,812,476.85 Total 2,891,576,923.64 2,993,468,500.20 2021 Annual Report 185 / 292 13.1 Construction in progress (1) List of construction in progress Unit: yuan Currency: RMB Items Ending balance Opening balance Book balance Impairmen t provision Book value Book balance Impairme nt provision Book value Xiangjiaba Project (Note) 1,544,208,504.21 1,544,208,504.21 1,485,013,496.49 1,485,013,496.49 Reconstruction of 170MW hydraulic generator set in Gezhouba Hydropower Station 133,218,875.50 133,218,875.50 30,963,713.88 30,963,713.88 SAN JUAN—BALNEARIOS Transmission Line Project 105,309,133.00 105,309,133.00 Renovation, reconstruction and capacity increase of hydraulic generator set in Gezhouba Hydropower Station 77,610,193.78 77,610,193.78 61,643,360.09 61,643,360.09 Reconstruction of monitoring system of Three Gorges Left Bank Power Station 45,137,506.60 45,137,506.60 33,116,587.03 33,116,587.03 Reconstruction of 220kV switchyard in Gezhouba Hydropower Station 43,079,364.15 43,079,364.15 75,903,756.68 75,903,756.68 BALNEARIOS—MONTERRICO Transmission Line Project 40,538,164.32 40,538,164.32 INDUSTRIALES-INGENIEROS 60KV Transmission Line Project 31,098,757.04 31,098,757.04 GCB switches added at the outlet of 6 generators of the Three Gorges Left Bank Power Station 29,519,374.10 29,519,374.10 Pachacutec 220/60 kV substation project 270,942,739.53 270,942,739.53 Progreso 220/22,9/10 kV substation project 113,494,623.02 113,494,623.02 Miscellaneous 870,530,290.96 870,530,290.96 878,058,372.53 878,058,372.53 Total 2,890,730,789.56 2,890,730,789.56 2,978,656,023.35 2,978,656,023.35 2021 Annual Report 186 / 292 Note: Fixed assets are transferred in when main works of Xiangjiaba Hydropower Station achieve the predetermined usable state, and the accounting of construction in progress is closing works construction of Xiangjiaba Project. (2) Changes of major construction in progress in the current year Unit: yuan Currency: RMB Project Name Opening balance Increase in the current year Decrease in the current year Ending balance Transferred to fixed assets Other decreases Xiangjiaba Hydropower Project 1,485,013,496.49 59,195,007.72 1,544,208,504.21 Reconstruction of 170MW hydraulic generator set in Gezhouba Hydropower Station 30,963,713.88 102,349,748.80 94,587.18 133,218,875.50 Renovation, reconstruction and capacity increase of hydraulic generator set in Gezhouba Hydropower Station 61,643,360.09 76,597,439.58 60,630,605.89 77,610,193.78 Reconstruction of monitoring system of Three Gorges Left Bank Power Station 33,116,587.03 12,020,919.57 45,137,506.60 Reconstruction of 220kV switchyard in Gezhouba Hydropower Station 75,903,756.68 28,040,920.78 53,180,619.77 7,684,693.54 43,079,364.15 GCB switches added at the outlet of 6 generators of the Three Gorges Left Bank Power Station 29,519,374.10 29,519,374.10 INDUSTRIALES-INGENIEROS 60KV Transmission Line Project 32,478,890.91 1,380,133.87 31,098,757.04 BALNEARIOS -MONTERICO Transmission Line Project 42,337,210.29 1,799,045.97 40,538,164.32 SAN JUAN—BALNEARIOS Transmission Line Project 109,982,654.24 4,673,521.24 105,309,133.00 Total 1,716,160,288.27 463,002,791.89 143,425,186.94 15,537,394.62 2,020,200,498.60 2021 Annual Report 187 / 292 (Continued) Unit: yuan Currency: RMB Project Name Budget Ratio of accumulative investment to budget (%) Works Schedule (%) Accumulated amount of capitalization of interest Including: Amount of capitalized interest in current year Capitalization rate of interest in current year (%) Source of funds Xiangjiaba Hydropower Project 54,165,000,000.00 Self-raised Reconstruction of 170MW hydraulic generator set in Gezhouba Hydropower Station 471,500,000.00 28.28 28.00 Self-raised Renovation, reconstruction and capacity increase of hydraulic generator set in Gezhouba Hydropower Station 1,800,000,000.00 82.88 97.50 Self-raised Reconstruction of monitoring system of Three Gorges Left Bank Power Station 70,000,000.00 64.48 75.00 Self-raised Reconstruction of 220kV switchyard in Gezhouba Hydropower Station 393,350,000.00 64.45 95.12 Self-raised GCB switches added at the outlet of 6 generators of the Three Gorges Left Bank Power Station 40,000,000.00 73.79 100.00 Self-raised INDUSTRIALES-INGENIEROS 60KV Transmission Line Project 33,618,221.82 92.51 92.51 1,307,716.91 1,307,716.91 4.80 Borrowing BALNEARIOS -MONTERICO Transmission Line Project 41,035,650.36 98.79 98.79 1,704,648.05 1,704,648.05 4.80 Borrowing SAN JUAN—BALNEARIOS Transmission Line Project 107,458,298.98 98.00 100.00 4,428,294.10 4,428,294.10 4.80 Borrowing Total 57,121,962,171.16 — — 7,440,659.06 7,440,659.06 — — 2021 Annual Report 188 / 292 13.2.Construction materials Unit: yuan Currency: RMB Items Ending balance Opening balance Book balance Impairment provision Book value Book balance Impairment provision Book value Engineering materials 846,134.08 846,134.08 14,812,476.85 14,812,476.85 Total 846,134.08 846,134.08 14,812,476.85 14,812,476.85 2021 Annual Report 189 / 292 14. Right-of-use assets Unit: yuan Currency: RMB Items Land, premises and buildings Machinery equipment Total I. Original book value 1. Opening balance 675,014,226.26 675,014,226.26 2. Increase in the current year 26,069,728.81 14,992,503.60 41,062,232.41 (1) Rented 26,069,728.81 14,992,503.60 41,062,232.41 (2) Increase due to business combination 3. Decrease in the current year (1) Disposal 4. Translation of foreign currency statements -2,170,904.07 -1,702,067.60 -3,872,971.67 5. Closing balance 698,913,051.00 13,290,436.00 712,203,487.00 II. Accumulated depreciation 1. Opening balance 2. Increase in the current year 64,534,933.31 12,698,961.65 77,233,894.96 (1) Provision 64,534,933.31 12,698,961.65 77,233,894.96 3. Decrease in the current year (1) Disposal 4. Translation of foreign currency statements -638,037.65 -1,408,853.45 -2,046,891.10 5. Closing balance 63,896,895.66 11,290,108.20 75,187,003.86 III. Impairment provision 1. Opening balance 2. Increase in the current year 3. Decrease in the current year 4. Translation of foreign 2021 Annual Report 190 / 292 Items Land, premises and buildings Machinery equipment Total currency statements 5. Closing balance IV. Book value 1. Closing book value 635,016,155.34 2,000,327.80 637,016,483.14 2. Opening book value 675,014,226.26 675,014,226.26 2021 Annual Report 191 / 292 15. Intangible assets Unit: yuan Currency: RMB Items Land use right Software and other Parking space use right Concessions (note) Total I. Original book value 1. Opening balance 122,644,899.00 359,492,714.26 99,131,678.96 20,292,775,372.89 20,874,044,665.11 2. Increase in the current year 89,986,264.08 2,666,445.21 11,843,705.43 104,496,414.72 (1) Purchase 89,986,264.08 2,666,445.21 11,843,705.43 104,496,414.72 (2) Internal R&D 3. Decrease in the current year 13,247,070.63 13,247,070.63 (1) Disposal, obsolescence and other 13,247,070.63 13,247,070.63 4. Changes in the scope of business combination 5. Translation of foreign currency statements -9,977,183.47 -471,314,607.09 -481,291,790.56 6. Closing balance 122,644,899.00 426,254,724.24 101,798,124.17 19,833,304,471.23 20,484,002,218.64 II. Accumulated amortization 1. Opening balance 21,490,170.96 229,875,942.11 8,353,132.40 259,719,245.47 2. Increase in the current year 3,076,393.48 58,128,797.44 2,505,298.00 63,710,488.92 (1) Provision 3,076,393.48 58,128,797.44 2,505,298.00 63,710,488.92 3. Decrease in the current year 13,247,070.63 13,247,070.63 2021 Annual Report 192 / 292 Items Land use right Software and other Parking space use right Concessions (note) Total (1) Disposal, obsolescence and other 13,247,070.63 13,247,070.63 4. Changes in the scope of business combination 5. Translation of foreign currency statements -7,600,422.36 -7,600,422.36 6. Closing balance 24,566,564.44 267,157,246.56 10,858,430.40 302,582,241.40 III. Impairment provision 1. Opening balance 2. Increase in the current year 3. Decrease in the current year 4. Changes in the scope of business combination 5. Translation of foreign currency statements 6. Closing balance IV. Book value 1. Closing book value 98,078,334.56 159,097,477.68 90,939,693.77 19,833,304,471.23 20,181,419,977.24 2. Opening book value 101,154,728.04 129,616,772.15 90,778,546.56 20,292,775,372.89 20,614,325,419.64 Note: The Company acquired Peruvian Companies in 2020, whose core assets are transmission and distribution assets in the Peruvian region. According to the relevant local laws in Peru, the transmission and distribution business concessions have no expiry date and are intangible assets with indefinite service life. At 2021 Annual Report 193 / 292 the end of the year, the Company engaged a third-party intermediary to perform an impairment assessment on the asset group in which the intangible assets with indefinite service life are listed. And there was no impairment, as detailed in "VI.16(3)". 2021 Annual Report 194 / 292 16. Goodwill (1) Original value of goodwill Unit: yuan Currency: RMB Name of the investee Opening balance Increase in the current year Decrease in the current year Ending balance Formed by business combinat ion Misc ellan eous Disp osal Miscellaneo us Peru Company 1,010,349,814.92 23,102,912.29 987,246,902.63 Total 1,010,349,814.92 23,102,912.29 987,246,902.63 Note: Decrease for the year - other represents the effect of exchange rate changes. (2) Information on the assets group or combination of assets groups which goodwill belongs to Based on factors such as operating business characteristics and cash flows, the Company divided Peruvian Companies into the transmission and distribution asset group and power generation asset group, and the goodwill was allocated to these two asset groups based on the proportion of the fair value of the asset groups. There was no change in the classification of asset groups during the year. (3) Description of impairment of goodwill test process, key parameters and recognition methods of losses in impairment of goodwill At the end of the year, the Company engaged a third-party intermediary to perform an impairment assessment on the asset group in which the goodwill is listed. Based on the historical operation and future operation expectation of the asset group, the recoverable amount of the asset group is not less than USD5,352,379,100, which is higher than its book value of USD5,059,848,300; therefore, there is no impairment of goodwill. 2021 Annual Report 195 / 292 17. Deferred income tax assets and deferred income tax liabilities (1) Deferred income tax assets not offset Unit: yuan Currency: RMB Items Ending balance Opening balance Deductible temporary difference Deferred income tax assets Deductible temporary difference Deferred income tax assets Provision for impairment of assets 270,167,806.02 64,261,532.94 323,118,712.98 74,776,102.55 Depreciation of fixed assets 803,655,748.64 121,037,148.71 551,060,215.03 50,647,382.21 Social function transfer costs (Note 1) 3,591,754.61 897,938.65 1,344,397,357.72 205,652,742.93 Accrued expenses 141,360,540.00 21,204,081.00 151,947,852.00 22,792,177.80 Government Grants 5,259,207.54 1,314,801.89 5,614,119.30 1,403,529.83 Employees' remuneration of Peruvian Companies 25,663,903.55 7,570,851.55 28,569,765.25 8,428,080.75 Other items of Peruvian Companies 87,072,346.97 25,686,348.31 73,043,529.01 21,547,841.06 Total 1,336,771,307.33 241,972,703.05 2,477,751,551.29 385,247,857.13 Note: The decrease in this year was mainly due to the transfer of the connection roads for Xiluodu and Xiangjiaba Hydropower Stations to the government, as described in Note "VI(34)". (2) Deferred income tax liabilities not offset Unit: yuan Currency: RMB Items Ending balance Opening balance Taxable temporary difference Deferred income tax liabilities Taxable temporary difference Deferred income tax liabilities Changes in fair value of other non-current financial assets 10,455,056.70 2,611,375.67 99,761,870.00 24,940,467.50 Changes in 2,072,869,194.26 518,217,298.56 2,450,790,989.64 612,697,747.41 2021 Annual Report 196 / 292 Items Ending balance Opening balance Taxable temporary difference Deferred income tax liabilities Taxable temporary difference Deferred income tax liabilities fair value of investment by other equity instruments Depreciation of fixed assets 598,280,030.92 149,570,007.73 Projects of Peruvian Companies 4,273,848,800.65 1,260,784,403.66 4,483,957,517.33 1,322,767,467.61 Total 6,955,453,082.53 1,931,183,085.62 7,034,510,376.97 1,960,405,682.52 (3) Unrecognized deferred income tax assets details Unit: yuan Currency: RMB Items Ending balance Opening balance Deductible temporary difference 311,276,274.42 602,077,885.51 Deductible losses 52,281,675.20 112,372.96 Total 363,557,949.62 602,190,258.47 18. Short-term borrowings Unit: yuan Currency: RMB Category of borrowings Ending balance Opening balance Guaranteed borrowings 1,892,221,000.00 Credit borrowings 12,315,812,640.00 22,165,407,342.50 Total 12,315,812,640.00 24,057,628,342.50 19. Financial liabilities held for trading Unit: yuan Currency: RMB Items Opening balance Increase in the current year Decrease in the current year Ending balance Financial liabilities held for trading 640,897,029.23 640,897,029.23 Including: Options of exchangeable bonds 640,897,029.23 640,897,029.23 2021 Annual Report 197 / 292 Items Opening balance Increase in the current year Decrease in the current year Ending balance Total 640,897,029.23 640,897,029.23 Note: The decrease in the year was due to the repayment of the Company's exchangeable bonds when they became due. 20. Accounts payable Unit: yuan Currency: RMB Items Ending balance Opening balance Within 1 year 680,434,521.38 862,834,503.47 1-2 years 1,971,500.06 1,565,560.87 2-3 years 114,503.22 3,188,816.24 Over 3 years 212,244.88 82,355.58 Total 682,732,769.54 867,671,236.16 Note: The accounts payable at the end of the period are mainly electricity purchase funds of Peruvian Companies. 21. Employee compensation payable (1) Classification of employee benefits payable Unit: yuan Currency: RMB Items Opening balance Increase in the current year Decrease in the current year Ending balance Short-term compensatio n 212,137,672.80 2,733,889,285.87 2,695,452,998.41 250,573,960.26 Post-employ ment welfare - defined contribution plan 2,730,955.69 247,923,119.99 247,535,260.66 3,118,815.02 Dismissal welfare 4,362,545.80 5,708,738.04 9,569,003.05 502,280.79 Total 219,231,174.29 2,987,521,143.90 2,952,557,262.12 254,195,056.07 2021 Annual Report 198 / 292 (2) Short-term compensation Unit: yuan Currency: RMB Items Opening balance Increase in the current year Decrease in the current year Ending balance Salary, bonus, allowance and subsidy 20,481,980.58 2,047,147,695.61 2,033,307,227.69 34,322,448.50 Employee welfare expenses 5,976,133.29 245,378,445.19 248,353,718.96 3,000,859.52 Social insurance premiums 4,166,666.89 157,946,537.64 158,238,700.87 3,874,503.66 Including: medical insurance premium 2,470,626.27 148,887,645.76 148,216,410.95 3,141,861.08 Work-related injury insurance premium 28,443.47 3,489,952.78 3,518,396.25 Maternity insurance premium 4,420,385.39 4,420,385.39 Miscellaneous 1,667,597.15 1,148,553.71 2,083,508.28 732,642.58 Housing provident fund 119,995,043.87 119,995,043.87 Labor union expenditure & personnel education fund 111,732,321.02 71,764,531.37 40,918,653.85 142,578,198.54 Short-term profit sharing plan 69,780,571.02 69,703,937.07 72,686,558.05 66,797,950.04 Other short-term benefits 21,953,095.12 21,953,095.12 Total 212,137,672.80 2,733,889,285.87 2,695,452,998.41 250,573,960.26 (3) Defined contribution plans Unit: yuan Currency: RMB Items Opening balance Increase in the current year Decrease in the current year Ending balance Basic endowment insurance 2,385,861.51 148,452,790.31 147,719,836.80 3,118,815.02 Unemployment insurance 4,817,902.50 4,817,902.50 2021 Annual Report 199 / 292 Items Opening balance Increase in the current year Decrease in the current year Ending balance premium Enterprise annuity payment 345,094.18 94,652,427.18 94,997,521.36 Total 2,730,955.69 247,923,119.99 247,535,260.66 3,118,815.02 22. Taxes payable Unit: yuan Currency: RMB Items Ending balance Opening balance Value-added tax (VAT) 1,928,606,817.22 1,771,618,935.33 Water resources tax 88,899,967.83 84,477,127.01 Enterprise income tax 1,941,732,250.48 1,740,507,264.91 Individual income tax 94,173,211.67 40,527,856.06 City maintenance and construction tax 79,117,589.24 48,761,003.59 Property tax 172,668,900.38 173,255,002.86 Land use tax 165,661,733.04 176,249,045.04 Educational surcharge 50,009,979.30 23,836,339.53 Peruvian IGV tax 148,895,972.96 159,036,867.30 Miscellaneous 46,644,281.82 17,175,057.81 Total 4,716,410,703.94 4,235,444,499.44 23. Other payables Unit: yuan Currency: RMB Items Ending balance Opening balance Interest payable 1,022,278,878.81 1,091,987,201.14 Dividends payable 27,118,308.84 36,473,316.08 Other payables 12,420,890,334.88 15,831,729,269.46 Total 13,470,287,522.53 16,960,189,786.68 23.1Interests payable Unit: yuan Currency: RMB Items Ending balance Opening balance Long-term borrowing interests with 110,932,288.12 144,913,993.70 2021 Annual Report 200 / 292 Items Ending balance Opening balance interest paid by installment and principal repaid due Interest of enterprise bond 772,241,811.75 854,358,367.81 Interest payable on short-term commercial paper 120,144,383.54 57,586,301.35 Interest payable of short-term borrowings 18,960,395.40 35,128,538.28 Total 1,022,278,878.81 1,091,987,201.14 23.2 Other payables (1) Classification of other payables by nature Unit: yuan Currency: RMB Payment nature Ending balance Opening balance Project funds 10,412,152,730.41 12,080,023,651.03 Guarantee deposit and security deposit 337,788,203.25 495,415,527.99 Amount to be paid 1,615,380,033.33 3,083,967,956.79 Other payments 55,569,367.89 172,322,133.65 Total 12,420,890,334.88 15,831,729,269.46 (2) Other payables with significant amount and age of over 1 year Unit: yuan Currency: RMB Company Name Ending balance Reasons for not repaying or carrying forward China Gezhouba Group Co., Ltd. 55,962,105.17 Unsettled Sinohydro Engineering Bureau 8 Co., Ltd. 29,666,160.34 Unsettled Sinohydro Bureau 14 Co., Ltd. 23,121,542.41 Unsettled Sinohydro Bureau 7 Co., Ltd. 21,705,378.57 Unsettled Sichuan Transportation Construction Group Co., Ltd. 15,698,016.58 Unsettled Total 146,153,203.07 — 24. Current portion of non-current liabilities Unit: yuan Currency: RMB Items Ending balance Opening balance 2021 Annual Report 201 / 292 Items Ending balance Opening balance Current portion of long-term borrowings 7,130,973,008.30 8,600,000,000.00 Current portion of bonds payable 10,256,856,642.21 15,324,325,034.79 Current portion of lease liabilities 52,299,032.23 41,331,776.89 Total 17,440,128,682.74 23,965,656,811.68 25. Other current liabilities (1) Classification of other current liabilities Unit: yuan Currency: RMB Items Ending balance Opening balance Short-term commercial paper 4,501,867,149.11 7,500,526,902.22 Output VAT to be carried forward 192,774.18 6,358.36 Total 4,502,059,923.29 7,500,533,260.58 2021 Annual Report 202 / 292 (2) Short-term bonds payable Unit: yuan Currency: RMB Bond name Par value Date of issuance Bond term Amount issued Opening balance Issuance in the current year Interest accrued at par value Amortization of premiums and discounts Repayment in this year Ending balance First issue of the Short-term Commercial Paper 2020 100.00 2020-05-14 1 year 2,500,000,000.00 2,498,964,099.26 16,421,232.90 1,035,900.74 2,500,000,000.00 Second issue of the Short-term Commercial Paper 2020 100.00 2020-08-24 1 year 2,500,000,000.00 2,501,139,726.04 48,211,643.83 -1,139,726.04 2,500,000,000.00 Fifth issue of the Super & Short-term Commercial Paper 2020 100.00 2020-12-08 130 days 2,500,000,000.00 2,500,423,076.92 20,712,328.77 -423,076.92 2,500,000,000.00 2021 Annual Report 203 / 292 Bond name Par value Date of issuance Bond term Amount issued Opening balance Issuance in the current year Interest accrued at par value Amortization of premiums and discounts Repayment in this year Ending balance First issue of the Short-term Commercial Paper 2021 (Note 1) 100.00 2021-01-06 1 year 2,500,000,000.00 2,499,041,509.43 70,864,383.54 2,452,054.80 2,501,493,564.23 Second issue of the short-term commercial paper 2021 (Note 2) 100.00 2021-03-11 1 year 2,000,000,000.00 1,998,773,584.91 49,280,000.00 1,599,999.97 2,000,373,584.88 First issue of the super & short-term commercial paper 2021 (Note 3) 100.00 2021-07-07 120 days 2,500,000,000.00 2,499,213,836.48 20,958,904.11 786,163.52 2,500,000,000.00 2021 Annual Report 204 / 292 Bond name Par value Date of issuance Bond term Amount issued Opening balance Issuance in the current year Interest accrued at par value Amortization of premiums and discounts Repayment in this year Ending balance Second issue of the super & short-term commercial paper 2021 (Note 4) 100.00 2021-07-09 110 days 1,500,000,000.00 1,499,541,666.67 11,075,342.47 458,333.33 1,500,000,000.00 Third issue of the super & short-term commercial paper 2021 (Note 5) 100.00 2021-07-08 160 days 2,000,000,000.00 1,999,161,425.58 23,145,205.48 838,574.42 2,000,000,000.00 Total 18,000,000,000.00 7,500,526,902.22 10,495,732,023.07 260,669,041.10 5,608,223.82 13,500,000,000.00 4,501,867,149.11 Note 1: The Company issued the Short-term Commercial Paper 2021 (first issue) of China Yangtze Power Co., Ltd. on January 6, 2021 with the issuing amount of RMB 2.5 billion, the term is 365 days and the coupon rate is 2.89%. The value date was January 8, 2021, the cashing date is January 8, 2022 and the principal and interest repayment will be made one time when due. 2021 Annual Report 205 / 292 Note 2: The Company issued the Short-term Commercial Paper 2021 (second issue) of China Yangtze Power Co., Ltd. on March 11, 2021 with the issuing amount of RMB 2.0 billion, the term is 365 days and the coupon rate is 3.08%. The value date was March 15, 2021, the cashing date was March 15, 2022 and the principal and interest repayment will be made one time when due. Note 3: The Company issued the 2021 Phase I super & short-term commercial paper of China Yangtze Power Co., Ltd. on July 7, 2021 with the issuing amount of RMB 2.5 billion, the term of 120 days and the coupon rate of 2.55%. The value date was July 9, 2021, the payment date was November 6, 2021, and the method for the payment of the principal of and interest on the bonds was paying the principal of and interest on the bonds in full at maturity. Note 4: The Company issued the second batch of the Super & Short-term Commercial Paper 2021 of China Yangtze Power Co., Ltd. on July 9, 2021 with the issuing amount of RMB 1.5 billion, the term is 110 days and the coupon rate is 2.45%. The interest commencement date was July 12, 2021 and the repayment date is October 30, 2021 and the principal and interest of the commercial paper will be fully repayable upon the maturity of the commercial paper. Note 5: The Company issued the third batch of the Super & Short-term Commercial Paper 2021 of China Yangtze Power Co., Ltd. on July 8, 2021 with the issuing amount of RMB 2 billion, the term is 160 days and the coupon rate is 2.64%. The interest commencement date was July 12, 2021 and the repayment date is December 19, 2021 and the principal and interest of the commercial paper will be fully repayable upon the maturity of the commercial paper. 2021 Annual Report 206 / 292 26. Long-term borrowings Unit: yuan Currency: RMB Category of borrowings Ending balance Opening balance Mortgage loans 25,380,000.00 Credit borrowings 36,413,993,166.26 14,447,141,791.44 Total 36,439,373,166.26 14,447,141,791.44 27. Bonds payable (1) Classification of bonds payable Unit: yuan Currency: RMB Items Ending balance Opening balance Other bonds payable 44,235,754,153.20 52,851,382,109.82 Less: Current portion of bonds payable 10,256,856,642.21 15,324,325,034.79 Total 33,978,897,510.99 37,527,057,075.03 2021 Annual Report 207 / 292 (2) Increase or decrease in bonds payable Unit: yuan Currency: RMB Bond name Par value Date of issuance Bond term Amount issued Opening balance Issuance in the current year 02 CTG bond 100.00 2002/9/20 20 years 5,000,000,000.00 4,995,423,457.99 03 CTG bond 100.00 2003/8/1 30 years 3,000,000,000.00 2,986,531,173.62 15 CYPC MTN001 100.00 2015/9/10 10 years 3,000,000,000.00 2,989,847,468.01 18 CYPC MTN001 100.00 2018/12/3 5 years 2,000,000,000.00 1,996,830,312.61 16 CYPC bond 01 100.00 2016/10/1 4 10 years 3,000,000,000.00 2,998,745,925.70 19 CYPC bond 01 100.00 2019/2/18 3 years 3,000,000,000.00 2,999,421,959.77 19 CYPC MTN001 100.00 2019/3/13 5 years 3,000,000,000.00 2,994,750,813.27 19 CYPC MTN002 100.00 2019/8/7 5 years 2,000,000,000.00 1,996,017,783.58 19 CYPC bond 02 100.00 2019/9/3 5 years 2,000,000,000.00 1,999,186,479.53 19 CYPC bond 03 100.00 2019/12/5 3 years 2,000,000,000.00 1,999,297,121.64 20 CYPC bond 01 100.00 2020/1/7 3 years 1,500,000,000.00 1,499,445,742.65 20 CYPC bond 02 100.00 2020/1/7 5 years 500,000,000.00 499,775,930.22 20 CYPC (EPCB) MTN001 100.00 2020/3/12 3 years 2,500,000,000.00 2,494,917,678.99 20 CYPC MTN002 100.00 2020/4/13 5 years 2,500,000,000.00 2,498,185,222.87 21 CYPC MTN001 (Note 1) 100.00 2021/4/7 3 years 2,500,000,000.00 2,496,905,660.38 21 CYPC MTN002 100.00 2021/5/6 3 years 1,000,000,000.00 999,126,415.09 2021 Annual Report 208 / 292 Bond name Par value Date of issuance Bond term Amount issued Opening balance Issuance in the current year (Sustainability-linked) (Note 2) G21 CYPC 1 (Note 3) 100.00 2021/6/17 5 years 1,500,000,000.00 1,499,660,377.36 21 CYPC bond 01 (Note 4) 100.00 2021/11/8 3 years 2,000,000,000.00 1,999,547,169.80 B.C.LUZ DEL SUR 2P 6EM S-U-SECOND Sol 77,580,000.00 2012/10/2 9 10 years Sol 77,580,000.00 139,661,060.62 B.C.LUZ DEL SUR 2P 10EM S-U-SECOND Sol 84,570,000.00 2014/2/12 8 years Sol 84,570,000.00 152,244,597.79 B.C.LUZ DEL SUR 3P1EM S-A-THIRD Sol 138,950,000.00 2014/6/5 10 years Sol 138,950,000.00 250,140,556.49 B.C.LUZ DEL SUR 3P2EM S-A-THIRD Sol 81,175,000.00 2015/9/3 11 years Sol 81,175,000.00 146,132,851.19 B.C.LUZ DEL SUR 3P3EM S-A-THIRD Sol 143,150,000.00 2014/9/22 15 years Sol 143,150,000.00 257,701,480.12 B.C.LUZ DEL SUR 3P4EM S-A-THIRD Sol 164,100,000.00 2016/7/14 9 years Sol 164,100,000.00 295,416,087.23 B.C.LUZ DEL SUR 3P5EM S-A-THIRD Sol 162,450,000.00 2017/2/7 6 years Sol 162,450,000.00 292,445,724.38 B.C.LUZ DEL SUR 3P6EM S-A-THIRD Sol 161,800,000.00 2017/12/1 4 10 years Sol 161,800,000.00 291,275,581.44 B.C.LUZ DEL SUR 3P7EM S-A-THIRD Sol 167,350,000.00 2018/10/3 0 10 years Sol 167,350,000.00 301,266,730.19 2021 Annual Report 209 / 292 Bond name Par value Date of issuance Bond term Amount issued Opening balance Issuance in the current year B.C.LUZ DEL SUR 3P8EM S-A-THIRD Sol 82,800,000.00 2019/4/3 7 years Sol 82,800,000.00 149,058,208.55 B.C.LUZ DEL SUR 4P1EM S-A-FOURTH Sol 168,500,000.00 2019/10/1 7 15 years Sol 168,500,000.00 303,337,126.58 Total 37,527,057,075.03 6,995,239,622.63 (Continued) Unit: yuan Currency: RMB Bond name Interest accrued at par value Amortization of premiums and discounts Decrease in the current year Ending balance 02 CTG bond 238,000,000.00 2,664,175.22 4,998,087,633.21 03 CTG bond 145,800,000.00 1,069,885.02 2,987,601,058.64 15 CYPC MTN001 135,000,000.00 2,158,226.12 2,992,005,694.13 18 CYPC MTN001 76,793,506.85 1,199,342.83 10,000,000.00 1,988,029,655.44 16 CYPC bond 01 100,500,000.00 239,868.57 2,998,985,794.27 19 CYPC bond 01 103,500,000.00 599,452.55 3,000,021,412.32 19 CYPC MTN001 109,500,000.00 1,798,029.56 2,996,548,842.83 19 CYPC MTN002 68,000,000.00 1,198,686.37 1,997,216,469.95 19 CYPC bond 02 76,000,000.00 239,737.27 1,999,426,216.80 19 CYPC bond 03 69,800,000.00 399,635.04 1,999,696,756.68 20 CYPC bond 01 50,550,000.00 299,726.28 1,499,745,468.93 20 CYPC bond 02 18,500,000.00 59,934.32 499,835,864.54 20 CYPC (EPCB) MTN001 73,750,000.00 2,500,000.00 2,497,417,678.99 20 CYPC MTN002 76,750,000.00 -2,689,500.72 2,495,495,722.15 2021 Annual Report 210 / 292 Bond name Interest accrued at par value Amortization of premiums and discounts Decrease in the current year Ending balance 21 CYPC MTN001 (Note 1) 64,555,479.45 1,400,775.55 2,498,306,435.93 21 CYPC MTN002 (Sustainability-linked) (Note 2) 21,983,561.64 495,255.47 999,621,670.56 G21 CYPC 1 (Note 3) 30,197,671.23 38,838.99 1,499,699,216.35 21 CYPC bond 01 (Note 4) 8,857,534.25 23,211.68 1,999,570,381.48 B.C.LUZ DEL SUR 2P 6EM S-U-SECOND 6,506,944.92 -15,719,252.62 123,941,808.00 B.C.LUZ DEL SUR 2P 10EM S-U-SECOND 10,006,512.68 -17,135,565.79 135,109,032.00 B.C.LUZ DEL SUR 3P1EM S-A-THIRD 14,845,348.53 -28,154,036.49 221,986,520.00 B.C.LUZ DEL SUR 3P2EM S-A-THIRD 11,347,453.25 -16,447,671.19 129,685,180.00 B.C.LUZ DEL SUR 3P3EM S-A-THIRD 15,722,880.25 -29,005,040.12 228,696,440.00 B.C.LUZ DEL SUR 3P4EM S-A-THIRD 17,040,800.40 -33,249,927.23 262,166,160.00 B.C.LUZ DEL SUR 3P5EM S-A-THIRD 16,545,045.15 -32,915,604.38 259,530,120.00 B.C.LUZ DEL SUR 3P6EM S-A-THIRD 15,347,943.50 -32,783,901.44 258,491,680.00 B.C.LUZ DEL SUR 3P7EM S-A-THIRD 18,715,085.20 -33,908,370.19 267,358,360.00 B.C.LUZ DEL SUR 3P8EM S-A-THIRD 7,606,173.60 -16,776,928.55 132,281,280.00 B.C.LUZ DEL SUR 4P1EM S-A-FOURTH 14,048,645.38 -34,141,526.58 269,195,600.00 Total 1,615,770,586.28 -276,542,544.46 10,266,856,642.21 33,978,897,510.99 Note 1: On April 7, 2021, the Company issued the 2021 Medium-term Note (first issue) of China Yangtze Power Co., Ltd. (21 CYPC MTN001 for short), with the issuing amount of RMB 2.5 billion, the coupon rate of 3.53% and the term of 3 years. The method for the payment of the principal of and interest on the bonds was paying the interest annually and paying the principal and interest of the last issue in full at the cashing date. Note 2: On May 6, 2021, the Company issued the 2021 Medium-term Note (second issue, sustainability-linked) of China Yangtze Power Co., Ltd., 21 CYPC MTN002 for short (sustainability-linked), with the issuing amount of RMB 1 billion, the coupon rate of 3.40% and the term of 3 years. The method for the payment of the principal of and interest on the bonds was paying the interest annually and paying the principal and interest of the last issue in full at the cashing date. 2021 Annual Report 211 / 292 Note 3: On June 17, 2021, the Company issued the 2021 Green Corporate Bonds (first issue) of China Yangtze Power Co., Ltd., G21 CYPC 1 for short, with the issuing amount of RMB 1.5 billion, the coupon rate of 3.73% and the term of 5 years. The method for the payment of the principal of and interest on the bonds was paying the interest annually and paying the principal and interest of the last issue in full at the cashing date. Note 4: On November 8, 2021, the Company issued the 2021 Corporate Bonds (second issue) of China Yangtze Power Co., Ltd., 21 CYPC 01 for short, with the issuing amount of RMB 2 billion, the coupon rate of 3.05% and the term of 3 years. The method for the payment of the principal of and interest on the bonds was paying the interest annually and paying the principal and interest of the last issue in full at the cashing date. 2021 Annual Report 212 / 292 28. Lease liabilities Unit: yuan Currency: RMB Items Ending balance Opening balance Lease payment 908,800,020.83 882,511,670.15 Less: unrecognized financing charges 217,324,527.08 207,497,443.89 Less: current portion of lease liabilities 52,299,032.23 41,331,776.89 Total 639,176,461.52 633,682,449.37 29. Long-term payables Unit: yuan Currency: RMB Items Ending balance Opening balance Long-term payables 11,855,875,004.42 20,080,756,020.71 Total 11,855,875,004.42 20,080,756,020.71 Long-term payables classified by nature of payments Unit: yuan Currency: RMB Payment nature Ending balance Opening balance Advanced project payment of China Three Gorges Corporation 11,832,945,436.94 14,432,945,436.94 Joint Investor Shareholder Loans of Yangtze Andes Holding Co., Limited 22,929,567.48 5,647,810,583.77 Total 11,855,875,004.42 20,080,756,020.71 30. Share capital Unit: yuan Currency: RMB Items Opening balance Increase (+)/decrease (-) in the current year Ending balance Issuan ce of new shares Bonus shares Conversi on of the reserve funds into shares Mi sce lla neo us Sub- total Total shares 22,741,859,230.00 22,741,859,230.00 31. Capital reserve Unit: yuan Currency: RMB 2021 Annual Report 213 / 292 Items Opening balance Increase in the current year Decrease in the current year Ending balance Share premium 56,382,568,475.28 23,176,767.67 56,359,391,707.61 Other capital reserves 545,555,699.66 10,392,849.70 555,948,549.36 Total 56,928,124,174.94 10,392,849.70 23,176,767.67 56,915,340,256.97 Note 1: The decrease in capital surplus for this year was mainly due to the difference between the newly acquired long-term equity investments from the acquisition of the minority equity interests in the subsidiary, Luz del Sur S.A.A., and the net asset portion of the subsidiary to share which is continuously calculated since acquisition date as newly increased holding ratio was used to offset the capital surplus. Note 2: The increase in current year capital for this year was mainly due todue to other changes of owners' equity except for net profit or loss and other comprehensive income of the investees by the equity method. 2021 Annual Report 214 / 292 32. Other comprehensive income Unit: yuan Currency: RMB Items Opening balance Amount incurred in current year Ending balance Amount incurred before income tax in current year Less: Profit and loss included in other comprehensive income at early stage and transferred in the current period Less: Income tax expenses Less: Others After-tax amount attributable to the parent company After-tax amount attributable to minority shareholders I. Other comprehensive incomes not to be reclassified into profits or losses 1,990,126,310.30 -3,903,780.47 -94,480,448.85 31,786,839.75 58,635,220.73 154,607.90 2,048,761,531.03 Inlcuding: changes arising from re-measurement of the defined benefit plan Other comprehensive 441,694,215.72 215,326,942.61 31,786,839.75 183,385,494.96 154,607.90 625,079,710.68 2021 Annual Report 215 / 292 Items Opening balance Amount incurred in current year Ending balance Amount incurred before income tax in current year Less: Profit and loss included in other comprehensive income at early stage and transferred in the current period Less: Income tax expenses Less: Others After-tax amount attributable to the parent company After-tax amount attributable to minority shareholders incomes not to be reclassified through profit or loss under the equity method Changes in fair value of investment by other equity instruments 1,548,432,094.58 -219,230,723.08 -94,480,448.85 -124,750,274.23 1,423,681,820.35 II. Other comprehensive incomes to be reclassified into profits or losses -1,358,410,812.28 -514,054,889.57 -3,121,540.93 -371,434,914.33 -139,498,434.31 -1,729,845,726.61 Including: Other comprehensive income that can be -147,757,807.06 61,233,161.25 -3,121,540.93 64,315,949.96 38,752.22 -83,441,857.10 2021 Annual Report 216 / 292 Items Opening balance Amount incurred in current year Ending balance Amount incurred before income tax in current year Less: Profit and loss included in other comprehensive income at early stage and transferred in the current period Less: Income tax expenses Less: Others After-tax amount attributable to the parent company After-tax amount attributable to minority shareholders transferred to profit or loss under the equity method Exchange differences arising from foreign currency financial statements -1,210,653,005.22 -575,288,050.82 -435,750,864.29 -139,537,186.53 -1,646,403,869.51 Total other comprehensive income 631,715,498.02 -517,958,670.04 -3,121,540.93 -94,480,448.85 31,786,839.75 -312,799,693.60 -139,343,826.41 318,915,804.42 2021 Annual Report 217 / 292 33. Surplus reserve Unit: yuan Currency: RMB Items Opening balance Increase in the current year Decrease in the current year Ending balance Statutory surplus reserves 13,856,359,416.39 13,856,359,416.39 Discretionary surplus reserves 10,462,022,156.76 10,462,022,156.76 Miscellaneous 1,140,860.78 1,140,860.78 Total 24,319,522,433.93 24,319,522,433.93 34. Undistributed profits Unit: yuan Currency: RMB Items Current Year Previous year Closing balance of the previous year 67,815,084,345.02 56,473,906,836.25 Add: adjusted amount of opening undistributed profits 157,107,416.85 Including: changes in accounting policies 157,107,416.85 Opening balance of the current year 67,972,191,761.87 56,473,906,836.25 Add: net profit attributable to owners of parent company in current period 26,272,998,503.24 26,297,890,222.70 Miscellaneous 31,786,839.75 4,252,610.14 Less: statutory surplus reserves appropriated Discretionary surplus reserve withdrawn Appropriation to general risk provision Payable ordinary share dividends (Note 1) 15,919,301,461.00 14,960,000,000.00 Ordinary share dividends transferred into share capital Others (Note 2) 1,589,493,882.91 965,324.07 Closing balance of the current year 76,768,181,760.95 67,815,084,345.02 2021 Annual Report 218 / 292 Note 1: According to the Company's 2020 Profit Distribution Plan reviewed and approved by the general meeting of the Company on May 31, 2021, based on the total quantity of 22,741,859,230 capital stocks, the cash dividend of RMB 7.00 will be distributed for every 10 shares; a total cash dividend of RMB 15,919,301,461.00 will be distributed. Note 2: According to the Notice of the State Council on the Issuance of the Work Plan for Accelerating the Divestiture of Social Functions of State-owned Enterprises and Resolving Historical Legacy Issues (GF [2016] No. 19) and the Guidance of the State-owned Assets Supervision and Administration Commission of the State Council, the Ministry of Civil Affairs, the Ministry of Finance and the Ministry of Housing and Urban-Rural Development on the Separation and Transfer of Municipal and Community Management Functions of State-owned Enterprises (GZFGG [2017] No. 85), Three Gorges Chuanyun Company, a subsidiary of the Company, signed a road handover agreement with Zhaotong Municipal People's Government, Liangshan Prefecture People's Government and Yibin Municipal People's Government respectively to complete the handover of the connection roads for Xiluodu and Xiangjiaba Hydropower Stations, which has resulted in the other decreases and the decrease of undistributed profits in this year. 35. Operating revenues and operating costs Unit: yuan Currency: RMB Items Amount incurred in current year Amount incurred in previous year Income Cost Income Cost Main businesses 54,640,088,714.60 20,560,304,277.58 57,225,317,818.15 20,715,042,596.39 Other businesses 1,006,165,277.23 552,773,356.78 558,049,221.68 434,411,670.05 Total 55,646,253,991.83 21,113,077,634.36 57,783,367,039.83 21,149,454,266.44 36. Taxes and surcharges Unit: yuan Currency: RMB Items Amount incurred in current year Amount incurred in previous year City maintenance and construction tax 384,780,684.17 402,110,929.38 Educational surcharge 188,265,468.11 198,000,927.33 Local educational surcharge 125,513,896.77 115,211,267.29 Property tax 70,694,508.53 59,897,056.19 2021 Annual Report 219 / 292 Items Amount incurred in current year Amount incurred in previous year Stamp duty 20,704,410.38 23,463,766.45 Water resources tax 290,584,435.38 327,624,063.65 Land use tax 63,307,428.52 62,901,394.67 Tax of Peru Company 19,313,998.36 3,375,891.74 Miscellaneous 455,360.38 344,050.93 Total 1,163,620,190.60 1,192,929,347.63 37. Selling and distribution expenses Unit: yuan Currency: RMB Items Amount incurred in current year Amount incurred in previous year Employee Remuneration 106,687,022.60 83,810,039.22 Travel expenses 2,372,366.27 1,650,511.95 Electricity trading center fees 5,230,209.78 5,778,950.65 Labor service costs 16,442,504.51 12,284,977.80 Other Costs 19,687,548.92 11,892,838.80 Total 150,419,652.08 115,417,318.42 38. General and administrative expenses Unit: yuan Currency: RMB Items Amount incurred in current year Amount incurred in previous year Employee Remuneration 554,848,910.83 464,232,151.32 Depreciation of fixed assets 79,180,236.95 112,387,077.72 Amortization of intangible assets and low-value consumables 64,589,841.72 37,449,581.09 Hub specific expenditure 59,908,986.02 57,426,008.45 Repair expenses 353,852,609.42 391,053,028.26 Travel expenses 9,736,494.91 8,895,120.38 Property insurance premiums 8,871,391.14 12,479,088.69 Property management fees 51,339,625.92 46,776,098.96 Intermediary fees 80,035,403.59 76,901,911.54 Office expenses 12,827,252.59 12,665,312.42 Rental fee 17,237,245.83 8,496,729.57 Other Costs 67,337,982.05 64,036,543.05 2021 Annual Report 220 / 292 Items Amount incurred in current year Amount incurred in previous year Total 1,359,765,980.97 1,292,798,651.45 39. R&D expenses Unit: yuan Currency: RMB Items Amount incurred in current year Amount incurred in previous year Employee Remuneration 24,085,740.54 25,549,620.90 Depreciation expense 2,047,922.64 1,716,980.61 Project cost 7,530,236.48 8,825,215.29 Miscellaneous 5,752,935.22 3,476,192.71 Total 39,416,834.88 39,568,009.51 40. Finance costs Unit: yuan Currency: RMB Items Amount incurred in current year Amount incurred in previous year Interest expense 4,802,658,407.18 5,166,955,172.60 Less: interest incomes 117,069,848.87 100,213,191.69 Add: exchange loss 62,681,422.60 -151,653,289.18 Other expenditures 3,099,593.01 70,821,140.35 Total 4,751,369,573.92 4,985,909,832.08 41. Other Incomes Unit: yuan Currency: RMB Sources of other incomes Amount incurred in current year Amount incurred in previous year VAT additional deduction 59,712.94 1,372,999.01 Return of commission for tax withheld 2,721,907.24 3,539,937.07 Shore power projects 354,911.76 365,006.76 Policy Support Fund 734,600.00 605,500.00 Exemption from VAT 2,903.53 3,391.82 Total 3,874,035.47 5,886,834.66 42. Investment income 2021 Annual Report 221 / 292 Unit: yuan Currency: RMB Items Amount incurred in current year Amount incurred in previous year Long-term equity investment incomes calculated at equity method 2,801,782,313.06 3,182,977,402.41 Investment income from disposal of long-term equity investments (Note 1) 550,917,728.36 219,995,152.31 Investment income from holding other non-current financial assets 191,212,601.83 233,407,099.89 Investment income from disposal of other non-current financial assets (Note 2) 1,579,280,167.99 117,288,383.09 Dividend income from investments in other equity instruments during the holding period 231,710,374.30 226,231,419.93 Interest income from creditor's rights investment during the holding period 56,974,906.66 61,109,567.16 Miscellaneous 13,792,013.07 11,747,051.78 Total 5,425,670,105.27 4,052,756,076.57 Note 1: It is mainly the investment income from the disposal of shares of Shanghai Electric Power Co., Ltd. and Sichuan Chuantou Energy Co., Ltd. See Note "VI.8 (Note 1/2)" herein for details. Note 2: It is mainly the investment income generated from the transfer of other non-current financial assets to long-term equity interest investments in Guangxi Guiguan Electric Power Co., Ltd. See Note "VI.8 (Note 3)" herein for details. 43. Gain from changes in fair value Unit: yuan Currency: RMB Source of income from changes in fair value Amount incurred in current year Amount incurred in previous year Other non-current financial assets -10,172,950.96 -279,505,793.86 Financial liabilities held for trading (Note) 345,655,674.90 106,618,735.65 Total 335,482,723.94 -172,887,058.21 Note: See Note "VI.19" herein for details. 44. Credit impairment losses Unit: yuan Currency: RMB 2021 Annual Report 222 / 292 Items Amount incurred in current year Amount incurred in previous year Loss on bad debts of accounts receivable -13,228,381.92 -1,531,903.86 Loss on bad debts of other receivables 1,496,539.17 39,036.81 Total -11,731,842.75 -1,492,867.05 45. Asset impairment losses Unit: yuan Currency: RMB Items Amount incurred in current year Amount incurred in previous year Loss arising from decline in the value of inventories 40,383,396.92 -17,737,932.85 Total 40,383,396.92 -17,737,932.85 46. Revenue from assets disposal (loss to be listed with “-”) Unit: yuan Currency: RMB Items Amount incurred in current year Amount incurred in previous year Amount included in non-recurring profits and losses in the current year Gains from disposal of non-current assets 13,911,487.71 22,038,670.15 13,911,487.71 Including: incomes from disposal of non-current assets not classified as the held-for-sale assets 13,911,487.71 22,038,670.15 13,911,487.71 Including: incomes from disposal of fixed assets 13,911,487.71 22,038,670.15 13,911,487.71 Total 13,911,487.71 22,038,670.15 13,911,487.71 47. Non-operating Incomes (1) List of non-operating revenue 2021 Annual Report 223 / 292 Unit: yuan Currency: RMB Items Amount incurred in current year Amount incurred in previous year Amount included in non-recurring profits and losses in the current year Government subsidies not related to ordinary activities of the enterprise 650,000.00 198,100.00 650,000.00 Miscellaneous 29,651,675.23 50,770,175.16 29,651,675.23 Total 30,301,675.23 50,968,275.16 30,301,675.23 2021 Annual Report 224 / 292 (2) List of government subsidies Unit: yuan Currency: RMB Items Amount incurred in current year Amount incurred in previous year Source and basis Related to assets/incom e Assistance funds of central government finance for three supplies and one property (water supply, power supply, heat supply and property management) 270,000.00 Notice on the Allocation of Subsidy Funds for the Separation and Transfer of "Three Supplies and Property Management" Revenue-rela ted Awards and subsidies for the research and development of the Xiluodu Hydropower Plant in 2021 200,000.00 Notice of Zhaotong Science and Technology Bureau on the Issuance of the Allocation of Awards and Subsidies for the Research and Development Funds in2021 Revenue-rela ted 2019 Star Enterprise Award of Xiangjiaba Power Plant 160,000.00 Notice of the People's Government of Xuzhou District, Yibin City on the Star Enterprises, Excellent Enterprises, and Advanced Enterprises in 2019 Revenue-rela ted Subsidies of research and development investment for the innovation guidance and technology-based enterprise cultivation in 20,000.00 Notice of Zhaotong City Science and Technology Bureau on the Issuance of Transfer Payments for Science and Revenue-rela ted 2021 Annual Report 225 / 292 Items Amount incurred in current year Amount incurred in previous year Source and basis Related to assets/incom e Zhaotong in 2020 Technology Program Projects from Province in 2020 Incentive payments for micro and small service enterprises to enter the scale service enterprises 50,000.00 Rules for the Implementation of the Incentive Policy for Small and Micro Service Industry Enterprises to Enter the Scale Service Industry Enterprises in Wuhan City Revenue-rela ted 2020 Epidemic Subsidy Incentive 148,100.00 Revenue-rela ted Total 650,000.00 198,100.00 48. Non-operating expenses Unit: yuan Currency: RMB Items Amount in the current year Amount in the previous year Amount included in non-recurring profits and losses in the current year Loss of retirement of non-current assets 209,576.64 222,224.19 209,576.64 Donations 239,826,086.50 200,675,000.00 239,826,086.50 Overdue Fine 17,644.79 5,351.74 17,644.79 Fund for research of Chinese sturgeon 2,250,000.00 2,250,000.00 Reservoir maintenance expenses 254,828,224.20 288,114,849.00 Other expenditures 13,393.68 Total 497,131,532.13 491,280,818.61 240,053,307.93 2021 Annual Report 226 / 292 49. Income tax expenses (1) Income tax expenses Unit: yuan Currency: RMB Items Amount incurred in current year Amount incurred in previous year Income tax expense in the current year 5,680,598,075.20 6,038,094,127.20 Deferred income tax expenses 243,302,237.99 -88,815,131.90 Total 5,923,900,313.19 5,949,278,995.30 (2) Adjustment process of accounting profits and income tax expenses Unit: yuan Currency: RMB Items Amount incurred in current year Consolidated total profits in the current year 32,409,344,174.68 Income taxes expense calculated at legal or applicable tax rate 8,102,336,043.67 Effect of different tax rates applicable to subsidiaries -1,181,753,517.25 Effect of income tax during the period before adjustment Effect of non-taxable income -740,671,877.20 Effect of nondeductible cost, expense and loss 30,550,830.06 Effect from using the deductible losses of unrecognized deferred income tax assets Effect from deductible temporary balance or deductible losses of deferred income tax assets unrecognized in the current year 13,019,749.69 Miscellaneous -299,580,915.78 Income tax expenses 5,923,900,313.19 50. Other comprehensive income See relevant contents in “VI. 32 Other comprehensive income” in the Notes for details. 2021 Annual Report 227 / 292 51. Items in the statement of cash flows (1) Other cash received / paid relating to operating / investment / financing activities 1) Cash received relating to other operating activities Unit: yuan Currency: RMB Items Amount incurred in current year Amount incurred in previous year Current accounts 548,855,320.15 423,419,233.38 Interest incomes 117,069,848.87 100,213,191.69 Non-operating Incomes 29,159,425.69 520,143.26 Deferred incomes 145,368.00 Limited monetary funds 1,799,537.98 Miscellaneous 4,269,736.00 4,567,357.66 Total 701,153,868.69 528,865,293.99 2) Cash paid relating to other operating activities Unit: yuan Currency: RMB Items Amount incurred in current year Amount incurred in previous year Current accounts 144,590,373.85 228,445,486.97 General and administrative expenses 409,612,652.85 438,271,483.27 Selling and distribution expenses 9,786,369.25 26,759,569.79 Bank service charges 4,497,920.14 963,225.21 Non-operating expenses 5,351.74 Donations 237,337,816.30 200,675,000.00 Limited monetary funds 5,000,000.00 R&D expense 2,357,002.21 600,461.59 Total 808,182,134.60 900,720,578.57 3) Cash paid relating to other investing activities Unit: yuan Currency: RMB Items Amount incurred in current year Amount incurred in previous year Loss of control of Hi-Tech 190,217,371.81 2021 Annual Report 228 / 292 Items Amount incurred in current year Amount incurred in previous year Total 190,217,371.81 2021 Annual Report 229 / 292 4) Other cash received relating to financing activities Unit: yuan Currency: RMB Items Amount incurred in current year Amount incurred in previous year Joint Investor Shareholder Loans of Yangtze Andes Holding Co., Limited 1,160,432,406.00 5,974,723,001.24 Total 1,160,432,406.00 5,974,723,001.24 5) Cash paid relating to other financing activities Unit: yuan Currency: RMB Items Amount incurred in current year Amount incurred in previous year Payment for acquisition of minority shareholders' equity 3,623,555,518.50 Service charges for issuance of short-term commercial paper and bonds 20,268,731.18 21,028,944.44 Repayment of joint investor shareholder loans of Yangtze Andes Holding Co., Limited and interest thereof 369,585,639.96 Loan guarantee and service charges 19,522,746.17 Payment in installments for buying and constructing fixed assets 3,255,819,810.93 7,672,887,725.27 Payment of lease 81,871,397.49 Miscellaneous 2,755,899.28 11,322,290.06 Total 7,353,856,997.34 7,724,761,705.94 (2) Supplementary information to consolidated cash flow statement Unit: yuan Currency: RMB Items Amount in the current year Amount in the previous year 1. Reconciliation of net profit to cash flows from operating activities: Net profit 26,485,443,861.49 26,506,261,798.82 Add: Asset impairment provision -40,383,396.92 17,737,932.85 Credit impairment losses 11,731,842.75 1,492,867.05 Depreciation/consumption of fixed assets, 11,342,850,437.19 11,603,423,305.42 2021 Annual Report 230 / 292 Items Amount in the current year Amount in the previous year oil and gas assets and bearer biological assets Depreciation of right-of-use assets 77,233,894.96 Amortization of intangible assets 63,710,488.92 33,941,278.87 Amortization of long-term prepaid expenses 13,745,840.10 536,864.54 Loss from disposal of fixed assets, intangible assets and other long-term assets (gains to be listed with “-”) -13,911,487.71 -22,038,670.15 Losses on retirement of fixed assets (gains to be listed with “-”) 94,910.64 222,224.19 Profits and losses of changes in fair value (gains to be listed with “-”) -335,482,723.94 172,887,058.21 Financial expenses (gains to be listed with “-”) 4,864,242,121.91 5,085,012,116.94 Investment losses (gains to be listed with “-”) -5,425,670,105.27 -4,052,756,076.57 Decrease on deferred income tax assets (increases to be listed with “-”) 143,275,154.08 -13,901,101.22 Increases in deferred income tax liabilities (decreases to be listed with “-”) 100,027,083.91 -74,914,030.68 Decreases on inventories (increases to be listed with “-”) -123,854,061.03 37,719,301.45 Decreases in operating receivables (increases to be listed with “-”) -238,520,520.25 -190,232,556.87 Increase on operating payables (decreases to be listed with “-”) -1,192,071,607.57 1,981,722,119.42 Miscellaneous -50,250,031.87 Net cash flows from operating activities 35,732,461,733.26 41,036,864,400.40 2. Significant investment or finance activities not involving cash: Transfer of debt into capital Current portion of convertible corporate bonds Fixed assets acquired under finance leases 3. Net increase / decrease in cash and 2021 Annual Report 231 / 292 Items Amount in the current year Amount in the previous year cash equivalents: Ending balance of cash 9,924,779,599.67 9,224,213,791.79 Less: beginning balance of cash 9,224,213,791.79 7,317,940,980.02 Add: ending balance of cash equivalents Less: opening balance of cash equivalents Net increase in cash and cash equivalents 700,565,807.88 1,906,272,811.77 (3) Cash and cash equivalents Unit: yuan Currency: RMB Items Ending balance Opening balance Cash 9,924,779,599.67 9,224,213,791.79 Including: cash on hand 7,869,287.15 6,680,457.72 Cash at bank available for payments at any time 9,893,319,687.60 9,159,811,937.11 Other cash at bank and on hand available for payment at any time 23,590,624.92 57,721,396.96 Central bank deposits available for payments Inter-bank deposits Due from interbank Cash equivalents Including: investment on bonds due within three months Closing balance of cash and cash equivalents 9,924,779,599.67 9,224,213,791.79 Including: cash and cash equivalents with limited use of the parent company or subsidiaries of the Group 52. Restricted assets Unit: yuan Currency: RMB Items Closing book value Reason Cash and bank balances 5,200,462.02 Performance Guarantee and Performance Security Accounts receivable 481,148.96 Pledge borrowings Fixed assets 51,981,079.25 Mortgage, property certificate in 2021 Annual Report 232 / 292 Items Closing book value Reason process 2021 Annual Report 233 / 292 53. Monetary items in foreign currency (1) Monetary items in foreign currency Unit: yuan Currency: RMB Items Closing balance in foreign currency Exchange rate upon translation Closing balance in RMB (equivalent) Cash and bank balances 1,317,068,686.59 Including: USD 175,049,293.51 6.3757 1,116,061,780.63 EUR 860,498.77 7.2197 6,212,542.97 HKD 110,534,818.64 0.8176 90,373,267.72 PKR 297,345,407.68 0.0359 10,674,700.14 SOL 58,679,516.23 1.5976 93,746,395.13 Accounts receivable 892,018,475.94 Including: USD 3,280,068.01 6.3757 20,912,729.61 PKR 731,409,466.76 0.0359 26,257,599.86 SOL 528,823,326.53 1.5976 844,848,146.47 Other receivables 68,856,109.24 Including: USD 4,210,846.20 6.3757 26,847,092.12 PKR 1,231,022.00 0.0359 44,193.69 SOL 26,267,415.77 1.5976 41,964,823.43 Other current assets 89,897,376.48 Including: USD 332,529.09 6.3757 2,120,105.72 SOL 54,943,209.04 1.5976 87,777,270.76 Debt investments 1,014,594,368.22 Including: EUR 140,531,375.02 7.2197 1,014,594,368.22 Short-term borrowings 1,615,812,640.00 Including: SOL 1,011,400,000.00 1.5976 1,615,812,640.00 Accounts payable 619,294,285.95 Including: PKR 23,822,727.00 0.0359 855,235.90 SOL 387,105,063.88 1.5976 618,439,050.05 Interest payable 94,796,963.72 Including: USD 6,655,815.93 6.3757 42,435,485.64 EUR 640,512.66 7.2197 4,624,309.23 SOL 29,880,551.36 1.5976 47,737,168.85 Dividends payable 27,118,308.84 Including: USD 5,405.00 6.3757 34,460.66 2021 Annual Report 234 / 292 Items Closing balance in foreign currency Exchange rate upon translation Closing balance in RMB (equivalent) SOL 16,952,834.37 1.5976 27,083,848.18 Other payables 42,039,298.70 Including: USD 217,047.63 6.3757 1,383,830.57 HKD 122,964.56 0.8176 100,535.82 PKR 30,015,669.87 0.0359 1,077,562.55 SOL 24,710,421.73 1.5976 39,477,369.76 Current portion of non-current liabilities 397,622,747.89 Including: SOL 248,887,548.76 1.5976 397,622,747.89 Long-term borrowings 6,414,793,166.25 Including: USD 750,000,000.00 6.3757 4,781,775,000.00 EUR 180,000,000.00 7.2197 1,299,571,682.40 SOL 208,717,128.10 1.5976 333,446,483.85 Bonds payable 2,029,391,340.00 Including: SOL 1,270,275,000.00 1.5976 2,029,391,340.00 Long-term payables 22,929,567.48 Including: USD 3,596,400.00 6.3757 22,929,567.48 (2) Group companies incorporated oversea Unit: yuan Currency: RMB Company name Principal place of business Bookkeepin g Base Currency Basis for selection China Yangtze Power International (Hong Kong) Co., Ltd. Hong Kong US Dollar The business is measured and settled primarily in this currency China Three Gorges International Power Operation Co., Ltd. Hong Kong US Dollar The business is measured and settled primarily in this currency Grupo de Contratistas Internacionales S.A.C. Lima, Peru Sol The business is measured and settled primarily in this currency Los Andes Servicios Corporativos S.A.C. Lima, Peru Sol The business is measured and settled primarily in this currency Tecsur S.A. Lima, Peru Sol The business is measured and settled primarily in this currency Luz del Sur S.A.A. Lima, Peru Sol The business is measured and 2021 Annual Report 235 / 292 Company name Principal place of business Bookkeepin g Base Currency Basis for selection settled primarily in this currency Inmobiliaria Luz del Sur S.A. Lima, Peru Sol The business is measured and settled primarily in this currency Inland Energy S.A.C. Lima, Peru Sol The business is measured and settled primarily in this currency 54. Government Grants Unit: yuan Currency: RMB Type Amount Item presented Amount included in the current profits or losses Policy Support Fund 734,600.00 Other Incomes 734,600.00 Shore power projects 354,911.76 Other Incomes 354,911.76 Assistance funds of central government finance for three supplies and one property (water supply, power supply, heat supply and property management) 270,000.00 Non-operating Incomes 270,000.00 Awards and subsidies for the research and development of the Xiluodu Hydropower Plant in 2021 200,000.00 Non-operating Incomes 200,000.00 2019 Star Enterprise Award of Xiangjiaba Power Plant 160,000.00 Non-operating Incomes 160,000.00 Subsidies of research and development investment for the innovation guidance and technology-based enterprise cultivation in Zhaotong in 2020 20,000.00 Non-operating Incomes 20,000.00 Subsidies for employment stabilization 949,400.00 Write-down costs and expenses 949,400.00 2021 Annual Report 236 / 292 VII. Changes in Consolidation Scope 1. Changes in consolidation scope for other reasons S/N Company name Level Reasons 1 CYPC Investment Management Co., Ltd. Grade II Newly established 2 CYPC Xinneng Co., Ltd. Grade II Newly established 3 Three Gorges Electric Energy (Shanghai) Co., Ltd. Level III Newly established 4 Jiangsu Suqian CYPC Smart Energy Co., Ltd. Grade IV Newly established 5 Maanshan CYPC Modern Biomass Energy Co., Ltd. Grade IV Newly established 6 CYPC International Energy Investment (Hainan) Co., Ltd. Level III Newly established 7 Andes Energy Investment Management Co., Ltd. Grade IV Newly established 2021 Annual Report 237 / 292 VIII. Equity in Other Entitie s 1. Equity in subsidiaries (1) Composition of the Enterprise Group Name of subsidiary Principa l place of business Registra tion place Nature of business Shareholding proportion (%) Acquisiti on method direct indirec t CYPC Capital Holding Co., Ltd. Yichang, Hubei Yichang, Hubei Equity investment 100.00 Establish ed by investme nt Beijing Changjiang Juyuan Investment Management Co., Ltd. Beijing Beijing Equity investment 85.00 Establish ed by investme nt Three Gorges Jinsha River Chuanyun Hydropower Development Co., Ltd. Chengdu , Sichuan Chengdu , Sichuan Hydropower development 100.00 Business combinati on Three Gorges Power Co., Ltd. Wuhan, Hubei Wuhan, Hubei Power Distribution and Sales 70.00 Establish ed by investme nt Three Gorges Electric Energy (Hubei) Co., Ltd. Yichang, Hubei Yichang, Hubei Electricity sales, technology investment and development 51.00 Establish ed by investme nt Three Gorges Electric Energy (Shanghai) Co., Ltd. Shanghai Shangha i Electricity and heat production and supply 100.00 Establish ed by investme nt Jiangsu Suqian CYPC Smart Energy Co., Ltd. Suqian, Jiangsu Suqian, Jiangsu Electricity and heat production and supply 100.00 Establish ed by investme nt Maanshan CYPC Modern Biomass Energy Co., Ltd. Ma'ansh an, Ma'ansh an, Electricity and heat production 60.00 Establish ed by 2021 Annual Report 238 / 292 Name of subsidiary Principa l place of business Registra tion place Nature of business Shareholding proportion (%) Acquisiti on method direct indirec t Anhui Anhui and supply investme nt CYPC Sales Ltd. Shanghai Shangha i Electricity and heat production and supply 100.00 Establish ed by investme nt CYPC Investment Management Co., Ltd. Shanghai Shangha i Equity investment 100.00 Establish ed by investme nt CYPC Xinneng Co., Ltd. Wuhan, Hubei Wuhan, Hubei Electricity and heat production and supply 100.00 Establish ed by investme nt China Yangtze Power International (Hong Kong) Co., Ltd. Hong Kong Hong Kong Overseas investment 100.00 Establish ed by investme nt China Three Gorges International Power Operation Co., Ltd. Hong Kong Hong Kong Operation and management of overseas power stations 80.00 Establish ed by investme nt China Yangtze Power International (BVI) 1 Co., Ltd. British Virgin Islands British Virgin Islands Special purpose entity 100.00 Establish ed by investme nt China Yangtze Power International (BVI) 2 Co., Ltd. British Virgin Islands British Virgin Islands Special purpose entity 100.00 Establish ed by investme nt CYPC International Energy Investment (Hainan) Co., Ltd. Sanya Sanya Electricity and heat production and supply 100.00 Establish ed by investme nt 2021 Annual Report 239 / 292 Name of subsidiary Principa l place of business Registra tion place Nature of business Shareholding proportion (%) Acquisiti on method direct indirec t Yangtze Andes Holding Co., Limited Hong Kong Hong Kong Consulting services and operation management of energy investment, distribution, sales and generation 70.03 Establish ed by investme nt Andes Energy Investment Management Co., Ltd. Lima, Peru Lima, Peru Management advisory 100.00 Establish ed by investme nt Grupo de Contratistas Internacionales S.A.C. Lima, Peru Lima, Peru Emergency maintenance 100.00 Business combinati on Los Andes Servicios Corporativos S.A.C. Lima, Peru Lima, Peru Transportation services 100.00 Business combinati on Tecsur S.A. Lima, Peru Lima, Peru Project development and consultation 90.21 Business combinati on Inversiones en Servicios Electricos S.R.L. Lima, Peru Lima, Peru Shareholding platform 100.00 Business combinati on Peruvian Services Company S.R.L. Lima, Peru Lima, Peru Shareholding platform 100.00 Business combinati on Peruvian Services Company II S.R.L. Lima, Peru Lima, Peru Shareholding platform 100.00 Business combinati on Blue River Corp S.A.C. Lima, Peru Lima, Peru Electric power 100.00 Business combinati on Luz del Sur S.A.A. Lima, Lima, transmission and 97.14 Business 2021 Annual Report 240 / 292 Name of subsidiary Principa l place of business Registra tion place Nature of business Shareholding proportion (%) Acquisiti on method direct indirec t Peru Peru distribution combinati on Inmobiliaria Luz del Sur S.A. Lima, Peru Lima, Peru Investment and assets management 100.00 Business combinati on Inland Energy S.A.C. Lima, Peru Lima, Peru Power generation 100.00 Business combinati on Andes Power S.A.C. Lima, Peru Lima, Peru Electric power 100.00 Business combinati on Energy Business International S.R.L. Lima, Peru Lima, Peru Shareholding platform 100.00 Business combinati on Ontario-Quinta S.R.L. Lima, Peru Lima, Peru Shareholding platform 100.00 Business combinati on Andes Bermuda Ltd. Bermuda Bermud a Shareholding platform 100.00 Business combinati on Peruvian Opportunity Company S.A.C. Lima, Peru Lima, Peru Shareholding platform 100.00 Business combinati on 2021 Annual Report 241 / 292 2. Equity in joint ventures or associates (1) Important joint ventures or associates Unit: yuan Currency: RMB Name of joint ventures or associates Principal place of business Registration place Nature of business Proportion of shareholding (%) Accounting treatment methods for investment of joint ventures or associates direct indire ct Associates Guangzhou Development Group Incorporated Guangzh ou Guangzhou Investment in and management of energy, logistics, urban utilities, industries and commerce 13.83 1.52 Equity method Hubei Energy Group Co., Ltd. Hubei Province Hubei Province Wuhan City Energy investment, development and management 25.35 3.26 Equity method Three Gorges Capital Holdings Co., Ltd. Beijing Beijing Industrial investment, equity investment and assets management 10.00 Equity method Sichuan Chuantou Energy Co., Ltd. Chengdu Chengdu Clean energy investment 11.05 Equity method Yunnan Huadian Jinsha River Middle Reaches Hydropower Development Co., Ltd. Kunming Kunming Investment, construction and management of power station 23.00 Equity method 2021 Annual Report 242 / 292 Note: the Company holds 15.35% shares of Guangzhou Development Group Co., Ltd. (GDG), and assigns one director to GDG, and has a significant effect on GDG. The Company holds 10.00% shares of Three Gorges Capital Holdings Co., Ltd., assigns one director to it and has significant effect on it. The Company holds 11.05% shares of Sichuan Chuantou Energy Co., Ltd., being its second largest shareholder, has the right to nominate its directors and has a significant effect on it. 2021 Annual Report 243 / 292 (2) Main financial information of important associates Unit: yuan Currency: RMB Items Closing balance/Amount incurred in the current year Hubei Energy Group Co., Ltd. Guangzhou Development Group Incorporated Yunnan Huadian Jinsha River Middle Reaches Hydropower Development Co., Ltd. Three Gorges Capital Holding Co., Ltd. Sichuan Chuantou Energy Co., Ltd. Current assets 12,318,487,474.41 16,728,567,085.11 1,168,644,912.29 27,448,175,230.21 4,096,174,875.51 Including: cash and cash equivalents 2,142,426,532.12 9,177,546,624.65 532,228,622.81 1,909,701,085.91 1,000,824,853.42 Non-current assets 60,754,835,475.23 41,401,058,061.56 24,559,429,639.68 56,164,175,232.68 44,371,114,424.87 Total assets 73,073,322,949.64 58,129,625,146.67 25,728,074,551.97 83,612,350,462.89 48,467,289,300.38 Current liabilities 14,551,091,411.35 15,122,305,114.25 2,192,202,398.80 18,895,401,529.54 7,824,725,409.60 Non-current liabilities 22,167,207,954.74 16,872,973,185.84 14,993,897,681.08 31,594,048,596.54 8,353,165,299.75 Total liabilities 36,718,299,366.09 31,995,278,300.09 17,186,100,079.88 50,489,450,126.08 16,177,890,709.35 Minority interests 5,935,348,961.62 2,939,847,789.45 6,336,418.60 1,041,984,172.84 Equity attributable to shareholders of the parent company 30,419,674,621.93 23,194,499,057.13 8,535,638,053.49 33,122,900,336.81 31,247,414,418.19 Shares of net assets calculated as per the shareholding proportion 8,703,068,909.33 3,560,355,605.27 1,963,196,752.30 3,312,290,033.68 3,452,839,293.21 Adjustments 119,998,539.33 368,378,437.46 3,128,744,737.97 -49,031,420.78 1,576,336,204.81 --Goodwill 119,909,672.06 346,391,247.01 3,128,744,737.97 1,576,336,204.81 --Unrealized profit of internal transaction 2021 Annual Report 244 / 292 Items Closing balance/Amount incurred in the current year Hubei Energy Group Co., Ltd. Guangzhou Development Group Incorporated Yunnan Huadian Jinsha River Middle Reaches Hydropower Development Co., Ltd. Three Gorges Capital Holding Co., Ltd. Sichuan Chuantou Energy Co., Ltd. --Others 88,867.27 21,987,190.45 -49,031,420.78 Book value of equity investments in associates 8,823,067,448.66 3,928,734,042.73 5,091,941,490.27 3,263,258,612.90 5,029,175,498.02 Fair value of equity investments in associates with public offer 9,757,700,756.92 4,396,354,324.64 6,087,409,000.00 Revenue 22,618,184,700.61 37,910,132,686.01 2,882,664,079.89 1,293,978,088.73 1,263,333,300.61 Finance costs 767,319,761.93 785,057,438.22 780,048,200.59 1,262,701,559.91 403,682,720.99 Income tax expenses 591,474,326.10 -249,263,093.35 25,769,216.70 458,449,790.85 44,204,845.17 Net profit 2,404,878,927.88 -71,691,957.97 465,489,411.42 4,066,284,910.98 3,135,899,135.12 Net profit from discontinued operations -350,009.21 Other comprehensive income -38,671,956.75 129,423,037.86 6,056,300.00 214,995,574.86 1,006,892,732.50 Total comprehensive income 2,366,206,971.13 57,731,079.89 471,545,711.42 4,281,280,485.84 4,142,791,867.62 Dividend received from associates this period 223,458,795.96 92,497,553.86 18,225,200.00 216,700,282.70 235,126,593.34 2021 Annual Report 245 / 292 (Continued) Unit: yuan Currency: RMB Items Opening balance/Amount incurred in the previous year Hubei Energy Group Co., Ltd. Guangzhou Development Group Incorporated Yunnan Huadian Jinsha River Middle Reaches Hydropower Development Co., Ltd. Three Gorges Capital Holdings Co., Ltd. Sichuan Chuantou Energy Co., Ltd. Current assets 5,297,658,504.22 9,550,325,283.86 907,138,290.42 23,747,152,224.53 4,543,299,357.59 Including: cash and cash equivalents 1,013,975,987.67 2,686,133,552.98 310,238,859.66 406,729,928.85 601,386,644.61 Non-current assets 54,950,384,410.43 33,850,343,861.74 25,316,226,002.72 42,998,870,418.48 36,805,668,062.03 Total assets 60,248,042,914.65 43,400,669,145.60 26,223,364,293.14 66,746,022,643.01 41,348,967,419.62 Current liabilities 11,009,417,320.34 8,386,615,925.96 1,856,842,682.11 15,005,481,988.73 5,400,001,687.05 Non-current liabilities 14,180,944,120.97 13,961,610,468.06 16,216,852,850.36 20,924,452,466.46 6,191,423,138.32 Total liabilities 25,190,361,441.31 22,348,226,394.02 18,073,695,532.47 35,929,934,455.19 11,591,424,825.37 Minority interests 6,185,917,516.27 3,093,421,535.02 6,167,234.70 962,061,247.37 Equity attributable to shareholders of the parent company 28,871,763,957.07 17,959,021,216.56 8,143,501,525.97 30,816,088,187.82 28,795,481,346.88 Shares of net assets calculated as per the shareholding proportion 8,260,211,668.12 3,584,620,634.83 1,873,005,350.97 3,081,608,818.78 4,034,246,936.70 Adjustments 119,810,699.06 346,836,451.15 3,128,744,737.97 -49,031,420.78 1,991,669,825.56 --Goodwill 119,909,672.06 346,391,247.01 3,128,744,737.97 1,991,669,825.56 --Unrealized profit of internal transaction 2021 Annual Report 246 / 292 Items Opening balance/Amount incurred in the previous year Hubei Energy Group Co., Ltd. Guangzhou Development Group Incorporated Yunnan Huadian Jinsha River Middle Reaches Hydropower Development Co., Ltd. Three Gorges Capital Holdings Co., Ltd. Sichuan Chuantou Energy Co., Ltd. --Others -98,973.00 445,204.14 -49,031,420.78 Book value of equity investments in associates 8,380,022,367.18 3,931,457,085.98 5,001,750,088.94 3,032,577,398.00 6,025,916,762.26 Fair value of equity investments in associates with public offer 7,225,167,736.04 3,547,553,242.16 6,199,095,079.05 Revenue 17,023,439,111.20 31,645,123,124.53 2,952,056,422.41 894,031,237.51 1,031,120,302.57 Finance costs 709,556,695.38 563,855,649.61 866,576,160.31 1,272,825,763.04 355,693,399.74 Income tax expenses 794,460,838.02 254,896,934.15 70,106,680.16 384,179,277.01 39,952,478.65 Net profit 2,759,225,614.69 1,092,279,134.76 445,828,114.56 3,095,718,323.91 3,209,998,367.37 Net profit from discontinued operations Other comprehensive income -409,028,063.50 20,445,519.78 -1,128,284,368.14 -192,806.58 Total comprehensive income 2,350,197,551.19 1,112,724,654.54 445,828,114.56 1,967,433,955.77 3,209,805,560.79 Dividend received from associates this period 186,215,663.30 27,205,162.90 135,353,223.35 199,351,173.88 2021 Annual Report 247 / 292 (3) Summary of financial information of insignificant joint ventures and associates Unit: yuan Currency: RMB Items Closing balance/Amount incurred in the current year Opening balance/Amount incurred in the previous year Joint venture: Total investment book value 342,948,307.69 254,196,465.68 Total (calculated by shareholding proportion) -- Net profit -2,098,086.19 -9,745,102.88 -- Other comprehensive income -- Total comprehensive income -2,098,086.19 -9,745,102.88 Associates: Total investment book value 34,237,719,208.43 24,273,244,714.54 Total (calculated by shareholding proportion) -- Net profit 1,146,887,711.32 1,482,447,659.54 -- Other comprehensive income 81,746,423.80 18,346,074.51 -- Total comprehensive income 1,228,634,135.12 1,500,793,734.05 (4) Contingent liabilities for investment in joint ventures or associates Hunan Taohuajiang Nuclear Power Co., Ltd. (hereinafter referred to as Taohuajiang Nuclear Power) is an investee company of the Company and the Company holds 19.43% of equity interest to the company. To guarantee the smooth financing of Taohuajiang Nuclear Power Plant, the Company provides financing guarantee for Taohuajiang Nuclear Power Plant. On August 31, 2019, the Company published an announcement relating to Continuing to Provide Financing Guarantee and Related Transactions for Hunan Taohuajiang Nuclear Power Co., Ltd., and agreed to provide the financing guarantee for Taohuajiang Nuclear Power. On October 15, 2019, this guarantee was approved at the second extraordinary general meeting of 2019. On November 25, 2019, the Company signed the guarantee agreement with certain counter parties and the guarantees are general liability guarantee and guarantee period is two years from the expiration of terms of borrowings. Up to December 31, 2021, the Company accordingly bore a guarantee liability of RMB 243,468,000 of the borrowing. 2021 Annual Report 248 / 292 IX. Risks related to financial instruments Operating activities of the Company may be confronted with various financial risks: credit risks, liquidity risks and market risks (mostly exchange rate risks and interest rate risks). The overall risk management plan of the Company strives to reduce the potential adverse effect on the financial performance of the Company according to the unpredictability of financial market. Risk management objectives and policies: 1. Credit risk Credit risks of the Company are mainly from monetary funds, notes receivable, accounts receivable, other receivables and other non-current financial assets, etc. The management has made proper credit policies, and constantly supervises exposure of these credit risks. Monetary funds held by the Company were mainly deposited in financial institution such as state-controlled banks and other large and medium-sized commercial banks etc. The management considers that these commercial banks have higher reputation and assets condition, and without major credit risks, and therefore the Company would not suffer from any heavy loss due to the default by the opposite party. For accounts receivable, other receivables and notes receivable, relevant policy is established by the Company to control credit risk exposure. The Company assesses credit qualification of customers and sets corresponding credit period on the basis of customer’s financial position, possibility of obtaining guarantee from third party, credit record and other factors such as current market condition etc. The Company will monitor the credit record of the customer periodically. For customers with poor credit records, measures such as written collection, shortening credit period or canceling the credit period will be adopted by the Company, to ensure the overall credit risk being in the controllable scope. As of December 31, 2021, accounts receivable of the top five customers of the Company accounted for 76.70% of the total accounts receivable of the Company. The biggest credit risk exposure taken by the Company is carrying amount of each financial assets (including derivative financial instruments) in the balance sheet. Except for financial guarantee made by the Company in Note VIII, the Company did not provide any guarantee that may expose cause the Company to take credit risks. 2. Liquidity risk 2021 Annual Report 249 / 292 Liquidity risk refers tomeans the risk that the Company cannot gain sufficient funds in time to meet the demand of businesses development or pay matured debts and other payment obligations of payment. The finance department of the Company constantly monitors short-term and long-term fund demands of the Company to ensure the maintenance of sufficient cash reserve. Meanwhile they constantly monitor whether commitments to provide sufficient standby facility commitment from major financial institutions to meet short-term and long-term capital requirements are met in accordance with the terms of borrowing agreements... 2021 Annual Report 250 / 292 Expiration date of financial liabilities of the Company remains on balance sheet date is listed as follows: Within 1 year 1-2 years 2-5 years Over 5 years Total Short-term borrowings 12,315,812,640.00 12,315,812,640.00 Accounts payable 14,164,219,697.92 14,164,219,697.92 Current portion of non-current liabilities 17,440,128,682.74 17,440,128,682.74 Other current liabilities 4,501,867,149.11 4,501,867,149.11 Long-term borrowings 333,446,483.86 36,080,546,682.40 25,380,000.00 36,439,373,166.26 Long-term payables 22,929,567.48 11,832,945,436.94 11,855,875,004.42 Bonds payable 6,244,722,923.36 23,722,831,448.99 4,011,343,138.64 33,978,897,510.99 3. Market risk (1) Exchange rate risk The company's rincipal operations lie in China, and its main business is settled in RMB. However, foreign currency assets and liabilities recognized by the Company and future foreign currency transactions (foreign currency assets and liabilities and foreign currency transactions are mainly denominated in HKD, 2021 Annual Report 251 / 292 USD, SOL and Euro) are still subject to exchange rate risks. The Company closely monitors its foreign currency transactions and the scale of foreign currency assets and liabilities to minimize its exposure to exchange rate risks it faces. 1) As of December 31, 2021, the amount of foreign currency financial assets and foreign currency financial liabilities held by the Company that is converted into RMB are set out as follows: Items Ending balance USD items HKD items EUR items PKR items Sol items Total Foreign currency financial assets: Cash and bank balances 1,116,061,780.63 90,373,267.72 6,212,542.97 10,674,700.14 93,746,395.13 1,317,068,686.59 Accounts receivable 20,912,729.61 26,257,599.86 844,848,146.47 892,018,475.94 Other receivables 26,847,092.12 44,193.69 41,964,823.43 68,856,109.24 Other current assets 2,120,105.72 87,777,270.76 89,897,376.48 Other non-current financial assets 496,368,164.03 496,368,164.03 Other equity instrument investments 3,442,437,955.72 3,442,437,955.72 Long-term equity investments 94,675,509.38 94,675,509.38 Debt investments 1,014,594,368.22 1,014,594,368.22 Sub-total 7,415,916,645.60 Foreign currency financial liabilities: Short-term borrowings 1,615,812,640.00 1,615,812,640.00 2021 Annual Report 252 / 292 Items Ending balance USD items HKD items EUR items PKR items Sol items Total Accounts payable 855,235.90 618,439,050.05 619,294,285.95 Interest payable 42,435,485.64 4,624,309.23 47,737,168.85 94,796,963.72 Dividends payable 34,460.66 27,083,848.18 27,118,308.84 Other payables 1,383,830.57 100,535.82 1,077,562.55 39,477,369.76 42,039,298.70 Current portion of non-current liabilities 397,622,747.89 397,622,747.89 Long-term borrowings 4,781,775,000.00 1,299,571,682.40 333,446,483.85 6,414,793,166.25 Bonds payable 2,029,391,340.00 2,029,391,340.00 Long-term payables 22,929,567.48 22,929,567.48 Sub-total 11,263,798,318.83 (Continued) Items Opening balance USD items HKD items EUR items PKR items Sol items Total Foreign currency financial assets: Cash and bank balances 3,308,244,093.97 327,867,114.11 102,961,829.20 8,826,158.76 174,433,913.51 3,922,333,109.55 Accounts receivable 20,391,608.21 21,489,365.00 935,982,605.38 977,863,578.59 Other receivables 10,360,975.82 40,687.73 91,033,877.23 101,435,540.78 Other current assets 743,066.45 95,466,227.09 96,209,293.54 Other non-current financial assets 697,646,273.05 697,646,273.05 Other equity instrument 3,609,195,163.56 3,609,195,163.56 2021 Annual Report 253 / 292 Items Opening balance USD items HKD items EUR items PKR items Sol items Total investments Long-term equity investments 105,656,142.40 105,656,142.40 Debt investments 1,139,169,084.08 1,139,169,084.08 Sub-total 10,649,508,185.55 Foreign currency financial liabilities: Short-term borrowings 3,523,446,000.00 1,334,182,342.50 4,857,628,342.50 Accounts payable 61,758,759.28 3,735,906.87 742,874,588.55 808,369,254.70 Interest payable 96,474,485.69 53,031,567.99 149,506,053.68 Dividends payable 36,473,316.08 36,473,316.08 Financial liabilities held for trading 398,232,264.23 242,664,765.00 640,897,029.23 Other payables 19,108,755.32 91,661.80 5,964,694.42 165,671,580.66 190,836,692.20 Current portion of non-current liabilities 1,810,927,714.33 1,461,014,530.42 199,230,337.44 3,471,172,582.19 Long-term borrowings 447,141,791.44 447,141,791.44 Bonds payable 2,578,680,004.58 2,578,680,004.58 Long-term payables 5,647,810,583.77 5,647,810,583.77 Sub-total 18,828,515,650.37 2) Analysis on sensitivity: 2021 Annual Report 254 / 292 As of December 31, 2021, for various foreign currency financial assets and foreign currency financial liabilities of the Company, if the RMB appreciates or depreciates by 10% against each foreign currency while other factors remain unchanged, the Company's net profit will decrease or increase by approximately RMB 116.3678 million. 2021 Annual Report 255 / 292 (2) Interest rate risk Interest rate risks of the Company are mainly produced in long-term interest-bearing debts such as long-term borrowings and bonds payable etc. Due to financial liabilities with floating interest rate, the Company faces cash flow interest rate risk; due to financial liabilities with fixed interest rate, the Company faces fair value interest rate risk. The Company decides the relative proportion of the fixed interest rate and floating interest rate contracts in accordance with the current market environment. The finance department of the Company constantly monitors interest rate level of the Company. Rising of interest rates would add costs of new interest-bearing debts and interest exchange of unsettled interest-bearing debts of the Company calculated as per the floating interest rate, and would have adverse effects on financial performance of the Company. The management would make timely adjustments according to the latest market condition to reduce interest rate risks. 1) As of December 31, 2021, long-term interest-bearing debts of the Company are mainly long-term borrowings, bonds payable and long-term payables. Of which, long-term borrowing and long-term account payable are mainly floating interest rate contracts denominated in RMB, the total amount of floating interest rate contracts for long-term borrowing and long-term account payable is RMB 48.295 billion. See Note VI. 26, 27 and 29 for details. 2) Analysis on sensitivity: As of December 31, 2021, in case the borrowing rate calculated as per the floating interest rate rises or falls by 50 basis points while other factors remain unchanged, the net profit of the Company would decrease or increase by about RMB 185,575,200. The above sensitivity analysis assumes that the interest rate has been changed on balance sheet date and applied to all borrowings obtained as per the floating interest rate of the Company. (3) Price risk Price risks of the Company are mainly the risk that fair value of the held equity financial instruments fluctuates due to change of market price factors except for market rate and foreign exchange rate. The Company mainly invests in stocks and funds etc. listed in stock exchanges; the biggest market price risk to be confronted is determined by fair value of the held financial instruments. The Company conducts daily tracking management on prices of financial assets, regularly or irregularly submits price analysis report according to changes of market environment, timely proposes management suggestions to the Company. 2021 Annual Report 256 / 292 1) As of December 31, 2021, the amounts of equity financial instruments held by the Company measured by fair value are RMB 5,079,517,000 and details of which are set out in "Note X. Disclosure of Fair Value 1" 2) Analysis on sensitivity: As of December 31, 2021, in case the fair value of the above investment rises or falls by 10% while other factors remain unchanged, other comprehensive income of the Company would increase or decrease by about RMB 274.4370 million, and the net profit would increase or decrease by about RMB 133.6051 million. X. Disclosure of Fair Value 1. Ending fair value of assets and liabilities measured at fair value Unit: yuan Currency: RMB Items Ending fair value Level 1 fair value measurement Level 2 fair value measurement Level 3 fair value measurement Total Continuous fair value measurement (I) Financial assets held for trading 1. Financial assets at fair value through profit or loss (1) Equity instrument investment 507,597,431.02 1,114,562,660.29 1,622,160,091.31 (II) Other equity instrument investments 3,442,437,955.72 14,918,948.65 3,457,356,904.37 Total amount of assets continuously measured at fair value 3,950,035,386.74 1,129,481,608.94 5,079,516,995.68 2. Determination of market prices of each item is subject to continuous and non-continuous level 1 fair value measurement 2021 Annual Report 257 / 292 Equity instruments investments of the Company measured by recurring level 1 fair value are A-shares and H-shares held by the Company; determination basis of market report is the closing price of the last trading day at the end of the period. 3. Valuation techniques and qualitative and quantitative information about key parameters of items subject to continuous and non-continuous level 2 fair value measurement Items of the Company measured by recurring level II fair value are fair value of exchangeable option of exchangeable bonds, fair value of exchangeable option is calculated and determined by using option pricing models (binomial model). Risk-free interest rate, standard deviation of underlying stock, and market price of underlying stock are major input variables. 4. Valuation techniques and qualitative and quantitative information about key parameters of items subject to continuous and non-continuous level 3 fair value measurement The Company adopts continuous level 3 fair value measurement items as unlisted equity instrument investments, and the fair value of unlisted equity instrument investments is valued according to its net assets. 5. Items measured by recurring fair value convert between levels in the current year Items of the Company measured by recurring fair value did not have any transfer between different levels during the period. 6. Change of valuation techniques incurred during the current year and the reasons thereof There is no change on valuation techniques during the current period for the Company. 7. Assets and liabilities that are not measured at fair value but disclosed at fair value Assets and liabilities that are not measured at fair value but disclosed at fair value during the period for the Company. XI. Related Parties and Related Party Transactions (I) Relationship of related party 1. Controlling shareholder and ultimate controlling party (1) Controlling shareholder and ultimate controlling party Unit: yuan Currency: RMB 2021 Annual Report 258 / 292 Name of controlling shareholder and ultimate controlling party Registration place Nature of business Registered Capital Proportion of shareholding in the Company (%) Proportion of voting right in the Company (%) China Three Gorges Corporation Wuhan City Large-scale hydropower project development and operation 211,500,000,000.00 55.02 55.02 (2) Details and registered capital of the controlling shareholder and the changes Unit: yuan Currency: RMB Controlling shareholder Opening balance Increase in the current year Decrease in the current year Ending balance China Three Gorges Corporation 211,500,000,000.00 211,500,000,000.00 (3) Details of shares or equity held by the controlling shareholder and the changes Unit: yuan Currency: RMB Controlling shareholder Amount of shareholding Shareholding proportion (%) Ending balance Opening balance Closing proportio n Opening proportio n China Three Gorges Corporation 12,512,002,174.00 12,734,105,445.00 55.02 55.99 2. Subsidiaries For details of subsidiaries, please refer to contents of “VIII. 1. (1) Composition of the Group” in the Notes. 3. Joint ventures and associates For details of important joint ventures or associated enterprises of the Company, please refer to contents of “VIII. 3. (1) Important joint ventures or associated enterprises” in the Notes. The 2021 Annual Report 259 / 292 information of other joint ventures or associated enterprises which produced balance for conducting related-party transaction with the Company in this year or in the earlier period is shown as follows: Name of joint venture or associates Relationship with the Company Three Gorges Electric Energy (Anhui) Co., Ltd. Joint Ventures Three Gorges Electric Energy (Guangdong) Co., Ltd Joint Ventures Three Gorges Electric Energy (Yunnan) Co., Ltd. Joint Ventures Yangtze Smart Distributed Energy Co., Ltd. Joint Ventures Hubei Qingneng Investment and Development Group Co., Ltd. Associates Hubei Energy Group Co., Ltd. Associates Three Gorges Finance Co., Ltd. Associates Three Gorges Hi-Tech Information Technology Co., Ltd. Associates Three Gorges Electric Energy Digital Energy Technology (Hubei) Co., Ltd. Associates Three Gorges Base Development Co., Ltd. Associates Chongqing Fuling Energy Industry Group Co., Ltd. Associates Chongqing Three Gorges Water Conservancy and Electric Power (Group) Co., Ltd. Associates Yichang Yangtze River Three Gorges Shore Power Operation Service Co., Ltd. Associates 4. Other related parties Name of other related parties Relationship with the Company Beijing Rongneng Property Brokerage Co., Ltd. Enterprises controlled by controlling shareholders Three Gorges Pakistan No. 1 Wind Power Co., Ltd. Enterprises controlled by controlling shareholders Three Gorges Pakistan No. 2 Wind Power Co., Ltd. Enterprises controlled by controlling shareholders Three Gorges Pakistan No. 3 Wind Power Co., Ltd. Enterprises controlled by controlling shareholders Three Gorges Finance (Hong Kong) Co., Ltd. Enterprises controlled by controlling shareholders Three Gorges International Energy Investment Group Co., Ltd. Enterprises controlled by controlling shareholders Three Gorges International Tendering Co., Ltd. Enterprises controlled by 2021 Annual Report 260 / 292 Name of other related parties Relationship with the Company controlling shareholders Three Gorges Mechanical and Electrical Engineering Technology Co., Ltd. Enterprises controlled by controlling shareholders Three Gorges Jinsha River Yunchuan Hydropower Development Co., Ltd. Enterprises controlled by controlling shareholders Three Gorges Ecological Environment Co., Ltd. Enterprises controlled by controlling shareholders Three Gorges Changdian Big Data Technology (Yichang) Co., Ltd. Enterprises controlled by controlling shareholders Three Gorges Asset Management Co., Ltd. Enterprises controlled by controlling shareholders Shanghai Investigation, Design & Research Institute Co., Ltd. Enterprises controlled by controlling shareholders Yichang Three Gorges Duoneng Asset Management Co., Ltd. Enterprises controlled by controlling shareholders Yangtze River Three Gorges (Chengdu) Electronic Commerce Co., Ltd. Enterprises controlled by controlling shareholders Yangtze Three Gorges Technology & Economy Development Co., Ltd. Enterprises controlled by controlling shareholders Pakistan Company of Yangtze Three Gorges Technology & Economy Development Co., Ltd. Enterprises controlled by controlling shareholders Three Gorges Tourism Development Co., Ltd. Enterprises controlled by controlling shareholders Yangtze Three Gorges Equipment & Materials Co., Ltd. Enterprises controlled by controlling shareholders The Three Gorges Ecological Garden Co., Ltd. Enterprises controlled by controlling shareholders The Three Gorges Industrial Co., Ltd. Enterprises controlled by controlling shareholders Yangtze Three Gorges Water Service (Yichang) Co., Ltd. Enterprises controlled by controlling shareholders China Three Gorges (Portugal) Co., Ltd. Enterprises controlled by controlling shareholders China Three Gorges Publishing and Media Co., Ltd. Enterprises controlled by controlling shareholders China Three Gorges International Co., Ltd. Enterprises controlled by 2021 Annual Report 261 / 292 Name of other related parties Relationship with the Company controlling shareholders China Three Gorges Construction Engineering Corporation Enterprises controlled by controlling shareholders China International Water & Electric Corporation Enterprises controlled by controlling shareholders The Institute of Chinese Sturgeon of China Three Gorges Corporation Enterprises controlled by controlling shareholders (II) Related-party transaction 1. Related party transactions of purchasing or selling goods and rendering or receiving services (1) Purchasing goods/receiving services Unit: RMB 10,000 Currency: RMB Related party Content of related transactions Amount incurred in current year Amount incurred in previous year Controlling shareholder and ultimate controlling party China Three Gorges Corporation Entrusted management 3,309.77 3,273.73 Joint ventures or associates Chongqing Three Gorges Water Conservancy and Electric Power Co., Ltd. Receiving services 4,133.08 4,377.29 Three Gorges Base Development Co., Ltd. Property management, entrusted management, etc 2,262.83 4,316.91 Three Gorges Hi-Tech Information Technology Co., Ltd. Entrusted management, equipment procurement, acceptance of labor services 2,172.94 Three Gorges Finance Co., Ltd. Letter of guarantee fees, agency fees 562.12 540.16 Three Gorges Electric Energy Digital Energy Technology (Hubei) Co., Ltd. Receiving services 210.29 183.77 Three Gorges Electric Energy (Yunnan) Co., Ltd. Receiving services 115.87 Enterprises controlled by controlling shareholders The Three Gorges Industrial Co., Ltd. Entrusted management, electricity sales, 37,741.61 35,492.80 2021 Annual Report 262 / 292 Related party Content of related transactions Amount incurred in current year Amount incurred in previous year property management, etc. Three Gorges Ecological Environment Co., Ltd. Entrusted management, equipment and facilities maintenance, etc. 16,389.61 13,798.53 China Three Gorges Construction Engineering Corporation Entrusted management 12,568.57 15,166.19 Yangtze Three Gorges Equipment & Materials Co., Ltd. Fees for receiving labor services, material collection, procurement and custody, storage management, etc. 9,088.99 5,213.75 Yangtze Three Gorges Technology & Economy Development Co., Ltd. Entrusted management, repair, engineering labor services, etc. 3,783.24 2,165.32 Three Gorges Tourism Development Co., Ltd. Property management, transportation costs, etc. 1,583.12 1,663.69 Shanghai Investigation, Design & Research Institute Co., Ltd. Acceptance of labor services, planning and design, consulting fees 1,388.27 55.30 Yangtze Three Gorges Water Service (Yichang) Co., Ltd. Water charges 1,106.70 1,043.90 Three Gorges Mechanical and Electrical Engineering Technology Co., Ltd. Entrusted management 759.19 1,070.08 The Institute of Chinese Sturgeon of China Three Gorges Corporation Entrusted management 600.04 550.00 The Three Gorges Ecological Garden Co., Ltd. Property Management 556.41 731.22 China Three Gorges Publishing and Media Co., Ltd. Acceptance of labor services, publicity fees 443.17 216.03 China Three Gorges (Portugal) Co., Ltd. Consulting service 179.37 Beijing Rongneng Property Brokerage Co., Ltd. Service fees of asset transaction, acceptance of labor services 135.11 Three Gorges Asset Management Co., Ltd. Entrusted management services 92.08 Three Gorges International Tendering Co., Ltd. Tender Agent 74.85 69.00 Three Gorges Finance (Hong Kong) Co., Ltd. Service charge for Letter of Guarantee 0.14 Total 99,257.23 89,927.81 2021 Annual Report 263 / 292 (2) Selling goods/offering services Unit: RMB 10,000 Currency: RMB Related party Content of related transactions Amount incurred in current year Amount incurred in previous year Controlling shareholder and ultimate controlling party China Three Gorges Corporation Sales of goods and technical services 2,909.36 7,403.81 Joint ventures or associates Three Gorges Electric Energy Digital Energy Technology (Hubei) Co., Ltd. Electricity bill 22.11 Yichang Yangtze River Three Gorges Shore Power Operation Service Co., Ltd. Electricity, technical services 8.93 Three Gorges Base Development Co., Ltd. Electricity 4.35 11.40 Three Gorges Hi-Tech Information Technology Co., Ltd. Electricity bill 0.13 Hubei Energy Group Co., Ltd. Technical Services 25.10 Enterprises controlled by controlling shareholders Three Gorges Jinsha River Yunchuan Hydropower Development Co., Ltd. Sales of goods, provision of technical services, and entrusted management 85,613.12 44,772.95 Pakistan Company of Yangtze Three Gorges Technology & Economy Development Co., Ltd. Consulting services, technical services, labor services 3,175.69 584.03 China Three Gorges International Co., Ltd. Technical Services 2,010.14 3,182.58 Three Gorges Pakistan No. 1 Wind Power Co., Ltd. O&M service 1,128.21 1,356.50 Three Gorges Pakistan No. 2 Wind Power Co., Ltd. O&M service 1,060.59 1,211.44 Three Gorges Pakistan No. 3 Wind Power Co., Ltd. O&M service 1,060.59 1,107.54 Three Gorges Tourism Development Co., Ltd. electricity bill 379.37 294.65 China International Water & Electric Corporation Technical service fee 227.13 Three Gorges Changdian Big Data Technology (Yichang) Co., Ltd. Electricity bill 145.03 The Three Gorges Industrial Co., Ltd. Electricity 139.27 224.64 Yangtze Three Gorges Water Service (Yichang) Co., Ltd. Electricity sales 87.77 107.09 Yangtze Three Gorges Technology & Economy Development Co., Ltd. merchandising 20.94 60.54 Yangtze Three Gorges Equipment & Materials Co., Ltd. Sales of goods and technical services 18.92 22.46 The Three Gorges Ecological Garden Co., Ltd. Electricity bill 11.76 7.29 Three Gorges Ecological Environment Co., Ltd. Electricity bill 7.09 8.87 2021 Annual Report 264 / 292 Related party Content of related transactions Amount incurred in current year Amount incurred in previous year Total 98,030.50 60,380.89 2. Related party lease (1) The Company as the lessor: Unit: RMB 10,000 Currency: RMB Lessee Type of leased assets Leasing income recognized in the current year Leasing income recognized in the previous year The Three Gorges Industrial Co., Ltd. Premises 1,685.44 1,296.27 Three Gorges Tourism Development Co., Ltd. Premises 384.05 288.04 Three Gorges International Energy Investment Group Co., Ltd. Premises 128.51 1,513.10 (2) The Company as the Lessee: Unit: RMB 10,000 Currency: RMB Lessor Type of leased assets Lease expenses recognized in the current year Lease expenses recognized in the previous year China Three Gorges Corporation Land 5,485.45 7,394.94 Three Gorges Changdian Big Data Technology (Yichang) Co., Ltd. Professional equipment 532.08 The Three Gorges Industrial Co., Ltd. Premises 205.77 174.83 Yichang Three Gorges Duoneng Asset Management Co., Ltd. Premises 7.57 39.09 3. Related party guarantees (1) The Company serves as the Guarantor Unit: RMB 10,000 Currency: RMB Guarantee Amount of guarantee Commencement date of guarantee Due date of guarantee Whether the guarantee has been fulfilled Hunan Taohuajiang Nuclear 24,346.80 November 2019 November No 2021 Annual Report 265 / 292 Guarantee Amount of guarantee Commencement date of guarantee Due date of guarantee Whether the guarantee has been fulfilled Power Co., Ltd. 2025 (2) The Company serves as the Warrantee Unit: RMB 10,000 Currency: RMB Guarantor Amount of guarantee Commencement date of guarantee Due date of guarantee Whether the guarantee has been fulfilled China Three Gorges Corporation (Note) 800,000.00 2002-09-20 2033-08-01 No Note: Pursuant to the Letter of Guarantee issued by CTG on June 30, 2009 and the “Guarantee Agreement” signed by the Company in August 2009, CTG agreed to provide an irrevocable joint liability guarantee on principal, interest payable, liquidated damages, damages, the expense of credit realization and other payable expenses of CTG Bonds in the total amount of RMB 16 billion. If the Company fails to pay principals of and interest on bonds as per original issue-clauses of various phases of CTG Bonds, CTG would bear joint liability guarantee, unconditionally pay all bonds payable and expenses of the Company. As of December 31, 2021, the Company has paid RMB 8 billion for overdue CTG Bonds, the guarantee balance was RMB 8 billion. 4. Capital borrowing or lending between related parties Unit: RMB 10,000 Currency: RMB Name of related party Amount of inter-bank lending Valid from Expiry date Remarks Borrowing China Three Gorges Corporation 500,000.00 2021.07.13 2022.07.13 China Three Gorges Corporation 700,000.00 2019.07.17 2022.07.17 China Three Gorges Corporation 400,000.00 2021.07.15 2024.07.15 China Three Gorges Corporation 600,000.00 2021.07.16 2024.07.15 China Three Gorges Corporation 1,183,294.54 2013.05.01 2028.05.01 China Three Gorges Corporation 400,000.00 2021.03.18 2022.03.18 Three Gorges Finance Co., Ltd. 1,200,000.00 2021.07.15 2025.07.15 Three Gorges Finance Co., Ltd. 170,000.00 2021.03.18 2022.03.18 Three Gorges Finance (Hong Kong) Co., Ltd. 159,392.50 2021.06.11 2024.06.11 Three Gorges Finance (Hong Kong) Co., Ltd. 159,392.50 2021.06.28 2024.06.28 2021 Annual Report 266 / 292 Name of related party Amount of inter-bank lending Valid from Expiry date Remarks Borrowing Three Gorges Finance (Hong Kong) Co., Ltd. 159,392.50 2021.11.01 2024.11.01 Three Gorges Finance (Hong Kong) Co., Ltd. 129,957.17 2021.11.01 2024.11.01 5. Compensation of key management personnel Unit: RMB 10,000 Currency: RMB Item Amount incurred in current year Amount incurred in previous year Total compensation 842.72 959.63 6. Other related party transaction (1) Receive interest from the related party Unit: RMB 10,000 Currency: RMB Name of related party Content of transaction Amount incurred in current year Amount incurred in previous year Pricing method and decision-ma king process Three Gorges Finance Co., Ltd. Interest incomes 8,887.75 5,226.26 Note 1 Three Gorges International Tendering Co., Ltd. Interest incomes 0.02 Three Gorges Finance (Hong Kong) Co., Ltd. Interest incomes 205.68 1,610.94 Note 2 Note 1: Accounted according to coterminous deposit interest published by the People's Bank of China. Note 2: The current interest rates in various currencies of the Bank of China (Hong Kong) Limited shall prevail. (2) Pay interest to related parties Unit: RMB 10,000 Currency: RMB Name of related party Content of transaction Amount incurred in current year Amount incurred in previous year Pricing method and decision-m aking process China Three Gorges Interests on borro 115,161.97 148,448.93 Note 1 2021 Annual Report 267 / 292 Name of related party Content of transaction Amount incurred in current year Amount incurred in previous year Pricing method and decision-m aking process Corporation wings China Three Gorges Corporation Interest of long-t erm payables 65,223.49 86,351.18 Agreed price Three Gorges Finance Co., Ltd. Interests on borro wings 49,149.83 37,925.38 Note 1 Three Gorges Finance (Hong Kong) Co., Ltd. Interests on borro wings 6,957.53 1,470.65 Agreed price China Three Gorges Corporation Costs of lease fin ancing 3,041.30 Agreed price Yichang Three Gorges Duoneng Asset Management Co., Ltd. Costs of lease fin ancing 1.15 Agreed price Note 1: based on coterminous RMB loan interest rate published by the People's Bank of China. (3) pay security deposit to the related party Unit: RMB 10,000 Currency: RMB Name of related party Content of transaction Amount incurred in current year Amount incurred in previous year Pricing method and decision-ma king process China Three Gorges Corporation Guarantee co st 480.00 481.32 Agreed price (4) Pay research fund for the related party Unit: RMB 10,000 Currency: RMB Transaction type Name of related party Amount incurred in current year Amount incurred in previous year Pricing method and decision-ma king process Fund for research The Institute of Chinese Sturgeon of China Three Gorges Corporation 225.00 225.00 Agreed price (5) Public costs sharing of Three Gorges Project 2021 Annual Report 268 / 292 The Three Gorges Hub incurred public costs and public facilities operation and maintenance expenses during the year, which were apportioned between the CTG and the Company in the ratio of 25:75, with the Company bearing RMB 528,536,000. 2021 Annual Report 269 / 292 (III) Balance of transactions with related parties 1. Receivables Unit: RMB 10,000 Currency: RMB Item Related party Ending balance Opening balance Book balance Provision for bad debts Book balance Provision for bad debts Controlling shareholder and ultimate controlling party Accounts receivable China Three Gorges Corporation 177.71 223.24 Joint ventures or associates Accounts receivable Three Gorges Base Development Co., Ltd. 0.11 0.43 Accounts receivable Three Gorges Hi-Tech Information Technology Co., Ltd. 0.01 0.02 Dividends receivable Hubei Qingneng Investment and Development Group Co., Ltd. 5,502.84 4,547.31 Advances to suppliers Three Gorges Electric Energy Digital Energy Technology (Hubei) Co., Ltd. 319.33 Other receivables Three Gorges Electric Energy (Yunnan) Co., Ltd. 40.54 1.82 18.32 0.02 Other receivables Yangtze Smart Distributed Energy Co., Ltd. 28.76 0.13 40.70 0.20 Other receivables Three Gorges Electric Energy Digital Energy Technology (Hubei) Co., Ltd. 5.88 0.01 0.16 Other receivables Three Gorges Electric Energy (Anhui) Co., Ltd. 4.92 0.01 28.84 0.03 Other receivables Chongqing Three Gorges Water Conservancy and Electric Power (Group) Co., Ltd. 41.07 1.18 Other receivables Three Gorges Electric Energy (Guangdong) Co., Ltd 39.46 1.85 Enterprises controlled by controlling shareholders Accounts receivable Pakistan Company of Yangtze Three Gorges 1,835.47 495.69 2021 Annual Report 270 / 292 Item Related party Ending balance Opening balance Book balance Provision for bad debts Book balance Provision for bad debts Technology & Economy Development Co., Ltd. Accounts receivable Three Gorges Pakistan No. 1 Wind Power Co., Ltd. 1,738.10 1,584.78 Accounts receivable China Three Gorges International Co., Ltd. 360.77 Accounts receivable Three Gorges Pakistan No. 2 Wind Power Co., Ltd. 271.79 140.16 Accounts receivable Three Gorges Pakistan No. 3 Wind Power Co., Ltd. 229.46 140.16 Accounts receivable China International Water & Electric Corporation 224.40 Accounts receivable Yangtze Three Gorges Water Service (Yichang) Co., Ltd. 17.64 9.40 Accounts receivable The Three Gorges Industrial Co., Ltd. 15.82 32.74 Accounts receivable Three Gorges Tourism Development Co., Ltd. 9.09 26.49 Accounts receivable Yangtze Three Gorges Technology & Economy Development Co., Ltd. 2.14 1.33 Accounts receivable Three Gorges Ecological Environment Co., Ltd. 0.81 1.02 Accounts receivable The Three Gorges Ecological Garden Co., Ltd. 0.43 2.60 Advances to suppliers Three Gorges International Tendering Co., Ltd. 9.17 Other receivables Three Gorges Jinsha River Yunchuan Hydropower Development Co., Ltd. 45,407.93 45.41 33,232.33 33.23 Other receivables The Three Gorges Industrial Co., Ltd. 1,490.04 1.49 997.41 1.00 Other receivables Three Gorges Ecological Environment Co., Ltd. 30.00 6.87 30.00 5.19 Other receivables Yichang Three Gorges Duoneng Asset Management Co., Ltd. 2.00 0.46 2.00 0.35 Other receivables China Three Gorges Publishing and Media Co., Ltd. 0.73 0.13 0.73 0.07 Total 57,725.89 56.33 41,636.39 43.12 2021 Annual Report 271 / 292 2. Payables Unit: RMB 10,000 Currency: RMB Item Related party Closing book balance Opening book balance Controlling shareholder and ultimate controlling party Short-term borrowings China Three Gorges Corporation 900,000.00 720,000.00 Interest payable China Three Gorges Corporation 4,937.28 5,964.82 Other payables China Three Gorges Corporation 42,939.76 49,012.84 Current portion of non-current liabilities China Three Gorges Corporation 700,000.00 860,000.00 Long-term borrowings China Three Gorges Corporation 1,000,000.00 1,400,000.00 Long-term payables China Three Gorges Corporation 1,183,294.54 1,443,294.54 Joint ventures or associates Short-term borrowings Three Gorges Finance Co., Ltd. 170,000.00 1,200,000.00 Accounts payable Three Gorges Hi-Tech Information Technology Co., Ltd. 1.80 67.78 Interest payable Three Gorges Finance Co., Ltd. 1,518.84 1,415.56 Other payables Three Gorges Base Development Co., Ltd. 128.85 41.03 Other payables Three Gorges Hi-Tech Information Technology Co., Ltd. 85.62 74.77 Other payables Hubei Qingneng Investment and Development Group Co., Ltd. 24.44 Other payables Three Gorges Electric Energy Digital Energy Technology (Hubei) Co., Ltd. 15.25 3.14 Other payables Three Gorges Electric Energy (Anhui) Co., Ltd. 4.92 Other payables Three Gorges Electric Energy (Guangdong) Co., Ltd 0.02 Other payables Three Gorges Finance Co., Ltd. 551.48 Other payables Chongqing Fuling Energy Industry Group Co., Ltd. 4.45 Long-term borrowings Three Gorges Finance Co., Ltd. 1,200,000.00 Enterprises controlled by controlling shareholders Short-term borrowings Three Gorges Finance (Hong Kong) Co., Ltd. 163,122.50 Accounts payable The Three Gorges Industrial Co., Ltd. 934.69 Accounts payable The Three Gorges Ecological Garden Co., Ltd. 16.25 2021 Annual Report 272 / 292 Item Related party Closing book balance Opening book balance Accounts payable Yangtze River Three Gorges (Chengdu) Electronic Commerce Co., Ltd. 31.49 Accounts payable Three Gorges Pakistan No. 3 Wind Power Co., Ltd. 3.06 Accounts payable Yangtze Three Gorges Equipment & Materials Co., Ltd. 73.69 Accounts payable Three Gorges Pakistan No. 1 Wind Power Co., Ltd. 2.75 Accounts payable Three Gorges Pakistan No. 2 Wind Power Co., Ltd. 2.58 Advances from customers Three Gorges International Energy Investment Group Co., Ltd. 878.84 Interest payable Three Gorges Finance (Hong Kong) Co., Ltd. 1,376.28 367.84 Other payables The Three Gorges Industrial Co., Ltd. 4,743.75 436.87 Other payables Yangtze Three Gorges Equipment & Materials Co., Ltd. 3,706.60 17.90 Other payables Three Gorges Ecological Environment Co., Ltd. 2,428.99 2,474.41 Other payables China Three Gorges Construction Engineering Corporation 664.80 2,000.00 Other payables Yangtze Three Gorges Technology & Economy Development Co., Ltd. 592.77 811.95 Other payables China Three Gorges Publishing and Media Co., Ltd. 55.73 16.70 Other payables Three Gorges Tourism Development Co., Ltd. 40.72 20.00 Other payables Shanghai Investigation, Design & Research Institute Co., Ltd. 30.97 35.48 Other payables Yangtze River Three Gorges (Chengdu) Electronic Commerce Co., Ltd. 19.16 Other payables Three Gorges Pakistan No. 1 Wind Power Co., Ltd. 18.04 Other payables Three Gorges Pakistan No. 2 Wind Power Co., Ltd. 16.61 Other payables Three Gorges Pakistan No. 3 Wind Power Co., Ltd. 9.03 Other payables The Three Gorges Ecological Garden Co., Ltd. 6.91 104.31 Other payables Three Gorges Changdian Big Data Technology (Yichang) Co., Ltd. 5.00 5.00 Other payables Three Gorges Mechanical and Electrical Engineering Technology Co., Ltd. 1,280.00 Other payables Three Gorges International Energy Investment Group Co., Ltd. 200.00 Long-term borrowings Three Gorges Finance (Hong Kong) Co., Ltd. 608,134.67 Total 5,825,752.29 5,852,315.78 2021 Annual Report 273 / 292 (IV) Miscellaneous Bank deposits Unit: RMB 10,000 Currency: RMB Name of related party Item Ending balance Opening balance Three Gorges Finance Co., Ltd. Deposit 821,627.72 489,108.20 Total 821,627.72 489,108.20 (V) Transactions with other Chinese state-owned enterprises The Company is a state-owned enterprise and operates within an economic system dominated by state-owned enterprises. In addition to the above-disclosed transactions with CTG and its joint ventures or associates, fellow subsidiaries and the Company's joint ventures or associates, the Company engages in certain business activities with other state-owned enterprises. These transactions are conducted in accordance with the normal commercial terms in the Company's daily business processes and are not materially or unduly affected by the fact that the counterparties are state-owned enterprises. The Company has established procurement and pricing strategies, as well as approval procedures for its purchases and sales of products and services, and these procurement and pricing strategies and approval procedures are not affected by whether the counterparty is a state-owned enterprise. 1. Selling goods/offering services Unit: RMB million Currency: RMB Content of transaction Amount in the current year Power generation revenue 48,714.71 Other revenues 2.64 Total 48,717.35 2. Purchasing goods/receiving services Unit: RMB million Currency: RMB Content of transaction Amount in the current year Receiving services or Project construction 367.50 Other procurement 33.99 Interest expenses 198.06 Total 599.55 3. Receivables Unit: RMB million Currency: RMB Subject names Closing balance Receivable 2,906.84 Total 2,906.84 2021 Annual Report 274 / 292 4. Payables Unit: RMB million Currency: RMB Subject names Closing balance payable 1,448.22 Total 1,448.22 5. Balance of deposits and loans Unit: RMB million Currency: RMB Subject names Closing balance Deposit 1,113.04 pLong-term borrowings 8,024.58 Total 9,137.62 XII. Contingencies For contingent liabilities relating to the investment of joint ventures or associates, see the relevant contents of “Note VIII. 2. (6) contingent liabilities relating to the investment of joint ventures or associates”. As of December 31, 2021, the Company has not occurred situations like providing debt guarantees for non-related parties. As of December 31, 2021, the Company has no other significant contingencies that shall be disclosed but not yet disclosed except for the above-mentioned ones. XIII. Commitments 1. Up to December 31, 2021, capital expenditure and revenue expenditure commitments such as asset purchasing, etc. which have been signed and need not be recognized on the financial statement of the Company, were RMB 52,521,000. 2. The Company signed land use right renting contract for Gezhouba District with CTG in December 2007, the lease term was 20 years from January 1, 2007, and for every three years, the rental can be adjusted by negotiation between both parties. 3. The Company signed land use right renting contract for Three Gorges District with CTG in September 2009, the lease term was 20 years from September 28, 2009, for every 3 years, the rental can be adjusted by negotiation between both parties. The latest adjustment by both parties was in 2014. 4. Relevant agreements and commitment in Report for China Yangtze Power Co., Ltd. to Pay for Major Assets and the Connected Transaction between CTG and the Company: 2021 Annual Report 275 / 292 (1) Relevant expenses or costs that shall be listed in power-generating cost of Three Gorges Hydropower Station would be borne by the Company. (2) CTG and the Company agreed that when relevant transaction conditions are met, CTG would sell equity of Yangtze Three Gorges Technology & Economy Development Co., Ltd. held by itself to the Company, and the Company promised to buy the above equity. As of December 31, 2021, the Company has no other significant commitment events that shall be disclosed but not yet disclosed except for the above-mentioned ones. XIV. Events after the Balance Sheet Date 1. Profit distribution Items Contents Profit or dividend to be distributed 18,541,437,830.22 According to the profit distribution proposal for the year 2021 considered and approved at the Fifth Session of the Sixth Session of the Board of Directors of the Company, the Company proposed to distribute cash dividends in the total amount of RMB 18,541,437,830.22 (including tax), which resolution is subject to the consideration and approval of the shareholders' meeting. 2. Issuance of bonds On January 6, 2022, the Company issued the total 2022 Phase I medium-term notes of RMB 2.5 billion, with a period of 3 years and an interest rate of 2.90%. On January 18, 2022, the Company publicly issued the 2022 Green Corporate Bond (First Issue) Variety I (G22 CYPC1) to professional investors with a total amount of RMB 500 million, a period of 3 years and an interest rate of 2.88%. On January 18, 2022, the Company publicly issued the 2022 Green Corporate Bond (First Issue) Variety II (G22 CYPC2) to professional investors with a total amount of RMB 2 billion, a period of 5 years and an interest rate of 3.19%. On March 8, 2022, the Company publicly issued the 2022 Medium-term Notes (Second Issue) with a total amount of RMB 3 billion, of which the Variety I would be issued for 3 years with a total amount of RMB 2 billion and an interest rate of 3.09%; Variety II would be issued for 5 years with a total amount of RMB 1 billion and an interest rate of 3.44%. 3. There are no other significant events after the balance sheet date for the Company to disclose, except for those above-mentioned. 2021 Annual Report 276 / 292 XV. Other Significant Matte rs 1. Annuity plan The enterprise annuity plan is implemented in the Company after being submitted by CTG to Labor and Social Security Bureau for filing. The Company includes enterprise annuity cost that it should bear into current profits and losses as employee compensation, and remits the payable enterprise annuity payments to the bank accounts employees open at the account manager on time. As of December 31, 2021, no major change has occurred to the annuity plan. 2. Other significant transactions and events affecting investors' decisions At the 30th Session of the Fifth Board of Directors, the Company reviewed and approved the Proposal on "the Plan for China Yangtze Power Co., Ltd. on Issuing Shares and Convertible Corporate Bonds, Purchasing Assets by Cash and Raising Subscription Funds as well as on Related Party Transactions" and its Summary to purchase 100% of the equity interests in Three Gorges Jinsha River Yunchuan Hydropower Development Co., Ltd. jointly held by China Three Gorges Corporation, Yangtze River Three Gorges Investment Management Co., Ltd., Yunnan Provincial Energy Investment Group Co., Ltd. and Sichuan Energy Industry Investment Group Co., Ltd. in the way of issuing shares and convertible corporate bonds (if any) and paying cash. After this transaction, the Company will hold 100% of the equity interests in Three Gorges Jinsha River Yunchuan Hydropower Development Co., Ltd. As of the approval date of this report, the transaction is still in progress. 2021 Annual Report 277 / 292 XVI. Notes to Main Items in Financial Statements of the Parent Company 1. Accounts receivable (1) Classified presentation of accounts receivable by bad debt accrual method Unit: yuan Currency: RMB Type Ending balance Opening balance Book balance Provision for bad debts Book value Book balance Provision for bad debts Book value Amount Proportion (%) Amount Proportion of provision (%) Amount Proportion (%) Amount Proportion of provision (%) Bad debt provision made individually Bad debt provision made as per portfolio 1,525,800,124.22 100.00 1,525,800,124.22 1,681,426,962.93 100.00 1,681,426,962.93 Including: portfolio of hydropower 1,521,556,088.33 99.72 1,521,556,088.33 1,679,077,351.06 99.86 1,679,077,351.06 2021 Annual Report 278 / 292 Type Ending balance Opening balance Book balance Provision for bad debts Book value Book balance Provision for bad debts Book value Amount Proportion (%) Amount Proportion of provision (%) Amount Proportion (%) Amount Proportion of provision (%) business receivables Other payment portfolio 4,244,035.89 0.28 4,244,035.89 2,349,611.87 0.14 2,349,611.87 Total 1,525,800,124.22 - 1,525,800,124.22 1,681,426,962.93 - 1,681,426,962.93 2021 Annual Report 279 / 292 (2) Accounts receivable are listed by age Unit: yuan Currency: RMB Aging Ending balance Within 1 year (including 1 year) 1,525,800,124.22 Total 1,525,800,124.22 (3) Provision for bad debts for current year accounts receivable There has been no change in the provision for bad debts this year. (4) Top five of accounts receivable of closing balance collected by borrower Unit: yuan Currency: RMB Company Name Ending balance Aging Proportion in total closing balance of accounts receivable (%) Closing balance of bad debt provisio n State Grid Corporation of China 1,103,554,011.72 Within 1 year 72.33 Central China Branch, State Grid Corporation of China 269,076,591.65 Within 1 year 17.64 China Southern Power Grid Co., Ltd. 137,058,699.05 Within 1 year 8.98 SGCC Hubei Electric Power Company 11,800,669.75 Within 1 year 0.77 Three Gorges Power Co., Ltd. 4,203,437.53 Within 1 year 0.27 Total 1,525,693,409.70 99.99 2. Other receivables Unit: yuan Currency: RMB Items Ending balance Opening balance Interest receivable Dividends receivable 4,699,458,155.29 45,473,100.00 Other receivables 490,437,696.30 336,776,408.06 Total 5,189,895,851.59 382,249,508.06 2021 Annual Report 280 / 292 2.1 Dividends receivable Unit: yuan Currency: RMB Item (or the investee) Ending balance Opening balance Hubei Qingneng Investment and Development Group Co., Ltd. 55,028,400.00 45,473,100.00 Three Gorges Jinsha River Chuanyun Hydropower Development Co., Ltd. 4,644,429,755.29 Total 4,699,458,155.29 45,473,100.00 2.2 Other receivables (1) Classification of other receivables by nature Unit: yuan Currency: RMB Payment nature Closing book balance Opening book balance Guarantee deposit and security deposit 1,827,500.00 739,300.00 Current accounts 489,444,676.46 336,663,086.49 Miscellaneous 56,448.47 140,133.79 Total 491,328,624.93 337,542,520.28 (2) Other receivables – bad debt provision withdrawn Unit: yuan Currency: RMB Provision for bad debts Stage I Stage II Stage III Total Expected credit loss in the future 12 months Expected credit loss within the whole duration (no credit impairment occur) Expected credit loss within the whole duration (credit impairment has occurred) Balance as at January 1, 2021 766,112.22 766,112.22 Provision in the current year 124,816.41 124,816.41 Balance as at December 31, 2021 890,928.63 890,928.63 2021 Annual Report 281 / 292 (3) Other receivables listed as per aging Unit: yuan Currency: RMB Aging Ending balance Within 1 year 490,928,624.93 Over 5 years 400,000.00 Total 491,328,624.93 (4) Other receivables – bad debt provision Unit: yuan Currency: RMB Type Opening balance Amount changed in the current year Ending balance Provision Accounts recovered or transferred back Amounts charged or written off Other payment portfolio 766,112.22 124,816.41 890,928.63 Total 766,112.22 124,816.41 890,928.63 (5) Other receivables of top five borrowers by closing balance Unit: yuan Currency: RMB Company Name Payment nature Ending balance Aging Proportion in total closing balance of other receivables (%) Closing balance of bad debt provision Three Gorges Jinsha River Yunchuan Hydropower Development Co., Ltd. Current accounts 454,079,250.00 Within 1 year 92.42 454,079.25 China Yangtze Power International (Hong Kong) Co., Ltd. Current accounts 6,124,973.27 Within 1 year 1.25 6,124.97 China Three Gorges International Power Operation Co., Ltd. Current accounts 1,938,794.46 Within 1 year 0.39 1,938.79 The Three Gorges Industrial Co., Ltd. Current accounts 1,728,442.55 Within 1 year 0.35 1,728.44 Yichang Labor Security Supervision Detachment Guarante e deposit and security deposit 400,000.00 Over 5 years 0.08 400,000.00 Total — 464,271,460.28 — 94.49 863,871.45 2021 Annual Report 282 / 292 3. Long-term equity investments (1) Classification of long-term equity investments Unit: yuan Currency: RMB Items Ending balance Opening balance Book balance Impairment provision Book value Book balance Impairment provision Book value Investment in subsidiaries 62,669,596,483.34 62,669,596,483.34 56,819,596,483.34 56,819,596,483.34 Investment in associates and joint ventures 52,290,244,972.59 52,290,244,972.59 46,657,446,143.85 46,657,446,143.85 Total 114,959,841,455.93 114,959,841,455.93 103,477,042,627.19 103,477,042,627.19 (2) Investment in subsidiaries Unit: yuan Currency: RMB Investee Opening balance Increase in the current year Decrease in the current year Ending balance Provision for impairment in the current year Ending balance of impairment provision CYPC Capital Holding Co., Ltd. 2,600,000,000.00 2,600,000,000.00 2021 Annual Report 283 / 292 Investee Opening balance Increase in the current year Decrease in the current year Ending balance Provision for impairment in the current year Ending balance of impairment provision China Yangtze Power International (Hong Kong) Co., Ltd. 16,632,614,290.29 16,632,614,290.29 Three Gorges Jinsha River Chuanyun Hydropower Development Co., Ltd. 36,866,982,193.05 36,866,982,193.05 Three Gorges Power Co., Ltd. 700,000,000.00 350,000,000.00 1,050,000,000.00 CYPC Sales Ltd. 20,000,000.00 20,000,000.00 CYPC Xinneng Co., Ltd. 1,500,000,000.00 1,500,000,000.00 CYPC Investment Management Co., Ltd. 4,000,000,000.00 4,000,000,000.00 Total 56,819,596,483.34 5,850,000,000.00 62,669,596,483.34 2021 Annual Report 284 / 292 (3) Investment in associates and joint ventures Unit: yuan Currency: RMB Investee Opening balance Increase and decrease for the current year Ending balance Endin g balan ce of impai rment provis ion Additional investment Reduced investment Investment profits and losses recognized by equity method Adjustment to other comprehensi ve income Other equity changes Cash dividends or profits declared to be distributed Prov ision of impa irme nt prov ision Mi sce lla neo us I. Associates Hubei Energy Group Co., Ltd. 7,233,280,876.37 592,924,375.11 4,181,240.29 -6,753,648.48 197,979,431.16 7,625,653,412.13 Hubei Qingneng Investment and Development Group Co., Ltd. 2,219,502,299.46 241,765,949.26 39,136,178.10 55,028,400.00 2,445,376,026.82 Guangzhou Development Group Incorporated 3,319,521,158.73 36,437,314.38 23,270,262.21 21,161,446.50 83,317,553.86 3,317,072,627.96 Three Gorges Finance Co., Ltd. 2,161,419,535.56 260,230,854.31 50,380,316.60 104,969,852.23 2,367,060,854.24 Shanghai Electric Power Co., Ltd. 1,961,923,053.84 429,909,193.31 -188,953,743.88 -2,233,810.00 33,280,360.10 28,718,079.50 1,345,388,587.25 Hunan Taohuajiang Nuclear Power Co., Ltd. 224,119,537.52 224,119,537.52 2021 Annual Report 285 / 292 Investee Opening balance Increase and decrease for the current year Ending balance Endin g balan ce of impai rment provis ion Additional investment Reduced investment Investment profits and losses recognized by equity method Adjustment to other comprehensi ve income Other equity changes Cash dividends or profits declared to be distributed Prov ision of impa irme nt prov ision Mi sce lla neo us Chongqing Three Gorges Water Conservancy and Electric Power (Group) Co., Ltd. 2,100,618,877.71 106,203,472.13 102,247,802.79 2,175,713.56 3,795,766.17 22,537,560.40 2,292,504,071.96 Three Gorges Base Development Co., Ltd. 662,536,124.55 331,500,000.00 36,723,455.57 -60,534,416.23 14,461,357.20 955,763,806.69 Shenergy Group Company Limited 3,027,239,470.92 3,718,457.72 164,213,608.28 869,048.66 -29,523,521.23 137,537,058.96 3,028,980,005.39 Chongqing Youtai Energy Co., Ltd. 20,018,230.17 7,679,544.49 27,697,774.66 Chongqing Fuling Energy Industry Group Co., Ltd. 617,342,747.85 26,650,241.58 1,349,548.04 422,767.34 4,396,090.58 641,369,214.23 Three Gorges Capital Holdings Co., Ltd. 3,032,577,398.00 406,628,491.10 21,499,557.49 19,253,449.01 216,700,282.70 3,263,258,612.90 SDIC Power Holdings Co., Ltd. 8,692,608,269.24 584,847,045.50 362,857,710.07 35,682,063.63 5,331,364.96 290,662,655.92 9,390,663,797.48 Sichuan Chuantou Energy Co., Ltd. 6,025,916,762.26 19,411,911.66 1,360,701,185.83 433,482,556.06 141,367,739.66 4,824,307.55 235,126,593.34 5,029,175,498.02 Guangxi Guiguan Electric Power Co., 4,894,956,247.41 11,557,449.53 1,576,024.03 -31,729,152.00 4,876,360,568.97 2021 Annual Report 286 / 292 Investee Opening balance Increase and decrease for the current year Ending balance Endin g balan ce of impai rment provis ion Additional investment Reduced investment Investment profits and losses recognized by equity method Adjustment to other comprehensi ve income Other equity changes Cash dividends or profits declared to be distributed Prov ision of impa irme nt prov ision Mi sce lla neo us Ltd. Chongqing Fuling Three Gorges Changfu Equity Investment Fund Partnership (Limited Partnership) 49,430,880.67 -6,409.95 49,424,470.72 Chongqing Liangjiang Three Gorges Xinghong Equity Investment Fund Partnership (Limited Partnership) 41,418,778.04 358,036.84 41,776,814.88 Chongqing Qianjiang Three Gorges Changhong Equity Investment Fund Partnership (Limited Partnership) 176,629,239.62 -919,837.03 175,709,402.59 Yunnan Huadian Jinsha River Middle Reaches 5,001,750,088.94 107,023,652.33 1,392,949.00 18,225,200.00 5,091,941,490.27 2021 Annual Report 287 / 292 Investee Opening balance Increase and decrease for the current year Ending balance Endin g balan ce of impai rment provis ion Additional investment Reduced investment Investment profits and losses recognized by equity method Adjustment to other comprehensi ve income Other equity changes Cash dividends or profits declared to be distributed Prov ision of impa irme nt prov ision Mi sce lla neo us Hydropower Development Co., Ltd. Three Gorges Hi-Tech Information Technology Co., Ltd. 88,048,303.34 11,054,962.20 99,103,265.54 CNNP Xiapu Nuclear Power Co., Ltd. 1,544,511.06 115,172.96 185,448.35 1,845,132.37 Total 46,657,446,143.85 5,940,637,134.42 1,790,610,379.14 2,612,071,186.00 260,112,415.04 20,248,588.27 1,409,660,115.85 52,290,244,972.59 2021 Annual Report 288 / 292 4. Operating revenues and operating costs Unit: yuan Currency: RMB Items Amount incurred in current year Amount incurred in previous year Income Cost Income Cost Main businesses 26,742,007,432.41 8,313,935,975.04 28,417,422,202.84 8,509,136,185.45 Other businesses 910,543,648.56 527,129,127.35 487,434,188.72 422,127,448.20 Total 27,652,551,080.97 8,841,065,102.39 28,904,856,391.56 8,931,263,633.65 5. Investment income Unit: yuan Currency: RMB Items Amount incurred in current year Amount incurred in previous year Long-term equity investments income calculated with the cost method 4,653,526,041.39 10,104,596.71 Long-term equity investment incomes calculated at equity method 2,612,071,186.00 3,072,615,088.68 Investment income from disposal of long-term equity investments 550,907,131.40 143,704,035.28 Investment income from holding other non-current financial assets 151,322,110.39 192,843,027.67 Investment income from disposal of other non-current financial assets 1,415,592,543.85 103,483,918.32 Dividend income from investments in other equity instruments during the holding period 211,571,718.00 207,677,760.00 Investment incomes from entrusted loans 1,108,018.86 Miscellaneous 4,780,597.63 7,927,020.59 Total 9,599,771,328.66 3,739,463,466.11 XVII. Approval on Financial Statements This financial statement was approved for release by the Board of Directors of the Company on April 28, 2022. 2021 Annual Report 289 / 292 Supple mentary information of financial statements 1. List of non-recurring profits and losses in current year Unit: yuan Currency: RMB Items Amount in the current year Notes Profit or loss from disposal of non-current assets 564,829,216.07 Unauthorized approval or without official approval document or occasional tax returns and concessions Government subsidies included in the current profits and losses (exclusive of those which are closely related with the enterprise business or government subsidies granted according to national standard fixed rate or quantity) 1,599,400.00 Payment for the use of state funds included in the current profit and loss and collected from non-financial business Income arising from the fair value of net identifiable assets of the investee the enterprise should enjoy when the cost of investment it acquired from the subsidiaries, associates and joint ventures was less than the investment it obtained Non-monetary assets exchange profit and loss Profits and losses on the assets by entrusting others to invest or manage Each provision for the impairment of assets withdrawn due to force majeure factor, say, suffering from a natural disaster Debt restructuring profits and losses Enterprise restructuring charges, such as the staffing expenditures and integrating expenses Profit and loss of the part exceeding the fair value arising from the transaction with the bargain price losing fairness Net profits and losses of subsidiaries from the beginning of the year to the combination date arising from business combination under common control Profits and losses arising from contingencies irrelevant to the Company’s normal business operation In addition to the effective hedging business related to the normal business of the Company, profits and losses from changes in fair value arising from financial assets held for trading, derivative financial assets, financial 1,914,762,891.93 2021 Annual Report 290 / 292 Items Amount in the current year Notes liabilities held for trading, derivative financial liabilities, and investment income from disposal of financial assets held for trading, derivative financial assets, financial liabilities held for trading, derivative financial liabilities and other debts. Reversal of depreciation reserves of receivables and contractual assets under independent impairment assessment Profits and losses acquired from externally entrusted loans Profits and losses arising from changes in the fair value of investment real estates by using the fair value model for subsequent measurement Influence made by the one-off adjustment of the current profit and loss according to requirements of tax revenue and accounting laws and regulations on the current profit and loss Trustee fee income achieved from the entrusted management Other non-operating income and expenses other than the above -210,401,632.70 Other profits or losses that belong to non-recurring profits and losses 13,792,013.07 Sub-total 2,284,581,888.37 Less: Effect on income tax 152,725,238.50 Effect on minority interests (after-tax) 277,765.66 Total 2,131,578,884.21 — 2021 Annual Report 291 / 292 2. Return on equity and earnings per share Profit in the reporting period Weighted average Return on net assets (%) Earnings per share (RMB/share) Basic earnings per share Diluted EPS Net profit attributable to common shareholders of the parent company 14.92 1.1553 1.1553 Net profit attributable to common shareholders of the parent company after deduction of non-recurring profit or loss 13.71 1.0615 1.0615 2021 Annual Report 292 / 292 （No text on this page） China Yangtze Power Co., Ltd. April 28, 2022